Fubon Financial

Fubon Financial reported unaudited consolidated pre-tax profit of NT$11.77bn and net profit of NT$11.03bn in July. Cumulative consolidated pre-tax profit was NT$71.62bn and cumulative consolidated net profit was NT$62.37bn, with EPS of NT$4.29. Specifically, Taipei Fubon Bank’s cumulative net profit reached a record high for the same period. 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 July net profit was NT$5.93bn, and cumulative net profit for the first seven months was NT$30.48bn. The main sources of investment income this month were dividend income from domestic stocks, interest income, capital gains on domestic and foreign equities and funds, and fund dividend income. In the stock market, as TAIEX surged by about 1,287 points in July, coinciding with the peak dividend season for Taiwan stocks, capital gains and dividend income from Taiwan equity positions increased this month. In the bond market, the solid performance of the US GDP in the second quarter led to a rebound in US Treasury yields in July. Fubon Life seized the opportunity to increase bond position and maintained sufficient liquidity to flexibly respond to subsequent market conditions. In the foreign exchange market, as the US gradually announced reciprocal tariff plans and the Fed maintained a wait-and-see stance, the US dollar trend turned stabilized. 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$71.8bn, up 11% YoY, and cumulative total premium (TP) reached NT$222.0bn, up 8% YoY. Both cumulative FYP and TP were estimated to rank the top 2 in the industry. Monthly FYP was NT$8.9bn and TP was NT$29.7bn, 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$34.4bn, up 14% YoY. Fubon Life’s capital position remained decent, with equity to asset ratio over 10% and RBC ratio around 400% as of July. Fubon Life will continue to closely monitor exchange rates and market movement, assessing potential impacts to ensure decent capitalization.

Taipei Fubon Bank’s July net profit was NT$2.96bn and cumulative net profit reached NT$22.48bn, up 15% YoY, hitting a historical high, mainly driven by steady core business earnings momentum. Cumulative net interest income and fee income grew 11% and 12%, respectively, resulting in double-digit growth in total revenue. On business performance, total loan growth increased 11% YoY, mainly supported by growth from overseas, SME and personal loans. On fee income, cumulative wealth management fees climbed double digit, mainly from sales in mutual funds and bancassurance products. Credit card spending remained stable, benefiting from higher overseas travel demand and consumption. Asset quality remained benign. NPL ratio and coverage ratio were at 0.12% and 1,048%, respectively, as of July.

Fubon Insurance’s July net profit was NT$0.57bn and cumulative net profit reached NT$3.45bn, up 24% YoY, reflecting the selection of business quality and risk control. In terms of business performance, the direct written premium in July was NT$5.62bn. Notably, accident and health insurance outperformed the market with a growth of 17% YoY. Cumulative written premium was NT$42.84bn, up 8% YoY. The market share in total direct written premium was 24.2%, continuing to lead the market.

Fubon Securities’ July net profit was NT$1.24bn and cumulative net profit was NT$5.30bn, the second highest for the same period, though down 21% YoY. The Taiwan stock market was affected by US tariff policies, resulting in increased market volatility and cooling in trading volume. The average daily trading volume of Taiwan stocks for the first seven months dropped 19% YoY, leading to a decline in brokerage income compared to the same period last year.