Meritz Financial (138040) Q3 2025 earnings summary

Executive summary

• Cumulative consolidated net income for 3Q 2025 reached KRW 2.027 trillion, up 2.2% year-over-year, driven by strong investment gains and improved commission and corporate finance performance.

• ROE remained industry-leading at 25.9%, with EPS and BPS up 7.0% and 10.1% year-over-year, respectively.

• Total assets grew 14.8% YTD to KRW 132.7 trillion, and shareholder equity rose 4.3% YTD to KRW 11.4 trillion.

• Shareholder return policy focused on aggressive share buybacks and cancellations, with a cumulative TSR of 175% over three years and a 3-year annual average TSR of 77.9% as of September 2025.

Financial highlights

• Consolidated assets reached KRW 132.7 trillion, a 14.8% increase from year-end 2024.

• 3Q 2025 consolidated net income was KRW 668.4 billion, up 1.9% year-over-year.

• EPS rose 7.0% YoY to KRW 11,102; BPS up 10.1% YoY to KRW 58,870.

• TSR reached 175% over three years, outperforming KOSPI and peers; PER improved from 3x to 8x.

• Cash and equivalents at Q3-end were KRW 7.23 trillion, up from KRW 5.0 trillion at 2024 year-end.

Outlook and guidance

• Shareholder payout ratio of 50% of consolidated net income to be maintained through fiscal 2028, barring major M&A.

• Transparent communication promised if payout policy changes due to significant M&A.

• Management continues to target stable growth, high capital returns, and risk-adjusted profitability.