Cathay Financial Holding (2882) Q3 2024 earnings summary

Executive summary

• Nine-month consolidated net income reached NT$103.4 billion, up from NT$59.7 billion year-over-year, with EPS of NT$6.78, marking the second highest in company history and surpassing the 2023 full-year figure.

• All major subsidiaries, including banking, securities, and asset management, achieved record or near-record earnings, with Cathay United Bank and Cathay Securities surpassing last year's full-year results.

• Loan growth, net interest income, and net fee income posted strong double-digit YoY increases, while asset quality remained solid.

• APE and VNB grew 14% and 20% YoY, supported by strong sales in health & accident and FX-denominated long-term products.

• Digital transformation and overseas expansion, especially in Vietnam and China, contributed to growth.

Financial highlights

• Net income for the first nine months was NT$103.4 billion, up 36% YoY; EPS was NT$6.78, up from NT$3.81 YoY.

• Book value hit a record NT$939 billion; book value per share rose to NT$61.5.

• Consolidated ROE reached 15.8%, with all subsidiaries achieving double-digit ROEs; ROAA improved to 1.06%.

• Total assets grew to NT$13.31 trillion, and equity attributable to parent company reached NT$923.4 billion.

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

Outlook and guidance

• Management aims to maintain net interest margin at 2024 levels despite market volatility and is focused on high CSM and RAROC products under IFRS 17.

• Deposit growth expected to return to mid-high single-digit rates in 2025.

• Digital transformation and overseas expansion, especially in Southeast Asia and China, remain priorities.

• The group continues to monitor the impact of new IFRS standards, including IFRS 17 and IFRS 18.

• Management is assessing the impact of Pillar Two income tax legislation, with no significant effect on current results.