Taiwan’s largest financial holding companies last month reported a pickup in business and earnings ability attributable mainly to interest rate hikes, skillful management and post-COVID-19 pandemic revenge spending.
Fubon Financial Holding Co (富邦金控) yesterday posted a net income of NT$4.05 billion (US$125.2 million) for last month, as its main subsidiary, Fubon Life Insurance Co (富邦人壽), booked investment gains as well as benefited from dividend incomes and inflated value in US dollar-based assets, it said. The life insurer said it raised positions in US debts to boost fixed income guaranteed by high interest rates.
Taipei Fubon Bank (台北富邦銀行) said it generated a record high of NT$1.94 billion in net income on the back of healthy loan demand and widening interest spread.
Photo: courtesy of Fubon Financial Holding Co
Growth momentum in credit card spending and wealth management was also sustained, as people embarked on overseas travel and displayed more interest in investment tools that feature high yields and low risks, it said.
In the first 10 months, Fubon Financial amassed NT$71.83 billion of net profit, or earnings of NT$5.25 per share, making it the most profitable among peers.
Cathay Financial Holding Co (國泰金控) finished second with a cumulative income of NT$65.22 billion, or an EPS of NT$4.18 for the same period, it said yesterday. Net profit last month stood at NT$5.82 billion, beating peers by absolute amount.
The flagship subsidiary, Cathay Life Insurance Co (國泰人壽), contributed NT$3.02 billion, accounting for nearly 52 percent, it said. The company attributed the impressive showing to capital gains, regular incomes and foreign exchange benefits. Cathay Life is the landlord of landmark buildings across Taiwan that generate hefty rent incomes.
CTBC Financial Holding Co (中信金控) posted a net income of NT$5.0 billion last month, representing a 12.29 percent spike from a year earlier, it said Thursday.
Its banking arm, CTBC Bank (中國信託銀行), played the main growth driver by contributing NT$3.41 billion, or 68 percent, the bank-oriented conglomerate said.
In the first 10 months of this year, net income soared 59.19 percent year-on-year to NT$53.59 billion, sending its cumulative earnings to a new high of NT$2.69 per share, thanks to robust loan demand, stable wealth management business and strong trading gains.
State-run Mega Financial Holding Co (兆豐金) bucked the uptrend with a 6 percent decline in net income at NT$1.79 billion.
The lackluster performance came after its stock brokerage, Mega Securities Co (兆豐證券), incurred losses of NT$202 million due to a TAIEX rout induced by capital outflows.
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