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Fubon Financial Holdings Eyes Robust Taiwan Economic Growth, Forecasts 3% in 2024

Fubon Financial anticipates Taiwan's robust economic growth, targeting a 3% rate in 2024 amid recovering global supply chains
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Fubon Financial Holdings anticipates a positive trajectory for Taiwan’s economic landscape in the fourth quarter and the coming year, with Chief Economist Luo Wei highlighting the gradual recovery of the global supply chain. This resurgence is expected to propel exports and private investment, fostering the prospect of Taiwan’s economic growth reaching 3% in 2024.

At the third-quarter earnings conference, Fubon Financial reported a commendable after-tax profit of 5.4 billion yuan in September, accumulating a total after-tax profit of 67.78 billion yuan for the first three quarters. Key financial metrics revealed total assets reaching 11.1 trillion yuan, with net worth at 737.4 billion yuan, reflecting an annual increase of 33.6%. The net value per common share stands at 49.3 yuan as of the end of September.

Discussing the dividend policy, Han Weiting, the general manager of Fubon Gold, emphasized a comprehensive consideration of overall business development, subsidiary profits, and dividend payment statuses. Underscoring fiscal strength, Fubon Gold retains an undistributed surplus exceeding 200 billion yuan as of the third quarter, with no plans to tap into capital reserves or statutory surplus reserves for dividends.

Chief Economist Luo Wei delves into Taiwan’s economic outlook, highlighting the resilience of domestic private consumption. As European and American companies replenish inventories and the global supply chain revives, Luo Wei projects a gradual improvement in China’s exports and private investment, potentially leading to a 3% economic growth rate in 2024. Reflecting on the U.S. Federal Reserve’s interest rate policies, Luo Wei anticipates preventive adjustments in mid-2024 to sustain economic growth and market liquidity. Fubon expresses strategic intent to increase investments in stocks and bonds opportunistically amidst evolving monetary policy trends.

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