Woori Financial Group Inc.

Good afternoon. I am Han Hong-sung, the head of IR at URI Financial Group. Let me first begin by thanking everyone for taking time to participate on this earnings call for the URI Financial Group. On today's call, we have the Group CFO, Kwak Sung-min, the Group CDO, Ok Il-jin, and the Group CRO, Park Jang-geun. We will first start with the Group CFO Kwak Sung Min's presentation on the earnings performance, and then also present the Corporate Value Enhancement Plan, after which we will have a Q&A session. Please note that the call is being conducted with simultaneous interpretation for our overseas investors. Now let us start our presentation on the earnings for the full year of 2025. Good afternoon. This is Kwak Sung Min, the CFO of Uri Financial Group. Let me go over the 2025 full-year performance. Please turn to page 2 of the material, which is available on our website. The group's 2025 net income was $3,141.3 billion, representing a YOY increase of 1.8%. The ROE was similar to last year at 9.1%. Amid uncertainties in the financial market regarding interest rates and effects rates and concern about a slowdown, balanced top-line growth and the insurance acquisition enabled the group to achieve a record high net operating revenue and stable profits. In particular, we set sizable reserves for future loss factors, including pre-op projects with completion guarantee of trust company, and addressed uncertainties such as fully provisioning against LTV-related fines, further solidifying the group fundamentals. In addition, we completed the insurance acquisition without any negative impact on our capital ratios and established a growth foundation for the securities business by acquiring the final license and launching MTS Group, completing the portfolio as a comprehensive financial group. Using this, we are starting to generate group synergies, such as investment banking joint underwriting, open integrated wealth management practices, and expanding back assurance operations. Another noteworthy achievement of 2025 is the significant improvement in our capital ratios. As of 2025M, the tentative group C21 ratio is 12.9% of 77 basis points versus 2024 and exceeding the 2025 target of 12.5%. Across higher macro volatility, the insurance acquisition, and the higher year-end dividends, the group will still be able to improve its capital ratio through asset rebalancing to stabilize our financial structure, and we are able to show our strong capital management capabilities to the market. Based on this, the BOD today has decided on a year-end dividends of 761 and share buybacks and cancellations of 200 billion won. Next, let me provide more detail about specific areas. Please turn to page 3 of the material. First, let me go over net operating revenue and NIM. The 2025 net operating revenue was 5% year-over-year at $10,957.4 billion. Due to stable profit generation from more diversified revenue sources and the inclusion of the insurance business, we posted a record high performance. Interest income for the year was $9 trillion, $30.8 billion, and top line growth was moderate, but NIM improved quarter over quarter throughout the year, which led to better asset quality and growth. On non-interest income, we recorded a record level fee income and balanced growth across securities, FX trading, and insurance income, which led to a jump of 24% year over year at $1,926.6 billion. In addition, Uri Bank's 2025 NIM was 1.46%, and the group NIM, including the credit card business, was 1.73%, each representing an increase of two and three basis points respectively. Though there were two base cut rates during the year, NIM grew on the back of asset origination focused on profitability and asset quality and funding cost efficiencies. The recent boom in the equity market has led to money movements and market rates are rising, which is creating a more challenging funding environment. but the group will continue to expand its core deposit base, rebalance its portfolio to focus on profitable high-quality assets, and actively manage ALM to secure stable margins in the future. Next, let me go over the loan book. As of 2025 end, the bank's loans totaled 334 trillion won, flat year-over-year, and around 1% higher quarter-over-quarter. In terms of corporate loans, they were slightly declined versus 2024 and at $180 trillion. Loan demand from large corporates was strong throughout the year, but the decrease came from the efforts to decrease SME sector business exposures and actively rebalancing assets to focus on new growth and high-quality companies. On the retail side, the portfolio grew around 0.5% quarter-over-quarter or 4% year-over-year to $150 trillion, mainly driven by real demand, such as policy mortgages. Last year, against a uncertain business environment, including a weak one, the group was able to achieve profitable growth via prudent RWA management with a focus on capital adequacy. This year, as discussed in our future co-growth project planned last