Meritz Financial (138040) Q2 2025 earnings summary

Executive summary

• Consolidated assets reached KRW 124.2 trillion at the end of Q2 2025, up 7.5% from year-end 2024.

• Consolidated net profit for H1 2025 was KRW 1,358.4 billion, a 2.3% year-over-year increase, marking the highest half-year result.

• Q2 2025 consolidated net profit was KRW 737.6 billion, achieving the highest ever quarterly performance.

• Shareholder equity increased to KRW 11.3 trillion (+3.3% YTD).

• Maintained robust shareholder return policy, with cumulative TSR at 172.2% since 2023 and ongoing share buybacks.

Financial highlights

• ROE for Q2 2025 stood at 26.3%, maintaining industry-leading levels.

• EPS and BPS for H1 2025 were KRW 7,390 and KRW 57,519, up 7.2% and 12.5% year-over-year, respectively.

• Group real estate exposure at Q2 end was KRW 27.5 trillion, with a 46% average LTV and 90% in senior loans.

• Net provisions and reserves in Q2 were KRW 46.4 billion, with impairment losses on beneficiary certificates at KRW 0.9 billion, both down year-over-year.

• ROA reached 2.3% YTD (+0.1%p).

Outlook and guidance

• Shareholder return policy remains focused on share buybacks, with a cumulative TSR of 172.2% since 2023.

• Ongoing implementation of Corporate Value Enhancement Plan, with Shareholder Buyback Yield at 12.5%.

• Targeting a payout ratio of over 50% of consolidated net income over three years from FY2023.

• Forward PER of 8.0x.