CTBC Financial Holding Co (2891) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 reached NT$61.98 billion, up from NT$59.55 billion in 2024, setting a record high; EPS was NT$3.06 and ROE was 17.5%, leading industry peers.

• CTBC Bank achieved a record 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 FX volatility and hedging costs.

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

• Total assets reached NT$9,032.68 billion as of September 30, 2025.

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

Financial highlights

• Consolidated net profit for the first nine months was NT$60.8 billion, up 4% year-over-year; EPS at NT$3.06; ROE at 17.5%; ROA at 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.

• Cost-to-income ratio improved to 51.5% for the first nine months.

• Group CAR at 126%; Bank CAR at 14.7%; CET1 ratio at 11.2%.

• Dividend payout ratio remained above 60% in recent years.

Outlook and guidance

• NIM for Q3 with swap was 1.667; full-year estimate is 1.63–1.66, likely toward the higher end.

• Management expects continued strong capitalization and stable asset quality.

• Taiwan Life’s FYPs expected to remain robust, supported by investment-linked and traditional policies.

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

• Bank expects CET1 ratio to increase by 3% after IRB adoption next year.