Hua Nan Financial Holdings Reports July Profit of NT$3.288 Billion; Cumulative Earnings Surpass NT$20 Billion with EPS at NT$1.48

Hua Nan Financial Holding Company announced today (the 13th) its self-calculated financial results for July 2023. The group recorded a post-tax net profit of NT$3.288 billion in July, representing a 1.4% decrease compared to the same period last year. However, cumulative post-tax net profit for the first seven months reached NT$20.652 billion, marking a 37.5% year-on-year increase, with earnings per share (EPS) at NT$1.48.

While Hua Nan's subsidiaries in banking, securities, and property insurance all reported year-on-year profit growth in July, the overall holding company’s July profit declined slightly by NT$0.45 billion (1.4%) compared to the previous year. Hua Nan Financial CEO Hsiao Yu-mei explained that this was primarily due to increased losses from its venture capital subsidiary.

Specifically, the three main subsidiaries—banking, securities, and property insurance—recorded post-tax net profit increases of NT$0.92 billion, NT$0.12 billion, and NT$0.4 billion respectively in July compared to the same month last year. However, the venture capital subsidiary incurred an additional loss of NT$2 billion compared to July of the previous year, which slightly dragged down the consolidated group performance.

On a cumulative basis, however, strong performance continues. According to Hsiao Yu-mei, both Hua Nan Financial and its four major subsidiaries—banking, securities, property insurance, and venture capital—all achieved record-high cumulative post-tax net profits and EPS for the January–July period.

The contribution from non-banking subsidiaries is also noteworthy. For the first seven months, Hua Nan Bank, the core subsidiary, generated a post-tax net profit of NT$16.2 billion, accounting for 78% of the group total. Meanwhile, non-banking subsidiaries—including securities, property insurance, asset management, venture capital, and AMC—collectively contributed 22%, a significant 16 percentage point increase compared to the same period last year. This reflects early success in the group’s business diversification strategy.

Hua Nan Bank itself maintained solid performance. Its July post-tax net profit reached NT$2.942 billion, up 3.2% year-on-year, driven by a NT$5.42 billion increase in financial operation gains, supported by dividend income. For the first seven months, cumulative post-tax net profit amounted to NT$16.2 billion, up 14.9% year-on-year.

Hsiao Yu-mei stated, "Steady expansion in lending and deposit operations, combined with dynamic wealth management services and flexible financial operations aligned with active stock market conditions, led to growth across our three core revenue streams: interest income, fee income, and financial operations."

Furthermore, optimization of the loan and deposit structure has yielded results. As of the end of July, interest-earning assets grew approximately 6% year-on-year. Additionally, the net interest margin (NIM) improved by 0.06 percentage points during the first seven months, driving a year-on-year increase of approximately 11% in net interest income.

Wealth management has shown particularly strong momentum. Driven by fund, insurance, and foreign bond sales, net fee income from wealth management surged approximately 33% year-on-year for the first seven months. Total net fee income exceeded NT$10 billion, rising about 26% year-on-year. Investment net income also increased by approximately 15%.

Hsiao noted, "Our high-net-worth client services are progressing well. By the end of July, the number of affluent clients surpassed 3,200, up approximately 130% year-on-year. Assets under management (AUM) exceeded NT$26 billion, growing approximately 110% year-on-year."

In the securities segment, Hua Nan YungChang Securities posted a post-tax net profit of NT$297 million in July, up 4.2% year-on-year. Cumulative post-tax net profit for the first seven months reached NT$3.531 billion, soaring 285.1% compared to the same period last year. This surge was fueled by robust trading activity in the Taiwan stock market, with brokerage, underwriting, and proprietary trading all outperforming the prior year.

Hua Nan Property & Casualty Insurance also delivered strong results, reporting a post-tax net profit of NT$222 million in July, up 22.0% year-on-year. Cumulative profit for the first seven months reached NT$1.321 billion, up 37.7% year-on-year—achieving double-digit growth on both monthly and cumulative bases.

Hsiao explained, "Commercial fire insurance premiums increased by approximately 4% year-on-year, while engineering insurance premiums rose by about 19%. Combined with a better loss ratio than the previous year, underwriting profits hit a record high, and investment income also performed well."