Woori's privatization momentum picks up steam on stock growth

Woori's privatization momentum picks up steam on stock growth

By Anna J. Park

Woori Financial Group’s stock price is showing upward movement, reflecting investors’ positive expectations over its favorable performance in the third quarter.

The financial group’s stock finished at 11,800 won ($10.44), a 0.84 percent drop from the previous session. The stock price hit a 52-week high of 12,050 won at 9:10 a.m. Thursday during the session, yet it fell slightly during the rest of the day’s trading, finishing at 11,800 won.

Although the stock got a little bearish during Thursday’s session, its price has been on a gradual upward trend, despite fluctuations, increasing by nearly 20 percent during the past three months. Market analysts believe that the financial group’s solid performance outlook is reflected in the rising price.

“The second quarter’s net profit is expected to be a lot higher than the market consensus, as Woori Financial Group is estimated to log 681 billion won of quarterly net profit, a 378 percent increase from the same quarter last year,” said Choi Jung-wook, analyst at Hana Financial Investment, explaining that its net interest margin (NIM) is forecast to grow further.

“The entire net profit for this year is expected to be around 2.1 trillion won, a 57.3 percent jump from the previous year,” the analyst said.

The stock’s dividends per share is also expected to double to around 700 won per share, which is nearly double that of last year’s 360 won per share. The expected dividend rate ― the ratio that shows how much a company pays out in dividends relative to its stock price ― exceeds 6 percent.

Market watchers also believe the financial giant could acquire a brokerage company after the third quarter, in order to expand its non-banking business portfolio.

With such a rosy outlook, the state-run Korea Deposit Insurance Corporation (KDIC) is expected to sell Woori Financial Group equities that it has owned for decades this summer, as part of the government’s plan to complete the privatization of the financial giant by 2022.

Despite the KDIC’s block sale of 2 percent of Woori Financial shares in April, the state-run organization still owns 15.25 percent of the financial group’s shares. According to the government’s roadmap, the KDIC plans to sell the entire amount of its shares in Woori Financial by next year.

The government injected a whopping 12.7 trillion won into the financial group to save it from the Asian financial crisis in the late 1990s. While nearly 90 percent of the public money has been retrieved during the past two decades, the remaining amount ― 1.3 trillion won ― is expected to be collected through selling the KDIC’s Woori shares.

News Related

OTHER NEWS

SK Innovation to split off battery business

SK Innovation CEO Kim Jun speaks about the company’s eco-friendly transition at an event held July 1. Courtesy of SK Innovation Battery business will become profitabe in 2022 By Kim ... Read more »

90% of college students demand tuition refunds

Students hold a protest rally in Seoul, in this April 3 photo, calling on universities to refund tuition, as they have had to pay full tuition for low-quality online classes, ... Read more »

NFT artworks inspired by Kansong Art Museum's cultural artifacts to be unveiled

A screenshot of the website for the “me.Duck” project / Courtesy of Art Center Nabi By Park Han-sol Just two weeks ago, the Kansong Art Museum shook the art world ... Read more »

Interpark shares soar on takeover expectations

By Anna J. Park Interpark’s share price rallied again on Wednesday as investor sentiment continued to be lifted by expectations of the successful acquisition of Korea’s first generation e-commerce platform. ... Read more »

Record FX reserve helps to offset external risks

A clerk stacks a pile of $100 bills at Hana Bank’s headquarters in central Seoul, Wednesday. The Bank of Korea announced on the same day that the country’s foreign exchange ... Read more »

Disaster meets comedy in upcoming film “Sinkhole”

From left, actors Lee Kwang-Soo and Kim Hye-jun, director Kim Ji-hoon, actors Kwon So-hyun, Nam Da-reum, Cha Seung-won and Kim Sung-kyun, pose for pictures during a media conference held in ... Read more »

Australian sharemarket goes from strength to strength, with both key indices climbing to fresh record highs

The Australian sharemarket has smashed records yet again, seemingly helped by Tuesday’s vote of confidence in the local economy by the Reserve Bank and a positive overnight lead from Wall ... Read more »

Cooperation for digitization

KT CEO Ku Hyeon-mo, left, and Industrial Bank of Korea CEO Yoon Jong-won hold a signed memorandum of understanding, Wednesday. The two will cooperate in fostering firms with innovative and ... Read more »

