Cathay Financial Holding (2882) Q2 2025 earnings summary

Executive summary

• Net income for the first half of 2025 reached NT$45.91 billion, down from NT$71.66 billion in 2024, with resilient APE and record high earnings across banking, P&C insurance, and asset management subsidiaries, despite currency headwinds and market volatility.

• Cathay United Bank, Cathay Securities, and Cathay SITE each delivered record high first-half earnings; Cathay Life's earnings declined year-over-year due to currency appreciation and a high base last year.

• Core business momentum remained solid, supported by robust growth in deposits, loans, and fee income across subsidiaries.

• Continued overseas expansion in Asia, with notable growth in China and Vietnam insurance premiums.

• Hosted the 9th Cathay Sustainable Finance and Climate Change Summit, attracting over 5,000 participants and record engagement from industry leaders.

Financial highlights

• Consolidated net income for the first half was NT$45.91 billion, with EPS at NT$2.89, down from NT$71.66 billion and NT$4.66 in 2024.

• Total assets as of June 30, 2025, were NT$13.79 trillion, up from NT$13.27 trillion a year earlier.

• Book value declined year-to-date to NT$781.4 billion, reflecting lower mark-to-market value of financial assets and Taiwan dollar appreciation.

• Net interest income for the six months ended June 30, 2025, was NT$132.94 billion, up from NT$128.18 billion year-over-year.

• ROE stood at 10.9% on a consolidated basis; ROAE for 1H25 was 10.88%, down from 16.94% in 1H24.

Outlook and guidance

• High single-digit loan growth expected for the full year, with balanced growth across sectors.

• Focus on high CSM and RAROC products, with profitability and capital charge as key considerations.

• Net interest margin projected to remain at 2024 full-year level; fee income targeted for double-digit growth.

• CSM release expected to increase 10%-15% year-over-year; cost of liability to decrease to around 2.3% on an adjusted basis.

• The group is preparing for the adoption of IFRS 17 and other new standards, with ongoing assessments of potential impacts on financial position and performance.