Sat, Apr 09, 2011 - Page 11 News List

Fubon Financial leads in first-quarter profit reports

RISING CURRENCY:While Fubon Financial and Cathay Financial reported sound first-quarter financial results, a strengthening NT dollar cut into their earnings in March

By Amy Su  /  Staff Reporter

Eleven of Taiwan’s 14 financial holding firms released their first-quarter results yesterday, led by Fubon Financial Holding Co (富邦金控) with a net income of NT$10.27 billion (US$354.28 million), or earnings per share (EPS) of NT$1.20.

On a single month basis, however, Fubon Financial’s net income last month slowed to NT$1.68 billion from NT$3.49 billion a month earlier, as the 1.14 percent appreciation of the New Taiwan dollar last month cut into the earnings of its insurance unit, Fubon Life Insurance Co (富邦人壽), the nation’s second-largest financial services provider said in a statement.

CATHAY IN THE RED

It was nonetheless better than Cathay Financial Holding Co (國泰金控), the nation’s largest financial services provider by assets, which reported a net loss of NT$760 million last month, as its insurance subsidiary, Cathay Life Insurance Co (國泰人壽), registered a net loss of NT$1.99 billion because of increased hedging costs amid a rising NT dollar, the company said in a statement.

However, the company’s banking arm, Cathay United Bank (國泰世華銀行), generated NT$1.26 billion in net profit amid an improving loanbook and fee income.

For the first three months of the year, Cathay Financial posted a net profit of NT$1.85 billion, or NT$0.18 per share, compared with a net loss of NT$1.32 billion a year earlier.

Mega Financial Holding Co (兆豐金控), meanwhile, saw its net profit surge 44.19 percent last month to NT$1.86 billion from NT$1.29 billion a month earlier, on the back of its stronger banking and brokerage business, the company said.

Mega Financial’s first-quarter net profit amounted to NT$4.69 billion, or EPS of NT$0.42 — the second-highest among the financial holding companies.

It was followed by Taishin Financial Holding Co (台新金控), which reported a first-quarter net profit of NT$2.73 billion, or EPS of NT$0.40.

Taishin’s net income last month was NT$510 million.

OTHER RESULTS

Other financial holding firms that reported their first-quarter results included: Chinatrust Financial Holding Co (中信金控), net income of NT$4.89 billion, or EPS of NT$0.47; E.Sun Financial Holding Co (玉山金控), net profit of NT$1.42 billion, or EPS of NT$0.37; Yuanta Financial Holding Co (元大金控), net profit NT$2.79 billion, or EPS of NT$0.34; Hua Nan Financial Holdings Co (華南金控), net profit of NT$2 billion, or EPS of NT$0.30; Jih Sun Financial Holding Co (日盛金控), net profit of NT$256 million, or EPS of NT$0.10; and China Development Financial Holding Corp (中華開發金控), net profit of NT$591 million, or EPS of NT$0.05.

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