The Indonesia subsidiary, a business hub overseas for Woori Bank, posted a loss in the first half that was more than double a year earlier. Woori Bank carried out branch restructuring in the first half, closing nine Branch Offices on site. Woori Bank was said to be considering normalization measures such as mergers and acquisitions (M&A) of the local subsidiary.
According to the financial sector on the 21st, Woori Bank's Indonesia subsidiary, Woori Saudara Bank, recorded an accumulated net loss of 142.5 billion won in the first half of this year. That is more than double the same period a year earlier (60.384 billion won). Woori Saudara Bank posted a net loss of 96.9 billion won in the first quarter and another loss of about 45.6 billion won in the second quarter.
In the second quarter of this year, the loss narrowed from the previous quarter but the bank is still posting a large deficit. Woori Saudara Bank set aside about 138 billion won in provision in the first quarter to prepare for a potential deterioration in the soundness of the local pension loan guarantee agency. Woori Saudara Bank was also said to have cleared a large volume of nonperforming loans in the first quarter. Despite the provision buildup and the cleanup of bad loans, a large loss continued in the second quarter.
Woori Saudara Bank's asset also fell to 4.4214 trillion won at the end of June this year from 5.2611 trillion won at the end of last year. Woori Saudara Bank also closed a total of nine Branch Offices in the first half. Last year, it closed two Branch Offices.
Woori Bank is reviewing normalization measures for Woori Saudara Bank. Options reportedly include a merger with or a sale to a local small or mid-sized bank.