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    Hongjae Lee • Hana Financial Investment

    Hongjae Lee's questions to Woori Financial Group Inc (WF) leadership

    Hongjae Lee's questions to Woori Financial Group Inc (WF) leadership • Q1 2024

    Question

    Hongjae Lee from Citigroup inquired about the potential acquisition of Lotte Insurance, asking for a sensitivity analysis on how the purchase price would affect risk-weighted assets (RWA) and questioning the group's overall M&A budget.

    Answer

    CFO Lee Sung-Wook confirmed that Woori Financial Group is reviewing the Lotte Insurance opportunity but emphasized that no decision has been made and the group would not overpay. He clarified that an insurance acquisition carries a 250% risk weight, meaning a KRW 500 billion purchase would increase RWA by KRW 1.2 trillion. He stated the group's M&A principles remain unchanged, focusing on maximizing shareholder value and ROE within its capital adequacy framework.

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    Hongjae Lee's questions to Woori Financial Group Inc (WF) leadership • Q1 2024

    Question

    Hongjae Lee inquired about the potential acquisition of Lotte Insurance, asking for a sensitivity analysis on how the purchase price would impact risk-weighted assets (RWA) and questioning the group's overall M&A budget.

    Answer

    CFO Lee Sung-Wook confirmed that Woori Financial Group is reviewing the Lotte Insurance opportunity but emphasized that no decision has been made and they will not overpay. He explained that a KRW 500 billion purchase price would increase RWA by approximately KRW 1.2 trillion due to a 250% risk weight, which he deemed manageable. He reiterated that the M&A strategy remains focused on maximizing shareholder value and group synergies within their capital adequacy framework.

    Ask Fintool Equity Research AI

    Hongjae Lee's questions to Woori Financial Group Inc (WF) leadership • Q1 2024

    Question

    Hongjae Lee of Hana Financial Investment inquired about the potential acquisition of Lotte Insurance, asking for the sensitivity of risk-weighted assets (RWA) to the purchase price and details on any dedicated M&A budget.

    Answer

    CFO Lee Sung-Wook confirmed that Woori Financial Group is reviewing the Lotte Insurance opportunity but emphasized they would not overpay, acknowledging market concerns about capital adequacy. He clarified that a KRW 500 billion acquisition would increase RWA by approximately KRW 1.2 trillion due to a 250% risk weight. He stated the group's M&A principles remain focused on maximizing shareholder value and ROE within their capital limits.

    Ask Fintool Equity Research AI