Fubon Financial

Fubon Financial Holdings Reports January 2021 Results


Fubon Financial reported unaudited net profit of NT$20,235mn for the month of January 2021, up 113% yoy. EPS increased to NT$1.98 from NT$0.93 for the same month last year, up strongly by more than double yoy. Both monthly net profits and EPS of Fubon Financial achieved the record high in January. The monthly net profits were also the highest among all financial holding peers that had announced monthly results so far. Fubon Life and Fubon Insurance also delivered record high monthly net profit in January. The strong profit growth yoy was mainly attributed to higher investment revenue in Fubon Life, decent investment and underwriting performance in Fubon Insurance, and better brokerage revenue in Fubon Securities.
The performances of our main subsidiaries are as follows:
• Fubon Life recorded strong net profit of NT$15,786mn in January, a significant increase of 164% yoy, mainly due to outstanding investment performance in both equity and fixed income markets. First Year Premium of Fubon Life was NT$14.1bn for the first month and total premium reached NT$52.4bn. Overall underwriting performance remained benign. Fubon Life also captured opportunities to realize gains from fixed income positions before US bond yield rebounded in January, and will seek potential investment opportunities to enhance recurring yield as long as bond yield rebounds afterwards. Hedging performance also improved yoy due to a decline in recurring hedging cost and better FX gains and losses.

• Taipei Fubon Bank’s January net profit was NT$2,060mn. Net interest income grew  10% yoy, which was mainly due to sustainable expansion on the core businesses of  loan and deposit acquisition. The number of active credit cards rose 21% yoy, which boosted credit card consumption amount by 14% yoy. For its digital banking business, Taipei Fubon Bank cooperated with Fubon Life and LINE Pay to launch a new digital payment service in January 2021. The new service will provide customers with additional and convenient payment choices. Asset quality remained benign with NPL ratio and coverage ratio as of January at 0.18% and 708%, respectively.

• Fubon Insurance’s January net profit was NT$871mn, up 23% yoy, mainly driven by decent investment and underwriting performance. Gross written premium reported NT$4.8bn in January which grew 6% yoy, and market share reached 24.5%, ranking the top in the market. Its commercial line business delivered strong yoy growth of 8.7% with a market share of over 26%.

• Fubon Securities’ January net profit was NT$650mn, up significantly by 458% yoy. It benefited from robust daily average turnover in Taiwan equity market of NT$449.5bn in January 2021, Fubon Securities’ brokerage market share climbed to 5.8%, which was 0.35% higher yoy. Its wealth management business also reported yoy growth across major product lines, including sub-brokerage, structured products, overseas fixed income and mutual fund. Revenue from proprietary trading and investment banking businesses also grew and benefited from the active capital market and proactive management.