Cathay Financial Holdings has posted an impressive after-tax profit of NT$13.74 billion for April 2024, with its cumulative profit for the year reaching NT$50.94 billion—marking the second highest in the company’s history. The robust financial performance is mirrored across its subsidiaries, which all reported record highs in cumulative after-tax earnings. This includes Cathay Pacific Bank, Cathay Property & Casualty Insurance, Cathay Securities, and Cathay Investment Trust.
Cathay Life was a significant contributor with an after-tax profit of NT$10.4 billion in April alone, reflecting strong capital gains, successful foreign exchange operations, and consistent recurring income. Despite market pressures from higher U.S. bond interest rates and stock market volatility—fueled by unexpected U.S. inflation data and the Federal Reserve’s hawkish stance—Cathay Life effectively managed its investments and benefited from favorable currency exchange conditions.
Cathay Pacific Bank reported a robust year-on-year growth of 12%, with after-tax profits reaching NT$3.05 billion in April, driven by high interest rates and strong sales in wealth management products. Cathay Property & Casualty also highlighted its resilience with a cumulative after-tax surplus of NT$960 million, effectively managing potential losses from the recent 0403 Hualien earthquake through strategic reinsurance.
Cathay Securities saw a significant profit surge with a 104% increase in its cumulative after-tax profit, reaching NT$1.18 billion, buoyed by the domestic economic recovery and bullish Taiwan stock market. Meanwhile, Cathay Investment Trust’s assets under management grew to NT$1.79 trillion, with profits boosted by investor shifts towards ETFs amid the escalating Israeli-Iraq conflict and global market volatility.
Overall, Cathay Financial Holdings maintains a strong capital position and solvency, with a net worth ratio over 8% and an RBC ratio well above 300%, positioning it well to navigate future market dynamics.