Experts call for preemptive measures against Delta plus variant

A medical worker works at a government-designated COVID-19 treatment hospital in Pyeongtaek, Gyeonggi Province, Wednesday. Yonhap Authorities to decide on whether to extend strictest social distancing By Lee Hyo-jin Medical ... Read more »

Fairmont Ambassador Seoul wins five stars

Carl Gagnon, left, general manager of Fairmont Ambassador Seoul, and Kim Gi-seop, CEO of Parc.1 Hotel Management, pose during a plaque unveiling ceremony to mark the hotel’s winning of the ... Read more »

Korean carmakers ask EU to be considerate with new carbon policy

EU flag / AP-Yonhap South Korean carmakers called on the European Union to be considerate in adopting stricter regulations to curb carbon dioxide emissions due to a possible impact on ... Read more »

'Zitwer factor': Before her, few readers outside Korea heard about Korean thrillers

New York-based literary agent Barbara Zitwer / Courtesy of Barbara Zitwer New York-based literary agent recently inked a flurry of deals with big Western publishers to release Korean novels globally ... Read more »

Govt. to decide Friday whether to adjust social distancing restrictions: PM

Prime Minister Kim Boo-kyum speaks during an interagency meeting on COVID-19 at the government office complex in Seoul on Wednesday. (Yonhap)The government will closely monitor the COVID-19 situation to decide ... Read more »

New cases spike to over 1,700, almost 40 percent of population gets 1st jabs

A driver gets tested for COVID-19 at a drive-thru testing center in Jungnang District in Seoul, Aug. 4. Yonhap South Korea’s daily new coronavirus cases sharply bounced back to the ... Read more »

'Mogadishu' tops 1 million admissions on 7th day of release

A scene from “Escape from Mogadishu” / Courtesy of Lotte Entertainment Homegrown actioner “Escape from Mogadishu” has topped a cumulative 1 million admissions on the seventh day of its release, ... Read more »

Military reports 3 COVID-19 cases

This file photo, taken July 11, 2021, shows an armed forces lounge at Seoul Station. (Yonhap)Two Army cadets and an Air Force civilian employee have tested positive for the new ... Read more »

NK officials attend Russian Embassy's exhibition, resume in-person diplomacy

North Korean officials attend a photo exhibition held at the Russian Embassy in Pyongyang, in the photo disclosed by the Korean Central News Agency on Wednesday. (Korean Central News Agency)North ... Read more »

US will not accept nuclear N. Korea despite N. Korean ambitions: US official

The captured image shows Sydney Seiler speaking in a webinar hosted by the Washington Times Foundation on Tuesday. (Yonhap)WASHINGTON — The United States will never accept a nuclear-armed North Korea ... Read more »

Gov't vaccine delivery system faces criticism

People receive coronavirus vaccines at a vaccination center in Gwangjin District, Seoul, Tuesday. Yonhap By Lee Hyo-jin Criticism is rising over inconsistencies in the government’s COVID-19 vaccine delivery system based ... Read more »

Student Loan Cancellation Became Focus On Capitol Hill Today

Sen. Chuck Grassley (R-IA) (Photo by Win McNamee/Getty Images) Getty Images Student loan cancellation became the early focus today during hearings on Capitol Hill. Here’s what you need to know. ... Read more »

S&P 500 Hits Record High And Dow Climbs 200 Points After Blowout Earnings And Economic Data

Topline Ending a choppy session that initially pulled markets into negative territory, the S&P 500 closed at a new record high Tuesday after monthly economic data alleviated concerns over rising ... Read more »

Vornado Realty Trust Crosses Above 5% Yield Territory

In trading on Tuesday, shares of Vornado Realty Trust were yielding above the 5% mark based on its quarterly dividend (annualized to $2.12), with the stock changing hands as low ... Read more »

The Metaverse: What Every Early-Stage Investor Needs To Know

August 2, 2021 Welcome to the Metaverse U.S. Global Investors You may not be familiar with the term metaverse, but if you’ve been a consumer of popular books, movies and ... Read more »

Beverage Stock Signal Has Never Been Wrong

While beverage name Keurig Dr Pepper (KDP) posted an earnings beat last week, the equity wound up suffering a bear gap just a few days later, pressured lower by a ... Read more »

Invesco QQQ Trust Among Top ETFs For August

getty August is starting out slow for stocks, with markets trading flat, but they are on a five-month winning streak right now looking to make it six. For those who ... Read more »

At $29 Billion, Square Overpays For Afterpay

MIAMI, FLORIDA – JUNE 04: Jack Dorsey creator, co-founder, and Chairman of Twitter and co-founder & … [+] CEO of Square on stage at the Bitcoin 2021 Convention, a crypto-currency ... Read more »

What To Expect From CVS Health Stock Post Q2 Results?

