Woori Financial Group Inc.

Good afternoon. This is Han Hong-Sung, Head of IR at Woori Financial Group. Thank you for attending today's earnings call for Woori Financial Group despite your busy schedules. Joining us today on the call are Group CFO Kwak Sung-Min, Group CDO Ok Il-Jin, Group CRO Park Jang-Geun, and Head of Business Growth Support Yang Ki-Hyun. We will begin with the group CFO's presentation, which will be followed by a Q&A session. Please note that the session is being simultaneously interpreted for the benefit of overseas investors. With that, we will now hear from the CFO the earnings result presentation of URI Financial Group's first half 2026. Good afternoon, this is Kwak Seong-Min, Woori Financial Group CFO. Let me go over the group's earnings result for first half 2026. Please refer to page two of our earnings result material available on the website. First, the group's net income. Woori Financial Group's net income for Q2 2026 outperformed market expectations coming in at 1 trillion 4.6 billion won Up 66% QOQ. It has thus regained the quarterly net income of 1 trillion won level. This brings the half-year net income, YTD, to 1 trillion and 609 billion won, up 3.7% YOY. Our common equity ROE was 9.0%, excluding one of items, including the impact of changes in actual assumptions that are insurance subsidiaries. ROE was 10.3%. Our Q2 results demonstrate that the group has the foundation to take its recurring earnings capacity to the next level, potentially generating quarterly earnings of more than $1 trillion. This was driven by our strengthened capital position, which improved by 80 bps year-to-date, enabling us to focus on asset growth and productive finance, strengthening the core competitiveness of our subsidiaries, enhancing cost efficiency and risk management. The group posted record high net operating revenue in the first half, while the CIO ratio and credit cost ratio stabilized at lower levels, leading to the group's profitability improvement. During the first half, the benefits of long-standing efforts to diversify the group's earnings structure began to materialize. Despite a challenging operating environment with the sharp rise in exchange rates and market interest rates, as well as the impact of changes in actuarial assumptions in insurance, The group's non-interest income increased by 20% YOY, driven by stronger capital market performance, becoming the primary driver of earnings growth. The income exceeded $700 billion won for the first time on a quarterly basis, supported by solid growth in core fee businesses such as wealth management and CIB. In the first half, the non-bank's contribution to group net income more than tripled YOY from 6.9% to 22%. 22.3% indicating the start of tangible results with the setup of a comprehensive financial group. Looking ahead, we expect our non-bank businesses to become a new growth engine, further strengthening the group's earnings generation capacity. Now, shareholder returns. Today, the BOD approved an additional $150 billion share buyback and cancellation for the second half of the year, a first since the establishment of the holding company. The total amount of share buybacks and cancellations for 2026 will reach $350 billion representing the largest program in our history and more than twice the $150 billion won executed last year. This reflects the firm determination beyond cost and shareholder return policy as well as to minimize shareholder dilution Due to the acquisition of full ownership of Dongyang Life and protect shareholder value, Woori Financial Group approved the second quarter cash dividend of 221 per share, all non-taxable, further reinforcing our position as a leading dividend-paying financial stock. Just as we have consistently delivered on the commitments we have made, we'll continue to faithfully execute our corporate value program and strengthen investor confidence. A more detailed review on the group's financial performance by business segment on page 3. First, I will discuss net operating revenue and NIN. For the first half of 2026, the group's net operating revenue increased 6.0 YOY to a record 5,722,7 billion won. This was driven by balanced growth in both interest and non-interest incomes, each reaching an all-time high, demonstrating that the group's stable earnings generation capability has reached a new level. Q2 net operating revenue also increased 7.5% QQ to 2,965,001. The group maintained solid growth in interest income in the first half, up 3.2% YOY. This was supported by the full-scale expansion of productive finance, with corporate finance growing at a high 4%, as well as continued optimization in ALM, which lifted the bank's NIM by 7 bps YOY. Second quarter NIN remained at the same level from the previous quarter at 1.51%. Although funding cost pressures increased amid higher market interest rates, we minimized the downward pressure on NIN by expanding our core deposit base and continuing disciplined asset rebalancing. Going forward, as we enter a period of rising interest rates, URI will continue to broaden its customer base, further expand core deposits through strategic partnerships, and improve margins through profitability-focused loan portfolio management. Next, let me discuss the bank's loan book. As of June end, 2026, the bank's total loans grew 1.9% due to 344 trillion won. The growth is mainly due to corporate loans growing 2.8% due to primarily driven by large corporates and high quality SMEs supported by expanded productive finance for advanced strategic industries. To prepare for ongoing domestic and global uncertainties, we'll continue rebalancing low-margin and negative spread assets. In line with the government's household debt management policy, household loans will continue to be managed within our target range. Meanwhile, in June, the group expanded its commitment to productive and inclusive finance by an additional $10 trillion, increasing the size of future shared growth projects to a total of $90 trillion over the next five years. Through the initiative, we'll broaden our support beyond advanced strategic industries to include industry leaders, exporters, innovative companies, and startups, thereby strengthening the flow of capital into productive sectors while establishing a more resilient foundation for the group's long-term growth.

