Kwak Seong-Min: Good afternoon. I am Kwak Seong-Min, Woori Financial Group's CFO. I will go over the group's earnings results for Q3 2026. Please refer to page two of the earnings presentation documents available on our website. First, our net income. For Q3 2026, Woori Financial Group recorded net income of KRW 1 trillion 49.2 billion, up 4.4% QOQ, exceeding KRW 1 trillion for the second consecutive quarter.
Kwak Seong-Min: The group's quarterly earnings capacity has stabilized around KRW 1 trillion. As a result, YTD net income through Q3 reached KRW 2 trillion 658.1 billion. This is an improvement from the same period last year, when we recognized about KRW 550 billion in bargain purchase gains from the acquisitions of Tongyang Life and ABL Life. Excluding this one-off factor, it is an increase of 19% YOY. Supported by this enhanced earnings capacity, the group's common equity ROE stood at 9.9%, continuing its clear improvement. This reflects our progress over the past several years through disciplined management of RWAs and strategic capital initiatives, including asset reevaluation. We have strengthened our capital position and deployed this into productive finance and high growth non-banking subsidiaries, laying the foundation for the group's medium to long-term earnings growth.
Kwak Seong-Min: As a result, both interest income and non-interest income reached record highs, with non-interest income accounting for nearly 20% of total income. At the same time, group-wide cost efficiency initiatives helped stabilize cost to income ratio and credit cost ratio at progressively lower levels. With revenue growth and cost stabilization, YTD operating profit increased by nearly KRW 570 billion YOY, further enhancing our sustainable earnings generation capacity. Next, capital adequacy and shareholder returns. As of September end 2026, our preliminary CET1 ratio stood at 13.8%, maintaining the industry leading position. This is a meaningful improvement, nearly 90 bps this year alone, and 170 bps over the past two years. This year, as part of productive finance, we significantly expanded corporate lending guarantees and capital markets investments.
Kwak Seong-Min: However, our capital capacity against external uncertainties has strengthened further, supported by solid fundamentals, disciplined asset rebalancing, and the impact of a decline in exchange rates. Based on this, our BOD today approved a Q3 dividend of KRW 221 per share, fully non-taxable. The record date is 10 November, and the payment is scheduled for 30 November. With this, our quarterly dividends for the year have been completed, leaving only the year-end dividend. For us, the year-end dividend accounts for more than 50% of the total annual dividend. The current dividend yield stands at about 2.2%, but given our dividend structure and the non-taxable benefits, shareholders' effective annual dividend yield for 2026 should be significantly higher. With the additional KRW 150 billion share buyback approved in July for the second half, we are confident that our total shareholder return for 2026 will be significantly higher than last year.
Kwak Seong-Min: In addition, the board resolved to cancel 57,369 shares we acquired and held for specific purposes, including comprehensive share exchanges, in accordance with the amended Commercial Act. Now, let me go over the group's financial performance by business segment on page three. First, net operating revenue and NIM. YTD net operating revenue through Q3 came in at a record KRW 8 trillion, 680.3 billion, up 6.2% YoY, on the back of balanced growth in both interest and non-interest income. YTD interest income reached KRW 7 trillion, 35.9 billion, up 4.5% YoY, maintaining solid growth. The main drivers were 25% increase YTD in large corporate lending, as well as the improvements in group's NIM compared with the same period last year. However, the bank's NIM for Q3 stood at 1.43%, down 7 bps QOQ.
Kwak Seong-Min: Market rates increased more sharply than lending rates, and our proactive efforts to secure funding ahead of additional rate hikes placed pressure on funding costs. But we expect NIM to recover as asset and liability reprice over time, and the impact of higher funding costs gradually subsides. We will work to accelerate margin improvement by expanding high-quality new customer base, attracting low-cost deposits, and maintaining a profitability-focused loan book. Next, let me discuss the bank's loan portfolio. As of September end 2026, the bank's total KRW loan stood at KRW 313 trillion, up 1.52% from the end of June. Corporate loans increased by 1.42% QOQ to KRW 156 trillion due to the acceleration of productive finance. In particular, lending under the productive finance reached roughly KRW 27 trillion, 1.5 times our full-year target, which we achieved ahead of schedule.
