Chang Hwa Commercial Bank (2801) Q1 2025 earnings summary

Executive summary

• Net income after tax for Q1 2025 reached NT$4.14 billion, up 7.92% year-over-year, with EPS at NT$0.37 and ROE at 2.03% after tax.

• Loans grew 8.07% YoY to NT$1,997 billion, with overseas loans surging 23.49% YoY; deposits increased 3.76% YoY to NT$2,600 billion.

• Asset size expanded to NT$3,210 billion, and net worth rose to NT$206 billion as of Q1 2025.

• Consolidated financial statements for Q1 2025 were reviewed by independent auditors, who concluded they present fairly the financial position and performance in accordance with relevant regulations and standards.

Financial highlights

• Net revenue for Q1 2025 was NT$10.74 billion, up 4.41% YoY; net interest income rose 16.10% YoY, while net fee income declined 14.16% YoY (excluding a one-time item, fee income grew 12.16%).

• Operating expenses increased 8.68% YoY, raising the cost-income ratio to 48.18%.

• Provision expenses dropped 34.97% YoY, supporting higher net income before tax.

• Total comprehensive income for Q1 2025 was NT$4.56 billion, down from NT$6.30 billion in Q1 2024, mainly due to a swing in other comprehensive income.

• Basic and diluted EPS were both NT$0.37 for Q1 2025, compared to NT$0.34 for Q1 2024.

Outlook and guidance

• Global economic uncertainty persists due to trade policy shifts, geopolitical tensions, and potential mid-year US rate cuts.

• Taiwan’s export sectors saw strong H1 2025 performance but face softer demand and pricing pressure in H2 as tariff grace periods end.

• The Group is assessing the impact of new IFRS standards effective from 2026, including amendments to IFRS 9, IFRS 7, and IFRS 18, and will disclose impacts when assessments are complete.