Chang Hwa Commercial Bank (2801) Q3 2025 earnings summary

Executive summary

• Net income after tax for 9M25 reached NT$14.15bn, up 25.8% year-over-year, with EPS at NT$1.20 and ROE at 6.84%.

• Asset size expanded to NT$3.36 trillion as of 3Q25, with loans and deposits both showing growth.

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

Financial highlights

• Net revenue for 9M25 was NT$34.48bn, up 7.51% YoY; net interest income rose 17.7% YoY to NT$19.80bn.

• Net fee income increased 1.58% YoY to NT$5.52bn; excluding a one-time compensation in 2024, fee income grew 12.7% YoY.

• Operating expenses rose 5% YoY to NT$15.88bn; cost-income ratio improved to 46%.

• Credit loss provisions dropped 43.53% YoY to NT$1.66bn.

• Return on total assets (after tax) was 0.46%.

Outlook and guidance

• Global economic adjustment continues, with sticky inflation and limited Fed policy flexibility; Fed expected to cut rates by 50bps next year.

• Taiwan's AI and semiconductor sectors drive exports and investment, while traditional industries and housing remain weak.

• The bank continues to monitor the impact of new and upcoming IFRS standards, including IFRS 18 and amendments to IFRS 9 and IFRS 7.

• Liquidity and capital positions remain strong, with a liquidity reserve ratio of 29.33% as of September 30, 2025.