Meritz Financial (138040) Q1 2025 earnings summary

Executive summary

• Consolidated assets reached KRW 119.7 trillion, up 3.6% year-over-year, with consolidated net profit at KRW 621 billion, a 5% increase year-over-year, driven by stable interest income and improved investment performance.

• ROE remained high at 24.6%, among the industry's best, and EPS rose 10.1% year-over-year to KRW 3,353.

• Shareholder equity decreased 1.4% to KRW 10.8 trillion due to dividends and treasury stock acquisitions.

• Despite global uncertainties, steady net interest income and improved investment performance supported profit growth.

Financial highlights

• Consolidated net profit for Q1 2025 was KRW 621 billion, up 5% year-over-year.

• Net interest income grew 10% year-over-year to KRW 558 billion, while insurance income declined 29% year-over-year.

• EPS reached KRW 3,353, up 10.1% year-over-year; BPS at KRW 54,536, up 0.1% from year-end.

• ROE stood at 24.6%; double leverage ratio at 111.2%.

• Total shareholder return over two years was 152.2%.

Outlook and guidance

• The midterm shareholder return policy will continue through 2025, targeting a payout ratio of at least 50% of consolidated net profit.

• Shareholder return policy will continue to focus on share buybacks and cancellations, as buyback yield exceeds required rate of return.

• Capital allocation beyond 2026 will prioritize shareholder value based on market and profitability conditions.