The nation’s biggest financial holding companies saw their earnings rise last month, as pressure from foreign exchange exposure by an appreciating New Taiwan dollar eased for their life insurance units.
The NT dollar has gained 6.78 percent against the US dollar since the beginning of this year, central bank data showed.
The local currency yesterday closed NT$0.003 lower at NT$30.108 against the greenback, marking a new low this week following continued declines over the past four consecutive sessions.
Cathay Financial Holding Co (國泰金控) took the lead among its domestic peers, posting net income of NT$4.26 billion (US$141.49 million) for last month, an increase of 1.91 percent from April, the firm’s filing with the Taiwan Stock Exchange (TWSE) showed.
Cumulative net income for the first five months of this year gained 46.91 percent annually to NT$19.23 billion, with earnings per share of NT$1.51.
Cathay Life Insurance Co (國泰人壽), the main unit of Cathay Financial, saw earnings last month rise 17.29 percent month-on-month to NT$2.51 billion.
The insurer said that it has allocated an additional NT$820 million to its foreign exchange valuation reserves, bringing the total to just less than NT$6 billion, which it said was the highest in the industry.
Fubon Financial Holding Co’s (富邦金控) net income last month gained 40.8 percent month-on-month to NT$3.22 billion.
However, net income in the first five months of the year fell 5.13 percent annually to NT$15.39 billion, with earnings per share of NT$1.5, the company said in a filing with the TWSE.
Last month, net income contribution from its key revenue source, Fubon Life Insurance Co (富邦人壽), was NT$1.58 billion, improving markedly from NT$440 million the company posted in April, when it booked NT$3.4 billion in losses for liquidating its stake in Dutch insurer Delta Lloyd NV, scuttling plans to tap into the European market.
Fubon Life, which said that it had been free of foreign exchange-related losses as of the end of last month, reported that net income in the first five months of the year fell 6.48 percent year-on-year to NT$7 billion.
In related news, HSBC Holdings PLC’s principal private banking unit expects the US dollar to continue weakening this year.
A weak US dollar aligns with US President Donald Trump’s agenda, while the victory of recently elected French President Emmanuel Macron has markedly eased uncertainties, leading to brighter economic growth prospects for Europe, HSBC Private Bank said at a news conference in Taipei yesterday.
The euro is expected to strengthen to 1.20 against the greenback before the end of this year, HSBC Private Bank managing director and head of investment strategy for Asia Fan Cheuk-wan (范卓雲) said.
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