管理層發言
Good afternoon. I am Hong Sung Han, Head of IR at Woori Financial Group. Let me first begin by thanking everyone for taking time to participate in this earnings call for Woori Financial Group. On today's call, we have Group CFO, Lee Sung-Wook; Group CDO, Ouk Il Jin; and Group CRO, Park Jang-Geun. On today's call, the Group CFO, Lee Sung-Wook, will give a presentation on the earnings performance, after which we will have a Q&A session. Please note that the earnings call is being conducted with simultaneous interpretation for our overseas investors. Now let us start our presentation on Woori Financial Group's earnings for the first quarter of 2025.
Good afternoon. This is Lee Sung-Wook, the CFO of Woori Financial Group. Let me go over the first quarter performance for 2025. Please turn to Page 3 of the presentation material that has been disclosed on our website. First, let me talk about net income. In the first quarter of 2025, Woori Financial Group's net income was KRW 615.6 billion. Amid uncertainties in Korea and abroad, leading to volatility in the financial markets, we were still able to prove our solid revenue-generating capabilities on the top line. However, on the cost side, due to conservative provisioning because of concerns about future downturns in the economy and non-regular items such as costs related to the ERP conducted at the beginning of the year and investments for future growth resulted in net income coming in below market expectations. When excluding these one-off costs, the group's fundamentals are still solid, and the group's ROE is 9.5%.
Next, let me discuss the group's net operating revenue. First quarter net operating revenue increased 2.4% Y-o-Y and 6.6% quarter-over-quarter to KRW 2,609.5 billion. To optimize our portfolio, the group has been rebalancing assets and engaging in efforts to improve profitability from last year, which has resulted in solid interest income. Efforts to strengthen noninterest businesses and diversify revenue sources across all bank and nonbank affiliates within the group resulted in stable growth in noninterest income driven by core fee income. Next, let me go over the credit cost. Credit cost was KRW 435.5 billion, representing a Y-o-Y increase of 18.8%. Issues such as credit defaults and uncertainties about the Korean economy created a challenging internal/external business environment, which has led to higher delinquency and NPL ratios. However, we are monitoring the market more closely and have been taking preemptive measures such as actively managing high risk and potential distressed assets to manage credit cost at a stable level.
The credit cost ratio was 0.46%, but when excluding one-off additional provisions of KRW 63 billion, the normal credit cost ratio is 0.39%. Next, let me discuss the capital ratios and also quarterly dividends. As of the March end, the group's preliminary CET1 ratio is 12.42%, which is a 30 basis point increase from the end of last year. Amid an unfavorable business environment such as a weak won, our company-wide efforts from last year to rebalance assets to actively manage our risk-weighted assets have improved our capital ratio. This is an example of the strong commitment that the group has to achieve a 12.5% CET1 ratio within the year, and we are focusing all group capabilities to achieve this goal. In addition, at the Board of Directors today, the Board decided on a Q1 dividend of KRW 200 per share, which represents an 11% increase on a Y-o-Y basis. In addition, the dividend record date will be May 10 as notified during the group's quarterly dividend procedures adopted in the General Shareholders' Meeting.
Next, let me delve into more detail about our earnings by area. Please turn to Page 4. First, let me go over our net operating revenue and NIM. The group's Q1 net operating revenue was KRW 2,609.5 billion, up by 6.6% quarter-over-quarter. Interest income was similar to that of the previous quarter at KRW 252 billion. The bank's quarter 1 NIM was 1.44%, and the group's NIM, including the credit card business, was 1.70%, which represents an increase of 4 basis points from the previous quarter. The Bank of Korea cut rates last February, and market rate spread leading to a decrease in funding cost as cost on time deposits stabilized and core deposits grew. This improved our margins. In addition, we also believe that the U.S. reciprocal tariffs are expected to create trade disputes and a downturn in the economy, and we believe the current cut rate cycle will continue, and we are trying to have more asset management to put out an effort to grow our core deposits to actively defend against any downward pressure on NIM.
Next, let me discuss the bank's loan portfolio. As of March end, Woori Bank's total loans amounted to KRW 330 trillion, showing a slight 1% decrease compared to the end of the year. For corporate loans, large corporates continue to have strong demand for credit, and the portfolio improved, focused on high-quality SMEs resulting in a book of 183%. On the retail loans, the government's household debt management policy continued and retail loans totaled KRW 144 trillion, similar to the end of last year. Going forward, in line with the economic development, we will diligently fulfill our role and focus on new growth industries and secured loans backed by guaranteed certificates. In addition, for retail loans, we will focus on real demand within our business plan scope and achieve growth within nominal GDP growth. Recognizing uncertainties in Korea and abroad, we will put top priority on asset soundness and capital adequacy to achieve profitable growth.
