Taiwan Cooperative Financial Holding (5880) Q2 2025 earnings summary

Executive summary

• Consolidated net profit after tax for H1 2025 was NT$10.01bn, down 3.63% year-over-year, with annualized ROE at 7.73% and ROA at 0.38%.

• Total assets grew 7.32% year-over-year to NT$5.273tn as of June 30, 2025.

• Core subsidiary TCB posted a 4.53% year-over-year increase in net profit after tax to NT$10.57bn, driven by higher net interest income.

• The group maintained a strong capital adequacy ratio of 127.51% as of June 30, 2025.

• Banking remained the main profit driver, while insurance and securities segments faced headwinds.

Financial highlights

• Consolidated net income after tax decreased 3.63% year-over-year to NT$10.01bn.

• Net interest income for the six months was NT$16.68bn, up from NT$14.31bn year-over-year.

• EPS after tax improved slightly to NT$0.65, up 1.56% year-over-year.

• Net revenue rose 10.97% year-over-year, while operating expenses increased 3.54%.

• Return on equity after tax was 7.73% for the group, compared to 8.38% in the prior year.

Segment performance

• TCB contributed 88.4% of group profits in H1 2025, with net profit after tax up 4.53% year-over-year.

• TCB's net interest income increased 15.76% year-over-year, while net fee income declined 11.39%.

• Wealth management income at TCB rose 7.3% year-over-year, led by insurance and custody/trust growth.

• Subsidiaries such as TCB Life and TCBF saw profit declines, with TCS reporting a net loss.

• Banking contributed NT$9.60bn in net income, bill finance NT$189m, insurance NT$607m, while securities and other segments posted losses.