Meritz Financial (138040) Q2 2026 earnings summary

Executive summary

• Achieved record-high consolidated net income of KRW1.4716tn in H1 2026 (+8.3% YoY), with Q2 net income at KRW791.4bn (+7.3% YoY), driven by strong equity investment and retail brokerage performance.

• Operating income for H1 2026 increased 9.0% YoY to KRW1.8224tn; total assets reached KRW148.5tn (+9.7% YTD), and shareholder equity at KRW12.8tn (+13.6% YTD).

• ROE for H1 2026 was 26.8%.

• Maintained robust capital allocation with a focus on share buybacks and high shareholder returns, targeting a 50% payout of consolidated net income.

• Share buyback trust of KRW700bn signed in March 2026; KRW607.2bn (5.46mn shares) acquired as of July 2026.

Financial highlights

• H1 2026 consolidated net income: KRW1.4716tn (+8.3% YoY); Q2 net income: KRW791.4bn (+7.3% YoY).

• H1 2026 operating income: KRW1.8224tn (+9.0% YoY); total assets as of June 2026: KRW148.5tn (+9.7% vs. end-2025).

• 2Q26 EPS rose 16.2% YoY to KRW8,589; BPS increased 19.3% YoY to KRW68,642.

• Insurance revenue grew 9.0% YoY; net interest income declined 7.1% YoY.

• Commission income surged 43.5% YoY; other income up 25.0% YoY.

Outlook and guidance

• Continued focus on shareholder return policy, prioritizing share buybacks and cancellation due to undervalued stock.

• Targeting a 50% payout of consolidated net income over three years from FY2026.

• The group expects continued stable growth, focusing on profitability, risk management, and capital efficiency.