E.Sun Financial Holding Co (玉山金控) yesterday reported record first-quarter earnings, fueled by strong fee income, solid loan growth and buoyant capital markets activity, as the group accelerated expansions in wealth management and cross-border businesses.
The Taipei-based company posted a net income of NT$10.06 billion (US$319.49 million) for the January-to-March period, up 14.2 percent from a year earlier, or earnings per share of NT$0.62.
Growth was broad-based across its core subsidiaries, led by banking and securities operations.
Photo: Kelson Wang, Taipei Times
E.Sun Commercial Bank Ltd (玉山銀行) contributed NT$8.76 billion in net income, while E.Sun Securities Co (玉山證券) reported profit of NT$1.05 billion, more than double from a year earlier.
Its venture capital and asset management units also delivered record first-quarter performances, the company said.
Fee income remained the key growth driver, rising 27.1 percent year-on-year to NT$8.92 billion, E.Sun Financial said.
Wealth management income hit a record NT$4.03 billion, supported by continued expansion among high net worth clients, it said, adding that credit card fee income grew 16.5 percent, as spending reached an all-time high of NT$150.6 billion.
Lending momentum at the banking unit remained strong, with total loans growing 15.6 percent from a year earlier, the company said.
Corporate lending surged 22.6 percent, while consumer lending rose 9.3 percent, supported by resilient domestic demand and overseas expansion, it said.
E.Sun Commercial Bank’s net interest income climbed 28.5 percent in the first quarter, aided by improved funding cost management and optimized loan pricing.
The bank’s asset quality remained sound, with a non-performing loan ratio of 0.15 percent and a coverage ratio of 795.9 percent, reflecting prudent risk management, it said.
The bank’s overseas operations continued to gain traction, accounting for 26.3 percent of its total profit.
Loans extended by offshore units increased 25.6 percent year-on-year, highlighting the group’s expanding regional footprint, it said.
The bank’s Cambodian branch also strengthened its position in premium credit cards, ranking among the leading issuers of high-end cards in the local market, it added.
Meanwhile, E.Sun’s securities business benefited from a surge in market activity, with brokerage revenue nearly doubling from a year earlier.
The company said it plans to further expand its overseas sub-brokerage business to meet rising demand for global asset allocation.
E.Sun Asset Management Co (玉山投信), which launched its first bond exchange-traded fund in March and raised the largest amount among comparable offerings, would continue to roll out high-quality investment products, the company said.
Business momentum would extend into the second quarter, after cumulative net income for the first four months rose 26 percent year-on-year to NT$14.24 billion, the highest level for the same period, E.Sun Financial said.
The acquisition of Mercuries Life Insurance Co (三商壽) is progressing smoothly following shareholder approval in January and regulatory clearance last month, it said, adding that the deal is expected to be completed next quarter.
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