Buoyant Taiwan Stock Market Drives 13 Financial Holding Companies to Record NT$291.4 Billion Profit in First 4 Months, a New High for the Period

(CNA, Taipei, 14th, by reporters Lu Yen-tzu and Su Su-yun) The April profits for financial holding companies have been announced. Driven by a buoyant Taiwan stock market and active capital markets, the overall profit performance was pushed up. The April profit for 13 listed financial holding companies broke through NT$103.3 billion, and the cumulative after-tax earnings for the first four months reached a total of NT$291.488 billion, setting a new record high for the same period in history, with a year-on-year increase of nearly 80%.

The April profits for the 13 financial holding companies are out. Benefiting from the rise in both price and volume of Taiwan stocks, a hot capital market, and the steady expansion of deposits and loans in banking subsidiaries, which continuously increased net interest income, the total after-tax earnings in April reached NT$103.3 billion, a staggering 4.5-fold increase year-on-year. This is mainly due to the lower base period in the same period last year when the financial industry faced the impact of a global stock market crash.

For the first four months, the overall performance of listed financial holding companies saw cumulative after-tax net income reach NT$291.488 billion, an increase of 79.65% year-on-year, also breaking the previous high record of NT$247.537 billion for the same period in 2021. Among them, Fubon Financial, Yuanta Financial, CTBC Financial, Taishin-Shin Kong Financial, E.Sun Financial, Mega Financial, and Hua Nan Financial, and Cooperative Bank Financial all saw their cumulative profits hit new highs for the same period in their history.

Fubon Financial's April after-tax net income was NT$38.82 billion, marking its strongest single-month record. Cumulative after-tax net income for the first four months was NT$72.08 billion, with earnings per share (EPS) of NT$5.15, firmly holding the top spot among financial holding companies. The single-month and cumulative figures for its banking, property & casualty insurance, securities, and investment trust businesses also set new highs for the same period. Fubon Life Insurance made a huge profit of NT$30.95 billion in April, mainly benefiting from the high-flying Taiwan stock market and rising US stocks, which resulted in valuation gains on financial assets.

Cathay Financial's April after-tax net income was NT$14.27 billion, a new high for a single month in the same period. Cumulative after-tax net income reached NT$45.93 billion, with an EPS of NT$3.12. The cumulative after-tax net profits of its banking, property & casualty insurance, securities, and investment trust subsidiaries all set new highs for the same period. Cathay Life Insurance's April profit was NT$8.57 billion, with a cumulative profit of NT$25.94 billion, mainly benefiting from the rebound in capital markets, which drove up the valuation of financial assets. Cathay United Bank's April profit was NT$43.3 billion, with a cumulative profit of NT$17.53 billion, a 10% year-on-year growth.

Driven by the hot stock market trading and active capital markets, Yuanta Financial's self-reported after-tax net income in April reached NT$7.504 billion. The cumulative after-tax net income was NT$21.913 billion, setting a new historical record, a growth of 145% compared to the same period last year, with an EPS of NT$1.64. Its per-share profit performance surpassed CTBC Financial, ranking third among listed financial holding companies.

CTBC Financial's April after-tax earnings were NT$5.395 billion, with cumulative earnings for the first four months of NT$28.499 billion and an EPS of NT$1.46. CTBC stated that CTBC Bank saw strong demand for funds in April and robust momentum in its lending business. As per regulations, it needed to set aside relevant provisions, leading to a single-month profit of NT$4.319 billion. Cumulative profit for the first four months was NT$20.904 billion, a 17% year-on-year growth, with the net interest margin continuing to expand and strong momentum in all business lines.

Taishin-Shin Kong Financial's April profit was NT$7.79 billion, with the first four months' profit at NT$28.85 billion, a 3.8-fold increase compared to the pre-merger Taishin Financial last year, with an EPS of NT$1.12. Subsidiaries Taishin Bank and Shin Kong Bank had cumulative after-tax net profits of NT$8.08 billion and NT$3.05 billion, respectively, continuing to set new highs for the period. Shin Kong Life's cumulative after-tax net profit was NT$15.18 billion, with stable profits. The securities subsidiaries' combined cumulative after-tax net profit was NT$5.15 billion, also a new high for the period.

E.Sun Financial's self-reported April after-tax net income was NT$4.893 billion, with cumulative after-tax net income of NT$15.833 billion, continuing to write a new high record, and an EPS of NT$1.09, also a historical high. E.Sun Financial stated that the record-high cumulative profit was mainly driven by the profit performance of its core subsidiaries, with April's after-tax net income increasing by 78% month-on-month, attributed to the strong performance of the capital markets.

KGI Financial's April profit was NT$5.898 billion, with cumulative profit of NT$17.587 billion and an EPS of NT$1.04. KGI Financial stated that since the beginning of this year, the Taiwan stock market has repeatedly hit new highs. The active market, along with the bank, securities, and life insurance businesses seizing market momentum, drove profits. KGI Securities' cumulative profit was NT$9.756 billion, a new high for the same period. KGI Bank's first four months' profit was NT$2.881 billion, up 27% year-on-year. KGI Life's cumulative profit was NT$6.085 billion.

SinoPac Financial's self-reported April after-tax net income was NT$4.184 billion, with cumulative after-tax net income of NT$14.241 billion, a new high for the same period, with an EPS of NT$0.88.

As for the four major state-owned financial holding companies, Mega Financial's April profit was NT$4.857 billion, with cumulative profit of NT$14.254 billion, a new high, and an EPS of NT$0.96, continuing to lead the state-owned pack. Hua Nan Financial's April after-tax net income was NT$3.454 billion, with cumulative after-tax net income of NT$11.114 billion, a new high, and an EPS of NT$0.8. First Financial's April after-tax net income was NT$3.158 billion, with cumulative after-tax net income of NT$11.401 billion, a 23% year-on-year growth, and an EPS of NT$0.79. Cooperative Bank Financial's April after-tax net income was NT$2.565 billion, with cumulative after-tax net income of NT$8.377 billion, a new high, and an EPS of NT$0.51. (Editor: Lin Chia-hsien) 1150514