Form 6-K
Table of Contents

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2017

 

 

Woori Bank

(Translation of Registrant’s name into English)

 

 

51, Sogong-ro, Jung-gu, Seoul, 04632, Korea

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 


Table of Contents
    

Index

1.    Summary of 2017 3Q Business Report
2.    Exhibit 99.1 Woori Bank Review Report for 2017 3Q (Consolidated)
3.    Exhibit 99.2 Woori Bank Review Report for 2017 3Q (Separate)

 

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Table of Contents

Summary of 2017 Third Quarter Business Report

Table of Contents

 

I. INTRODUCTION OF THE BANK

     5  
 

    1.

  

Overview of the Bank

     5  
 

    2.

  

Capital Structure (Changes in Capital)

     9  
 

    3.

  

Total Number of Authorized Shares

     10  
 

    4.

  

Voting Rights

     10  
 

    5.

  

Dividend Information

     11  

II. BUSINESS OVERVIEW

     12  
 

    1.

  

Results of Operations

     12  
 

    2.

  

Business Performance by Operation

     13  
 

    3.

  

Funding Sources and Use of Funds

     14  
 

    4.

  

Other Information Necessary for Making Investment Decisions

     17  

III. FINANCIAL INFORMATION

     19  
 

    1.

  

Condensed Financial Statements (Consolidated)

     19  
 

    2.

  

Condensed Financial Statements (Separate)

     21  

IV. INDEPENDENT AUDITOR’S OPINION

     23  
 

    1.

  

Independent Auditor’s Opinion

     23  
 

    2.

  

Compensation to the Independent Auditor for the Past Three Years

     23  

V. CORPORATE GOVERNANCE AND AFFILIATED COMPANIES

     24  
 

    1.

  

About the Board of Directors

     24  
 

    2.

  

Affiliated Companies

     25  

VI. SHAREHOLDER INFORMATION

     26  
 

    1.

  

Share Distribution

     26  
 

    2.

  

Stock Price and Stock Market Performance

     27  

VII. DIRECTORS AND EMPLOYEE INFORMATION

     28  
 

    1.

  

Directors

     28  

 

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    2.

  

Employee Status

     29  
 

    3.

  

Directors’ Compensation

     29  

VIII. RELATED PARTY TRANSACTIONS

     29  

Except where indicated otherwise, financial information contained in this document (including the attached financial statements) has been prepared in accordance with the Korean equivalent of International Financial Reporting Standards (“Korean IFRS”), which differ in certain important respects from generally accepted accounting principles in the United States.

All references to “Woori Bank,” “we,” “us” or the “Bank” are to Woori Bank and, unless the context requires otherwise, its subsidiaries. In addition, all references to “Won” or “KRW” in this document are to the currency of the Republic of Korea.

 

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Table of Contents
I. Introduction of the Bank

 

1. Overview of the Bank

 

a. History

 

  (1) Background: Major developments.

 

  March 27, 2001    Became a subsidiary of Woori Finance Holdings Co., Ltd. (“Woori Finance Holdings”)
  December 31, 2001    Merged with the spun off banking division of Peace Bank of Korea
  January 31, 2002    Transferred the credit card business of Hanvit Bank to Woori Card
  May 22, 2003    Awarded Republic of Korea Corporate Image Grand Prize – Grand Prize for CI and First Prize for Knowledge Management
  July 31, 2003    Merged with Woori Investment Bank
  March 31, 2004    Merged with Woori Credit Card
  September 7, 2004    Selected as 2004 Top Bank of Korea by British magazine “The Bankers”
  November 4, 2005    Opened the first comprehensive financial office in the financial sector, “Woori Finance Plaza”
  May 19, 2006    Established Korea BTL Infrastructure Fund
  December 1, 2006    Officially launched Woori Global Markets Asia Limited
  November 12, 2007    Established a local legal entity in China, Woori Bank China Ltd.
  January 9, 2008    Established a local legal entity in Russia, ZAO Woori Bank
  December 16, 2008    Issued 70,000,000 convertible preferred shares (par value KRW 5,000, issue price KRW 10,000)
  April 1, 2009    Issued 60,000,000 common shares for increase in capital
  December 15, 2009    Awarded Asian Financial Culture Grand Prize “Top Prize in Community Activities”
  March 21, 2010    Woori Bank China Ltd. acquired qualification as a “settlement bank for Renminbi currency in international trade”
  April 18, 2011    Woori Smile Microcredit executed an MOU to jointly support microcredit with the Ministry of Land, Transport and Maritime Affairs

 

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  April 25, 2012    Awarded “2012 Top Bank of Korea” by the Asian Banker for two consecutive years
  August 30, 2012    Awarded 2012 Asia PB Top Award by Asia Economic Daily
  September 25, 2012    Woori Brazil Bank began business
  October 11, 2012    Selected as “Top Financial Institution for Anti-Money Laundering”
  November 7, 2012    Awarded Grand Prize for the First Awards for Protection of Financial Consumers in 2012 by the Korea Economic Daily
  November 29, 2012    Awarded Presidential Award sponsored by the Financial Supervisory Commission for “Anti-Money Laundering”
  December 6, 2012    Awarded “2012 Grand Prize for Small Loan Financing”
  December 13, 2012    Awarded Grand Prize for “2012 Aju Economy and Finance Award”
  January 17, 2013    Awarded Grand Prize for Top Customer Service
  March 27, 2013    Awarded Grand Prize for Woori Bank “Two Chairs” PB services for four consecutive years
  April 1, 2013    Spun off its credit card business
  June 27, 2013    Number 1 in Korean Standard-Service Quality Index (KS-SQI) for three consecutive years
  October 4, 2013    Selected by National Pension Fund as “Top Foreign Exchange Bank”
  December 19, 2013    Awarded “Grand Prize for Small Loan Finance” sponsored by the FSS
  January 3, 2014    Awarded final approval to acquire Indonesia’s Saudara Bank
     115th anniversary of the establishment of the Bank
  January 9, 2014    Awarded “2014 Grand Award for Customer Service”
  February 21, 2014    Awarded Grand Prize for “Republic of Korea Top Bank”
  March 26, 2014    The Bank re-selected as “the main bank for the City of Seoul”
  April 1, 2014    Established business agreement with Ministry of Health and Welfare for promotion of philanthropic culture

 

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  April 17, 2014    Woori Short Term National/Public Bond Fund reached KRW 100 billion in commitments
  April 24, 2014    Became the First domestic bank to issue Basel III subordinated debt in foreign currency (USD 1 billion)
  May 21, 2014    Awarded “Korea’s Top Bank in Money Management” by Asian Banker in 2014
  July 28, 2014    The Bank’s board of directors approves the merger between Woori Finance Holdings and Woori Bank (the “Merger”)
  September 30, 2014    The KDIC announced the sale of the controlling stake (30%) in Woori Bank
  October 10, 2014    The first Korean bank to issue Yuan-denominated bonds
  November 1, 2014    Woori Finance Holdings merged with and into the Bank
  November 10, 2014    Opened office in Vladivostok, Russia
  December 30, 2014    Inaugurated the 49th President of the Bank, Kwang-Goo Lee
     Awarded final approval to merge PT. Bank Woori Indonesia with Saudara Bank
  February 26, 2015    PT. Bank Woori Saudara Indonesia officially launched
  March 31, 2015    Commemoration of the 100 year partnership between Woori Bank and Seoul Metropolitan Government
  May 26, 2015    Launched mobile-only bank, WiBee Bank
     WiBee Bank mobile loan products released
  August 20, 2015    Launched Woori-Samsung Pay Service
  September 19, 2015    Launched first overseas service of WiBee Bank, ‘WiBee Bank Cambodia’
  November 29, 2015    K-Bank is selected as the first internet-only bank (Woori Bank stake 10%)
  January 6, 2016    Launched 1st bank mobile messenger service, WibeeTalk
  June 24, 2016    First Korean Bank to launch offshore Won-Yuan clearing services
  September 21, 2016    Successfully issued $500 million foreign currency denominated contingent convertible bonds, the first in the form of perpetual bonds in Korea

