Chang Hwa Commercial Bank (2801) Q2 2025 earnings summary

Executive summary

• Net income after tax for 6M25 reached NT$9.13 billion, up 22.64% year-over-year, with EPS at NT$0.78 and ROE at 4.53%.

• Consolidated financial statements for the six months ended June 30, 2025, were audited and received an unmodified opinion, confirming fair presentation in accordance with local and international standards.

• Loans comprised 60% of total assets as of June 30, 2025, with impairment assessment highlighted as a key audit matter due to management judgment and estimation.

• Loans grew 6.75% YoY to NT$1,997 billion, with overseas loans surging 22.47% YoY.

• Deposits increased 1.67% YoY to NT$2,591 billion, with NTD deposits up 4.10% and FX deposits down 5.37%.

Financial highlights

• Net revenue for 6M25 was NT$22.53 billion, up 8.58% YoY; net interest income rose 17.19% YoY.

• Net income for the six months ended June 30, 2025, was NT$9,129 million, up from NT$7,444 million year-over-year.

• Total assets reached NT$3,310,943 million, up from NT$3,102,430 million as of June 30, 2024.

• Net fee income declined 3.68% YoY, but adjusted for one-off compensation, it grew 12.16%.

• Operating expenses increased 6.35% YoY, with a cost-income ratio of 46.18%.

Outlook and guidance

• Global economic growth is slowing, with the US expected to achieve a soft landing and the Fed possibly cutting rates in September.

• Taiwan's tech-driven growth faces headwinds from tariffs and weakening domestic demand.

• The Group is assessing the impact of new IFRS standards effective from 2026 and is preparing for changes in financial instrument classification and measurement.

• Management continues to monitor macroeconomic indicators and forward-looking factors in credit risk assessment.

• The bank's strategy focuses on optimizing credit structure, expanding profitable growth, and accelerating digitalization.