2012 profits grow 23.2% year-on-year: Fubon
By Ted Chen ,The China PostTAIPEI, Taiwan -- Fubon Financial yesterday announced stellar results for its 2012 operations, with net income reaching NT$28.983 billion, representing a year-on-year growth of 23.2 percent.
March 9, 2013, 12:09 am TWN
The company recorded net income of NT$129.94 billion and NT$129.73 billion for its banking and life insurance divisions, respectively, representing the fourth consecutive year in which the company led its sector in profitability. Citing a year-on-year growth of 7.8 percent in loan operations, the company's banking division increased by 43.51 percent this year, while its life insurance division benefitted from lowered hedging costs of 0.89 percent, and improved return on investment of 4.01 percent.
For the first two months of operation in 2013, the company indicated growth of 47 percent, citing a tremendous leap in investment returns of its life insurance division during the latter half of last year, where it realized the gains of its lower yielding investments and reallocated positioning to higher yield corporate bonds and fixed-income mutual funds.
The company's total assets swelled to NT$4.836 trillion, up 12.9 percent from the previous year, and renders it the second largest financial holding company in Taiwan.
The company's expansion efforts in China are proceeding faster than expected, according Fubon Financial President Victor Kung (龔天行), and the bid to acquire an 80-percent stake in First Sino Bank is expected to be completed in third quarter this year. The company's bid to acquire 18 percent of Guilin Bank (桂林銀行) is likely to pick up pace following the PRC's summit meetings, Kung added.
Currently, the company's multifaceted efforts in expanding into the Chinese market include banking, asset insurance, asset and wealth management, life insurance and securities brokerage operations throughout China.
Fubon shares closed up NT$2, closing at NT$43 at the end of yesterday's session.