 

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  November 13, 2016    The FSC announced the KDIC’s successful privatization efforts through the sales of a combined 29.7% ownership interest in Woori Bank to seven financial companies
  December 8, 2016    Selected as 2016 Top Bank of Korea by British magazine “The Bankers”
  December 27, 2016    Achievement of an overseas network comprising 250 branches
  December 28, 2016    The number of users of WiBee platforms, WiBee Talk and WiBee Members, exceeds 3 million
  January 12, 2017    Selected as the 2016 Best Korean Wealth Management Provider by British magazine “World Finance”
  January 16, 2017    Opened Gurgaon Branch, India
  February 5, 2017    Opened office in Katowice, Poland, the first among Korean banks
  March 28, 2017    Launched SORi, the first voice recognition AI banking service in Korea
  June 8, 2017    Awarded “Best Transaction Bank” and “Top Bank in Money Management” by Asian Banker
  June 21, 2017    Launched overseas remittance service with an Indonesian telecommunications company, the first in the Korean financial sector
  June 28, 2017    Received a Presidential Citation for “social enterprise fosterage” from the Ministry of Employment and Labor, the sole recipient from the Korean financial sector.
  July 12, 2017    Joint declaration to create jobs by management and labor force for the first time in the Korean financial sector
  September 8, 2017    Woori Bank Vietnam launched a local credit card in collaboration with Woori Card

 

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Table of Contents
b. Affiliated Companies

 

  (1) Overview of Business Group

 

  1. Name of business group: Woori Bank

 

  (2) Affiliated companies within the business group

As of September 30, 2017

 

Type

  

Name of Company

  

Equity ownership

   Controlling
Company
     Notes  
Company    *Woori Bank    —        —          —    

First Tier Subsidiaries

   Woori Card    100.00%   

 

Woori Bank

 

  

 

18 companies

 

   *Woori Investment Bank    58.15%      
   Woori FIS    100.00%      
   Woori Private Equity Asset Management    100.00%      
   Woori Finance Research Institute    100.00%      
   Woori Credit Information    100.00%      
   Woori Fund Services    100.00%      
   Korea BTL Infrastructure Fund    99.87%      
   Woori America Bank    100.00%      
   *PT. Bank Woori Saudara Indonesia    79.88%      
   AO Woori Bank    (1share) 100.00%      
   Woori Bank China Limited    100.00%      
   Woori Bank Brasil    (1share) 100.00%      
   Woori Finance Cambodia    100.00%      
   Woori Finance Myanmar    100.00%      
   Woori Wealth Bank Philippines    51.00%      
   Woori Bank Vietnam    100.00%      
   Woori Global Markets Asia Ltd.    100.00%      
Second Tier Subsidiaries    **Woori Blackstone Korea Opportunity Private Equity Fund No.1    —       

Woori Private
Equity Asset
Management
 
 
 
     3 companies  
   **Woori Columbus Private Equity Fund No.1    —        
   TUTU Finance-WCI Myanmar    100.00%      Woori Card     

 

* Listed Companies (3) : Woori Bank, Woori Investment Bank and PT. Bank Woori Saudara Indonesia
** Liquidation has been completed, and as of September 30, 2017, equity ownership is 0% but entity is included as an affiliated company due to incomplete dissolution.
Note) Dissolution of Woori Private Equity Fund was completed as of July 6, 2017, and the entity is excluded from the affiliated companies

 

2. Capital Structure (Changes in Capital)

 

As of September 30, 2017    (units: Won, shares)

Date

  

Category

   Stock Decrease/Increase
      Type      Quantity      Par Value      Issue price     

Note

4.1.2013    Capital reduction with compensation      Common        153,797,130        5,000        5,000      Capital reduction due to spin off of credit card business
4.1.2013    Capital reduction with compensation      Preferred        15,469,070        5,000        10,000      Capital reduction due to spin off of credit card business
6.5.2013    Exercise of conversion rights      Common        54,530,930        5,000        10,000      Reduction in preferred shares due to exercise of rights to convert convertible preferred shares
6.5.2013    Exercise of conversion rights      Preferred        54,530,930        5,000        10,000      Increase in common shares due to exercise of rights to convert convertible preferred shares

11.3.2014

   —        Common        596,690,380        5,000        5,000      Capital reduction due to the merger with Woori Finance Holdings *
11.3.2014    —        Common        676,278,371        5,000        5,000      Increase in common shares (new issuance of shares) due to the merger with Woori Finance Holdings *
10.2.2015    —        Common        278,371        5,000        —        Retirement of shares**

 

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* Upon consummation of the merger with Woori Finance Holdings, 596,690,380 shares of the Bank were cancelled and 676,278,371 shares were newly issued according to the merger ratio.
** On October 2, 2015, 278,371 shares were retired and the total number of shares issued changed to 676,000,000 shares. There was no decrease to Woori Bank’s capital as the number of outstanding shares remained the same. [Related Disclosure : Report on Form 6-K submitted by Woori Bank on September 11, 2015, entitled “Resolution Relating to Retirement of Shares”]

 

3. Total Number of Authorized Shares

As of September 30, 2017

 

        (unit: shares

Items

   Type  
   Common Shares      Total  

Total number of shares authorized

     5,000,000,000        5,000,000,000  

Total number of shares issued to date

     676,000,000        676,000,000  

Number of treasury shares

     2,728,774        2,728,774  

Number of outstanding shares

     673,271,226        673,271,226  

 

* Upon consummation of the merger with Woori Finance Holdings, 596,690,380 shares of the Bank were cancelled and 676,278,371 shares were newly issued according to the merger ratio.
* On September 30, 2015 Woori Bank terminated its trust agreement and acquired 2,913,155 treasury shares which were deposited into Woori Bank’s treasury share account. On October 2, 2015, 278,371 of such acquired shares were retired. [Related Disclosure : Report on Form 6-K submitted by Woori Bank on September 11, 2015, entitled “Resolution Relating to Retirement of Shares”]

 

4. Voting Rights

As of September 30, 2017

 

           (unit: shares

Items

     Number of stock      Notes  

Total number of shares issued

     Common Shares        676,000,000        —    
     Preferred Shares        —          —    

Number of shares without voting rights

     Common Shares        2,728,774        Note 1
     Preferred Shares        —          —    

Number of shares for which voting rights are excluded pursuant to the articles of incorporation

     Common Shares        —          —    
     Preferred Shares        —          —    

Number of shares for which voting rights are limited by law

     Common Shares        2,661,978        Note 2
     Preferred Shares        —          —    

