Woori Bank Q2 net income jumps 35%

[THE INVESTOR] Woori Bank, South Korea’s largest bank in terms of consolidated assets, posted a 35 percent on-year surge in its second-quarter net profits as its exposure to debt-ridden companies abates.

The lender’s second-quarter net income surged to 307 billion won (US$269.81 million), up 35.8 percent on-year. 

“Given that Woori spent some 92 billion won to carry out an early retirement program during the second quarter, it posted net profit of over 400 billion won for two consecutive quarters,” the bank said in a statement.

The jump in Woori bank’s earnings came as the bank put aside less provisions for bad loans extended to financially troubled shipyards during the period.

It set aside 691.1 billion won in provisions against loan losses from SPP Shipbuilding, Daesun Shipbuilding & Engineering, Sungdong Shipbuilding & Marine Engineering and STX Offshore & Shipbuilding during the first half of 2015.

The amount significantly decreased to 430.7 billion won in the first half of this year, resulting in a year-over-year surge in earnings.

By Park Han-na (hnpark@heraldcorp.com)