Cathay Financial Holding (2882) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was TWD 31.7 billion, up 8% YoY, with adjusted net income at TWD 48.6 billion, reflecting strong core business momentum and record or near-record earnings across all major subsidiaries.

• Wealth management fees increased 13% YoY, and asset quality remained sound.

• Board approved a cash dividend of TWD 3.5 per share, with a 49.6% payout ratio and 4.7% yield at announcement.

Financial highlights

• Consolidated ROE reached 16.9%; all major subsidiaries posted double-digit ROE.

• Consolidated net worth increased significantly to TWD 1,256.7 billion, with adjusted net worth at TWD 1,051.4 billion, supported by earnings and OCI recovery.

• Adjusted book value per share was TWD 79 after deducting preferred shares.

• EPS for Q1 2026 was 2.15; adjusted EPS was 3.31.

• Capital adequacy ratios remain strong: Cathay FHC CAR at 122%, CUB BIS at 16.1%, Cathay Life RBC at 310%.

Outlook and guidance

• Double-digit loan growth targeted for the full year, with strong momentum in foreign currency loans.

• Net interest margin expected to expand in 2026 due to favorable economic developments.

• Credit costs projected to remain stable at around 25 basis points.

• Life insurance new business CSM on track to meet full-year target of TWD 75 billion, with 36% achieved in Q1.

• IFRS 17 transition enhances earnings transparency and predictability, with CSM release becoming a key driver of future earnings.