1. What Happened?

Meritz Financial Group announced an amendment to its Q1 2025 report on May 15th, 2025, and released its preliminary Q2 earnings on August 13th, 2025.

2. Was the Q1 Report Amendment a Concern?

The amendment involved changing preliminary capital adequacy and risk-based capital ratios to final figures. The changes were minimal and didn’t impact fundamentals, as the ratios remained well above regulatory requirements. It appears to be a standard procedure for enhancing accounting accuracy.

3. How Did Q2 Earnings Perform?

Meritz Financial Group reported an earnings surprise, exceeding market expectations. Operating profit reached ₩949.7 billion (1% above consensus) and net income reached ₩725.1 billion (3% above consensus). The strong performance was driven by Meritz Fire & Marine’s solid insurance profits and Meritz Securities’ growth in investment banking.

  • Operating Profit: ₩949.7 Billion (1% Beat)
  • Net Income: ₩725.1 Billion (3% Beat)

4. What’s the Outlook?

Based on the robust fundamentals and strong Q2 results, a positive stock price trend is anticipated. However, continuous monitoring of macroeconomic factors such as interest rate and exchange rate fluctuations, and real estate project financing risks is necessary.

5. What Should Investors Do?

This earnings release reaffirms Meritz Financial Group’s solid fundamentals. Investing from a mid-to-long-term perspective is worth considering. However, thorough analysis of macroeconomic variables is crucial before making any investment decisions.