KGI Financial Holding Co (2883) Q3 2024 earnings summary

Executive summary

• Net income for the first nine months of 2024 surged 66% year-over-year to NT$29.14 billion, with EPS up 63% to NT$1.71 and ROAE at 13.7% annualized, driven by strong performance in Securities and Life Insurance subsidiaries.

• Total assets grew 6% to NT$3.94 trillion, and equity attributable to the parent company increased 30% to NT$306 billion.

• All major subsidiaries, including KGI Life, KGI Bank, and KGI Securities, posted significant profit and revenue growth.

• Total comprehensive income for the period reached NT$51.98 billion, compared to NT$26.43 billion in the prior year.

• Name change to KGI Financial Holding Co., Ltd. was completed in July/August 2024.

Financial highlights

• Consolidated net revenue rose 37% year-over-year to NT$51.92 billion for the first nine months.

• Income before tax increased 75% to NT$35.4 billion, and net profit before income tax for the nine months was NT$35.40 billion.

• KGI Life net income jumped 78% to NT$20.1 billion, KGI Bank net income rose 2% to NT$4.3 billion, and KGI Securities net income climbed 51% to NT$8.1 billion.

• Brokerage fee income in Securities grew 39% year-over-year; investment income up 46%.

• Bank net revenue for the first three quarters was NT$11.9 billion, up 16% year-over-year, driven by 44% growth in fee income.

Outlook and guidance

• Management remains cautiously optimistic for 2025, expecting a steep yield curve and inflation pressure in the second half.

• Strategic focus remains on expanding private assets, strengthening insurance profitability, accelerating group growth, and maximizing business synergies.

• Continued emphasis on sustainable growth, digital transformation, and ESG leadership.

• The independent auditor’s review concluded that the financial statements present fairly, in all material respects, the consolidated financial position and performance.