Cathay Financial Holding (2882) Q2 2026 earnings summary

Executive summary

• Net income for the first half of 2026 reached TWD 76.5 billion, with net income plus after-tax FVOCI equity disposal gains at TWD 165.9 billion, surpassing the 2025 full-year level and setting an all-time high.

• All major subsidiaries delivered record-high net income and double-digit ROE, with robust core business momentum across banking, insurance, asset management, and securities.

• Strong capital position with net worth at TWD 1.13 trillion and equity-to-asset ratio at 11.8%, supported by earnings and OCI valuation gains.

Financial highlights

• EPS for the first half was 4.95; including after-tax FVOCI equity disposal gains, per share amount was 11.04.

• Consolidated operating income for 1H26 was TWD 156.8 billion, up 21% YoY; net fee income rose 4% to TWD 26.0 billion.

• ROE reached 16.9%, with all major subsidiaries delivering double-digit ROEs.

• Consolidated net worth reached TWD 1.13 trillion, with adjusted net worth (including after-tax CSM) at TWD 1.58 trillion.

• Capital adequacy ratio stood at 136%.

Outlook and guidance

• Full-year target of double-digit loan growth maintained, with strong momentum in corporate and foreign currency loans expected to continue.

• Net interest margin guidance raised to 1.63%-1.65% for the year, reflecting effective funding cost management and favorable rate environment.

• IFRS 17 transition enhances earnings predictability and stability, with CSM release as a key driver.

• New business CSM for Cathay Life expected to exceed full-year target of TWD 75 billion, with health products accounting for around 60% of new business CSM.

• Dividend policy remains focused on reflecting strong earnings and maintaining competitive yields.