Shin Kong Financial (2888) Q4 2023 earnings summary

Executive summary

• 2023 consolidated after-tax loss was NT$7.324bn, while total comprehensive income reached NT$33.704bn; total assets were NT$4.953tn and shareholders’ equity rose 16.0% YoY to NT$246.08bn.

• Bank and securities businesses were profitable, with net income of NT$6.79bn and NT$2.50bn; the life business recorded a NT$17.11bn loss amid lower investment gains and NT$34.18bn in hedging costs.

Financial highlights

• Consolidated EPS was NT$-0.48 versus NT$0.10 in 2022; total comprehensive income compared with a NT$57.012bn loss in 2022.

• Bank net revenue increased 5.6% YoY to NT$20.00bn; pre-provision operating income rose 3.1% to NT$9.45bn, and fee income grew 10.1% to NT$3.54bn.

• Securities revenue rose 70.0% YoY to NT$8.79bn; proprietary trading income was NT$3.20bn and brokerage income grew 6.7% to NT$5.19bn.

Segment performance

• Life FYP declined 27.6% YoY to NT$38.859bn, while FYPE grew 3.8% to NT$20.01bn; FYPE/FYP was 51.5%. FX policies generated NT$21.53bn, or 55.4% of FYP.

• Life achieved its NT$30bn annual CSM accumulation target in 2023; total premiums fell 11.6% to NT$167.5bn, with FX-policy premiums of NT$75.74bn, or 45.2% of total premiums.

• Bank loans rose 7.0% YoY to NT$807.134bn; consumer loans grew 7.3% to NT$500.39bn and SME loans increased 11.0%.

• Bank wealth-management income rose 10.5% YoY to NT$2.84bn; related bancassurance fee income increased 19.8%.

• Securities brokerage market share was 3.43%, ranking sixth; securities ROE rose to 8.94% from 1.32% in 2022.