Wed, Jun 12, 2019 - Page 11 News List

Fubon posted NT$6.88bn in May

SECOND-MOST PROFITABLE:Fubon Life Insurance Co reported that net income soared 80 percent thanks to solid investment returns and a good hedging strategy

By Kao Shih-ching  /  Staff reporter

Fubon Financial Holding Co (富邦金控) on Monday reported that net profit increased 11.7 percent year-on-year to NT$6.88 billion (US$218.9 million) last month, making it the second-most profitable of the nation’s 15 financial holding firms, after Cathay Financial Holding Co (國泰金控), which reported NT$11.2 billion in net profit.

Fubon Financial’s main subsidiary, Fubon Life Insurance Co (富邦人壽), reported that net income increased 80 percent to NT$4.32 billion thanks to solid investment returns and a good hedging strategy.

Its banking arm, Taipei Fubon Commercial Bank (台北富邦銀行), saw net income fall 17.5 percent to NT$1.77 billion, while Fubon Insurance Co (富邦產險) and Fubon Securities Co (富邦證券) reported declining earnings, Fubon Financial said.

The holding company’s cumulative profit in the first five months of the year led local peers at NT$23.84 billion, or earnings per share of NT$2.33, but profit fell 16.69 percent from a year earlier due to foreign-exchange losses from overseas investments.

Shin Kong Financial Holding Co (新光金控) reported that net profit increased 84 percent last month, but cumulative profit for the first five months fell 49 percent year-on-year, company data showed.

SinoPac Financial Holdings Co (永豐金控) saw net profit increase year-on-year last month as well as for the first five months.

“Considering the volatility in global financial markets this year, we cut our investment in shares by millions compared with last year, but profits advanced as we devoted more effort to stock picking,” SinoPac Financial chief financial officer Kerry Hsu (許如玫) told the Taipei Times by telephone yesterday.

The company’s banking unit, Bank SinoPac (永豐銀行), reported that cumulative profit increased 29 percent annually for the January-to-May period thanks to stable growth in fee income, while SinoPac Securities Corp (永豐金證券) reported that cumulative profit increased 61 percent annually, it said.

China Development Financial Holding Corp (中華開發金控) reported that net profit rose 53 percent annually to NT$1.53 billion last month, while cumulative profit in the first five months rose to NT$6.31 billion, or earnings per share of NT$0.43.

However, China Development’s banking arm, KGI Bank (凱基銀行), saw net profit fall year-on-year to NT$31 million last month due to volatility in the financial markets from the US-China trade dispute, company spokesman Eddy Chang (張立人) said in a statement.

Overall, the 15 conglomerates saw their net profit recover last month and advance from a year earlier, but their cumulative profit for the first five months fell year-on-year, the data showed.

The 15 firms reported NT$37.36 billion in total net profit for last month, up 21.7 percent from the same period last year, while their combined cumulative earnings for the January-to-May period was NT$152.41 billion, an annual decline of 8.6 percent, the data showed.

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