Woori Bank to See More Profit and Less Arrear in 2nd Half of 2009

Lee Chong-hwi, President and CEO of Woori Bank in Korea, predicted Tuesday in an interview with AJ News Tuesday that the bank will keep getting into difficulties with a decline in net interest margin (NIM) and overdue interest in the latter half of this year.

Lee expected the NIM and overdue interest for the rest of this year will be only half of the figure a year ago since there are lots of troubles in its business due to the restructuring and an increase in overdue interest for recent one year.

"Woori Bank plans to resolve the problems by implementing comprehensive countermeasures where the bank supports small and medium enterprises (SMEs) and strengthens the level of monitoring the arrears in order to reduce the overdue frequency. In order to have stable funding in foreign currencies, we will promote to issue an overseas mortgage-backed security (MBS) and expand a credit line with foreign banks," he said.

The CEO pointed that the real recovery will only come after having the basic economic activities such as exports back on the right track, although some analysts claim that the degree of financial crisis starts going down.

“Therefore, the bank will continue to perform the management strategy to upgrade fiscal soundness and profitability for the rest of this year,” he added.

Recently, Korean banks resumed penetration plan for the international market. CEO Lee said, "It is time to focus on arranging financial goods and services in the existing branch offices overseas, rather than stretching to make inroads into the foreign market. We should concentrate more on business activities for local companies and customers rather than making additional marketing network."

Lee, however, revealed his will to develop a new business with higher growth and stability potential.

"We will cultivate new markets including retirement pension, national housing fund and green industry to secure stable profits. As the green finance became an essential part in creating the market, we should ask people for persistent interests in our plan to secure growth power for the future," he said. 

Woori Bank currently launched green products such as the 'Low-Carbon, Green Bankbook' and a plan to establish its own green finance council in this month.
CEO Lee also showed his strong intention to reboot the restructuring plan for the enterprises with bad performances. 

He prepared himself for striving to make Woori Bank a global financial institute , which is not obsessive about a short-term result.

Firstly, Lee plans to divide the bank's task force teams (TFT) to split into five subordinate agencies and settle the new culture and system for each, trying to improve the bank’s structure on the whole.  

By Kim, Youkyung
아주경제= 김유경 기자 [e-mail]

Translated by Jung, Eunsun
아주경제= 정은선 기자 [e-mail]
(아주경제=ajnews.co.kr) 무단전재 배포금지