WF - Woori Financial: Spotlight Is On Deal Approval And Capital Adequacy (Rating Downgrade)

2025-03-04 12:47:00 ET

Summary

• I downgrade Woori Financial to a Hold due to uncertainties with its planned acquisitions and the impact of declining interest rates on its banking division.
• The proposed purchase of insurance businesses faces regulatory roadblocks, which casts doubt on Woori's plans to pivot away from its core banking operations.
• But Woori's capital sufficiency is improving, which allows for a greater proportion of earnings to be allocated to dividends and share buybacks.

My investment rating for Woori Financial Group Inc. ( WF ) (316140:KS) is now downgraded to a Hold. Previously, I assigned a Buy to WF with a positive opinion regarding the exit of a government-linked shareholder....

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