CTBC Financial Ranks 4th! The Top-Earning Financial Holding in Taiwan Has Already Made NT$95.5 Billion This Year — July's Rare Loss Explained

Capital markets experienced severe volatility in July, with the Taiwan stock market plunging 6% in a single month, hurting the monthly profits of some securities subsidiaries and affecting financial asset valuations. The combined July profit of 13 listed financial holding companies totaled NT$51.894 billion, marking the second-lowest monthly figure this year. However, benefiting from favorable capital market conditions in the first half, cumulative profits from January to July reached NT$492.782 billion, up 78% year-on-year, still setting a new record for the same period.

In July, the Taiwan stock market corrected due to rising concerns over AI capital expenditure prospects and foreign investors adjusting large-cap stocks. This led to a significant shrinkage in monthly profits for some securities subsidiaries, and life insurers faced immense pressure on the valuation of their financial asset portfolios, making July's profit the second-lowest after March this year.

Fubon Financial Fubon Financial reported a consolidated after-tax net loss of NT$1.76 billion in July, primarily due to unrealized valuation losses in Fubon Life's financial asset portfolio, which resulted in a net loss of NT$7.66 billion for the life insurance unit alone. However, cumulative profits from January to July reached NT$95.58 billion (up 53% YoY, EPS NT$6.54), and including gains/losses from FVOCI stock disposals, the total soared to NT$196.25 billion, already surpassing annual profits from previous years. Cumulative profits for banking, property insurance, securities, and asset management subsidiaries all hit record highs for the same period.

Cathay Financial: Cumulative After-Tax Net Profit of NT$87.34 Billion (Jan-Jul) Cathay Financial posted an after-tax net profit of NT$10.82 billion in July, with cumulative profits from January to July reaching NT$87.34 billion (up 59% YoY, EPS NT$5.68). Including the impact of FVOCI stock disposal gains/losses on retained earnings, the figure reached NT$187 billion, setting a new record. All major subsidiaries—banking, property insurance, securities, and asset management—achieved record-high cumulative profits for the same period.

Mega Financial: Cumulative After-Tax Net Profit of NT$42.931 Billion (Jan-Jul) Benefiting from active stock market trading, Mega Financial reported an after-tax net profit of NT$6.359 billion in July, with cumulative profits reaching NT$42.931 billion (up 121% YoY, EPS NT$3.22), setting another record for the same period.

CTBC Financial: Cumulative Profit of NT$43.948 Billion (Jan-Jul) CTBC Financial reported a July profit of NT$4.41 billion, with cumulative profits from January to July reaching NT$43.948 billion (EPS NT$2.19). CTBC Bank benefited from an expanded net interest margin and wealth management fees growing over 40% YoY, achieving a cumulative profit of NT$35.685 billion (up 11% YoY). Taiwan Life Insurance earned NT$301 million in July, with cumulative profits reaching NT$10.578 billion (up 18% YoY), impacted by rising bond yields.

Taishin & SK Financial: Cumulative Profit of NT$52.78 Billion (Jan-Jul) Taishin & SK Financial reported a July profit of NT$8.94 billion, with cumulative profits from January to July reaching NT$52.78 billion (EPS NT$2.04). Cumulative profits for Taishin Bank, SK Bank, and Taishin Securities hit record highs for the same period. SK Life Insurance maintained stable operations, supported by steady CSM release and recurring investment income.

Yuanta Financial: Cumulative Profit of NT$28.932 Billion (Jan-Jul) Yuanta Financial reported a July profit of NT$4.381 billion, with cumulative profits from January to July reaching NT$28.932 billion (EPS NT$1.96), setting a new record for the same period, driven by record-high profits from Yuanta Bank and Yuanta Securities.

KGI Financial: Cumulative Profit of NT$30.529 Billion (Jan-Jul) KGI Financial reported a July profit of NT$2.089 billion, with cumulative profits from January to July reaching NT$30.529 billion (EPS NT$1.77), already surpassing last year's full-year profit. The securities subsidiary's cumulative profit reached NT$18.657 billion, up 264% YoY.

E.SUN Financial: Cumulative Profit of NT$24.445 Billion (Jan-Jul) E.SUN Financial reported a July profit of NT$3.01 billion, with cumulative profits from January to July reaching NT$24.445 billion (up 21% YoY, EPS NT$1.51), setting a record for the same period.

Four Major Publicly-Owned Financial Holdings Show Stable Performance Mega Financial Holdings Maintains Leadership with NT$25.659 Billion Publicly-owned financial holdings also maintained stable performance from January to July, benefiting from loan portfolio growth and momentum in wealth management:

· Mega Financial Holdings: July profit of NT$4.352 billion, cumulative profit of NT$25.659 billion (EPS NT$1.73), maintaining its leading position among publicly-owned financial holdings.

· First Financial Holding: Cumulative after-tax net profit of NT$20.937 billion (EPS NT$1.46).

· Hua Nan Financial Holding: Cumulative after-tax net profit of NT$20.652 billion (EPS NT$1.48).

· Land Bank of Taiwan Financial Holding: Cumulative after-tax net profit of NT$16.077 billion (EPS NT$0.99).

Cumulative Profit and EPS Summary for 13 Listed Financial Holdings (Jan-Jul 2023)

Holding Name July Profit (Billion NT$) Cumulative Profit (Billion NT$) YoY Growth / Notes EPS (NT$) Fubon Financial -1.76 95.58 53% YoY (NT$196.25B with FVOCI) 6.54 Cathay Financial 10.82 87.34 59% YoY (NT$187B impact on RE) 5.68 CTBC Financial 4.41 43.95 CTBC Bank up 11% YoY 2.19 Mega Financial 6.36 42.93 121% YoY (record high) 3.22 Taishin & SK Financial 8.94 52.78 Bank & Securities hit record highs 2.04 KGI Financial 2.09 30.53 Exceeds 2022 full-year profit 1.77 Yuanta Financial 4.38 28.93 Record high for same period 1.96 Mega Financial Holdings 4.35 25.66 Leader among public holdings 1.73 E.SUN Financial 3.01 24.45 21% YoY (record high) 1.51 First Financial 3.14 20.94 Stable performance 1.46 Hua Nan Financial 3.29 20.65 Stable performance 1.48 Land Bank Financial 7.01 16.08 Stable performance 0.99 Total/Overall 51.89 492.78 78% YoY (record high) --

Q: Which financial holdings have already surpassed last year's full-year profit or set new records for the first seven months? A: KGI Financial's cumulative profit of NT$30.529 billion has surpassed last year's full-year total. Fubon Financial, including FVOCI stock disposal gains/losses, reached NT$196.25 billion, exceeding previous annual profits. Mega Financial, Yuanta Financial, E.SUN Financial, and Cathay Financial also set new records for the same period.