Fubon Financial

Fubon Financial reported unaudited consolidated pre-tax profit of NT$12.61bn and net profit of NT$10.51bn in December. 2024 pre-tax profit and net profits were NT$172.78bn and NT$151.16bn, respectively, exceeding NT$150bn for the first time and translating into EPS of NT$10.80. December net profits and 2024 net profits were both the highest in record. For subsidiaries, 2024 net profits of Fubon Life, Taipei Fubon Bank and Fubon Securities all hit a record high, and monthly net profits of Fubon Life and Taipei Fubon Bank were the highest for the same period. The performance of the main subsidiaries is as follows:

Fubon Life’s December net profit was NT$10.54bn, up NT$13.27bn compared to the same period last year, and cumulative net profit was NT$102.53bn, up NT$66.44bn or 184% YoY. The main sources of investment income this month were interest income, capital gains on domestic and foreign equities and funds, and fund dividend income. As Taiwan and the overseas stock markets trended up in December, Fubon Life seized the opportunities to realize capital gains. The steady growth of the U.S. economy and the continued momentum of employment and domestic demand in the U.S. have pushed up the rebound in bond yield. Fubon Life increased its bond position and maintained sufficient liquidity to flexibly respond to market movements. In terms of exchange rate, the Fed adopted a hawkish rate cut attitude, suggesting a deceleration of future rate cuts, which led to appreciation of the US dollar and foreign exchange gains in December. Fubon Life will continue to monitor the market, specifically the changes in immigration, finance, tariffs and other policies when the new government takes office, as well as the impact on the foreign exchange market. Fubon Life’s standalone cumulative first year premium (FYP) reached NT$110.1bn, up 17% YoY, and cumulative total premium (TP) reached NT$364.3bn, up 13% YoY. Both cumulative FYP and TP were estimated to rank the top 2 in the industry. Monthly FYP and TP were NT$8.4bn and NT$41.5bn, both up 26% YoY, and estimated to rank the top 3 and top 2 in the industry, respectively. Renewal premium income rose 27% YoY due to the continuous increase in the proportion of regular paid policies. As Fubon Life focuses the product strategy on long-term regular paid policies and protection policies, cumulative FYPE reached NT$50.3bn, up 26% YoY. In addition, cumulative FYP of personal health and accident policies grew 67% YoY. Fubon Life’s capital position remained decent, with equity to asset ratio above 10% and RBC ratio above 350% as of December.

Taipei Fubon Bank’s December net profit was NT$1.47bn. Cumulative net profit reached NT$30.54bn, up 25% YoY, with December and full-year net profit both hitting historical highs for the same period. Total operating income climbed 17% in FY24 thanks to the synergies from the Costco affinity card and Jih Sun merger, robust capital markets, and the rise in both domestic and overseas spending. Taipei Fubon Bank has been maintaining stable business momentum. For its credit card business, full-year spending exceeded NT$600bn, up 25% YoY, mainly driven by significant growth in credit card business scale. As of December, asset quality remained benign with NPL ratio and coverage ratio at 0.12% and 1,084%, respectively.

Fubon Insurance’s December net loss was NT$0.48bn, reflecting the provision based on the monthly accounts receivable aging schedule and assessment of actual recoverability. However, the underwriting and investment performance remained strong, with cumulative net profit reaching NT$3.01bn, leading to a record high for its underwriting. In terms of business performance, the direct written premium in December reached NT$3.91bn, and cumulative written premium was NT$64.51bn, up 11% YoY. Notably, commercial lines led the way with a growth of 16% YoY. The company maintained its leading market position with an overall market share in total direct written premium of 23.8%. Fubon Insurance continues to leverage its positive influence in the insurance industry, fulfilling social responsibilities and promoting sustainable development.

Fubon Securities’ December net profit was NT$0.59bn and cumulative net profit was NT$10.09bn, up 43% YoY. Benefiting from the active trading of AI and semiconductor sectors in the market, the average daily market turnover in 2024 was over NT$500bn, and TAIEX also rose by more than 5,100 points compared with the end of 2023. The profit of all major businesses increased significantly compared with last year, and cumulative net profit exceeded NT$10bn, setting a new high in 36 years since Fubon Securities was established in 1988.