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.
‘FINGERPRINTING’: The ‘private relay’ feature hides a user’s IP address by rerouting the Web connection through a third party, making it impossible to infer their identity Apple Inc on Monday said a new “private relay” feature designed to obscure a user’s Web browsing behavior from Internet service providers and advertisers would not be available in China for regulatory reasons. The feature was one of a number of privacy protections Apple announced at its annual software developer conference on Monday, the latest in a years-long effort by the company to cut down on the tracking of its users by advertisers and other third parties. Apple’s decision to withhold the feature in China is the latest in a string of compromises the company has made on privacy in a country
Apple Inc has hired Ulrich Kranz, a former senior executive at BMW AG’s electric vehicle (EV) division, to help lead its own vehicle efforts, people familiar with the situation said. The tech giant hired Kranz in recent weeks, about a month after he stepped down as CEO of Canoo Inc, a developer of self-driving EVs. Before cofounding Canoo, Kranz was senior vice president of the group that developed the i3 and i8 cars at BMW, where he worked for 30 years. Kranz is one of Apple’s most significant automotive hires, a clear sign that the iPhone maker is determined to build a
PLEDGE: The contract chipmaker said it would issue at least NT$2.5 a share each quarter and no less than NT$10 per share for the whole of this year Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, yesterday raised its proposed cash dividend for last quarter to NT$2.75 per share from NT$2.5 a year earlier, given the company’s increased earnings. That represents a payout ratio of about 51 percent based on its earnings per share of NT$5.39 in the first three months of this year. TSMC said that its board of directors approved the cash dividend distribution yesterday. The Hsinchu-based chipmaker reassured its investors that it intends to maintain a stable and sustainable dividend policy. The company said that it would issue at least NT$2.5 a share
TIMELY RAIN: Before the arrival of the seasonal plum rains late last month, the nation had gone almost a year without significant rainfall in catchment areas Timely plum rains have significantly alleviated a historic water shortage in Taiwan, allowing water restriction measures to be lifted in some areas, while the hardest-hit areas remain on alert, the Ministry of Economic Affairs (MOEA) said yesterday. “Thanks to Tropical Storm Choi-Wan, the sustained plum rains and continued water resource management efforts, the water situation in Taiwan has been greatly alleviated,” Minister of Economic Affairs Wang Mei-hua (王美華) told an online news conference. More than 100mm of rain has fallen in the catchment areas of the reservoirs in Miaoli and Taichung counties over the past few days, Water Resources Agency data