Cathay Financial shares rocket on earnings increase

By Crystal Hsu  /  Staff reporter

Thu, Feb 07, 2013 - Page 14

Cathay Financial Holding Co (國泰金控) shares rose 4.44 percent to NT$35.3 yesterday, outpacing the TAIEX’s 0.25 percent gain one day after the company posted six-month high earnings for last month due to more favorable accounting rules.

The nation’s largest financial services provider by assets reported NT$3.04 billion (102.75 million) in net income last month, after the implementation of new accounting requirements that resulted in NT$830 million in provision recoveries last month, the company said in a statement.

The new accounting rules allow flagship subsidiary Cathay Life Insurance Co (國泰人壽) to recognize the gain in value of its real estate in the absence of transactions. For this year, the insurer may book NT$10 billion in property value gains, Cathay Life executive vice president Lin Chao-ting (林昭廷) said.

Chinatrust Financial Holding Co (中信金控), owner of the nation’s largest credit card issuer, Chinatrust Commercial Bank (中國信託銀行), earned a profit of NT$3.06 billion last month, due to strong sales of its wealth management products, the company said in a statement.

Chinatrust Financial also benefited from increased volatility on the foreign exchange market as risk-hedging demand increased, while the New Taiwan dollar’s losses lent further support to assets denominated in US dollars.

Chinatrust Financial shares rose 1.98 percent to close at NT$18.05 yesterday.

Meanwhile, bank-centric E. Sun Financial Holding Co (玉山金控) yesterday reported NT$801.82 million in profit for last month, or earnings per share of NT$0.16.