Next is net interest income. Net interest income in the first quarter was KRW 357.5 billion, an increase of 2% Y-o-Y. In particular, core fee income posted KRW 511.4 billion, driven by the growth of the bank's wealth management efforts and the efforts to diversify. Core fee income surpassed the KRW 500 billion mark, again showing stable trends. As we expect volatility in the markets to continue, we will continue efforts to increase our noninterest income by diversifying our nonbank business and maximizing synergies between banks and nonbank operations. Next, let us move on to expenses. Please look at Page 5. This is the group's SG&A. In the first quarter, the SG&A was KRW 1,306.2 billion, which was an increase of 26.6% Y-o-Y and the cost-income ratio was 43.6%. The increase was driven by one-off factors, including Woori Bank's early retirement program cost of KRW 169 billion, which took place at the beginning of the year, costs related to increasing the sales capabilities of the securities arm launched last year, and investments in digital and IT such as UN Banking and Woori Securities Mobile Trading System.
Going forward, the group will continue to actively support investments for future growth, such as strengthening digital and IT competitiveness and enhancing the brand value of the group. But at the same time, it will cut back on general expenses that are not related to sales and achieve cost efficiencies across the organization, such as optimizing resources and channels. Next is credit cost and asset quality. In the first quarter of 2025, the group's credit cost amounted to KRW 435.5 billion, down 5.8% Q-o-Q and up 18.8% year-on-year. This quarter, the group completed provisioning for the full exposure to issues currently in the spotlight, including those to debtors who have recently filed for corporate rehabilitation by allocating approximately KRW 39 billion in additional provisions, and we also booked preemptive provisions of KRW 24 billion during the review of completion guarantee trust projects, resulting in approximately KRW 63 billion in one-off credit costs.
Excluding these one-off factors, the group's credit cost ratio is being stably managed at around 0.39%. Although market interest rates are on a downward trend, concerns over economic recession are intensifying due to various internal and external issues, so asset quality concerns are expected to persist for some time. Woori Financial Group is maintaining a strong ratio of prime corporate loan assets at 86% through enhanced risk management capabilities. Furthermore, the ratio of loan loss and regulatory reserves to total loans is also being managed at an elevated 1.6% level, ensuring sufficient loss absorption capacity. As for real estate PF exposure, it has decreased by approximately KRW 200 billion from the previous quarter to KRW 3.3 trillion. Excluding guarantees, it stands at approximately KRW 2 trillion, which is 0.5% of total loans, and thanks to our preemptive management efforts, the additional provision burden remains limited.
Woori Financial Group will remain fully prepared for potential impacts from prolonged high exchange rates and U.S. reciprocal tariff policies. We will proactively inspect risk factors across the group, focusing on managing vulnerable areas and closely monitor key market variables like interest rates and exchange rates responding actively to changes. Moving on, I will elaborate on the capital adequacy and shareholder return policies. Please refer to Page 6 of the materials. As of the end of March 2025, the group's preliminary CET1 ratio stands at 12.42%, improved by approximately 30 basis points from 12.13% at the end of the previous year. Despite the challenging financial environment, the group significantly improved its capital ratio through comprehensive measures, including solid profit growth, optimal portfolio composition, taking into account risk-weighted assets and thorough management of exchange rate-sensitive assets such as foreign currency holdings and currency derivatives.
With this, Woori Financial Group is approaching its goal of achieving a 12.5% CET1 ratio ahead of schedule in 2025, making progress not only in enhancing the group's loss absorption capacity but also in establishing a stable foundation for shareholder returns. Meanwhile, today, Woori Financial Group's Board of Directors resolved a quarterly dividend of KRW 200 per share in line with the company's quarterly dividend policy of paying out 50% of the previous year's annual dividend evenly across each quarter and the record date under our enhanced quarterly dividend procedure is set for May 10. The group also announced at the beginning of the year a share buyback and cancellation program totaling KRW 150 billion, an increase of 10% compared to the previous year, and is currently in the process of executing the buyback. Going forward, the group will continue to faithfully implement its shareholder return policy based on its participation in the CET1 ratio and do its utmost to fulfill its commitments to the market.
