First Financial Holding (2892) Q2 2024 earnings summary

Executive summary

• Net income for H1 2024 reached a record NT$13.73 billion (TWD 13.7 billion), up 4.3% year-on-year, with EPS at NT$0.98, driven by strong banking profits, robust fee income, and growth in other subsidiaries.

• Bank subsidiary delivered its best-ever half-year profit at NT$12.8 billion, supported by mortgage and fee income.

• Group-wide net zero targets were validated by SBTi in June 2024, aiming for significant GHG emission reductions by 2035.

• Loan book expanded by 8.1% year-on-year, led by robust mortgage and large corporate lending, while SME and FX lending showed slower growth.

• The audit opinion was unqualified, confirming fair presentation of financial position and performance.

Financial highlights

• Consolidated revenue reached NT$36 billion, up 2.5% year-on-year; consolidated net income increased 4.3% to NT$13.73 billion.

• EPS rose 4.3% to NT$0.98; book value per share increased to NT$18.13.

• Total assets grew 8.4% year-on-year to NT$4.62 trillion.

• Fee income rose 37.8% year-on-year to NT$6.21 billion, while net interest income declined 2.2% to NT$15.83 billion.

• Operating expenses rose 9% year-on-year; cost-to-income ratio at 44.18%.

Outlook and guidance

• Full-year loan book growth projected at 5%-5.5%, with mortgage lending at 12%, SME at 4%, and FX lending revised down to 1%-2%.

• Fee income target for 2024 is 30% YoY growth, after 40% growth in H1.

• Adjusted NIM forecast for 2024 is 1.03%-1.05%, with minimal impact from expected Fed rate cuts.

• Credit cost target maintained at 15 bps for 2024.

• The group continues to monitor macroeconomic and regulatory changes, with no significant changes in risk management or capital policies.