Number of shares for which voting rights have been restored

     Common Shares        —          —    
     Preferred Shares        —          —    

Number of shares for which voting rights may be exercised

     Common Shares        670,609,248        —    
     Preferred Shares        —          —    

 

Note1)  The shares without voting rights are treasury shares. Please see “I. Introduction of the Bank- 3. Total Number of Authorized shares.”
Note2)  Pursuant to Article 16-2(2) of the Banking Act, a non-financial business operator is restricted from exercising voting rights in excess of 4% of the total number of outstanding voting shares of a bank at the AGM held on March 24, 2017

 

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5. Dividend Information

 

Items

     3Q 2017      2016      2015  

Par value per share (Won)

 

     5,000        5,000        5,000  

Net profit (Millions of Won)

 

     1,378,507        1,261,266        1,059,157  

Earnings per share (Won)

 

     1,855        1,567        1,301  

Total cash dividends (Millions of Won)

 

     67,327        269,308        336,636  

Total stock dividends (Millions of Won)

 

     —          —          —    

Cash dividend payout ratio (%)

 

     4.88        21.35        31.80  

Cash dividend yield (%)

     Common Shares        0.57        3.01        5.50  
     Preferred Shares        —          —          —    

Stock dividend yield (%)

     Common Shares        —          —          —    
     Preferred Shares        —          —          —    

Cash dividend per share (Won)

     Common Shares        100        400        500  
     Preferred Shares        —          —          —    

Stock dividend per share (Won)

     Common Shares        —          —          —    
     Preferred Shares        —          —          —    

 

* Based on K-IFRS consolidated financial statements
* 2015 figures include the interim dividend amount (Interim cash dividend per share : 250 Won, Total cash dividends : 168,318 million Won)

 

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Table of Contents
II. Business Overview

 

1. Results of Operations

As of September 30, 2017

 

        (unit: in 100 millions of Won)  

Type

   3Q 2017      3Q
2016
     2016      2015  

Operating income

     18,019        13,892        15,742        13,516  

Non-operating income

     1,766        1,001        1,690        3,140  

Non-operating expenses

     1,770        1,300        1,898        2,136  

Ordinary profits

     18,016        13,594        15,534        14,519  

Income from continuing operations before income tax

     18,016        13,594        15,534        14,519  

Income tax expense from continuing operations

     4,091        2,422        2,759        3,766  

Income from discontinued operations

     —          —          —          —    

Net income

     13,924        11,172        12,775        10,754  

 

* Based on K- IFRS consolidated financial statements

 

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2. Business Performance by Operation

 

a. Deposit Services

As of September 30, 2017

 

           (unit: in millions of Won)  

Type

     3Q 2017      2016      2015  

Deposits received in local currency

     Demand deposits        8,760,841        9,491,680        9,728,839  
     Savings deposits        188,292,047        183,723,169        175,598,100  
     Mutual funds        34,821        37,128        40,888  
     Subtotal        197,087,709        193,251,977        185,367,827  

Deposits received in foreign currencies

 

     20,831,057        21,452,943        19,129,193  

CDs

 

     5,738,288        3,808,856        2,417,790  

Money trusts

 

     1,379,903        1,360,176        1,304,268  

Other deposits received

 

     1,307,275        1,146,459        922,749  
     

 

 

    

 

 

    

 

 

 

Total

 

     226,344,233        221,020,411        209,141,826  
     

 

 

    

 

 

    

 

 

 

 

* Based on K- IFRS consolidated financial statements
* Present value discounts are reflected in the relevant accounts

 

b. Loan Services

Balances of Loans by Type

As of September 30, 2017

 

        (unit: in millions of Won)  

Type

   3Q 2017      2016      2015  

Loans in local currency

     196,803,960        191,309,481        185,154,851  

Loans in foreign currencies

     16,449,300        17,855,868        17,910,253  

Guarantee payments

     24,947        25,197        44,242  
  

 

 

    

 

 

    

 

 

 

Total

     213,278,206        209,190,547        203,109,346  
  

 

 

    

 

 

    

 

 

 

 

* Based on K- IFRS consolidated financial statements
* Loans in foreign currencies includes domestic banker’s letter of credit (usance)

 

c. Trust Business

As of September 30, 2017

 

              (unit: in millions of Won)  

Type

   3Q 2017      2016      2015  
   Trust Funds      Trust Fees      Trust Funds      Trust Fees      Trust Funds      Trust Fees  

Money trust

     29,908,492        102,391        26,019,180        73,814        23,980,475        49,973  

Property trust

     13,264,829        3,313        12,714,338        4,803        9,354,003        1,323  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     43,173,321        105,704        38,733,518        78,617        33,334,478        51,296  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

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* Trust funds indicate average balances.

 

3. Funding Sources and Use of Funds

 

a. Sources of Funds

[Bank Accounts]

 

                        (Unit: in millions of Won, %)  

Classification

  

Funding
Source

   3Q 2017      2016      2015  
      Average
Balance
     Interest
Rate
     Proportion      Average
Balance
     Interest
Rate
     Proportion      Average
Balance
     Interest
Rate
     Proportion  

Local currency funds

   Deposits received in local currency      186,645,181        1.26        66.18        183,440,285        1.38        65.35        169,919,620        1.70        64.76  
   Certificates of deposit      4,443,968        1.64        1.58        3,466,223        1.70        1.23        1,879,832        1.92        0.72  
   Borrowings in local currency      6,255,375        1.32        2.22        6,709,080        1.45        2.39        6,689,135        1.77        2.55  
   Call money in local currency      1,385,826        1.21        0.49        1,159,188        1.32        0.41        1,370,253        1.62        0.52  
   Others      19,660,140        2.30        6.97        18,532,241        2.60        6.60        18,944,493        2.95        7.22  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  

Subtotal

     218,390,490        1.36        77.44        213,307,017        1.50        75.98        198,803,334        1.82        75.77  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Foreign currency funds

   Deposits received in foreign currencies      14,007,690        0.50        4.97        14,838,684        0.47        5.29        11,568,322        0.44        4.41  
   Borrowings in foreign currencies      7,126,114        1.33        2.53        8,595,575        0.86        3.06        9,245,073        0.53        3.52  
   Call money in foreign currencies      1,145,967        1.13        0.41        1,401,294        0.70        0.50        1,199,484        0.53        0.46  
   Debentures in foreign currencies      3,653,810        3.06        1.30        3,950,614        2.54        1.41        4,851,289        2.72        1.85  
   Others      535,023        0.12        0.19        531,877        0.29        0.19        650,409        0.66        0.25  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   Subtotal      26,468,603        1.09        9.39        29,318,044        0.87        10.44        27,514,577        0.88        10.49  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Others

   Total capital      20,026,668        —          7.10        19,617,484        —          6.99        18,501,137        —          7.05  
   Provisions      351,135        —          0.12        412,553        —          0.15        640,666        —          0.24  
   Others      16,772,854        —          5.95        18,070,427        —          6.44        16,907,843        —          6.44  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   Subtotal      37,150,656        —          13.17        38,100,463        —          13.57        36,049,647        —          13.74  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     282,009,749        1.16        100.00        280,725,524        1.23        100.00        262,367,557        1.47        100.00  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

* Based on K-IFRS separate financial statements

 

14


Table of Contents

[Trust Accounts]

 

                        (Unit: in millions of Won, %)  

Type

  

