管理層發言
Good afternoon. I am Han Hong Sung, 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 the group CFO, Lee Sung-Wook; Group CDO, Oak Il-Jin; and the group's Risk Management division, Senior General Manager, Park Jang-Geun on the call. 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 Third Quarter of 2025.
Good afternoon. This is Lee Sung-Wook, the CFO of Woori Financial Group. Let me go over the third quarter performance for 2025. I do have a cold, so please understand if my voice is a bit rough, and please turn to Page 3 of the presentation material that has been disclosed on our website. First, let me discuss net income. Woori Financial Group's year-to-date net income as of the third quarter end was up by 5.1% to KRW 2,796.4 billion, which was a year-on-year increase of 5.1%. Net income in the third quarter alone was KRW 1,244.4 billion, representing a significant increase of KRW 300 billion quarter-on-quarter. Amid uncertain internal and external conditions, including the exchange rate and outcome of tariff negotiations, this net income was the result of balanced growth between our interest and noninterest income and the contribution from the insurance acquisition. In particular, due to continuous efforts to rebalance assets and optimize funding and investments, our NIM improved for the third consecutive quarter.
Stronger marketing capabilities from key subsidiaries, such as the credit card and capital business, led to fee income for the quarter to reach an all-time high. Additionally, the newly acquired insurance business contributed further diversification to the group's profit structure. In the third quarter, we completed the revaluation of the fair value of Tongyang and ABL's assets and liabilities and included this in the group's performance. The bargain purchase price and adjustments from consideration together is around KRW 550 billion, while the decline in the CET ratio was only approximately 5 basis points, which enabled us to reconfirm that from a financial standpoint, it was an optimal M&A with almost no negative impact to our capital ratio. Moreover, in addition to the continuous asset rebalancing and active capital ratio management efforts that we have been making, we are now focusing on strengthening the stability of our financial structure by preemptively provisioning reserves for the vulnerable portions of our nonbank business.
Based on these stable fundamentals, the group is planning to expand productive financing to support future sustainable growth. Next, let me discuss the group's capital ratios. As of September 2025, the group's preliminary CET ratio is 12.92%, showing a 12 basis point increase quarter-on-quarter and an 80 basis point increase from the end of last year, far surpassing the 2025 year-end target of 12.5%. In addition to the insurance acquisition, the weaker won against the U.S. dollar led to a 7 basis point decline in the CET1 ratio, but the capital ratio actually increased, proving the sound capital management capabilities of the group. This is the result of concerted efforts to manage risk-weighted assets across all business areas of the group, such as being selective in asset growth and continuously decreasing exchange rate sensitive assets. Going forward, the group will continue this capital management stance and swiftly execute value plans based on its CET1 ratio.
For Woori Financial Group, we relaunched our securities arm last year and also completed the insurance acquisition this year, completing the creation of a comprehensive financial services group. Thus, focusing on the three main pillars of the bank, brokerage and insurance business, we are planning to maximize group synergies. For example, between the bank and securities business, after acquiring the securities license, the group was able to do a KRW 3.9 trillion deal through CIB joint underwriting. In Wealth Management, in just three months of acquiring the insurance business, Tongyang Life and ABL's percentage of sales from the Bancassurance channel has grown from 9.8% to 22.5%. Moving forward, by balancing growth between bank and nonbank business lines and ranking up synergies across group companies, Woori Financial Group will further strengthen its competitiveness as a comprehensive financial services group and create a business for sustainable growth.
Next, let me dive into more details about earnings by business area, and please turn to Page 4. First, let me go over the net operating revenue and NIM. The group's third quarter year-to-date net operating revenue totaled KRW 8,173.4 billion, up by 2.3% year-on-year. In the third quarter alone, it was KRW 2,773.3 billion, which is similar to the previous quarter. As financial market volatility and other internal and external uncertainties continue, margin improvements and selective growth led to solid interest income. Additionally, the contributions from the insurance business led to better noninterest income, which has further solidified the group's revenue base. If we look at Woori Bank's third quarter NIM, it was 1.48%, which is 3 basis points higher quarter-on-quarter and 8 basis points more than the end of last year. It is the third consecutive quarterly improvement this year. This is the result of active funding cost savings and asset rebalancing efforts that consistently improved our profitability.
