Cathay Financial Holding (2882) Q3 2024 earnings summary

Executive summary

• Nine-month net income reached NT$103.4 billion, up 73% year-over-year, the second highest in company history, driven by robust performance across all subsidiaries and supported by digital transformation and overseas expansion.

• EPS for the period was NT$6.78, up from NT$3.81 in 2023.

• Cathay United Bank and Cathay Securities achieved all-time high earnings, surpassing last year's full-year results.

• Asset management, P&C insurance, and life insurance segments delivered record or near-record results, with APE and VNB up 14% and 20% year-over-year.

• Total assets reached NT$13.31 trillion, with the independent auditor confirming fair presentation of financial statements.

Financial highlights

• Consolidated net income for the first nine months was NT$103.4 billion, up 36% year-over-year; EPS was NT$6.78.

• Book value per share reached NT$61.5, with total equity attributable to owners at NT$923.4 billion.

• ROE improved to 15.84% for 9M24; ROA was 1.06%.

• Net interest income for the nine months was NT$194.8 billion, up from NT$182.4 billion year-over-year.

• Profit before income tax from continuing operations was NT$121.1 billion, a 69% increase from 2023.

Outlook and guidance

• Management aims to maintain NIM at 2024 levels despite market volatility and expects deposit growth to return to mid-high single-digit rates in 2025.

• Focus remains on high CSM and RAROC products, with profitability under IFRS 17 and new solvency regime confirmed.

• Continued digital transformation and overseas expansion, especially in Southeast Asia and China.

• The group is monitoring the impact of new IFRS standards and Pillar Two income tax legislation.