Fubon Financial Holdings' Board of Directors has Approved the Proposed Distribution of Cash Dividends Amounting to NT$4.25 and Stock Dividends of NT$0.25 for Each Share
A total of NT$4.50 per share has been distributed as dividends, setting a historic high record for cash dividends and total dividends distribution
Fubon Financial Holdings announced today (the 2nd) that the board of directors has resolved to distribute a cash dividend of NT$4.25 and a stock dividend of NT$0.25 per common share, resulting in a total dividend distribution of NT$4.50. The total dividends and cash dividends have both reached a historic high record. The total dividend payout ratio of 41.8% maintains a long-term stable balance in the dividend distribution objective.
Fubon Financial Holdings reported a net income of NT$150.82 billion for 2024, with earnings per share (EPS) of NT$10.77. This achievement makes it the leading financial holding company in profitability and maintains its status as the EPS leader for 16 years in a row. Fubon Financial Holdings' cash dividend distribution is based on a comprehensive assessment of overall profitability and the earnings submitted by its subsidiaries. In 2024, Fubon Life reported a net income of NT$102.66 billion and a net worth of NT$613.85 billion, both of which represent record highs. With all indicators complying with legal regulations, the board of directors approved the earnings distribution on April 29, and pending approval from the regulatory authorities, it is anticipated that NT$21 billion will be submitted in cash. After submitting cash dividends, Fubon Life's capital adequacy ratio is expected to remain above 350% by the end of 2024 which indicates that the company's financial operations are sound and its capital levels are sufficient.
In addition to cash dividends, Fubon Financial Holdings is simultaneously distributing a stock dividend of NT$0.25 per share which allows shareholders the flexibility to either maintain their stock holdings or convert them into cash. Fubon Financial Holdings stated that while the issuance of stock dividends may lead to a slight dilution in the short term, it also reflects the company's confidence in its future operational performance. Overall, the combination of cash dividends and stock dividends is expected to provide shareholders with better substantial benefit. The current distribution of stock dividends involves the issue of shares from the capital reserve. For shareholders, according to Taiwanese tax law, there is no requirement to pay income tax upon receiving these dividends.