Fubon Financial

Fubon Financial reported unaudited consolidated pre-tax profit of NT$18.17bn and net profit of NT$16.02bn in May. Cumulative consolidated pre-tax profit and net profit was NT$68.99bn and NT$59.43bn, respectively, translating into EPS of NT$4.57. Monthly net profit of Fubon Life as well as 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 May net profit was NT$11.35bn, the highest in record for the same period and cumulative net profit was NT$37.87bn. Monthly and cumulative profit grew 726% and 175%, respectively. The main sources of investment income this month were capital gains on domestic equities and funds and interest income. Fubon Life continued to monitor market fluctuations and maintained a stable investment portfolio. As TAIEX traded at a high in May, Fubon Life seized the opportunities to realize capital gains. Fubon Life retained its unrealized gains at the end of May 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 May was in range-bound. Fubon Life has increased the bond position during the rebound of interest rates year to date to improve recurring income in the future, while maintained sufficient liquidity to flexibly respond to market movements. In terms of exchange rate, foreign capital has flowed into Taiwan stock market in May, promoting the appreciation of the Taiwan dollar. As the US dollar depreciated by 0.37% against the Taiwan dollar in May, Fubon Life recognized foreign exchange loss. Fubon Life continued to follow closely on the development of U.S. economy and foreign investment trends, to dynamically adjust the asset allocation. Fubon Life’s standalone cumulative first year premium (FYP) reached NT$46.6bn, up 20% YoY and estimated to top the industry. Cumulative total premium (TP) reached NT$145.6bn, up 14% YoY and estimated to rank the top 2 in the industry. Monthly FYP was NT$9.8bn, up 23% YoY, estimated to top the industry, with the growth momentum stemming mainly from traditional products. Monthly TP was NT$28.4bn, up 8% YoY, estimated to rank the top 2 in the industry. As Fubon Life continued to focus the product strategy on regular-paid policies, cumulative FYPE in May reached NT$21.6bn, up 35% YoY. In addition, the FYP of personal health and accident policies grew 37% YoY, showing the results of the product mix transformation strategy. Fubon Life’s capital position remained decent, with equity to asset ratio above 10% and RBC ratio above 300% as of May.

Taipei Fubon Bank’s May net profit was a record high of NT$2.53bn. Monthly earnings increased by over 30% YoY. Cumulative net profit reached NT$13.24bn, up 26% YoY, continuing to hit a record high. Net profit growth mainly came from the steady momentum of core businesses, including the double-digit growth in loans and deposits balance, net interest income growth of 13% YoY, solid sales momentum in wealth management business, and the expansion of credit card customer base, leading to the meaningful increase in the number of active cards and the amount of card spending YoY. Net fee income climbed by 48% YoY. Asset quality remained benign. NPL ratio and coverage ratio were at 0.12% and 1104%, respectively.

Fubon Insurance’s May net profit was NT$0.54bn and cumulative net profit reached NT$2.14bn, primarily from the decent investment performance and the steady business momentum. In terms of business performance, direct written premium in May was NT$5.36bn, up 17% YoY. Among them, engineering insurance grew significantly on back of actively participating in green insurance businesses, driving commercial insurance written premium to an increase of 41% YoY. Cumulative written premium was NT$28.06bn, up 13% YoY. The market share in total direct written premium was 24.8%, continuing to be the market leader.

Fubon Securities’ May net profit was NT$0.75bn and cumulative net profit was NT$3.87bn, up 60% YoY. As TAIEX continue to hit record high in May and the average daily trading volume reached NT$524.5bn in the first five months, brokerage, wealth management, and proprietary trading businesses grew meaningfully. Net profit in both May and the first five months were the highest in record for the same period.