FUBON FINANCIAL HOLDING CO., LTD. 2023 Annual Results
Presentation
2024.3.22
Disclaimer
This document is provided by Fubon Financial Holdings (the "Company"). No representation, warranty or undertaking, express or implied, is or will be given by the Company as to the adequacy, accuracy, completeness and correctness of information contained herein. In addition, no obligation is undertaken by the Company to update or revise the information contained herein due to any changes in circumstances.
This document may contain forward-looking statements with respect to the financial condition, results of operations and business of the Company. These forward-looking statements represent the Company's expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed. Certain statements, such as those that include the words "potential", "estimated", and similar expressions or variations on such expressions may be considered "forward-looking statements". Financial numbers in this document may include preliminary unaudited numbers or management accounts. All information is for reference only, some figures due to rounding, summation may not equal to the total. Please refer to the audited financial report for details. This document does not constitute or contain an offer, invitation or a solicitation to buy or sell any securities or related financial instruments.
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Performance highlights of
Fubon Financial Holdings
Performance review by subsidiary
- Fubon Life
- Taipei Fubon Bank
- Fubon Insurance
- Fubon Securities
- Overseas Banking Operations
Fubon Financial Holdings: Milestones in 2023
Robust earnings performance
- EPS tops Taiwan's FHCs for fifteen straight years. Net profit reached NT$66.0bn, EPS at NT$4.80, total assets at NT$11.1tn, net worth at NT$802.4bn, and BVPS at NT$54.29 per common share
- Earnings remain benign. Net profit of Fubon Life ranked first among peers. Net profit of Taipei Fubon Bank hit a record high. Net profit of Fubon Securities was the second highest in record
Expansion across business lines
- Banking and securities subsidiaries mergers between Fubon and JihSun provide customers with high-quality, diversified products, and service network expansion
- Taipei Fubon Bank expands customer base and cross-selling opportunities under the issuance of Costco affinity card
- Overseas market expansion to enhance international service platform, including Fubon Bank (China)'s acquisition of Citi's mortgage portfolio, Taipei Fubon Bank's new branch application in Australia and India, and Fubon Insurance's application of reinsurance subsidiary in Malaysia
4
Fubon Financial Holdings: Business Highlights
Fubon Life | • Net profit of NT$36.09bn. Top 1 among peers in Taiwan | ||
• Top 2 in terms of FYP, TP and FYPE in Taiwan | |||
• Recurring return before hedging increased YoY. Total investment return reached 3.79% | |||
• Equity to asset ratio about 9.8% and RBC ratio around 336% | |||
Taipei Fubon | • Net profit reached NT$24.47bn, a record high. Net profit up 14% YoY if excluding | ||
Bank | bargain purchase gain in 2022 | ||
• NIM increased 9bps YoY based on the growth in loans and overseas businesses | |||
• Net fee income rose 39.7% YoY, reflecting the growth in wealth management and credit | |||
card businesses | |||
• Top 2 in active cards with 14.5% market share. Top 4 in the amount of card spending | |||
with 11.6% market share | |||
Fubon Insurance | • Net loss of NT$2.23bn, with loss of NT$6.06bn (pre-tax basis) from Covid-related | ||
policies | |||
• Insurance premium increased 7.7% YoY. Market leader with market share of 23.8% | |||
• Investment return at 3.61%, remaining stable in a volatile market | |||
Fubon | • Net profit of NT$7.05bn, up 75.4% YoY, mainly from investment gains as TAIEX trended | ||
Securities | up | ||