In the fourth quarter, even if the base rate is cut further, the bank is planning to expand its core deposit base and systematically manage ALM to continue stable NIM trends and maintain a level of 1.5% for the year. Next, let me go over the loan book. As of the third quarter end, the bank's loans totaled KRW 331 trillion, slightly increasing versus the end of June. On the corporate loan side, the growth strategy is focused on new growth areas and high-quality corporates, which led to the loan book remaining flat quarter-over-quarter at KRW 178 trillion. On the retail loan side, in light of the government's policy to control total loan growth, the bank was more selective in loan origination, which resulted in loans growing 1.5% quarter-over-quarter to KRW 150 trillion. Looking ahead, Woori Financial, in line with the government's policy direction, will manage total household loan growth within the target level while also utilizing its corporate finance competitiveness via the Future Co-Growth Project, increasing the flow of capital to more productive areas within the economy.
In particular, we will join efforts by the financial authorities to make capital regulation more reasonable and continue efforts by the group to rebalance assets to secure more capacity on capital ratios. In addition, risk management across all processes, from underwriting to loan management, will be strengthened to ensure future growth can continue without any impact on capital ratios and asset quality. Next is on the group's noninterest income. As of the third quarter, the group's cumulative noninterest income amounted to KRW 1,441.5 billion, up 4.6% year-on-year. On a quarterly basis, it rose 5.3% from the previous quarter to KRW 555.2 billion. Despite a decline in foreign exchange-related gains due to the rise in exchange rates, the group continued to post solid growth in noninterest income, supported by robust fee income and the inclusion of the insurance subsidiaries performance starting this quarter.
In particular, core fee income, driven by improvements across all business lines of both the banking and nonbanking segments, including the wealth management business, credit card and lease, was up 7.9% versus the previous quarter to KRW 563.7 billion, reaching a record quarterly high. Going forward, Woori Financial Group, through expanding the retail customer base centered on the insurance business and strengthening collaboration between the bank and securities IB segments, will actively pursue new business opportunities to enhance the group's proportion of noninterest income and achieve balanced growth between banking and nonbanking operations. Next, I will elaborate on the expense. Please refer to Page 5. Turning to the group's SG&A expense. As of the third quarter of 2025, the group's cumulative SG&A expense amounted to KRW 3,690.3 billion, while third quarter SG&A expense stood at KRW 1,211.2 billion, a slight increase of 3.2% from the previous quarter.
Accordingly, the group's cost-to-income ratio was 43.1%. Looking ahead, while we will continue to invest in the group's AX initiatives, enhancing digital competitiveness and strengthening brand value, we will also maintain disciplined cost management at the group level through reducing recurring operating expenses, optimizing channels and workforce and leveraging AI to improve operational efficiency. Next, I will discuss the group's credit cost and asset quality. As of the third quarter of 2025, the group's cumulative credit cost amounted to KRW 1,517.6 billion. Third quarter credit costs totaled KRW 574.3 billion, an increase of 13.1% from the previous quarter. This amount, including KRW 98 billion in provisions associated with completion-guarantee projects booked as part of the group's proactive risk management efforts from the previous quarter, incorporates approximately KRW 150 billion in one-off items.
With this, most of the provisioning issues related to completion-guarantee projects appear to have been largely resolved. Excluding these one-off factors, credit costs remain at a similar level to the previous quarter, and the group's credit cost ratio is well-managed within the target range at 0.42%. Amid continued uncertainties, such as exchange rate volatility, trade negotiations, and concerns over a slowdown in the real economy, the group, through active NPL sales and write-offs and proactive risk management in the nonbanking sector, is conducting more thorough risk management than ever before, maintaining the proportion of prime corporate loans at around 84%, and managing the ratio of loan loss reserves and regulatory reserves to total credit at 1.6%, thereby securing a stable loss absorption capacity. This year, Woori Financial Group will conduct a comprehensive review of the group's risk factors.
After securing sufficient risk management capabilities, we will pursue sustainable growth grounded in solid asset quality. I will now move on to capital adequacy and shareholder return policy. Please refer to Page 6. As mentioned earlier, as of the end of September 2025, the group's common equity Tier 1 ratio is expected to be 12.92% on a preliminary basis. Despite factors such as the insurance subsidiary acquisition and the impact of a stronger exchange rate, the group CET1 ratio improved significantly by approximately 80 basis points versus last year-end, demonstrating the group's strong capital management capability. Woori Financial Group will not remain complacent with this achievement and aims not only to stably exceed a CET1 ratio of 12.5% by the end of 2025, but despite ongoing uncertainties both home and abroad, such as exchange rate volatility and potential regulatory fines, we will also pursue swift and proactive capital management with the goal of achieving a 13% CET1 ratio ahead of schedule in 2026.
