Mega Financial Holding (2886) investor relations material

Executive summary

• Net profit reached NT$9.40 billion in Q1 2026, up 17% year-over-year, with EPS rising to NT$0.63 and stable group profitability supported by strong subsidiary contributions.

• Bank subsidiary saw single-digit loan growth, with average deposits at NT$3.3 trillion (+4% YoY) and loans at NT$2.5 trillion (+7% YoY).

• Non-bank subsidiaries, including securities, bills, and insurance, delivered robust earnings, with securities net income up 422% YoY.

• Wealth management AUM rose 17% YoY to NT$256.1 billion, and net fee income grew 27% YoY.

• The group adopted IFRS 17 for insurance contracts, resulting in retrospective restatement of 2025 figures and redesignation of certain financial assets.

Financial highlights

• Consolidated net interest income increased 6% YoY to NT$10.11 billion; net fee income and trading gains both achieved double-digit growth.

• EPS for Q1 2026 was NT$0.63, up from NT$0.54 YoY.

• Total assets grew 7% YoY to NT$5.0 trillion; loans rose 7% YoY to NT$2.5 trillion; deposits up 4% YoY to NT$3.2 trillion.

• ROE and ROA annualized at 9.46% and 0.74%, respectively, with a high cash dividend payout ratio of 74%.

• Net profit margin for the group was 43.46% after tax, with a return on assets of 0.21%.

Outlook and guidance

• Loan growth for 2026 is targeted to approach double digits, driven by expansion in AI, semiconductors, green energy, and 5G infrastructure.

• The group expects continued growth in core banking and insurance operations, with a focus on risk management and capital adequacy.

• Adoption of IFRS 17 is expected to enhance transparency in insurance contract reporting.