Fubon Financial

Fubon Financial reported unaudited consolidated pre-tax profit of NT$18.11bn and net profit of NT$14.80bn in February. Cumulative consolidated pre-tax profit was NT$36.84bn, and cumulative consolidated net profit was NT$30.00bn, up 34% YoY, with EPS of NT$2.20. Results across subsidiaries are well-performed. Specifically, cumulative net profit of Taipei Fubon Bank hit a historical high, while Fubon Securities’ February net profits also delivered a record high. The performance of the main subsidiaries is as follows:

Fubon Life’s February net profit was NT$9.50bn and cumulative net profit was NT$18.18bn, both the third highest in record for the same period. Monthly and cumulative profit grew 122% and 36% YoY, respectively. 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 stock market was range-bound in February. Fubon Life closely monitored the market trend and seized the opportunities to realize capital gains. In the bond market, as U.S. tariff policy affected consumer confidence and suppressed the investment performance of risky assets, the treasury yield fell in February. Fubon Life increased its bond position at the time of high interest rates to secure future recurring income. In terms of exchange rate, the US dollar slightly appreciated against the Taiwan dollar in February amid rising U.S. policy uncertainty and risk aversion. Fubon Life will continue to monitor the impact of policy changes on the market and dynamically adjust the hedging position. Fubon Life’s standalone cumulative first year premium (FYP) reached NT$25.1bn, up 36% YoY, and cumulative total premium (TP) reached NT$69.7bn, up 13% YoY. Both cumulative FYP and TP were estimated to rank the top 2 in the industry. Monthly FYP and TP were NT$10.8bn and NT$33.4bn, up 63% and 49% YoY, respectively. Benefited from the continuous increase in the proportion of regular paid policies, monthly renewal year premium (RYP) increased 44% YoY. Monthly FYP, RYP, and TP are all estimated to rank the top 2 in the industry. As Fubon Life continued to focus the product strategy on regular-paid policies and protection products, cumulative FYPE reached NT$12.8bn, up 35% YoY. Fubon Life’s capital position remained decent, with equity to asset ratio above 10% and RBC ratio above 350% as of February.

Taipei Fubon Bank’s February net profit was NT$3.15bn and cumulative net profit was reaching NT$7.05bn, up 22% YoY, hitting a historical high. The strong earnings growth was primarily driven by the sustained core business momentum. Cumulative net interest income and net fee income increased 10% YoY and 20% YoY, respectively, lifting total revenue growth to 14% YoY. Loan balance increased 10% YoY, mainly driven by overseas loans and retail loans. Wealth management fee income growth for the first two months exceeded 20% YoY, boosted by strong sales in mutual funds and regular-paid insurance products. For the credit card, the number of active cards and card spending amount grew steadily, benefiting from higher overseas consumption, which was up 16% YoY. Asset quality remained benign. NPL ratio and coverage ratio were at 0.12% and 1065%, respectively.

Fubon Insurance’s February net profit was NT$0.46bn, up 35% YoY and cumulative net profit reached NT$1.19bn. The core business continued to grow with steady business momentum, primarily reflecting the selection of business quality and risk control. In terms of business performance, by leveraging group resources and diversified channels, direct written premium in February was NT$5.72bn, up 21% YoY, of which personal and commercial lines both saw double-digit growth. Notably, engineering insurance was the best performer with a growth of 76% YoY, due to active participation in green insurance businesses. Cumulative written premium was NT$13.35bn, up 14% YoY. The market share in total direct written premium was 25.4%, continuing as the market leader.

Fubon Securities’ February net profit was NT$0.84bn, up 84% MoM, the highest in record for the same period. As the average daily trading volume and trading days of the Taiwan stock markets increased in February, brokerage income grew and proprietary trading income rebounded significantly. Fubon Securities’ cumulative net profit was NT$1.30bn, the second highest in record for the same period.