September, we will leverage the group's corporate finance competitiveness to increase financial support for more productive areas of the economy. In addition, for retail loans, fully reflecting the government's policy stance, we will focus on the real demand to manage our assets in a stable manner. Next, let me talk about the group's non-interest income area. In 2025, non-interest income was $1,926.6 billion, a record high level and a large increase of 24% year over year. In particular, core fee income showed balanced growth across bank and non-bank businesses totaling more than 500 billion each quarter. In addition, against increased market volatility in interest rates and FX rates, the insurance income contribution from the comprehensive financial group portfolio provided more stability to our non-interest income profile. Leveraging this portfolio, we will strengthen the core competitiveness of our non-bank subsidiaries, such as our securities and insurance business, and generate stronger synergies across businesses, in areas like wealth management, investment banking, and also asset management, to gradually expand our non-interest income contribution. Next, let me go over expenses and cost. Please turn to page four of the presentation. So to discuss SG&A, in 2025, SG&A totaled $5,180,000,001. When excluding the ERP and the insurance business, it grew 10.8% year-over-year, representing a cost-income ratio of 45.7%. During the year, the group spent to strengthen its business portfolio by building out the securities infrastructure and acquiring the insurance business. In addition, there were other upfront costs, such as ordinary wage labor costs. We believe these investments for portfolio expansion were essential for sustainable future growth And we will look at the cost increase from ordinary ridge as a one-off expense, which we will try to minimize the impact by increasing future productivity. In addition, going forward, we will continue to engage in general cost-saving efforts, like leveraging AI-based operation efficiencies to lower cost and achieve our mid- to long-term CI ratio target of below 40%. Next, let me move on to credit cost and asset quality. In 2025, the credit cost was $2,086.2 billion, and the credit cost ratio was 0.53%. Although the base rate was cut twice, market rates have remained high, and any concern about a slower real economy continues. The group recognized around $430 billion in one-off credit costs, including preemptive provisioning related to completion guarantee of trust company projects and strengthened its loss absorption capabilities. So when excluding these one-off factors, the group's credit cost ratio was 0.42%. For the past two to three years, we have preemptively managed weak assets such as real estate project finance and completed an asset cleanup of the non-bank side, including the previous merchant banking business, savings bank, and asset trust. Thus, we expect any additional costs to be limited. And this year, we are targeting a credit cost that is 20% or around $420 billion lower on a year-over-year basis. In addition, for WeBank, the corporate prime asset ratio stands at 84.1%. It is increasing loans to new growth sector manufacturing companies and continues to rebalance assets with a focus on asset quality. Quality indicators are recently improved, but since uncertainties still persist, we will focus more on asset quality management based on preemptive buffers created last year to maintain the credit cost ratio within the 40 basis point range. Next, let me go over capital adequacy and shareholder return. Please turn to page five. The 2025 year-end tentative group CET1 ratio is 12.9%. When we launched in 2019, The group started with a CET1 ratio of 8.4%, and it has improved it each and every year. In 2025, even though we had a large M&A, i.e., the insurance acquisition, solid profit growth, and asset rebalancing, a reduction in FX-sensitive assets and RORWA-linked KPI systems, this all resulted in a significant reduction of 80 basis points year over year. Thus, we have been able to achieve our promise of reaching a CT1 ratio of 12.5% and prove our commitment to enhance our corporate value. At the BOD today, in light of the 2025 financial performance and our shareholder return policy, the Board decided on a year-end dividend of $761 per share and a $200 billion share buyback and cancellation. The full-year total dividend per share increased 13.3% year-over-year to $1,361, which meets the qualifications of a high-dividend company. In particular, the year-end dividend will also be in the form of a non-taxable dividend, the first of its kind from a bank-led financial holding company. The $200 billion share buyback and cancellation also increases a 33.3% percent increase year-over-year, and the group's total TSR ratio, including the non-taxable dividends, will stand at 39.8. Other details of our shareholder return will be discussed when we present our 2026 Corporate Value Enhancement Plan in more detail.

