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 a year earlier, with diluted EPS of NT$1.78 and ROE of 16.3%, leading among peers.

• 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.

• Overseas business contributed 36% of the bank's pre-tax profit, with strong growth in Singapore, Tokyo, and India.

Financial highlights

• Group net profit for H1 2025 was NT$36.5 billion, down 4% year-over-year; EPS NT$1.78; ROE 16.3%; ROA 0.83%.

• CTBC Bank net profit up 20% year-over-year to NT$27.8 billion; Taiwan Life net profit down 44.8% to NT$7.2 billion.

• Total net revenue for H1 2025 was NT$109.5 billion, up from NT$91.1 billion year-over-year; net interest income up 10% year-over-year.

• Cost-to-Income Ratio improved to 51.9% in H1 2025.

• Trading income up 33% quarter-over-quarter, down 3% year-over-year.

Outlook and guidance

• NIM with swap expected to remain between 1.63%-1.66% for the full year.

• Loan growth expected to remain at double-digit levels for the full year, with Q3 momentum recovering.

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

• Regulatory capital ratios expected to remain above 125% after IFRS 17 and ICS adoption.

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