Tue, Sep 11, 2012 - Page 13 News List

Fubon Financial Holding’s net income plunges

By Crystal Hsu  /  Staff reporter

Fubon Financial Holding Co (富邦金控) earned NT$2.25 billion (US$75.4 million) in net income last month, down 67.99 percent from July after the benefits of dividend income eased, the nation’s second-largest listed financial services provider by assets said in a stock exchange filing yesterday.

Taipei Fubon Commercial Bank Co (台北富邦銀行), the group’s banking unit and main source of income, underpinned 47.56 percent of the profit with NT$1.07 billion on the back of a stable core businesses, the filing said.

Fubon Life Insurance Co (富邦人壽) generated NT$700 million, compared with NT$4.65 billion in net income in July at which time the insurer booked the bulk of its dividend income, the filing indicated.

As of June 30, domestic equities totaled NT$170.1 billion, or 9.7 percent of the insurer’s investment funds, while foreign stocks made up 1.5 percent at NT$26.8 billion, the conglomerate told a news conference last month. Most Taiwanese companies distribute cash dividends in the third quarter for the previous year’s earnings.

Fubon Financial accumulated NT$20.24 billion in net profits in the first eight months, or earnings per share (EPS) of NT$2.13, making the conglomerate the best performer in terms of earnings ability.

Chinatrust Financial Holding Co (中信金控), owner of the nation’s largest credit card issuer — Chinatrust Commercial Bank (中信銀行) — posted NT$1.37 billion in net profit last month, 29.74 percent lower than NT$1.95 billion in July, the company said in a statement last week.

The bank-centric group attributed the retreat to an increase in bad loan provisions linked to lossmaking memorychip maker ProMOS Technologies Inc (茂德科技).

As of last month, cumulative profits equaled NT$14.15 billion with EPS at NT$1.21, company figures showed.

Non-performing loans stood at 0.56 percent of total lending at Chinatrust Bank with a coverage ratio of 216.79 percent, suggesting healthy asset quality, the statement said.

State-run Hua Nan Financial Holdings Co (華南金控) reported NT$799 million in net income last month, up NT$5 million from July on improved returns on equities investments by its securities unit, the company said in a statement last Friday.

Flagship subsidiary Hua Nan Commercial Bank (華南銀行) showed a slight decline in financial proficiency last month as net income dropped NT$5.5 million month-on-month to NT$740 million, the statement said.

For the first eight months, Hua Nan Financial reported NT$6.42 billion in net income, or an EPS of NT$0.77, the statement said.

SinoPac Financial Holdings Co (永豐金控) saw its net income weaken 4.46 percent to NT$792 million last month, from NT$829 million in July, as its wealth management business cooled slightly, the company said in a statement on Thursday last week.

Tina Chiang (江威娜), president of Bank SinoPac (永豐銀行), the group’s main source of income, told a media briefing on Wednesday last week that stability tops the lender’s lists of concerns amid global economic uncertainty. Cumulative profits amounted to NT$6.52 billion, translating into an EPS of NT$0.86, the company’s data showed.

State-run First Financial Holding Co (第一金控) posted NT$877 million in net profit last month, with accumulated earnings totaling NT$8.4 billion, or an EPS of NT$1.03, according to a stock exchange filing.

China Development Financial Holding Corp (中華開發金控) remains the worst performer with an EPS of NT$0.32 as of last month, followed by Yuanta Financial Holding Co (元大金控) at NT$0.42, as both companies rely heavily on equities markets and weak sentiment limited earnings.

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