Fubon Financial reported unaudited consolidated pre-tax profit of NT$6.466bn and net profit of NT$6.084bn in January, translating into EPS of NT$0.49. Net profit of Taipei Fubon Bank reached a record high for the same period and net profit of Fubon Securities was the third highest in record for the same period. Pre-tax profit of Fubon Financial would be over NT$10bn if exclusive of FX loss due to appreciation of Asian currencies in January.

The performance of the main subsidiaries is as follows:

Fubon Life's January unaudited consolidated pre-tax profit was NT$852mn, and standalone net profit was NT$1,391mn. In January, as the TAIEX saw a rise of 7.97%, Fubon Life realized capital gains, with the investment and dividend income of equities and funds as the main sources of profit. In terms of fixed-income market, funds flowed back into the bond market and long-term interest rates fluctuated after a correction in January. Fubon Life seized the opportunity to allocate bond positions and aimed to maintain reasonable cash flow in order to improve long-term recurring returns. With the weakening of the US dollar, international funds gradually returned to Asia, leading to the appreciation of Asian currencies such as the New Taiwan Dollar, South Korean Won, and Singapore Dollar. The depreciation of the US dollar against the New Taiwan Dollar by over 2% resulted in FX loss this month. In terms of hedging strategies, Fubon increased its hedging ratio and also used proxy hedge strategy to enhance its hedging flexibility while retrieving FX reserve to offset partial FX risks so as to reduce hedging costs. The balance of FX reserves is about NT$32.6bn as of January, which can provide flexibility for future strategy adjustments. Fubon Life's standalone FYP was NT$6,531mn, up 8.9% mom. Interest-sensitivity and investment-linked products grew 16.3% and 11.3%, respectively. TP reached NT$28,650mn. Fubon Life's capital position remained decent with RBC ratio at around 300%. The equity to asset ratio exceeded the legal minimum requirement of 3%.

Taipei Fubon Bank's January net profit was NT$3,063mn, up 111% yoy and reached a record high for the same period. Growth of net profit was mainly due to a rise of nearly 40% yoy in revenue. Investment income benefited from the recent stabilization of the financial market, and global stock and bond markets rebounded, leading to valuation increase in financial assets. Net fee income doubled mom and was up yoy, mainly from the rising income of wealth management and credit card business. 5% growth in net interest income yoy, as deposit and loan momentum was stable and interest rate hike. Asset quality remained benign. NPL ratio and coverage ratio were at 0.18% and 711%, respectively.

The number of active card and card spending maintained double-digit growth, and the co-brand credit card with Costco was officially launched on February 1st. With the combination of big data, AI review, diversified application channels and upgraded rewards and benefits for credit card customers, the bank will provide card users with brand-new user experience.

Fubon Insurance's January net loss was NT$108mn. Direct claims and retention claims of covid-related policy was NT$6,283mn from 159,000 cases, and NT$5,506mn, respectively, in January. Also, the incurred-but-not-reported (IBNR) reserves balance on retention basis was NT$1,563mn. Total direct claims and IBNR would be around NT$8,660mn without considering the recovery from reinsurance. In terms of business performance, the premium in January was NT$5,355mn, of which marine insurance grew by 45%. Personal comprehensive insurance and health and injury insurance business also outperformed the market by 3%~6%. With a market share of 23.5%, Fubon Insurance continued to be the market leader.

Fubon Securities' January net profit was NT$464mn, up NT$360mn mom and NT$409mn yoy. As Taiwan and global stock markets rebounded in the beginning of 2023, TAIEX surged 1,127 points in January, leading to significant revenue increase from proprietary trading on a mom and yoy basis.

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Fubon Financial Holdings Co. Ltd. published this content on 10 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2023 10:19:06 UTC.