Taiwan’s 14 financial holding companies collectively earned NT$60.2 billion (US$2.06 billion) last month, bouncing back from a NT$6.8 billion loss in May, on the back of regulatory easing and a rebound in market-related income.
Aggregate first-half earnings reached NT$219.2 billion, representing a 35 percent retreat from a year earlier, as companies grappled with volatile markets and a strengthening New Taiwan dollar.
Only four of the 14 posted year-on-year growth, while one — Shin Kong Financial Holding Co (新光金控) — remained in the red.
Photo: CNA
Fubon Financial Holding Co (富邦金控) retained its lead, with net income of NT$51.3 billion in the first half, or earnings per share of NT$3.49 — the highest among its peers, company data showed.
Net income last month reached NT$11.85 billion, the data showed.
Cathay Financial Holding Co (國泰金控) followed with NT$45.8 billion in first-half profit and NT$7.1 billion last month, its financial statement showed.
However, CTBC Financial Holding Co (中信金控) outpaced Cathay in monthly earnings, with NT$11.2 billion last month, but trailed in first-half income at NT$35.8 billion, it said.
The industry rebound was largely supported by relief measures from the Financial Supervisory Commission, which allowed insurers to calculate foreign-
exchange losses using a six-month average rate instead of the end-June spot rate, helping soften the impact of the NT dollar’s rapid appreciation.
Life insurers also tapped into the newly permitted foreign-
exchange volatility buffer by reclassifying liabilities and other reserves, easing the pressure on foreign currency-based bond portfolios. Dividend payouts from local firms and a recovery in investment income further lifted results.
Shin Kong Financial stood out as the sole money-loser, reporting a first-half loss of NT$29.5 billion even after a profit of NT$1.67 billion last month.
The company allocated NT$61.1 billion to foreign-exchange reserves to guard against continued currency volatility, it said.
Yuanta Financial Holding Co (元大金控), with a strong presence in securities, saw profits last month rise nearly eightfold to NT$6.54 billion, aided by a NT$2.68 billion gain at its life insurance arm from recovering liability reserves.
It posted NT$1.25 in earnings per share for the first half, company data showed.
Bank-oriented firms with lower exposure to foreign assets — such as E.Sun Financial Holding Co (玉山金控), First Financial Holding Co (第一金控), SinoPac Financial Holding Co (永豐金控) and Hua Nan Financial Holding Co (華南金控) — were among the few to record annual profit growth, their financial statements showed.
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