Cathay Financial : 2022Q2 Financial Results

Consolidate BS

2882 Cathay Financial Holding Co., Ltd. and Subsidiaries
2022Q2 Consolidated Financial Statements
Consolidated Balance Sheets
Unit: NT$ thousands
Code	Accounting Title	6/30/22	12/31/21	6/30/21
Assets
11000	Cash and cash equivalents	226,789,570	467,635,057	544,477,045
11500	Due from the central bank and call loans to banks	256,252,523	234,546,475	197,432,609
12000	Financial assets at fair value through profit or loss	1,702,830,104	1,929,395,229	1,815,942,101
12150	Financial assets at fair value through other comprehensive income	1,728,060,166	1,626,821,625	1,588,241,683
12200	Investments in debt instruments at amortised cost	3,468,874,827	3,266,686,240	3,174,595,890
12300	Financial assets for hedging	32,786	500,642	129,913
12500	Securities purchased under resell agreements	47,677,194	77,243,060	71,938,703
13000	Receivables, net	218,205,893	205,480,862	190,169,621
13200	Current tax assets	4,489,884	4,164,103	4,318,128
13300	Assets classified as held for sale, net	0	283,087	0
13500	Loans discounted, net	2,405,862,717	2,287,115,449	2,263,477,801
13700	Reinsurance contract assets, net	16,086,240	12,260,483	12,034,071
15000	Investments accounted for using equity method, net	34,888,255	32,614,572	33,204,066
15500	Other financial assets, net	659,172,052	741,107,026	712,764,024
18000	Investment property, net	440,912,033	432,525,464	429,841,499
18500	Property and equipment, net	97,695,894	97,852,266	99,362,398
18600	Right-of-use assets, net	4,390,689	4,362,776	4,168,739
19000	Intangible assets, net	51,475,684	51,543,583	52,646,092
19300	Deferred income tax assets	105,357,439	63,746,198	67,992,966
19500	Other assets, net	114,230,147	58,477,264	55,706,122
19999	Total assets	11,583,284,097	11,594,361,461	11,318,443,471
Liabilities and equity
Liabilities
21000	Deposits from the central bank and banks	90,799,739	74,605,174	87,645,603
21500	Due to the central bank and banks	0	1,076,000	1,076,000
22000	Financial liabilities at fair value through profit or loss	201,800,499	79,934,187	95,581,687
22300	Financial liabilities for hedging	1,929,739	20,956	36,014
22500	Securities sold under repurchase agreements	38,626,244	39,827,873	21,854,793
22600	Commercial papers issued, net	60,999,761	63,469,166	44,829,587
23000	Payables	127,916,024	76,870,285	157,844,631
23200	Current tax liabilities	4,493,448	7,528,389	15,557,668
23500	Deposits	2,994,944,560	2,871,960,053	2,725,931,758
24000	Bonds payable	138,063,726	141,800,000	141,800,000
24400	Other borrowings	679,975	1,670,185	1,962,265
24600	Provisions	6,705,974,983	6,448,259,356	6,279,543,571
25500	Other financial liabilities	689,235,891	763,908,198	739,667,099
26000	Lease liabilities	18,649,387	14,721,170	14,486,802
29300	Deferred tax liabilities	34,508,670	52,976,726	60,297,442
29500	Other liabilities	23,268,868	41,695,016	32,911,999
29999	Total liabilities	11,131,891,514	10,680,322,734	10,421,026,919
Stockholders' equity
Equity attributable to owners of parent
Share Capital
31101	Common stock	131,692,102	131,692,102	131,692,102
31103	Preferred stock	15,333,000	15,333,000	15,333,000
31100	Total Share Capital	147,025,102	147,025,102	147,025,102
31500	Capital surplus	177,122,144	177,244,388	177,251,872
Retained earnings
32001	Legal reserve	73,747,059	59,471,895	59,471,895
32003	Special reserve	150,768,651	150,716,023	150,716,023
32011	Unappropriated earnings	249,982,416	267,799,001	217,691,715
32000	Total retained earnings	474,498,126	477,986,919	427,879,633
Other equity interest
32500	Total other equity interest	-359,066,334	99,781,737	133,980,387
32600	Treasury shares	0	0	0
31000	Total equity attributable to owners of parent	439,579,038	902,038,146	886,136,994
36000	Equity attributable to former owner of business combination under common control	0	0	0
