Fubon Financial

Net Income and earnings per share lead the financial holding industry & subsidiaries deliver steady growth and maintain market leading positions

Fubon Financial Holdings (2881) held the 2025 annual investor conference today (16th) to announce the financial figures and operating status for the whole year of 2025. In 2025, Fubon Financial Holdings' net income was NT$120.94 billion and its earnings per share (EPS) was NT$8.37. Both net income and earnings per share ranked No.1 in the financial holding industry. In 2025, the Group’s subsidiaries also delivered strong performance. Fubon Life ranked first in the market in net income. Taipei Fubon Bank continued to set a new historical high in net income. Fubon Securities also recorded a record high in net income and Fubon Insurance reported an increase of 130.9% YoY in net income.

At the end of 2025, Fubon Financial Holdings' total assets reached around NT$12.9 trillion with an increase of 6.7% YoY and the net worth of NT$982.6 billion with an increase of 3.3% YoY and the net worth of per ordinary share has increased to NT$63.30. The return on assets (ROA) and return on equity (ROE) were 0.97% and 12.51% respectively.

Fubon Financial Holdings actively implements its four ESG strategies and continues to leverage Its financial influence

Richard M. Tsai, Chairman of Fubon Financial Holdings, stated that Fubon is actively implementing its four ESG strategies—decarbonization, digitalization, empowerment, and connection—working closely with its subsidiaries to leverage its financial influence. The Group continues to advance green finance across investment and financing activities, reaching NT$2.7 trillion in 2025, with a target of NT$2.9 trillion by 2030. On the investment and underwriting fronts, Fubon also announced a more ambitious decarbonization timetable in 2025, aiming to fully exit coal‑related industries by the end of 2030 and to completely phase out exposure to unconventional oil and gas industries by the end of 2040.

Fubon Financial Holdings’ sustainability performance continues to deliver strong and tangible results. The Group has been selected as a constituent of the Dow Jones Sustainability World Index for eight consecutive years, the Dow Jones Sustainability Emerging Markets Index for nine consecutive years, and the MSCI Sustainability Index for nine consecutive years, while earning an AA rating in the MSCI ESG ratings for the insurance sector. In addition, Fubon has been named to TIME’s World’s Most Sustainable Companies list for two consecutive years, ranking fourth among global financial institutions in 2025. The Group has also achieved leadership level for six consecutive years in both CDP Climate Change and Supply Chain Engagement assessments. Furthermore, Fubon Financial Holdings and its subsidiaries received a total of 22 awards at the “2025 Taiwan Corporate Sustainability Awards (TCSA)”, the highest number among financial holding companies, marking a record high over the Group’s 12 years of participation and fully demonstrating its comprehensive sustainability achievements.

Looking ahead, Fubon Financial Holdings will continue to strengthen the development of its core businesses across banking, life insurance, securities, and property insurance. The Group will further integrate resources, deepen customer engagement, expand scale, and unlock growth potential in wealth management and cross‑selling. At the same time, Fubon will drive operational upgrades through digitalization and AI to enhance customer experience and improve service efficiency, while leveraging its financial expertise to advance sustainable development. Under a robust risk management framework, the Group will continue to expand its presence in both domestic and overseas markets to capture emerging opportunities and future growth prospects.

Fubon Life tops the industry in net income in 2025, driven by participating and foreign‑currency products, with solid investment performance

In 2025, Fubon Life reported net income of NT$62.65 billion, ranking first in the industry. First‑year premiums, renewal premiums, and total premium income all ranked second in the market. After hedging, the recurring yield improved year‑on‑year, with total investment return reaching 4.90%. The foreign exchange price fluctuation reserve stood at NT$142.1 billion, the highest in the industry. With participating products as its core growth driver, Fubon Life achieved an increase of 3.1% YoY in first‑year premiums, while renewal premiums remained in line with 2024 levels, resulting in an increase of 1% YoY in total premium income. Product sales continued to shift toward installment‑payment and protection‑oriented products with higher CSM. The proportion of installment‑payment products rose from 58.2% to 60.8%. Strong sales of USD‑denominated participating products increased the share of foreign‑currency policies from 41.2% to 51.9%, enhancing asset‑liability currency matching. In terms of first‑year equivalent premiums, the share of traditional life insurance installment‑payment products increased to 70.5%, with FYPE/FYP exceeding 45%, above the industry average. Value of New Business (VNB) reached NT$25.3 billion. Across distribution channels, proprietary channels—including Taipei Fubon Bank and the agency force—accounted for 72.6% of first‑year premiums. Among them, the agency channel recorded 17% growth in FYP, while the bancassurance channel continued to focus on installment‑payment products.

In terms of its investment portfolio, Fubon Life timely realized equity capital gains in 2025, with returns on both domestic and overseas equities outperforming their respective market benchmarks. Cash holdings were maintained at a relatively high level, with asset allocation to be dynamically adjusted in response to market conditions. For overseas fixed‑income assets, the portfolio continued to focus primarily on North American investment‑grade corporate bonds and financial bonds. Recurring investment income remained broadly in line with 2024 levels. Higher cash dividends from equities mainly reflected increased dividend payouts in the Taiwan equity market, which offset a decline in fund distribution income. Meanwhile, the decline in investment returns after hedging and foreign‑exchange effects primarily reflected the appreciation of the New Taiwan dollar in the first half of 2025, as well as the impact of the new foreign‑exchange reserve mechanism. Foreign‑exchange gains recorded in the second half of 2025 were fully appropriated to the foreign‑exchange price fluctuation reserve. On a like‑for‑like basis with the first half of the year, the investment return after hedging and foreign‑exchange effects would have reached 5.42% in 2025.

