Fubon Financial

Fubon Financial reported unaudited consolidated pre-tax profit of NT$15.26bn and net profit of NT$11.85bn in June, after recognizing one-off of around NT$2.8bn tax on undistributed earnings. Cumulative consolidated pre-tax profit was NT$59.85bn and cumulative consolidated net profit was NT$51.34bn, with EPS of NT$3.49. Specifically, Taipei Fubon Bank’s June monthly and cumulative net profit reached a record high for the same period. June monthly net profit of Fubon Securities, cumulative net profit of Fubon Insurance and Fubon Securities hit the 2nd highest in history. The performance of the main subsidiaries is as follows:

Fubon Life’s June net profit was NT$8.74bn, and cumulative net profit for the first six months was NT$24.54bn. The main sources of investment income this month were interest income, dividend income from domestic stocks, capital gains on domestic and foreign equities and funds, and fund dividend income. In the stock market, as regional conflicts eased and the New Taiwan dollar gradually appreciated, the TAIEX trended up in June. Fubon Life realized capital gains from Taiwan stock positions, and dividend income also increased. In the bond market, the Fed remained patient and continued to observe the impact of tariffs on inflation. Some officials suggested that a rate cut could occur in July, which drove treasury yields lower in June. Fubon Life seized the opportunity of higher interest rates to increase bond position during the first half of 2025, and maintained sufficient liquidity to flexibly respond to subsequent market conditions. In the foreign exchange market, the US dollar depreciation trend against the New Taiwan dollar remained, as the market continued to focus on the progress of tariffs and trade negotiations. In response to market changes, Fubon Life has kept a relatively high hedging ratio, and plans to further increase FX reserve to strengthen the resilience against future currency fluctuations. According to the directive from the FSC, Fubon Life applied for adjustment of liability reserve basis and released over NT$56bn into FX reserve in June. Fubon Life will continue to monitor market conditions closely and dynamically adjust its hedging positions accordingly.

Fubon Life’s cumulative standalone first year premium (FYP) reached NT$62.9bn, up 13% YoY, and cumulative total premium (TP) reached NT$192.3bn, up 10% YoY. Both cumulative FYP and TP were estimated to rank the top 2 in the industry. Monthly FYP was NT$9.3bn and TP was NT$35.3bn, up 3% and 20% YoY, respectively. Both were also estimated to rank the top 2 in the industry. As Fubon Life continued to focus the product strategy on regular-paid and protection policies, cumulative FYPE reached NT$30.4bn, up 17% YoY.

Fubon Life’s capital position remained decent, with equity to asset ratio over 9% and RBC ratio above 400% as of June. This reflects the adoption of a six-month average exchange rate for calculating RBC, as well as the impact of releasing policy reserves due to the adjustment of liability reserve basis, which were fully transferred to FX reserve approved by FSC. Fubon Life will continue to closely monitor exchange rates and market movement, assessing potential impacts to ensure decent capitalization.

Taipei Fubon Bank’s June net profit was NT$3.82bn, up 28% YoY, the highest in record for same period. On a MoM basis, June earnings were NT$1.15bn higher mainly due to dividend income. Cumulative net profit reached NT$19.53bn, up 20% YoY, hitting a historical high. The growth was mainly driven by scale growth and NIM improvement, while wealth management sales as well as credit card spending remained stable. Cumulative net interest income and fee income grew 11% and 14%, respectively, resulting in total revenue growth of 11% YoY. Asset quality remained benign. NPL ratio and coverage ratio were at 0.12% and 1,067%, respectively, as of June.

Fubon Insurance’s June net profit was NT$0.48bn and cumulative net profit reached NT$2.89bn, up 18% YoY. The core business continued to grow, reflecting the selection of business quality and risk control. In terms of business performance, direct written premium in June was NT$6.29bn, up 5% YoY. Notably, marine insurance was the outperformer with a growth of 19% YoY, and auto insurance also outperformed the market. Cumulative written premium was NT$37.22bn, up 9% YoY. The market share in total direct written premium was 24.4%. Fubon Insurance continues to be the market leader by offering diverse products and comprehensive services.

Fubon Securities’ June net profit was NT$1.41bn, marking the second highest June monthly profit on record and representing a 111% MoM growth. This performance was mainly driven by an increase in the average daily trading volume of Taiwan stock markets and TAIEX trended up in June, boosting brokerage income and proprietary trading income, alongside additional contributions from dividend income. Cumulative net profit was NT$4.05bn, down 18% YoY. The decline was primarily attributed to a YoY reduction of 17% in the average daily trading volume, which affected brokerage income.