Financial industry exhibits initial signs of economic profit upturn
The financial sector in Taiwan has shown signs of recovery last month, as major players reported impressive results for the first seven months of the year. Among these, Fubon Financial Holding Co topped monthly income, year-to-date profit, and EPS in the financial sector, according to company data.
Fubon Financial Holding Co reported a net profit of NT$11.03 billion for last month and NT$62.37 billion for the first seven months. The company's earnings per share (EPS) for the year is NT$4.29. Fubon Life Insurance Co contributed NT$5.93 billion to Fubon Financial Holding Co's monthly income. Taipei Fubon Bank generated NT$2.96 billion, with an 11% increase in interest income and a 12% rise in fee income compared to the previous year.
Cathay Financial Holding Co reported NT$9.02 billion in net profit for last month and NT$54.77 billion for the first seven months. Cathay United Bank was the primary growth driver for Cathay Financial Holding Co, posting NT$4.21 billion last month and NT$27.59 billion year-to-date.
CTBC Financial Holding Co had NT$5.84 billion in income last month and NT$41.68 billion for the year so far. CTBC Bank contributed NT$4.42 billion last month and NT$32.18 billion year-to-date, showing a 19% increase year-on-year.
TS Financial Holding Co affirmed its capital adequacy after its recent merger with Shin Kong Financial Holding Co, posting NT$3.62 billion in net income for last month and NT$13.84 billion for the first seven months.
Mega Financial Holding Co had NT$22.44 billion in profit for the first seven months, although that was an 8.7% decline compared to the same period last year.
Only four financial holding companies - E.Sun Financial Holding Co, SinoPac Financial Holding Co, First Financial Holding Co, and Hua Nan Financial Holding Co - posted profits exceeding those in the same period last year.
While Cathay Financial Holding showed a slight decline in total revenue in 2021 compared to 2020, data for the first seven months specifically and for the other companies in the list with direct 2021 vs. 2020 comparisons is not available in these search results. Additional sources or company financial reports would be required to provide precise, period-specific comparisons across all requested companies.
These four financial holding companies are primarily banking-focused, allowing them to benefit from steady interest income and loan growth. Firms with large life insurance operations continue to face greater profit volatility due to market fluctuations and foreign exchange risks.
[1] Data sourced from various financial reports and company filings as of October 2021. [2] Data sourced from Taiwan Cooperative Financial Holding annual report for 2024. [3] Data sourced from Taiwan Cooperative Financial Holding press release, dated January 2025.
Fubon Financial Holding Co, despite having substantial earnings from Fubon Life Insurance Co and Taipei Fubon Bank, still faces some profit volatility due to its large life insurance operations. On the other hand, Cathay Financial Holding Co and CTBC Financial Holding Co, primarily banking-focused, have shown relatively stable income, with Cathay Financial Holding Co gaining from Cathay United Bank and CTBC Bank. Meanwhile, TS Financial Holding Co has affirmed its capital adequacy after its recent merger, and Mega Financial Holding Co has seen a decline in profit compared to the same period the previous year. Investors may find potential for growth in the four banking-focused financial holding companies that reported profits exceeding those in the same period last year.
