Fubon Financial

Fubon FHC reported cumulative consolidated pre-tax profit of NT$136.94bn and net profit of NT$120.85bn in 2025, with EPS at NT$8.36. Profit in 2025 was significantly impacted by Fubon Life’s provisioning in FX reserves. Fubon FHC reported consolidated net profit of NT$0.14bn in December 2025, reflecting the one-time FX provision of NT$28.1bn in Fubon Life in the month. If the full year earnings impact from Fubon Life’s FX provision were excluded (i.e. the amount of reclassification of liability reserves into FX reserves are not applicable), cumulative pre-tax profit of the year, on a pro forma basis, would be approximately NT$193.4bn for Fubon FHC.

Fubon FHC’s subsidiaries delivered outstanding performance: Taipei Fubon Bank and Fubon Securities both achieved record-high profit in December, while Fubon Insurance posted its second-highest December profit in history. For the full year, Taipei Fubon Bank, Fubon Insurance, and Fubon Securities all set new highs for annual profit. Details of each subsidiary’s performance are as follows:

Fubon Life reported net loss of NT$5.11bn in December 2025, with cumulative 2025 net profit at NT$62.55bn. The net loss in December was mainly due to the application in June 2025 of the ‘Adjustment to the Basis for Life Insurance Liability Reserve Provision’ regulation, under which, as per regulatory instructions, a one-time provision of NT$28.1bn in FX reserve (30% of pre-tax profit in 2025) was required, strengthening the resilience against FX risk. Excluding the impact of NT$28.1bn provision, Fubon Life’s consolidated pre-tax profit for December would be NT$21.0bn. In addition, the profit for 2025 was significantly impacted by the substantial provisioning in FX reserves. If the full year earnings impact from the FX provision were excluded (i.e. the amount of reclassification of liability reserves into FX reserves are not applicable), cumulative pre-tax profit of the year, on a pro forma basis, would be approximately NT$120.0bn for Fubon Life. The main investment income this month came from interest income, capital gains on domestic and overseas equities and funds, and fund dividend income. In equities investment, the TAIEX remained at a relatively high level in December, and capital gains were continuously realized in the Taiwan equity portfolio. In fixed income investment, treasury yields rebounded and then consolidated in December. Fubon Life continued to optimize bond allocation and cash management, aiming to steadily raise recurring income. In foreign exchange market, the US dollar movement is impacted by foreign capital outflows, resulting in a slight 0.1% appreciation of the US dollar against the NTD in December. The company will continue to monitor the market and dynamically adjust hedging positions to properly manage FX risk.

Fubon Life’s standalone cumulative first year premium (FYP) for 2025 reached NT$113.5bn, and total premium income was NT$367.4bn, both are estimated to rank second in the industry. December standalone FYP was NT$8.5bn, and total premium income was NT$36bn, also estimated to rank second. Fubon Life’s product sales continue to focus on regular paid and protection-type high CSM products, with 2025 first year equivalent premium (FYPE) income reaching NT$51.7bn, estimated to rank second in the industry. Fubon Life’s net worth ratio exceeded 10% and RBC exceeded 400% in December, maintaining a sound capital level. The company continues to closely monitor FX and market changes to assess potential impacts and ensure robust solvency.

Taipei Fubon Bank reported net profit of NT$1.56bn in December, with cumulative 2025 net profit at NT$36.33bn, up 19% YoY, setting new historical highs for both December and full-year net profit. In 2025, Taipei Fubon Bank’s business momentum remained robust, with double-digit loan growth and NIM expansion driving a 14% increase in net interest income. Wealth management business benefited from growth in regular paid policies and fund sales, while credit cards saw increased overseas spending, leading to a 13% rise in related net fee income. Financial market operations also outperformed the level in 2024, resulting in double-digit overall revenue growth. As of end-December, the NPL ratio was 0.12% and the coverage ratio was 1,099%, maintaining sound asset quality.

Fubon Insurance reported net profit of NT$0.60bn in December 2025, with cumulative 2025 net profit at NT$6.88bn, up 128% YoY. The reinsurance recovery for covid-related policies has been successfully completed. The Company also performed well in both underwriting and investment, with underwriting income and net profit both reaching historical highs in 2025. In terms of business performance, December total written premium was NT$4.38bn, and 2025 written premium income was NT$67.67bn, up 5% YoY. Engineering insurance, up 19% YoY, was the outstanding business line driven by green energy insurance opportunities. The annual total written premium market share was 23.7%, maintaining its leading position in the market.

Fubon Securities reported net profit of NT$0.83bn in December, with cumulative 2025 net profit reaching NT$10.59bn. Net profit has exceeded NT$10bn for two consecutive years, continuously setting new historical highs since its establishment in 1988. Global stock markets rebounded rapidly with high volatility in 2025. Taiwan stock index rose in tandem and repeatedly hit new highs. Active market trading and simultaneous increases in both price and volume have driven the overall performance of Fubon securities, demonstrating its robust and sustained profit growth.