Funding Source

   3Q 2017      2016      2015  
      Average
Balance
     Interest
Rate
     Share      Average
Balance
     Interest
Rate
     Share      Average
Balance
     Interest
Rate
     Share  

Cost

   Money trusts      29,908,492        1.70        69.10        26,019,180        1.52        66.98        23,980,475        1.88        71.71  
   Borrowings      —          0.00        0.00        0        0.00        0.00        0        0.00        0.00  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  

Subtotal

     29,908,492        1.70        69.10        26,019,180        1.52        66.98        23,980,475        1.88        71.71  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Non-cost

   Property trusts      13,264,829        —          30.65        12,714,338        —          32.73        9,354,003        —          27.97  
   Special reserves      39,075        —          0.09        38,160        —          0.10        37,989        —          0.11  
   Others      71,295        —          0.16        72,810        —          0.19        70,265        —          0.21  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  

Subtotal

     13,375,199        —          30.90        12,825,308        —          33.02        9,462,257        —          28.29  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     43,283,691        —          100.00        38,844,488        —          100.00        33,442,732        —          100.00  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

15


Table of Contents
b. Fund Management Performance

[Bank Accounts]

 

                     (Unit: in millions of Won, %)  

Type

  

Managed Item

  3Q 2017     2016     2015  
     Average
Balance
    Interest
Rate
    Share     Average
Balance
    Interest
Rate
    Share     Average
Balance
    Interest
Rate
     Share  

Local currency funds

   Deposits in local currency     3,361,553       1.27       1.19       3,171,599       1.34       1.13       2,580,842       1.72        0.98  
   Marketable securities in local currency     35,550,641       2.04       12.61       33,880,119       2.58       12.07       32,994,958       2.79        12.58  
   Loans in local currency     193,086,404       3.05       68.47       189,079,324       3.10       67.35       176,631,188       3.42        67.32  
   Guarantee payments     27,651       1.48       0.01       51,254       0.89       0.02       64,533       1.89        0.02  
   Call loans in local currency     2,597,256       1.31       0.92       3,581,382       1.41       1.28       2,083,053       1.64        0.79  
   Private placed bonds     193,568       5.79       0.07       247,292       5.19       0.09       280,702       5.98        0.11  
   Credit card receivables     38       —         0.00       24       —         0.00       —         —          —    
   Others     3,808,795       2.01       1.35       4,580,215       2.04       1.63       4,313,781       2.61        1.64  
   Bad debt expense in local currency (-)     (1,313,927     —         (0.47     (1,925,177     —         (0.69     (2,482,955     —          (0.95 )  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 
   Subtotal     237,311,978       2.86       84.15       232,666,033       2.98       82.88       216,466,103       3.31        82.50  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Foreign currency funds

   Deposits in foreign currencies     3,739,725       0.73       1.33       3,761,286       0.43       1.34       2,872,735       0.28        1.09  
   Marketable securities in foreign currencies     2,534,366       1.11       0.90       1,752,884       1.13       0.62       1,375,146       1.51        0.52  
   Loans in foreign currencies     10,893,427       2.45       3.86       13,371,873       1.95       4.76       14,206,736       1.65        5.41  
   Call loans in foreign currencies     2,417,425       1.19       0.86       2,940,858       0.85       1.05       2,040,819       0.59        0.78  
   Bills bought     7,205,063       1.81       2.55       7,110,164       1.53       2.53       6,899,811       1.38        2.63  
   Others     48,632       2.27       0.02       13,829       9.72       0.00       17,047       6.96        0.01  
   Bad debt expense in foreign currencies (-)     (324,727     —         (0.12     (312,211     —         (0.11     (191,224     —          (0.07 )  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 
   Subtotal l     26,513,912       1.82       9.40       28,638,685       1.51       10.20       27,221,069       1.37        10.38  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Others

   Cash     1,185,379       —         0.42       1,169,566       —         0.42       1,116,715       —          0.43  
   Property and equipment for business purposes     2,345,333       —         0.83       2,325,893       —         0.83       2,328,130       —          0.89  
   Others     14,653,148       —         5.20       15,925,347       —         5.67       15,235,540       —          5.81  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 
   Subtotal     18,183,859       —         6.45       19,420,807       —         6.92       18,680,385       —          7.12  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total

    282,009,749       2.58       100.00       280,725,524       2.62       100.00       262,367,557       2.87        100.00  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

* Based on K-IFRS separate financial statements

 

16


Table of Contents

[Trust Accounts]

 

                       (Unit: in millions of Won, %)  

Type

   Managed Item   3Q 2017      2016      2015  
     Average
Balance
    Interest
Rate
     Share      Average
Balance
    Interest
Rate
     Share      Average
Balance
    Interest
Rate
    Share  

Profit

   Loans     26,854       3.59        0.06        23,088       4.21        0.06        19,482       4.05       0.06  
   Securities     7,592,321       3.31        17.54        4,701,052       1.93        12.10        3,470,064       (0.57     10.38  
   Other     23,161,530       1.46        53.51        22,237,766       1.63        57.25        21,231,787       2.00       63.49  
   Reserves
for bond
ratings
(-)
    (42     0.00        0.00        (36     0.00        0.00        (68 )       0.00       0.00  
   Present
value
discount
(-)
    (86     0.00        0.00        (215     0.00        0.00        (414 )       0.00       0.00  
   Subtotal     30,780,577       1.92        71.11        26,961,655       1.68        69.41        24,720,851       1.64       73.92  

Non-profit

   Subtotal     12,503,114       —          28.89        11,882,833       —          30.59        8,721,881       —         26.08  
    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total

    43,283,691       —          100.00        33,442,732       —          100.00        29,994,637                100.00  
    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

4. Other Information Necessary for Making Investment Decisions

 

a. Selected Ratios

BIS Capital Adequacy Ratios

 

 

                 (unit: in 100 millions of Won)  

Type

   3Q 2017     2016     2015  

Equity capital (A)

     229,406       229,005       210,514  

Risk weighted assets (B)

     1,509,550       1,497,281       1,540,709  

Capital adequacy ratio (A/B)

     15.20     15.29     13.66

 

* Based on Basel III standards
* Based on K-IFRS consolidated financial statements

Liquidity Ratios

 

     (unit: %)  

Type

   3Q 2017      2016      2015  

Liquidity coverage ratio (LCR)

     102.29        109.61        106.67  

Foreign currency liquidity coverage ratio(LCR) **

     108.79        —          —    

Ratio of business purpose premises and equipment

     13.34        13.49        14.37  

 

* Based on K-IFRS consolidated financial statements
* 3Q 2017 figures are based on the applicable monthly average balance, 2016 and 2015 figures are based on ending balances.
** Foreign currency liquidity coverage ratio : Enforced starting year 2017 (currently required to be 60% or greater, which will annually increase 10% to be 80% or greater in 2019.)

