Taipei, September 11 (CNA) Fubon Financial Holding Co. was the most profitable of the 15 financial holding companies listed on the local stock market in the first eight months of this year, according to market statistics.
In the eight-month period, Fubon Financial achieved net profit of NT $ 122.35 billion (US $ 4.42 billion), up 91% from the previous year, with profit per share (EPS) of NT $ 11.69, which was also the highest among the 15 financial holding companies.
The company’s overall net profit in the eight months of 2021 topped the NT $ 90.27 billion the company posted for all of 2020. Market analysts attributed the increase largely to returns on booming stock market investment around the world.
In August alone, Fubon Financial posted a net profit of NT $ 16.17 billion, which also made the company the highest-grossing financial holding of the month, according to statistics.
Fubon Life Insurance, the flagship insurance entity of Fubon Financial, saw its net profit jump 109% from the previous year to NT $ 89.93 billion in the eight-month period, while that the Taipei Fubon Commercial Bank, the banking arm, recorded a net profit of NT $ 13.48 billion. profit over the same period.
The life insurer has made good use of hedging strategies to offset the impact of a stronger new Taiwan dollar, Fubon Financial said.
According to Fubon Financial, it reported a profit of around NT $ 260 million from Jih Sun Financial Holding Co. in August, when it acquired a 56.92% stake in Jih Sun Financial. Fubon Financial has announced its intention to acquire the remaining stake in Jih Sun Financial.
Cathay Financial Holding Co. came in second after posting net profit of NT $ 114 billion in the first eight months of this year, up 91% from a year earlier, with EPS of 8 , NT $ 35.
Among its major subsidiaries, Cathay Life Insurance benefited from higher returns on investment and cost containment efforts to increase its net profit by 124% over the previous year, to NT $ 94.49 billion on the eight month period.
Its banking entity – United Cathay Bank – posted NT $ 16.7 billion during the same period. Net profit was lower than a year earlier due to a relatively high baseline compared to the same period last year thanks to increasing returns on investment, but Cathay Financial did not disclose the magnitude of the decline.
In terms of EPS, CTBC Financial Holding Co. took third place with NT $ 2.14, ahead of Yuanta Financial Holding Co. (NT $ 2.13), China Development Financial Holding Co. (NT $ 1.56), Shin Kong Financial Holding Co. (NT $ 1.51), Taishin Financial Holding Co. (NT $ 1.41), Mega Financial Holding Co. (NT $ 1.32), First Financial Holding Co. (NT $ 1.17 NT) and E. Sun Financial Holding Co. (NT $ 1.15).