Cathay Financial Holdings Reports NT$10.82 Billion July Profit, Fourth Consecutive Month Exceeding NT$1 Billion, Cumulative EPS at NT$5.68

Cathay Financial Holdings announced its July financial results on the 13th, reporting an after-tax profit of NT$10.82 billion, up 20.0% year-on-year, marking the fourth consecutive month of exceeding NT$1 billion in monthly profit. Cumulative after-tax profit for the first 7 months was NT$87.34 billion, up 59.5% year-on-year, with a cumulative EPS of NT$5.68. Under the new international insurance regulations implemented in Taiwan this year, stock capital gains under FVOCI are not reflected in current period earnings but are directly added to retained earnings, serving as a source for dividend distribution. Cathay Financial's July FVOCI stock capital gains were NT$10.26 billion, with NT$99.62 billion for the first 7 months. Considering this impact, Cathay Financial's adjusted profit for the first 7 months was NT$186.96 billion, with an adjusted EPS of NT$12.47 (Note: Cathay Financial's impact on retained earnings). Cathay Life Insurance's July dividend income was NT$7.7 billion, contributing to the profit. Cathay Financial's core subsidiary, Cathay Life Insurance, reported a July after-tax profit of NT$5.42 billion, up 27.5% year-on-year. Cumulative after-tax profit for the first 7 months was NT$51.67 billion, up 124.3% year-on-year. July's profit reflected the recognition of dividend income of NT$7.7 billion and a stable contribution from CSM of approximately NT$3 billion in pre-tax profit, totaling NT$3.2 billion. Cathay Life Insurance's July FVOCI stock capital gains were NT$10.65 billion, with NT$95.76 billion for the first 7 months. Adding the after-tax profit, the adjusted profit for the first 7 months was NT$147.43 billion. Additionally, Cathay Life Insurance's foreign exchange fluctuation reserve balance at the end of July was NT$13.53 billion, up NT$4.4 billion from the previous month. For the banking subsidiary, Cathay United Bank reported a July after-tax profit of NT$4.31 billion, up 2.4% year-on-year. Cumulative after-tax profit for the first 7 months was NT$31.3 billion, up 13.4% year-on-year, setting a new high for the same period in history. Cathay Financial Holdings CFO Chen Yanru stated that the so-called three pillars of banking profit, net interest income, saw a year-on-year increase of approximately 15% for Cathay United in the first 7 months, reflecting the impact of the U.S. Federal Reserve's three rate cuts in the second half of last year, which lowered the cost of dollar funding. In terms of net fee income, Cathay United's first 7 months saw a year-on-year increase of approximately 13%, reflecting the continued momentum in wealth management, with trust and wealth management net fee income up approximately 28%. Regarding financial market operations (or investment) income, Chen Yanru stated that Cathay United's first 7 months also saw a year-on-year increase of approximately 7%, reflecting the rise in domestic and international stock markets and increased dividend income. Cumulative profits for banking, securities, property insurance, and investment trusts all set new highs for the same period in history. Cathay Securities reported a July after-tax profit of NT$990 million, up 200.0% year-on-year. Cumulative after-tax profit for the first 7 months was NT$5.4 billion, up 155.9% year-on-year, setting a new high for the same period in history, reflecting the active Taiwan stock market and simultaneous growth in the three major businesses of brokerage, proprietary trading, and underwriting. Cathay Century General Insurance reported a July after-tax profit of NT$520 million, up 44.4% year-on-year. Cumulative after-tax profit for the first 7 months was NT$2.86 billion, up 28.8% year-on-year, setting a new high for the same period in history. Cathay General's July FVOCI stock capital gains were NT$160 million, with NT$1.6 billion for the first 7 months. Adding the cumulative profit for the period, the adjusted profit for the first 7 months was NT$4.46 billion. Cathay Investment Trust reported a July after-tax profit of NT$470 million, up 176.5% year-on-year. Cumulative after-tax profit for the first 7 months was NT$2.12 billion, up 35.0% year-on-year, setting a new high for the same period in history, reflecting a total managed asset scale of NT$3.4 trillion, up approximately 52% year-on-year.