Let's move on to Page 7. To prepare for the large-scale and prolonged impact of macroeconomic uncertainty and market volatility arising from recent developments such as the imposition of reciprocal tariffs by the U.S., Woori Financial Group has formed a group-wide Task Force Team (TFT). Through this task force, we aim to respond swiftly to market conditions and ensure thorough risk management. Please refer to the materials on Page 7. Woori Financial will conduct in-depth analysis of tariff impacts by industry and sector as well as overall market conditions. Based on this, we'll continue to carry out asset rebalancing in response to changes in the financial environment. We will restructure our portfolio to focus on high-quality assets and emerging growth industries while reducing low margin or potentially distressed loans to improve both profitability and asset soundness. In addition, the group is operating a group level of reciprocal tariffs impact support TFT, providing customized support to companies affected by tariffs and preparing support measures for small businesses vulnerable to high exchange rates and economic downturns.
By stabilizing the financial market and protecting customers, we aim to minimize the shocks from reciprocal tariffs. With the possibility of prolonged high exchange rates and market volatility in mind, we will strengthen our foreign currency liquidity management and enhance credit risk controls for affected industries and high-risk assets to actively respond to economic downturns. We will especially maintain constant monitoring of risk by country where the group operates to prevent overseas shocks from spilling over into domestic markets. Regarding capital ratios, we will focus on improving risk-weighted asset vulnerabilities through asset rebalancing and strengthen our management of exchange rate sensitive assets by reducing exposure to currency derivatives and overseas financial risk management systems. Alongside asset rebalancing and risk management to maintain a solid financial structure, Woori Financial Group also places great importance on business diversification to provide profit growth and improve stability.
Woori Investment Securities obtained its official brokerage license in March and launched its Mobile Trading System (MTS) platform, completing preparations for full-scale operations. Furthermore, the relocation of all Investment Banking (IB) units within the group to Yeouido will further boost synergy. In terms of entering the insurance business, which has drawn significant investor attention, we submitted an application for subsidiary acquisition approval this past January, and it is currently under review by the Financial Services Commission. Upon completion of the acquisition, although the final financial impact may vary, we expect a minimal effect on the group's capital ratio and anticipate annual profit increases of KRW 300 billion to KRW 400 billion and approximately a 1 percentage point improvement in ROE. Through these comprehensive response plans, Woori Financial Group will faithfully fulfill its core financial role, thereby contributing to market stabilization and ensuring strong customer protection.
We will also continue to enhance our CET1 ratio to further strengthen the group's loss absorption capacity and establish a solid foundation for stable shareholder returns. This quarter, despite internal and external uncertainties, Woori Financial Group has demonstrated solid earnings capacity and stable risk management capabilities. We will actively respond to the challenging financial environment, including interest rates, exchange rates, and the real economy by further focusing on managing our capital ratio and enhancing long-term corporate value and, in addition, we will take the lead in supporting struggling businesses, fulfilling our social responsibility as a financial group. And this concludes Woori Financial Group's 2025 Q1 earnings presentation.
The first question will be from SK Securities, Seol Yong Jin.
分析師問答
I would like to ask you some questions about your capital policy. So if you look at the situation right now, of course, you do have a license for the securities business, and you also said that you are going to continue to expand this business. So in terms of your RWA allocation and capital allocation, I actually do have some concerns. So on the bank side, I do think that there are continuous asset rebalancing efforts. And as a result of that, your capital ratio is declining. So between the banks and nonbanks, you do need to have balanced growth. But in terms of your capital allocation policy, what would be the details of that going forward in terms of strategy?
Yes. Thank you for your question. And if you let us prepare for a few seconds. Yes. Thank you for your question. Right now, as you have just mentioned, the high exchange rate is continuously something that is ongoing. So, of course, across the bank and nonbanks, we continue to engage in asset rebalancing. So on the bank side, that means that for lower margin assets and also for possible distressed assets or if there is a downturn in the economy, any assets that could possibly become insolvent is something that we want to preemptively act upon to try to decrease. And going forward, we want to focus on high-growth potential companies so that we can improve our overall capital ratio. So particularly on the nonbank side, on the capital company and also on the nonbank-related credit card business, right now on the RWA, we are trying to increase the areas in which there's more contribution and decrease on the ones that are less.