39500	Non-controlling interests	11,813,545	12,000,581	11,279,558
39999	Total equity	451,392,583	914,038,727	897,416,552
3X2XX	Total liabilities and equity	11,583,284,097	11,594,361,461	11,318,443,471
39997	Equivalent issued shares of advance receipts for common stock (unit: share)	0	0	0
39998	Number of treasury share acquired by the company and subsidiaries (unit: share)	0	0	0

Consolidated IS

2882 Cathay Financial Holding Co., Ltd. and Subsidiaries
2022Q2 Consolidated Financial Statements
Consolidated Statement of Comprehensive Income
Unit: NT$ thousands　EPS Unit: NT$
Code	Accounting Title	2022/4/1 To 6/30	2021/4/1 To 6/30	2022/1/1 To 6/30	2021/1/1 To 6/30
41000	Interest income	59,521,589	51,487,619	112,786,175	102,858,694
51000	Interest expenses	4,275,213	3,226,839	7,497,364	6,545,784
49600	Net interest revenue (expense)	55,246,376	48,260,780	105,288,811	96,312,910
Net revenue other than interest
49800	Net service fee revenue and commissions	4,089,522	2,744,326	8,352,662	5,476,198
49810	Net insurance revenue	12,522,935	55,144,132	42,262,291	120,374,921
49820	Gain (loss) on financial assets (liabilities) at fair value through profit or loss	-210,915,765	97,331,306	-347,425,404	101,475,319
49825	Gain (loss) on investment property	4,222,655	3,743,854	7,818,646	6,504,040
49835	Realized gain (loss) on financial assets at fair value through other comprehensive income	2,695,808	12,096,487	5,541,282	20,816,003
49850	Gain (loss) arising from derecognition of financial assets measured at amortised cost	1,594,157	6,161,112	10,495,640	26,561,821
49870	Foreign exchange gains (losses)	105,225,506	-59,615,902	200,342,186	-58,236,121
49880	(Impairment loss on assets) reversal of impairment loss on assets	-886,316	1,154,606	-3,545,277	2,059,317
49890	Share of profit (loss) of associates and joint ventures accounted for using equity method	815,829	453,576	1,243,451	1,020,630
49898	Gain (loss) on reclassification under the overlay approach	140,375,725	-16,543,207	227,884,088	16,585,584
49900	Net other revenue other than interest income	-9,267,049	5,237,518	-20,462,111	6,825,819
49700	Net revenue other than interest	50,473,007	107,907,808	132,507,454	249,463,531
4XXXX	Net revenue	105,719,383	156,168,588	237,796,265	345,776,441
58100	Bad debts expense, commitment and guarantee liability provision	1,165,546	858,759	1,213,111	2,180,526
58300	Net change in provisions for insurance liabilities	59,792,902	94,621,356	130,813,535	198,469,429
Operating expenses
58501	Employee benefits expenses	13,019,720	13,067,806	27,104,742	26,725,557
58503	Depreciation and amortization expense	1,821,282	1,797,343	3,607,843	3,575,760
58599	Other general and administrative expenses	5,972,709	5,498,500	11,301,377	10,636,815
58500	Total operating expenses	20,813,711	20,363,649	42,013,962	40,938,132
61000	Profit (loss) from continuing operations before tax	23,947,224	40,324,824	63,755,657	104,188,354
61003	Income tax expense (benefit)	9,009,113	6,375,411	14,442,263	12,672,341
61005	Profit (loss) from continuing operations	14,938,111	33,949,413	49,313,394	91,516,013
69000	Profit (loss)	14,938,111	33,949,413	49,313,394	91,516,013
Other comprehensive income
Components of other comprehensive income that will not be reclassified to profit or loss, net of tax
69561	Gains (losses) on remeasurements of defined benefit plans	0	0	-826	-655
69562	Gains (losses) on revaluation	1,322,404	0	1,322,404	0
69567	Revaluation gains (losses) on investments in equity instruments measured at fair value through other comprehensive income	-20,954,912	-1,033,891	-15,454,995	8,620,183
69565	Change in fair value of financial liability attributable to change in credit risk of liability	54,504	-180,924	388,021	275,768
69563	Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss	-340,343	-222,887	-735,495	8,217