 

17


Table of Contents
b. Asset Quality

 

                      (unit: in 100 millions of Won)  

Type

   3Q 2017     2016     2015  

Total loans

   Total      2,196,681       2,166,122       2,108,424  
   Corporate      1,152,344       1,140,252       1,185,857  
   Household      1,044,337       1,025,870       922,567  

Sub-standard and
below loans

Sub-standard and below
loan ratio

   Total      16,096       21,121       31,009  
  

Corporate

     0.73     0.98 %       1.47
        13,510       18,237       27,701  
        1.17     1.60     2.34
   Household      2,586       2,884       3,308  
        0.25     0.28     0.36

Delinquency ratio

  

Based on total loans

(after seasonal adjustment)

     0.38     0.46     0.82
  

Based on corporate loans

(after seasonal adjustment)

     (0.39 %)      (0.52 %)      (0.93 %) 
        0.52     0.61     1.39
        (0.54 %)      (0.66 %)      (1.57 %) 
  

Based on household loans

(after seasonal adjustment)

     0.30     0.31     0.39
        (0.31 %)      (0.33 %)      (0.43 %) 

 

* Based on K-IFRS separate financial statements

 

c. Recent Developments

On November 1, 2014, the Bank merged with its holding company, Woori Finance Holdings, according to the resolution of the board of directors on July 28, 2014, to maximize the possibility of a successful privatization.

New shares of the Bank, the surviving entity, were allotted and delivered to the shareholders of Woori Finance Holdings based on a 1:1.00000000 ratio.

Upon the consummation of the merger, 596,690,380 shares of the Bank were cancelled and 676,278,371 new shares were issued.

The major terms of the Merger are as follows:

 

Item

  

Details

    
Method of Merger    Merger of parent company with and into wholly-owned subsidiary   
Merging entities    Woori Bank (surviving entity)   
   Woori Finance Holdings (non-surviving entity)   
New shares issued in Merger    676,278,371 common shares   
Schedule of the Merger    Date of the Merger    November 1, 2014
   Date of registration of Merger    November 3, 2014
   Delivery of share certificates    November 18, 2014
   Date of new listing of shares    November 19, 2014

 

18


Table of Contents
III. Financial Information

 

1. Condensed Financial Statements (Consolidated)

Summary Consolidated Statement of Financial Position

(The Bank and its Consolidated Subsidiaries)

(unit: in millions of Won)

Classification

   3Q 2017     2016     2015  

ASSETS

      

Cash and cash equivalents

     6,812,489       7,591,324       6,644,055  

Financial assets at fair value through profit or loss

     4,609,487       5,650,724       5,132,657  

Available-for-sale financial assets

     18,624,588       20,817,583       17,170,592  

Held-to-maturity financial assets

     16,325,482       13,910,251       13,621,640  

Loans and receivables

     266,972,072       258,392,633       244,842,062  

Investments in joint ventures and associates

     557,860       439,012       643,861  

Investment properties

     361,355       358,497       351,496  

Premises and equipment

     2,490,725       2,458,025       2,471,206  

Intangible assets and goodwill

     524,914       483,739       419,806  

Assets held for sale

     2,909       2,342       17,904  

Current tax assets

     4,105       6,229       6,782  

Deferred tax assets

     258,031       232,007       210,597  

Derivative assets

     109,828       140,577       183,128  

Net defined benefit assets

     5,934       70,938       —    

Other assets

     215,383       128,846       143,286  
  

 

 

   

 

 

   

 

 

 

Total assets

     317,875,162       310,682,727       291,859,072  
  

 

 

   

 

 

   

 

 

 

LIABILITIES

      

Financial liabilities at fair value through profit or loss

     2,468,106       3,803,358       3,460,561  

Deposits due to customers

     226,344,233       221,020,411       209,141,826  

Borrowings

     16,314,499       18,769,515       20,033,917  

Debentures

     27,537,013       23,565,449       21,898,859  

Provisions

     401,185       428,477       516,601  

Net defined benefit liability

     26,433       64,666       99,691  

Current tax liabilities

     249,960       171,192       108,943  

Deferred tax liabilities

     22,303       22,023       19,379  

Derivative liabilities

     41,619       7,221       —    

Other financial liabilities

     23,529,630       21,985,086       16,964,206  

Other liabilities

     323,213       299,376       305,174  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     297,258,194       290,136,774       272,549,157  
  

 

 

   

 

 

   

 

 

 

EQUITY

      

Owners’ equity:

     20,450,563       20,386,160       19,188,472  

Capital stock

     3,381,392       3,381,392       3,381,392  

Hybrid securities

     3,017,888       3,574,896       3,334,002  

Capital surplus

     287,066       286,331       294,259  

Other equity

     (1,759,299     (1,468,025     (1,547,303

Retained earnings

     15,523,516       14,611,566       13,726,122  

Non-controlling interests

     166,405       159,793       121,443  
  

 

 

   

 

 

   

 

 

 

Total equity

     20,616,968       20,545,953       19,309,915  
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

     317,875,162       310,682,727       291,859,072  
  

 

 

   

 

 

   

 

 

 
Number of Consolidated Subsidiaries      68       74       71  

 

19


Table of Contents

Summary Consolidated Statement of Comprehensive Income

 

(The Bank and its Consolidated Subsidiaries)    (unit: in millions of Won, except per share amounts)

 

Classification

   3Q 2017     3Q 2016     2016     2015  

OPERATING INCOME:

     1,801,916       1,389,221       1,574,206       1,351,586  

Net interest income

     3,901,876       3,745,200       5,019,544       4,761,900  

Net fees and commissions income

     814,569       709,513       937,131       976,796  

Dividend income

     108,287       137,280       184,510       102,923  

Gain on financial instruments at fair value through profit or loss

     (97,636     (43,766     114,387       240,342  

Gain on available-for-sale financial assets

     148,445       32,772       (1,035     (3,281

Impairment losses due to credit loss

     (501,022     (670,843     (834,076     (966,646

General and administrative expenses

     (2,647,052     (2,411,782     (3,478,476     (3,150,387

Other net operating income (expenses)

     74,449       (109,153     (367,779     (610,061

Non-operating income

     (330     (29,825     (20,817     100,360  

Net income before income tax expense from continuing operations

     1,801,586       1,359,396       1,553,389       1,451,946  

Income tax expense from continuing operations

     409,145       242,217       275,856       376,554  

Net income from continuing operations

     1,392,441       1,117,179       1,277,533       1,075,392  

Net income from discontinued operations

     —         —         —         —    

Net income

     1,392,441       1,117,179       1,277,533       1,075,392  

Net income attributable to owners

     1,378,507       1,105,915       1,261,266       1,059,157  

Profit from continuing operations

     1,378,507       1,105,915       1,261,266       1,059,157  

Profit from discontinued operations

     —         —         —         —    

Net income attributable to the non-controlling interests

     13,934       11,264       16,267       16,235  

Profit from continuing operations

     13,934       11,264       16,267       16,235  

Profit from discontinued operations

     —         —         —         —    

Other comprehensive income (loss), net of tax

     (88,750     (68,145     77,894       31,162  

Items that will not be reclassified to profit or loss

     13,143       (52,788     34,162       (78,267

Items that may be reclassified to profit or loss

     (101,893     (15,357     43,732       109,429  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

     1,303,691       1,049,034       1,355,427       1,106,554  
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to the owners

     1,295,391       1,037,516       1,332,614       1,094,870  

Comprehensive income attributable to non-controlling interests

     8,300       11,518       22,813       11,684  

NET INCOME PER SHARE:

        

Continuing and discontinued operations

        

Basic earnings per common share

     1,855       1,421       1,567       1,301  

Continuing operations

        

Basic earnings per common share

     1,855       1,421       1,567       1,301  

 

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Table of Contents
2. Condensed Financial Statements (Separate)

Summary Statement of Financial Position

 

