Insurance-focused financial holding companies last month saw milder earnings growth compared with a year earlier, while their banking-focused peers reported steep declines in earnings, several companies’ earnings results released last week showed.
The latest data showed that insurance-focused firms’ earnings growth was less robust than a month earlier mainly due to lower dividend income and investment gains, as well as foreign exchange losses after the New Taiwan dollar gained 1.35 percent against the US dollar last month.
Fubon Financial Holding Co (富邦金控) reported net profit of NT$4.1 billion (US$141.48 million) for last month, which was flat from a year earlier, but down 69.1 percent from the NT$13.27 billion it earned a month ago.
Photo: Kelson Wang, Taipei Times
However, the company’s net profit in the first nine months of the year still led its peers at NT$68.11 billion, up 27 percent year-on-year. That translated into earnings per share of NT$6.37, a record high for the nine-month period in the company’s history.
That was mainly driven by its insurance arm, Fubon Life Insurance Co (富邦人壽), which saw its cumulative profit in the first nine months rise 65 percent annually to NT$45.2 billion on the back of solid investment gains.
Cathay Financial Holding Co (國泰金控) reported net profit of NT$4.68 billion for last month, the highest among its peers. However, the figure was lower than the NT$12.79 billion it reported in August.
In the first nine months, Cathay Financial’s cumulative profit came in at NT$64.37 billion, up 23.5 percent from a year earlier and lagging only behind Fubon Financial. Its earnings per share were NT$4.55, company data showed.
Its main profit-making engine, Cathay Life Insurance Co (國泰人壽), reported net profit of NT$2.54 billion for last month, up 20 percent from a year earlier, thanks to first-year premiums of NT$12.7 billion last month that led other insurers.
Last month, the insurance unit set aside an additional NT$2 billion in foreign-exchange volatility reserve that slightly pared its profit.
So far this year, Cathay Life has set aside a total of NT$7 billion in foreign-exchange volatility reserves, topping its peers as the NT dollar’s appreciation trend continues.
Overall, Cathay Life’s cumulative profit rose 46.6 percent to NT$44.81 billion in the first nine months, company data showed.
CTBC Financial Holding Co’s (中信金控) net profit rose 60 percent year-on-year to NT$4.18 billion last month on the back of a 53 percent profit increase of its subsidiary, Taiwan Life Insurance Co (台灣人壽保險). However, last month’s figure was still lower than the previous month’s due to less dividend income.
In the first nine months, CTBC Financial’s cumulative net profit was NT$36.13 billion, with earnings per share of NT$1.8, ranking third among its local peers.
Banking-focused holdings such as Mega Financial Holding Co (兆豐金控), First Financial Holding Co (第一金控) and E.Sun Financial Holding Co (玉山金控) posted steeper declines in net profit last month due to generally lower interest rate spreads, less capital gains from financial products and higher provision expenses.
E.Sun Financial saw its net profit hit a new monthly low at NT$1.2 billion last month, due to fewer financial product transactions and higher general provision expenses.
In the first nine months, E.Sun Financial’s net profit totaled NT$13.95 billion, down 11.6 percent year-on-year, with earnings per share of NT$1.11, dragged by E.Sun Commercial Bank’s (玉山銀行) 16.5 percent decline in profit over the same period.
Overall, the nation’s 15 financial holding companies saw their cumulative profit in the first nine months hit NT$303.997 billion, thanks to rising investment gains and dividend income.
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