CTBC Financial Holding Co (2891) Q2 2025 earnings summary

Executive summary

• Net profit for H1 2025 was NT$36.5 billion, down from NT$37.8 billion the previous year, with diluted EPS of NT$1.78 and ROE leading peers at 16.3%.

• CTBC Bank contributed NT$27.8 billion in net profit, up 20% year-over-year, while Taiwan Life's net profit was NT$7.2 billion, down 44.8% year-over-year due to FX volatility and higher hedging costs.

• Total assets reached NT$8.83 trillion as of June 30, 2025.

• The group maintained a strong capital adequacy ratio of 115.79% as of June 30, 2025.

Financial highlights

• Net interest income for H1 2025 was NT$71.3 billion, up 10% year-over-year; net non-interest income was NT$38.2 billion.

• EPS was NT$1.78; DPS for 2024 was NT$2.30.

• ROE was 16.3%, ROAA 0.83%, and ROA 0.8%.

• NIM for H1 was 1.63%; cost-to-income ratio at 51.9%.

• Group CAR at 115.79%, Life RBC ratio at 305%, Bank CAR at 13.8%, CET1 at 10.9%.

Outlook and guidance

• NIM with swap expected to remain between 1.63%-1.66% for the full year; book NIM expected to widen as swap impact declines.

• Loan growth expected to remain at double-digit level for the full year; corporate loan momentum recovering in Q3.

• Additional FX reserves of NT$15.1 billion were taken in July to withstand currency volatility.

• The group is preparing for IFRS 17 adoption in 2026, impacting insurance contract accounting.