The nation’s 15 major financial holding companies saw a combined annual growth of 5 percent in net income for last year, but seven reported annual declines and the total fell just short of the NT$300 billion (US$8.91 billion) predicted by Financial Supervisory Commission (FSC) Chairman William Tseng (曾銘宗).
The companies’ combined total was NT$296.74 billion.
They said they had been hindered by rising market volatility, a persistent global economic slowdown, heightened regulatory requirements — such as elevated general provisions against default exposure in China — the local real estate market and complex derivative instruments.
Fubon Financial Holding Co (富邦金控) reported the best performance, a record-high net income of NT$63.63 billion, a 5.6 percent annual increase, which translated into earnings per share (EPS) of NT$6.22.
It said that net income contribution from its banking unit, Taipei Fubon Commercial Bank (台北富邦銀行), dipped 3.63 percent, as it had allocated 100 million yuan (US$15.2 million) for its China-based subsidiary Fubon Bank (China) Co Ltd (富邦華一銀行).
Cathay Financial Holding Co’s (國泰金控) net income rose 16 percent annually to NT$57.77 billion, or NT$4.5 EPS.
The company said that its insurance unit, Cathay Life Insurance Co (國泰人壽), reported net income of NT$38.33 billion, up 21 percent annually, while first-year premium equivalent collection was NT$101.9 billion, up 43 percent year-on-year.
Its banking unit, Cathay United Bank (國泰世華銀行), said net income reached a record NT$18.8 billion.
State-run Mega Financial Holding Co (兆豐金控) said that its net income dropped 3.06 percent to NT$29.27 billion, or NT$2.35 EPS, which it attributed to the NT$910 million taxes it paid on undistributed earnings and employee stock option expenses during a round of capital increases last year.
CTBC Financial Holding Co (中信金控) said its net income rose 5 percent annually to NT$35.84 billion, or NT$2.13 EPS. It booked net income of NT$6.83 billion last month, of which the majority was derived from the sale of its former headquarters in Taipei’s Xinyi District (信義).
In the wake of falling share prices, the commission has approved CTBC Financial’s request to extended the duration of its capital increase plan to issue 920 million out of 2.4 billion planned new shares from three to six months at NT$16.73 per share.
CTBC Financial shares yesterday closed down 0.64 percent to NT$15.5.
Fubon Financial has also initiated a capital increase plan to issue 520 million new shares at NT$48 each to raise NT$24.96 billion.
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