69569	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	-390,699	-683,699	-460,434	-153,787
69560	Components of other comprehensive income that will not be reclassified to profit or loss, net of tax	-19,527,648	-754,003	-14,020,457	9,057,300
Components of other comprehensive income that will be reclassified to profit or loss, net of tax
69571	Exchange differences on translation	92,747	-1,951,130	3,638,807	-1,860,467
69581	Gains (losses) on hedging instrument that will be reclassified to profit or loss	389,727	54,795	399,823	-91,595
69583	Gains (losses) from investments in debt instruments measured at fair value through other comprehensive income	-158,769,082	29,232,402	-292,944,844	-62,710,582
69575	Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss	-82,840	-366,626	644,920	-536,411
69590	Other comprehensive income on reclassification under the overlay approach	-140,375,725	16,543,207	-227,884,088	-16,585,584
69579	Income tax related to components of other comprehensive income that will be reclassified to profit or loss	-37,856,978	7,975,408	-68,645,004	-10,871,104
69570	Components of other comprehensive income that will be reclassified to profit or loss, net of tax	-260,888,195	35,537,240	-447,500,378	-70,913,535
69500	Other comprehensive income	-280,415,843	34,783,237	-461,520,835	-61,856,235
69700	Total comprehensive income	-265,477,732	68,732,650	-412,207,441	29,659,778
Profit (loss), attributable to
69901	Profit (loss), attributable to owners of parent	14,600,898	33,684,448	48,807,660	91,050,474
69903	Profit (loss), attributable to non-controlling interests	337,213	264,965	505,734	465,539
Comprehensive income attributable to
69951	Comprehensive income, attributable to owners of parent	-265,771,793	68,524,219	-412,962,777	29,228,505
69953	Comprehensive income, attributable to non-controlling interests	294,061	208,431	755,336	431,273
Basic earnings per share
70001	Basic earnings (loss) per share from continuing operations, net of income tax	0.85	2.3	3.45	6.66
70000	Total basic earnings per share	0.85	2.3	3.45	6.66

Consolidated CF

2882 Cathay Financial Holding Co., Ltd. and Subsidiaries
2022Q2 Consolidated Financial Statements
Consolidated Statement of Cash Flows
Unit: NT$ thousands
Code	Accounting Title	2022/1/1 To 6/30	2021/1/1 To 6/30
Cash flows from (used in) operating activities, indirect method
A00010	Profit (loss) from continuing operations before tax	63,755,657	104,188,354
A10000	Profit (loss) before tax	63,755,657	104,188,354
Adjustments
Adjustments to reconcile profit (loss)
A20100	Depreciation expense	2,115,801	1,977,064
A20200	Amortization expense	1,492,042	1,598,696
A20300	Provision (reversal of provision) for bad debt expense	1,213,111	2,180,526
A20400	Net loss (gain) on financial assets or liabilities at fair value through profit or loss	354,273,509	-98,261,402
A20900	Interest expense	7,497,364	6,545,784
A21000	Net (loss) gain arising from derecognition of financial assets measured at amortised cost	-10,495,640	-26,561,821
A21200	Interest income	-112,786,175	-102,858,694
A21300	Dividend income	-12,947,338	-5,783,800
A21400	Net change in insurance liabilities	234,168,730	168,395,512
A21800	Net change in other provisions	23,967,142	-5,604,605
A22300	Share of loss (profit) of associates and joint ventures accounted for using equity method	-1,243,451	-1,020,630
A22450	Loss (profit) reclassified by applying overlay approach	-227,884,088	-16,585,584
A22500	Loss (gain) on disposal of property and equipment	9,477	4,216
A22700	Loss (gain) on disposal of investment properties	-2,300	-23,700
A23000	Loss (gain) on disposal of assets classified as held for sale	-440,613	0
A23100	Loss (gain) on disposal of investments	-681,229	-19,521,231
