Fubon Financial (2881) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months reached NT$121.31 billion, up 78.9% year-over-year, with EPS of NT$8.61, leading among financial holding companies in Taiwan.

• Total assets surpassed NT$11.8 trillion, up 6.6% year-over-year; net worth increased 27.6% to NT$941.0 billion.

• All major subsidiaries reported year-over-year net profit growth, with Fubon Life and Taipei Fubon Bank achieving record highs.

• The group’s profitability improved, with return on assets after tax at 1.41% and return on equity after tax at 18.56% annualized.

• Net profit continued to grow to NT$147 billion for the first ten months.

Financial highlights

• Net revenue rose 58.9% year-over-year to NT$244.0 billion; net income to parent company increased 78.9% to NT$121.3 billion.

• Book value per share reached NT$61.84.

• ROAA improved to 1.41% and ROAE to 18.56% annualized.

• NPL ratio for total loans at 0.11%; coverage ratio at 1,140.89%.

• Cash dividend per share was NT$2.50.

Outlook and guidance

• Management expects continued growth in digitalization, green finance, and sustainable finance, with 2024 and 2030 ESG targets on track.

• Focus remains on expanding high-value insurance products, digital banking, and risk management.

• VNB margin expected to remain stable in 2025, with continued VNB growth driven by health product sales.

• Hedge cost guidance for 2025 is 100–150 basis points; 2024 expected to remain within 100–150 basis points.

• Loan growth for 2024 forecasted in low teens; deposit growth in high single digits. For 2025, both expected in high single digits due to mortgage loan limitations.