46. BUSINESS COMBINATION
| (1) | Acquisition of Woori Wealth Bank in Philippines in 2016 |
The Group acquired 51% interest ownership in Wealth Development Bank, a savings bank in Philippines, in October 2016. As the residual shares of 49% is owned by Viscal group, which operates retail businesses, the Group plans to expand its business operation through retail channels of Viscal group.
| (2) | Establishment of Woori Bank Vietnam Limited in 2016 |
The Group established Woori Bank Vietnam (capitalized at 3 trillion VND) in October 2016, upon the approval from Vietnam Central Bank and commenced its operation on January 3, 2017. The Group has been operating two branches in Hanoi and Ho Chi Minh, and newly established the subsidiary in order for further expansion of its retail banking business in Vietnam.
(3) Acquisition accounting in 2016 (Unit: Korean Won in millions)
| Woori Wealth Bank in Philippines |
Woori Bank Vietnam Limited |
Total | ||||||||||
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I. Consideration |
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Cash and cash equivalents |
25,675 | 155,400 | 181,075 | |||||||||
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II. Identifiable assets and liabilities |
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Cash and Cash equivalents |
48,774 | — | 48,774 | |||||||||
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AFS financial assets |
2,125 | — | 2,125 | |||||||||
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Loan and receivables |
126,917 | 155,400 | 282,317 | |||||||||
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Property and equipment |
651 | — | 651 | |||||||||
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Intangible assets |
205 | — | 205 | |||||||||
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Other assets |
8,792 | — | 8,792 | |||||||||
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Sub-total |
187,464 | 155,400 | 342,864 | |||||||||
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Deposits |
148,521 | — | 148,521 | |||||||||
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Allowance for credit losses |
352 | — | 352 | |||||||||
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Other liabilities |
3,655 | — | 3,655 | |||||||||
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Sub-total |
152,528 | — | 152,528 | |||||||||
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Fair value of identifiable net asset |
34,936 | 155,400 | 190,336 | |||||||||
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III. Non-controlling interest |
17,118 | — | 17,118 | |||||||||
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IV. Goodwill |
7,857 | — | 7,857 | |||||||||