E.SUN Financial Holding Company (2884) Q3 2024 earnings summary

Executive summary

• Net income for the first nine months of 2024 reached a record NT$20.91 billion, with EPS at NT$1.31 and ROE at 11.51%, supported by diversified revenue streams and strong overseas and brokerage business performance.

• Total assets grew to NT$3.93 trillion, up from NT$3.59 trillion year-over-year.

• E.SUN Bank and E.SUN Securities achieved record net profits, with the bank up 39.7% and securities up 77% year-over-year.

• Expanded international presence with new offices in Kuala Lumpur and Kumamoto, and regulatory approval for Dallas office.

• Hosted ESG initiatives for the fourth consecutive year, engaging over 160 corporations and government representatives, and received multiple awards for digital banking, corporate banking, and ESG leadership.

Financial highlights

• Total net revenues for the first three quarters were NT$58.60 billion, up 21.6% year-over-year; net interest income was NT$24.89 billion, up 16.2%.

• Wealth management net fee income surged 42.9% to NT$9.8 billion; credit card fee income rose 10.3% to NT$5.8 billion.

• Cost-income ratio improved to 51.2% for the period.

• Third quarter net profit was NT$8.2 billion, marking five consecutive quarters of positive growth.

• Return on assets after tax was 0.74%.

Outlook and guidance

• Loan growth expected to remain at high single digits, with a positive outlook for wealth management and credit card fee income in 2025.

• Bancassurance to exceed 40% of wealth management fee income, providing stability against market volatility.

• NIM and spread forecasted to remain flat or slightly up in Q4, with room for loan yield adjustments.

• Continued focus on overseas expansion and sustainable finance, with ongoing recognition and awards.

• Monitoring impact of new IFRS standards and Pillar Two income tax legislation in Vietnam and Japan.