Meritz Financial (138040) Q1 2026 earnings summary

Executive summary

• Consolidated net income for 1Q26 was KRW680.2bn, up 9.6% YoY or KRW59.4bn, driven by robust investment performance and increased commission income, offsetting a decline in insurance profit due to higher medical claims.

• Total assets reached KRW144.4tn, a 6.6% increase YTD or KRW8.9tn from the previous quarter, with shareholder equity at KRW11.8tn, up 4.8% from 2025.

• Major subsidiaries delivered profit growth, including insurance, securities, and capital segments.

• Continued focus on shareholder returns, with ongoing share buybacks and a robust dividend policy.

Financial highlights

• Net income rose 9.6% YoY to KRW680.2bn; EPS increased 17.1% YoY to KRW3,926.

• Operating profit surged 152.2% QoQ and 18.4% YoY to KRW855bn.

• BPS climbed 18.0% YoY to KRW64,348.

• Total liabilities increased 6.8% YTD to KRW132.6tn.

• Q1 2026 consolidated revenue: KRW3.19tn.

Outlook and guidance

• Shareholder return policy will continue to focus on share buybacks and cancellations, targeting a 50% payout of consolidated net income over three years starting FY2026.

• Forward PER as of March 2026 is 6.9x, with a share buyback yield of 14.6%, exceeding the 10% required rate of return.

• Management expects continued stable growth and profitability across core subsidiaries.