A23200	Loss (gain) on disposal of investments accounted for using equity method	-20,837	-16,691
A23500	Impairment loss on financial assets	3,545,277	0
A23600	Reversal of impairment loss on financial assets	0	-2,059,317
A24600	Loss (gain) on fair value adjustment of investment property	-1,907,068	-1,064,457
A20010	Total adjustments to reconcile profit (loss)	259,873,714	-98,660,134
Changes in operating assets and liabilities
Changes in operating assets
A71110	Adjustments for decrease (increase) in loans and advances to banks	-631,990	-7,534,536
A71120	Decrease (increase) in financial assets at fair value through profit or loss	142,314,603	41,311,464
A71121	Decrease (increase) in financial assets at fair value through other comprehensive income	-409,640,529	-59,125,493
A71123	Decrease (increase) in investments in debt instruments measured at amortised cost	-193,277,866	14,613,542
A71140	Decrease (increase) in financial assets for hedging	1,084,759	257,309
A71160	Decrease (increase) in receivables	833,246	3,829,920
A71170	Adjustments for decrease (increase) in loans and advances to customers	-119,935,879	-124,411,988
A71180	Decrease (increase) in reinsurance assets	-3,970,138	-2,579,251
A71200	Decrease (increase) in other financial assets	2,932,108	994,918
A71990	Adjustments for decrease (increase) in other assets	340,740	6,798,387
A71000	Total changes in operating assets	-579,950,946	-125,845,728
Changes in operating liabilities
A72110	Adjustments for increase (decrease) in deposits from banks	16,194,565	21,514,544
A72120	Increase (decrease) in financial liabilities at fair value through profit or loss	-146,564,046	-55,368,162
A72130	Increase (decrease) in financial liabilities for hedging	1,691,703	-435,702
A72140	Increase (decrease) in notes and bonds issued under repurchase agreement	-1,201,629	9,555,229
A72160	Increase (decrease) in payable	1,811,980	54,241,969
A72170	Adjustments for increase (decrease) in deposits from customers	122,984,507	110,132,695
A72180	Increase (decrease) in provisions for employee benefits	-239,859	-7,529
A72190	Increase (decrease) in provisions	-47,481	-121,218
A72200	Increase (decrease) in other financial liabilities	3,930,324	-6,304,468
A72990	Adjustments for increase (decrease) in other liabilities	-20,007,742	-5,043,630
A72000	Total changes in operating liabilities	-21,447,678	128,163,728
A70000	Total changes in operating assets and liabilities	-601,398,624	2,318,000
A20000	Total adjustments	-341,524,910	-96,342,134
A33000	Cash inflow (outflow) generated from operations	-277,769,253	7,846,220
A33100	Interest received	101,022,555	101,731,427
A33200	Dividends received	12,377,292	5,753,358
A33300	Interest paid	-8,306,265	-8,459,553
A33500	Income taxes refund (paid)	-8,992,721	-20,926,260
AAAA	Net cash flows from (used in) operating activities	-181,668,392	85,945,192
Cash flows from (used in) investing activities
B00010	Acquisition of financial assets at fair value through other comprehensive income	-11,476,288	-21,602,910
B00020	Proceeds from disposal of financial assets at fair value through other comprehensive income	11,051,667	21,306,624
B00100	Acquisition of financial assets at fair value through profit or loss	-599,981	-557,856
B00200	Proceeds from disposal of financial assets at fair value through profit or loss	266,257	307,515
B01800	Acquisition of investments accounted for using equity method	-2,308,500	-234,500
B01900	Proceeds from disposal of investments accounted for using equity method	29,447	17,550
B02400	Proceeds from capital reduction of investments accounted for using equity method	0	377,287
B02600	Proceeds from disposal of assets classified as held for sale	723,700	0
B02700	Acquisition of property and equipment	-1,475,817	-1,305,779
B02800	Proceeds from disposal of property and equipment	397	851
B04500	Acquisition of intangible assets	-244,139	-271,614
