Public Financial Holding Companies Post Strong Profits! First Financial Reaches 20 Billion NT$ Milestone in First 7 Months; Hua Nan Posts 30% YoY Growth

The first seven months of earnings for public financial holding companies have been revealed. Following Mega Financial and Cathay Financial, First Financial Holding (2892-TW) and Hua Nan Financial Holding (5880-TW) announced their latest self-reported earnings on the 14th. Benefiting from strong contributions across banking, securities, and life insurance subsidiaries, First Financial reported a consolidated after-tax net profit of NT$20.937 billion for the first seven months, a 23.6% year-on-year increase. Earnings per share (EPS) reached NT$1.46, setting a new record for the same period and officially entering the 'NT$20 billion club'.

Hua Nan Financial is equally impressive, posting a consolidated after-tax net profit of NT$16.077 billion for the first seven months, up 33.2% year-on-year—an all-time high for the period. All three core businesses—banking, securities, and life insurance—achieved record-high profits for the same period, delivering outstanding results.

In July alone, First Financial posted an after-tax net profit of NT$3.139 billion, up 4.7% from June and 4.84% year-on-year. The core engine, First Commercial Bank, performed exceptionally well. Dividend income significantly boosted financial transaction gains, driving its July after-tax net profit to NT$3.202 billion—a 27.1% month-on-month increase and a 16.23% year-on-year rise, marking a new monthly record.

First Commercial Bank noted that in addition to dividend income, net interest income and net fee income continued to grow steadily, while asset quality remained strong. As of the end of July, the non-performing loan (NPL) ratio stood at 0.16%, with the coverage ratio rising further to 876.8%. Cumulative after-tax net profit for the first seven months reached NT$18.658 billion, up 12.7% year-on-year.

Beyond stable banking growth, First Financial's securities arm emerged as a profit dark horse this year. First Financial Securities posted an after-tax net profit of NT$121 million in July. Affected by the pullback in Taiwan's stock market, brokerage fees and investment gains declined, resulting in a 58.4% month-on-month and 2.42% year-on-year decrease. However, buoyed by strong trading activity in the first half, cumulative after-tax net profit for the first seven months reached NT$1.531 billion—up 262.9% year-on-year. This not only surpassed last year's full-year profit but also set a new historical record.

On the life insurance front, First Life Insurance benefited from higher investment gains, posting an after-tax net profit of NT$175 million in July—up 160.6% from the previous month and 44.63% year-on-year. Cumulative after-tax net profit for the first seven months reached NT$593 million, continuing to contribute to group earnings.

Meanwhile, Hua Nan Financial also delivered strong results. The group posted a consolidated after-tax net profit of NT$2.677 billion in July. For the first seven months, consolidated after-tax net profit reached NT$16.077 billion, up NT$4.007 billion (33.2%) year-on-year—another record high for the period.

Looking at Hua Nan's key subsidiaries, all three—banking, securities, and life insurance—achieved record-high profits for the first seven months. Core subsidiary Hua Nan Bank posted cumulative after-tax net profit of NT$14.255 billion, up 12.55% year-on-year, remaining the primary profit driver.

Notably, Hua Nan Securities saw the most dramatic growth, with cumulative after-tax net profit reaching NT$1.361 billion for the first seven months—up NT$1.333 billion year-on-year, nearly doubling. Hua Nan Life Insurance also benefited from improved investment and insurance operations, posting cumulative after-tax net profit of NT$1.128 billion—up NT$919 million year-on-year, a roughly 4.4-fold increase—demonstrating strong profit momentum.