E.SUN Financial Holding Company (2884) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached NT$8.81 billion, up 41% year-over-year, with EPS at NT$0.55 and ROE at 13.6%.

• Net fee income rose 40.6% year-over-year, with strong contributions from wealth management and credit card businesses.

• Overseas branches and subsidiaries continued to grow, with new approvals for branches in Toronto, Mumbai, and Dallas.

• Recognized for ESG and corporate governance, ranking in the top 5% for nine consecutive years and awarded Best Bank in Taiwan.

• Board resolved to pay a cash dividend of NT$1.20 and stock dividend of NT$0.10 per share, pending AGM approval.

Financial highlights

• Net revenue for Q1 2025 was NT$21.44 billion, up 22.6% year-over-year; net interest income grew 18% to NT$9.23 billion.

• Wealth management fee income increased 18.2% to NT$3.5 billion; credit card fee income up 8.8% to NT$1.9 billion.

• Loan balance reached NT$2.3 trillion, up 10.7% year-over-year; deposit balance up 10%.

• Book value per share rose to NT$16.47.

• Cost-income ratio improved to 47.5% from 52.1% last year.

Outlook and guidance

• Fee income expected to continue strong growth throughout the year.

• Moody’s upgraded credit ratings to A2 for FHC and A1 for the bank, highest among private sector peers.

• Board approved acquisition of a 91.2% stake in PGIM SITE for NT$2.76 billion, pending regulatory approval.

• NIM and spread forecasted to grow modestly by about 3 basis points, supported by funding cost management and yield curve normalization.

• Foreign currency loan growth expected to remain robust, driven by overseas demand and supply chain migration.