Meritz Financial (138040) Q4 2025 earnings summary

Executive summary

• Consolidated net income for 2025 reached KRW 2.3501 trillion, up 0.7% year-over-year, driven by higher commission and interest income despite lower insurance profit and increased expenses.

• Consolidated total assets reached KRW 135.5 trillion at year-end 2025, up 17.2% year-over-year; shareholder equity rose 3.0% to KRW 11.3 trillion.

• ROE stood at 22.7%, maintaining industry-leading levels.

• EPS and BPS rose 5.4% and 8.5% year-over-year, respectively.

• Shareholder return policy focused on aggressive share buybacks, with a payout ratio of 61.7% and total shareholder return (TSR) of 8.8% for 2025.

Financial highlights

• Fourth quarter net income was KRW 323.3 billion, down 7.6% year-over-year.

• Standalone net income: Fire & Marine Insurance KRW 1.681 trillion (down 1.7%), Securities KRW 701.6 billion (up 11.3%), Capital KRW 134.2 billion (up 14.6%).

• Insurance profit declined 7.1% year-over-year, while investment profit rose 13.2%.

• Cumulative investment yield for 2025 was 3.7%.

• ROA was 1.8%, down 0.3 percentage points year-over-year.

Outlook and guidance

• Active and disciplined shareholder return policy to continue, focusing on treasury share buybacks and cancellation.

• Ongoing commitment to a payout ratio above 50% of consolidated net income over three years.

• Ongoing focus on high-quality asset origination and capital efficiency.