As a result of that, we are focusing on achieving our capital target. And for the securities arm, we actually started on August 1. And right now, we have received licenses for most business areas. So as a result of that, for the risk assets, we are investing. And, of course, for the risk weight allocation that we have, we want to focus on the securities side. So whether it be on the bank side or the nonbank or other securities arms, we want to decrease that, and we want to increase the securities presence, our market share, and continue our marketing activities. So with regards to our capital, we are trying to focus it more on the securities side to grow that business. And between the bank and securities arm and other affiliates that we have, we want to reach the 12.5% CET1 ratio target that we have. We'll receive the next question. The next question is from Baek Doosan from Korea Investment & Securities.
Yes, I'm Baek Doosan from KIS. I do have a question regarding the digital business. So starting from last year, you had UN Banking and Securities MTS, and in various areas, you have been executing various investments. And with regard to that, I would like to understand the performance of these investments, whether it be MAU or transaction volume. So some information on that. And what is your goal and target going forward? If you can also share with us your plans?
Thank you for your question. Please bear with us for a moment. Last year, we launched the new loan banking service and introduced our super app. By the end of last year, our monthly active users reached 8.5 million, and we aim to increase that to 9 million this year. A key goal is to provide universal banking services through the super app to grow our subscriber base. We plan to integrate cards and, in the first half of the year, our securities division will also join the super app. Through this all-encompassing platform, we intend to attract new customers. It's been a few months since our launch, so we don't have definitive results yet, but we can confirm that new customers are signing up through this platform. In addition to client acquisition, we also plan to introduce financial products via this platform within the year to enhance profitability.
The next question will come from Mirae Asset Securities. It will be Jeong Tae Joon.
Hello from Mira Asset Securities. Can you hear me well? Yes, this is Jeong Tae Joon. I would like to ask some questions about your capital ratio. Before you talked about if you acquire the life insurers, then I do think that you try to minimize the impact on your capital ratio and increase your profits. If you look at the recent situation, it does seem to be that the capital ratios for the life insurance are decreasing. So I do think that the impact that you foresee may be larger than expected. So in terms of your impact on the capital ratio side, how much do you actually see from the acquisition of the life insurance arm?
So thank you for your question. And for the answer, if we can prepare for a second. Yes. On the capital ratio side and the impact that we see, if we look at as of now in terms of the acquisition timing and in terms of the asset and liability valuation has to be finalized for us to go through. So as of now, it would be difficult to give you an accurate decision, but we don't believe that there will be a large impact. Right now, if you look at the investment limits that we have and look at other insurers' disclosed financials, we don't believe that there will be a large impact. So we're basing this upon the financials that we have available already. And going forward, in terms of the discount rate decreasing or any other issues, of course, that could have some implications, but that has not been finalized yet. So as a result, to minimize the impact as much as possible in the past, we looked at the rate cuts that took place and the stronger regulations.
So with regards to the capital adequacy and solvency management at the insurance company level, this is something that we are well aware of. And it's difficult because we're still in the approval process. But once it is included and acquired, then on both sides, of course, the capital ratios will be managed very prudently. So we are going to grow them on a very strong base. And on the K-ICS ratio and other financial soundness metrics, that would be our first priority to ensure that we grow on a stable footing. So whether at the group level or company level, we try to minimize the capital burden that we will have, and that will be the overall direction in which we will pursue this business. We'll move on to the next question. The next question will be by Kim Do Ha from Hanwha Investment & Securities.
I have two questions. The first concerns performance, and the second relates to RWA. Regarding the holding company, if we examine the credit cost ratio, we understand that the bank's proportion is high, but in absolute terms, it is comparatively higher than other peers and banks. In late 2010 and during the COVID years, this was not the case. However, over the last two years, it appears that your credit cost ratio is higher compared to your peers. What is the awareness within the group regarding the CCR? Based on that awareness, what improvement plans or measures do you have in mind? This information would help us understand future performance. As for RWA, there can be fluctuations of around KRW 10 or an increase in RWA. Could you provide an update on any changes, particularly considering foreign exchange fluctuations?
Yes. Thank you very much for the question. Please wait for a moment. Yes, with regard to RWA and sensitivity to exchange rates. So with regard to exchange rate sensitivity, there are two aspects. So in the case of risk assets, it, of course, will increase. And also in terms of the capital that's invested overseas, we do have some changes in the foreign translation. So it actually works the other way. And depending on the timing, it will differ. And as of the end of last year, we've seen a 1.6 basis point increase when it comes to risk assets. And this 1.6 basis points may change. It doesn't remain constant. So the current impact is about 1.6 basis points by ten, and that is all.
