Hua Nan Financial Holdings (2880) Q1 2024 earnings summary

Executive summary

• Net profit for 1Q24 reached NT$5.634 billion, up 12.7% year-over-year, driven by strong subsidiary performance and robust capital market activity.

• EPS for 1Q24 was NT$0.41, with annualized ROE at 10.60% and ROA at 0.56%.

• Total comprehensive income for Q1 2024 reached NT$9.64 billion, compared to NT$8.17 billion in Q1 2023.

• Total assets surpassed NT$4 trillion, reaching NT$4.15 trillion as of March 31, 2024.

Financial highlights

• Consolidated net income for 1Q24 increased 12.7% YoY to NT$5.634 billion.

• EPS rose 10.8% YoY to NT$0.41; book value per share up 12.7% YoY to NT$15.94.

• Net interest income for Q1 2024 was NT$6.21 billion, down from NT$7.50 billion year-over-year.

• Net revenues other than interest increased to NT$10.12 billion from NT$6.77 billion year-over-year.

• HNCB net profit grew 8.2% YoY to NT$5.046 billion; HNSC net profit surged 122.7% YoY to NT$0.490 billion; SCIC net profit up 122.9% YoY to NT$0.399 billion.

Outlook and guidance

• Focus on optimizing corporate loan composition, deepening SME engagement, and enhancing digital channels.

• Wealth management to target high-asset customers and retirement planning.

• HNSC to promote digital trading platforms and improve underwriting business.

• SCIC to expand high-quality business, optimize online insurance, and diversify risks.

• The group continues to monitor macroeconomic risks, including interest rate and inflation volatility, and is adjusting risk management and capital allocation accordingly.