Taiwan Cooperative Financial Holding (5880) Q2 2024 earnings summary

Executive summary

• Consolidated net income for the six months ended June 30, 2024 was NT$10.39 billion, up from NT$9.84 billion year-over-year, with basic EPS of NT$0.66 compared to NT$0.63 in the prior year.

• Total assets reached NT$4.91 trillion as of June 30, 2024, up from NT$4.63 trillion a year earlier.

• The group maintained a strong capital adequacy ratio of 117.88% as of June 30, 2024.

Financial highlights

• Net interest income for the six months was NT$14.31 billion, down from NT$16.61 billion year-over-year.

• Net revenues and gains other than interest rose to NT$17.75 billion from NT$13.74 billion year-over-year, driven by higher gains on financial assets at fair value.

• Total net revenues increased to NT$32.06 billion from NT$30.34 billion year-over-year.

• Operating expenses were NT$15.41 billion, up from NT$14.39 billion year-over-year.

• Return on equity (ROE) for the group was 8.38% (after tax), and return on assets (ROA) was 0.53% (after tax) for the period.

Outlook and guidance

• The group continues to monitor the impact of new accounting standards (IFRS 17, IFRS 18) and regulatory changes, with no material impact expected in the near term.

• Management is focused on maintaining capital adequacy and prudent risk management amid evolving market and regulatory conditions.