Fubon Financial

Fubon Financial reported unaudited consolidated pre-tax profit of NT$18.73bn and net profit of NT$15.21bn in January, translating into EPS of NT$1.11. Results across subsidiaries are well-performed. Specifically, net profit of Taipei Fubon Bank hit a historical high. The performance of the main subsidiaries is as follows:

Fubon Life’s January net profit was NT$8.68bn. The main sources of investment income this month were interest income, capital gains on domestic and foreign equities and funds, and fund dividend income. Taiwan and the overseas stock markets were range-bound in January. Fubon Life closely monitored the market volatility and seized the opportunities to realize capital gains. In the bond market, as the U.S. economy grew steadily, the employment momentum continued. The core inflation rate slightly slowed. Bond yield peaked and then retreated. Fubon Life increased its bond position at the time of high interest rates and maintained sufficient liquidity to flexibly respond to market movements. In terms of exchange rate, the Fed has started a rate cut cycle since September last year, and hedging costs have improved significantly. However, the Fed hit a pause on rate cuts in January as the market expected, and policy uncertainty has heightened after Trump took office. The dollar has been range-bound in January. Fubon Life will continue to monitor the impact of policy changes on the market and dynamically adjust the hedging position. Fubon Life’s monthly standalone first year premium (FYP) reached NT$14.3bn, up 21% YoY. The growth momentum was mainly from traditional and investment products. Monthly total premium (TP) reached NT$36.3bn. Both FYP and TP in January were estimated to rank the top 2 in the industry. Fubon Life continues to increase the proportion of regular paid policies, which will continue to increase future renewal year premium, and has boosted monthly FYPE in January to NT$7.3bn, up 18% YoY. Fubon Life’s capital position remained decent, with equity to asset ratio above 10% and RBC ratio above 350% as of January.

Taipei Fubon Bank’s January net profit was NT$3.89bn, up 11% YoY, hitting a historical high. In January, both deposit and loan growth momentum remained stable with balances up by 9% YoY and 11% YoY, respectively, leading to an 11% YoY increase in net interest income. Meanwhile, net fee income rose 14% YoY as WM sales momentum continued to grow. Overall, total revenue hit a record high and was up 13% YoY. As of end-January, asset quality remained benign with NPL ratio and NPL coverage ratio at 0.12% and 1,093% respectively.

Fubon Insurance’s January net profit was NT$0.73bn, up 33% YoY, mainly from solid underwriting business performance and investment income. In terms of business performance, direct written premium in January was NT$7.63bn, up 10% YoY, setting a monthly record high. Notably, engineering insurance grew significantly on back of active participation in green insurance businesses, driving a premium growth of 61% YoY. Meanwhile, the growth of personal package insurance and new types of insurance business also outperformed the market by around 1% to 3%. The market share in total direct written premium was 25.4%, an increase of 0.3% YoY, continuing as the market leader.

Fubon Securities’ January net profit was NT$0.46bn, a decrease of NT$0.17bn from the same period last year. This was mainly due to the trading days is 7 days fewer, due to Lunar New Year holiday, compared with January last year, resulting in a decrease in brokerage income.