1. Meritz Financial Group Q2 2025: What Happened?
Meritz Financial Group actively pursued its shareholder return policy by repurchasing approximately KRW 468.7 billion worth of its own shares in Q2 2025. Since the announcement of the shareholder return policy in 2023, the cumulative TSR has reached 172.2%, with a 3-year CAGR of 65.1%, delivering significant returns to shareholders.
2. Why Are Share Buybacks Important?
Share buybacks reduce the number of outstanding shares, increasing earnings per share and potentially driving up the stock price. Meritz Financial Group’s return on share buybacks/cancellations (12.5%) exceeds the required rate of return (10%), demonstrating the effectiveness of its shareholder return policy.
3. Market Conditions and Meritz Financial Group’s Performance
Amidst an uncertain macroeconomic environment, including the potential end of the interest rate hike cycle and continued KRW weakness, Meritz Financial Group’s revenue and profit are projected to increase in 2025 compared to 2024. While the decrease in the debt-to-equity ratio indicates a stable financial structure, the decline in ROE in 2024 suggests sensitivity to external variables, necessitating continuous monitoring.
4. Action Plan for Investors
- Investors should pay attention to Meritz Financial Group’s shareholder return policy and growth potential, while considering the impact of external economic variables.
- It’s crucial to develop a long-term investment strategy, taking into account the company’s earnings volatility and changes in the financial market.