Heungkuk Metaltech Securities said on the 16th that as Woori Financial Group's common equity tier 1 (CET1) ratio exceeds 13%, additional share buybacks and cancellations are likely to follow. It kept a "buy (BUY)" rating and raised its target price to 40,000 won. The previous trading day's closing price of Woori Financial Group was 32,500 won.
Yoo Jun-seok, a Heungkuk Metaltech Securities analyst, said, "Through the previously presented plan to enhance corporate value, the company made clear its intention to increase both the scale and speed of shareholder returns," and noted, "In particular, this plan will not remain a mere declaration, as it is backed by a trajectory of capital ratio improvement."
Earlier, Woori Financial Group, through its plan to enhance corporate value, presented measures including: ▲ raising the annual dividend per share (DPS) by at least 10% on a sustained basis ▲ expanding the scale of share buybacks and cancellations to around 10% in the short term ▲ reviewing additional share buybacks and cancellations in the second half if the CET1 ratio exceeds 13%.
Yoo said, "By the end of the fourth quarter of 2025, the CET1 ratio will be 12.9%, surpassing 13% within the first half of this year," and forecast, "Accordingly, additional share buybacks and cancellations of about 140 billion won will take place in the second half." Reflecting this, the total shareholder return in 2026 is expected to be about 1.42 trillion won, with a total shareholder return ratio of 43.4%.
Yoo also gave a positive assessment of improvements in Woori Financial Group's earnings structure. Yoo said, "The company presented a plan to raise the share of nonbank profit, currently around 10%, to around 20% by 2026, secure growth momentum through productive finance centered on advanced strategic industries, and achieve a return on equity (ROE) of over 10%," and added, "With the possibility of a capital increase at the securities subsidiary also open, the company's capacity to respond preemptively to changes in the capital market environment will be strengthened."