Shin Kong's net asset value jumps back above NT$100 bil. benchmark
By Ted Chen, The China Post
March 7, 2014, 12:09 am TWN
TAIPEI, Taiwan -- In an earnings conference, Shin Kong Financial Holding Co. (新光金控) yesterday announced that the company's net asset value has returned to above the NT$100 billion benchmark, while providing a progress update on efforts to expand toward the China and Southeast Asian markets.
Over the course of last year, the company garnered an after-tax net income of NT$9.99 billion, and earnings-per-share performance rated at NT$1.11, with shareholders' equity swelling 22.2 percent year-on-year. Overall net asset value for the company was most recently tallied at 100.95 billion, with capital adequacy ratio reaching 125 percent while recording a return-on-equity performance of 10.11 percent.
The company reported that its insurance arm intends to increase its value of new business by 5 percent to 10 percent, by focusing on expanding sales of interest-sensitive annuities, long term care and other policies of higher profitability. In addition, the company's Jiangsu-based life insurance branch is expected to commence operations by the first half of this year. First year premium revenues for insurance policy sales are targeted at NT$65 billion this year.
As for its banking arm, the company stated that profits are steadily increasing, rising to represent a 40 percent composition of overall earnings as of the end of last year. With a bad debts coverage ratio of 265.57 percent, a capital adequacy ratio of 10.6 percent and a tier one capital coverage ratio, the company stated that its operation is sound and stable.
On its endeavors to expand to markets abroad, the company stated that in addition to Hong Kong, the company has a presence in Southeast Asian markets including Vietnam, Myanmar and Cambodia. In the China market, the company has received offshore banking unit (OBU) status to operate a leasing subsidiary in Suzhou.