WF - Woori Bank (WF): Earnings Beat On Higher Income And Provision Writebacks
Investment highlights
Woori Bank (WF) reported KRW716.1bn in 2Q18 net income (+55.4% YoY, +21.4% QoQ), trouncing the consensus of KRW569.2bn and our estimate of KRW589.9bn. The outstanding results were driven by improving asset soundness and provision writebacks on Kumho Tire (073240.KS, not rated) and STX Engine (077970.KS, not rated). Core income (interest income plus commission income) also remained on a steep growth path, rising 9.1% YoY. The group NIM expanded by 3bps QoQ and 7bps YoY. Loan growth was 0.8% QoQ (household +0.6%, SME +1%, and conglomerates +2.9%). Net interest income rose 8.5%