Kwak Seong-Min: Retail loans stood at KRW 154 trillion, up 1.4% QOQ, following the government's easing of household lending limits in August. Building on our strong competitive position in corporate banking, we will continue to pursue loan growth focused on high-quality assets, and we will further enhance risk management by integrating AI across the entire lending process, from credit assessment to post-monitoring. By doing so, we will create a foundation for sustainable growth without compromising asset quality. Let me now turn to the group's non-interest income. Non-interest income for the first 9 months reached a record KRW 1.6444 trillion. Core fee income rose 18.8% YoY to KRW 1.898 trillion, driving earnings growth. Our non-bank subsidiaries increased their earnings contributions by strengthening group synergies and enhancing the competitiveness of their core businesses. In particular, our securities subsidiary has expanded its IB business since its capital increase in May.
Kwak Seong-Min: Collaboration with the bank has also continued to grow, with the two jointly arranging deals. As a result, underwriting and advisory fees for the first 9 months rose to 2.4 times the level recorded a year earlier, reaching KRW 151.4 billion. The securities subsidiary accounted for half of this total. Our insurance subsidiaries also contributed significantly to non-interest income growth, with insurance earnings increasing by approximately KRW 100 billion YoY. Stronger synergies with the bank helped increase the group's bancassurance earnings by approximately 10% from a year earlier. As a result, the non-bank share of non-interest income rose from 45% a year earlier to approximately 60% this year. Meanwhile, the group's Q3 non-interest income declined 7.6% QOQ to KRW 581.4 billion. This reflected higher securities valuation losses amid rising interest rates and stock market volatility, together with a sharp decline in capital markets fees.
Kwak Seong-Min: However, higher foreign exchange earnings as exchange rates stabilized, along with a recovery in insurance earnings to Q1 levels, helped contain the decline. Looking ahead, Woori Financial Group will continue to pursue business opportunities by harnessing synergies across its banking, securities, insurance, and capital market subsidiaries. By steadily increasing the contribution from non-interest businesses, we will move towards a more balanced earnings mix. We will turn to costs. Please refer to page 4. This shows the group's SG&A expenses. Group SG&A expenses for the first nine months totaled KRW 3.8575 trillion. Q3 expenses stood at KRW 1.2246 trillion, broadly unchanged from the previous quarter. The group's cost-to-income ratio remained stable at 42.3%, in line with our full-year target.
Kwak Seong-Min: Looking ahead, we will proactively make essential investments to strengthen the group's future competitiveness, including expanding infrastructure for our insurance and securities businesses and upgrading IT security systems to guard against cyber attacks. At the same time, we will continue to improve cost efficiency across the group by optimizing our distribution channels and workforce and using AI to streamline operations.
Kwak Seong-Min: Next, credit costs and asset quality. Credit costs for the first nine months of 2026 totaled KRW 1.28 trillion, down sharply by 15.7% YOY. Q3 credit costs stood at KRW 314 billion, a substantial decline of 28.5% QOQ. The quality of our loan portfolio has improved as we have expanded lending to high-quality corporate borrowers and steadily rebalanced our assets over the past two years. As a result, our credit cost ratio for the first nine months declined 242 basis points. Woori Financial Group will remain focused through year-end on achieving our full-year targets of reducing credit costs by 15% and bringing the credit cost ratio to the low 40 basis point range. Our asset quality indicators also remain sound as of end of Q3. As of end September, high-quality loans continued to account for around 85% of the corporate loan portfolio.
Kwak Seong-Min: The NPL ratio also edged down QOQ, supported by a decline in new NPL formation, reflecting our rigorous asset quality management. To prepare for rising interest rates and macroeconomic volatility, we will further strengthen monitoring of vulnerable borrowers and proactively pursue NPL sales and write-offs to maintain sound asset quality across the group. In closing, the key transformation underway at Woori Financial Group is this: having strengthened our capital position, we are now entering a new phase of growth, using that solid capital base to secure future growth opportunities, strengthen our earnings capacity, and increase shareholder returns. Our bank is reinforcing its earnings base by strengthening core businesses, including corporate banking and wealth management, while improving cost efficiency. Following the acquisition of full ownership of Tongyang Life in August, we are now moving forward with the integration of our two life insurers.
