12.5% Increase Compared to the First Half of Last Year
Meritz Financial Group recorded a net profit exceeding 1.3 trillion KRW in the first half of this year, achieving the highest half-year performance in its history.
On the 14th, Meritz Financial Group announced that its consolidated net profit for the first half of this year was 1.3275 trillion KRW. This represents a 12.5% increase compared to the previous record of 1.1803 trillion KRW in the first half of last year.
The net profit for the second quarter also reached a record high on a quarterly basis, increasing by 27.7% year-on-year to 736.2 billion KRW.
Meritz Financial Group explained, "Despite recognizing provisions for real estate project financing (PF), insurance profits steadily increased, and interest income improved, leading to simultaneous performance improvements in fire insurance and securities."
Looking at major affiliates, Meritz Fire & Marine Insurance's net profit for the first half of this year was 997.7 billion KRW, marking a 22.3% increase compared to the same period last year and setting a new record.
The net profit for the second quarter was 506.8 billion KRW, surpassing 500 billion KRW in quarterly net profit for the first time.
Meritz Fire & Marine Insurance explained that insurance profits increased by 21.0% year-on-year through securing high-quality new contracts, and in particular, long-term insurance profits increased by 150 billion KRW compared to the same period last year.
A Meritz Fire & Marine Insurance official stated, "Rather than participating in intensified long-term insurance price competition following the introduction of the new accounting standard IFRS17, minimizing loss-making products and actively responding to profitable markets led to performance growth."
Meritz Securities' net profit for the first half was 369.9 billion KRW, a 2.4% increase compared to last year.
A Meritz Securities official explained, "Despite strengthened real estate feasibility assessments and ongoing financial market uncertainties, corporate finance performance improved based on solid deal expansion, and operating performance also greatly improved due to bond yield declines amid expectations of interest rate cuts."
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