Fri, Sep 14, 2018 - Page 12 News List

Earnings among financial groups fall 48.6 percent

RESERVE FUNDS:Cathay Financial Holding said that it set aside NT$1.3 billion as special reserves in light of increasing risks linked to foreign-exchange rates

By Crystal Hsu  /  Staff reporter

Financial conglomerates saw their combined earnings last month fall significantly from July as widening market volatility dented profit momentum and dividend income benefits tapered off.

The nation’s 15 listed financial groups posted aggregate net income of NT$25.9 billion (US$840.77 million) for last month, retreating 48.6 percent from NT$50.4 billion in July, separate statements from each showed.

Fubon Financial Holding Co (富邦金控) reported NT$4.55 billion in net profit last month, only 40.14 percent of what it reported in July, due to a drastic slowdown in dividend income, it said.

Cumulative profit for the first eight months of the year totaled NT$47.11 billion, with Fubon Financial remaining the most profitable among its peers with earnings per share of NT$4.46, it said.

The results represented a 15 percent improvement from the same period last year.

Cathay Financial Holding Co (國泰金控) was second with NT$5.14 billion in net profit last month, 45.6 percent of its profit in July, its statement said.

Dividend income shrank from more than NT$10 billion in July to more than NT$2 billion last month, and Cathay Financial set aside an additional NT$1.3 billion as special reserves amid heightening foreign-exchange risks, its statement said.

As of last month, Cathay Financial accumulated NT$52.42 billion in net income for the year, up 20.78 percent year-on-year, with earnings per share of NT$4.01.

Shin Kong Financial Holding Co (新光金控) was third, although its main subsidiary, Shin Kong Life Insurance Co (新光人壽), saw losses of NT$411 million due to the decline of the Chinese yuan, Shin Kong Financial’s statement said.

The insurance-focused group reported profit of NT$47 million last month, less than 1 percent of July’s NT$4.74 billion, with cumulative net profit totaling 21.53 billion in the first eight months of the year — or earnings per share of NT$1.93 — more than double the results of a year earlier.

CTBC Financial Holding Co (中信金控) earned NT$3.1 billion last month, considerably less than NT$4.96 billion in July, its statement said.

Net income in the first eight months of the year rose 10 percent to NT$29.96 billion, or earnings per share of NT$1.54, putting CTBC Financial fourth of the 15.

Bank-focused Mega Financial Holding Co (兆豐金控) posted NT$2.23 billion in net income last month, noticeably less than the NT$3.65 billion it reported in July, due to market-to-market losses in its investments, as well as lackluster fee income, its statement said.

Its cumulative profits for the year to last month was NT$20.89 billion — or earnings per share of NT$1.54 — on par with CTBC Financial.

E.Sun Financial Holding Co (玉山金控) was relatively resilient with net profit of NT$1.23 billion last month, compared to NT$1.65 billion in July.

E.Sun’s cumulative income rose 17.04 percent from a year earlier to a record NT$12.12 billion in the first eight months of the year, or earnings per share of NT$1.12.

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