• Net profit and market share of major businesses ranked among top 3 with meaningful | |||
increase in business scale post merger with JihSun | |||
5
Fubon Financial Holdings: Profitability
- Net profit NT$66.0bn, up 40.7% YoY. EPS of NT$4.80. Both led FHC peers
Net profit
NT$bn144.6
40.7%
46.9
66.0
2021 | 2022 | 2023 |
Earnings per share (EPS)
NT$12.49
35.6%
3.54
4.80
2021 | 2022 | 2023 |
Note： | |
EPS of 2021 and 2022 would be NT$11.33 and NT$3.37 respectively, if adjusted to reflect stock dividends in 2022 and 2023 | 6 |
Fubon Financial Holdings: Net profit from major subsidiaries
- Net profit growth of Fubon FHC came from Taipei Fubon Bank's revenue increase, Fubon Insurance's recovery from Covid-related policies impact, growing earnings of Fubon Securities and Fubon Bank (HK). Fubon Life's profit fell, reflecting higher hedging costs and lower capital gains. Fubon Bank (China)'s profit fell on NIM contraction and increase in provision
Net profit from subsidiaries
NT$bn | 2022 | 2023 | |||||||||
66.0 | 65.5 | ||||||||||
46.9 | 36.1 | ||||||||||
24.7 | |||||||||||
23.2 | |||||||||||
4.0 | 7.1 | 2.3 | 3.3 | 1.9 | 0.1 |
-2.2
-40.0 | ||||||
Fubon | Fubon | Taipei Fubon | Fubon | Fubon | Fubon | Fubon |
FHC | Life | Bank (1) | Insurance | Securities | Bank (HK) | Bank (China) |
Note: (1) Net profit of Taipei Fubon Bank was NT$24.5bn. Taipei Fubon Bank's net profit of NT$24.7bn excludes investment income recognized under equity method from Fubon Bank (China) to avoid double counting
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Fubon Financial Holdings: Assets and Net Worth
- Fubon FHC's total assets were over NT$11tn, up 4.9% YoY. Net worth increased 41.9% YoY. BVPS was NT$54.29 on common share basis
Total assets | Equity attributable to parent company | |
NT$bn | 11,106 | ||
10,500 | 10,588 | 4.9% | |
NT$bn | Net worth | BVPS (common share basis) | |
68.87 | 37.90 | 54.29 | |
950 | |||
802 | |||
566 | |||
2023 | YoY |
Net worth | +41.9% |
BVPS | +43.2% |
2021 | 2022 | 2023 | 2021 | 2022 | 2023 |
Capital adequacy ratio of FHC and subsidiaries |
2023 | Regulatory requirements | ||||||
Fubon Financial | CAR | 128.91% | 100% | ||||
Fubon Life | RBC | 336.09% | 200% | ||||
Fubon Insurance | RBC | 278.37% | 200% | ||||
Taipei Fubon Bank | Tier-one | 14.17% | 10.50% | ||||
Total CAR | 16.41% | 12.50% | |||||
Taipei Fubon Bank (HK) | Tier-one | 16.57% | 9.50% | ||||
Total CAR | 17.24% | 11.50% | |||||
Fubon Bank (China) | Tier-one | 12.41% | 8.50% | ||||
Total CAR | 14.53% | 10.50% | |||||
Fubon Securities | CAR | 361.89% | 150% | 8 | |||
Fubon Financial Holdings: ROA & ROE
- ROA and ROE increased YoY
ROA
1.49%
0.45% | 0.60% | |
2021 | 2022 | 2023 |
ROE
16.88%
9.65%
6.19%
2021 | 2022 | 2023 | 9 |
Fubon Financial Holdings: Market position
- Leading market position across major business lines
Fubon Life
Market | Market | |
ranking | share | |
Total premium | 2 | 14.8% |
First year premium | 2 | 14.1% |
First year premium | 2 | 15.2% |
equivalent | ||
Fubon Insurance
Market | Market | |
ranking | share | |
Direct written premium | 1 | 23.8% |
Commercial line | 1 | 25.1% |
Personal line | 1 | 23.1% |
Premium through online | 1 | 36.7% |
channel | ||
Taipei Fubon Bank
Market ranking | Market | |
(Overall / private banks) | share | |
Deposit balance | 6 / 3 | 5.7% |
Loan balance | 10 / 4 | 5.3% |
Mortgage | 5 / 2 | 6.6% |
Active cards | 2 | 14.5% |
Fubon Securities(1) | ||
Market ranking | Market | |
share | ||
Brokerage | 3 | 7.56% |
Margin loans | 2 | 9.56% |
Securities lending | 3 | 17.08% |
Note: (1) Market ranking of securities sector does not include foreign ones (2) Data as of December 2023 | 10 |
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Fubon Financial Holdings Co. Ltd. published this content on 22 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2024 05:38:06 UTC.
