KGI Financial Holding Co (凱基金控) yesterday said its earnings momentum would remain strong this year, supported by continued expansion at its core banking, securities and insurance businesses.
Integration among subsidiaries — including KGI Bank Co (凱基銀行), KGI Securities Ltd (凱基證券) and KGI Life Insurance Co (凱基人壽) — is gradually generating synergies that are expected to further enhance profitability, company president Paul Yang (楊文鈞) said.
For the first two months of this year, the group posted net profit of NT$9.66 billion (US$302.14 million), or earnings per share of NT$0.57. It reported net profit of NT$30 billion last year, or NT$1.74 per share, mainly driven by strong performances at its key subsidiaries.
Photo: CNA
Geopolitical tensions in the Middle East have increased volatility in global financial markets, prompting the company to bolster risk management while improving operational efficiency, Yang said.
Despite the uncertainty, its subsidiaries have maintained solid business momentum, supporting management’s goal of sustaining long-term growth, he said.
KGI Bank and KGI Securities together generated NT$6.09 billion in profit in the first two months, a 137 percent increase from a year earlier, providing a strong foundation for overall profitability and future dividend payouts, he added.
KGI Bank reported a 22 percent year-on-year growth in net profit last year to NT$6.8 billion, with wealth management fee income rising 24 percent and lending increasing 11 percent.
The bank opened a Hong Kong branch in July last year, and has attracted nearly 350 clients and accumulated NT$15 billion in deposits since then.
KGI Securities reported net income of NT$11.51 billion last year, with return on equity reaching 17.3 percent — outperforming many peers in Taiwan.
It maintained its No. 2 position, with an 11.2 percent market share, generating stable fee income.
KGI Life posted net income of NT$15.8 billion last year. Excluding a one-off move in December last year to allocate 30 percent of pretax income to foreign-exchange volatility reserves, annual profit would have exceeded NT$20 billion, the company said.
First-year premiums rose 33 percent to NT$77.27 billion last year, driven by strong demand for protection-type policies, US dollar-denominated products and investment-linked insurance.
The insurer maintained a conservative asset allocation strategy while increasing foreign-exchange reserves to bolster its buffer against currency fluctuations.
Its foreign-exchange reserve provisions at the end of last year were NT$43.3 billion, company data showed.
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