Fri, Aug 09, 2013 - Page 14 News List

Provisioning cuts into Fubon Financial’s profit

By Crystal Hsu  /  Staff reporter

Fubon Financial Holding Co (富邦金控) lost its standing as the nation’s most profitable financial services provider last month, after its banking subsidiary reported net losses due to provision costs, the company said in a stock filing yesterday.

The conglomerate posted a net income of NT$5.44 billion (US$181.58 million) last month, thanks to its insurance unit, Fubon Life Insurance Co (富邦人壽), which generated NT$5.95 billion and more than offset net losses of NT$1.68 billion recorded by Taipei Fubon Commercial Bank (台北富邦銀行), the filing showed.

Taipei Fubon Bank set aside NT$3.3 billion in provisions last month to meet the 1 percent minimum required of Tier 1 assets by the Financial Supervisory Commission, lifting its coverage ratio to 1,100 percent, the filing said.

The conglomerate accumulated NT$23.34 billion in net income for the first seven months of the year, with earnings per share (EPS) of NT$2.43, according to the filing.

Fubon Financial’s earnings last month lagged behind Cathay Financial Holding Co’s (國泰金控), which reported a profit of NT$6.68 billion.

The nation’s largest financial holding company by assets saw a sharp rise in net profit last month after its insurance arm, Cathay Life Insurance Co (國泰人壽), recognized NT$6 billion in dividend income, with another NT$5 billion to be booked later this year, Cathay Financial said in a statement on Wednesday.

Cathay Life Insurance generated NT$5.71 billion profit last month, while Cathay United Bank (國泰世華銀行) contributed another NT$1.3 billion, the statement showed.

The group’s cumulative earnings in the first seven months totaled NT$21.65 billion, with EPS of NT$2.3.

CTBC Financial Holding Co (中信金控), the nation’s third-largest financial services provider by assets, reported NT$1.69 billion in net income last month, mainly from sales of wealth management products and welfare lottery tickets, the company said in a statement on Tuesday.

Financial holding firms’

January-July net profit

‧ Fubon Financial Holding: NT$23.34 billion,

EPS of NT$2.43.

‧ Cathay Financial Holding: NT$21.65 billion,

EPS of NT$2.3.

‧ CTBC Financial Holding: NT$14.99 billion,

EPS of NT$1.14.

The bank-focused conglomerate accumulated NT$14.99 billion in net profit for the first seven months, representing EPS of NT$1.14, up 17 percent increase from the same period last year, the statement said.

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