First Financial Holding (2892) Q4 2024 earnings summary

Executive summary

• Achieved record consolidated net profit of TWD 25.36 billion for 2024, up 13% year-on-year, with EPS at 1.81 and strong contributions from both banking and non-bank subsidiaries.

• Fee revenues, especially from wealth management, surged 34% year-on-year, while treasury gains rose 11%, offsetting lower interest income and higher operating expenses.

• Loan book grew 9.5% year-on-year to TWD 2.6 trillion, with broad-based expansion across mortgages, FX, and SME loans.

• Asset quality remains stable, with NPL ratio at 0.17% and coverage ratio near 820%.

• Strategic focus for 2025 includes capital build-up and navigating macroeconomic uncertainties, including US policy shifts and global supply chain changes.

Financial highlights

• Consolidated revenue rose 7% to TWD 72 billion, supporting profit growth despite higher costs.

• Net fee income up 34% year-on-year, driven by a 43% increase in wealth management revenue.

• Net interest income declined 4.6% due to higher funding costs, while net interest revenue rose 13% to TWD 31.23 billion.

• Operating expenses increased 6% year-on-year, reflecting pay hikes and higher business taxes.

• Total assets grew 6.2% to TWD 4.70 trillion as of December 31, 2024.

Outlook and guidance

• 2025 loan growth projected at 5%-6%, mainly from SME and FX lending.

• Fee income targeted to grow 7%-8%, with wealth management up 12%.

• Swap gains projected at TWD 12.5 billion, about 20% lower than 2024.

• Adjusted NIM expected at 1.03%, slightly below last year.

• Strategic focus on capital fortification and optimizing profitability amid global economic and policy uncertainties.