I am the Chief Risk Officer, Park Jang-Geun. Excluding our one-off costs, the credit cost stands at 39 basis points, which is stable, although it appears higher than usual compared to the past. This is attributed to various one-off factors, such as debtors undergoing corporate rehabilitation, including Home Plus, and additional provisioning. We have also not been proactive in the write-off area, which has contributed to this situation. Regarding the CCR for 2025, prior to reflecting interest rate impacts, we anticipate some ongoing insolvencies will affect our results. In terms of completion guarantee projects and slow growth conditions, we expect the CCR to remain at levels similar to what we are currently observing. Additionally, we are focusing on asset rebalancing towards low-risk prime assets, and once completed, we believe there will be a strong buffer in our provisioning for real estate project financing. With our proactive credit cost management strategies, we expect improvements in the second half of the year, projecting that the credit cost ratio for 2025 will be in the early to mid-40 basis points range.
So the next question will come from Daishin Securities. It will be Park Hye-jin.
I do have two questions about your securities business. One is for Woori's Investment Securities. You did receive a license for securities trading. And I do think that you might start your ID business. So I do think that your risk-weighted assets is something that you will have to consider. So in the case of your Woori Investment Securities, how are you going to engage in your ID business? And if you want to be aggressive in that area, we do think that there will have to be some more strategies that you engage in. So what would that be?
Yes. Thank you for your question. And maybe let me have some time to answer. Yes, maybe I can answer your question. This is the CFO, Lee Sung-Wook. So for Woori Investment Securities right now and to talk about the strategy that we have for that business. If you look at the current situation, this company is actually very balanced in terms of its IB presence and digital. So we do want to strengthen its fundamental competitiveness. So IB and sales trading is something that we want to create an organization for and continue to expand going forward. We are also going to utilize the bank retail network that we have to create more synergies with the group. And then by establishing MTS services, we are going to become a comprehensive securities firm. In addition to that, on the retail side, of course, we do want to have customized channels and also more appropriate products that we can cater to.
And in addition to that, on the trading side, we do want to create a stable foundation for trading. On the IB business, we do think that we will try to focus our IB capabilities to gain a leading position. We will also look at asset soundness and the loan portfolio so that we can increase our portfolio. And on the DCM side and alternative asset side, that will be added to increase the margins. So we are going to try to maximize the synergies at the group level as much as possible. This is something that we are taking initiatives on. For the IB business, you talked about a capital increase. So at the end of last year, we actually did a KRW 500 billion capital increase already. For the investment service business, right now, they do have a comprehensive securities license. As a result of that, they are able to issue commercial papers. So through that business in itself, as a mid- to large-sized securities firm, we do think that it has its own funding capabilities.
Over the mid- to long term, of course, there will be capital increases that will be required so that we can grow to the size of a mid- to large-sized company. But as of now, we don't think that there will be any short-term requirements for any capital increases as of the current time. Again, we did do one previously of around KRW 500 billion. Going forward, if there are more needs for capital increases, then we will try to do so.
Next question will be by Woo Do-hyung from Yuanta Securities.
I have two questions. So with regard to the annual process for NIM and the trending, your prospects. And second has to do with the Budget Telecom service. What are the expected results and plans you have for the Budget Telecom service?
Thank you for the question. Please hold on for a moment. Regarding NIM, in the first quarter it was 1.4%, which represents an increase of 4 basis points quarter-over-quarter. The rise in core assets combined with a decrease in funding costs has influenced NIM. Overall, we believe there is considerable potential in managing risk assets and through active asset rebalancing, which supports our NIM goals. With the anticipated 25 basis point rate cut, we expect a downward trend in rates. Long-term rates have already shown a decline. Based on our simulations, we do not anticipate a significant drop below what we expect for NIM. In the second half of the year, we will continue with active asset rebalancing and do not foresee significant challenges in funding. We plan to increase our core assets, expecting NIM to remain above 1.4% on an annual basis. Even if rates decline, we will make every effort to maintain that level.
