Woori Bank’s strategy in 2006 was focused on high-quality asset growth and winning high-profile customers to broaden its market share. To prepare for future challenges posed by the Korea-US FTA agreement and Capital Markets Integration Act, Woori created a new product research development department, which has developed innovative products such as CD-linked term deposits.
The group also established Woori Global Markets Asia in Hong Kong to solidify its position in the global investment banking market. The unit will work in close conjunction with the group’s main investment banking division.
Woori opened 95 branches in South Korea to provide customers with easier access to its network. It set up a trading centre in London with 24-hour dealing capability. The aim of the centre is to help the bank to manage overnight risk and to generate income through the offering of competitive FX products such as non-deliverable forwards.
The initiatives undertaken last year produced impressive bottom-line results, which are expected to continue on the upswing this year and in the future. Tier 1 capital was boosted by 18.81% in 2006, with a 33.22% increase in assets and 15.15% in net profits. The bank’s RoE was maintained roughly at the previous year’s level, at a respectable 15.8%, and the cost-income ratio was cut by 1.6 percentage points to 45.2%. Thanks to a tight focus on risk management, Woori was able to significantly reduce its NPL ratio to 0.96% of the loan book from 1.23% in the previous year.
Chief executive Hae Choon Park says: “Woori Bank, a top-tier bank in Korea with a tradition that spans 108 years, provides comprehensive financial services and is a trustworthy and valuable financial partner to more than 17 million customers through more than 860 domestic branches and a global network in 12 countries.
“Woori Bank will not remain satisfied with its current position in Korea and will move forward to secure its position as a leading bank in Asia. To achieve that goal, it will strengthen profitability through non-interest income by way of fund and bancassurance sales as well as an increased market share in FX products and investment banking. It will also broaden its high-quality customer base by providing improved services and will strengthen core growth fundamentals.”
