Meritz Financial (138040) Q4 2024 earnings summary

Executive summary

• Consolidated net profit for 2024 reached KRW2.33tn, up 9.8% year-over-year, driven by improved financial instrument gains and reduced FX losses.

• Total assets grew 13.1% year-over-year to KRW115.6tn, with shareholder equity up 8.2% to KRW10.9tn.

• Return on equity (ROE) was 23.4%, down 4.7 percentage points year-over-year; return on assets (ROA) was 2.1%.

Financial highlights

• Net profit increased 9.8% year-over-year to KRW2.33tn; EPS rose 11.6% to KRW12,238.

• Insurance affiliate net profit up 9.2% to KRW1.71tn; securities affiliate net profit up 48.5% to KRW630.1bn.

• 4Q24 consolidated net profit was KRW350bn, down 4.1% year-over-year due to lower insurance income.

Outlook and guidance

• Shareholder return policy continues to focus on share buybacks and cancellation, with a payout ratio target of 50% over FY23-25.

• Forward PER at 8.0x and share buyback yield at 12.5% as of December 2024, exceeding the required rate of return.