Fubon Financial Holding Co (富邦金控) yesterday signaled confidence earnings momentum could accelerate further this year, after its profit for the first four months surpassed its full-year performance last year, driven by a rally in Taiwanese and US equities, and strong contributions from its insurance, banking and brokerage businesses.
Fubon Financial president Jerry Harn (韓蔚廷) took a bullish tone on profitability and dividend prospects during the company’s earnings conference in Taipei, citing robust investment gains linked to Taiwan’s artificial intelligence (AI) supply chain, as well as improving recurring returns at its life insurance arm.
First-quarter net profit stood at NT$33.55 billion (US$1.07 billion), or earnings per share of NT$2.4. Cumulative adjusted profit — including gains from fair value through other comprehensive income — reached NT$121.46 billion in the first four months.
Photo: CNA
This implies earnings per share of NT$8.67, already exceeding last year’s performance and positioning the group as a sector leader in profitability, Harn said.
The standout driver was Fubon Life Insurance Co (富邦人壽), whose investment performance benefited significantly from the AI-driven rally in Taiwanese equities.
The life insurer’s domestic equity portfolio delivered a return of 40.18 percent year-on-year, lifting its overall first-quarter investment yield to 6.46 percent on total assets of NT$5.25 trillion.
Harn said Fubon Life’s investment strategy remains unchanged and reiterated strong confidence in Taiwan’s AI hardware supply chain.
At the same time, he highlighted improving hedging efficiency and a stronger recurring yield profile in the insurer’s operations.
The life unit is expected to have greater capacity to upstream profits to the holding company, supported by a solid capital position, he added.
Fubon Financial said its banking unit, Taipei Fubon Commercial Bank Co (台北富邦銀行), delivered record results in the first quarter, posting a net profit of NT$12.16 billion, up 20.2 percent annually and a record high.
The banking unit’s growth was driven by favorable Taiwan-US interest rate spreads, steady loan expansion — particularly in foreign currency and corporate lending — and continued strength in net interest income, the company said.
Wealth management fees, supported by strong demand for funds, structured products and overseas equities, provided an additional earnings engine, it said.a
Fubon Financial’s brokerage operations were equally robust amid a buoyant equity market.
In the first quarter, Fubon Securities Co (富邦證券) reported a 154.2 percent surge in net profit, driven by rising trading volumes, record margin lending balances and strong growth in cross-border brokerage services, it said.
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