Next, I will go over the productive finance strategies of the future co-growth project announced in September. For the next five years, We plan to provide support of about 73 trillion won, excluding inclusive finance of 7 trillion won. 17 trillion will be allocated to investments, including the National Growth Fund. 56 trillion won will be supplied as loans to advanced strategic industries, such as AI, semiconductors, and defense. To secure growth momentum, we are operating the Advanced Strategic Industry Financial Committee as a task force. And recently, with HANA Group, we signed a financial support agreement for building an advanced strategic industry ecosystem. which shows that we are already delivering meaningful results. We are also leveraging our competitiveness in corporate finance and network to preempt high-quality clients and efficiently expand funding support. To this end, with the financial authority's capital regulation rationalization policy and by promoting the group's internal efforts, such as asset rebalancing, we plan to secure sufficient capital headroom. Also, we will establish an AI-based risk management system that encompasses the entire process from loan review to post-loan management, to build a strong growth foundation without undermining capital ratios and asset quality. That was the end of the 2025 Annual Earnings Presentation. We will now move on to the next section. Today, RE Financial Group disclosed the 2026 Corporate Value Enhancement Plan on CAREX. Kwok Sung Min, CFO, will continue to go over the main elements of the 2026 Corporate Value Enhancement Plan. Today, we announced the corporate value enhancement plan to review the progress made in 2025 and share with the market our new strategies for 2026. The value enhancement plan has incorporated feedback from the market and shareholders. And after thorough discussion, it has been reported to the board of directors to be announced today. We especially thought long and hard about how to effectively use the significantly improved capital ratios as basis for growth and shareholder return. So let me go through the material on our corporate value enhancement program, which has also been distributed today through the disclosure. I'll first go over the financial indicators for 2025. Please refer to page 4. ROE, thanks to balanced top-line growth and the acquisition of the insurance company, was maintained at above 9%. However, asset cleanup at non-bank subsidiaries caused ROE to slightly decline. The C2-1 ratio, despite the acquisition of insurance, LTD penalties, and higher shareholder return, is expected to annually improve by 77 bps to 12.9% to comfortably exceed the 2025 target of 12.5%. Annual DPS for this year should increase by 13.3% YY to 1,361, which is similar to high dividend company levels. Of this amount, the year-end dividend of 761 is non-taxable. When considered, dividend payout reaches 35%, which is top-notch in the industry. The size of share buyback and cancellation have also increased by 9.7% since 2024 to $150 billion. The 2025 TSR of Refinancial Group, when considering non-taxable dividends, reaches 39.8%. Page 5 is on non-financial indicators. In 2024, we launched the securities companies, and in 2025, we successfully incorporated the insurance company, thereby completing the group business portfolio. Synergy is the fundamental reason why we exist as a financial group. Based on the completed portfolio, wealth management, CIV, capital markets, and other key areas will be the focus as we concentrate our efforts to create Synergy. Meanwhile, For financial consumer protection, we are the first financial group in Korea to appoint a dedicated chief consumer officer to take the lead in delivering social value. Also, advancing the CEO succession program and establishing a new decision-making support process for the board of directors to protect shareholder interests are some examples of our efforts to improve corporate governance, which is the key focus in today's capital markets. I'll now move on to the 2026 Corporate Value Enhancement Plan on page 6. In 2026, we plan to achieve a CET1 ratio of 13% ahead of schedule and then maintain it stably at around 13.2% or higher. While continuing the RORWA-based asset rebalancing efforts, quarterly flexible RWA management and selective resource allocation across sectors and businesses. These are some sophisticated and strategic efforts we are making to manage the CET1 ratio. In addition, we will be disposing idle real estate held by the bank and insurance company to reduce RWA. We will also be deploying diverse methods to efficiently manage and use real estate from a financial perspective to enhance capital ratios. Rewriting the Pioneering Future Co-Growth Project. Assuming approximately 80 trillion won of productive and inclusive financial support across five years, we expect about 40 bips annual impact on our capital ratios. We believe this impact is fully manageable by strengthening the RWA management process, quality enhancement of investment and loan portfolios, and utilizing the lending capacity secured from the rationalization of capital regulations. By executing