CTBC Financial Holding Co (2891) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months of 2024 reached NT$59.5 billion, up 21% year-over-year, setting a record high and surpassing major peers, with strong contributions from banking and insurance segments.

• EPS for the period was NT$2.95 and ROE reached up to 20.24%, both at historical highs.

• Total assets reached NT$8.69 trillion as of September 30, 2024.

• Robust capital adequacy and liquidity positions were maintained, with group CAR at 123%.

• Profit growth was driven by sustained fee income, trading income, and strong subsidiary performance.

Financial highlights

• Net interest income for nine months was NT$98.6 billion; fee income grew 40.7% year-over-year to NT$31.4 billion.

• Net non-interest income rose to NT$42.7 billion, up from NT$8.3 billion in the prior year period.

• Operating expenses increased to NT$69.7 billion, up from NT$63.6 billion year-over-year.

• Cost-to-income ratio improved to 52% for the first nine months.

• Trading, derivatives, and FX income reached NT$53.9 billion, up 60% year-over-year.

Outlook and guidance

• Management expects continued growth in core banking and insurance operations, supported by strong fee and trading income and robust asset quality.

• Dividend distribution for next year is expected to be optimistic, pending final calculations.

• Adoption of new IFRS standards is not expected to have a significant impact on future financial statements.