Fubon Financial

Fubon FHC’s unaudited consolidated pre-tax profit was NT$20.75bn and net profit was NT$20.57bn in February, hitting a new high in history for the same period. Cumulative pre-tax profit was NT$33.91bn and net profit was NT$30.69bn with EPS of NT$2.19. Fubon FHC’s adjusted net income in February would be NT$28.54bn and cumulative adjusted net income would be NT$48.30bn, with adjusted EPS of NT$3.45, 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’ monthly and cumulative net profits both hit historical high of same period. Fubon Life’s monthly net profit reached the second-highest level on record for the same period. Furthermore, Fubon Life’s monthly adjusted net income hit historical record high. Fubon Insurance’s monthly net profit hit the highest level on record for the same period and cumulative net profit was 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$14.24bn in February with cumulative net profits of NT$17.05bn. FVOCI stock disposal gains in February and YTD amounted to NT$7.73bn and NT$17.20bn, respectively. Adjusted net income in February and YTD reached NT$21.97bn and NT$34.25bn, including FVOCI stock disposal gains and losses. Monthly adjusted net income in February marked a historical high for net profit for the same period. Besides contributions from the CSM release and recurring investment income, the result was also benefited from MTM gains of financial assets thanks to a record high level of Taiwan stock market and falling US treasury yields, while at the same time, the realization of capital gains from domestic and overseas equities and funds. As for bond market, the economic data appeared mixed. The Fed entered into a policy observation phase, and market fund flows are back to bond market, resulting in lower treasury yields. Fubon Life aims to steadily increase recurring income and manage cash positions in order to flexibly respond to subsequent market changes. As for foreign currency market, the US dollar depreciated by 0.7% against NT dollar driven by foreign capital inflows. Fubon Life will continue to monitor the market closely and adjust hedging positions dynamically to properly manage FX risks.

Fubon Life’s standalone cumulative first year premium (FYP) reached NT$32.5bn, up 29% YoY, and cumulative total premium (TP) reached NT$80.1bn, up 15% YoY. Both cumulative FYP and TP rank top 2 in the industry based on estimate. Monthly FYP and TP were NT$11.4bn and NT$30.9bn, respectively. Both FYP and TP in February rank top 2 in the industry based on estimate. As Fubon Life continues to focus on regular-paid and protection products, cumulative FYPE reached NT$12.0bn, which rank top 2 in the industry based on estimate.

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$3.66bn in February, with cumulative net profit of NT$8.57bn, up 22% YoY. Both monthly and cumulative profits set new historical highs, mainly benefiting from continued strong momentum in core business, driving total revenues up 26% YoY. Cumulative net interest income grew 27% YoY on back of 15% increase in loans and higher NIM. For net fee income, wealth management fees grew steadily thanks to strong momentum in bancassurance and mutual fund sales, resulting in overall net fee income growth of 28% YoY. Asset quality remained benign. NPL ratio and coverage ratio were at 0.12% and 1,119%, respectively, as of end-February.

Fubon Insurance’s net profit was NT$0.81bn in February, with cumulative net profit reaching NT$2.12bn, up 79% YoY. Adjusted net income was NT$0.91bn in February and NT$2.32bn for the first two months, including FVOCI stock disposal gains and losses. The development of all business lines was steady, with effective risk control, driving continuous profit growth.

In terms of business performance, total written premiums in February reached NT$5.06bn, with marine insurance growing 14% YoY, showing the most outstanding performance. Accident & health insurance also demonstrated robust momentum that outperformed the market, with travel insurance climbing to NT$0.29bn, setting a new monthly record. Cumulative written premium was NT$13.57bn, up 2% YoY, with a market share of 26.1%. Through a diversified product line, Fubon Insurance provides comprehensive protection services and solidifies the market leadership.

Fubon Securities’ net profit reached NT$1.26bn in February with cumulative net profit of NT$2.91bn, up 125% YoY, which both marked a new high on record of same period. In fee income, benefiting from robust stock market trading, the average daily turnover of Taiwan stock market in first two months of the year was close to NT$990bn, resulting in brokerage and wealth management business income growth of 77% and 44% YoY, respectively. Additionally, TAIEX hit a new record high in February and climbed about 6,450 points compared to year-end 2025, resulting in strong income growth of 233% YoY at proprietary trading business.

Fubon Asset Management’s net profit was NT$0.13bn in February, hitting a record high of same period. Cumulative net profit was NT$0.28bn, up 64% YoY. Total assets under management reached a new high of NT$1.3tn, up 51% YoY. AUM of domestic equity funds (including ETFs) grew 93%, with the 006208 Fubon Taiwan 50 ETF and 0052 Fubon Technology ETF showing the most meaningful growth, up 70% and 603%, respectively, driving the overall revenue and profit increase.