Meanwhile, the Board of Directors of Woori Financial Group at its meeting held on October 24, approved a quarterly cash dividend of KRW 200 per share with a record date set for November 10, as previously announced. In this quarter, Woori Financial Group successfully completed the acquisition of an insurance subsidiary, a process that has been underway for over a year. Through this acquisition, we have faithfully upheld our commitment to the market to minimize any negative impact on our capital ratio and avoid overpaying for the transaction. Now with a diversified business portfolio and enhanced group synergy, we will begin in earnest our transition towards becoming a comprehensive financial services group. Furthermore, in connection with the Future Co-Growth Project announced last September, we intend to leverage our corporate finance expertise to support the real economy, focusing on new growth and advanced strategic industries.
Through this, we will not only fulfill the essential role of finance but also establish a sustainable foundation for the group's long-term growth. Since the announcement of the corporate value initiative, Woori Financial Group has faithfully implemented most of the plans presented to the market. Discussions and deliberations led by the Board of Directors on how to enhance corporate value are ongoing and will continue in the future. Through these efforts, we will focus the group's capabilities on enhancing long-term shareholder value. This concludes Woori Financial Group's Third Quarter of 2025 earnings presentation. Thank you.
Yes. Thank you for the presentation. Before we begin the Q&A session, I want to mention that this year there will be some additional comments regarding our performance from the CFO, due to factors related to the presentation, including the insurance acquisition.
In the third quarter of this year, we experienced considerable volatility in our performance due to a number of one-off factors. First, the inclusion of our insurance business played a significant role, along with some one-time impacts related to preemptive provisioning. Overall, while there was a profit increase in the insurance segment, it’s important to note the substantial efforts we have made in risk management. Regarding the acquisition of the insurance business, which we began including from July 1, we recognized a bargain acquisition gain of KRW 580 billion following the purchase price allocation. However, we anticipate some adjustments for this gain in the coming year. Additionally, there was a negative adjustment of KRW 25 billion related to consolidation, leading to an overall bargain gain of about KRW 556 billion, alongside a KRW 33 billion negative impact. In terms of provisioning for the completion-guarantee trust, we recognized KRW 98 billion in the third quarter.
This contributes to a total of approximately KRW 200 billion recognized this year. In the banking segment, we encountered some decreases in collateral values, prompting preemptive provisioning of around KRW 54 billion. Furthermore, we faced a litigation outcome regarding KIKO in 2028, which resulted in an additional provision of KRW 32 billion. We also recognized significant provision impacts associated with the completion-guarantee trust that affected our goodwill, leading to impairment losses of about KRW 39 billion. In total, when considering the benefits from bargain gains and the one-off factors, our net income reflects around KRW 360 billion in total one-off impacts. While there may be minor adjustments related to the completion-guarantee trust going forward, we do not foresee any significant additional provisioning needs. I thought it was important to address these topics before we move on to the Q&A session, as they may have generated considerable interest.
分析師問答
So for the first question, we will hear from NH Securities, specifically from Jung Jun-Sup.
There are two questions that I would like to ask you. The first would be that in the third quarter, because you did the insurance acquisition was completed, I would like to know what the next phase is. So in terms of more efficient capital management, rather than being two separate entities, we believe that having it together and then also making sure that it would be a full subsidiary of the group as a whole. So with regards to the information that you can share with us, any more details that you could share would be appreciated. The second is that after the acquisition, if you look at the capital ratios, it still looks like your capital ratios are very sound. So even if it's not in the immediate future, but going forward, are there any M&A opportunities that you would be looking at in terms of interest areas? So maybe not in the immediate future, but even down the road, are there any areas that you would be interested in, in terms of M&A opportunities?
So thank you for your questions, and maybe we can answer your questions. Yes, this is the CFO, Lee Sung-Wook. So first, in terms of the insurance, in terms of the merger and also the follow-up after the acquisition, I do think that this is an area that a lot of the investors are interested in. Also, in terms of the Tongyang Life shareholders, they're also very interested in that as well. So as of now, we completed the acquisition on July 1 for Tongyang and ABL Life. Since then, for the mid- to long-term direction, this is something that we're doing a diagnosis about in terms of the overall business operations. For Tongyang Life, making it a 100% subsidiary or merging the two entities, this is something that we are still reviewing, but we have not made any decisions yet. Furthermore, we do believe that it will require a bit more time for us to come to a conclusion. Should any major decisions be made, we will ensure to disclose and share that with you.
