Fubon Financial Holding Co (富邦金控) yesterday said it is eyeing profit growth this quarter and next year, despite rising uncertainty in the macro-operating environment as the specter of tariffs rises.
The Taipei-based conglomerate posted NT$121.31 billion (US$3.73 billion) in net income in the first three quarters of this year, or earnings per share (EPS) of NT$8.61, the best among local peers.
In the first 10 months, net income rose to NT$130.29 billion and EPS advanced to NT$9.27, Fubon Financial said, adding that the results represented the second-best on record for the period, with its major subsidiaries all contributing.
Photo courtesy of Fubon Financial Holding Co
“We expect the profit momentum to sustain this quarter and next year,” Fubon Financial president Jerry Harn (韓蔚廷) told an online investors’ conference.
The company is preparing its budget for next year and would supply more detailed guidance at the next earnings conference, he said.
Fubon Financial wouuld cautiously navigate the fast-changing global scene after US president-elect Donald Trump unveiled a tariffs policy that would have repercussions around the world, Harn said.
“It is too early to pass judgement on the Trump effect at this juncture ... but the incoming Trump administration would surely put his pledges into action,” Harn said.
Overall, financial markets would fare well next year, if the US Federal Reserve further lowers interest rates, spurring loan demand and lending support for private consumption, the company said.
Fubon Financial said that its banking unit, Taipei Fubon Bank (台北富邦銀行), reported record net income of NT$25.1 billion in the first three quarters, already surpassing last year’s total, thanks to increases in interest and fee income from advances in its wealth management, financial trading and credit card businesses.
The bank’s outstanding loans rose 10 percent in the first three quarters from the same period last year, with double-digit percentage increases in commercial and retail lending, Fubon Financial said.
It aims to moderately expand mortgage operations next year to people with investment needs, it said, adding that such loans are secure and promise higher interest rates.
Net interest margin would hold steady with a positive bias moving forward, in line with portfolio adjustments and despite the expected interest rate cuts, it said.
Fubon Financial’s insurance unit, Fubon Life Insurance Co (富邦人壽), reported NT$77.92 billion in net income in the first nine months, with its 15.6 percent gain in first-year premiums outperforming peers, the group said.
The insurance arm elevated its ratio of pay-in-installment policies to 58.1 percent, which is more healthy for long-term business, it said.
Stock market rallies in Taiwan and overseas prompted Fubon Life to extract its profit and bolster its investment returns, and the unit would seek to redeploy its funds when the opportunity arises, Fubon Financial said.
The group would set aside more money for cash dividends next year after considering its capital adequacy and business needs, it added.
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