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Fubon Financial Reports 117.5% Surge in Q1 Net Profit to NT$30.41 Billion

General Manager Highlights Key Variables for Second Half of 2024: US Fed Policy, Chinese Economy, and US Presidential Election
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Fubon Financial Holding Co., Ltd. (Fubon Financial) announced a significant increase in its first-quarter net profit, which reached 30.41 billion yuan, marking an annual growth of 117.5%. Earnings per share (EPS) stood at NT$2.34, placing Fubon Financial second in the industry. General Manager Harn Wey-Ting emphasized the need to monitor three major variables in the second half of the year: the US Federal Reserve’s interest rate policy, the Chinese economy, and the US presidential election.

Han highlighted the importance of the US Fed’s interest rate decisions and their impact on inflation, economic growth, and employment. Additionally, China’s economic conditions and the outcomes of the US presidential election could significantly influence policy implementations and market dynamics.

Fubon Financial reported robust performance metrics as of March 2024, with total assets exceeding NT$11.5 trillion, reflecting an 8.4% year-on-year increase. The net value rose by 25.7% to NT$896.5 billion, and the net value per ordinary share was NT$61.51. The return on assets (ROA) and return on equity (ROE) were 1.08% and 14.32%, respectively.

Fubon Life, a subsidiary of Fubon Financial, achieved a net profit after tax of NT$17.46 billion, driven by a 18.0% year-on-year increase in first-year premiums (FYP). Fubon Life’s sales channels, primarily through bancassurance, accounted for 46% of total sales, ranking first in the industry.

Investment strategies for Fubon Life have shown a favorable trend, with an increased allocation in both domestic and foreign stock positions. The total investment assets reached NT$4,993.4 billion by the end of March 2024. Rising interest rates and US dollar appreciation contributed to an 8.6% annual increase in recurring investment income and a 96.6% rise in capital gains, resulting in a 4.62% post-hedging investment return.

Taipei Fubon Bank also reported a record-high net profit after tax of NT$8.16 billion for Q1, with overall net income increasing by 16.0% year-on-year. The bank’s net interest income grew by 13.7% due to asset scale expansion and improved net interest margins. Additionally, net fee income surged by 50.9%, reflecting robust performance in financial management and credit card services.

Fubon Property & Casualty Insurance rebounded from previous losses, posting a net profit after tax of NT$1.35 billion in Q1 2024. The company saw a 6.2% increase in premium income and maintained a market-leading position with a 24.7% market share.

Fubon Securities experienced a 43.1% year-on-year increase in net profit after tax, totaling 2.34 billion yuan, benefiting from a surge in Taiwan stock prices and increased profits from brokerage, financial management, and asset positions.

Additionally, Fubon Financial disclosed the Embedded Value (EV) of Fubon Life at the end of 2023. The adjusted net worth grew by 29.0% to 535.8 billion yuan, and the overall implied value rose to NT$931 billion, up 16.6% from 2022, reflecting steady profits and increased net worth.

Fubon Financial remains vigilant in navigating the complexities of the global financial landscape while capitalizing on growth opportunities across its diverse business segments.

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