Kwak Seong-Min: Once completed, this integration will deliver cost synergies and economies of scale. Our securities subsidiary is steadily building its track record in IB. Obtaining the derivatives license currently being pursued will further strengthen the foundation for earnings growth. Our credit card, capital finance, asset management, and key subsidiaries are also increasing their earnings contributions by enhancing their core competitiveness and group synergies. By delivering KRW 1 trillion in quarterly net profit for 2 consecutive quarters, we have demonstrated that the group's earnings capacity has reached a new level. Looking ahead, we will further strengthen the group's fundamentals through sustainable improvements in ROE and share the benefits with shareholders through differentiated capital returns, reinforcing our competitiveness as a comprehensive financial group. This concludes Woori Financial Group's Q3 2026 earnings presentation. Thank you.
Hong Sung Han: Thank you. Now we are going to begin our Q&A session. If you would like to submit your question, please press star and 1. If you wish to cancel your submission, please press star and 2. We are going to wait until the question comes. The first question comes from SK Securities, Seok Jung Jim, please go ahead and ask your question.
Seok Jung Jim: Hello. Thank you for giving me the opportunity to ask questions. I have 2 questions. First of all, for the margin side, there was a slight significant decline this quarter. What was the impact on the asset management as well as the funding side? Also, starting from July, we have some impact that reflect to some extent, related to fixed margin payout. The second question is for the Tongyang Life. I understand that you ran it quite strongly.
Seok Jung Jim: Was the purpose of your merger to secure liquidity, or did you think that it was more profitable than the authorities were concerned about? I would like to ask you what you did. If possible, at the time of our return rate reached 10%, I would appreciate if you could explain what level of the hedging you are using.
Kwak Seong-Min: Yes, we got the 2 questions. Could you repeat your second question again?
Seok Jung Jim: I have a question about the Tongyang Life. In September, it looks like you did a 700 release quite strongly. Was it because to obtain the liquidity, or did you think that it was okay for your profitability? Also the 100%, the reversal timing, when do you expect that that will be?
Kwak Seong-Min: Please give us a moment as we prepare our response. My name is Kwak Sung Min, CFO.
Kwak Seong-Min: For the first question, it was about our margin. YTD basis, the margin is about 1.3 bps, so it is quite high YOY. I think what you are asking is based on QOQ basis, because on this quarter there is a decline about 7 bps, and you probably want to know why. I would like to further explain about that. I think that I covered this before once, but Q3 this year, I think that there was a burden with the funding cost for all banks, and that was the same for us as well. There was an increase in the funding cost because of the increasing funding rate. For Woori Bank, we have a CD-linked loan, which accounts for 70%, which is quite high.
Kwak Seong-Min: For Woori Bank, compared to our competitors, we had to endure the increase in funding rate, but we also had a bigger gap between long and short-term. To further explain on that, as you know, the market rate, the CD rate, as well as the funding rate. The CD rate, it went up about 41 bps by end of September. For 1 year, the funding, the bond, it actually increased about 132 bps. There was a difference between long- and short-term interest rate, and because of that spread, we had an impact on our Q3 earnings. From September and early October, the long-term rate actually increased more sharply than the short-term. There is the gap between long and short interest rates that had impact on our bank because the CD-linked loan that accounts for 70% of our total loans.
Kwak Seong-Min: That had impact in Q3. By early next year, we have an expectation that the BOK will continue to increase the rate, but we do think that the rate might decrease afterwards. I think that over time, this risk or this factor will actually start to fade. To be more specific, there was a decline in core deposits, which actually led to 2 bps impact. The long and short interest rate spread that I just covered, that actually had about 5 bps impact. In Q2, we had a decline about 7 bps, or for this quarter, we had a decline about 7 bps. If you look at just the Q3 only, there is a decline of 7 bps as I covered. That may look like a significant drop.
