Meritz Financial (KRX:138040) has set a mid-term shareholder return policy targeting a 50% payout ratio of consolidated net income through dividends and share buybacks, according to its Q2 value-up plan.

The company reported a cumulative total shareholder return (TSR) of 156% and a three-year annual average of 38%, while its ongoing 700 billion won buyback trust has acquired 607.2 billion won worth of shares as of end-April.

Meritz noted that the expected return on buybacks exceeds its required return, justifying its continued focus on share cancellations, according to a bourse filing on Wednesday.