Fubon Financial Holding Co (富邦金控) at an earnings conference yesterday said it is well-positioned to adopt the new IFRS 17 international accounting rules next year, thanks to its stable profitability and financial health.
The conglomerate’s flagship unit, Fubon Life Insurance Co (富邦人壽), would have no difficulty complying with the new system, the goals of which are to provide a more economic valuation of insurance assets and liabilities, increase comparability across companies and improve transparency, Fubon Financial said.
Notably, valuations of assets and liabilities would be based on the market, rather than historic or book value, the company said.
Photo: CNA
Fubon Life last year generated a record net income of NT$102.66 billion (US$3.11 billion) on the back of stock rallies in Taiwan and overseas, although bond holdings incurred losses of NT$444 million, it said.
The firm’s unrealized gains amounted to NT$90 billion in late December last year, but eased to NT$70 billion last month due to global stock routs, it added.
Fubon Financial president Jerry Harn (韓蔚廷) said the conglomerate would adopt a cautious strategy this year in dealing with market volatility.
“US President Donald Trump appears flexible, but [is] unpredictable over his trade policy,” Harn said. “It is better to raise cash positions and join the market when investment opportunities arise.”
Cash holdings rose NT$50.4 billion to NT$245.2 billion last year, company data showed.
Altogether, the insurance unit saw local shares generate NT$154.6 billion of profit last year, soaring 2.35 times from a year earlier and suggesting an annual return of 24.76 percent.
Fubon Financial reported a net profit of NT$150.82 billion last year, with earnings per share of NT$10.77.
Harn said the company would decide later on dividends, which would reflect last year’s earnings improvement and potential capital needs for future development.
In related news, O-Bank Co (王道商業銀行) yesterday said its office in Singapore would begin operations next quarter to tap into business opportunities in ASEAN markets.
The bank’s representative office in Sydney, Australia, is also seeking to upgrade into a banking branch, O-Bank president Elton Lee (李芳遠) said.
The bank reported a record profit of NT$3.89 billion last year, with earnings per share of NT$1. Its loan-to-deposit ratio grew from 68.37 percent in 2023 to 71.38 percent, while net interest income margin increased 5 basis points to 0.81 percent.
Loans to consumers and small enterprises underpinned profit growth, but bad loan ratios remained low at 0.12 percent, suggesting robust asset quality, and is favorable for the bank’s bid to become a boutique lender in Taiwan’s crowded banking market.
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