Meritz Financial (138040) Q3 2026 earnings summary

Executive summary

• 3Q26 consolidated net income was KRW490.5bn, down 26.6% YoY; 3Q26 YTD net income was KRW1.962tn, down 3.2% YoY.

• YTD results reflected steady CSM growth and strong securities performance, offset by lower insurance investment income and higher SG&A costs.

Financial highlights

• 3Q26 insurance income was KRW240bn, up 66.6% YoY; net interest income was KRW369bn, down 28.3%, and commission income was KRW122bn, down 43.8%.

• 3Q26 operating profit was KRW520bn, down 39.7% YoY; non-operating income was KRW150bn, versus KRW30bn in 3Q25.

• 3Q26 YTD insurance revenue rose 11.2% YoY to KRW8.037tn; operating profit was KRW2.342tn, down 7.6%, and net income was KRW1.962tn, down 3.2%.

• Consolidated assets reached KRW146.5tn at 3Q26, up 8.1% from 2025; liabilities were KRW133.9tn and equity KRW12.6tn.

Outlook and guidance

• FY2026 policy targets returning 50% of holding-company consolidated net income over three years; capital returns are chosen by comparing buyback/cancellation return with the required return.

• September 2026 forward PER of 6.6x implied a 15.2% expected return on buybacks and cancellations, above the 10% cost-of-equity benchmark.