First Financial: Central Bank unlikely to hike rates; NTD to stay above 30.5

First Financial Holding held its Q1 earnings call today, announcing a record-high net profit of NT$8.244 billion, a 26.5% year-on-year increase, with an EPS of NT$0.57. Subsidiary First Bank reported NT$7.573 billion in profit, while First Securities saw a 325.8% increase to NT$511 million. First Financial noted strong growth in core banking, with net interest income up 22.4% and net fee income up 13.7%. Looking ahead, the group plans to focus on AI-related opportunities and the Asian Asset Management Center initiative. Vice President Li Shu-ling stated that the central bank has little motivation to hike rates due to frozen energy prices and lack of severe inflation. Regarding the exchange rate, she expects the NTD to appreciate but not break the 30.5 level against the USD. Regarding the US Fed, she anticipates potential rate cuts in the second half of the year. First Bank VP Tsai Shu-hui noted that the housing market is seeing slight corrections with regional variations. The group also confirmed a cash dividend of NT$1.3 per share, the highest in six years.