Fubon Financial

Fubon Financial reported unaudited consolidated pre-tax profit of NT$15.85bn and net profit of NT$13.03bn in April. Cumulative consolidated pre-tax profit and net profit was NT$50.82bn and NT$43.41bn, respectively, translating into EPS of NT$3.34. Monthly and cumulative net profit of Taipei Fubon Bank and Fubon Securities were the highest in record for the same period.

The performance of the main subsidiaries is as follows:

Fubon Life’s April net profit was NT$9.09bn and cumulative net profit was NT$26.52bn, up 76% and 114%, respectively, over the same period last year. The main sources of investment income this month were interest income and capital gains on domestic equities and funds. Fubon Life continued to monitor market fluctuations and maintained a stable investment portfolio. As TAIEX traded at a high in April, Fubon Life seized the opportunities to realize capital gains. Fubon Life retained its unrealized gains at the end of April given the upward trend in the value of domestic and foreign equities compared with the level in the beginning of the year. In the bond market, US treasury yield in April rebounded, reflecting the solid performance of employment and domestic demand. Fubon Life maintained sufficient liquidity to flexibly respond to market movements. In terms of exchange rate, the US dollar showed strength due to solid economic performance and the market continues to adjust its expectations for US interest rate cuts. The US dollar appreciated by about 1.73% against the New Taiwan dollar in April, contributing to exchange gains for the month. Fubon Life’s standalone cumulative first year premium (FYP) reached NT$36.9bn, estimated to top the industry. Cumulative total premium (TP) reached NT$117.2bn, estimated to rank the top 2 in the industry. Monthly FYP was NT$8.5bn, up 23% YoY, estimated to top the industry, with the growth momentum stemming mainly from traditional products and investment-linked products. Monthly TP was NT$27.7bn, up 18% YoY, estimated to rank the top 2 in the industry. As Fubon Life continued to focus the product strategy on regular-paid and protection policies, cumulative FYPE in April reached NT$17.1bn, up 32% YoY. In addition, the FYP of personal health and accident policies grew 31% YoY, continuing to build a protection net for customers. Fubon Life’s capital position remained decent, with equity to asset ratio above 10% and RBC ratio above 300% as of April.

Taipei Fubon Bank’s April net profit was a record high of NT$2.55bn. Cumulative net profit reached NT$10.71bn, up 24% YoY, continuing to hit a record high. Revenue was up by 17% YoY, as net interest income climbed 14% YoY and net fee income rose 52% YoY. The momentum of businesses grew steadily. Deposits and loans rose by 9% and 13% YoY respectively. The wealth management business continued its decent performance, with over 40% YoY increase in cumulative wealth management fee income. The credit card business grew given a rise in the number of active cards and the over 50% YoY increase in card spending as of April. Asset quality remained benign. NPL ratio and coverage ratio were at 0.12% and 1121%, respectively.

Fubon Insurance’s April net profit was NT$0.26bn and cumulative net profit reached NT$1.60bn. Monthly net profit remained stable in spite of losses from earthquakes, reflecting the risk control and decent investment performance. In terms of business performance, direct written premium in April was NT$5.9bn, up 32% YoY. Both personal and commercial lines grew in double digits. Among them, engineering insurance grew 275% YoY as the company actively participated in green insurance, outperforming the market. Cumulative written premium was NT$22.7bn, up 12% YoY. The market share in total direct written premium was 25.2%, continuing to be the market leader.

Fubon Securities’ April net profit was NT$0.77bn and cumulative net profit was NT$3.11bn, up 61% YoY. The average daily trading volume in TAIEX reached NT$500bn in the first 4 months, leading to meaningful growth in brokerage and wealth management businesses. Net profit in both April and the first four months were the highest in record for the same period.