In addition, we will look at the laws and regulations to make sure that everything is done according to the due process. Secondly, about your question regarding M&A. I think that this is something that we continue to talk about. After adding the brokerage and insurance company to our business portfolio, we think that it has been completed. Over the mid to long term, if you look in terms of focusing on strengthening the competitiveness of the companies that we have while also potentially expanding our presence, M&A could be an option. But right now, on the security and insurance sides, because we have been newly added, we believe that our overall business portfolio is complete. Right now, if there are any M&As that require capital, we are more interested in strengthening our market competitiveness in the areas in which we're conducting business already, particularly on the noninterest income side.
We want to strengthen that further. Moreover, we will also continue our value program and manage our risk-weighted asset to successfully complete our Future Co-Growth Projects. I mentioned earlier during the presentation that we're targeting a CET1 ratio of 13%, which was originally set for 2027, but we have accelerated that to 2026. By making our best efforts, we believe we can efficiently manage our capital while also achieving the best outcome for the business. Thank you.
The next question is by Baek Doosan from Korea Investment & Securities.
Yes. I am Baek Doosan from Korea Investment & Securities. I also have two questions. The very first question has to do with the completion-guarantee project. I can see that it has been largely resolved. But in addition to that, I can see that there were still quite hefty preemptive provisioning. So taking that into consideration, I'd like to understand if there's any guidance in terms of the improvement going forward in terms of credit cost? And second, the Future Co-Growth Project that was launched and regarding the funding plans that you have for key industries, this project in itself is massive. Therefore, in terms of capital ratio or noninterest income or corporate loans, I think that it will have an impact on all of these numbers. So we'd like to understand what are the plans? What's the forecast you have going forward?
First, let me talk about credit cost. The third quarter credit cost increased by 3 basis points to 52 basis points. That was already mentioned. In the second quarter, KRW 86 billion for the trust and this quarter, KRW 98 billion were the provisions in managing our assets. Due to the sluggish economy in the construction sector, related to collateral loans at the banking sector, that resulted in a total of KRW 54 billion in provisioning and one-off items amounted to KRW 152 billion. The coverage rate also increased to 130%. If we exclude these one-off items, the credit cost ratio is 42 basis points. However, considering that there has been a delay in the rate cuts, we believe that the normalized credit cost will still be quite high. But as mentioned, the completion-guarantee projects have mostly been resolved; therefore, there wouldn't be any significant provisioning following that. Regarding prime assets, especially in the banks, if we look at the corporate loans, we've been seeing a downturn in terms of new defaults in terms of corporate loans. Ever since 2024, we believe that there will be a government stimulus package impact. With regard to the rate policy going forward, we believe that in the fourth quarter, credit costs will stabilize. That is all for me.
Yes, this is the CFO, Lee Sung-Wook. And regarding the Future Co-Growth Projects, this is a very big project. I do think that with regard to capital and the capital ratios, there may be some concern about such a situation. However, let me elaborate a bit further. We want to transition into providing more productive financing. As of the end of September, we announced our future core growth project, and across the group for the next five years, we will be supplying and supporting around KRW 80 trillion. According to this project, we have taken into consideration the impact on our risk-weighted assets prior to making this announcement. For the KRW 80 trillion over five years, the impact on our risk-weighted assets is expected to be around half. How we can offset this against the capital ratio is something you may be focusing on. This year, the overall asset rebalancing efforts we've undertaken suggest that this is an effort we will continue over the next five years.
Moreover, with easing regulations from financial authorities, our CET1 ratio target of 13% is feasible. The trends we've observed in our capital ratio have been fully considered before we formulated this plan. In addition, on the corporate loan side, during the financial crisis, strong underwriting standards were maintained. As a result, we believe we can manage our capital ratio correctly and continue to grow this area. If you look at the capital ratio trends we have observed this year, there's been an 80 basis point increase compared to the end of last year even after the insurance acquisition. We believe we have a credible trend forming, which has been thoroughly discussed with the Board of Directors. We will align our business plan accordingly. Going forward, we will also manage our loan balance through asset rebalancing and conduct other efforts to promote shareholder value without issue.
The next question is by Kim Do Ha from Hanwha Investment & Securities.