Yes, I'm in charge of digital. With regard to the budget telecom service, we opened this last week. This service, we are pursuing is the following. Through our noncontact channels or our digital channels, it's about bringing new customers on board and making them financial customers. Customer acquisition, especially for these telecom service customers, 60% are those in their 20s and 30s. We believe that this will help us strengthen our customer pipeline there. Amongst our existing customers, it's about increasing the activation of these existing customers. To achieve these goals, as a strategy within UN banking, the Budget Telecom service will be added on; we will have existing customers actually use this in a seamless fashion. It’s also about increasing the activation of existing customers. In terms of telecom and finance, various bundled services will provide differentiation. Starting from May, we will have savings deposits that link with telecom services, and we think that this will help us differentiate ourselves in the market. As a bank, we do have the brand power, high level of security, and trust coming from our customers. Under reasonable prices, we do believe that there is a lot that we can provide to our customers.
Yes. The next question will come from HSBC, Won Jaewoong.
There are two questions that I would like to ask you. First is that you did your ERP recently. And going forward in terms of the ERP costs, is it something that you will continue to recognize in the first quarter? Would that be appropriate to assume? So that is something that I wanted to ask. And then second is that for the CET1 ratio management, I do think that you are very successful this year, and the yearly target is 12.5%. But in some manners, you did say that you think that you would be able to exceed that. Right now, you're looking at an increase of around 4% to 5% in growth. But this year, this quarter, it was negative growth. So by the end of the year, even if we do have 4% to 5%, do you think that you will still be able to overshoot the 12.5% target? Or if the loan growth is higher, then do you think that 12.5% would be the level at which you would be? How do you think things will develop going forward?
Thank you for your question. And maybe if you give us some time. Well, first, on the ERP side, I think that it is something that we did recognize in the first quarter. For the early retirement program, of course, we need to take into consideration financial situations and also the discussions with the unions that we have to reach a conclusion. At the end of the day, the decision was made in January, which is why we reflected it in Q1. Whether it will take place at the end of the year or the beginning of the next is not something that we would be able to determine as of now and finalize, but it will depend upon internal and external environments, as well as the negotiations with the labor union. That is how we will finalize the timing. Secondly, regarding asset growth going forward, I think that right now our priority would be to reach the CET1 target of 12.5%. So to exceed that is a top priority that we have.
Therefore, around 4% to 5% asset growth is dependent upon exchange rates being very stable and also managing it tightly more towards the first half of the year to allow for growth in the second half of the year. However, if the current turbulence we see in the FX rate continues, we think that for the full year, we may need to manage it at a tighter level. Thus, 4% to 5% asset growth is something we want to maintain as our baseline to reach the 12.5% for the CET1. This is, of course, CET1 would take priority. If the exchange rate is more stable, then for growth, we will emphasize that in the second half of the year. Thank you. We have no further questions in the queue. We also have questions that came in via our website. So let me respond to that. Starting from this quarter, we have started receiving questions prior on our website. Through this earnings call, we mentioned that we will respond to the frequently asked questions.
This was already announced. There are basically questions regarding two topics. One has to do with the acquisition of the insurance business and the progress of that. The second is the CET1 ratio, the target of Woori Financial Group, and how this is to be achieved. With regard to these two topics, let me now respond. So the CFO, yes, you have the floor.
So with the Tongyang and ABL acquisition, I did mention this in the presentation. We have submitted our approval application in January, and the Financial Services Commission is currently reviewing this proposal. It is very difficult, therefore, to provide you with any information on the progress. After the announcement by the Financial Services Commission, we will actively communicate the progress with the market in a timely fashion. With regard to the CET1 ratio and how to achieve it, I know that everybody is interested in this topic, and some of the information was already offered. But in 2025, our target for CET1 is 12.5%. The group is engaging in company-wide efforts to achieve this through active asset rebalancing and by supporting businesses to increase prime assets. There are, of course, exchange rate-sensitive assets such as currency assets, and we're actively managing this as well.
We have included in our KPI, RWA management indicators to manage this quarterly; an RWA system is in place so that all employees can have access to maintain a balance between risk and return. This balanced type of culture is what we are trying to achieve and disseminate. Based on these efforts, as was mentioned, as of the end of April, our preliminary CET1 ratio is at 12.42%, which is an increase of 30 basis points, and we will continue to manage our asset soundness and aim to achieve 12.5% ahead of schedule while being as faithful as we can in terms of shareholder return.
Yes. Because there are no more questions, I would like to wrap up the Q&A session here. With that, we would like to conclude the Q&A session and the conference call for Woori Financial Group's first quarter 2025. Thank you for your attendance, and thank you very much.