Woori Bank's Vietnam subsidiary reports record-high performance

Woori Bank Vietnam, South Korean lender Woori Bank's local subsidiary in Vietnam, had heydays last year, tiding over the aftermath of the COVID-19 outbreak with digital technology.

The bank said on Friday that it achieved its best performance since its launch in 2017 by reaping an operating profit of $103 million and a net profit of $50 million last year.

Operating profit jumped by 50% and net profit by more than 100%, compared to the previous year.

The stunning growth was attributable to its strategy to strengthen its digital sector to secure retail customers.

Vietnam has a relatively young population and a high uptake rate of smartphones in terms of GDP per capita, implying there are many digital-friendly consumers.

Woori Bank Vietnam has completely reorganized its digital UI (user environment) and UX (user experience) and established a mobile web for loan applications such as mortgage loans and credit card loans.

As a result, the number of digital customers shot up by 150% and non-contact loans by more than 500%.

Woori Bank entered Vietnam by establishing a Hanoi branch office in 1997 and opening a Ho Chi Minh office in 2006.

It then established a Vietnamese local corporation Woori Bank Vietnam in 2017 and opened branch offices or kiosks around shopping malls and industrial complexes with large foot traffic, continuing to expand customer contacts.

Currently, it has a total of 20 national networks, including 11 locations in Hanoi, one in Da Nang, and eight in Ho Chi Minh City.

Woori Bank plans to expand retail operations by adding three locations in Hanoi, Ho Chi Minh, and Can Tho areas this year.

Write to Sang-Yong Park at yourpencil@hankyung.com