E. Sun Financial reports 26 percent year-by-year growth in net income
By Ted Chen, The China Post
May 13, 2014, 12:13 am TWN
TAIPEI, Taiwan -- E. Sun Financial Holding Co. (玉山金控) yesterday announced its first quarter performance reports, recording an after-tax net income of NT$2.86 billion, a year-by-year improvement of 26 percent, while stating that it has raised NT$10.5 billion in capital through the issuing of 700 million new shares.
Company President Joseph Huang (黃男州) remarked that the newly raised NT$10.5 billion will be allocated to accelerating the international expansion of E. Sun's banking and securities brokerage arms. Throughout the period, the company showed record-high results for the first quarter, with an earnings-per-share performance of NT$0.5, and return-on-equity and return-on-asset performance reaching 13.28 percent and 0.81 percent, respectively.
For its banking arm the company stated that net income derived from transaction fees saw a 14.8 percent improvement while earnings derived from wealth management services and sales of insurance policies saw a 24.3 percent growth. As of last March, active credit cards issued by the company were tallied at 2.45 million, ranking third in the market.
The company exhibited stellar asset quality throughout the first quarter of this year, maintaining a non-performing loan ratio at 0.18 percent, a figure markedly lower than the industry average of 0.33 percent, with the coverage ratio reaching 618.2 percent.
Recently, the company has announced several collaborative endeavors in the electronic commerce services, establishing partnerships with international payment and money transfer companies PayPal, and WeChat (微信), a China-based mobile text and voice messaging service that promotes Web-based shopping on mobile devices. Most notably, the company has partnered up with WeChat and Web-based merchant Crazymike (瘋狂賣客) to elevate the user experience for online shoppers. E. Sun Bank will be serving as the intermediary financial institution for transactions made via the Web or mobile devices, safeguarding the interests of its customers should disputes arise. In addition, the WeChat messaging app is capable of delivering timely reminders to customers when purchased gift certificates or coupons are approaching expiration.
E. Sun shares yesterday lost NT$0.10, or 0.54 percent to close at NT$18.45.