Cathay Financial Holding Co (國泰金控) earned more last month than a month earlier, on gains from equities investment at home and abroad, while its basket hedge strategy limited losses from the weakening US dollar.
The nation’s largest financial services provider by assets posted NT$1.98 billion (US$63.7 million) in net profit last month, rising 10.61 percent from a month earlier and raising earnings per share to NT$0.42 from NT$0.22, Cathay Financial said in a statement.
In the July-to-September period, the company reported NT$5.21 billion in net profit, reversing a NT$1 billion loss three months earlier, as recovering business boosted income for banking and insurance subsidiaries.
Net profit for the first nine months totaled NT$4.23 billion, contracting 53.89 percent from the year-earlier level as its life insurance arm, Cathay Life Insurance Co (國泰人壽), remained in the red with a NT$5.14 billion loss.
The largest insurer in Taiwan reported NT$810 million in net income, up 6.57 percent from a month earlier, company data showed.
“The rallies in global bourses accounted for the increase, while appropriate strategy helped stabilize hedge costs from a stronger local currency,” which gained 2.4 percent against its US counterpart last month, Cathay Financial said.
Cathay United Bank (國泰世華), the company’s banking unit, reported NT$1.12 billion in net profit, up 15.46 percent from August, on loan growth and improving fee income, Cathay Financial said.
Ken Shih (施耕宇), a financial analyst at Primasia Securities Co (犇亞證券), said foreign exchange risks remain the biggest uncertainty for insurance-centric companies including Cathay Financial, though hedge costs turned out to be lower than expected last month.
The concern pushed the company’s stock down 1.42 percent to NT$48.55 at the close of trade in Taipei yesterday.
Fubon Financial Holding Co (富邦金控), the nation’s second--largest financial services provider, reported net profit of NT$1.37 billion last month, plunging 60.17 percent from NT$3.44 billion in August, the company said in a statement yesterday.
The company attributed the sharp decline mainly to a NT$550 million write-down by its banking arm, Taipei Fubon Commercial Bank (台北富邦銀行), in keeping with its obligation to run the Taiwan sports lottery.
Fubon Financial posted NT$9.1 billion in net profit in the third -quarter, jumping 93.21 percent from the second quarter, making it the most profitable of its 14 privately run peers, company data showed.
Accumulative net income reached NT$19.79 billion for the first nine months, rising 34.53 percent from the year-earlier level, or NT$2.32 earnings per share, according to data on the firm’s Web site.
Chinatrust Financial Holding Co (中信金控), the nation’s third-largest financial services provider, posted NT$342 million in net profit last month, retreating 75.98 percent from NT$1.42 billion in August, the company said in a statement yesterday.
The company attributed the decline to an increase in pension reserves and employee benefits among other personnel costs.
The September figure boosted the company’s cumulative net income to NT$10.61 billion in the first nine months, or NT$0.99 earnings per share, the company said.
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