Mega Financial Shareholders Approve NT$1.75 Dividend, Focus on Merger Efficiency

(Taipei, June 18 — Reporter Lu Yan-tzu) Mega Financial's shareholder meeting today approved its earnings distribution plan, declaring a cash dividend of NT$1.75 per share. Mega Financial CEO Chang Chuan-chang stated that the company will continue prioritizing cash dividends, conducting comprehensive assessments based on capital requirements, and maintaining a strong payout ratio.

Mega Financial held its 115th annual general meeting today, during which the 2024 business report and consolidated financial statements were approved. The group's consolidated net profit after tax reached NT$35.038 billion last year, a record high, with earnings per share (EPS) at NT$2.36.

During the meeting, shareholders inquired about Mega Financial's dividend policy, urging a gradual increase in the payout ratio. In response, Chang explained that cash dividends will remain the primary form, citing this year's payout ratio of 74%. While Mega Financial previously issued stock dividends, international trends now favor cash dividends, and the company intends to maintain a robust payout ratio.

Regarding the increasing frequency of M&A activities in Taiwan's financial sector, Chang outlined three key criteria for potential targets: first, asset quality must be sound to avoid acquiring a "rotten apple"; second, the equity structure should be clear and integration feasible, avoiding companies with complex ownership; third, the target must contribute to the group's long-term profitability, particularly in financial metrics such as ROE (return on equity), ROA (return on assets), and EPS.

Chang emphasized that Mega Financial will not pursue mergers "for the sake of merging" or for scale alone, but rather to enhance long-term operational efficiency.

Looking ahead to the second half of the year, Chang noted Taiwan's strong economic performance, with the Directorate General of Budget, Accounting and Statistics forecasting full-year GDP growth of 9.64%. He also highlighted positive indicators from Taiwan's Purchasing Managers' Index (PMI), including strong new orders and a favorable six-month outlook.

Mega Financial Holding Company Chairman Tung Jui-pin stated that amid global political and economic uncertainties, the group will continue its prudent and稳健 business strategy, fully leveraging synergies across subsidiaries, deepening cross-sector collaboration, strengthening digital financial applications, and advancing sustainable finance. The group will implement its "dual-engine, dual-wing" strategy and flexibly adjust asset allocation to navigate changing international conditions. It will also seize opportunities in corporate globalization, supply chain restructuring, and evolving risk management needs to achieve continued operational excellence and maximize shareholder value.

In response to shareholder questions on cryptocurrencies and stablecoins, with suggestions for Mega Financial to "get ahead of the curve," Chairman Tung noted his personal view may differ from tech industry perspectives. He described stablecoins as a niche market primarily suited for B2C (business-to-consumer) or C2C (consumer-to-consumer) applications, whereas banks primarily operate in B2B (business-to-business). Under the current framework, stablecoins are not well-suited for banking operations.

Tung added that with the Virtual Asset Services Act currently under legislative review, the company will explore profitable business opportunities within that regulatory framework. While stablecoins may be suitable for cross-border micro-remittances, banks primarily focus on large-value cross-border transfers. (Edited by Chang Chun-mao) 1150618