NT$69.2 Billion Profit in First Ten Months, EPS Hits Record High
Taishin Shin Kong Financial announced October self-assessed after-tax profit of NT$5.03 billion, down 17.1% year-on-year, with cumulative first-ten-month after-tax profit of NT$69.2 billion, up 141% from the same period last year, and earnings per share of NT$2.67, a record high. Its subsidiary Shin Kong Life reported October after-tax profit of NT$2.05 billion and cumulative first-ten-month after-tax profit of NT$34.27 billion. The company said, supported by steady release of contractual service margin and recurring investment income, operating performance remained solid, while investment positions were prudently adjusted in response to market changes, with capital gains realized at the appropriate time to further optimize asset allocation and fund utilization efficiency. Going forward, it will continue to improve recurring income and implement dynamic risk controls and optimal asset-liability matching, steadily advancing operating strategies and strengthening its overall business fundamentals. Insurance business momentum remained strong, with first-year premiums for the first ten months reaching NT$112.31 billion, up 29% year-on-year.
Both Banks Hit Record Highs for Same Period, Asset Quality Stable
On the banking side, Taishin Bank reported October after-tax profit of NT$2.61 billion and cumulative after-tax profit of NT$21.94 billion, up 24% from the same period last year, hitting a record high for the same period, supported by strong core business momentum, with net interest margin increasing from the same period last year, driving net interest income and net fee income up 24% and 23% respectively. As of the end of October, the NPL ratio was 0.18% and the allowance coverage ratio was 683%, with asset quality remaining stable. Shin Kong Bank reported October after-tax profit of NT$600 million and cumulative after-tax profit of NT$8.15 billion, up 69% from the same period last year, hitting a record high for the same period. Cumulative net fee income grew 24% from the same period last year, with strong performance, as sales momentum of wealth management products such as insurance and funds remained strong, driving wealth management income to new highs. As of the end of October, the NPL ratio was 0.13% and the allowance coverage ratio was 975%, with asset quality remaining stable.
Securities Benefits from Buoyant Stock Market, Disposal Gains Contribute
Securities subsidiary earnings grew in line with the booming stock market, with Taishin Securities reporting October after-tax profit of NT$130 million and cumulative after-tax profit of NT$9.08 billion, including MasterLink Securities earnings from January 1 to April 5 this year, hitting a record high for the same period, mainly due to expanded proprietary investment positions, and with the securities market index rising and trading active, gains on disposition of operating securities and brokerage fee income increased. Overall, Taishin Shin Kong Financial first-ten-month profit momentum came from three supports of recurring life insurance income, core banking business growth and a buoyant securities market, with subsidiaries all delivering record-high results for the same period, while allowance coverage ratios and NPL ratios also remained at high levels, showing profit growth advancing together with risk controls.