E.SUN Financial Holding Company (2884) Q2 2024 earnings summary

Executive summary

• Achieved record high net profit and net fee income in the first half of 2024, with net profit up 20.6% year-over-year and net fee income up nearly 30%.

• Strong performance in wealth management and credit card businesses, with credit card transactions reaching TWD 100 billion in June.

• Overseas expansion continues with new offices in Malaysia and upcoming branches in Japan and Canada; overseas subsidiaries and branches contributed 33.6% of total net profit in 1H24, up 12% YoY.

• Recognized for ESG efforts, included in the Dow Jones Sustainability Index for 10 consecutive years and received top 5% worldwide in S&P Sustainability Year Book.

• Consolidated financial statements for the six months ended June 30, 2024, were audited and present fairly in all material respects, in accordance with ROC regulations and IFRS standards.

Financial highlights

• Total assets reached NT$3,911.4 billion as of June 30, 2024, up from NT$3,557.4 billion a year earlier.

• Net revenue for the first half was NT$36.1 billion (+15.4% YoY); net profit was NT$12.7 billion (+20.6% YoY).

• Net interest income for 6M24 was NT$16,171.4 million (+15.5% YoY), and net fee income was NT$13.2 billion (+30.2% YoY).

• EPS was NT$0.81; ROE at 10.76%; ROA at 0.767%.

• Cost-to-income ratio improved to 53.1%; operating expense growth limited to 7.5%.

Outlook and guidance

• Revised full-year loan growth target to 12% and deposit growth to 10%.

• Net fee income growth expected between 20%-30% for the year, driven by wealth management.

• Mortgage loan growth to be mid- to high-single digits, with a prudent approach due to an overheated housing market.

• NIM expected to remain stable around 1.3% for the year, despite anticipated Fed rate cuts.

• Kumamoto Sub-Branch in Japan is scheduled to open in 4Q24, and a Kuala Lumpur Rep Office opened in July; application filed for a Toronto branch.