SinoPac Financial Posts Record Profit of NT$4.38 Billion in July, Dual Engines Drive EPS to NT$1.96

SinoPac Financial Holding announced today (10th) its self-calculated earnings, reporting a post-tax net profit of NT$4.381 billion in July, representing a year-on-year increase of 68.1%. For the first seven months of the year, cumulative post-tax net profit reached NT$28.932 billion, up 89.3% year-on-year, with cumulative earnings per share (EPS) at NT$1.96, up 63.3% year-on-year. Both monthly and cumulative profits, as well as cumulative EPS, are the highest for the same period in company history.

The strong performance in July reflects robust profit momentum from SinoPac's dual engines: banking and securities. On the banking side, SinoPac Bank posted a post-tax net profit of NT$1.994 billion in July, up 21.6% year-on-year, and NT$15.518 billion for the first seven months, up 20.7% year-on-year.

Ms. Hsu Ju-mei, CFO of SinoPac Financial, stated that SinoPac Bank’s core revenues—net interest income and net fee income—both grew over 20% year-on-year in July. Net interest income increased by more than 26%, slightly higher than the 26% year-on-year growth for the first seven months, primarily driven by loan balance growth.

Net fee income rose by over 20% year-on-year in July, significantly stronger than the 13% year-on-year growth for the first seven months. This was mainly driven by insurance policy sales, primarily traditional life policies, with some investment-type policies contributing as well. Additionally, fee income from corporate banking loans also increased, primarily due to syndicated loan business.

Chin Cheng Bank reported a post-tax net profit of NT$567 million in July, up 14.1% year-on-year, and NT$4.323 billion for the first seven months, up 108.8% year-on-year. Ms. Hsu noted that Chin Cheng Bank’s monthly profit remains relatively stable, while the strong cumulative performance reflects improved fee income following SinoPac’s acquisition and integration.

For the first seven months, Chin Cheng Bank’s net fee income grew by over 10%, while net interest income grew in single digits. Although financial transaction net income showed significant growth, the low base from last year—due to SinoPac’s directive for Chin Cheng to sell high-risk bonds and realize losses—makes year-on-year comparisons less meaningful.

SinoPac Securities also demonstrated strong monthly and cumulative profitability. In July, it posted a post-tax net profit of NT$1.416 billion, up 49.7% year-on-year, and NT$8.764 billion for the first seven months, up 187.7% year-on-year.

Ms. Hsu explained that SinoPac Securities benefits from high trading volumes in the Taiwan stock market. In July, fee income from customer trading in Taiwan stocks and discretionary委托 services surged over 100% year-on-year. Proprietary trading also contributed, primarily through valuation gains.