CTBC Financial Holding Co (2891) Q4 2025 earnings summary

Executive summary

• Achieved record after-tax net profit of NT$82.33 billion in 2025, up 12% year-over-year, with EPS at NT$4.08 and ROE at 17.99%, leading peers.

• CTBC Bank contributed NT$57.3 billion in net profit, up 16% year-over-year, driven by robust loan and deposit growth, and strong fee income.

• Taiwan Life reported NT$20.85 billion net profit, down 3% year-over-year due to one-off FX reserve allocations, but first-year premiums grew 54%.

• Overseas business accounted for over 30% of CTBC Bank's profit, with strong growth in international branches.

• Group subsidiaries, including Taiwan Lottery, CTBC Securities, and CTBC Investments, posted 6% profit growth.

Financial highlights

• Net profit: NT$82.33 billion (+12% YoY); EPS: NT$4.08; ROE: 17.99%; ROA: 1.02%.

• CTBC Bank net profit: NT$57.3 billion (+16% YoY); Taiwan Life net profit: NT$20.85 billion (-3% YoY, adjusted +20%).

• Total loans grew 10.4% YoY, with foreign currency loans up 11% and deposits up 7% YoY to NT$5.7 trillion.

• Net interest income rose 22% YoY to NT$148.09 billion, fee income up 11% YoY, and FYP in life insurance up 54% YoY.

• NIM increased 16 bps YoY to 1.56% (adjusted NIM outlook for 2026: 1.7–1.73%).

Outlook and guidance

• Cautiously optimistic for FY2026, expecting continued loan and fee income growth in high single to low double digits.

• IFRS 17 adoption in 2026 expected to stabilize earnings, reduce first-year losses, and lower cost of liabilities.

• NIM projected to rise by 4–8 bps, with asset quality stable at 25–30 bps.

• Double-digit growth in new business CSM for Taiwan Life expected in 2026.

• Corporate loan growth anticipated to improve, leveraging overseas expansion.