Taiwan’s 14 financial holding companies last month reported a 40.54 percent spike in net income to NT$66.5 billion (US$2.09 billion) as life insurance subsidiaries raked in hefty cash dividends and benefitted from asset valuation increases linked to a weak local currency.
Life insurer-focused conglomerates reported combined profits of NT$35.05 billion for last month, outperforming bank-oriented conglomerates (NT$25.0 billion) and securities house-reliant groups (NT$6.69 billion), financial statements showed.
Fubon Financial Holding Co (富邦金控) remained the most profitable with net income of NT$12.53 billion last month and cumulative profit of NT$55.45 billion in the first seven months of this year, it said.
Photo courtesy of China Development Financial Holding Corp
That translated into earnings per share (EPS) of NT$4.19 after main subsidiary Fubon Life Insurance Co (富邦人壽) received ample cash dividends and its US dollar-based assets gained value against the local currency, it said.
Non-life insurance arm Fubon Insurance Co (富邦產險) emerged from losses linked to COVID-19 policies, it said.
Fubon Financial Holding’s profit so far this year has already topped its result for the whole of last year, it said.
CATHAY
Cathay Financial Holding Co (國泰金控), the largest financial holding company in Taiwan in terms of assets, reported record net income of NT16.08 billion for last month, boosting profit so far this year to NT$48.98 billion, or EPS of NT$3.06, it added.
Cathay Financial Holding attributed its strong showing to NT$4 billion of cash dividends and foreign exchange gains linked to a soft New Taiwan dollar.
Its banking arm, Cathay United Bank (國泰世華銀行), had a double-digit percentage growth in interest income, while Cathay Century Insurance Co (國泰產險) reported NT$270 million in profit after previously reporting losses linked to COVID-19 claims, the group said.
CTBC
Bank-focused CTBC Financial Holding Co (中信金控) reported NT$7.61 billion in net income for last month on the back of increases in loan and interest income.
Cumulative profit in the first seven months totaled NT$36.43 billion, or EPS of NT$1.87, making it the third-most profitable of the nation’s 14 financial holding companies.
Mega Financial Holding Co (兆豐金控) was the most profitable state-run financial conglomerate with net income of NT$3.32 billion last month and cumulative profit of NT$22.09 billion in the first seven months, or an EPS of NT$1.58, it said.
Yuanta Financial Holding Co (元大金控), which owns the biggest securities house in Taiwan, posted NT$4.13 billion in net income for last month and profit of NT$19.1 billion in the first seven months, or EPS of NT$1.53.
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