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

Executive summary

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

• Net fee income and net revenue hit record highs, with net revenue at TWD 21.4 billion, up 22.6% year-over-year.

• E.SUN Bank contributed 94.5% of net income, with overseas branches and subsidiaries contributing 26.5% of total net profit.

• Asset quality remained strong, with NPL ratio at 0.14% and coverage ratio at 823%.

• Board proposed a cash dividend of TWD 1.2 and stock dividend of TWD 0.1 per share, pending AGM approval.

Financial highlights

• Net interest income grew 18% to TWD 9.23 billion; net fee income rose 12.5% to TWD 7.0 billion.

• Wealth management fee income increased 18.2% year-over-year; credit card fee income up 8.8%.

• Cost-income ratio improved to 47.5% for Q1 2025.

• Book value per share rose to TWD 16.47.

• Total assets reached TWD 4.12 trillion, up 10% year-over-year.

Outlook and guidance

• Expectation of continued strong fee income growth and modest NIM and spread improvement, supported by funding cost management and foreign currency loan growth.

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

• Board approved investment in a 91.2% stake in PGIM SITE, pending regulatory approval.

• Expense growth to be strictly controlled to single digits for the year.

• The company continues to monitor the impact of global tax reforms, with no current effect on Q1 2025 results.