First Financial Holding (2892) Q2 2025 earnings summary

Executive summary

• Net profit for 1H25 increased 1.6% year-over-year to NT$13,946 million, with EPS at NT$0.97, mainly driven by strong banking performance.

• Consolidated financial statements for the six months ended June 30, 2025, were audited and present fairly in all material respects in accordance with relevant regulations and IFRS.

• First Bank contributed NT$13,807 million in net income (+7.9% YoY), while non-bank subsidiaries saw a 38.9% YoY decline.

• Core revenue growth and subdued credit costs supported earnings, despite higher compensation expenses.

• The audit identified key matters: impairment assessment of loans, fair value measurement of unlisted stocks, and insurance liabilities.

Financial highlights

• Consolidated net income rose to NT$13,946 million (+1.6% YoY); comprehensive income dropped 51.9% YoY to NT$8,409 million.

• Total assets increased 4.1% YoY to NT$4,808,110 million as of June 30, 2025.

• EPS improved 2.1% YoY to NT$0.97; book value per share up 0.8% YoY.

• Net interest revenue for the six months was NT$16,406 million, up from NT$15,825 million year-over-year.

• Group CAR strengthened to 129.84% (+7.4% YoY).

Outlook and guidance

• Loan growth steadied at 5.0% YoY, with mortgages up 10.0%, large corporate loans up 7.5%, and SME lending up 1.7%.

• FX loans declined 2.5% due to exchange rate effects, but dollar-term balances grew 8.0% YoY.

• The Group will adopt IFRS 17 for insurance contracts in 2026, expected to reduce insurance contract liabilities and increase equity.

• Amendments to IFRS 9 and IFRS 7 will require enhanced disclosures and may impact classification and measurement of financial instruments.