Regarding the hedging portfolio, supported by U.S. interest rate cuts that narrowed the interest rate differential between Taiwan and the United States, foreign‑exchange swap costs continued to improve. Together with lower recurring hedging costs, the recurring yield after hedging increased year‑on‑year. Beginning in 2026, a series of new mechanisms to manage foreign‑exchange volatility will be implemented. These include incorporating foreign‑currency assets with exchange‑rate impacts—such as FVTPL equities and funds—into the scope of management, along with new foreign‑exchange accounting standards and the foreign‑exchange price fluctuation reserve mechanism, which are expected to significantly reduce overall foreign‑exchange volatility. Hedging costs will mainly comprise foreign‑exchange swap expenses and fixed appropriations to the foreign‑exchange price fluctuation reserve.

Taipei Fubon Bank posts another record high in profit in 2025, with key businesses delivering steady growth

In 2025, Taipei Fubon Bank reported net income of NT$36.34 billion, representing an increase of 19.5% YoY and marking another record high for the same period. Total net revenue rose 12.6% YoY driven by a 14.1% increase in net interest income, reflecting growth in loan and deposit volumes as well as an improved net interest margin. Net fee income increased 13.4% YoY, supported by continued contributions from wealth management and credit card businesses. Net fee income from wealth management grew 12.3% YoY, mainly driven by higher mutual fund and bancassurance revenues, while net fee income from credit cards rose 11.5% YoY, primarily reflecting increased overseas spending and certain adjustments in benefits.

In the lending segment, the total loan balance increased by 10.1% YoY. In corporate lending, foreign currency loans grew by 13.3% YoY, driven by disbursements from syndicated loans to large domestic enterprises and overseas projects, while growth in loans to small and medium-sized enterprises (SMEs) also contributed to an increase of 13.2% in New Taiwan Dollar (NTD) loans. In retail lending, the balance of mortgage loans rose by 7.7% YoY, and other retail loans increased by 38.1% YoY. In the deposit segment, New Taiwan Dollar and foreign currency deposits increased by 8.5% and 3.4% YoY, respectively, driving overall deposit growth of 6.6% YoY. The net interest margin (NIM) increased by 6 basis points YoY in 2025, reflecting an optimized deposit and loan structure. The deposit-loan spread increased by 15 basis points YoY, primarily due to a decline in deposit rates. Regarding asset quality, the non-performing loan ratio and loan loss provision coverage ratio remained sound, and asset quality across all business lines remained robust.

Fubon Securities maintains its position among the top three in the important business market, while Fubon Insurance continues to hold the leading market share

After experiencing volatility, global equity markets rebounded swiftly in 2025. Trading activity in the Taiwan equity market remained robust, with the index continuing to climb and surpass historical highs. Against this backdrop, Fubon Securities reported net income of NT$10.59 billion in 2025, representing an increase of 5.7% YoY. Key businesses—including brokerage, margin financing, and securities lending—maintained top‑three market rankings. Growth in interest income and underwriting revenue also drove an increase in other income, with Fubon Securities ranking first in market share for Taiwan government bond underwriting in 2025. Looking ahead, Fubon Securities will continue to expand market share in its core businesses, comprehensively advance its wealth management transformation, and further optimize digital services. At the same time, the firm will enhance customer service across the board through the deployment of “Fubon AI PRO.”

Benefiting from business structure optimization and enhanced quality control, Fubon Insurance reported a net income of NT$6.97 billion in 2025, representing an increase of 130.9% YoY. Written premium income grew by 4.9%, and the company’s market share reached 23.7%, maintaining its position as the market leader. The combined ratio stood at 83.9%, a further improvement from the same period last year, primarily due to business structure adjustments and effective risk management. The return on investment was 5.6%, reflecting steady investment performance

Fubon Bank (Hong Kong) has experienced significant growth in net income. Meanwhile, Fubon Bank (China) has maintained a steady growth in both deposit scale and asset quality

In 2025, Fubon Bank (Hong Kong)’s net income surged by 51.8% YoY, primarily driven by overall scale expansion and a reduction in provisioning expenses, which offset the 7-basis-point YoY decline in the net interest margin caused by falling market interest rates. Loans increased by 23.1% YoY mainly driven by growth in loans to corporations and financial institutions, deposits rose by 21.7% YoY, with the growth momentum primarily coming from retail deposits.

Fubon Bank (China) reported an increase of 31.0% YoY in net income, primarily driven by higher net interest income. Both corporate and retail lending recorded double‑digit growth, lifting total loans by 19.0% YoY, while growth in corporate deposits drove a 16.6% YoY increase in total deposits. At the same time, the net interest margin (NIM) rose by 78 basis points YoY in 2025, reflecting a higher proportion of online retail lending and a reduction in U.S. dollar deposits. Asset quality remained stable and sound.