Reported about 1 year ago
As of May 2024, Cathay Financial Holdings (2882) reported a net profit after tax of NTD 78.8 billion for May and a total net profit after tax of NTD 588.1 billion, doubling last year's earnings and exceeding the full-year level of 2023. However, it was overtaken by Fubon Financial which earned nearly NTD 600 billion, ranking second in the financial industry. Cathay Financial attributed its strong performance to robust core business momentum in its subsidiaries, with Cathay Life Insurance achieving the second-highest net profit after tax in its history. Cathay United Bank, Cathay Property Insurance, Cathay Securities, and Cathay Asset Management all achieved record-high net profits after tax. Cathay Life Insurance's success in May was due to capital gains and regular income contributions, as well as stable investment operations amidst positive trends in the capital market. The company strategically capitalized on factors such as foreign capital inflows and increased demand for foreign exchange by exporters, resulting in a monthly appreciation of the New Taiwan Dollar against the US Dollar. Despite ongoing hedging cost pressures, overall profit performance remained strong. In May, the net asset value rose by over 8%, and the RBC ratio exceeded 300%. Cathay United Bank achieved a 13% annual growth in net profit after tax, benefiting from the central bank rate hikes and strong lending momentum. The bank's ongoing focus on high-rate assets and continued investment in foreign currency securities led to double-digit growth in net interest income. Strong performance in terms of premium sales and increased overseas credit card transactions contributed to significant net fee income. The flagship credit card product CUBE card attracted new customers, with a total circulation of over 6 million cards and a strong card activation rate. By the end of May, the non-performing loan ratio was 0.12%, with a bad debt coverage ratio of 1403%, maintaining sound asset quality. Cathay Property Insurance reported a net profit after tax of NTD 0.3 billion in May and a total net profit after tax of NTD 10 billion, achieving a new high in the same period. In May, Cathay Securities achieved a net profit after tax of NTD 5.8 billion and a total net profit after tax of NTD 17.5 billion, setting a new historical high in profits for the same period thanks to the domestic economic recovery and steady growth momentum in the Taiwan Stock Exchange. By the end of May, Cathay Securities' cumulative market share in Taiwan Stock Exchange reached 4.03%, and the cumulative amount of investments in regular Taiwan Stock Exchange accounts exceeded NTD 23 billion, both marking historical highs for the same period. Cathay Asset Management recorded a net profit after tax of NTD 1.9 billion in May and a total net profit after tax of NTD 9.6 billion, representing a 43% annual growth with total management assets reaching NTD 1.85 trillion.
Source: YAHOO