CTBC Financial Holding has disclosed a remarkable rise in profits for April 2024, posting an after-tax profit of NT$5.107 billion, a 50% increase compared to NT$3.392 billion during the same period last year. This surge is primarily attributed to the exceptional performance of its subsidiary, Tai Life, which experienced a significant uptick in profits due to favorable currency exchange rates and gains from stock disposals.
For the first four months of the year, CTBC Financial’s consolidated after-tax surplus reached NT$26.027 billion, marking a 60% increase year-over-year, with earnings per share rising to NT$1.33. This robust growth is further supported by steady wealth management activities and an expansion in the banking business, particularly in deposit scale and wealth management sales, which collectively pushed the banking after-tax profit to NT$14.75 billion, a modest 5% increase from last year’s NT$14.1 billion.
However, the banking sector faced some challenges as China Trust Bank, another subsidiary, reported a lower profit of NT$2.637 billion for April, down from the preceding months, due to increased provisions set aside as per regulatory requirements.
Tai Life, on the other hand, has been a significant growth driver, reporting a single-month after-tax profit of NT$2.224 billion in April—a substantial increase from NT$635 million in the same period last year. This was largely fueled by the appreciation of the U.S. dollar, enhancing exchange benefits and resulting in a 41-fold increase in its cumulative after-tax profit over the first four months to NT$9.879 billion, compared to a loss of NT$247 million last year.
The insurance segment also showed strong performance, with first-year premiums rising by 42% year-over-year. The continued appreciation of the U.S. dollar has alleviated much of the hedging cost pressures, contributing to significant capital gains from stocks and bonds, thereby boosting overall profitability for CTBC Financial in a remarkable fiscal period.
