Fubon Financial (2881) Q2 2025 earnings summary

Executive summary

• Net profit reached NT$51.38bn (or $51.2bn) and EPS NT$3.49, both leading among peers, despite YoY declines due to FX fluctuations and capital market volatility.

• Total assets surpassed NT$11.9tn ($11.9 trillion), with net worth at NT$816.2bn and BVPS at NT$52.71.

• Fubon Asset Management completed a merger with Jih Sun SITE in April, enhancing competitiveness.

• Taipei Fubon Bank achieved record net profit, up 20% YoY.

• The group maintained a strong capital adequacy ratio of 139.13% as of June 30, 2025.

Financial highlights

• Net profit and EPS declined 36.8% and 38.6% YoY, mainly due to currency fluctuations and market volatility.

• Total assets increased to $11.9 trillion; net worth decreased 12.9% YoY due to FX, market volatility, and dividend payouts.

• ROA at 0.85% (down from 1.42% YoY) and ROE at 11.63% (down from 18.69% YoY), both showing a declining trend but remaining solid.

• Investment return before hedge and FX at 6.24% (up YoY); total return at 3.76% (down due to FX losses).

• Net interest revenue for H1 2025 was $92.4 billion, up from $89.0 billion YoY.

Outlook and guidance

• Dynamic hedging approach to manage FX risk and costs; aim to strengthen hedging flexibility.

• Focus on integrating resources post-merger and enhancing digital and green finance initiatives.

• Progressive decarbonization targets: exit thermal coal by 2030, unconventional oil & gas by 2040, and no new investments in thermal coal after 2040.

• Green finance target of NT$2,596.6bn by 2025, with NT$2,551.3bn achieved by 2Q25.

• Preparing for IFRS 17 adoption in 2026, with ongoing system and process upgrades.