(The Bank)            (unit: in millions of Won)

 

Classification

   3Q 2017     2016      2015  

ASSETS

       

Cash and cash equivalents

     5,050,978       6,104,029        5,440,326  

Financial assets at fair value through profit or loss

     3,014,346       4,076,872        3,569,625  

Available-for-sale financial assets

     17,482,663       18,105,862        15,869,654  

Held-to-maturity financial assets

     16,216,094       13,792,266        13,527,452  

Loans and receivables

     248,183,210       241,508,048        231,083,160  

Investments in subsidiaries and associates

     4,211,863       3,779,169        3,730,247  

Investment properties

     344,335       348,393        344,892  

Premises and equipment

     2,380,564       2,342,280        2,341,506  

Intangible assets

     296,891       242,230        187,520  

Assets held for sale

     1,979       2,342        17,904  

Current tax assets

     —         —          —    

Deferred tax assets

     195,913       162,211        172,368  

Derivative assets

     109,385       140,577        183,128  

Net defined benefit assets

     5,934       70,938        —    

Other assets

     183,469       96,926        109,126  
  

 

 

   

 

 

    

 

 

 

Total assets

     297,677,624       290,772,143        276,576,908  
  

 

 

   

 

 

    

 

 

 

LIABILITIES

       

Financial liabilities at fair value through profit or loss

     2,456,670       3,793,479        3,448,180  

Deposits due to customers

     215,888,152       211,382,380        201,353,128  

Borrowings

     15,204,833       16,060,821        18,760,947  

Debentures

     21,255,612       18,166,057        17,259,749  

Provisions

     357,000       380,473        467,887  

Net defined benefit liability

     —         —          45,678  

Current tax liabilities

     238,134       148,672        77,190  

Deferred tax liabilities

     —         —          —    

Derivative liabilities

     23,345       7,221        —    

Other financial liabilities

     22,298,777       20,827,284        16,111,469  

Other liabilities

     170,049       153,238        163,362  
  

 

 

   

 

 

    

 

 

 

Total liabilities

     277,892,572       270,919,625        257,687,590  
  

 

 

   

 

 

    

 

 

 

EQUITY

       

Capital stock

     3,381,392       3,381,392        3,381,392  

Hybrid securities

     3,017,888       3,574,896        3,334,002  

Capital surplus

     269,533       269,533        269,533  

Other equity

     (102,193     138,542        106,016  

Retained earnings

     13,218,432       12,488,155        11,798,375  
  

 

 

   

 

 

    

 

 

 

Total equity

     19,785,052       19,852,518        18,889,318  
  

 

 

   

 

 

    

 

 

 

Total liabilities and equity

     297,677,624       290,772,143        276,576,908  
  

 

 

   

 

 

    

 

 

 

 

* The valuation method of our equity interest in subsidiaries, associates and joint ventures is the cost method.

 

21


Table of Contents

Summary Statement of Comprehensive Income

 

(The Bank)                        (unit: in millions of Won, except per share amounts)

 

Classification

   3Q 2017     3Q 2016     2016     2015  

OPERATING INCOME:

     1,530,907       1,148,374       1,270,501       1,090,372  

Net interest income

     3,265,366       3,174,046       4,222,447       4,052,479  

Net fees and commissions income

     706,676       639,914       842,883       856,343  

Dividend income

     110,180       176,184       220,015       169,009  

Gain on financial instruments at fair value through profit or loss

     (94,788     (54,867     97,225       220,282  

Gain on available-for-sale financial assets

     137,449       57,061       35,525       (7,960

Impairment losses due to credit loss

     (336,690     (540,504     (640,443     (766,169

General and administrative expenses

     (2,352,496     (2,159,408     (3,115,371     (2,846,490

Other net non-operating income (expenses)

     95,210       (144,052     (391,780     (587,122

Non-operating income

     11,951       36,394       40,144       144,635  

Net income before income tax expense

     1,542,858       1,184,768       1,310,645       1,235,007  

Income tax expense

     346,024       219,688       245,043       300,418  

Net income from continuing operations

     1,196,834       965,080       1,065,602       934,589  

Net income from discontinued operations

              —         —         —    

Net income

     1,196,834       965,080       1,065,602       934,589  

Other comprehensive income (loss), net of tax

     (32,577 )      (51,244     32,526       (8,583

Items that will not be reclassified to profit or loss

     12,868       (52,105     33,191       (73,591

Items that may be reclassified to profit or loss

     (45,445     861       (665     65,008  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

     1,164,257       913,836       1,098,128       926,006  
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME PER SHARE:

        

Basic and diluted net income per share

     1,585       1,212       1,277       1,116  

 

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Table of Contents
IV. Independent Auditor’s Opinion

 

1. Independent Auditor’s Opinion

 

     3Q 2017    2016    2015

Auditor

   Deloitte Anjin LLC    Deloitte Anjin LLC    Deloitte Anjin LLC

Auditor’s Opinion

   (1)    Unqualified Opinion    Unqualified Opinion

 

(1) In its review report attached to this report, Deloitte Anjin LLC has stated that nothing had come to their attention that caused them to believe that the accompanying consolidated and separate interim financial statements of the Bank are not presented fairly in all material respects, in accordance with Korean IFRS.

 

2. Compensation to the Independent Auditor for the Past Three Years

 

a. Audit Services

 

               (units: Won, hours)  

Term

   Auditor   

Description

   Fee    Total Time  

3Q 2017

   Deloitte Anjin LLC    Closing audit    KRW

1,786 million

     —    
      Interim audit (including internal accounting management system)         —    
      3Q review         4,880 hours  
      1H review         4,061 hours  
      1Q review         4,020 hours  

2016

   Deloitte Anjin LLC    Closing audit    KRW
1,561 million
     7,515 hours  
      Interim audit (including internal accounting management system)         4,210 hours  
      3Q review         4,991 hours  
      1H review         3,526 hours  
      1Q review         3,920 hours  

2015

   Deloitte Anjin LLC    Closing audit    KRW
1,516 million
     7,659 hours  
      Interim audit (including internal accounting management system)         4,350 hours  
      3Q review         3,785 hours  
      1H review         3,836 hours  
      1Q review         3,778 hours  

 

b. Non-Audit Services

 

Term

   Date of
Execution of
Agreement
    

Description of Service

  

Service Term

   Fees

3Q 2017

     Mar. 15, 2017      Tax adjustment    Each quarter and end of term    KRW 120 million
     Mar. 15, 2017      PCAOB and SOX Auditing    May 1, 2017 ~ April 30, 2018    KRW 1,288 million

2016

     Mar. 28, 2016      Tax adjustment    Each quarter and end of term    KRW 115 million
     Mar. 28, 2016      PCAOB and SOX Auditing    May 1, 2016 ~ Apr. 30, 2017    KRW 1,127 million
     Mar. 23, 2016      Issuance of GMTN-related comfort letter    May 2016    USD 100,000

2015

     May 14, 2015      Review of Japanese F/S related to Samurai bonds    May and Sep. 2015    KRW 74 million
     May 14, 2015      Issuance of GMTN-related comfort letter    May 2015    USD 110,000
     Apr. 03, 2015      Tax adjustment    Each quarter and end of term    KRW 110 million
     Apr. 03, 2015      PCAOB and SOX Auditing    May 1, 2015~ Apr. 30, 2016    KRW 1,094 million
     Jan. 05, 2015      Issuance of GMTN-related comfort letter    Jan. 2015    USD 60,000

 

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Table of Contents
V. Corporate Governance and Affiliated Companies

 

1. About the Board of Directors

 

  a. Composition of the Board of Directors

The board of directors consists of standing directors, outside directors and non-standing directors.

