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Mega Financial Holding Achieves Record Profits in Q3, Plans Dividends; Capital Increase for Mega Property & Casualty Insurance

Mega Gold reports a record-high net profit of 27.03 billion yuan for Q3, plans stable dividends, and initiates a cash capital increase for Mega Property & Casualty Insurance
Taiwan
m 2886.TW Blue Chip 150
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Mega Financial Holding achieved a historic milestone with a net profit after tax reaching 27.03 billion yuan in the first three quarters, marking a remarkable 98% year-on-year increase. Holding its position as the leading public financial holding company, Mega Financial Holding intends to adhere to a “Stable dividend policy” for the upcoming year. Additionally, the company is addressing Chung Kuo Insurance’s epidemic prevention insurance claims through a cash capital increase of 350 million shares, slated for completion before the end of January next year.

During an online briefing on the 29th, the company provided insights into its robust performance. The net profit after tax for the first three quarters surged to 27.03 billion yuan, driven by factors such as expanded interest spreads, increased currency exchange benefits, and financial operation profits. Mega International Commercial Bank experienced a 7.6% growth in fee income, and its net profit after tax soared to 25.54 billion yuan, representing a significant 55% increase compared to the same period last year.

Mega Securities, focusing on high-interest rate areas, adopted strategic measures to enhance its operations. The net profit after tax for the first three quarters was 1.52 billion yuan, maintaining a consistent profit level. Mega Securities capitalized on substantial increases in brokerage fee income and financial operation income, achieving a net profit after tax of 1.63 billion yuan, marking a remarkable growth rate of 199% compared to the same period last year.

Chung Kuo Insurance exhibited strong growth in its core insurance business during the first three quarters. Notably, commercial fire insurance increased by 42.3%, small and medium-sized engineering insurance by 33.7%, and Travel Insurance by an impressive 806.1%. The company reported a 6.1% growth in overall premium income. The net profit after tax, excluding the impact of epidemic prevention insurance, stood at 440 million yuan.

To further support Chung Kuo Insurance, Mega Financial plans a cash capital increase of 350 million shares by the end of January next year. This initiative aims to augment the capital of Chung Kuo Insurance by an additional 4.5 billion yuan and repay a 6.5 billion yuan loan from the previous capital increase. The reinsurance amortization progress with Hannover Re is still under review.

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