TW Financial holdings companies' profit falls by 44 percent in August
By Kathryn Chiu ,The China PostTAIPEI, Taiwan -- The net profit of 15 Taiwan-listed financial holding companies recorded a month-on-month decline of 44.37 percent to NT$15.829 billion in August, with Fubon Financial Holdings Co. (富邦金控) standing atop the industry profit ranking.
September 11, 2013, 12:11 am TWN
Taiwan's second-largest financial service provider by assets, Fubon Financial Holdings posted net profit of NT$2.37 billion in August, evenly contributed to by both its life insurance and banking subsidiaries, according to a company document filed to the Taiwan stock exchange (TWSE).
As of the end of August, Fubon Financial collected NT$25.71 in net profit with earnings per share (EPS) of NT$2.65, making it the best performer in terms of cumulative earnings.
Despite Taiwan's largest financial services provider by assets, Cathay Financial Holdings Co. (國泰金控), losing out to its main rival Fubon Financial Holdings by posting NT$2.75 billion in net profit for August.
However, Cathay Financial Holdings outperformed its Taiwanese peers due to cash dividends and unrealized property value gains in its life insurance subsidiary, the company said in a statement.
Cathay Financial Holdings accumulated NT$24.4 billion in net profit for the first eight months, translating to EPS of NT$2.27, the statement said.
State-run Mega Financial Holdings Co. (兆豐金控) reported NT$1.59 billion in net profit for August, mainly contributed to by its banking unit Mega International Commercial Bank (兆豐國際商銀), according to its filing to the TWSE.
The lender generated NT$1.4 billion in net profit, accounting for 88.24 percent of the group's income, the filing said.
The bank-focused conglomerate aggregated NT$15.93 billion in net profit as of last month, with EPS of NT$1.39, the filing said.
There is something to be said for financial holdings companies relying more on life insurance than on their banking arms.
Most financial holding companies with a major income from life insurance and securities business, which include Fubon Financial Holding, Cathay Financial Holding and China Development Financial Holding (中華開發金控), posted lower net profit for August than in July.
Other domestic and global uncertainties are also factored into financial holdings companies' August profit. Fubon Financial Holdings General Manager Victor Hung (龔天行) indicated that the strong New Taiwan dollar has incurred NT$900 million in exchange loss for subsidiary Fubon Life Insurance Co (富邦人壽).
China Development Financial Holdings said its securities business didn't pan out due to QE-exit concerns and the weak performance of Taiwan's share market.