CTBC Financial Holding Co (中信金控) yesterday said it is cautiously optimistic about profit growth this year, citing resilient economic conditions and improving business momentum after posting record earnings last year.
Cumulative net profit for the first two months of this year was NT$15.53 billion (US$487.67 million), or earnings per share (EPS) of NT$0.80, company data showed.
Its core banking business had solid growth momentum, supported by expansion in net interest margin, along with robust loan demand and wealth management activity, the company said.
Photo: CNA
Credit card spending also increased, helping lift interest and fee income, it said.
Its life insurance operations also showed improvements, it said.
New policy premiums totaled NT$24 billion in the first two months, up 192 percent from the same period last year, the company said.
Last year, CTBC Financial’s net profit was a record high NT$80.6 billion, or EPS of NT$4.08, providing a 16.9 percent return on equity, the best among Taiwan’s financial holding firms.
As Taiwan’s economy is benefiting from the rapid expansion of artificial intelligence applications and better-than-expected export demand, “the central bank is likely to keep interest rates unchanged this year, which would help maintain stability in the domestic financial environment,” CTBC Financial president Rachael Kao (高麗雪) said.
Among its major subsidiaries, CTBC Commercial Bank Co (中信銀行) delivered robust results last year, reporting net profit of NT$57.3 billion, up 16 percent from the previous year and marking a record high, the holding company said.
The bank’s interest income surged nearly 22 percent year-on-year, supported by expanding loans and deposits, as well as widening interest spreads, it said.
Fee income climbed about 11 percent as wealth management, corporate banking and credit card businesses all posted solid growth, it said.
Overseas operations also performed well, generating NT$23.7 billion in profit, up 16 percent from the previous year and accounting for more than 30 percent of the bank’s total earnings, it added.
Taiwan Life Insurance Co (台灣人壽), the group’s main insurance arm, posted net profit of NT$20.8 billion last year, down 3 percent from 2024, it said.
Kao attributed the decline to regulatory changes that required the insurer to allocate NT$8.5 billion — about 30 percent of its earnings — to a foreign exchange reserve fund to prepare for potential currency fluctuations.
The reserve balance has increased to NT$27.9 billion, she added.
Stripping out the additional provision, Taiwan Life’s profit would have grown by about 20 percent last year, as new policy premiums rose 54 percent year-on-year, Kao said.
The insurer increased its stake in equities, including private equity funds, generating higher capital gains, she said.
Taiwan Life plans to deepen distribution channels and launch more diversified products to drive growth in investment-linked insurance policies, Kao said.
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