I have a question about the acquisition. When we were preparing for it, you mentioned that the purchase market gains would be used for total shareholder return. My understanding is that if the gains are within a limit of 10%, they would be utilized for shareholder returns. Currently, we have about KRW 580 billion in gains, and I would like to know if this will be included in the shareholder return plan for this year. I understand that the total shareholder return will be maintained, and instead of providing a dividend at year-end, could the funds be directed towards treasury stock plans after November? Or would they be used next year? I would appreciate any information on that. My second question concerns the global security issues we are facing. Are there any current investments or cybersecurity prevention methods you have in place?
Yes. Thank you very much for those questions. Please wait before we answer your questions. Yes. With regard to the bargain purchase gains, it's a total of KRW 580 billion and it's included in the net income. So in the first half, during the investor relations last year, based on our corporate value plan, we mentioned that we are putting in our best efforts to ensure that is included. With regard to the insurance acquisition, the impact it has on the capital ratio was minimized. Regarding TSR, at year-end, we would like to see the CET1 and overall financial volatility. The TSR will be decided based on those factors. There are expectations in the market, and we will try to cater to those expectations as much as possible and do our best to meet those expectations. Thank you.
So recently, there have been major security-related issues at telcos and financial firms. As a result, we conducted a comprehensive review across all subsidiaries, and no issues were identified. Recently, there were weaknesses found in multi-authentication and security patches, terminal-related security issues. However, we followed all internal policies regarding security. Additionally, to prevent any future accidents involving personal information and IT security, we engaged with a security firm from August until year-end to identify any vulnerabilities. Over the last three years, government investment in security has been about 11% concerning total IT investments, with financial funds and insurance firms at 8.8%. In the case of the U.S., it's 10.5% which is higher than our 11%. In terms of information security investments, we will continue to increase that portion in our investments.
Yes, the next question is from HSBC, Won Jaewoong.
Amid a challenging environment, I would like to thank you for your strong performance. I have two questions. The first question pertains to an early retirement. Looking at last year, this was reflected in the first quarter of this year. For this year's early retirement, would it be in the fourth quarter or the first quarter of next year? If you could share any plans on this, I would appreciate it. Also, in terms of CET1 assumptions or overall profitability, it would make estimating easier. My second question is regarding portfolio diversification. You have successfully acquired two insurance companies. I believe you will manage this business effectively moving forward. As far as I understand, the two insurance companies will contribute about 1% of the ROE next year, which would translate to about KRW 300 billion in profit contribution. Up to the third quarter, the net income was around KRW 150 billion. Do you think this could be larger next year? Regarding the bargain gains this year, which were about KRW 550 billion, what contribution do you anticipate will be made to the net income line next year? Your thoughts on this topic would be appreciated.
Yes, thank you for your questions. If you could bear with us for a few minutes, we will answer your questions. Regarding early retirement, in the case of last year, we executed it in the first quarter. The reason for this timing is based on the agreement with the labor union, and there may be differences of opinions arising from this. As a result, it took place in the first quarter. Discussions with the labor union are ongoing, and therefore it could occur in either December or January. However, since it requires an agreement, we have to wait and see how it all plays out. Regarding the insurance acquisition, as you mentioned, in 2025, most companies showed significant profits. This year, certain companies showed strong performance too. However, changes regarding assumptions in the K-ICS ratio and other product structures may arise. As we discussed earlier, after the acquisition of the insurance business, our first step is to conduct a business investigation to understand how we can fundamentally enhance its competitiveness.
In 2026, we anticipate profit contributions from the insurance side. However, regarding the K-ICS ratio on the capital side, our priority is to strengthen that and minimize the burden on the group. Stabilizing the organization is also a top concern. In 2024, we expect around KRW 400 billion, contributing about KRW 300 billion. However, next year, it might be challenging to reach that level on the net income side. Therefore, for now, our focus will remain on the fixed ratio and pursuing growth opportunities. The ROE of 1% is based on projections for 2024, but we believe that we will see contributions in a full-fledged manner from next year. Thank you.
Next question will be by Jeong Tae Joon of Mirae Investment Securities.
Yes, I'm Jeong Tae Joon from Mirae Asset. I also have a question regarding the insurance arm. Regarding profitability, interest cost and securities, these aspects have been reflected all separately across distinct items. But in terms of net income and profitability, I would like to understand the contribution in total for this quarter. Similar to the previous question, the bargain purchase gain was quite significant, more than expected. Therefore, based on consolidation, it may not be as high in terms of net absolute terms. Although I know that management diagnosis is still ongoing, I would appreciate a ballpark figure to better understand.
