Stock and Bond Rout Hits Fubon Life with NT$7.6 Billion Loss, Fubon Financial Posts NT$1.76 Billion Deficit in July; YTD EPS at NT$6.54

Fubon Financial Holding announced its self-compiled earnings for July today (14th), revealing that its core subsidiary, Fubon Life, posted an after-tax net loss of NT$7.66 billion, leading to an after-tax net loss of NT$1.76 billion for Fubon Financial in July—a rare monthly loss.

In cumulative terms, Fubon Financial achieved a year-to-date after-tax net profit of NT$95.58 billion, up 53.2% year-on-year, with a cumulative earnings per share (EPS) of NT$6.54, maintaining the highest level among financial holding companies.

When including stock capital gains under the FVOCI (Fair Value Through Other Comprehensive Income) category, Fubon Financial’s adjusted profit was NT$7.85 billion in July and NT$196.25 billion year-to-date, with a cumulative adjusted EPS of NT$13.73. Adjusted profits represent distributable earnings and offer better comparability with pre-IFRS 17 profitability metrics.

Fubon Life reported an after-tax net loss of NT$7.66 billion in July, down 229.2% year-on-year, while its year-to-date after-tax net profit reached NT$47.92 billion, up 57.2% year-on-year. Including FVOCI stock capital gains, its adjusted profit was NT$680 million in July and NT$143.92 billion year-to-date.

The primary reason for Fubon Life’s NT$7.66 billion loss in July was a dual hit from stocks and bonds: the Taiwan stock market declined 6.5% in July, while U.S. Treasury yields surged, causing significant valuation losses on financial assets classified under FVTPL (Fair Value Through Profit or Loss).

Regarding foreign exchange valuation reserves, Fubon Life’s balance at the end of July exceeded NT$156 billion, an increase of nearly NT$3 billion from the previous month.

Taipei Fubon Bank delivered strong performance in net interest and fee income. The bank posted an after-tax net profit of NT$3.64 billion in July, up 23.0% year-on-year, and NT$29.37 billion year-to-date, up 30.6% year-on-year—both record highs for the same period, reflecting robust performance in interest and fee income.

In July, the bank’s net interest income rose approximately 36% year-on-year, outpacing the year-to-date growth of around 29%. Net fee income in July increased approximately 46% year-on-year, also stronger than the year-to-date growth of about 40%.

In financial instrument gains and losses, the bank saw a year-on-year decrease of NT$716 million in July and NT$1.168 billion year-to-date, primarily due to reduced swap (SWAP) business compared to the same period last year.

Fubon Securities also achieved record highs in both monthly and year-to-date profits. It posted an after-tax net profit of NT$2.17 billion in July, up 75.0% year-on-year, and NT$13.19 billion year-to-date, up 148.9% year-on-year. This reflects a vibrant Taiwan stock market, with brokerage and wealth management fee income up approximately 130% year-on-year and financial asset position income up approximately 133% year-on-year for the first seven months.

Fubon Insurance reported an after-tax net profit of NT$830 million in July, up 45.6% year-on-year, and NT$6.42 billion year-to-date, up 86.1% year-on-year—both record highs for the same period—reflecting steady development across all business lines. Notably, travel insurance benefited from summer vacation demand and the promotion of the 'Travel Concierge' brand, with new policy premiums reaching NT$370 million in July, another monthly record.

Including FVOCI stock capital gains, Fubon Insurance’s adjusted profit was NT$920 million in July and NT$8.34 billion year-to-date.

Fubon Asset Management posted an after-tax net profit of NT$160 million in July, up 60.0% year-on-year, and NT$1.05 billion year-to-date, up 72.1% year-on-year—both record highs for the same period—reflecting sustained high asset management scale of approximately NT$1.5 trillion, up about 58% year-on-year.