Next, let me move on to the group's non-interest income. The group's non-interest income amounted to $1,263.1 billion for the first half and $628.9 billion for the second quarter, marking record high results on both a half-year and quarterly basis. Accordingly, the proportion of non-interest income to total net operating revenue increased to 18.6%. Supported by greater group synergies and stronger business performance across our subsidiaries, both the banking business and the non-bank businesses, including insurance, securities, and investment banking asset management, delivered balanced earnings growth, offsetting factors that reduce earnings, including trading and valuation losses resulting from the high exchange rate and high interest rates, as well as changes in actuarial assumptions in the insurance business. In particular, the group's fees and commissions amounted to 1,278.8 billion won, supported by the bank's WM business and growth in the securities investment banking. On the back of strong capital market conditions increasing 23.7% YOY, second quarter fee income amounted to 702 billion won, up 22% from the previous quarter, surpassing 700 billion won for the first time on a quarterly basis, and this also reflects our strategic efforts over the past several years to expand fee-based earnings. Meanwhile, to drive growth in the group's non-bank business, So that each subsidiary can strengthen its core competitiveness and take the next step forward in its business, the group completed a $1 trillion capital injection into our security subsidiary last May. And today, the making of Dongyang Life, a wholly owned subsidiary, has also been approved. Going forward, leveraging our diversified group portfolio, we will continue to increase the earnings contribution from our non-bank businesses, thereby further improving quality of the group's earnings fixed. And I'll now move on to the group's expenses. Please refer to page 4. I will now move on to the Group's SG&A expenses in the first half of 2026. The Group's SG&A expenses amounted to $2,632.8 billion won, and the cost-to-income ratio was 42.8%. This year, despite structural cost increases including the consolidation of the insurance business, the build-out of our security subsidiaries' infrastructure, and the higher education tax rate, we maintained the cost-to-income ratio at the same level as the same period of the previous year through company-wide cost-efficiency efforts. Meanwhile, SG&E expenses for the second quarter amounted to $1,210,000,0001, down 15% from the previous quarter. Even excluding one-off voluntary retirement expenses, SG&E expenses declined 2.4% from the previous quarter, continuing on the downward trend. Going forward, while continuing to invest in future growth, including AI transformation and the build-out of our security subsidiaries infrastructure, we'll further enhance productivity in our core operations through the transformation to an AI-driven management system and optimize our workforce and channel operations. Through these cost-efficiency efforts, we will do our utmost to achieve our medium-to-long-term CI ratio target of the low 40% range. Next, I will cover the group's credit costs. Group credit costs for the first half of 2026 amounted to $966.1 billion, up slightly year over year. However, in the second quarter, credit costs amounted to $439.2 billion, down 16.7% to QOQ, continuing on a downward trend. In addition, excluding large one-off factors in the first half, the group's recurring credit cost ratio was 39 bps and has been managed stably at a level lower than last year. By maintaining this trend, we will achieve our full-year target announced at the beginning of the year of reducing credit costs by 15% and bringing the credit cost ratio to the low 40 BIPs range. Meanwhile, despite strong loan growth this year through a selective asset origination strategy focused on asset quality, the proportion of prime corporate loans remained at around 85% as of the end of June. In addition, the ratio of loan loss reserves and regulatory reserves to total loans also remained at around 1.5%, providing sufficient loss-absorbing capacity against potential credit losses. However, as the importance of risk management has increased further following the July policy rate hike, we will further strengthen monitoring of vulnerable borrowers and focus on proactive risk management to further strengthen the group's asset quality. Next, let me move on to capital adequacy and shareholder return. Please refer to page 5. As of the end of June 2026, the Group's preliminary CET-1 ratio stood at 13.71%, up 11 bps from the previous quarter. Despite the continued 1,501-plus exchange rate during the second quarter and continued strong loan growth in support of productive finance, we achieved one of the highest CET-1 ratios in the industry, supported by our disciplined capital allocation and risk-weighted asset management capabilities. Based on our strengthened capital position today, the Board of Directors of the Group approved a second quarter dividend of $221 per share, which is fully non-taxable. The record date is August 10th, and the payment date is scheduled for August 31st. In addition, for the first time since the establishment of the holding company, we approved an additional $150.1 billion share buyback and cancellation for the second half of the year, increasing the year's total share buyback to $350.1 billion across two rounds. As a result, we have fulfilled both commitments we made through our corporate value-up plan announced last February. First, to additionally consider share repurchase encapsulation in the second half once our CQ1 ratio exceeds 13%, and the second, to increase our shares to more than 10% within a short period of time. Going forward, we will also consider making