Hua Nan Financial Holdings Open to Merger Proposals, Sets Three Principles for Consolidation

Amid market rumors of a potential 'four-in-one' merger involving First Securities Investment Trust, Mega Securities Investment Trust, Taiwan Cooperative Securities Investment Trust, and Hua Nan Securities Investment Trust, Hua Nan Financial Holdings stated today that it holds an open attitude toward merger issues, noting that recent consolidations among private financial groups may reshape the market landscape. The company will proceed based on three principles: diversification of profits, clear merger strategy and evaluation, and consensual consolidation. Hua Nan Financial Holdings held its Q1 earnings call today, announcing a Q1 net profit of NT$7.66 billion (a 44% year-on-year increase) and earnings per share (EPS) of NT$0.55. The cumulative net profit for the first four months reached NT$11.14 billion, a 60% increase year-on-year, marking a record high for the same period. Hua Nan Financial Holdings GM Hsiao Yu-mei mentioned that all subsidiaries, including banking, securities, property insurance, and venture capital, achieved record-high net profits for the period. Specifically, Hua Nan Bank saw its net profit for the first four months reach NT$8.447 billion (a 23% increase) due to improved interest spreads and growth in wealth management. Hsiao also reported that Hua Nan Securities saw its net profit for the first four months reach NT$1.932 billion (a 733% increase) due to active trading in the Taiwan stock market. Regarding the merger rumors, Hsiao stated that the group maintains an open, pragmatic, and comprehensive mindset, and is open to any merger that helps improve long-term competitiveness, synergy, profitability, and shareholder value. Currently, the focus remains on internal growth, deepening core businesses such as corporate finance, foreign exchange, personal finance, and wealth management, as well as digital transformation. Regarding the potential four-in-one merger of public investment trusts, it is still under evaluation, and any concrete progress will be disclosed in accordance with regulations. Regarding the economic outlook, Hua Nan Bank executives expressed concern over inflationary pressures from Middle East geopolitical tensions, predicting that the US Federal Reserve may not cut interest rates until December. For Taiwan, they expect strong export momentum driven by AI demand and steady domestic growth, with GDP growth potentially reaching 7-8%. Regarding the real estate market, they expect continued low transaction volumes and a slow correction in prices due to ongoing policy restrictions.