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%, driven by strong banking and insurance contributions.

• CTBC Bank contributed NT$57.3 billion in net profit, up 16% year-over-year, with robust loan and deposit growth and strong fee income; Taiwan Life posted NT$20.85 billion net profit, down 3% year-over-year due to FX reserve allocation, but FYP surged 54%.

• Total assets reached NT$9.33 trillion at year-end 2025, a 6% increase from 2024.

• Overseas business accounted for over 30% of CTBC Bank's profit, with strong growth in international branches and continued expansion in overseas banking and FCY lending.

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

Financial highlights

• Group revenue increased 12% year-over-year; net interest income grew 22%, fee income up 11%, and net insurance income rebounded to NT$15.60 billion.

• Total loans grew 10.4% year-over-year, led by foreign currency loans, mortgages, and unsecured personal loans.

• FYP in life insurance surged 54% year-over-year, with total premiums up 20% and strong growth in bancassurance and investment-linked products.

• Group CAR at 125.07%, life RBC ratio at 359%, bank CAR at 14.58%, and CET1 at 11.14%.

• Asset quality stable: NPL ratio at 0.5%, NPL coverage at 313%.

Outlook and guidance

• Cautiously optimistic for FY 2026, expecting high single- to double-digit loan growth and similar fee income growth.

• IFRS 17 adoption in 2026 expected to stabilize earnings, reduce first-year losses, and lower cost of liabilities; projected to increase owners’ equity by NT$41.9 billion at transition, but decrease by NT$14 billion after asset redesignation.

• Double-digit growth targeted for new business CSM in 2026; recurring yield for Taiwan Life estimated at 3.5%.

• Foreign currency and NTD loan growth expected to be similar, with LDR slightly higher than 2025.

• Management expects continued loan and asset growth, with stable credit quality and prudent risk controls.