share buyback encapsulation a regular semi-annual program and continue to faithfully execute our corporate value enhancement plan while consistently delivering on our commitments to the market. Finally, today, the Board of Directors of Woody Financial Group approved the comprehensive share exchange to make Dong-Yang Life a wholly owned subsidiary. Once the share exchange process is completed in August, we expect to further accelerate our efforts to strengthen the competitiveness of our insurance business through enhanced operating efficiency, improved capital adequacy, and greater group-wide synergies. In the second half, we will also accelerate our efforts to drive and improve sustainable group ROE. In the banking business, we will strengthen our core business drivers, including core deposits, corporate banking, and wealth management, while enhancing cost competitiveness to build a stable earnings base. In the non-bank businesses, we will further strengthen the core competitiveness and market position of each subsidiary, thereby transforming our earnings structure from one centered on the banking business to a more balanced earnings portfolio. Through these efforts, we will gradually strengthen the group's earnings power to more than $1.21 per quarter, while further strengthening the group's stable and sustainable earning space. In addition, we will place even greater focus on expanding productive finance and inclusive finance. As you know, Woody Financial Group has a long-standing legacy in corporate banking, which remains one of our core strengths and key source of competitive advantage. As we have already committed to provide an additional $10 trillion won through the future co-growth project, including $9.4 trillion won for productive finance and $600 billion won for inclusive finance, we will execute these funds more swiftly, thereby supporting the real economy, fulfilling the fundamental role of finance by growing together with the market and steadily securing the group's future growth drivers. This concludes Woody Financial Group's 226th 2026 first half earnings presentation. Thank you very much.

Thank you very much. And now we will begin the Q&A. If you wish to ask a question, please press star and 1 on your phone. And in order to cancel, please press star and number 2. We will stand by to wait for the question. Yes, the first question from DB Securities, Nami Nook. Please go ahead. Thank you. Thank you. Congratulations on the good performance. I have two questions on the securities. Compared to the other competitors, their sales network or they are getting better performance and in retail, The network and the products are differentiated. So in the mid to long term, what are the ways to enhance your brokerage? And secondly, one trillion capital increase was done. So it's used in your IP business. and what are your future plans for capital usage and when do you think you will reach 3 trillion won? Thank you. Thank you very much. I would like to address those two questions. Yes, this is Kwak Sung-Min, the CFO. The first question about the securities, retail, wealth management, the plans going forward. We were established in August 2024, and as for the network and the retail base is absent, we started out from a zero base. And so recently, Looking at the large players and the competitors of securities arms, they have suffered large losses, but we have an absolutely smaller size in the market. I did mention the P&L for the securities, but in retail, our income was $11 billion, and it was 15 billion, so 26.6 billion of net revenue and so it was 10 billion increase YOY. Of course, compared to the others, we don't have the retail and the sales network that much, but in Gangnam area, Yeouido, and in Gwangju, There will be complex branches, and there will be the fourth one, and continuously we will open up these complex branches and stores. So with these networks, we'll work on the number of customers and more AUM, and there's the need. So through these networks, We will increase our sales and retail base with higher number of customers and assets. And as for the derivatives, we have not gotten the license yet, and we will be pushing for that license in 2027. So as for the pending licenses, we will try to get that. and through collaboration with retail, I hope that we can get synergy and we will try to get the license as soon as possible. And with these elements ready, S&T and other businesses, we will be able to have a more synergy effect coming in. And as for retail, there will be continuous expansion and in IT, the retail, so there will be complete environment so that we can enhance more profit in retail and as for the capital increase, as was mentioned in May, we had an increase of 1 trillion won. Basically, for a holding company, the principle is it has to help In terms of ROE, that's the basic principle. And so I did mention it in last quarter's earnings call to be designated as CFIB. We will do the capital injection. And so for securities, ROE needs to be improved. So we will move toward that direction. and the group as a whole will lend support and there will be concentrated effort. So we will nurture the securities business that will be our priority and we will also improve the profitability and we will continue with the capital increase phase by phase. And as for getting the additional license, we will take that into consideration and make Thank you for your attention. increased to $800 billion and so there has been capital allocation and in IB there has been internally capital allocated so for IB in securities the profitability improvement is the highest and we have earned $45 billion in operating revenue, which is increased by 38 billion won. And so IEB is enjoying the biggest and the quickest benefit from the capital increase. Thank you.

