Daishin Securities Co. on the 16th projected that Woori Financial Group's profit growth rate for next year will be higher than its rivals, reflecting results from insurance and securities. It kept its investment opinion at Buy, raised its target price to 37,000 won from 30,000 won, and presented it as the top pick in the sector. Woori Financial Group's closing price in the previous session was 27,400 won.
Park Hye-jin, an analyst at Daishin Securities Co., said, "We expect the performance contributions from Tongyang, ABL Life Insurance, and Woori Investment & Securities to be fully reflected over four quarters at Woori Financial Group," and "As a result, the profit growth rate will likely be higher than other financial holding companies."
Park projected Woori Financial Group's net profit next year will reach 3.32 trillion won, up 1.4% from this year. By affiliate, she estimated Tongyang and ABL Life Insurance's net profit at 155.7 billion won, and Woori Investment & Securities at 61.1 billion won.
Specifically for TONGYANG Life Insurance, after the acquisition, the impact of asset-liability management (ALM) matching will likely leave its profit contribution somewhat weaker than the company's past peak profit of 310 billion won. However, it analyzed that with the rise in the K-ICS ratio, performance contributions will begin in earnest starting in 2027.
Regarding the securities institutional sector, it said, "Among the co-growth projects Woori Financial Group released, nurturing venture capital centered on securities is included, so the role of securities is expected to become even more important starting next year."
However, Park analyzed, "Woori Investment & Securities' capital is still only 1.2 trillion won, which is insufficient to carry out full-fledged investment banking (IB) operations," adding, "It will take time before it makes a substantial profit contribution."
She went on, "In 2025, costs such as advertising and promotion expenses related to the launch of an integrated securities company increased, resulting in somewhat weak results," and projected, "In 2026, profits will increase due to a decrease in selling, general, and administrative expenses rather than topline growth."
It also positively assessed that the total shareholder return is being raised. Park said, "At the end of 2025, Woori Financial Group's CET1 ratio was 12.76%, a slight decline from the third quarter but above 12.5%," and "Under the value-up policy, the total shareholder return ratio will be raised to 40% in 2026."
Park also projected that the total return amount, including 200 billion won used for Woori Financial Group's share buybacks and cancellations, will increase to 1.33 trillion won. That is up 14.6% from 1.16 trillion won this year.
She added, "For individual investors, with-tax-exempt treatment applied starting with the fourth-quarter dividend in 2025, the actual dividend received could increase by about 18%." Park expects Woori Financial Group's dividend record date to be Feb. 27 next year.