Hua Nan Financial Holdings (2880) Q3 2024 earnings summary

Executive summary

• Net profit for 9M24 reached NT$17.85 billion, up 5.7% year-over-year, with EPS at NT$1.30 and annualized ROE at 11.17%.

• Total comprehensive income for the period reached NT$26.92 billion, a significant increase from NT$18.90 billion in the prior year.

• Subsidiaries delivered strong results: HNCB net profit up 4.0% YoY, HNSC up 41.8% YoY, and SCIC up 78.7% YoY, all surpassing FY23 earnings.

• Group maintained robust asset quality and capital structure, with NPL ratio at 0.15% and coverage ratio at 837.31% as of Sep 2024.

• The independent auditor's review found the financial statements present fairly, in all material respects, the financial position and performance.

Financial highlights

• Total assets grew 10.6% YoY to NT$4.20 trillion as of Sep 2024.

• Book value per share increased 10.5% YoY to NT$15.85.

• Net interest income for the nine months was NT$19.45 billion, slightly down from NT$20.88 billion year-over-year.

• Net revenues other than interest increased to NT$31.66 billion from NT$24.09 billion year-over-year.

• HNCB’s net profit for 9M24 was NT$16.26 billion, driven by treasury income (+25.8% YoY) and net fee income (+37.3% YoY), despite a 6.6% YoY decline in net interest income.

Outlook and guidance

• Plans to optimize corporate loan mix, expand SME lending, and strengthen cross-selling and digital transformation.

• Focus on customer-centric investment advice, digital channel enhancements, and exclusive finance ecosystem.

• The group continues to monitor the impact of global economic conditions, including interest rate and inflation volatility, and is prepared to adjust strategies as needed.

• Ongoing focus on risk management, capital adequacy, and sustainable growth.

• HNSC to promote new trading app features and strengthen underwriting business.