First Financial Holding (2892) Q4 2024 earnings summary

Executive summary

• Net profit reached a record TWD 25.36 billion in 2024, up 13% year-on-year, with EPS at 1.81; First Bank contributed the majority of group profits, and both banking and non-bank subsidiaries saw strong growth.

• Fee income surged 34% year-on-year, mainly from wealth management, while treasury gains rose 11.1%, supported by robust capital markets and FX activities.

• Loan book expanded 9.5% year-on-year to TWD 2.6 trillion, with strong growth in mortgages (up 15%), large corporate, FX, and SME loans.

• Asset quality remained strong, with NPL ratio at 0.17% and coverage ratio near 820%.

• Consolidated financial statements received an unqualified opinion from independent auditors, confirming compliance with IFRS and local regulations.

Financial highlights

• Consolidated revenue rose 7% to TWD 72 billion, offsetting higher operating expenses; consolidated net income was TWD 25.36 billion (+12.9% YoY).

• Book value per share was 19.1; ROE at 9.82%, ROA at 0.56%.

• Group CAR at 126%, double leverage ratio close to 112%.

• Net interest income fell 4.6% year-on-year to TWD 28 billion 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.

Outlook and guidance

• 2025 loan growth projected at 5%-6%, mainly driven by SME and FX lending; mortgage growth expected to slow to 6%-7%.

• 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 down from 1.05% in 2024; credit cost for 2025 projected to decline to 18-19 bps.

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

• Adoption of new IFRS standards in 2024 had no significant impact; IFRS 17 for insurance contracts is expected to be implemented in the future.