Mega Financial Holding (2886) Q1 2025 earnings summary

Executive summary

• Net profit for 1Q 2025 reached NT$8.01 billion, down from NT$11.49 billion in Q1 2024, with consolidated profit down 30% year-over-year due to lower trading gains and higher provisions.

• Loan growth remained robust at 6.7% YoY, driven by large corporate and mortgage lending.

• Wealth management and credit fee income saw strong double-digit growth, supporting fee income expansion.

• Total assets as of March 31, 2025, reached NT$4.66 trillion, up from NT$4.48 trillion a year earlier.

• The audit review found no material misstatements and confirmed compliance with local and international reporting standards.

Financial highlights

• Consolidated net revenue for 1Q 2025 was NT$22.09 billion, down 2% YoY; net interest income was stable at NT$9.53 billion, up 2.4% YoY, but non-interest revenue fell 29%.

• EPS for 1Q 2025 was NT$0.54, a 31% decrease YoY.

• Cash dividend for 2024 proposed at NT$1.6 per share, with a payout ratio of 100%.

• Operating expenses increased to NT$8.78 billion, up 3.3% year-over-year.

• Total comprehensive income for Q1 2025 was NT$12.03 billion, compared to NT$15.59 billion in Q1 2024.

Outlook and guidance

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

• Management expects continued loan growth, especially in large corporate and mortgage segments.

• The group expects limited financial impact from the adoption of IFRS 17 in 2026 due to the predominance of short-term insurance contracts.

• Capital adequacy and liquidity remain strong, with ongoing capital increases and scenario testing supporting resilience.