Thank you very much. Next, Seol-Eum Jin from IM Securities. You have the floor. Please proceed with your question. Thank you for the opportunity to ask the question. I do have a question with regards to the credit card. So I know that we have around $250 billion in terms of substandards, and I think that there were some large corporate-related issues, so I would like to understand the impact. So I would like to understand how this was actually reflected in the books, and next year, or in the second half, I would like to understand what would be your target CCR. Thank you. Yes, thank you very much. Let me respond to the question. Yes, with regard to the increase in the MPL of the group, and also with regard to the write-back of the provisions, and also the question with regard to the credit cost ratio, DCR, let me respond to that question. So with regard to the increase in MPL, as was mentioned, with regard to the two-mom group exposure, regarding workouts, and there were a total of six companies that have applied for a workout, and there was a 130 billion of exposures, which has led to an increase in NPL. And I know that it's similar for other banks, but with regard to the Jumam Group's exposure, at our group, it's mostly in the form of real estate guarantee, especially for the bank, it's a first lien collateral. And as it's indicated in the IR materials in the second quarter, we have actually provisioned a total of 44 billion. and with regard to the increase of NPLs was mentioned, it has to do with the June 1 group's exposure. That was the major reason behind the increase of NPLs and with regard to the write-back. It's indicated in the IR information and in the second quarter, there wasn't any additional factors with regard to the write-back on the provisioning. But rather, if you refer to the IR presentation materials, you can see that with regard to the June 1 group, we've actually added to the provisioning, so just add provisions But with regard to this quarter, there was no any write-back related. It's just a reversal of the provisioning. And with regard to the credit cost ratio, as was briefly mentioned in the presentation, in the QQ, credit cost, it was a minus, it was a reduction of $88 billion to a total of $439 billion. And Thank you very much. Thank you. in a proactive fashion. And also with regard to productive finance, most of the loans will be focused on that. And through this corporate growth, we want to focus on increasing the loans mindful of asset quality. So with the increase of loans, increase of credit rate cost ratio would not be that significant. You can see that most of the loans are focused on productive finance and more of the strategic advanced industries. So as was already mentioned, In 2026, we have a set quarterly target of being in the low 40% range, 40 BIPs range. So we will continue on to make sure to maintain this within this range with stringent risk management. And as was already mentioned, the size of the credit costs for YOY, we are going to reduce this by 15%. So in the second half as well, we will be very proactive in that endeavor to meet this target of reducing our credit costs by 15%. So that would be a top priority for us on the bottom line. So once again, we will make sure to achieve this target on credit costs. Thank you.

