The financial sector last month showed early signs of profit recovery as a modest depreciation of the New Taiwan dollar, dividend inflows and capital gains helped offset losses from market volatility and foreign exchange swings in the first half of the year.
Overall results suggest the sector is beginning to stabilize, but only four financial holding companies — E.Sun Financial Holding Co (玉山金控), SinoPac Financial Holding Co (永豐金控), First Financial Holding Co (第一金控) and Hua Nan Financial Holding Co (華南金控) — posted profits exceeding those in the same period last year.
The four groups are primarily banking-focused, allowing them to benefit from steady interest income and loan growth. In contrast, firms with large life insurance operations continue to face greater profit volatility, driven by market fluctuations and foreign exchange risks.
Photo: CNA
Fubon Financial Holding Co (富邦金控) maintained its leading position among peers, topping monthly income, year-to-date profit and earnings per share (EPS), company data showed.
The Taipei-based firm reported a net profit of NT$11.03 billion (US$367.35 million) for last month, taking its cumulative earnings for the year to NT$62.37 billion, or EPS of NT$4.29.
Fubon Life Insurance Co (富邦人壽) contributed NT$5.93 billion, supported by dividend inflows, while Taipei Fubon Bank (北富銀行) generated NT$2.96 billion, buoyed by an 11 percent increase in interest income and a 12 percent rise in fee income compared with the previous year.
Most publicly listed firms in Taiwan issue dividends from June to August, providing additional income boosts during the period.
Cathay Financial Holding Co (國泰金) was second, reporting net profit of NT$9.02 billion for last month and cumulative income of NT$54.77 billion for the first seven months, or EPS of NT$3.50. The group’s banking arm, Cathay United Bank (國泰世華銀行), was the primary growth driver, posting NT$4.21 billion last month and NT$27.59 billion year-to-date, helped by lending activity and improved funding cost management.
CTBC Financial Holding Co (中信金) was third with NT$5.84 billion in income last month and NT$41.68 billion for the year so far, or EPS of NT$2.08. Its core subsidiary, CTBC Bank (中國信託銀行), contributed NT$4.42 billion last month and NT$32.18 billion year-to-date, a 19 percent increase year-on-year.
TS Financial Holding Co (台新新光金控) affirmed its capital adequacy after its recent merger with the unprofitable Shin Kong Financial Holding Co (新光金控). The combined entity posted NT$3.62 billion in net income for last month and NT$13.84 billion for the first seven months, or EPS of NT$0.92.
Among state-run firms, Mega Financial Holding Co (兆豐金控) led with NT$22.44 billion in profit for the first seven months, or EPS of NT$1.51, although that was an 8.7 percent decline compared with the same period last year.
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