State-run financial holding companies saw their first-quarter profits slow from a year earlier, as their securities and insurance arms took a hit from market turbulence at home and abroad.
HUA NAN FINANCIAL
Hua Nan Financial Holding Co (華南金控) reported a net profit of NT$5.34 billion (US$178.42 million) for the first quarter, marking a 5.2 percent decline year-on-year due to weaker results from its securities and insurance subsidiaries. That translated into earnings per share of NT$0.39, company data showed.
Photo courtesy of Taiwan Cooperative Financial Holding Co
Despite this, core operations at main subsidiary Hua Nan Commercial Bank (華南銀行) remained healthy, with net income rising 3.3 percent to NT$5.21 billion, contributing 92 percent to total earnings, officials told an investors’ conference on Tuesday.
Mortgage lending retreated 80 percent, affected by the central bank’s credit controls.
The bank is to focus on policy-supported lending, such as first-home loans, and expects full-year growth in this segment to be modest, officials said.
Net interest margin improved to 0.71 percent in the first quarter and is expected to expand by about 10 basis points for this year, officials said, citing limited foreign currency exposure and anticipated rate cuts by the US Federal Reserve, which could bring down overall funding costs.
Non-banking subsidiaries underperformed. Hua Nan Securities Co’s (華南永昌證券) net profit plunged 50 percent to NT$215 million, while Hua Nan South China Insurance Co’s (華南產險) declined 16.8 percent to NT$332 million, officials said, citing poor investment income amid wild market swings.
Hua Nan Financial is cautiously optimistic about its earnings ahead, saying it has adjusted its investment strategy and the rise in the local currency could benefit the equity market for the rest of the year.
TAIWAN COOPERATIVE
Taiwan Cooperative Financial Holding Co (合庫金控) on Wednesday reported a net profit of NT$4.99 billion for last quarter, down 7.28 percent from a year earlier.
Taiwan Cooperative president Su Tso-cheng (蘇佐政) attributed the decline to softer results at its insurance and securities units.
The group’s life insurance arm, BNP Paribas Cardif TCB Life Insurance Co (合庫人壽), reported a net profit of NT$108 million, a slump of 63.76 percent, which was attributable to a stronger New Taiwan dollar, a product mix heavily weighted toward single-premium policies, and heightened market volatility, officials said.
For every NT$0.1 appreciation in the local currency, the company would incur NT$15 million in asset value losses, officials said.
The insurer is seeking regulatory approval to create a foreign exchange reserve, which would help mitigate the impact of currency fluctuations, officials said.
Subsidiary Taiwan Cooperative Securities Co (合庫證券) booked losses due to falling revenues from proprietary trading and brokerage operations, as market tumults drove investors to the sidelines, officials said.
However, losses began to narrow following a realignment of its investment portfolio, officials said, adding that the subsidiary aims to swing back to profit this year by focusing on dividend-oriented investment tools and adjusting bond holdings, officials said.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Meta Platforms Inc offered US$100 million bonuses to OpenAI employees in an unsuccessful bid to poach the ChatGPT maker’s talent and strengthen its own generative artificial intelligence (AI) teams, OpenAI CEO Sam Altman has said. Facebook’s parent company — a competitor of OpenAI — also offered “giant” annual salaries exceeding US$100 million to OpenAI staffers, Altman said in an interview on the Uncapped with Jack Altman podcast released on Tuesday. “It is crazy,” Sam Altman told his brother Jack in the interview. “I’m really happy that at least so far none of our best people have decided to take them
As they zigzagged from one machine to another in the searing African sun, the workers were covered in black soot. However, the charcoal they were making is known as “green,” and backers hope it can save impoverished Chad from rampant deforestation. Chad, a vast, landlocked country of 19 million people perched at the crossroads of north and central Africa, is steadily turning to desert. It has lost more than 90 percent of its forest cover since the 1970s, hit by climate change and overexploitation of trees for household uses such as cooking, officials say. “Green charcoal” aims to protect what
RSS