Almost all local financial conglomerates reported a monthly drop in net profit last month, as their investment and wealth management businesses were affected by a COVID-19 outbreak in the home market.
Except for SinoPac Financial Holdings Co (永豐金控), whose net profit rose 4 percent sequentially to NT$1.25 billion (US$45.24 million) last month, the 14 other local financial conglomerates said their net profit declined by a high single-digit or double-digit percentage from April.
Cathay Financial Holding Co’s (國泰金控) net profit was halved to NT$7.23 billion last month from NT$14.3 billion in April, as its flagship firm, Cathay Life Insurance Co (國泰人壽), reported a 57 percent fall in profit to NT$5 billion, company data showed.
Its banking arm, Cathay United Bank (國泰世華銀行), said that net profit was flat month-on-month at NT$1.95 billion.
Fubon Financial Holding Co’s (富邦金控) net profit slid 19 percent from a month earlier to NT$10.86 billion, as its main subsidiaries — Fubon Life Insurance Co (富邦人壽) and Taipei Fubon Commercial Bank (台北富邦銀行) — reported that net profit fell 19 percent and 37 percent to NT$7.7 billion and NT$1.14 billion respectively, company data showed.
CTBC Financial Holding Co’s (中信金控) net profit declined 26 percent sequentially to NT$3.47 billion last month.
China Development Financial Holding Corp’s (CDF, 中華開發金控) net profit plummeted 64 percent to NT$1.03 billion, as subsidiaries KGI Bank (凱基銀行) and KGI Securities Ltd (凱基證券) reported that net profit plunged 44 percent and 84 percent to NT$250 million and NT$218 million respectively, corporate data showed.
Stock market volatility has risen amid rising COVID-19 infections from the middle of last month, affecting the two units’ investment operations and revaluation of their financial assets, CDF said in a statement.
Shin Kong Financial Holding Co (新光金控) reported a net loss of NT$1.85 billion as its main insurance unit, Shin Kong Life Insurance Co (新光人壽), posted a net loss of NT$2.28 billion, which was partially offset by a net profit of NT$449 million from its banking arm, Shin Kong Commercial Bank (新光銀行).
Shin Kong attributed the net loss to the New Taiwan dollar’s sharp appreciation last month, leading to foreign-exchange losses at its life insurer, it said.
Overall, the nation’s 15 financial conglomerates made a combined net profit of NT$32.67 billion, down 40 percent from a month earlier, but cumulative profit in the first five months surged 91 percent from a year earlier to NT$280 billion.
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Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day