Taipei, Sept. 11 (CNA) Fubon Financial Holding Co. was the most profitable of the 15 financial holding firms listed on the local equity market for the first eight months of this year, according to market statistics.
In the eight-month period, Fubon Financial raked in NT$122.35 billion (US$4.42 billion) in net profit, up 91 percent from a year earlier, with earnings per share (EPS) at NT$11.69, which was also the highest among the 15 financial holding firms.
The firm’s aggregate net profit in the eight months of 2021 topped the NT$90.27 billion that the firm had posted for the entire 2020. Market analysts attributed the increase largely to investment returns from booming equity markets worldwide.
In August alone, Fubon Financial raked in NT$16.17 billion in net profit, which also made the company the most profitable financial holding firm for the month, the statistics showed.
Fubon Life Insurance, the flagship insurance entity of Fubon Financial, saw its net profit soar 109 percent from a year earlier to NT$89.93 billion in the eight-month period, while Taipei Fubon Commercial Bank, the banking arm, posted NT$13.48 billion in net profit in the same period.
The life insurer made good use of hedging strategies to offset the impact from a stronger New Taiwan dollar, Fubon Financial said.
According to Fubon Financial, it booked about NT$260 million in profit from Jih Sun Financial Holding Co. in August, when it acquired a 56.92-percent stake in Jih Sun Financial. Fubon Financial has said it will acquire the remaining stake in Jih Sun Financial.
Cathay Financial Holding Co. came in second after posting NT$114 billion in net profit in the first eight months of this year, up 91 percent from a year earlier, with EPS at NT$8.35.
Among its major subsidiaries, Cathay Life Insurance benefited from higher investment returns and its efforts in cost control to boost its net profit by 124 percent from a year earlier to NT$94.49 billion in the eight-month period.
Its banking entity — United Cathay Bank — posted NT$16.7 billion in the same period. The net income was lower than a year earlier due to a relatively high comparison base over the same period last year on the back of growing investment returns, but Cathay Financial did not disclose how much the decline was.
In terms of EPS, CTBC Financial Holding Co. took the third spot with NT$2.14, ahead of Yuanta Financial Holding Co. (NT$2.13), China Development Financial Holding Co. (NT$1.56), Shin Kong Financial Holding Co. (NT$1.51), Taishin Financial Holding Co. (NT$1.41), Mega Financial Holding Co. (NT$1.32), First Financial Holding Co. (NT$1.17) and E. Sun Financial Holding Co. (NT$1.15).