Cathay posts NT$2.75bn in net profit

TOP DOG::Cathay topped its rivals, while Fubon earned NT$2.37bn from insurance and banking, and state-run Mega Financial reported NT$1.4bn in net profit

By Crystal Hsu  /  Staff reporter

Tue, Sep 10, 2013 - Page 14

Cathay Financial Holding Co (國泰金控), Taiwan’s largest financial services provider by assets, posted NT$2.75 billion (US$92.2 million) in net profit last month, outperforming its rivals due to cash dividends and unrealized property value gains at its life insurance subsidiary, the company said in a statement yesterday.

Cathay Life Insurance Co (國泰人壽) reported NT$1.5 billion in net income last month, raising its cumulative earnings per share (EPS) to NT$2.8, the statement said, adding that the figure would drop to NT$1.55 in the absence of unrealized property value increase.

Cathay United Bank (國泰世華銀行), the holding’s banking arm, recorded net profits of NT$1.23 billion driven by fees and other incomes, while the securities unit incurred a net loss of NT$10 million, the statement said.

The conglomerate accumulated NT$24.4 billion in net income for the first eight months, translating to EPS of NT$2.27, the statement said.

Fubon Financial Holding Co (富邦金控), the second-largest by assets, earned NT$2.37 billion on almost even contributions from its life insurance and banking subsidiaries, the company said in a stock exchange filing.

Taipei Fubon Commercial Bank (台北富邦銀行) generated NT$1.07 billion in net profit, while Fubon Life Insurance Co (富邦人壽) contributed NT$980 billion, the filing said.

The bank’s securities unit managed to stay in the black with NT$90 million in earnings last month as foreign capital pulled out of Asian markets on concerns they may be hard-hit by the coming tapering of US quantitative easing.

As of the end of last month, Fubon Financial collected NT$25.71 in net income with an EPS of NT$2.65, making it the best performer in terms of cumulative earnings.

Separately, state-run Mega Financial Holding Co (兆豐金控) reported NT$1.59 billion in net income last month, thanks to its banking unit, Mega International Commercial Bank (兆豐國際商銀), according to its stock filing.

The lender generated NT$1.4 billion in net profit, accounting for 88.24 percent of the group’s income, the filing said.

The bank-focused conglomerate aggregated NT$15.93 billion in net income as of last month, an EPS of NT$1.39, the filing said.