Shin Kong Financial (2888) Q4 2024 earnings summary

Executive summary

• Consolidated after-tax profit reached NT$20.46 billion for 2024, reversing a prior loss and driving shareholders' equity up 15.4% year on year to NT$283.93 billion, with total assets surpassing NT$5.1 trillion.

• All major subsidiaries posted strong results: Shin Kong Life's profit surged 159.8% year on year, Shin Kong Bank's profit hit a record high, and MasterLink Securities' profit rose 36.1% year on year.

• The group was recognized for ESG leadership, ranking first globally in the insurance industry group in the DJSI World Index for four consecutive years and included in DJSI World and Emerging Markets Indices.

• Board approved merger with Taishin Financial Holdings, with Taishin as the surviving entity, pending regulatory approval.

Financial highlights

• Consolidated net income for 2024 was NT$20.46 billion, up from a loss of NT$7.32 billion in 2023; EPS improved to NT$1.25 from -NT$0.48.

• First-year premium increased 65.1% year on year to NT$64.16 billion, with a market share of 7.6%.

• Shin Kong Life's sales of foreign currency policies grew over 100% to NT$43.6 billion, accounting for 68% of total sales.

• MasterLink Securities operating revenue surged 33% year on year to NT$11.7 billion, with after-tax profits up 36.1% to NT$3.4 billion.

• Shareholders' equity increased 15.4% year on year to NT$283.93 billion; book value per share NT$15.76.

Outlook and guidance

• CSM from new business is expected to grow significantly in 2025.

• Shin Kong Life targets double-digit FYP growth in 2025, with FX policies to comprise 50% of FYP.

• Shin Kong Bank will focus on promoting SME and overseas loans, expanding consumer loans, and aims for double-digit growth in wealth management income and digital platform revenue.

• The merger with Taishin Financial Holdings is expected to enhance scale, capital strength, and market competitiveness.