Kwak Seong-Min: If you look at the H1 of this year compared to the end of last year, during the H1 of this year, Woori Bank had a YTD of 1.46%. Q1 to Q2, it was 1.51%, respectively. YTD compared to the end of last year, it is an increase of 5 bps for NIM. You can compare the figures yourself. It was a slightly increase in NIMs compared to our competitors for the H1 of this year. I think that you could also consider that fact. As you know, we will also cover the loan growth later. The Korean won loan increased about KRW 12 trillion YTD. The KRW 8 trillion came from the corporate lending, and we also covered this in IR. Corporate lending growth is supported by our principle or the strategy, which is all-in margin.
Kwak Seong-Min: We actually focused on the productive finance, and we increased the large corporation corporate lending. We not only looked at the rate, but we also tried to increase the non-interest income from those transactions. As we increased the corporate lending, we also tried to increase the fee or the FX-related fee income. The IB fee income went up significantly because of that. As you know, the IB, we mostly focus on large corporations. In this process, we have an opportunity to source the IB deal, which could increase the IB-related fee income. Under that strategy, we try to capture not just the interest income, but also the non-interest income. That was our all-in margin strategy. However, there was a slight burden on the NIM for this quarter.
Kwak Seong-Min: Overall, we increased the corporate lending to increase both interest and non-interest income, and that was part of our strategy. Starting from Q4, I believe that this downward trend will no longer be there, and Q4, we will at least remain or have a slight increase. Starting from 2027, we are going to start the asset refreshing, which will improve the NIM. That is the answer for the first question about the NIM. For the second question, insurance-related question, you mentioned Woori Life. I think that it covers both Woori Life and ABL Life because we ended that insurance as of September. I am not sure if I am able to share the reason why here, but as I know from the regulators, we were told to stop to sell this life insurance.
Kwak Seong-Min: I think that it not only applies to us, but it also applies to other insurers as well. The whole life insurance that we stopped selling, it was more from the ABL Life rather than the Woori Life. There could be an impact for ABL Life. This started back in September. We had an internal meeting with our insurers, but this is coming from the regulators, so we need to obviously comply with this. We decided to create an alternative product which can replace this, and we will try to launch this as soon as possible within October. For us, it is a product mostly sold by ABL Life, so not so much impact for the Woori Life, but bigger impact for ABL Life.
Kwak Seong-Min: The alternative products or other solutions, we are currently working on it to make sure that we do not lose the deposit.
Hong Sung Han: Okay. From NH, we have Dong Jun-seok, who has the next question. You have the floor.
Yong Suk Jun: Yes. Hello, everyone. My name is Dong Jun-seok from NH Securities. Thank you for giving me the opportunity to ask a question. I will ask two questions. First, about the CET1 ratio. Of course, it went up, but not dramatically. Maybe because of the previous reason, and I do not know how to interpret this figure. Why did it go down? You talked about the bond and also the interest rate. Were those the sole causes or also because of securities? Going forward, if interest rate hike continues, and if the market continues to slow down, what is your expectations in terms of the outlook? Do you have a long-term plan? That is my question as well. Number two, I have a question about the insurance.
Yong Suk Jun: Now it was delisted, so it will be consolidated, and perhaps more contribution is underway. What would be the next plan? Do you have anything in mind? If we were to do this by next year, do you have any plans for further increase of capital or contribution?
Kwak Seong-Min: Thank you very much. We will now prepare for your question and entertain your question.
Kwak Seong-Min: Thank you very much for that question. The first one was about CET1 ratio change, and number 2 was about the insurance integration plan and anything that we have in mind in terms of contribution. About the CET1 ratio, as you can find it from the IR document, it was 12 point-ish to 13. So about 8 BP went up. As you can see from the material, we wanted to improve the operations risk. So 13 BP went up as the expenses went down by about KRW 202 billion. You may think that actually the increase is not that high. With that in context, I will give you my answer. It was KRW 12.6 trillion.
Kwak Seong-Min: The group, when it comes to recurring asset growth, it is about KRW 8 trillion in terms of the growth. As you know, we have FX, and 183 went down in Q2, so KRW 7.4 trillion declined. We had the FX impact as well as the asset impact as well. In terms of asset, net asset growth, it was about KRW 0.6 trillion, and that is equivalent to a decline of 3 bps. As I have mentioned, we want to increase the risk of operation, and 13 BP went up. So we had, in total, 10 bps impact. We can see that as a contribution. Then we have a 7 BP and then 4 BP in dividends and so on. We also had the FX effects. FX fluctuation also had an impact.