B05400	Acquisition of investment properties	-1,734,439	-9,347,699
B05500	Proceeds from disposal of investment properties	36,800	117,100
B06700	Increase in other assets	-53,876,743	0
B06800	Decrease in other assets	0	2,296,580
B07600	Dividends received	31,727	19,253
B09900	Other investing activities	0	14,800
BBBB	Net cash flows from (used in) investing activities	-59,575,912	-8,862,798
Cash flows from (used in) financing activities
C00400	Decrease in due to the central bank and banks	-1,076,000	0
C00700	Increase in commercial papers payable	0	5,310,000
C00800	Decrease in commercial papers payable	-2,470,000	0
C01400	Proceeds from issuing bank notes payable	545,684	0
C01500	Repayments of bank notes payable	-4,317,040	-7,000,000
C01800	Increase in other borrowings	0	348,491
C01900	Decrease in other borrowings	-1,069,017	0
C04020	Payments of lease liabilities	-986,410	-851,498
C04300	Increase in other liabilities	2,480,015	0
C04400	Decrease in other liabilities	0	-831,224
C05400	Acquisition of ownership interests in subsidiaries	-911,234	-605,519
C05800	Change in non-controlling interests	-833,297	-379,447
CCCC	Net cash flows from (used in) financing activities	-8,637,299	-4,009,197
DDDD	Effect of exchange rate changes on cash and cash equivalents	555,928	-198,349
EEEE	Net increase (decrease) in cash and cash equivalents	-249,325,675	72,874,848
E00100	Cash and cash equivalents at beginning of period	692,041,687	657,824,480
E00200	Cash and cash equivalents at end of period	442,716,012	730,699,328
E00210	Cash and cash equivalents reported in the statement of financial position	226,789,570	544,477,045
E00220	Due from the central bank and call loans to banks qualifying for cash and cash equivalents under the definition of IAS 7	168,249,248	114,283,580
E00230	Securities purchased under resell agreements qualifying for cash and cash equivalents under the definition of IAS 7	47,677,194	71,938,703

Consolidated E

2882 Cathay Financial Holding Co., Ltd. and Subsidiaries
2022Q2 Consolidated Financial Statements
Consolidated Statement of Changes In Equity
Unit: NT$ thousands
3110	3120	3100	3200	3310	3320	3350	3300	3410	3420	3440	3445	3450	3460	3485	3490	3400	31XX	36XX	3XXX
Ordinary share	Preference share	Total share capital	Capital surplus	Legal reserve	Special reserve	Unappropriated retained earnings (accumulated deficit)	Total retained earnings	Exchange differences on translation of foreign financial statements	Unrealised gains (losses) on financial assets measured at fair value through other comprehensive income	Change in fair value of financial liability attributable to change in credit risk of liability	Gains (losses) on remeasurements of defined benefit	Gains (losses) on hedging instruments	Revaluation surplus	Reserve of overlay approach	Others	Total other equity interest	Total equity attributable to owners of parent	Non-controlling interests	Total equity
A1	Equity at beginning of period	131,692,102	15,333,000	147,025,102	177,244,388	59,471,895	150,716,023	267,799,001	477,986,919	-18,652,251	47,131,473	-889,397	-966,130	335,851	11,281,909	64,764,671	-3,224,389	99,781,737	902,038,146	12,000,581	914,038,727
B1	Legal reserve appropriated	14,275,164	-14,275,164	0	0	0
B3	Special reserve appropriated	52,628	-52,628	0	0	0
B5	Cash dividends of ordinary share	-46,092,235	-46,092,235	-46,092,235	-46,092,235
B7	Cash dividends of preference share	-3,390,924	-3,390,924	-3,390,924	-3,390,924
C7	Changes in equity of associates and joint ventures accounted for using equity method	-122,244	-122,244	-122,244
D1	Profit (loss)	48,807,660	48,807,660	48,807,660	505,734	49,313,394
D3	Other comprehensive income	3,532,489	-255,721,184	310,417	34,668	323,172	1,311,727	-211,561,726	-461,770,437	-461,770,437	249,602	-461,520,835
