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 30% year-over-year.

• Net revenue for 1H24 reached NT$36.1 billion, up 15.4% year-over-year, and EPS was NT$0.81.

• Overseas subsidiaries and branches contributed 33.6% of total net profit in 1H24, with overseas profit up 12% year-over-year.

• Asset quality remained strong, with an NPL ratio of 0.16% and coverage ratio at 775.7%.

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

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 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).

• Book value per share as of June 2024 was NT$15.10.

• Cost-to-income ratio improved to 53.1%.

• E.SUN Bank contributed about 90% of profit; E.SUN Securities contributed 8.2%.

Outlook and guidance

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

• Net fee income growth expected to surpass 20%, possibly reaching 20%-30% for the full year.

• Wealth management fee income growth expected to exceed 30% for the full year.

• Kumamoto Sub-Branch in Japan scheduled to open in 4Q24; application filed for Toronto branch.

• The group continues to monitor the impact of new IFRS standards and Pillar Two tax legislation in overseas markets.