the future core growth, project in a balanced manner within the scope of rigorous capital management, we will work to achieve harmony between capital stability and mid-long-term growth. I will move on to page 7 on the group's sustainable ROE enhancement strategy. As repeatedly mentioned, for this year, based on the group's complete portfolio, we will focus on cementing the competitiveness of each subsidiary within their respective sectors. And the three pillars, banks, securities, and insurance, will start to generate synergy in earnest, which should boost non-bank profit contribution to about 20%. With the continuous capital injection plan, the securities firm will elevate its position in the industry. For insurance, given the business environment, we will prioritize financial stability and focus on laying the foundation for mid-long-term profit. The asset management arm will launch a productive finance-related fund, and with the transfer of LDA insurance funds, should realize economies of scale and climb the industry rankings. Also, on top of traditional methods such as cross-selling and client referral, we are planning to implement diverse synergy strategies such as CIB joint underwriting, wealth management integrated centers, and strengthening LDI. In addition, by transforming into productive finance centered around advanced strategic industries, we aim to secure growth momentum. We will move beyond the traditional interest income-driven profit structure and invest in innovative companies to share its profits. Also, we will move the pillar of financial support from household and real estate to corporate finance in order to contribute to the recovery of dynamism in the Korean economy. Also, with large-scale transformation into an AI-based management system, corporate loans, wealth management, customer consultations, internal control, and other key areas will experience elevated productivity, thereby structurally improving ROE and achieving quality growth at the same time. Lastly, I'll go over the shareholder return policy on page 8. Traditionally, Reeve Financial Group has shown a high dividend payout and a competitive dividend yield, making us one of the leading financial dividend stocks. We will solidify our competitiveness as a dividend stock while diversifying shareholder return benefits to lead the expansion of the investor base in Korea's capital market. First, we will introduce non-taxable dividends from year-end 2025. The related resources as of year-end 2025 is around 6.3 trillion won, which we expect to use across five years. The non-taxable dividends will boost dividend payout by around six percentage points. For retail individual shareholders, the real impact will be an 18.2% increase of dividend income. In both 2024 and 2025, dividend payout was at least 25%, and total dividend payment increased by more than 10%. As such, the company effectively satisfies high dividend stock requirements pursuant to the Act on Restriction on Special Cases Concerning Taxation. We will continue to increase DPS every year by at least 10%. The share buyback and cancellation policy has been gradually expanding since its first introduction in 2023. However, it was still about mid-4% of profits. We fully understand that the impact of treasury stock policy is maximized when the PBR is below one times. Therefore, we will increase the buyback and cancellation portion to about 10% in a speedy manner. Today, we announced share buyback and cancellation of $200 billion, which is a 33.3% increase from the previous year. If we expect the CT1 ratio to exceed 13% this year, we are planning to implement additional buyback and cancellation in the second half. In the future, if the CT1 is maintained stably at over 13.2%, we will be exercising a balanced shareholder buyback and cancellation program twice a year, once each half. To ensure that we remain a flagship financial dividend stock, We will stay one step ahead of competitors and implement diverse measures to strengthen shareholder return in a sincere manner. Lastly, in 2025, we acquired an insurance company to complete our non-bank portfolio to become a comprehensive financial group. Company-wide efforts, including all of our employees, have led to the highest improvement of the CDT-1 ratio in the industry to reach almost 13%. Thanks to these achievements, we have received strong interest from investors from home and abroad and have been positively recognized by the market. Our share prices outperformed the CUSP and market cap has more than doubled since early 2025. In 2026, REIT Financial Group will move beyond a period of management and maintenance to take a leap forward to enter a period of great transformation. While combining core competitiveness and group synergy to advance as a complete, comprehensive financial group, we will leverage our key strength, which is corporate finance, to deliver the great transformation towards productive finance. In addition, we will continue to communicate with the market and carry on differentiated efforts as a leading financial dividend stock. This will conclude the earnings presentation of Refinancial Group for 2025. Thank you.

