Cathay Financial Holding (2882) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was TWD 32.2 billion (NT$32.2 billion), with EPS at TWD 2.18 (NT$2.18) and ROE at 14.4%, though down from Q1 2024 due to a high investment base last year.

• Core subsidiaries—banking, P&C insurance, and asset management—delivered record high first quarter earnings, despite a YoY decline in consolidated net income.

• Total assets reached NT$13.87 trillion, up 6% year-over-year; consolidated book value stood at TWD 884 billion (NT$866.1 billion), reflecting lower mark-to-market value amid market corrections.

• Continued overseas expansion, digital transformation, and product innovation, with approval to establish a Mumbai branch.

• The independent auditor’s review found the financial statements present fairly in all material respects.

Financial highlights

• Cathay United Bank earnings grew 17% year-on-year, with net interest income up 18% and net fee income up 33%.

• Cathay Life's earnings declined year-on-year due to a high base of capital gains in Q1 2024, but recurring income and underwriting profits remained steady.

• Cathay Century net income rose 21% year-on-year; premium income up 12% to TWD 9.9 billion.

• Net interest income rose to NT$67.1 billion, up 7.5% year-over-year; interest income was NT$84.3 billion, interest expense NT$17.2 billion.

• Value of new business for Cathay Life reached TWD 9.4 billion, up 9% year-on-year.

Outlook and guidance

• Full-year targets include high single-digit loan growth, stable net interest margin, and high single-digit fee income growth.

• Focus on high CSM and RAROC products, ongoing digital transformation, and expansion in Southeast Asia.

• The group continues to assess the impact of new IFRS standards, including IFRS 17 and IFRS 18, on future financial reporting.

• Management expects ongoing volatility in financial markets and is monitoring regulatory changes and macroeconomic risks.

• Well-positioned for IFRS 17 and ICS adoption in the coming year.