Mega Financial Holding (2886) Q1 2024 earnings summary

Executive summary

• 1Q 2024 consolidated net profit reached NT$11.49 billion, up from NT$10.78 billion in 1Q 2023, with EPS at NT$0.80, a 4% increase year-over-year.

• Jan–Apr 2024 cumulative earnings rose 1% year-over-year to NT$13.99 billion.

• Total comprehensive income for Q1 2024 was NT$15.59 billion, compared to NT$15.31 billion in the prior year.

• The group completed a NT$10.16 billion capital increase to strengthen capital and support subsidiaries.

• Fee income and wealth management fees saw significant growth, supporting overall revenue expansion.

Financial highlights

• Net interest income for 1Q 2024 rose 2% year-over-year to NT$9.31 billion; net fee income surged 67% to NT$4.27 billion.

• Wealth management fee income jumped 36% quarter-over-quarter; total net fee income up 82% year-over-year.

• Net insurance revenue improved to NT$0.74 billion from a negative NT$2.21 billion in Q1 2023.

• Total assets as of March 31, 2024, were NT$4.48 trillion, up from NT$4.09 trillion a year earlier.

• Deposits and remittances grew to NT$2.91 trillion, up from NT$2.76 trillion year-over-year.

Outlook and guidance

• Strategic focus remains on corporate banking, digital transformation, sustainability, and capital strengthening.

• Dividend policy aims for a high payout ratio, with at least 50% in cash to balance capital needs and growth.

• Subsidiaries plan further capital increases and green bond issuances to support business growth and regulatory compliance.