First Financial Holding (2892) Q2 2024 earnings summary

Executive summary

• Net income for the first half of 2024 reached a record TWD 13.73 billion, up 4.3% year-on-year, with EPS of 0.98, driven by strong banking profits, robust fee income, and growth in other subsidiaries.

• Bank subsidiary contributed TWD 12.8 billion, its best-ever half-year profit, supported by strong mortgage and corporate lending.

• Fee income offset declines in net interest income and swap gains, while credit costs normalized after offloading impaired CRE loans.

• Science Based Targets initiative validated net zero targets, committing to a 63% reduction in Scope 1 and 2 emissions by 2035.

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

Financial highlights

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

• EPS rose to 0.98; book value per share increased to TWD 18.13.

• Total assets grew to TWD 4.62 trillion as of June 30, 2024.

• Fee income rose 37.8% year-on-year, while net interest income declined 2.2%.

• Credit charge and insurance reserve dropped 23% year-on-year to TWD 3.3 billion.

Outlook and guidance

• Full-year loan book growth projected at 5%-5.5%, with mortgage lending at 12% and SME lending at 4%.

• FX lending growth revised down to 1%-2% due to delayed US rate cuts.

• Fee income target for 2024 is 30% year-on-year growth, after 40% growth in the first half.

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

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