Chang Hwa Commercial Bank (2801) Q3 2024 earnings summary

Executive summary

• Net income after tax for 9M24 reached NT$11.25bn, up 9.89% YoY, with EPS at NT$1.00 and ROE at 5.80%.

• Total assets reached NT$3.17 trillion as of September 30, 2024, compared to NT$2.79 trillion a year earlier.

• Loans grew 10.17% YoY to NT$1,902bn, and deposits increased 10.13% YoY to NT$2,587bn.

• The independent auditor's review found the financial statements present fairly, in all material respects.

• Recognized for sustainability, including awards for governance, social, and environmental initiatives.

Financial highlights

• Net revenue for 9M24 was NT$32.07bn, up 9.19% YoY; net fee income surged 40.09% YoY, mainly from wealth management.

• Net interest income for the nine months was NT$16.82bn, up from NT$16.67bn YoY; net non-interest income rose to NT$15.25bn from NT$12.70bn YoY.

• Operating expenses rose 5.78% YoY to NT$15.13bn; cost-income ratio improved to 47.17%.

• Provision expenses increased 27.69% YoY to NT$2.95bn.

• EPS for the nine months was NT$1.00 (basic and diluted), up from NT$0.91 YoY.

Outlook and guidance

• Taiwan's economy is expected to dip then rebound in 2025, supported by AI opportunities and potential interest rate cuts.

• Export and investment stabilization anticipated, with optimism in electronics and consumption sectors.

• The Group continues to monitor the impact of new and upcoming IFRS standards, including IFRS 18 and amendments to IAS 21.

• The Group is assessing the impact of Pillar Two income tax legislation in Japan and the UK.