Woori Finance returns to profit in 2nd quarter

 Woori Finance returned to profit in the second quarter on a sharp rise in non-interest income.

Net profit came to 791 billion won or US$752 million in the April-June period, a sharp turnaround from a net loss of 338 billion won a year earlier, the group said.

However, revenue fell 17.2 percent on-year to 8.6 trillion won, and operating profit came in at 1.21 trillion won, a turnaround from a 355.8 billion won operating loss a year earlier.

In the first half of the year, net income reached 1.29 trillion won, compared with a 754 billion won profit a year earlier, it added.

The group, which the government is seeking to privatize, said its stronger bottom line was due mainly to the proceeds from the sale of its stake in Hyundai Engineering & Construction Co. The April sale fetched around 955 billion won.

"Despite increased costs on bad debt, which came as part of the group's efforts to clean up sour loans, Woori Finance succeeded in improving its asset quality as well as net profit, helped by the stake sale," the group explained.

The group's net interest margin stayed unchanged at 2.53 percent from three months earlier.

The full story is available at Yonhap News.