Fubon Financial

For the first quarter of 2025, Fubon Financial Holdings recorded a net income of NT$41.06 billion, resulting in an earnings per share (EPS) of NT$3

Net income and earnings per share are the best in the financial holding industry. Subsidiaries are growing steadily and are in a leading position in the market

Today (5th), Fubon Financial Holdings (2881) held an investor conference to disclose its operational performance for the first quarter of 2025. All subsidiaries are performing well. In Q1 2025, Fubon Financial Holdings reported a net income of NT$41.06 billion, which is 35.0% increase from the previous year, and the EPS of NT$3. Both the net income and EPS ranked first in the industry.

As of the end of March 2025, Fubon Financial Holdings’ total assets exceeded NT$12.1 trillion, reflecting an annual growth of 5.2%. The net worth reached NT$914.2 billion, marking an annual growth of 2%, with a net asset value per common share of NT$59.88. The return on assets (ROA) and return on equity (ROE) were recorded at 1.36% and 17.61%, respectively, both showing improvement as compared to the same period of last year.

On May 2, Fubon Financial Holdings' board of directors approved 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, with a total dividend payout ratio of 41.8%. On May 12, Fubon Financial Holdings reported an unaudited net income of NT$4.17 billion for April, resulting in a cumulative net income of NT$45.28 billion for the first four months of the year, with earnings per share recorded at NT$3.31, thus sustaining a solid profitability performance.

Fubon Financial Holdings shows strong financial results and is recognized for its sustainable practices both domestically and internationally

Richard M. Tsai, Chairman of Fubon Financial Holdings, stated that besides excellent financial performance in the first quarter of 2025, Fubon Financial Holdings and its subsidiaries have also received significant recognition for their sustainable operations both domestically and internationally. Fubon Financial Holdings has been awarded the highest honor 'A' by the global benchmark CDP (Carbon Disclosure Project), maintaining its leadership status for five consecutive years. It has also been selected for the 2025 S&P Global Sustainability Yearbook. In the "Second Sustainable Finance Assessment" conducted by the Financial Supervisory Commission, the four major subsidiaries—Taipei Fubon Bank, Fubon Securities, Fubon Life, and Fubon Insurance—each ranked in the top 25% of their respective industries: bank, securities, and insurance, making it the company with the most awards among its financial peers.

Fubon Life's net income for the first quarter ranks first in the industry, with investment performance remaining strong

Fubon Life reported a net income of NT$27.32 billion for the first quarter of 2025, reflecting an increase of 56.4% YoY, securing the top position in the industry. The first-year premiums (FYP), renewal premiums, and total premium ranked second in the industry, while premium equivalent and non-investment first-year premiums held the first position. The growth in participating policies contributed to a 23.8% YoY increase in FYP, alongside a 5.5% increase in renewal premiums and an 11.3% rise in total premium. In terms of FYP, product sales continue to focus on installment payment and protection-oriented high CSM products, with the proportion of installment payments increasing from 61.1% to 63.4%. Additionally, the sales of USD participating policies performed well, leading to an increase in the proportion of foreign currency policies from 43.4% to 53.0%. Benefiting from the increased share of installment payments, the first-year equivalent premium (FYPE) saw a growth of 28.2% YoY, and the FYPE/FYP ratio also improved to 49.4%. The value of new contracts (VNB) grew by 9.9% compared to the same period last year. Regarding sales channels, the FYP through the agent channel experienced significant growth of 47.8%, while the bancassurance channel ranked first in the industry for FYP. Furthermore, the transformation towards installment payment sales yielded remarkable results, driving FYPE growth, with the agent channel growing by 34.2%.

In terms of the investment portfolio, reflecting market fluctuations and realizing capital gains from stocks, the proportion of domestic and foreign stock holdings has decreased, with annualized returns for the first quarter reaching 22.10% and 17.66%, respectively. Cash levels remain relatively high, and adjustments to positions will be made dynamically based on market conditions. The allocation of overseas fixed income assets primarily consists of investment-grade corporate bonds and financial bonds. Fubon Life's investment returns before and after hedging for the first quarter of 2025 were 5.97% and 5.41%, both exceeding the same period of last year. Additionally, capital gains from variable income have also grown compared to the previous year, primarily reflecting the ability to seize market opportunities and realize profits. In the first quarter, the appreciation of the US dollar against the NTD contributed to foreign exchange gains. Since April, under the trend of NTD appreciation, unhedged US dollar positions have been significantly reduced to about 19% by the end of April to respond to exchange rate fluctuations. The increase in investment returns has led to an expansion of the positive interest spread compared to the cost of liabilities; the recurring yield after hedging has rebounded, resulting in a positive spread compared to the breakeven point. As of the end of March 2025, Fubon Life's net worth ratio was approximately 10.6%, and the risk-based capital (RBC) was about 428%.