Thank you. The next question is from Park Hae-Jin, Nation Securities. Please go ahead. Hello. I have also two questions. First about the margin. Looking at the loan growth, it's focused on corporate and especially the large corporate. The market rates are rising and NIM looks stable, but I want to know the reason behind that. And the reason why I ask this question is whether it's productive finance or inclusive finance, you seem to be most active. So are there no concerns about The second question is, I was wondering what you have in preparation for digital assets. Thank you. Thank you very much. As for the first question, I understood it to be a margin, and could you repeat your second question just to be clear? Sorry, they are very active in alternative exchanges. So are there any things that you're preparing for alternative asset exchanges? Yes, we will address those two questions. Thank you. Yes, this is the CFO. I'd like to talk about NIM. as was mentioned in was 1.15 and it rose 7 bps and quarterly it rose it was the same as 1.5 of QOQ and the reasons the market writes the market writes 3 bps and the core deposits have increased and that effect also had two bips so YOY the name has increased but QQ is the same and so the reason it was steady at 1.51 QQ was from Q2 the market rates have risen and the POQ has given signs that it will increase policy rates. So considering all that, especially in May, April, we have funded with longer term deposits and we increased those deposits in April and May because Assuming that the market rates will rise, the longer deposits should increase so that when the BOK increases policy rates, the funding rate could be reduced with such preemptive moves. So the longer-term deposits were sourced in April, May, and toward the end of the year, we are going to increase the amount of shorter term deposits. So we have done the ALM optimization. When the interest rates go up, this is going to have a positive effect on our NIM. More longer deposits and that is going to delay the speed of an increase in the funding cost and from three to six months, the shorter term deposits, we have reduced that by 15 trillion won and this is also going to help us in the long term. And compared to June last year, the variable interest cost was increased by 34 trillion won and assuming that the interest rates will rise, According to the portfolio, we have more of them on floating rate. And so by proportion, 15% and 4% each in corporate and household loans. So we have more of these in CD rates. So when the market rates go up, we'll be able to suppress funding rates and CD rate linked loans take up a lot of share, and this is going to be a plus factor for our loans. So in Q3, Q4, and early next year, we have the right structure, and the CD rate linked loans take up a large share. The NIM was flat in Q1 and Q2 at 1.51. But when the interest rates rise, this is going to serve as a platform for the NIM to rise. Yes, I'm the CDO. As for the alternative exchange, I understand it to be the digital exchange. Asset Exchange and the financial authorities have the policy of one exchange, one bank and we're reviewing the regulations and we will be nimble so that we can address this and we're communicating with the major exchanges and maintain a close network and we are going to have collaboration that is strategic and multifaceted and we're reviewing expanding business models will monitor the situation closely looking at the regulations and we will decide on the optimum point to enter. And as for Stablecoin, we are expecting the legislation in the second half of the year or early next year. And before that, we are thinking of forming a consortium. So even before the legislation, Through a working group, we are going to work on stablecoin, and by each category of payment settlement, we are going to secure the right technology. So in issuance and retail, the wallets, developments, payments, the POC has already been done, and on the retail platforms, One stablecoin real-time settlement test has been completed. And we are also doing a lot of POCs in many different scenarios. Thank you. And I think you were asking about some of the concerns in productive finance and inclusive finance. And I want to make it clear that In expanding the productive finance, there may be interest rate competition amongst the competitors, and that is a valid concern. But URI Financial Group, in implementing productive finance, we are not just going to increase low-interest assets, but looking at the productive finance, the way we approach it is, as I mentioned before, The mortgage loans and the existing assets are now redeploying it and rebalancing it to more advanced industries. And so we are looking at credit cost, capital, and interest rates. So we are looking at different facets. And productive finance, we... have guarantee from the policy institutions. So losses and capital burden can be lowered. So it's not simply expanding the size of low interest rate assets. So we are converting the existing assets to the advanced industries. So it does not cause that much of a concern. And ultimately, productive finance is in the nature of corporate lending. We have the know-how of corporate lending. So we have underwriting or acquisition financing, and it can produce synergy with the other businesses, and we can secure... Profitability in many regards. So we believe that we have the know-how of managing profitability in a comprehensive manner in the long term. Credit cost reduction, non-interest income expansion, portfolio rebalancing. In those regards, I think productive finance can work in that regard and By the same token, inclusive finance may incur cost in the short term, but in the longer term, it will contribute to reducing the credit cost. So at a very optimal level, we will pursue with inclusive finance as well. Thank you.

