Mega Financial Achieves Record Profit in July and First Seven Months with EPS of 1.73

Mega Financial (2886-TW), a leading publicly listed financial holding company, announced its net income for July and the first seven months of the year on July 13. The net profit for July was 43.52 billion NT dollars, up 10.8 billion NT dollars (33.01%) from the previous month and up 2.45% year-on-year. The cumulative net profit for the first seven months was 256.59 billion NT dollars, up 14.45% year-on-year, setting a new historical high. The earnings per share (EPS) reached 1.73 NT dollars.

Mega Financial stated that the record-high profit for the first seven months was mainly driven by the sustained growth of core businesses and the favorable performance of the Taiwan stock market, which boosted dividend income.

The core subsidiary, Mega Bank, reported a net profit of 42.12 billion NT dollars for July, up 55.42% from the previous month and up 25.91% year-on-year. The cumulative net profit for the first seven months was 200.78 billion NT dollars, up 7.29% year-on-year. The significant growth in July's profit was mainly due to the recognition of approximately 15 billion NT dollars in dividend income. The cumulative profit growth was driven by wealth management and lending businesses, which boosted net interest and fee income. However, the performance of financial operations was slightly weaker than the same period last year due to a decrease in SWAP (foreign exchange trading) profits.

The securities subsidiary, Mega Securities, reported a loss of 3.93 billion NT dollars for July, affected by a correction of approximately 3,000 points in the Taiwan stock market and a decrease in trading volume. This was a decrease of 8.06 billion NT dollars from the previous month. However, the cumulative net profit for the first seven months was 31.32 billion NT dollars, up 171.62% year-on-year, setting a new historical high. The market volatility in July led to a weakening performance in proprietary trading, and the average daily trading volume of the Taiwan stock market decreased by approximately 4,000 billion NT dollars to 1.2 trillion NT dollars, resulting in a corresponding decrease in brokerage fee income.

The bill and property insurance businesses maintained steady growth. Mega Financial's bill business reported a net profit of 3.5 billion NT dollars for July, up 1.16% from the previous month and up 31.28% year-on-year. The cumulative net profit for the first seven months was 21.51 billion NT dollars, up 43.37% year-on-year. This was mainly due to an increase in positions in New Taiwan dollar bonds, an expansion of the interest rate differential, a decrease in interest expenses on foreign currency bonds, and an increase in dividend income of more than 1 billion NT dollars.

Additionally, Mega Insurance reported a net profit of 1.01 billion NT dollars for July, up 27.94% year-on-year. The cumulative net profit for the first seven months was 6.63 billion NT dollars, up 45.46% year-on-year. The main reasons were the growth in premium income from accident insurance and the offsetting of losses from pandemic insurance claims, along with the establishment of investment positions, which increased dividend income by more than 60 million NT dollars compared to the same period last year.