Hua Nan Financial Holdings Reports Record Profits for First Seven Months; Non-Banking Subsidiaries Contribute 20%, Dividend Payout to Remain at 80% in Cash

Hua Nan Financial Holdings (5880-TW) held its 2026 fiscal year second-quarter online investor briefing today (31), chaired by CEO Su Tso-Cheng. Benefiting from the AI-driven surge in Taiwan stock market trading and strong performance across diversified subsidiaries, the group's consolidated after-tax net profit for the first seven months reached a record high. The company has maintained a cash-focused dividend policy for three consecutive years, with payouts exceeding NT$0.5 per share and a payout ratio around 80%, expected to continue meeting shareholder demand for stable cash returns. Full-year contribution from non-banking subsidiaries is projected to stabilize around 20%. Overseas operations in the U.S., Hong Kong, and Australia serve as key profit drivers, with double-digit growth in foreign currency loan volumes.

Hua Nan Financial's consolidated after-tax net profit for the first half of 2026 reached NT$13.392 billion, a 36.67% year-on-year increase, setting a new record for the period. For the first seven months, consolidated after-tax net profit surged to NT$16.077 billion, up 33.2% annually, with earnings per share (EPS) reaching NT$0.99 and return on equity (ROE) at 9.45%, reflecting outstanding operational performance.

Among group subsidiaries, core entity Hua Nan Bank reported after-tax net profit of NT$11.504 billion in the first half and NT$14.248 billion cumulatively through July, up 12.58% year-on-year. Under strict risk controls, its non-performing loan (NPL) ratio improved to an excellent 0.15%. Other subsidiaries also performed strongly: Hua Nan Securities benefited from active brokerage business, achieving NT$1.379 billion in first-half profit. Hua Nan Life Insurance saw profits jump to NT$1.034 billion in the first half, a staggering year-on-year increase of 1,061.8%, driven by improved investment gains.

The Financial Holding Division noted that the profit contribution from non-banking subsidiaries rose significantly from 3.72% to 22.57% in the first half, with full-year contributions expected to stabilize around 20%.

Regarding overseas expansion, Hua Nan Bank's International Division highlighted the U.S., Hong Kong, and Australia as the three major overseas profit engines. Foreign currency loan volumes grew by 26.23%, 20.80%, and nearly 20% respectively, reflecting strong demand for cross-border financing and high-tech supply chain relocation. The newly established Singapore branch is expected to officially commence operations by year-end, further connecting Southeast Asian and cross-border financial opportunities.

On the dividend policy, a key concern for shareholders, the Accounting Division emphasized that Hua Nan has consistently distributed dividends above NT$1 per share over the past three years, with payout ratios around 80%, primarily in cash. Cash dividends have exceeded NT$0.5 per share for three consecutive years and continue to grow. Future dividend planning will carefully consider profitability, subsidiary business development, and capital requirements to meet shareholder expectations for stable and growing cash dividends.