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Union Bank Of Taiwan Announces Strong 2023 Financials and Generous Dividend Plan

Surpassing previous year's profits, Union Bank sets a robust dividend strategy, reinforcing its commitment to shareholder value amidst business growth
Taiwan
u 2838.TW Mid and Small Cap 2000
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Union Bank Of Taiwan, a prominent player in the banking sector, conducted its board meeting on March 11, where it approved the 2023 financial report, showcasing a remarkable net profit of 4.317 billion yuan and an EPS of 1.02 yuan. Demonstrating its commitment to shareholder returns, the bank has declared an attractive dividend distribution plan, comprising a 0.2 yuan cash dividend and a 0.7 yuan stock dividend for common shares, alongside a 2.56 yuan cash dividend for special shares.

The dividend yield, calculated from the bank’s closing price of 14.85 yuan, signifies a yield exceeding 6%, a testament to the bank’s robust financial health and its strategy to maximize shareholder value. This year’s dividend policy marks a continuation of the bank’s tradition of rewarding shareholders with both cash and stock dividends, reflecting a steady growth trajectory and a strong commitment to its investors.

Union Bank’s financial performance in 2023 outshone the previous year, with a notable 22% increase in net profits from 3.539 billion yuan in 2022. The board has strategically chosen to bolster the bank’s financial structure by converting the 2023 surplus and employee compensation into capital, resulting in the issuance of new shares worth an estimated 2.645 billion yuan.

The bank’s consistent policy of dual dividends is indicative of its stable and reliable financial standing, aligning with its historical practices, including the previous year’s distribution based on an EPS of 0.85 yuan.

On the operational front, Union Bank Of Taiwan witnessed a steady expansion across its various business segments in 2023, with total assets nearing the trillion-yuan milestone. The bank is setting its sights on 2024 with a strategic focus on enhancing its domestic offerings, including deposits and credit card services, while also eyeing lucrative opportunities in overseas markets, particularly with the anticipated economic uplift from Vietnam’s stock market evolution.

Union Bank’s forward-looking strategies and solid financial results underline its position as a formidable entity in the banking industry, poised for continued growth and committed to delivering substantial value to its shareholders.

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