Fubon Financial

Fubon FHC’s unaudited consolidated pre-tax profit was NT$13.17bn, net profit was NT$10.12bn, and EPS was NT$0.72 in January 2026. Fubon FHC’s adjusted net income in January would be NT$19.76bn, with adjusted EPS of NT$1.41, including stock disposal gains and losses under Fair Value through Other Comprehensive Income (FVOCI). This adjustment is due to the adoption of International Financial Reporting Standard 17 (IFRS 17) in Taiwan insurance industry in 2026, and the cancellation of the overlay approach for financial assets, resulting in some financial assets reclassified as FVOCI. FVOCI stock disposal gains and losses are not included in current profit and loss, but are directly reflected in retained earnings and are available for earnings distribution. Therefore, adjusted net income would be the indicator to present performance and sources of dividend.

Subsidiaries are well performed, with Taipei Fubon Bank’s and Fubon Securities’ net profits hitting new monthly high. Fubon Insurance’s monthly net profit reached the second-highest level on record for the same period. The performance of each subsidiary is as follows:

Fubon Life’s net profit was NT$2.81bn in January 2026. Including FVOCI stock disposal gains and losses, adjusted net income was NT$12.27bn. The insurance industry in Taiwan has adopted IFRS 17 since 2026, with insurance contract liabilities measured at current interest rates, which is expected to enhance core underwriting profitability upon steady contribution from the release of Contractual Service Margin (CSM). After the transition, the cost of liabilities (COL) decreased to slightly below 2% (AUM basis), favoring the maintenance of a positive spread between after hedge recurring yield and COL. In terms of product strategies going forward, Fubon Life continues focusing on participating, interest-sensitive, and investment-linked products, emphasizing US dollar long-term high-protection life insurance, and the promotion of health and accident products, prioritizing value creation with the goal of increasing new business CSM. Fubon Life’s First Year Premium (FYP) in January reached NT$21bn, up 47% YoY, with traditional participating and investment-linked products as the main growth drivers. Total Premium (TP) was NT$49.3bn, up 36% YoY, both estimated to rank second in the industry. Fubon Life actively promotes protection-type and regular paid products. Personal health and accident insurance grew 16% YoY, and First Year Premium Equivalent (FYPE) reached NT$8bn, up 8% YoY, in January.

On the investment side, the cancellation of the overlay approach for financial assets led to some assets reclassified as FVOCI. Gains and losses from disposal of equity investments are not recognized in profit and loss, resulting in lower investment-related profit and loss compared to previous years, but these are directly reflected in retained earnings and are available for earnings distribution. Therefore, adjusted net income would be the indicator to present performance and sources of dividend. FVOCI stock disposal gains in January amounted to NT$9.46bn, and adjusted net income at NT$12.27bn. The primary investment income were interest income, capital gains from domestic and overseas stocks and funds, and fund dividend income. In the stock market, the TAIEX remained at a relatively high level in January, and Fubon Life continued to realize capital gains in Taiwan equity positions. In the bond market, the US economy performed well, the Fed maintained its monetary policy, and treasury yields rose slightly in January. Fubon Life aims to steadily increase recurring income, optimize bond allocation, and manage cash positions. As for foreign currency market, the US dollar fluctuated in January by appreciating 0.1% against the NT dollar. In response to amendments to the “Regulations Governing the Preparation of Financial Reports by Insurance Enterprises,” Fubon Life determined it meets the rare special circumstances for Taiwanese life insurers and, according to the bulletin, passed the resolution on the board meeting to classify directly held financial assets as debt instruments measured at Amortized Cost (AC) and not designated for FX risk hedging, adopt the exchange rate amortization method for those overseas debt instruments measured at AC and meet certain criteria since January 1 2026. The company will continue to monitor the market and dynamically adjust hedging positions to properly manage FX risks.

In terms of capital, overall capital levels and Taiwan Insurance Solvency (TIS) ratio are sound. The company continues to closely monitor exchange rates and market changes, assess potential impacts, and ensure robust solvency.

Taipei Fubon Bank’s net profit was NT$4.91bn, up 26% YoY in January 2026, marking a monthly record high. In terms of net interest income, both deposit and loan growth remained decent in January, with YoY growth of 10% and 13%, respectively. This together with the increase of NIM boosted net interest income growth of 29% YoY. For net fee income, wealth management sales growth momentum continued, resulting in overall net fee income growth of 39% YoY. Monthly total revenues surpassed NT$10bn for the first time, up 27% YoY. Asset quality remained benign. NPL ratio and coverage ratio were at 0.12% and 1,116%, respectively, as of end-January.

Fubon Insurance’s net profit was NT$1.31bn in January 2026, the second highest for the same period in history. After including FVOCI stock disposal gains and losses, adjusted net income was NT$1.40bn, mainly driven by underwriting profit and investment income. The adoption of IFRS 17 has no significant impact on P&C underwriting profit, as most P&C businesses are short-term basis. In investments, the overlay approach for financial assets was cancelled, and some financial assets were reclassified as FVOCI. The adjustments and the impact on profit and loss was minimal. Following the adoption of IFRS 17, Fubon Insurance continued to maintain a robust capital position.

In terms of business performance, total written premiums in January reached NT$8.51bn, setting a new monthly record and up 12% YoY. Both personal and corporate insurance saw double-digit growth, with engineering insurance and accident & health insurance performing exceptionally well, and monthly written premiums were up 41% and 25% YoY, respectively, and the growth momentum also outpaced the market average. Fubon Insurance’s written premium market share was 26.5%, up 1.2% YoY, maintaining its position as market leader.

Fubon Securities’ net profit reached NT$1.65bn in January 2026, up 262% YoY, not only setting a new record for January but also marking the second highest single-month record. In fee income, benefiting from robust stock market trading, the average daily turnover of Taiwan stock market in January hit NT$980bn, resulting in brokerage and wealth management business income growth of 149% and 63% YoY, respectively. Additionally, the TAIEX climbed about 3,100 points in January, resulting in strong income performance from proprietary trading business.

Fubon Asset Management’s net profit was NT$0.15bn in January 2026, up 61% YoY, with profit momentum continuing upward. Profit was mainly driven by fee income from domestic & overseas equities (including ETFs) and discretionary mandates (including private equity), which grew 46% and 76%, respectively. In terms of AUM, the level reached a new high of NT$1.2tn, up 44% YoY, with growth momentum mainly coming from increases in money market funds & domestic and overseas equity funds (including ETFs).