Cathay Financial Holding (2882) Q2 2025 earnings summary

Executive summary

• Net income for the first half of 2025 was 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.

• Cathay United Bank, Cathay Century, and Cathay SITE delivered record-high first-half earnings; Cathay Securities achieved its second-highest YTD earnings, while Cathay Life's earnings declined year-over-year due to currency appreciation and a high capital gain base last year.

• Core business momentum remained solid despite lower net income year-over-year, mainly due to sharp Taiwan dollar appreciation and financial market volatility.

• 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 and listed companies.

Financial highlights

• 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 grew to NT$13.79 trillion.

• Cathay United Bank reported 16% year-on-year earnings growth, with double-digit growth in loans and net interest income, and 20% growth in net fee income.

• Cathay Life's recurring income and annualized premium growth were solid, despite earnings decline.

• Cathay Century Insurance net income up 45% year-on-year; premium income grew 11% year-on-year, market share reached 13.5%.

• Asset management subsidiary Cathay SITE posted 14% year-on-year earnings growth; AUM reached NT$2.2 trillion.

Outlook and guidance

• Guidance remains unchanged from the previous quarter; high single-digit loan growth expected for the full year, with balanced growth across sectors.

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

• Preparing for IFRS 17 and other new standards, with ongoing assessments of potential impacts on financial position and performance.

• Management continues to monitor inflation, interest rate fluctuations, and regulatory changes as key factors affecting future results.

• For life insurance, a 10%-15% year-over-year increase in CSM release is expected, with a much lower cost of liability at around 2.3% on an adjusted basis.