TS Financial Holding Co (台新新光金控) yesterday said it is positioned for growth this year, driven by robust global demand linked to artificial intelligence (AI) and stable domestic economic conditions.
The group also plans a series of subsidiary mergers to improve its competitive position across banking, securities and insurance, it said at an earnings conference in Taipei.
TS Financial president Welch Lin (林維俊) said that the surge in AI-related demand, combined with steady economic growth in Taiwan, is expected to increase corporate borrowing, trade finance activity and capital expenditure.
Photo: Kelson Wang, Taipei Times
The developments would create opportunities for the company to expand lending, wealth management and other financial services, Lin said.
Two securities subsidiaries of the group are scheduled to merge on Monday next week, creating Taiwan’s fourth-largest brokerage by market share, he said.
TS Financial has already completed mergers of the group’s investment trust and life insurance units, he said.
Banking subsidiary integrations are progressing on schedule, with completion targeted by the end of this year, Lin said.
“These integrations are designed to position TS Financial as a top-tier international financial institution,” he said.
TS Financial reported net profit of NT$37.4 billion (US$1.17 billion) last year, or earnings per share of NT$1.91, up 86 percent from the previous year.
Its banking arm, Taishin International Bank Co (台新銀行), posted interest income of NT$33.9 billion, a 15.3 percent year-on-year increase, while fee income rose 17.3 percent to NT$17.1 billion, primarily from its wealth management and credit card operations.
Total income for the bank surged 37 percent to NT$25.3 billion following the integration of Shin Kong Commercial Bank Co (新光銀行) in July last year.
Life insurance operations also delivered strong results last year, with the combined income of Taishin Life Insurance Co (台新人壽) and Shin Kong Life Insurance Co (新光人壽) rising more than fivefold to NT$7.7 billion.
Foreign currency-denominated policies accounted for 68 percent of first-year premiums, enhancing asset-liability matching and reducing hedging costs, Lin said.
On dividend policy, Lin said that the focus was on stable, predictable growth rather than a fixed payout ratio.
The group plans a higher payout this year, primarily in cash, pending board approval, he said.
Amid geopolitical uncertainties in the Middle East, TS Financial is taking a cautious “wait-and-see” approach, Lin said.
While market participants are bracing for a prolonged conflict and heightened inflationary pressures, the group reiterated confidence in Taiwan’s mid to long-term economic outlook.
Equity exposure has been temporarily reduced amid ongoing uncertainties, but the company plans to increase its holdings later, focusing on long-term growth opportunities, Lin said.
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