CTBC Financial Holding General Manager Chen Jia-wen expressed optimism about achieving record-high profits this year, which would facilitate higher dividends for shareholders. Speaking at a press conference, Chen dismissed speculation about a formal merger agreement with Shin Kong Gold but acknowledged that mergers and acquisitions remain on the table for CTBC Bank if they enhance efficiency and profitability.
In the first quarter of 2024, CTBC Financial reported a pre-tax profit of NT$25.54 billion and a cumulative after-tax profit of NT$20.92 billion. The firm achieved an after-tax return on equity (ROE) of 19.65% and a return on assets (ROA) of 1.02%. Earnings per share (EPS) stood at NT$1.07. Chen remains cautiously optimistic about maintaining double-digit profit growth throughout the year.
Chen highlighted CTBC Financial’s robust dividend performance, attributed to a record-high after-tax net profit in 2023 and a reversal of nearly NT$40 billion in financial asset evaluation losses. This led to a decision to pay NT$1.8 per share in cash dividends.
Addressing market rumors, Chen emphasized that while no formal contacts have been made with Shin Kong Financial’s management, CTBC Financial continues to explore potential mergers, focusing on acquiring a “good and big bank” to expand its branch network and meet customer needs.
CTBC Bank’s consolidated after-tax profit for the first quarter of 2024 reached NT$12.11 billion, driven by strong growth in wealth management, corporate finance, and credit card businesses. The bank’s overdue loan ratio was stable at 0.54%, with a coverage rate of 298%.
Taiwan Life, a CTBC subsidiary, reported significant profit increases due to favorable investment conditions and a diversified product strategy in the insurance sector. The appreciation of the US dollar in early 2024 also eased hedging costs, boosting the company’s financial performance.