 

  b. Committees under the Board of Directors

We currently have the following management committees serving under the board of directors:

 

  (a) Audit Committee

 

  (b) Board of Directors Management Committee

 

  (c) Risk Management Committee

 

  (d) Compensation Committee

 

  (e) Committee for Recommending Officer Candidates

As of September 30, 2017

 

Name of Committee

  

Composition

  

Names of Members

Audit Committee

  

Two outside directors

One standing director

  

Sang-Hoon Shin (outside director)

Dong-Woo Chang (outside director)

Jung-Sik Oh (standing director)

Board of Directors

Management Committee

  

One standing director

Five outside directors

One non-standing director

  

Kwang-Goo Lee (standing director)

Sung-Tae Ro (outside director)

Sang-Hoon Shin (outside director)

Sang-Yong Park (outside director)

Zhiping Tian (outside director)

Dong-Woo Chang (outside director)

Kwang-Woo Choi (non-standing director)

Risk Management Committee

  

Three outside directors

One non-standing director

  

Sung-Tae Ro (outside director)

Sang-Yong Park (outside director)

Zhiping Tian (outside director)

Kwang-Woo Choi (non-standing director)

Compensation Committee

  

Five outside directors

One non-standing director

  

Sung-Tae Ro (outside director)

Sang-Hoon Shin (outside director)

Sang-Yong Park (outside director)

Zhiping Tian (outside director)

Dong-Woo Chang (outside director)

Kwang-Woo Choi (non-standing director)

Committee for recommending audit committee member candidates

  

One standing director

Five outside directors

  

Kwang-Goo Lee (standing director)

Sung-Tae Ro (outside director)

Sang-Hoon Shin (outside director)

Sang-Yong Park (outside director)

Zhiping Tian (outside director)

Dong-Woo Chang (outside director)

 

* Three committees which had previously existed (i.e., Committee for recommending officer candidates, Committee for recommending outside director candidates, Committee for recommending audit committee member candidates) were integrated into a single committee (Committee for recommending officer candidates) through an amendment to the Articles of Incorporation at the EGM held on December 30, 2016 [Related Disclosure : Report on Form 6-K, submitted by Woori Bank on December 30, 2016, entitled “Results of the Extraordinary General Meeting of Shareholders of Woori Bank”]

 

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Table of Contents
2. Affiliated Companies (as of September 30, 2017)

 

LOGO

 

* The liquidation of Woori Blackstone Korea Opportunity Private Equity Fund No. 1 and Woori Columbus Private Equity Fund No. 1 has been completed, and as of September 30, 2017, equity ownership in each entity is 0%; but due to incomplete dissolution, the two entities are included as affiliated companies.

Note) Dissolution of Woori Private Equity Fund was completed as of July 6, 2017, and the entity is excluded from the affiliated companies.

 

25


Table of Contents
VI. Shareholder Information

 

1. Share Distribution

 

a. Share Information of the Largest Shareholder and Specially Related Parties

 

As of September 30, 2017    (units: shares, %)

 

                 Shares Held         
                 Beginning balance      Ending balance         

Name

  

Relation

   Type      Stock      Share      Stock      Share      Notes  

KDIC( Korea Deposit

Insurance Corporation)

  

Largest

Shareholder

     Common        157,977,161        23.37        125,205,147        18.52        —    

Total

     Common        157,977,161        23.37        125,205,147        18.52        —    
     Others        —          —          —          —       

 

b. Changes in the Largest Shareholder

 

As of September 30, 2017    (units: shares, %)

 

Change of Date

  

Largest Shareholder

   Stock Held      Share     

Notes

January 1, 2014

   Woori Finance Holdings      596,690,380        100.00     

November 1, 2014

   KDIC      385,285,578        *56.79     

Merger date of

Woori Finance Holdings and Woori Bank

December 8, 2014

   KDIC      345,142,556        51.04      Sale of stake

October 2, 2015

   KDIC      345,142,556        51.06     

Change in the share ownership ratio

due to the retirement of shares

December 1, 2016

   KDIC      239,097,161        35.37     

Sales of stakes to

Tongyang Life Insurance,

Eugene Asset Management,

Mirae Asset Global Investments and Korea Investment & Securities

December 8, 2016

   KDIC      185,017,161        27.37     

Sales of stakes to

Kiwoom Securities and

Hanwha Life Insurance

December 14, 2016

   KDIC      157,977,161        23.37      Sale of stake to IMM PE

January 31, 2017

   KDIC      144,457,161        21.37      Sale of stake to IMM PE

May 11, 2017

   KDIC      143,857,161        21.28      Exercise of Shinhan Investment Corp.’s call option (0.09%)

June 16, 2017

   KDIC      132,897,007        19.66      Exercise of call option of Employee Stock Ownership Association of Woori Bank (1.62%)

June 22, 2017

   KDIC      131,697,007        19.48      Exercise of NH Investment & Securities’ call option (0.18%)

June 27, 2017

   KDIC      130,697,007        19.33      Exercise of NH Investment & Securities’ call option (0.15%)

June 28, 2017

   KDIC      128,185,796        18.96      Exercise of NH Investment & Securities’ call option ( 0.37%)

July 3, 2017

   KDIC      126,935,796        18.78      Exercise of Hyosung Capital’s call option (0.18%)

September 28, 2017

   KDIC      125,205,147        18.52      Exercise of call option of Employee Stock Ownership Association of Woori Bank (0.26%)

 

Note) KDIC : Korea Deposit Insurance Corporation
* Upon the consummation of the merger of Woori Finance Holdings with and into Woori Bank on November 1, 2014, 596,690,380 shares of the Bank were cancelled and 676,278,371 new shares were issued.

 

26


Table of Contents
c. Share Ownership of More Than 5%

 

As of September 30, 2017 (unless otherwise indicated)           (units: shares, %)  

Name

   Shares     Notes  
   No. of shares      Percentage of shareholding    

Korea Deposit Insurance Corporation

     125,205,147        18.52  

National Pension Service

     63,902,005        9.45     Note1

Nobis1, Inc. (IMM PE)

     40,560,000        6.00     —    

Employee Stock Ownership Association

     36,153,488        5.35     Note2

Note1) Based on the disclosure of NPS (National Pension Service) on October 10, 2017, as of July 20, 2017, which may differ from the current actual number of shares

Note2) Based on the account of the Employee Stock Ownership Association (the total of all members)

 

2. Stock Price and Stock Market Performance

 

a. Domestic Stock Market

 

                                 (units: Won, shares)  

Type

   April
2017
     May
2017
     June
2017
     July
2017
     August
2017
     September
2017
 

Common Stock

   High      15,000        16,350        18,600        19,950        19,200        18,550  
   Low      13,050        14,850        15,300        18,350        18,200        17,050  
   Average      14,060        15,528        16,995        18,788        18,655        17,648  

Monthly Trade Volume

   High      3,298,803        3,958,143        13,105,480        3,304,943        6,655,577        2,954,925  
   Low      974,506        732,429        1,153,280        896,910        629,366        907,532  
   Monthly Total      31,127,285        33,003,973        65,580,274        36,423,732        36,919,458        31,593,313  

 

* Source: KRX KOSPI Market
* Share prices are based on closing prices.