Taipei Fubon Bank's net income for the first quarter has reached a new high compared to the same period last year

In Q1, 2025, Taipei Fubon Bank reported a net income of NT$10.11 billion, setting a new historical high for the same period, with an increase of 23.9% YoY. The overall net revenue grew by 13.1% YoY, with net interest income rising by 10.5%, primarily due to the growth in deposit and loan volumes as well as an improvement in net interest margin. In terms of credit, personal loans experienced a growth of 13.2% YoY, contributing to an overall increase in credit balances of 8.3%. For corporate loan, foreign currency credit saw an increase of 9.7% YoY, while lending to small and medium-sized enterprises grew by 14.1% YoY. Regarding personal loan, the balance of housing loans increased by 11.9% YoY; this was driven by a significant growth of 37.4% YoY in personal loans, which in turn led to a 26.3% YoY increase in other personal credit balances.

As of the end of March, foreign currency deposits have increased by 17.0% YoY, contributing to an overall deposit growth of 8.0% YoY, and the proportion of foreign currency demand deposits has also risen compared to the end of 2024. In terms of interest margin performance, the net interest margin (NIM) for the first quarter increased by 2 basis points YoY, primarily driven by 9 basis points rise in deposit interest margins. This increase mainly reflects the rise in the loan rates for New Taiwan Dollars, which offsets the adverse impact of U.S. dollar interest rate cuts on the returns from financial assets. Regarding asset quality, both the non-performing loan ratio and the coverage ratio remain strong, with the quality of assets across various business lines staying robust. Due to a reduction in general provisions and contributions from reversals of specific corporate provisions, the provision expenses have decreased.

The net revenue from fee income has experienced an annual growth of 19.0%, reflecting an increase in earnings from wealth management and credit card operations. Wealth management experienced a growth of 20.0%, with mutual funds and bank insurance continuing to contribute to the increase in fee income. In terms of credit card operations, the charge amount for the first quarter saw an increase of 2.1% YoY, while the number of active cards rose by 3.1% YoY. The fee income from credit cards grew by 16.0% YoY, primarily benefiting from an increase in transaction amount and certain adjustments in benefits. The overdue ratio for credit cards remained at a satisfactory level. The overseas branches reported a 2.8% increase in net income, with net interest income and fee income showing a healthy growth of 12.7% YoY. Moreover, the net income after tax for these branches grew by 4.2% YoY, and the quality of assets remained stable.

Fubon Securities maintains its position among the top three in market share for significant business operations Fubon Insurance continues to hold the leading position in the market

In the first quarter of 2025, Fubon Securities' net income was NT$1.66 billion, marking a 29.0% decline from the previous year, impacted by global stock market fluctuations and decreases in the Taiwan stock index and daily averages. The company continues to rank among the top three in significant business markets and profitability and will strive to enhance its core business market share, improve digital services, deepen customer engagement, and expand the scale of its wealth management operations.

Fubon Insurance has benefited from the optimization of its business structure and quality control, achieving a net income of NT$16.2 billion in the first quarter of 2025, which represents an increase of 20.5% YoY. The premium income from written policies has grown by 14.7% YoY, resulting in a market share of 25.4%, thus maintaining its position as the market leader. The combined ratio stands at 82.9%, which is an improvement compared to the same period of last year, reflecting the ongoing optimization of its business structure and risk management effectiveness. The return on investment is 11.38%, indicating gains from the disposal of reinvestments. Fubon Insurance's capital level remains robust, with the RBC rising to 350%.

Fubon Bank (China) has maintained a solid quality of its financial products, with a net income increase of 215.0% YoY

Fubon Bank (China) has experienced growth in retail loans, leading to an increase of 16.3% YoY. In the first quarter of 2025, the net interest margin (NIM) saw a rise of 123 basis points compared to the previous year, which reflects the trend of interest rate reductions in both the renminbi and US dollar, alongside effective cost management driven by an optimized deposit structure and continuous improvements in the loan portfolio. Additionally, Fubon Bank (China) recorded a net income growth of 215.0% YoY, which is indicative of increased net interest income and capital gains from bonds and the quality of its assets has also remained strong.

By the end of 2024, Fubon Life's Embedded Value (EV) is projected to exceed NT$ trillion for the first time, reflecting an EV of NT$ 78.6 per share for Fubon Financial Holdings

Fubon Financial Holdings has announced today the embedded value (EV) of Fubon Life as of the end of 2024. This increase is attributed to stable profits and an enhancement in net worth for 2024, resulting in a total embedded value of NT$1.746 trillion. This marks the first time that Fubon Life’s embedded value has surpassed NT$1 trillion, setting a new historical record, and represents a 15.4% increase from the NT$931 billion reported at the end of 2023.

For the year 2024, Fubon Life's performance in the sales of installment payment and protection products is notably strong, with ongoing improvements to its product offerings. The overall first-year premium (FYP) and first-year equivalent premium (FYPE) have increased by 16.5% and 25.8% YoY, respectively. The value of new business (VNB) is NT$25.7 billion, showing a growth of 28.7% YoY. The profit margin of the new business value (VNB/FYP) has reached a record high of 23.4%.

Fubon Life reflects in Fubon Financial Holdings an EV per share of NT$78.6. In terms of appraisal value (abbreviated as AV), if we include the value of new contracts over the next 20 years, Fubon Life's AV by the end of 2024 will be NT$1 trillion and 330.5 billion, which translates to an AV per share of NT$97.4 for the financial holding company.