Meritz Financial (138040) Q1 2026 earnings summary

Executive summary

• Consolidated net income for 1Q26 was KRW680.2bn, up 9.6% year-over-year, driven by robust investment performance and increased commission income, offsetting a decline in insurance profit due to higher medical claims.

• Total assets reached KRW144.4tn, a 6.6% increase year-to-date, with shareholder equity at KRW11.8tn, up 4.8% from 2025.

• ROE improved to 25.4% (+0.8%p YoY), while ROA slightly decreased to 1.9% (-0.2%p YoY).

Financial highlights

• Net income rose 9.6% YoY to KRW680.2bn; EPS increased 17.1% YoY to KRW3,926.

• BPS climbed 18.0% YoY to KRW64,348.

• Operating profit surged 152.2% QoQ and 18.4% YoY to KRW855bn.

• Total liabilities increased 6.8% YTD to KRW132.6tn.

Outlook and guidance

• Shareholder return policy will continue to focus on share buybacks and cancellations, with a target to return 50% of consolidated net income over three years starting FY2026.

• Forward PER as of March 2026 is 6.9x, with a share buyback yield of 14.6%, exceeding the 10% required rate of return.