Cathay Financial Holding (2882) Q3 2025 earnings summary

Executive summary

• Net income for the first nine months of 2025 was NT$74.9 billion, the third highest on record, with ROE at 11%, despite a year-over-year decline due to TWD appreciation and a high investment income base in 2024.

• Core businesses remained resilient, with record performances from banking, insurance, and securities subsidiaries, and robust growth in deposits, loans, and fee income.

• Asset management platform surpassed NT$10 trillion in AUM, with significant recognition and awards for investment performance.

• Total assets reached NT$14.24 trillion, up from NT$13.31 trillion as of September 30, 2024.

• The independent auditor’s review concluded the financial statements present fairly, in all material respects, the financial position and performance.

Financial highlights

• Consolidated net income for 9M25 was NT$74.9 billion, down 28% YoY; EPS was NT$4.84, down from NT$6.78 in 9M24.

• Book value rebounded YTD to NT$907.9 billion, supported by earnings but partially offset by mark-to-market losses from TWD appreciation.

• ROE for 9M25 was 11.01%, down from 15.84% in 9M24.

• Cathay United Bank net income up 11% YoY to NT$35 billion.

• Cathay Life net income at NT$35.5 billion, down YoY.

Outlook and guidance

• Focus remains on strengthening asset management as a third profit engine, leveraging integration across insurance, banking, and asset management.

• Expect high single-digit loan growth, robust fee income, and stable net interest margin for the full year.

• Ongoing adaptation to IFRS 17 and TW-ICS, emphasizing risk-adjusted returns and capital planning.

• New business CSM target for next year is NT$75 billion.

• Dividend yield to remain competitive within the industry.