Yes, thank you very much. Now we will start the Q&A session. So for those of you, please press star M1 on your phone. And if you want to cancel your question, please press star N2. So today, the first question will come from Hana Investment Securities, Kim Doha. Please go ahead with your question. Yes, thank you for the opportunity to ask questions. So for 2026, for this year, in terms of your margin and growth, in terms of your profits, if you could provide the guidance on that and in terms of the overall direction and why you believe that this would be possible, that would be appreciated. And in addition, for the dividends, I do believe it's larger than market expectations, and I do think that the competitive outlook is also good. However, I don't think I can fully understand your dividend policy. So going forward with regards to your corporate value of plan. If you look at page eight of the presentation, right now for 2026 is the target to increase your DPS by 10%. If that is so, then in terms of your quarterly dividends for each quarter and also in terms of year end dividend, what would be the breakdown? Would it be similar to what you have done to date or do you actually believe that there would be any changes? If you could explain that in more detail, that would be appreciated also. Yes, thank you for your question. And if you give us a minute, then we will try to prepare your question. Yes, this is Kwak Sung Min, the CFO, and maybe I can address your question. So if we look at 2025, as mentioned before, in terms of our C to 1 ratio, there was a significant improvement. And as a result of that, we did have a stance to try to have more moderate growth. In addition to that, according to the overall government household debt policy, there was a lower household growth that we also see. But on the Korean won side, there was only a 0.3% growth in that area. In 2026, on the Korean won loans, in terms of the risk-weighted assets, we want to have it at around 0.5%. So that would be the business plan for this year. In addition, if we look at the nominal GDP growth rate, And then also take into consideration the factor of the inclusive financing that we will have. We do think that there will be around 5% growth. And even in 2024, there was around 3% in terms of the plans that we had for the year. But on the corporate side, because there was asset rebalancing and other effects, in terms of the corporate loan growth at a whole, it was a bit more sluggish and retail was a bit more sluggish. So as a result of that, in 2026 as a whole, we want to secure buyer growth potential. So on a YOY basis, we want to have around 5% growth in total for our assets. If we look at our margins, I think that the stance would be is that for four quarters consecutively, we will actually be able to see a NIM increase. And for the full year, it was around two basis points. So on the margin side, we do think that we have defended ourselves very adequately. And at the Research Institute side, if you look at the forecast that they have set out for this year, we do actually think that the BOK will cut rates at least one this year. So that was one of the assumptions. And also in 2026, we think that our margins will, on a Y.O. basis, be slightly weaker in terms of the business plan assumptions. However, then thereafter, if you look at the recent side, market rates are being maintained at a high level. The BOK also... um might cut rates in the second half rather than the first half so it's going to push back in terms of the timing and there's also i think that conflicting views about rate cut possibilities going forward so if market rates were not to fall then we do believe that on a yoi basis that them will be maintained at at least this year's level and in terms of our profitability and asset rebalancing that we're taking also increasing our core deposits if this all comes into play then we do think that there's a possibility that there could be a slight upside to what we're planning and seeing today. In terms of our non-interest income, this is an area that we were very focused on. There was a lot of growth that we had achieved, and we do think that this year the growth will be similar so that on the non-interest income side, we think that we will be able to see around 20% growth. The insurance company being acquired also. On the security side, we have a final license, and we started business. And in March of 2025, so we do think that we will actually have a higher contribution coming from the non-bank side. So going forward in 2026, we think that we can actually see an increase at around 18% on the non-interest income side also. On the SG&A side in 2025, this was an area in which I do think that we lacked a bit. However, SG&A, as mentioned before, is also reflecting the insurance acquisition and also the securities firm, we did beef up the IT investments and also increase the headcount there. So on the non-banking side, there was some concentration of cost-increase factors that did take into play. So for this year, again, this is another factor that we will have to take into consideration. So we do think a dramatic decrease on a YORK basis will not be possible. However, if we look at the other areas outside of these business areas, we are going to be more prudent in terms of management. whether it be the number of branches, the headcount, and also other SG&A-related items. I do think that this year, again, not only for the 2026 business plan, but also according to our mid- to long-term plan, in formulating those plans, we will take a fundamental re-review. So in terms of our mid- to long-term target of reaching ACI ratio of 40%, we will try to look at initiatives that enable us to achieve that and actually execute that in 2026. so that at least in terms of the SG&A side that there could be a decrease on a YOR basis. In terms of our credit costs in 2026, in actuality for 2020, the target would be to