Far Eastern International Bank has set a new precedent in financial performance for the first quarter of 2024, reaching a record high compared to the same period in prior years. The bank reported a net profit after tax of NT$486 million in March, which contributed to an outstanding cumulative first-quarter net profit of NT$1.241 billion. This represents a substantial 46.5% increase over the previous year, with earnings per share (EPS) reaching NT$0.31.
A notable single-month profit surge of 51% in March, compared to February, was attributed to fewer working days in the earlier month and a flourishing capital market in March. These conditions proved favorable for the bank’s financial investment and wealth management sectors. March’s profits alone soared more than 90% compared to the same month last year, propelling the first-quarter cumulative profits up by an impressive 46.5%.
Last year’s profitability trend continues into 2024 for Far Eastern International Bank, riding the wave of growth in personal financial management and French financial services. These sectors have been pivotal in driving the bank’s profit increase.
In its 2024 operating strategy, Far Eastern International Bank emphasizes balanced growth with solid capital foundation, exceeding the industry average in first-class common stock capital and overall capital adequacy. The consumer finance segment will focus on high-value mortgage loans and credit, aiming for a steady growth rate of approximately 2%. In its corporate finance division, the bank plans an assertive expansion into overseas lending, expected to outpace domestic growth. This expansion includes maintaining the scale of operations at its Hong Kong branch and developing opportunities within Greater China, including the establishment of a new branch in Singapore.
To enhance its profit structure, Far Eastern International Bank will adjust its asset and deposit portfolio, aiming to increase deposit spreads and diversify its sources of profit. There’s a strategic push to augment the share of profits from fees and investment transactions, targeting a balanced income composition where net interest contributes to 50%, fee-based income to 25%, and financial operations to 25%. Achieving this 2:1:1 income ratio will be key to the bank’s strategy for sustainable profit growth.
