Fubon Financial (2881) Q1 2025 earnings summary

Executive summary

• Q1 2025 net profit rose 35% year-over-year to TWD 41.06 billion (EPS TWD 3.00), leading among Taiwan FHCs.

• Total assets surpassed TWD 12 trillion, up 5% year-over-year, with net worth at TWD 914.2 billion.

• Dividend plan proposed: TWD 4.25 cash and TWD 0.25 stock per share for 2024, pending AGM approval.

• Fubon Life, Taipei Fubon Bank, and Fubon Insurance posted strong profit growth; Fubon Securities saw a 29% profit decline due to market volatility.

• Fubon Life’s embedded value as of 2024 year-end was TWD 1,074.6 billion, with VNB of TWD 25.7 billion, both reviewed as reasonable by Deloitte.

Financial highlights

• Consolidated net profit for Q1 2025 was TWD 41.06 billion, up 35% year-over-year; EPS TWD 3.00.

• Net interest income grew 7.5% year-over-year; net revenue up 107.1% year-over-year.

• ROA increased to 1.36% and ROE to 17.61% in Q1 2025.

• Fubon Life's VNB grew 9.9% year-over-year, driven by regular paid participating policy sales.

• Embedded value of Fubon Life exceeded TWD 1 trillion for the first time, up 15.4%.

Outlook and guidance

• Proactive FX hedge management in response to NT dollar appreciation and market volatility.

• Fubon Life’s embedded value and VNB expected to remain robust, with sensitivity to investment returns and discount rates.

• Regulatory changes (IFRS 17, TW-ICS) from 2026 may significantly impact future EV calculations.

• ESG and digitalization targets set for 2025 and 2030, including green finance and decarbonization.

• Continued dynamic asset allocation and increased cash position to adjust for market conditions.