Taishin Shin Kong FHC Chairman Wu: Strong AI Momentum, Expects Taiwan's Economic Growth to Exceed 10% This Year

(Central News Agency, Reporter Lu Yen-tzu, Taipei, June 12) Taishin Shin Kong Financial Holding Co. (Taishin Shin Kong FHC) Chairman Wu Tung-liang stated that last year the company's earnings per share (EPS) reached NT$1.91, and it plans to distribute NT$1.1 per share in dividends. Despite multiple uncertainties this year, the strong momentum of artificial intelligence (AI) leads him to be optimistic that Taiwan's economic growth rate will exceed 10% and the capital market will remain active.

Taishin Shin Kong FHC was merged on July 24 last year and held its first annual general meeting of shareholders this morning following the merger of the two financial holding companies. In his address, Chairman Wu noted that the past year has been historically significant for Taishin Shin Kong FHC. Following the merger, the company's total assets have risen to become the fourth-largest financial holding company in Taiwan. On this foundation, the integration of various subsidiaries is ongoing, allowing the long-cultivated professional advantages of each business unit to combine and create greater value.

Chairman Wu reviewed last year, stating that Taiwan benefited from strong demand for AI applications, with total exports reaching a record high. The annual economic growth rate was 8.68%, the highest in 15 years, which drove a vibrant financial market. With the support of all shareholders and the joint efforts of all employees, Taishin Shin Kong FHC also saw steady growth in its core businesses.

Chairman Wu detailed that last year, Taishin Shin Kong FHC's net profit after tax reached NT$37.4 billion, with an EPS of NT$1.91. The company plans to distribute a cash dividend of NT$1.0 per share and a stock dividend of NT$0.1 per share, totaling NT$1.1 per share, sharing the operational results with shareholders.

Looking ahead to this year's economic situation, Chairman Wu stated that although the world still faces uncertainties such as geopolitics, tariff policies, and energy prices, the AI industry's momentum is strong. Taishin Shin Kong FHC is optimistic that Taiwan's economic growth rate has the potential to exceed 10% this year, and the capital market is expected to remain active.

Chairman Wu said that under the continued fermentation of the macroeconomic environment and the benefits of the Taishin Shin Kong FHC merger, net profit after tax for the first quarter of this year reached NT$21 billion, a year-on-year increase of 345%, setting a new historical high. The company will continue to maintain a cautiously optimistic attitude and continue to create better returns for shareholders.

Taishin Shin Kong FHC President Lin Wei-chun explained five business strategies and plans. First, to continue deepening the synergies of group integration, building a diversified profit engine centered on banking, insurance, and securities to form a more balanced and competitive operational structure.

Second, in the life insurance business, to continue accumulating Contractual Service Margin (CSM) for new contracts while refining asset allocation and investment management capabilities. Under the premise of strict risk control and maintaining stable business growth, the company aims to further optimize its capital structure and enhance long-term operational stability.

President Lin stated that third, by combining the market-leading advantages of digital bank Richart with the group's deep customer base, the company will comprehensively expand the application of big data analytics and AI technology to provide comprehensive financial solutions. Fourth, to actively respond to the Asian Asset Management Center policy, formulate development strategies, and seize opportunities for financial industry upgrading and internationalization. Finally, to deepen ESG governance by internalizing the concept of sustainability as the core of operational decision-making.

Regarding the progress of the bank subsidiary merger, President Lin explained after the meeting that the insurance, securities, and investment trust subsidiaries have all completed their mergers. For the bank subsidiary, the target remains a merger by the end of this year. The company will organize the data and submit application documents to the competent authority soon. The final confirmed merger date will be subject to the approval of the competent authority.

As for future dividend policy, President Lin stated that it will reference factors such as profitability, dividend distribution by major peers, and reasonable shareholder expectations. He also emphasized a desire to avoid drastic fluctuations in dividends, for example, distributing a lot when profits are high one year and cutting them when growth is poor the next. A proposal is expected to be submitted to the board of directors early next year for approval. (Editor: Chang Chun-mao) 1150612