maintain a normalized CCR of around 40%, and therefore that would mean that around we have decreased the overall credit costs by around $420 billion or around 20%. So this is the business class that we will execute and also maintain RCI ratio at 40%. And in terms of the outlook, maybe that could be the overall answer to the question. And then I think that you talked about our capital adequacy ratio. and capital policy, in 24 and 25, again, in terms of the total dividends, it did increase by a total 10% year over year in terms of the total amount. And so for this year, if you look at the high growth qualifications that the actual government has laid out, we would be qualified. However, because our dividends are non-taxable, there are more benefits that we give to our shareholders. But with regards to the DPS targets, we do want to have 10% targets going forward. So this is something that we will apply for 2026 and also continuously target going forward. However, that has been said. In terms of the 10% DPS, in order to reach that level, if we do a simulation about how we can achieve that, on the net income side, if we increase it by 10%, that in itself would enable us to reach a 10% DPS target. So therefore, I think that for the target of having a DPS of 10%, it's not going to be a difficult target target to achieve. And therefore, that's why we have set the target at that level. And in addition to that, if we look at our dividend policy, I think that when we talked about this before, we did say that in terms of the quarterly dividend, we would equally distribute it across the first, second, third quarter. And then for the year end, we would look at our capital ratio and then set the year end dividend. That's what we did this year. And then for 2026, I think that that approach will remain the same. As of now, that would be our stance. And in terms of the year-end dividend, I do think that it will be $1,361 per share. So if we look at the same situation, I think that for Q1, Q2, and Q3, you can expect, in general, where the dividends will sit. And then in terms of year-end dividends for 2026, again, we would look at whether the CET bond ratio is above 13% as our general target is. And assuming that is the situation, we would determine what the year-end dividends are. So in terms of our quarterly dividends and our year-end dividends, in terms of the push that we take, that will not in itself change. So for this year, if our C2N ratio does maintain a level that is comfortably above 13%, then based upon that, then from 2027, I do think that we will be able to see equal contributions across the first two fourth quarter or each and every quarter, similar to our competitors. However, rather than splitting it out You know, across all quarters, we don't necessarily believe that that is the most efficient manner. We do believe it's more important to satisfy the commitments that we have made to the market. And in terms of the CET1 ratio that we have, being able to satisfy the needs that our customers have in light of where our capital ratios sit. So up until 2026, we're going to maintain the stance that we currently have. Thank you very much.

Thank you. And we'll move on to the next question from KIS. Paektusan. Please go ahead. Good afternoon. I am Paektusan from KIS, and I also have a question regarding dividends. You talked about the non-taxable dividends and the relevant resources amount to 6.3 trillion won. Last year, we brought in around 3 trillion won. So I would like to know how the size of the resources increased. Thank you for the question. I'm Kwok Sung Min, CFO. And let me answer your question. In 2025, in our corporate value up plan, at the shareholder meeting in 2025 March, we transferred 3 trillion won of capital surplus to retain earnings. So that is all publicly available information. But lesser known is another aspect of the shareholder meeting agenda. So four years ago in 2021, we transferred 4201 from capital surplus to retained earnings. The reason we did that back then was because in 2019, the financial group was relaunched. And according to the IFRS accounting standards, we relaunched the financial group with share exchange. And so the separate and consolidated financial statements need to be integrated. And unlike the competitors, the capital structure of the separate and consolidated financial structure was there. But in reality, there was no reason for it to be different. It was only because of accounting standards. And as you know, the resources will come from the separate financial statements according to commercial code, not the consolidated financial statements. So in conclusion, we had an unreasonable situation at that time where we needed to normalize the situation. So in 2021, 4.1% of capital surplus was transferred to retained earnings, and then we increased the payable resources. And then from three years ago, since we have been making efforts to increase the dividends. So out of the $4 trillion won, $1,100 billion won we already used. So we have about $3.3 trillion won as outstanding balance. So to make sure we satisfy all of the legal requirements and the tax requirements to ensure that we do not have any issues that pop up in the future, we received legal interpretation and tax interpretation that we can use this resource for non-taxable dividends. So out of the 4 trillion, we still have 3.3 trillion won. And then in 2025 March, we put in 3 trillion won So total 6.3 trillion won is the available resources. So after 5,581 dividends, we believe that around 5.7 trillion won will remain. In 2026, we will be using the 5.7 trillion won for the quarterly dividends and all of the dividends. So it will all be non-taxable. So in 2025, non-taxable dividend was only for the year-end dividend. So the impact would have been relatively small. But from 2026 onwards, the quarterly dividend will also be non-taxable. So the actual impact will increase in 2026.

