CTBC Financial Holding Co (2891) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months reached NT$61.98 billion, up from NT$59.55 billion a year earlier, with EPS at NT$3.06 and ROE at 17.5%, leading industry peers.

• CTBC Bank achieved a record after-tax net profit of NT$42.1 billion, up 16% year-over-year, while Taiwan Life Insurance's net profit was NT$17.7 billion, down 16% year-over-year due to higher hedging costs.

• Overseas business contributed 34% of bank profits, with strong performance in Southeast and Northeast Asia.

• The group maintained strong capital adequacy and liquidity, with a group capital adequacy ratio above 100%.

• Total assets reached NT$9,032,681,891 thousand as of September 30, 2025.

Financial highlights

• Consolidated net profit for the first nine months was NT$61.98 billion, up 4% year-over-year, marking a record high.

• EPS was NT$3.06; ROE was 17.5%; ROA was 0.92%.

• Net interest income for the nine months was NT$108.68 billion, up from NT$98.60 billion year-over-year; net non-interest income was NT$65.28 billion.

• Total revenue increased 2% quarter-over-quarter and 9% year-over-year; net interest income rose 21% year-over-year.

• Fee income grew 10% year-over-year, with wealth management fees up 9% and corporate business fees up 20%.

Outlook and guidance

• NIM with swap in Q3 was 1.667%; full-year NIM expected between 1.63% and 1.66%, likely toward the higher end.

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

• Management expects continued strong capitalization and stable asset quality.

• Dividend payout ratio expected to remain at 60% next year, in line with previous years.

• Hedging cost for Taiwan Life estimated at 1.1%-1.2% for next year.