Domestic Banks' First Four Months Profit Reaches NT$233.89 Billion, Highest Ever for the Period

Strong loan momentum has boosted profitability among Taiwan's domestic banks. According to statistics from the Financial Supervisory Commission (FSC), the cumulative pre-tax profit of domestic banks in the first four months of 2024 reached NT$233.89 billion, setting a new record for the same period in history and marking a year-on-year increase of 22.6% (NT$43.04 billion). The FSC attributed the growth primarily to loan expansion, declining U.S. dollar funding costs, and favorable financial market performance, which collectively increased income from interest, fees, and investments.

The FSC released the profitability figures for domestic banks today. Chu Chia-kuei, Deputy Director of the Banking Bureau, explained that the cumulative pre-tax profit for the first four months of 2024 amounted to NT$233.89 billion, the highest ever recorded for this period, reflecting a year-on-year increase of NT$43.04 billion, or 22.6%. The main drivers were loan growth, reduced U.S. dollar funding costs, and positive financial market trends that boosted interest, fee, and investment income.

Regarding branch performance, Chu noted that domestic branches, Offshore Banking Units (OBU), and overseas branches all posted year-on-year profit growth, while mainland China branches experienced a decline. This was mainly due to decreases in interest and net investment income.

Looking at monthly performance, domestic banks recorded a pre-tax profit of NT$59.61 billion in April 2024, the second-highest monthly profit in history, only surpassed by January 2024's record of NT$66.87 billion.

Chu further explained that April's profit increased by NT$2.97 billion month-on-month, primarily driven by OBU, which contributed a NT$4.18 billion increase. Domestic branches saw a slight decline of NT$180 million due to a high base in March and reduced interest and fee income. Overseas branches declined by NT$820 million due to higher loan loss provisions and lower fee and investment income. Mainland China branches declined by NT$220 million as all three revenue streams—interest, fees, and investment—inched downward. (Editor: Yang Kai-xiang)