Yes, the next question will come from Taishin Securities, Park Hae-jin. Please go ahead with your question. Yes, hello. This is from Tishin Securities. And I would like to ask about the $189 billion non-operating loss that you have, if you could break it down for us. And also in your corporate enhancement, value enhancement plan, I do think that the non-bank side contribution is around 20%. What do you look about? How do you see the outlook going forward? because it does seem to be that on the brokerage side that there is a more favorable environment. So maybe in terms of your mid to long-term plan, there could be an acceleration of the realization of that. So in general, if you look at the overall business outlook, including your non-banking business, if you could discuss that, that would be appreciated. Thank you for your question. If you give us some time, we will answer. Thank you. Yes, talking about the non-operating income side and the overall line item there. So for the competitors, I do think that this was mentioned already. With regards to the bad bank, there was a $50 billion contribution. And in addition to that, on the LTV fine, we have around $52 billion, another minus or deducting side there. So in terms of the $52 billion, this is fully provisioned against. and we do set aside at other provisions. So it's fully provisioned against already. And our competitors, we understand there could be various legal views. We didn't do a partial recognition. We fully provisioned. So I think that if we do take in consideration what their view would be in terms of the fines on this side, and also according to how the litigation we could actually believe that there could be a reversal. So we do think that there's a possibility that we would be able to see some upside from that taking place. And in addition to that, on the security side, to talk about any rights offerings, I do think that that was something that was mentioned, and I did see the press reports. So if you look at the situation right now, the overall total capital base is around $2.2 trillion. And so for the security side, Different from the insurance business strategy, we do want to grow this business ourselves. So over the much long term, to be a mega IB and also to be for mega securities, we do think that it's inevitable that there will have to be capital increases that take place. For the licensing periods and taking all things into consideration, we do think that it is inevitable. So this is something that is under review. But for the company as a whole, we are going to look at the mid to long term capital management plan and then gradually implement any increases that are necessary. So over the mid to long term, to become a middle IB, we do understand that we will have to make more contributions. So in terms of the application, in terms of the licensing itself, this is all something that takes time. So again, it will be a gradual process and according to that process, we will take, gradual action. So we don't have any specific size or timing that we're thinking about as of now. But in terms of becoming a mega IB, according to that schedule, you know, it is under review as of now. So on the security side, if there is a capital increase, then of course in light with the support for productive financing and also in terms of the future co-group program, we do want to have more support for venture capital. So even if we do make capital increases on the security side, it will not have an impact on our C2-1 ratio. And we also believe that we have more room to put in more capital versus our competitors. There's no legal restrictions. So through doing so, we will try to pursue the top-line growth of the security's firms so that we can have a contribution on our top line from the non-bank side. So over the mid-term horizon, we will set a business plan forth to this aim and try to achieve it. Thank you.

We will move on to the next question from NH Investment Securities, Jung Joon-seop. Please go ahead. Good afternoon. I am Jung Joon-seop from NH Securities, and thank you for the question. I have a question regarding CT1 ratio, and it improved significantly this year. 2026, you are working to achieve 13% ahead of schedule. You talked about the shareholder buyback, and I think it's up to June. So I think you are looking to conduct the share buyback program in the second half, When do you think that will actually happen? When do you think you can actually achieve 13%? If you have the guidance for CT1 in the second half, I think I'll get a better idea of the size of the share buyback. And can you also give us more color on the different strategies that you have? For example, you'll be disposing the marketable securities or are there plans to have a paid and capital increase and so on? Thank you for the question. And just give us one minute while we prepare the answer. I am CFO Kwak Sung Min. Regarding the CTO1 ratio we mentioned earlier today, As of 2025 year end, it was 12.9%. Those are preliminary numbers. So we are close to 13% at the moment. So in 2026, we feel that, like mentioned earlier, I think I was a little bit more cautious, but we do believe we can comfortably achieve 13% in 2026. In terms of the timing, Probably we will be able to achieve that in the first half, and our financial business plan is based on that assumption. The government is improving the overall institutional framework to encourage productive finance, and I think that can contribute to our own efforts as well. On top of that, we have internal efforts that we are making. We are developing those plans for 2026. It's a little bit too early to share that with you today, but we are currently developing the plans. For example, you have the EIDL real estate disposal that was included in the corporate value enhancement plan, but we are making multifaceted efforts to ensure that we can reach early 13%. And if we progress as expected, we are quite confident that we can reach and go over 13% in the first half. That is why, like you said, the $200 billion one that we announced is a four-month trust contract. So it's from February to June. The purchasing will happen during that period. And by the end of June, we plan to cancel those shares. And the details are in the disclosure. We mentioned that if we expect CT1 to go over 13%, we can review additional shareholder buyback in the second half. So I think that is quite a realistic plan that we have. So in Q1, or in first half earnings call, I think we may be able to share some positive news regarding that topic. Thank you.

