Fubon Financial

Fubon Financial reported unaudited consolidated pre-tax profit of NT$16.885bn and net profit of NT$14.070bn in January, a meaningful increase of around 161% and 131% YoY respectively. The net profit translated into EPS of NT$1.08. Net profit of Taipei Fubon Bank hit a monthly record high, and net profit of Fubon Securities was the second highest in record for the same period.

The performance of the main subsidiaries is as follows:

Fubon Life’s January consolidated pre-tax profit was NT$10,723mn and net profit was NT$9,075mn. The main sources of investment income this month were interest income and capital gains on domestic and foreign equities and funds. Fubon Life continued to monitor market fluctuations and maintained a stable investment portfolio with flexible approach. As TAIEX exceeded 18000 points in January, Fubon Life seized the opportunities to realize capital gains. In the bond market, the U.S. GDP maintained growth momentum in the fourth quarter 2023, and interest rate rebounded followed by a range-bound in the beginning of 2024. Strategically, Fubon Life maintained sufficient liquidity and increased positions timely to improve overall recurring return. In terms of exchange rate, the U.S. economy has been stable since the beginning of the year, and the market has adjusted its expectations for interest rate cuts, leading to an appreciation of the US dollar. New Taiwan dollar depreciated against the US dollar by 1.81% in January, contributing to the exchange gains of the month. Fubon Life’s standalone first year premium (FYP) was NT$11,792mn in January, up 80.6% YoY, with the main growth momentum coming from traditional products, and total premium (TP) in January was NT$39,078mn. Monthly FYP and TP were estimated to rank the top in the industry. As Fubon Life continued to focus the product strategy on regular-paid policies, FYPE in January reached NT$6,221mn, up 104.0% YoY. Fubon Life continued to promote protection and retirement planning products to meet customers’ needs, leading to a 69.5% YoY growth in FYP of personal health and casualty policies. Fubon Life’s capital position remained decent, with equity to asset ratio above 9% and RBC ratio above 300% as of January.

Taipei Fubon Bank’s January net profit was NT$3,490mn, up 6% YoY, a record high. Revenue was up by 20% YoY, as net interest income up by 12% YoY and net fee income up by 73% YoY. It reflected the benefits of merger with Jih Sun Bank and the new customers from COSTCO affinity card are gradually delivered. The wealth management business continued its decent performance in January, with around 70% YoY increase in fee income. The credit card business grew as market share gains in active cards and the 76% YoY increase in card spending. Deposits and loans grew at 7% and 11% respectively YoY under the well control of cost and risk management. Asset quality remained benign. NPL ratio and coverage ratio were at 0.12% and 1094%, respectively.

Fubon Insurance’s January net profit was NT$545mn, mainly from the solid underwriting business performance and investment income. In terms of business performance, direct written premium in January was NT$6,968mn, setting a monthly record high. There was double-digit growth in both personal and commercial lines, driving a growth of 30.1% YoY in total written premium, among which commercial fire insurance and engineering insurance grew by 44.1% and 59.2% respectively. Meanwhile, the growth of auto insurance, marine insurance and new types of insurance business also outperformed the market by around 7% to 12%. The market share in total direct written premium was 24.8%, an increase of 1.2% YoY, continuing as the market leader.

Fubon Securities’ January net profit was NT$628mn, up NT$61mn mom and NT$137mn YoY. The average daily trading volume of Taiwan stock market in January increased by 57% YoY, driving meaningful growth in brokerage and wealth management businesses.