O-Bank: Q1 Profit Up 49% YoY, Aims to Apply for Kaohsiung Zone Entry by Year-End

(Central News Agency, Taipei, 14th) O-Bank announced today that its consolidated net profit after tax for the first quarter of this year was NT$1.232 billion, a 49% increase from the same period last year. The bank is cautiously optimistic about its full-year profit performance, especially from its Hong Kong branch and OBU (Offshore Banking Unit), which have better interest spreads. It has also begun the application process for a "Wealth Management 2.0" license and plans to apply to establish a presence in the Asia New Bay Area's Kaohsiung zone by the end of the year.

O-Bank held its Q1 online institutional investor conference today, reporting a consolidated net profit after tax of NT$1.232 billion, up 49% from the same period last year. Its main subsidiary, Taiwan Financial Holding Co., reported a Q1 net profit after tax of NT$640 million, up 61% YoY, while its US subsidiary, Industrial Bank of Taiwan, USA, reported a Q1 net profit after tax of NT$89 million, down 2% YoY.

O-Bank explained that in terms of its individual financial performance, O-Bank's individual net profit after tax was NT$766 million, a 43% YoY increase, with earnings per share (EPS) of NT$0.28, up 47% YoY.

O-Bank President Lee Fang-Yuan explained that the strong Q1 profit performance was mainly due to the bank's continued optimization of its deposit structure and improvement in net interest income, as well as benefiting from the significant growth of its subsidiary Taiwan Financial Holding Co. due to its lower funding costs, and the stabilization of its reinvested leasing business.

Regarding future business development strategies, Lee said the main focus remains on becoming a "boutique digital bank," while also hoping to continue promoting light-capital businesses, implementing digital transformation, strengthening the balance sheet structure, enhancing sustainable development competitiveness, and accelerating overseas expansion. This includes accumulating customer relationships and early-stage assets in Australia, accelerating the process of upgrading the Sydney representative office to a branch, exploring the Southeast Asian market, and establishing strategic alliance networks.

Lee mentioned that he is cautiously optimistic about the profit outlook for this year, with momentum coming from the Hong Kong branch and OBU, whose interest spreads are better than the head office. In terms of dividend income, there were small gains in the first quarter, and more dividend income is expected to contribute in the second and third quarters.

Lee explained that there is still significant room for growth in wealth management, TMU (Treasury Marketing Unit), and syndicated loan fees, hence the optimistic outlook for the year after the second quarter. Of course, with the current overheating of the stock market, the bank will continue to pay attention to risk management.

Lee added that the application process for the "Wealth Management 2.0" license has been initiated, and there are plans to apply for entry into the Asia New Bay Area's Kaohsiung zone, with the application expected to be submitted by the end of this year. Currently, most wealth management clients fit the target profile for "Wealth Management 2.0." After obtaining the license and entering the Kaohsiung zone, the bank hopes to promote more investment and financial products to high-net-worth clients and to provide comprehensive services, including investment management, tax, and family insurance planning. (Editor: Lin Shu-yuan) 1150514