So the next question will be from HSBC, , please go ahead with your question. Yes, thank you. Thank you for your strong performance amidst a challenging environment and with regards to TSR also, it does seem that you have given a lot of thought about this and have come up with a detailed plan so thank you for that. However, in terms of the news reports, because it's already out and also because there's a question, this is a question that inevitably I think I have to ask if you look at the news reports, On the security side, right now, there's talk about a $1 trillion capital increase each and every year so that you would be able to fill in your capital base. So in terms of the C21 ratio, you said that that would not have an impact there. However, if you do make a $1 trillion contribution, in terms of the C21 ratio targets that you have, is it possible to do so without impacting your C21? So how should we look at these two numbers? Because I think that we would need a bit more comfort about this issue. And second... I think that if you look at ABL, if you look at their core capital ratio, maybe it's around 30% or 40% right now. And in the case of Tongyang, also it's being maintained at around 53%. So for Tier 1, if this is something that is introduced, then I do think that you will actually have to take more additional action. So this also, would it not have an impact on your C to 1 ratio? If you could elaborate a bit more about that, that would also be appreciated. Yes, thank you very much. And while we prepare, if you could just wait for a minute. Yes, on the security side and the capital increases, I do understand that there was an article by a press outlet. So we did talk to them about that. But I do think that it was over-exaggerated somewhat. So in terms of the article in itself, I think that you should just understand it's a news article. And in terms of our organic growth, we want to grow our overall securities firm. And according to that strategy, on a step-by-step basis, of course, there will be a capital increase. In terms of that, that's the principle that we have. So from this year – Whether it will start this year or whether it will start next year is something that we're still reviewing. Once we have made a determination and according to the size, then it could be subject to disclosure or maybe not. But we will fluidly communicate with the market so the market can recognize the situation and be aware of it. And as mentioned before, right now it's not only being designated as a mega IB because of course that would be something that we would be, you know, pursuing under the process that we want. There is a preliminary license that is required. There's a two-year grace period. So as mentioned before, it's $1.2 trillion. So even if it goes to $2 trillion, $3 trillion, you know, going step by step, there are time requirements that you need to fulfill. So according to that and according to the government's overall rules, you know, we need to follow that process. So it's not a short-term situation. It's more of a mid-term type of situation. And the capital increases cannot help but take place in a gradual manner because of that. And therefore, once the capital increases are decided, then through our IR department or through other outlets, we will try to communicate as much as possible. And I did mention that it would not hit the C to 1 ratio. And what that's making is that the action in itself does not have an impact on our C to 1 ratio at the holding company level. However, if the securities company does engage in S&T businesses or investment banking businesses, as they utilize that capital, of course, there will be asset growth that will take place. And because the asset growth would increase our RWA, we do think that the impact of that from the capital increase that they do enjoy we do think that they would be able to engage in activities that would offset the increase in the RWA from the profitability that they enjoy from doing so. So at the end of the day, we do think that there would not be an impact on the C2-1 ratio in itself. And I think that if they are able to generate an ROE, then that should not be a situation that would be negative at the group level. And on the insurance side, it's not the TIX ratio, but there is going to be a core capital ratio or maybe Tier 1 ratio that's going to be introduced. In terms of the timing of that, it's not 26, but it's 2027. And at the government level also, they are trying to look into avenues that, you know, giving maybe a grace period until 2030 so that it would not impact the insurance company's operations. So because it's not a disclosure factor yet, I can't go into the details because the Kix ratio in itself is official, but other numbers are not. But I think that internally, if you look at the situation, we are preparing for this. And at the insurance company level also, of course, from 2027, they will be managing their core capital ratio. So for the 50% ratio in itself, we do think that as of now, as of the end of 25, if we do our own calculations, we actually are comfortably above that in our insurance businesses. So in terms of this core capital ratio as of now, I don't think that there would be any requests that we would have to make for an exemption or a delay. Even with what we have right now in terms of the operations, both companies we do believe will be able to maintain a ratio that would be above the required amount.

Thank you for that. We do not have any further questions at the moment. For this quarter, we have also received questions on our website, especially regarding shareholder return. But I think our presentation today regarding our corporate value enhancement plan and the Q&A session have supplied sufficient information on that topic, so we will not go through the individual questions right now. If there are no further questions, we will end the Q&A session here. This will conclude the annual earnings call for 2025 of Uri Financial Group. Thank you for your time today.