Kwak Seong-Min: It actually had an impact on RWA as well as the assets. The RWA impact is also factored in. When it comes to other bond loss, for us, unlike other companies, the impact is not that high. Based on what I have mentioned, when RWA was concluded on track, it would be about 13.9, but then we have 15 BP difference because of a specific reason. I cannot specify this company's name, but you have to look at the semiconductor. We have some vendors that we work with, and then end of September is the month of corporate tax submission or payment. This is quite technical, but it actually had an impact on the RWA in the payment process. It is about KRW 0.9 trillion. It was not cash.
Kwak Seong-Min: Corporate tax actually increased the amount by KRW 4 trillion, but RWA-wise, it was only KRW 0.9 trillion, but this is temporary. The asset grew because of that corporate tax issue. We plan to resolve that in October. This was temporary once again. About overseas, we have some businesses without control. They actually took out some loan, and we had that loan in end of September and early October it was repaid. This was something unexpected. As of end of September, about KRW 0.6 trillion was the amount. As of end of September, we had some temporary factors. We had some transactions with businesses, and RWA actually went up by KRW 1 trillion, and it impacted 15 BP. As of end of September, it is down 15 BP.
Kwak Seong-Min: But if you look at effective number, we have almost resolved the issue as of October. End of September, it is about 13.95. As we sustain this and maintain this by Q4, 50% will be the year-end dividend out of all dividends, and we plan to use the capital ratio that will go up in that manner. About CET1, that is my answer to your question. Also about your second question about the integration of the insurers and any concerns about the additional contribution. This is my answer to you. As I have been saying, the integration of the two companies has been officially announced, and we are now on track. Integration of the two insurers requires a lot of tasks and works, not just finance consolidation, but HR and IT integration. Three tracks mainly.
Kwak Seong-Min: In terms of IT integration, we need more than that. We need to integrate the financial system and also HR at the end of the day. We have the schedule in place and we are now on track. We believe that 1 October is the deadline for integration, and so far we are progressing on track. We are on schedule. As I have mentioned, the life insurance, in that community, we plan to become number 5. As of integration period, we are focusing on cost synergy, and we wanted to maximize cost synergy towards that destination. The integrated entity, we want it to be financially most effective, and that is how we are working on this.
Kwak Seong-Min: How are we going to maximize CSM and K-ICS view, how are we going to work on that number is something that we are looking at. We are working to maximize the numbers. To talk about the technical ideas, it is about how we are going to work with the subsidiaries or the underlying companies. Based on that, we want to integrate and relieve your concerns. What we can say for now is that after integration, we do not want the holding company to actually inject capital to this insurance because of financial issues, that is something that we want to refrain from. We have not only legal integration, but also HR integration that we have in mind, and we will do our best to stay on track.
Kwak Seong-Min: With the integration, the IT investment shift for the insurers, while that also includes investment for AI, so be it sales or the entire business process, especially underwriting. The end-to-end value chain will be monitored. We plan to embed AI to the legacy system, and that is what we are doing right now as we work for IT integration. Once we complete the process, we will be efficient and the integrated entity will be effective. So no further capital injection.
Hong Sung Han: Thank you. Next question is from UBS Securities. Please go ahead and ask your question.
Ben Dawson: Hello, good afternoon. My name is Beck Dawson from UBS Securities. I do have a question about the asset quality. The current delinquency rate increased a lot in this quarter, so I want to know the reason behind that. Also, the group, the CCR, it is maintained at a very low level. After Q4, how do you actually foresee the asset quality, including the CCR?
Kwak Seong-Min: Thank you for your question. Let us go ahead and answer that question.
