Taiwan Cooperative Financial Holding (5880) Q1 2024 earnings summary

Executive summary

• Consolidated net income for Q1 2024 was NT$5.38 billion, up from NT$5.04 billion in Q1 2023, with EPS rising to NT$0.36 from NT$0.33 year-over-year.

• Total assets reached NT$4.92 trillion as of March 31, 2024, a 6% increase from NT$4.63 trillion a year earlier.

• The group’s financial statements received an unqualified review from independent auditors.

Financial highlights

• Interest revenue rose 17% year-over-year to NT$25.16 billion, while interest expense increased 40% to NT$18.00 billion.

• Net interest income declined 17% to NT$7.16 billion, but non-interest revenues surged, notably gains on financial assets and liabilities at fair value (NT$15.38 billion vs. NT$1.10 billion in Q1 2023).

• Total net revenues increased 7% year-over-year to NT$15.80 billion.

• Operating expenses rose 6% to NT$7.53 billion.

• Net income attributable to owners was NT$5.24 billion, with total comprehensive income at NT$7.07 billion.

Outlook and guidance

• The company is monitoring the impact of new international accounting standards (IFRS 17, IFRS 18) and Pillar Two tax legislation in relevant jurisdictions.

• Management expects no material impact from Pillar Two tax changes as of Q1 2024.