Yes. Thank you for the question. Please wait a moment, and we will answer your question shortly. Regarding the income from the insurance arm, including investment income and insurance income, if we combine the two companies, it is around KRW 70 billion to KRW 80 billion. In terms of net income, its contribution is around KRW 50 billion from these two firms. In the future, with regard to adjustments from consolidation, this is how it would be booked. Regarding insurance accounting, as I previously mentioned, after the acquisition, there's an accounting process, and the holding company undergoes PPA. Therefore, there will be dual accounting and dual booking. Moving forward, we will run a simulation, and while it will vary by year, we anticipate around KRW 30 billion to KRW 40 billion in contributions annually, representing positive contributions in that range. Although some volatility or variance may occur throughout the years, based on our long-term simulation, we believe this to be accurate.
Yes, the next question will be from Daishin Securities, Park Hye-jin.
Yes. The question I would like to ask you is regarding the bargain gains. I think there may be many inquiries pertaining to this. Regarding the preliminary announcement of the PPA, you mentioned that for the next year, there may be adjustments. If there are adjustments, I would like to understand that in more detail. Secondly, regarding margin, I believe that due to asset rebalancing, margins are being well defended. Concerning joint growth, you indicated that you would maintain this situation. For next year, what is the outlook regarding margin? Lastly, on the securities side, I anticipate that you would have to conduct capital increases. What would the outlook be for those capital increases?
Yes. Thank you very much. You have posed three questions, and we will attempt to answer each one. Regarding the bargain gains, this is primarily an accounting issue. Over the next year, there is room for adjustments to take place. For the first three years, we will undergo some review, and after that, the process will conclude. We don't anticipate significant fluctuations; however, if there are, they would likely be tied to fines or penalties. We have already reflected on several assumptions, so if they materialize, we believe minor changes may arise. Concerning the securities side, after being integrated into the group on August 1, our investments focused primarily on manpower and IT. The SG&A has notably increased by KRW 50 billion. Consequently, despite slight annual increases in net income, it hasn't been substantial. Therefore, we expect productive financing to play a significant role.
From next year onwards, the contributions will be more significant than this year's. We are establishing targets accordingly, with expectations of robust year-on-year growth. For NIM, this year recorded a 3 basis point increase attributed primarily to the asset rebalancing strategy we have implemented. Concerning funding, we observed favorable improvements in both funding structure and costs, which have positively impacted our net interest margin. Thus, regarding future NIM outlook, we expect that while interest rates may decline, their overall impact will remain limited. This year marked 1.45%, and for 2026, we estimate around 1.4% as a maintainable level for NIM currently. Yes, thank you. I believe that there are no more questions. Therefore, let us now respond to the questions posted on the website this quarter. From the 13th to the 24th of October, we received questions via our website.
In addition to our performance, AI, and TSR, there are numerous inquiries across various domains. We will exclude any redundant questions, but there are two that haven’t been addressed yet. One relates to total returns on the dividend-related policy, and the other involves AI services. The CFO will respond regarding the nontaxable dividend, while the CDO will answer the second question.
Yes. First, regarding nontaxable dividends, during the AGR in March, we discussed the KRW 3 trillion that has been written back. So starting from the '25 dividend or retained earnings, we will initiate dividend offerings. According to our corporate value plan, we are committed to buybacks and cancellations while ensuring active shareholder returns. Thus, for 2025, improving CET1 by 80 basis points to elevate TSR was the action we have laid out. We have continued to engage in buybacks and treasury stock cancellation, making efforts to enhance shareholder returns. Furthermore, we will continue enhancing CET1 and executing our corporate value plan, focusing on maximizing shareholder returns. Thank you.
I’m Oak Il-Jin, CDO. Recently, we observed significant security-related issues among telcos and financial firms, prompting a thorough review across all subsidiaries, with no issues identified. We noted weaknesses in multi-authentication and terminal security patches. Nevertheless, we ensured compliance with all internal security policies. Furthermore, to mitigate the risk of personal info and IT security incidents, we have partnered with a security firm from August until year-end to check for loopholes. Over the past three years, investment in security has risen to about 11% out of total IT investments, compared to 8.8% for financial funds and insurance companies. In terms of maintaining security investments, we will continue to increase that share of our expenditures.
Yes, that concludes Woori Financial Group's Third Quarter of 2025 Earnings Presentation. If you have any further questions,please reach out to the IR department, and we will make sure to address your inquiries. Thank you very much.