Kwak Seong-Min: My name is Kwak Sung Min, the CFO. For the card, I think you had a question about the soundness of the Woori Card. The delinquency rate, yes, it went up, as you can see in the figures. There are no specific reasons behind this, though. Compared to Q1 and Q2, the disposal as the write-off, the cost went up. That is why the NPL went up and the delinquency also went up. As you know, we are right now in the higher rate cycle. The card, the investment banks, these are the subsidiaries that are more accessible by the vulnerable customers. We continue to monitor these transactions and loans to make sure that we do not see higher increase for delinquency rate. As I covered, the disposal, the size actually went up from last quarter. That is why we are seeing this change.
Kwak Seong-Min: In Q4, we are going to actually stabilize at the same level as our competitors. Delinquency rate and the NPL ratio in Q4 per card will go down. For the credit cost, I think you had a question about the outlook. In Q3, the NPL rate, it all went down. Because the NPL for banks and other subsidiaries actually went down significantly, and that has been reflected. We have been managing the risks proactively to make sure that we do not have any new NPLs. I think that our effort actually was reflected in this decline in the figures. As you know, the one-off items such as the ones that we had in Q1 and Q2, we do not have that anymore. We increased the corporate lending, which also helped reducing the new NPLs. Q4 and 2027, we are going to continue this effort.
Kwak Seong-Min: As for asset quality, compared to our competitors, we are going to continue our leading position, and we are going to maintain that position going forward. So the 2026, the CCR
Kwak Seong-Min: I think it will be stable within the early 40 bps range. We also promised that we are going to actually decrease by 15%, and this is a goal we believe that we can achieve this year. Before we had a real asset trust and the investment banking, we actually eliminated those in 2025, so we do not have any risks associated with that anymore. Going forward, the credit cost, the CCR management, I think we can actually maintain the same level. Thank you.
Hong Sung Han: Okay. Next question from HSBC, we have Mr. Wonje Yong, who has this question. You have the floor.
Wen Jie Ong: Okay, thank you very much for the opportunity to ask questions. I will ask two. First, about insurance. Number two, about shareholder returns. Two weeks ago, there was this article that came out, and now ABL Yeouido Tower selloff is accelerating. That is what the news is saying. According to the news, it is about KRW 300 billion. Of course, the price could change and Koramco has been selected as a preferred bidder. I believe that the process is faster than expected. Then, when do you think the earnings will be reflected, and what about CET1? When will this be reflected? Can I have a rough number? Number two, about shareholder returns. In fact, when it comes to shareholder capital, you are managing this quite well.
Wen Jie Ong: From October, it is about 13.9, and that is what you have mentioned before. ABL Tower, once it is sold, then CET1 will also go up and improve. As for shareholder returns, well, it will be much higher than last year, and that is thanks to your dedication. According to the estimate, your target is about mid-40 bps, and that is my expectation. But this is my question. It is about the following year, because the CET1 is improving and then earnings go up, then other companies, they are exceeding 50%. Now, of course, exceeding 50% maybe should be our next goal or target. What about next year's shareholder returns? Do you have any plans for that or any ideas? Do you have any plans to introduce new frameworks for next year? That is my question.
Kwak Seong-Min: Okay. So about the insurance, the asset sales, and also shareholder returns.
Kwak Seong-Min: Two questions. We will now give you the answers in a moment. About the first question about the property sales, ABL Life, you said that you saw the news and it is out. While most of the data and information is correct, I cannot represent it fully. The building is up for sale, and I believe that you want to know the timeline. What we have for now and what the newspaper is saying, while we are actually talking with the preferred buyer, if everything goes as scheduled, the ABL Tower, we believe for now, will be sold by the end of this year. If we were to look at the schedule-wise, we are now on track to complete it by the end of this year.
Kwak Seong-Min: The price, it is the preferred buyer, and once it is selected, of course, it will be a real estate agent and not M&A, but still, we have to do auditing. That will determine the price. I am being prudent here. I do not want to disclose any specific numbers today because we have the counterpart. Maybe we are not in a position to disclose the numbers for now. What I can say for sure is that the negotiation, if it goes as planned, by the end of this year, it is highly likely that the sales will be completed. That is how much I can tell you. As you know, now insurers, let us say that it was a bank's property, it is RWA 100%, so it does help.