The next question would be by Kim Do-ha from HANA Investment Securities. Please go ahead. Thank you very much for this opportunity. I wanted to ask about total shareholder returns. So by exceeding 13%, I know that you now have the platform of meeting your target to 50%, but I know that 50% would not be met this year, but I do know that there are questions with regard to this. Is it a net 50% starting from this year? So I do know that there is such understanding. So I do know that it's going to be a gradual type of slope moving on to 50%, But I would like to understand what would be the trajectory, what would be the timeline as to reaching that target? And if you would actually clarify that communication, I think that you can lift any misunderstanding. So can you give us some more information and indication on how that would be done? Thank you very much for that question. Let us respond to the question. Please bear with us for just a moment. Yes, with regard to TSR, total shareholder return, I believe that that was the question, so let me respond in that context. So as was mentioned, this year, our quarterly dividend will, based on our policy of equal dividends, it will be a 221 for the first quarter and 221 for the second quarter, so it was an equal distribution of the dividends. With regard to the cash dividends, last year, we've indicated the total dividend, the DPS, would be increased to 10% plus. And we are going to meet this commitment this year as well. So with regard to the cash dividends, I think that there is some anticipation as to how much that would be. So share buyback, early this year, we've engaged in $200 billion of that buyback. And as was mentioned in the second tab, there will be a $150 billion additional share buyback, which would be a total $350 billion. And The context behind the share buyback, as was mentioned, of course there are a number of factors that came into play, but we want to increase the share buyback based on our value-up plan. So this means that as quickly as possible, we're going to increase the share buyback cancellation to 10% plus as quickly as possible. And as was mentioned, this year, our buyback cancellation of shares of 10%. I can say that with $350 billion, with that added $150 billion, we believe that we will be in excess of 10% with this additional $150 billion, bringing this to $350 billion in total. So with that in mind, the TSR last year, it was 31.8%. The share buyback was 4.8%. The total TSR was 36.6%. The 36.6%, if we take into consideration the non-taxable dividend, it's actually a TSR basically of close to 40%. This was the indication that we did mention last time around. And this year, the TSR of 50%, whether we're going to meet that, the place value of 50%, we think that we'll have to go into the fourth quarter to take into consideration our net income as well as our trend of CET1s. Because if you look at the CET1 ratio, of course, we're putting in our best efforts to improve and to stabilize the number. However, once again, as mentioned, we have heightened exchange rates and there are changes to the fluctuations in the stock market and the Middle East complex leading to inflationary pressure. So there are many external risk factors. So the CET1, as to what that would be in the year end, is something that we would have to observe. And then we will be setting forth the cash dividends. But what I can see for sure is is that this year, you can see that we're the only one with a non-taxable dividend amongst our peer. So based on a non-taxable dividend context, we can see that at a minimum, as you've mentioned, the actual TSR, we think, will be in excess of 50%. So that is our current expectation at this time. But of course, we cannot say for sure or guarantee the number. However, the quarterly dividends, as mentioned, will be equally distributed and are shared by back cancellation, the targets that we have already mentioned and what was executed. So based on a non-taxable dividend context, we believe that our target of a minimum of 50% will probably be satisfied. So that is a very cautious, let's say, outlook of what we have or anticipation. We believe that in October, when we come with our third quarter earnings, we think that we will be able to provide you with better visibility on the number. And when that time comes, if we can provide you with a clearer anticipation, that will be the point where we will be providing a more clear communication with the market. Thank you.

Yes, from HSBC, Won Jae-Young. Please go ahead. Thank you for giving me the opportunity to ask two questions. First, I have a question about NIM. It's connected to the earlier question. In your answer, you talked about how strategically in the second half, you are preemptively being ready for the higher rate In the second half, traditionally, Uri Bank had a higher sensitivity to NIM. When the policy rates increase in the second half, what do you think is your expectation for your NIM in the second half? And the second question is about SG&A. ERP was recognized in Q1, so in our future anticipation, The seasonal Q4 ERP will go away and it will be recognized in Q1. Should that be our future understanding? I hope I can hear your opinion on this. Thank you. Thank you for the two questions. The questions were about NIM and SGA. Thank you. Yes, this is the CFO to the NIM question. We did talk about the status, and so you are asking a general question about, you know, when the market rates rise by 20 pips, how much will it go up in our NIM? So what are the simulation results? So do According to our internal simulations, when the 25 bps of market rates, 160 billion won of interest income, so 4 bps arise in NIM, and at the IR event, we talked about 140 billion and 3 bp increase for 25 bps in higher interest rates, but the CD rate loans are higher for Woori Bank and CD loans are increasing. So when the market rates go up, that interest income and NIM slightly goes up according to our simulation results. And that is the benefit of Woori Bank and so moving on to the second question about the timing of ERP. Yes, as you pointed out for the last two years, in 2025 it was in January and this year also the ERP was in January. Going forward, we could have more ERP or How many years? More? How we can continue? There are many variables because the government may change the policy of the retirement age. There could be some change at the government level and we are in the process of reducing the number of stores and there is downsizing in our headcount. So, you know, we have to think about the store closure, that will determine the size of ERP. As for the timing, we believe that if there is future ERP, it will probably take place in Q1. We are not going to suddenly change that to December as of now. And as for the size of the early retirement, well, in the second half of this year, We will be establishing the mid to long term and according to the mid to long term vision and plan the number of stores and headcounts is going to be important so depending on that plan we will devise how much and when and how often we will go ahead with the early retirements and this may be more flexible but Let's say next year there's another round of early retirements, then it is likely that it will be in January. But for early retirement from 2028 and onward, it will be under the mid to long-term plan and it is up to further decision. As for the timing in the shorter term, it will not change probably. In the longer term, due to changes in the retirement age and changes in our store plan and branch plan, it may change. And we will share with you at the earliest moment possible to the range that is available. Thank you.

