13 Financial Holding Companies Earned NT$492.7 Billion in First Seven Months; Cathay Financial Tops Monthly Profit, Fubon Maintains Cumulative Profit Leadership

The self-reported profits for July 2026 from Taiwan's 13 listed financial holding companies have all been released. Due to intensified global financial market volatility and pullbacks in U.S. and Taiwan stock markets, life insurance and securities subsidiaries faced turbulence in valuation and investment gains, causing the combined post-tax net profit of the 13 financial holdings to decline to NT$51.894 billion, down approximately 29.39% from June. Cathay Financial claimed the title of highest monthly profit.

However, capital markets remained active in the first seven months of the year, with core banking operations—such as lending and wealth management fees—showing strong growth. As a result, the cumulative post-tax net profit of the 13 financial holdings reached NT$492.782 billion, a substantial 124.78% increase year-on-year, setting a new record for the same period in history. Fubon Financial continues to lead in cumulative profit.

In terms of July's profit performance, Cathay Financial was the only holding to exceed NT$10 billion, reporting NT$10.82 billion. Taishin-SinKong Financial followed with NT$8.94 billion, ranking second, while Yuanta Financial ranked third with NT$6.359 billion. Fubon Financial (2881-TW) reported a self-declared post-tax net loss of NT$1.76 billion in July. This was primarily due to unrealized valuation losses in Fubon Life's financial asset positions, triggered by the correction in global tech stocks and a 6.5% monthly decline in the Taiwan stock market, resulting in a post-tax net loss of NT$7.66 billion for the month.

In cumulative profits for the first seven months, Fubon Financial recorded a consolidated post-tax net profit of NT$95.58 billion, up 53.25% YoY, with an EPS of NT$6.54, maintaining its leadership in both cumulative profit and EPS. Cathay Financial reported a consolidated post-tax net profit of NT$87.34 billion, up 59.47% YoY, with an EPS of NT$5.68, ranking second. Taishin-SinKong Financial ranked third with NT$52.78 billion, a remarkable 281.36% increase YoY, with an EPS of NT$2.04, setting a historical high.

In terms of year-on-year growth in cumulative profit, the merger effect of Taishin-SinKong Financial is gradually emerging, with a 281.36% surge in first-seven-month profit, claiming the top spot. KGI Financial and Capital Securities posted growth rates of 204.82% and 187.33%, ranking second and third, respectively. Yuanta Financial also posted a strong 1.2x (120%) year-on-year increase in profit.

Investors are reminded that the life insurance industry formally adopted IFRS 17 this year. Under IFRS 17, gains and losses from the disposal of FVOCI equity instruments are no longer included in current period earnings but are directly reflected in retained earnings, becoming one of the sources of distributable profits. When including the post-tax gains from FVOCI equity disposals, Fubon Financial’s cumulative total for the first seven months reached NT$196.25 billion, surpassing its historical annual profit performance. Cathay Financial’s impact on retained earnings for the first seven months totaled NT$187 billion, also setting a new historical high.

The weighted index fell 6.5% in July, affecting Yuanta Financial, which is primarily securities-driven. Although Yuanta Securities’ profit dropped to NT$4.8 billion, Yuanta Bank and Yuanta Futures posted countercyclical growth, helping the financial holding maintain a monthly post-tax net profit of NT$6.3 billion. KGI Securities was impacted by proprietary trading and investment valuations, but its brokerage, wealth management, and futures derivatives businesses performed relatively steadily, generating a monthly profit of NT$721 million, with the financial holding reporting NT$2.089 billion for the month.

Sinopac Financial maintained stable performance in July. Despite higher provisioning costs at its banking unit, its securities arm benefited from increased dividend income and lower income tax expenses, effectively offsetting the impact of market volatility on fee income. This drove the financial holding’s monthly post-tax net profit to NT$4.381 billion, a 3% increase from the previous month. Cumulative post-tax net profit for the first seven months reached NT$28.932 billion, up 89% YoY, with a cumulative EPS of NT$1.96.

Among the four state-owned financial holdings, all reported month-on-month profit growth. Mega Financial reported cumulative post-tax net profit of NT$25.659 billion for the first seven months, up 14.34% YoY, with an EPS of NT$1.73, setting a historical high for the period. First Financial posted cumulative post-tax net profit of NT$20.937 billion, up 23.60% YoY, with an EPS of NT$1.46. Hua Nan Financial reported NT$20.652 billion, up 37.54% YoY, with an EPS of NT$1.48, also a historical high. Land Bank of Taiwan Financial reported NT$16.077 billion, up 29.84% YoY, with an EPS of NT$0.99.