Kwak Seong-Min: For insurers, it is a CET1 ratio, and the calculation is different from that of the bank. Given that into account, CET1 ratio should be looked at differently because you have property out and then cash in. It will not impact the net asset, but the CET1 calculation of the insurers, you know better than us how to calculate the number. It is not that, but then once we reach sales profit, it will be retained, and it will be contributing to CET1. That is how much I can tell you for now because it is now in progress. Also moving on to your second question, about CET1 ratio and also shareholder returns, you wanted to know some outlook or expectations. As I have mentioned in Q3, it is about 13.8. That was an estimate.
Kwak Seong-Min: We have some specific factors with the companies that we are working on, and there was an asset increase because of that. The precondition is that we resolve all of that. In Q3 it will go above 13.9. Year-end, the dividend accounts for 50% of total dividend payout. Once we decide on the year-end dividend, we will actually reflect that towards the end of the year. I cannot disclose the number now, but it will be a great contributor, so it will cause some decline. As for capital ratio, we are at the level of our peers as well. There were at times, last Q4 where we had to stop in terms of capital ratio, but that is no longer the case this next quarter.
Kwak Seong-Min: Given that growth potential, we believe that CET1, we will maintain a 13.6% to 13.7% range. That is what I can tell you. With that as an assumption, as you have mentioned, our total shareholder return, or TSR, could be mid-40% range. We believe this is very possible. 50%, if it was tax-exempt, and if we were to reflect that, then TSR 18.4% is added, so tax-exempt-wise, it is above 50%, so please keep that in mind. Next year, as you have mentioned, the nominal TSR, of course, we will have to look at the financial statements of next year. As CFO, we want to re-look at the TSR. Nominal-wise, my idea is that it has to exceed 50%, but as we plan for the next year’s financial statement, we need to work on the details.
Kwak Seong-Min: As we make it more concrete, as you have mentioned, we have this value-up plan, and there are some elements that we plan to upgrade. With that, and as we discuss that within the board and reach a decision, then at the end of the year when we do earnings presentation, perhaps we could discuss the number. What is certain is that the capital ratio went up, and we want to make sure that it contributes to growth and shareholder returns. Capital ratio goes up, and from 2027, we want to fully take advantage of that. The plan is to kick that off starting 2027, and that is what I want the market to understand as well. Thank you.
Hong Sung Han: There are no more questions.
Hong Sung Han: Out of the questions that we addressed today, we also had questions that came in in advance through our website. They were mostly from retail investors. Most of the questions were about the dividend for 2027 and how long we are going to do the non-taxable dividend. We were not able to cover that today during the Q&A session, so we will ask CFO to answer that.
Kwak Seong-Min: For dividend, for DPS, as of now, based on our value-up plan, our aim is to continue to increase this on an annual basis more than 10%, and we are going to continue with this going forward. As we do the shares buyback, we are going to continue to increase DPS, and of course, ROE will have to be improved.
Kwak Seong-Min: Through the increasing ROE from the non-banking sector, we can also increase the non-income, and we can downsize the outstanding shares, thereby maintain the 10% level for the DPS. We are going to continue to achieve this goal. As you know, the non-taxable dividend, we are the very first one to do this, and we are the only financial holding company who are giving the non-taxable dividend. For the non-taxable, the total amount is KRW 6 trillion, 300 billion, and after Q3 dividend, the remaining amount will be KRW 5.2 trillion. We are going to maintain our quarterly dividend principle, which will cover at least three or four years going forward.
Kwak Seong-Min: About the dividend, maybe not right away. It is not something that we can decide either this year or next year. But in long-term basis, because we do have enough funds to cover 3 or 4 years, I think about 2028, maybe, we can have another discussion, and we can reassess the amount that we can pay the non-taxable dividend. Maybe we can secure the amount additionally for non-taxable dividend that time. This is something more we have to look at in a long-term basis. Before we use all the amount, we will review whether we can secure additional funds for non-taxable dividends. But this is a midterm target. Maybe it may be too early for me to comment on this, but this is a possibility, and this is something that we are reviewing right now. That is all.
Hong Sung Han: Thank you.
Hong Sung Han: I think that is all the questions for today, and we are going to conclude today's presentation today. Again, thank you for joining the Woori Financial Group earnings conference call for Q3. Thank you.