Thank you. We have one last person in the queue. So Kim Ji-Won from Dao Securities. Please proceed with your question. Thank you for this opportunity. I have two questions. The first, we talked about productive finance, which has to do with increasing the supply of corporate loans. So if that is the case, I think that we will have to manage the RWA. So starting from last quarter, our CET1 has been brought up to 13%. So there was an increase in productive finance and CET1 13%, defending that 13% in terms of a balance. What is the RORWA target that the group has, if any? And the second question is, I know that now Dongyang Life will be a wholly owned subsidiary. So we have acquired this life insurance, and I would like to understand what would be the role? Would it be WN or the bank assurance business, or would it be in the IB side to actually engage in the role of an LP? So I would like to understand what kind of roles would you want your life insurance firm to play in the future? Thank you very much for the question. So there was a question on productive finance and a question on Dongyang Life. So please bear with us as we prepare to answer that question. Yes, on productive finance and the process of expanding productive finance with the impact on TAT1 and RWA is, I think, the gist of your question. So if I may respond, as I did mention, productive finance, I want to say, is not about increasing the loans of a particular category. It's about the existing loans switching to productive finance. It's asset rebalancing, basically. So that I would like to once again make clear. And what happens is in the case of semiconductors, AI, and defense, aerospace, these advanced strategic industries, we have large corporates in these sectors who will be our customers, and already they are our existing corporate customers. And it's that the loan, the direction, would be in the form of productive finance. So I want to mention that with productive finance, it doesn't mean that we will be adding on RWA in our loan portfolio. It doesn't mean that we need RWA. There will be an increase of RWA. But, of course, in investments and, in the case of venture capital securities, In supply of these securities, of course, that can have an impact on RWA. However, as you know, our current securities business, most of the RWA is actually being consumed via the IAB arm, and some of that is actually being done through the productive finance scheme. So if we take all of this into consideration, banks, securities, and investment banking, already RWA has been well allocated amongst these businesses. And one key area of usage, as was already mentioned in the press, is that the government has been introducing rationalization of policies and legislation, especially when it comes to the adjustment of risk weighting. So there, I know, is active review on this, and some has already been reflected in the policies, and there are more to come in the future. So, of course, the supply capacity coming from changes in amendments to the legislation, we think, will help us Lower the impact on the CET1. And we, of course, will continue on in the short term, making sure that it's maintained at 13%, 13.6% levels. But if we utilize this actively in protective finance, we think that in the long term, there will be no issues in making sure that it's within the 13% mid to higher range. Yes, I'm Yang Gi-Yeon in the Business Development Department. So on the insurance arm, so would it be bank assurance or an IB role that Dong-Yang will be playing? So on the group level, utilizing bank assurance and contributing to the IB capabilities, we think it can be a synergy that we can reap. But basically, it's important to enhance the profitability of the life insurance business, the core business, so that it contributes to the group net income. So that would be the top priority of its role that it will have to play going forward. And last July, after it was integrated into the insurance business, we've engaged in an internal review, due diligence, and we have identified some tasks, and we're actually engaging in the improvements. So basically, it's on the kicks It's about ensuring that we do have robust capital adequacy, the KICs. And in addition to that, it's about putting in place the right channels, appropriate channels, and exclusive channels in place. And based on these improvements, starting from next year, we're going to enhance sales, enhance the profitability of the business, and that is the roadmap that we have for the life insurance arm. Thank you. I believe that there are no more questions. And with that, we would like to conclude the Q&A session. Thank you very much for joining us at this earnings call. Thank you very much for your participation.