Taiwan’s Six State-Owned Financial Groups Earn NT$134.513 Billion in the First Three Quarters

Highlights

Four state-owned financial holding companies and two state-owned banks reported combined net income of 1345.13億元 for the first three quarters, up 22.21% year over year and a record for the same period. September’s combined profit was 131.84億元, down 15.46% month over month after the dividend season ended and some financial-asset valuation gains declined. Banking interest and fee income remained steady, while securities subsidiaries benefited from active Taiwan stock trading. Mega Financial led the group in both total earnings and earnings per share, while Hua Nan Financial recorded the strongest year-over-year growth.

Sentiment Analysis

• The article’s overall sentiment is positive, emphasizing record first-three-quarter earnings, broad year-over-year growth, and resilient core banking operations across the six institutions.


• Mega Financial is presented particularly favorably: its accumulated earnings reached a new period record, and its securities subsidiary benefited from strong brokerage, proprietary trading, and underwriting results. Hua Nan Financial also stands out for growth exceeding 32% and earnings approaching the previous full-year level.


• Cooperative Financial, First Financial, Chang Hwa Bank, and Taiwan Business Bank are described as benefiting from steady banking income or contributions from subsidiaries. The article portrays these results as evidence of diverse earnings sources rather than reliance on one business line alone.


• The tone is not uniformly positive. September’s combined monthly earnings fell 15.46%, and some institutions faced weaker valuation gains, higher provisions, or losses at a subsidiary. These are presented as specific short-term pressures, not as evidence that the overall earnings trend has reversed.


• The visual rating reflects a strongly positive overall tone, tempered by monthly declines and uneven performance among individual businesses.

Article Text

Four state-owned financial holding companies and two state-owned banks in Taiwan reported combined net income of 1345.13億元 for the first three quarters. This represented year-over-year growth of 22.21% and established a record for the same period. The results reflect steady contributions from core banking operations and stronger performance by securities subsidiaries amid active trading in Taiwan equities. Mega Financial (兆豐金, 2886-TW) ranked first in both total earnings and earnings per share, while Hua Nan Financial (華南金, 2880-TW) recorded the fastest growth among the financial holding companies.

In September, the six institutions together earned 131.84億元, a 15.46% decline from the previous month. The monthly reduction was attributed mainly to the end of the dividend season and lower valuation gains on some financial products. The weaker monthly result did not erase the accumulated growth for the year. Banks continued to benefit from interest and fee income, while securities subsidiaries gained from brokerage, proprietary trading, and underwriting activity. Those securities businesses were an important source of the increase in group earnings.

Mega Financial earned after-tax net income of 36.29億元 in September, the only one of the six institutions to post a month-over-month increase. Higher proprietary trading and underwriting profits at Mega Securities (兆豐證券) contributed more than 5億元 compared with the prior month. Increased bad-debt provisions and other provisions at Mega Bank (兆豐銀行) offset part of those gains, but holding-company earnings still edged higher. For the first three quarters, Mega Financial’s after-tax net income reached 328.48億元, a record for the period.

Mega Securities’ earnings rose approximately 173% year over year, supported by sharp increases in brokerage commissions and proprietary trading and underwriting income. Its September profit also set a monthly record. Mega Bank reported after-tax net income of 248.18億元 for the first three quarters, up approximately 6% and a record for the comparable period. Mega Bills Finance (兆豐票券) recorded year-over-year earnings growth of approximately 33%, attributed to improved bond-position spreads, lower interest expenses on foreign-currency bonds, and higher bill transaction volumes. Mega Insurance (兆豐產險) earned 8.6億元 in the first three quarters, up approximately 29%.

Hua Nan Financial posted the strongest growth among the financial holding companies, with first-three-quarter after-tax net income of 263.67億元, an increase of 32.43%. Earnings per share were 1.88元, and accumulated profit had moved close to the company’s total for the previous full year. The group attributed its performance to steady growth in banking as well as stronger contributions from non-bank subsidiaries, including securities and insurance businesses. Non-bank operations accounted for 23% of earnings, making them a significant additional source of group profit.

First Financial Holding (第一金, 2892-TW) reported accumulated earnings of 262.25億元 for the first three quarters, up 20.86%, with earnings per share of 1.82元. September results were affected by the end of the dividend season and losses from financial-product valuations. Even so, First Bank’s core operations remained resilient. First Securities (第一金證券) received support from investment and underwriting income and exceeded 20億元 in first-three-quarter earnings. First Life Insurance (第一金人壽), however, moved from profit to loss in September.

Cooperative Financial Holding (合庫金, 5880-TW) reported consolidated after-tax net income of 19.24億元 in September and 202.49億元 for the first three quarters, up 26.8%. Earnings per share were 1.22元, and accumulated net income reached a record for the period. Its main contributors—Cooperative Bank (合庫銀行), Cooperative Securities (合庫證券), and Cooperative Life Insurance (合庫人壽)—each achieved record first-three-quarter after-tax earnings.

Cooperative Bank’s accumulated after-tax net income was 179.84億元, up 12.07%. Cooperative Securities earned 17.22億元, an increase of 15.42億元 from the same period a year earlier, while Cooperative Life Insurance earned 12.95億元, up 5.73億元. Cooperative Bills Finance, Cooperative Asset Management, and Cooperative Venture Capital also improved their results, adding to the group’s varied earnings base.

Among the two state-owned banks, Chang Hwa Bank (彰銀, 2801-TW) recorded pre-tax earnings above 200億元 through the first 9 months. Its consolidated after-tax earnings for the first nine months totaled 173.7億元, a year-over-year increase of 22.76%. The bank attributed its performance primarily to healthy net interest and fee income, which supported stable earnings.

Taiwan Business Bank (臺企銀, 2834-TW) saw September earnings decline 22.41% month over month as gains from the disposal and valuation of forward foreign-exchange and currency-swap transactions, along with dividend income, decreased. However, its accumulated earnings for the first nine months still grew approximately 17% from a year earlier. A wider spread between deposits and loans increased net interest income, while the bank’s underlying operating condition remained sound. Taken together, the reported results show how steady banking income and stronger securities and subsidiary contributions supported record cumulative earnings despite a weaker September.

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