CVS Health logo is displayed on a mobile phone screen photographed on surgical masks background for … [+] illustration photo during the coronavirus pandemic. Gliwice, Poland on April 21, 2021. ... Read more »

Earnings Beat In The Cards For NY Times' Stock?

The New York Times logo is seen on a newspaper rack at a convenience store in Washington, DC, on … [+] August 6, 2019. (Photo by Alastair Pike / AFP) ... Read more »

Forecast Of The Day: Salesforce.com's Cloud-Based CRM Revenue

Sign with logo at the regional office of Salesforce in the Silicon Valley, Palo Alto, California, … [+] November 2, 2018. (Photo by Smith Collection/Gado/Getty Images) Getty Images What? Trefis ... Read more »

Dogecoin Cofounder Blasts Crypto And Claims 'Billionaires Manipulating Markets'—Here's Why He Quit The Joke Memecoin Years Ago

Topline Though he’s kept quiet for much of dogecoin’s meteoric rise over the past year, the coin’s cofounder Jackson Palmer broke his silence to rail against cryptocurrencies in a wild ... Read more »

New Bridges, Roads, Internet And More: Here's What Made It Into The $1 Trillion Infrastructure Bill Backed By The Senate

Topline Following weeks of bipartisan negotiations, the Senate late Sunday released a 2,702-page infrastructure bill that, if approved, would authorize nearly $1 trillion for the nation’s roads, highways, bridges, transit ... Read more »

Billionaires Gautam Adani, Kuok Khoon Hong's Indian JV To Raise $605 Million From IPO

Gautam Adani addresses the media in Mumbai to unveil the company’s new global corporate brand … [+] identity and logo on February 23, 2012 in Mumbai, India. Abhijit Bhatlekar/Mint via ... Read more »

Strong Opening Move: New Month To Feature Jobs Report, Slew Of Earnings

Getty Images Getty Images Key Takeaways: Another busy earnings week ahead with Uber UBER , Lyft, Square SQ Jobs report this coming Friday dominates the data picture Square planning to ... Read more »

Uber And Lyft Race To Raise Hood On Driver Shortages, Alternative Revenue Sources

Getty Images Getty Images Key Takeaway: Driver shortages, customer hesitancy seem to be impeding the path to profitability Regulation on driver benefits could be another roadblock Investors eyeing ride-hailers’ moves ... Read more »

Pressure Descends On Market Despite Impressive Outing From Morgan Stanley

Getty Images Getty Images Key Takeaways: Morgan Stanley becomes latest big bank to impress with earnings, but stock falls China’s GDP comes in below expectations, but retail sales, industrial production ... Read more »

Big Bank Earnings: JP Morgan, Wells Fargo, Goldman Could Give Big Picture Economic View

Getty Images Getty Images Key Takeaways: Big bank earnings seen rising triple-digits year-over-year as economy recovered Tougher times could be ahead for industry as rates continue falling Weak trading activity ... Read more »

Why Did Roku Stock Drop 10% In A Week?

UKRAINE – 2021/07/04: In this photo illustration a Roku logo is seen on a screen with a silhouette … [+] of a hand holding a tv remote. (Photo Illustration by ... Read more »

What To Expect From Electronic Arts' FY22 Q1?

UKRAINE – 2021/04/23: In this photo illustration, Electronic Arts (EA) logo of a US video game … [+] company is seen on a smartphone and a pc screen. (Photo Illustration ... Read more »

Up 5% Last Week, Diodes Incorporated Stock Could Continue Its Rise

BRAZIL – 2020/10/29: In this photo illustration the Diodes Incorporated logo seen displayed on a … [+] smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via ... Read more »

Under Armour Stock To Trade Higher Post Q2 Release?

UKRAINE – 2021/05/05: In this Photo illustration an Under Armour logo of a sports equipment company … [+] is seen on a smartphone and a pc screen. (Photo Illustration by ... Read more »