[Korea Selected financial newspaper reporters - Woori Bank decided in one of the business strategy for this year ''s business portfolio (PF) Rebuild "plans to focus on business diversification.
Last week yigwanggu haengjang this reappointment is confirmed at a general shareholders 'meeting, we have entered a full-fledged bank, one private group' system. Yigwanggu haengjang emphasis on a comprehensive financial group samgo a holding company promoted on the basis of past experience, was the first domestic financial holding system into tasks, as private bank plans to talk to changes in profitability and asset quality management.
◇ one of diversification, five engines
"Privatization is not the end to the beginning in 2017 is the first year for the three'll comprehensive financial re-bound."
Our bank is open the first 183 Annual Shareholders 'Meeting in Seoul, Korea headquarters was approved according to the original bill in the last 24 days the shareholders' meeting agenda included the senior agenda yigwanggu CEO (CEO). Yigwanggu haengjang at the shareholders' meeting, "Our Bank achieved the privatization of 16 years who was cherished outcome employees efforts" and "profitability, asset quality, I say were geodwot a remarkable performance in growth every financial performance division has quality indicators significantly improve the market concerns could be totally eliminated, "he said.
Reached a full year, one private group, our bank has decided to direct the "new tomorrow, stronger banks" in the management plan objectives in 2017. Yigwanggu haengjang said, "We will help create a stronger bank, entrepreneurship second."
5 business strategies in the △ new business models excavation and revenue portfolio diversification △ Banka, funds, trusts and asset management competitiveness △ distribution, health care, education, living hyperlocal platforms and wibi platform network connection expansion △ Southeast Asian center network expansion, etc. proposed a global business qualitative growth △ investment banking (IB) business expansion and enable two kinds of industry convergence, including advance. Revenue Portfolio diversification is the pool that contains the transition to a holding company, including business diversification pavement. Yigwanggu our Bank has emphasized, "We will through a combination of banking and non-banking sector growth as a comprehensive financial group, such as 1".
Woori Bank is the selection of the state "when switching holding company strengths and weaknesses and the expected effects expert for review activities," Kim & Chang and Samil PricewaterhouseCoopers as advisors.
Yigwanggu haengjang earlier this year has had to be established on the 'Future strategy However, it enlarged the existing subsidiary organizations manage the Corporate Planning Group and the holding company dedicated to the related work transition.
We started as a financial holding past the first domestic financial holding company in 2001, it was merged with our bank in the privatization process. Our banks for privatization sale of Woori Investment & Securities (now the NH Investment & Securities) and Woori Aviva Life Insurance (current life DGB), regional banks, including subsidiaries and turned into a center of banking systems in the financial holding system. Currently, a subsidiary remains our cards, our comprehensive finance.
Woori Bank official said, "Group Status identify, review the holding company to another financial holding company case studies including advisors have begun a fundamental review of the film state in the early stages."
In the banking industry is paying attention to the pace of our bank holding company review. Holding company transition to a higher risk weighting of assets seems to be improving our card and merchant banks capital adequacy ratio is also around 1% if we exclude from the bank consolidated financial statements.
However, industry etc. In accordance with the new government took an early presidential election comes also observed that the holding company can be a variable thrust. Further Deposit Insurance Corporation holds a 21.4% stake in the bank, we are pursuing the recovery of public funds.
Banking industry officials predicted would "be forced to review the holding company after the transition because the expectations of the market and the new privatized in the mid- to long-term shareholders." Other financial officials also "holding company is to screen portfolio with a variety of business areas spread the risk of the entire Group," said "are in the acquisition and management aspects merger (M & A) in non-bank affiliates can be a holding company is profitable system," he said .
On the other hand, if our banks are authorized to apply for pre-approval with respect to financial holding companies in the Financial Services Commission (FSC) FSC is the examination for 60 days. Is this preliminary screening results if the issue is approved by a review period of 30 days after the application boninga is determined.
◇ Holding gakchukjeon in "overseas, the platform"
Among the major financial holding their naesewooneun in front of the bank and non-bank affiliates collaboration system, our bank has also joined the ranks of competition in the banking center. We reported last year, the bank board, look at the agenda Resolution information can be seen interest in global expansion and pin Tech (Fintech) attack the heart of our bank in Southeast Asia.
According to our disclosures by banks '2016 annual report, corporate governance and compensation systems' data, last year, our bank has a total of 17 board meetings as a regular (4 times), temporary (13) was convened.
In January last year the Council took place Woori Bank internet banking professional, 'kay bank' founded Progress Report to the shareholders who participated. 3-4 cars Southeast Asian financial institutions acquired the agenda for the international network expansion (March), the Council, the 14th (November) In the Council came up.
Our Bank has received the final approval of the local bar Medium savings banks 'Rob Wells DiBella Entertainment banks' 51% stake acquired from the Philippines financial authorities last October. Our banks are like including the Philippines, Myanmar, Cambodia, Indonesia and Vietnam in Southeast Asia focused regional expansion.
In the 5th Board of Directors (April) was also approved two new offices is the agenda of the international network expansion.
The yigwanggu haengjang the 'wibi platform, strengthen the movement being promoted throughout the company in our bank was pronounced In terms of cooperation with the subsidiaries. Our credit card company and "wibi Markets' business alliances promoting gun (8th - June) for building integrated financial platform," wibi crowd "advertising agency business cooperation promotion thing of the operating sign our Investment Bank (12th and October ) this was resolved.
◇ 'two rabbits, catching ... Tactile indicators improved capital
The first half of our bank is expected to be relatively cruising in terms of performance or quality management.
Once the dominant stockholder governance system stability is evaluated as a test to prove to the market price of an analysis that could be a positive signal.
Korea Investment & Securities Baekdu analyst "in the first quarter of 2017 took place in China hwapu building NPL disposal gains (170 billion won), the second quarter is likely to be reflected in the stock sale profit (145.9 billion won) in accordance with the Kumho Tire stake." analysis was said that "the cyclical sector loans reduced differentiation and national banks will continue to gauge the implementation of business normalization agreement (MOU) with the termination of the deposit Insurance Corporation."
In the case of capital soundness saw the banking supervisory regulations and bylaws amended to recognize the effects of the information provisioning reserves to common equity. Domestic banks should increase due to the Basel III Bank for International Settlements (BIS) capital adequacy standards by 2019 to 10.5% (common equity ratio of 7%). The major systemic banks, bank holding company with 11.5% of our cases (common capital ratio of 8%) named the (D-SIB) is applied.
According to the Financial Supervisory Service (FSS) of the year-end '16 bank and bank holding company status of BIS capital ratio (provisional) 'data, Woori Bank shares capital adequacy ratio of the end of the third quarter of last year 1.42% points from 9.08% to 10.5% at the end of December I climbed. Commercial banks average (0.62 percentage points) improved to more than double the level of contrast.
However, when compared with the commercial banks average common equity ratio (13.25%) is still low. As dismantled after holding our cards, such as a higher risk weighting non-banking subsidiaries are incorporated in the consolidated analysis it is that the aspects common equity ratio dropped.
Korea Investors yeoyungi analysts "As risk-weighted rapid growth in our in merger losses seen in the merger process of the financial holding gains of assets surplus shrinks common equity ratio to lower, while Coco Bond (T1) issued primary capital ratio will be maintained It was "and" predicted that the recent bond Coco (T1) and associated buffer capital ratio requirement that unpaid basis and strengthened it seems to require additional capital raising of capital, such as common stock. "
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