CTBC Financial Holding Co (2891) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated net profit was NT$20.33 billion, down from NT$21.17 billion in Q1 2024, with diluted EPS of NT$1.02 and ROE of 17.3%.

• After-tax net profit reached NT$13.4 billion, up 11% YoY, mainly driven by banking operations.

• Taiwan Life contributed NT$5.6 billion in after-tax net profit, down 27% YoY due to a high base from last year; RBC ratio 326%.

• Total assets reached NT$8.98 trillion as of March 31, 2025, up from NT$8.38 trillion a year earlier.

• The independent auditor’s review found the financial statements present fairly, with an emphasis on ongoing judicial cases whose outcomes remain uncertain.

Financial highlights

• Net interest income rose to NT$35.52 billion, up 11% YoY; net non-interest income was NT$25.93 billion, up from NT$16.61 billion in Q1 2024.

• Net insurance income improved to a loss of NT$210 million from a loss of NT$10.92 billion last year.

• EPS for Q1 2025 was NT$1.02; full-year 2024 EPS was NT$3.64.

• Group CAR at 126%, Bank CAR 14.3%, CET1 ratio 11.7%.

• Cash dividend of NT$2.30 per share, 63% payout; dividend yield for 2024 was 6.2%.

Outlook and guidance

• NIM guidance unchanged at 1.63%-1.66% for the year; cost-income ratio guidance for banks at 52%-54%.

• Full-year loan growth expected to be double-digit; fee income growth guidance maintained at high single-digit.

• Credit cost guidance for the year at 25-30 basis points.

• The group continues to monitor the impact of new and upcoming IFRS standards, including IFRS 17 and IFRS 18.

• The company is actively managing climate-related risks and has updated risk management policies.