 

b. Foreign Stock Market (NYSE)

 

                          (units: US Dollars, Won, ADRs)  

Type

   April
2017
     May
2017
     June
2017
     July
2017
     August
2017
     September
2017
 

ADR

   High      40.28        43.81        48.70        53.50        51.85        49.53  
   Low      35.21        39.74        41.50        48.25        47.80        44.49  
   Average      37.12        41.50        45.17        50.15        49.72        46.31  

Won Conversion

   High      45,536        49,702        55,498        59,711        58,170        55,760  
   Low      39,410        44,934        46,554        55,453        54,238        50,340  
   Average      42,055        46,709        51,052        56,892        56,225        52,405  

Monthly Trade Volume

   High      17,800        17,500        13,400        65,900        40,800        38,500  
   Low      1,200        1,300        2,000        2,600        3,100        5,600  
   Monthly Total      73,300        181,200        125,500        293,200        314,500        305,600  

 

* Source: standard trading rate (daily and monthly average) (Seoul Money Brokerage, www.smbs.biz)
* One ADR represents three common shares.
* Share prices are based on closing prices.

 

27


Table of Contents
VII. Directors and Employee Information

 

1. Directors

As of September 30, 2017

 

Position

   Name    Common
Stock
Owned
     Expiration of Term

President & CEO

   Registered    Standing    Kwang-Goo Lee      26,251      Note 1 )

Standing Member of

Audit Committee

   Registered    Standing    Jung-Sik Oh      1,350      Note 1 )

Outside Director

   Registered    Non-Standing    Sung-Tae Ro      —        December 30, 2018

Outside Director

   Registered    Non-Standing    Sang-Hoon Shin      10,000      December 30, 2018

Outside Director

   Registered    Non-Standing    Sang-Yong Park      —        December 30, 2018

Outside Director

   Registered    Non-Standing    Zhiping Tian      —        December 30, 2018

Outside Director

   Registered    Non-Standing    Dong-Woo Chang      —        December 30, 2018

Non-standing Director

   Registered    Non-Standing    Kwang-Woo Choi      —        Note 2)

Executive Vice President

   Non-Registered    Standing    Ki-Myung Nam      8,168      December 8, 2017

Executive Vice President

   Non-Registered    Standing    Tae-Seung Sohn      23,127      December 8, 2017

Executive Vice President

   Non-Registered    Standing    Won-Jai Jeong      13,560      December 8, 2018

Executive Vice President

   Non-Registered    Standing    Hong-Hee Kim      21,940      December 8, 2017

Executive Vice President

   Non-Registered    Standing    Jung-Hoon Choi      21,649      December 3, 2017

Executive Vice President

   Non-Registered    Standing    Jae-Hyun Cho      12,000      December 8, 2017

Executive Vice President

   Non-Registered    Standing    Seong-Il Park      15,914      December 8, 2017

Executive Vice President

   Non-Registered    Standing    Sun-Kyu Kim      15,425      December 8, 2017

Executive Vice President

   Non-Registered    Standing    Hyun-Seok Shin      17,525      December 8, 2017

Executive Vice President

   Non-Registered    Standing    An-Ho Jang      21,526      December 8, 2017

Executive Vice President

   Non-Registered    Standing    Woon-Haeng Cho      27,345      December 8, 2017

Executive Vice President

   Non-Registered    Standing    Kwang-Seok Kwon      8,057      December 8, 2017

Managing Director

   Non-Registered    Standing    Yeong-Bae Kim      9,963      December 3, 2017

Managing Director

   Non-Registered    Standing    Jeong-Jin Heo      13,983      December 3, 2017

Managing Director

   Non-Registered    Standing    Dong-Yeon Lee      16,434      December 3, 2017

Managing Director

   Non-Registered    Standing    Hyun-Poong Hong      8,110      December 8, 2018

Managing Director

   Non-Registered    Standing    Tae-Joong Ha      12,497      December 8, 2018

Managing Director

   Non-Registered    Standing    Chai-Pong Cheong      12,144      December 8, 2018

Managing Director

   Non-Registered    Standing    Jong-In Lee      12,467      December 8, 2018

Managing Director

   Non-Registered    Standing    Won-Duk Lee      —        December 8, 2018

Managing Director

   Non-Registered    Standing    Chang-Jae Lee      15,938      December 8, 2018

Managing Director

   Non-Registered    Standing    Jeong-Ki Kim      26,281      December 8, 2018

Managing Director

   Non-Registered    Standing    Dae-Jin Lee      27,625      December 8, 2018

Note 1) End of Term : The end of the AGM to be held in Mar. 2019

Note 2) End of Term : The end of the AGM to be held in Mar. 2018

 

28


Table of Contents
2. Employee Status

 

As of September 30, 2017    (units: persons, millions of Won)

 

     Number of Employees      Average
Tenure
Years
     Total
Compensation
     Average
Compensation

Per Person
     Note  
     Regular      Contract      Total              
     Total      (Short time
worker)
     Total      (Short time
worker)
                

Total

     14,299        209        664        122        14,963        16.4        1,040,028        70        Note1
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

* Average years of continuous service excludes contract employees and locally hired employees overseas.
* Excludes management salaries (sales center head or higher) and overseas salaries.

Note 1) When excluding amounts that were determined in 2016 but paid in 1Q 2017, total compensation is KRW 962,622 million (Average compensation per person is KRW 64 million)

 

3. Directors’ Compensation

 

As of September 30, 2017    (units: persons, millions of Won)

 

Items

   Number of
Persons
     Total
Compensation
     Average
Compensation

Per Director
     Note  

Registered Directors (excludes outside directors and audit committee members)

     2        775        388        —    

Outside Directors (excludes audit committee members)

     3        147        49        —    

Audit Committee Members

     4        487        122        —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     9        1,409        157            
  

 

 

    

 

 

    

 

 

    

 

 

 

 

* Number of persons includes the outside directors and audit committee members that resigned in 2017 (as of September 30, 2017, there are two registered directors, three outside directors and three members of the Audit Committee)
* There is no compensation paid to the non-standing director from the KDIC, who has been excluded from the number of persons
* Total compensation equals the aggregate amount paid from January to September of 2017

 

VIII. Related Party Transactions

Extensions of Credit to Major Shareholders, Etc.

 

As of September 30, 2017    (unit: millions of Won)

 

Name

   Item    Current
Balance
   Origination
Date
   Maturity
Date

Korea Deposit Insurance Corporation

   Loans        250,000    August 29, 2016    August 28, 2018
   Loans        500,000    August 29, 2016    August 28, 2018
   Bonds        49,993    January 22, 2013, etc.    January 22, 2018, etc.

Woori Investment Bank

   Loans        25,000    March 10, 2016    March 2, 2018
   CMA        100,000    July 1, 2017    June 30, 2018

Woori Card

   Loans        250,000    April 1, 2013    March 2, 2018

Woori P&S

   Loans        14,289    May 25, 2016    May 25, 2026

 

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Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Woori Bank
  (Registrant)
Date: November 14, 2017   By: /s/ Hyun Seok Shin
  (Signature)
  Name : Hyun Seok Shin
  Title : Executive Vice President

 

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