Fubon Financial (2881) Q4 2023 earnings summary

Executive summary

• 2023 net income was NT$65,042,302 thousand; EPS was NT$4.80.

• Total comprehensive income reached NT$261,011,794 thousand, versus a loss of NT$349,743,683 thousand in 2022; total assets were NT$11,106,312,242 thousand and total equity NT$816,605,825 thousand at year-end.

Financial highlights

• Net revenue was NT$167,798,693 thousand, down from NT$259,458,299 thousand; income before tax rose to NT$74,443,839 thousand from NT$60,945,652 thousand.

• Net interest revenue increased to NT$169,017,304 thousand from NT$165,211,939 thousand; interest revenue rose to NT$271,677,108 thousand while interest expense increased to NT$102,659,804 thousand.

• Overlay accounting reclassified NT$112,342,809 thousand of 2023 gains from profit or loss to OCI, versus NT$(271,713,855) thousand in 2022.

• ROA rose to 0.60% from 0.45%, and ROE to 9.65% from 6.19%.

Outlook and guidance

• Life priorities include regular-paid and protection products with higher CSM, broader distribution channels, and preparation for IFRS 17 and ICS adoption.

• Banking priorities include improving spreads, expanding wealth-management cross-selling, optimizing digital and branch channels, and growing card-market position.

• Insurance and securities priorities include stronger risk management, digital service improvements, sustainable products, and expansion in brokerage and wealth management.

• Strategic focus includes Taiwan and Asia, post-merger customer growth, fintech applications, and M&A or alliances to expand scale.