D5	Total comprehensive income	48,807,660	48,807,660	3,532,489	-255,721,184	310,417	34,668	323,172	1,311,727	-211,561,726	-461,770,437	-412,962,777	755,336	-412,207,441
M7	Changes in ownership interests in subsidiaries	-621,991	-621,991	731,063	731,063	109,072	-109,072	0
O1	Changes in non-controlling interests	-833,300	-833,300
Q1	Disposal of investments in equity instruments designated at fair value through other comprehensive income	-2,175,939	-2,175,939	2,175,939	2,175,939	0	0	0
T1	Others	0	0	0	0	0	0	-15,364	-15,364	0	0	0	0	0	15,364	0	0	15,364	0	0	0
Y1	Total increase (decrease) in equity	0	0	0	-122,244	14,275,164	52,628	-17,816,585	-3,488,793	3,532,489	-253,545,245	310,417	34,668	323,172	1,327,091	-211,561,726	731,063	-458,848,071	-462,459,108	-187,036	-462,646,144
Z1	Equity at end of period	131,692,102	15,333,000	147,025,102	177,122,144	73,747,059	150,768,651	249,982,416	474,498,126	-15,119,762	-206,413,772	-578,980	-931,462	659,023	12,609,000	-146,797,055	-2,493,326	-359,066,334	439,579,038	11,813,545	451,392,583
Unit: NT$ thousands
Last year's Statements of Change in Equity
3110	3120	3100	3200	3310	3320	3350	3300	3410	3420	3440	3445	3450	3460	3485	3490	3400	31XX	36XX	3XXX
Ordinary share	Preference share	Total share capital	Capital surplus	Legal reserve	Special reserve	Unappropriated retained earnings (accumulated deficit)	Total retained earnings	Exchange differences on translation of foreign financial statements	Unrealised gains (losses) on financial assets measured at fair value through other comprehensive income	Change in fair value of financial liability attributable to change in credit risk of liability	Gains (losses) on remeasurements of defined benefit	Gains (losses) on hedging instruments	Revaluation surplus	Reserve of overlay approach	Others	Total other equity interest	Total equity attributable to owners of parent	Non-controlling interests	Total equity
A1	Equity at beginning of period	131,692,102	15,333,000	147,025,102	177,256,053	51,967,688	149,894,910	169,606,342	371,468,940	-15,464,009	106,207,840	-1,478,705	-1,966,279	347,871	11,097,089	102,511,617	-3,944,303	197,311,121	893,061,216	11,714,465	904,775,681
B1	Legal reserve appropriated	7,504,207	-7,504,207	0	0	0	0
B3	Special reserve appropriated	1,025,611	-1,025,611	0	0	0	0
B5	Cash dividends of ordinary share	-32,923,025	-32,923,025	-32,923,025	0	-32,923,025
B7	Cash dividends of preference share	-3,390,924	-3,390,924	-3,390,924	0	-3,390,924
C7	Changes in equity of associates and joint ventures accounted for using equity method	-4,181	0	0	-4,181	0	-4,181
D1	Profit (loss)	91,050,474	91,050,474	91,050,474	465,539	91,516,013
D3	Other comprehensive income	0	0	-1,947,523	-42,996,598	220,615	-9,503	-71,317	0	-17,017,643	0	-61,821,969	-61,821,969	-34,266	-61,856,235
D5	Total comprehensive income	91,050,474	91,050,474	-1,947,523	-42,996,598	220,615	-9,503	-71,317	0	-17,017,643	0	-61,821,969	29,228,505	431,273	29,659,778
M7	Changes in ownership interests in subsidiaries	-554,511	-554,511	719,914	719,914	165,403	-176,506	-11,103
O1	Changes in non-controlling interests	0	-689,674	-689,674
Q1	Disposal of investments in equity instruments designated at fair value through other comprehensive income	2,163,754	2,163,754	-2,163,754	-2,163,754	0	0	0
T1	Others	0	0	0	0	0	-204,498	269,423	64,925	0	0	0	0	0	-64,925	0	0	-64,925	0	0	0
Y1	Total increase (decrease) in equity	0	0	0	-4,181	7,504,207	821,113	48,085,373	56,410,693	-1,947,523	-45,160,352	220,615	-9,503	-71,317	-64,925	-17,017,643	719,914	-63,330,734	-6,924,222	-434,907	-7,359,129
Z1	Equity at end of period	131,692,102	15,333,000	147,025,102	177,251,872	59,471,895	150,716,023	217,691,715	427,879,633	-17,411,532	61,047,488	-1,258,090	-1,975,782	276,554	11,032,164	85,493,974	-3,224,389	133,980,387	886,136,994	11,279,558	897,416,552