Cathay Financial Holdings Posts NT$11.3 Billion Profit in August, Fifth Consecutive Month Over NT$10 Billion; Adjusted Earnings Achieve Stunning New Milestone

Cathay Financial Holding announced its self-compiled earnings today (14th), reporting an after-tax net profit of NT$11.3 billion in August, representing a 10.0% year-on-year increase and marking the fifth consecutive month that monthly after-tax profit has exceeded NT$10 billion. For the first eight months of the year, cumulative after-tax net profit reached NT$98.64 billion, up 51.6% year-on-year, with cumulative earnings per share (EPS) at NT$6.47.

With Taiwan's insurance industry adopting international accounting standards this year, gains from stocks under the FVOCI (Fair Value through Other Comprehensive Income) category are no longer recognized in current period earnings but are directly credited to retained earnings—though they remain available for dividend distribution. When combining FVOCI stock gains with current earnings, Cathay Financial's adjusted profit for August reached NT$20.41 billion, and cumulative adjusted profit for the first eight months hit NT$207.4 billion, achieving a stunning milestone of over NT$200 billion in profits within eight months, with adjusted EPS reaching NT$13.89.

Core subsidiary Cathay Life Insurance posted an after-tax net profit of NT$6.74 billion in August, up 26.5% year-on-year, and NT$58.41 billion for the first eight months, up 105.9% year-on-year. Including FVOCI stock gains, adjusted profit was NT$15.74 billion in August and NT$163.17 billion cumulatively.

Cathay Financial's CFO Chen Yan-ru explained that while dividend income peaked in July rather than August, Cathay Life’s strong earnings momentum in August was driven by valuation gains on foreign bonds, as well as positive revaluations of ETFs and funds. The adjusted profit surged past the NT$10 billion mark to NT$15.74 billion, boosted by NT$9 billion in FVOCI stock gains.

Additionally, despite the New Taiwan Dollar appreciating 1.98% against the US dollar in August, Cathay Life maintained stable operations, increasing its foreign exchange price change reserve by NT$4.2 billion for the month, bringing the balance to nearly NT$140 billion—the highest level in history. Cathay Life’s net worth ratio stood at 12.28% at the end of August, another historical high.

Cathay United Bank reported an after-tax net profit of NT$3.71 billion in August, up 0.5% year-on-year. This slight growth was due to higher loan loss provisions taken by its Vietnamese subsidiary, Shiyue Bank, related to corporate lending cases, along with higher-than-average provisioning levels due to strong loan growth.

For the first eight months, cumulative after-tax net profit reached NT$35 billion, up 11.9% year-on-year—the highest for the same period in history. This reflects continued growth in financial asset positions and lower foreign currency funding costs driven by last year’s U.S. interest rate cuts, resulting in a 16% year-on-year increase in net interest income. Net fee and commission income also rose 14% year-on-year, supported by sustained wealth management momentum and robust credit card transaction volumes.

Cathay Securities posted a strong performance with an after-tax net profit of NT$890 million in August, up 97.8% year-on-year, and NT$6.29 billion for the first eight months, up 145.7% year-on-year—both records for the period. This reflects a brokerage market share of 4.63% at the end of August, remaining at a historical high, and composite entrusted trading volume continuing to break records, surpassing full-year 2025 volumes.

Cathay Asset Management recorded an after-tax net profit of NT$370 million in August, up 54.2% year-on-year, and NT$2.5 billion for the first eight months, up 38.1% year-on-year—also a record for the period. This was primarily driven by total assets under management reaching NT$3.5 trillion at the end of August, up 57% year-on-year.

Cathay Century Property & Casualty Insurance posted an after-tax net profit of NT$320 million in August, down 3.0% year-on-year, but NT$3.19 billion for the first eight months, up 25.1% year-on-year—also a record for the period. Chen Yan-ru explained that core business profitability remains strong, but August’s profit slightly declined year-on-year due to lower dividend income, as the peak dividend season occurred in July.