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 robust overseas and wealth management growth.

• Total assets rose to NT$3.93 trillion, up 9% year-over-year.

• Expanded international presence with new offices in Kumamoto and Kuala Lumpur, and applications/approvals for Toronto and Dallas branches.

• Hosted ESG sustainability initiatives for the fourth consecutive year, engaging over 160 corporations and government representatives.

• Independent auditors found no material misstatements in the financial statements.

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% year-over-year.

• 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, with record-high consumption.

• Cost-income ratio improved to 51.2%.

• Return on assets after tax was 0.74%; return on equity after tax was 11.51%.

• Net income attributable to owners was NT$20.90 billion; total comprehensive income was NT$29.46 billion.

Outlook and guidance

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

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

• Targeting FSLDR to reach 40% next year from current 37%.

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

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