Mega Financial Holding (2886) Q2 2025 earnings summary

Executive summary

• Net profit for 1H/2025 reached NT$18.19 billion, down 11% year-over-year, with Bills and CKI subsidiaries as key growth drivers.

• EPS for 1H/2025 was NT$1.23, a 13% decrease year-over-year.

• ROE recovered above 10% at 10.02% annualized for 1H/2025.

• Consolidated financial statements for the six months ended June 30, 2025, were audited and found to present fairly in all material respects in accordance with relevant regulations and IFRS.

• Key audit matters included impairment assessment of loans, fair value measurement of unlisted stocks, claims reserve estimation, and impairment of claims recoverable from reinsurers.

Financial highlights

• Consolidated net interest revenue grew 2% year-over-year to NT$18.97 billion for 1H/2025.

• Net fee and commissions increased 12% year-over-year to NT$1.71 billion.

• Trading gains declined 15% year-over-year; gain on financial assets and liabilities at fair value dropped 29%.

• Operating expenses fell 10% year-over-year.

• Total assets as of June 30, 2025, were NT$4,572.9 billion, slightly down from NT$4,671.6 billion at December 31, 2024.

Outlook and guidance

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

• Adoption of IFRS 17 for insurance contracts is expected from January 1, 2026, with limited financial impact due to the predominance of short-term policies.

• Amendments to IFRS 9 and IFRS 7 will affect classification, measurement, and disclosure of financial instruments from 2026.