Fubon Financial Holding Co (富邦金控) remained the most profitable firm in the local financial holdings sector in the past 11 months, although its bottom line was affected by volatility in the capital market because of the debt problems in the eurozone, market sources said on Saturday.
In the 11-month period, Fubon Financial posted NT$32.69 billion (US$1.08 billion) in net profit, with earnings per share (EPS) of NT$3.63, ahead of Chinatrust Financial Holding Co (中信金控) with NT$1.57 EPS, Yuanta Financial Holdings Co’s (元大金控) EPS of NT$1.5, Mega Financial Holdings Co’s (兆豐金控) NT$1.47, Taishin Financial Holding Co (台新金控) at NT$1.2 and Cathay Financial Holding Co (國泰金控) with NT$1.13.
Hua Nan Financial Holdings Co (華南金控) was in seventh spot with EPS of NT$1.12, ahead of First Financial Holding Co’s (第一金控) NT$1.06 EPS, Waterland Financial Holding Co (國票金控) with NT$0.93, Jih Sun Financial Holding Co (日盛金控) at NT$0.75, E.Sun Financial Holding Co’s (玉山金控) NT$0.75, Shin Kong Financial Holding Co (新光金控) with NT$0.64, SinoPac Financial Holdings Co (永豐金控) at NT$0.59 and China Development Financial Holding Co’s (中華開發金控) EPS of NT$0.17.
Last month alone, Fubon Financial made just NT$5 million in net profit after its life insurance division incurred about NT$800 million in foreign exchange losses and its banking division assigned more than NT$300 million in bad loan provisions.
According to Fubon Financial president Victor Kung (龔天行), while the New Taiwan dollar fell against the US dollar last month, the local unit showed its strength against other currencies, including the New Zealand and Australian dollars, prompting the company to suffer large foreign exchange losses.
Similarly, Cathay Financial and Shin Kong Financial also felt the pinch of large foreign exchange losses, which have squeezed their profitability, the sources said.
On the other hand, Chinatrust Financial, which ranked the second-most profitable among the financial holding companies in the past 11 months, benefited from synergy arising from the acquisition of New York-based MetLife Inc’s local unit and posted NT$2.58 billion in net profit last month, the sources said.
In that period, Chinatrust Financial recorded NT$17.76 billion in net profit, a new record high for the company.
The market expects Chinatrust Financial to post NT$20 billion in net profit for this year as long as the company continues to keep its momentum through this month.
For its part, E.Sun Financial’s banking arm, E.Sun Commercial Bank (玉山銀行), assigned NT$2.44 billion in bad loan provisions last month, impacting its bottom line as the bank dipped into the red column for the month.
E.Sun Financial, which tied for 10th in EPS, incurred NT$1.49 billion in net loss last month, dragging down accumulated net profit in the 11-month period to NT$3.14 billion.
In addition, Hua Nan Commercial Bank (華南銀行) assigned NT$830 million in bad loan provisions last month, while Bank SinoPac (永豐銀行) assigned NT$232 million in bad loan provisions in the same period.