Taishin FHC 9M19 Net Profits Increase Nearly 6% YOY. Developments at Taishin Securities propel the nonbank core subsidiary into the spotlight.
Taishin FHC released its 3Q19 results at the analyst meeting today. Taishin reported 9M19 net profits of NT$11.9bn, up 5.9% YOY; and EPS of NT$0.99, up 4.2% YOY. The favorable major global financial markets have supported Taishin’s strong gains in investment/trading income, which surged 31.0% YOY. Net fee income’s growth of 6.0% YOY was driven mainly by solid performance from wealth management, loan syndication, and credit card business.
Taishin FHC’s President Welch Lin, CFO Carol Lai, and CIO Eric Chien, alongside Taishin Bank’s President Oliver Shang, and Wholesale Banking Group CEO Sharon Lin, jointly presented to the analysts and investors. Welch Lin attributed the 9M19 growth to solid performance across the subsidiaries, led by Taishin Bank which delivered broad-based progress in its loans, deposits, wealth management, and credit card businesses. Year-over-year, total loan increased by 7.7%, corporate loan soared by 10.4%, and total deposit grew by 12.1%. Wealth management fee grew by 8.1% YOY. The credit card business maintained stable growth of 25.2% YOY in spending, alongside other expansions measured by card issuance, active cards, and number of merchants served.
Welch Lin highlighted Taishin's strong capital position as of the end of 9M19 with FHC CAR at 117.2% and bank BIS at 14.1%. The Bank's asset quality remained benign with NPL% of 0.17% and coverage at 801.5%.
During today’s analyst meeting, Welch Lin announced that, since the beginning of the year, TFHC has received a record 134 awards. These awards reaffirm Taishin’s performance in fintech innovation, Consumer & Corporate Banking, as well as ESG. This September, Taishin was again included by DJSI as a constituent of two Dow Jones Sustainability Indices closely watched by global asset managers, namely “DJSI World” and “DJSI Emerging Markets.” TFHC is committed to ensuring that every decision taken to grow its business is also one which contributes to the promotion of a sustainable society.
Stepping up its capital markets and investment banking presence, Taishin Securities continues its expansion, yesterday (2019/11/5) signing a non-binding MOU with Nanjing Zijin Investment Group Co., Ltd. to form a joint-venture securities company. Further business planning and investment will follow pending governmental approval. Besides this attempt at an entry into the China market, Taishin Securities collaborated with renowned Japanese fintech startup FINAtext to run the first investment platform designed for the youth segment in Taiwan; the Necoin APP was launched on November 5th, and establishes Taishin Securities as a pioneering digitized brokerage service addressing the future generation’s investment needs through a mobile platform.
Regarding the recent investment repatriation momentum, Sharon Lin explained that TSIB had been requested by many returning clients to serve as their designated account-handling bank for the financial services stipulated in The Management, Utilization, and Taxation of Repatriated Offshore Funds Act. Prior to the implementation of the Act, Taishin had already set up a specialist team to proactively serve clients, helping them to swiftly navigate the application process. Trusted by TFHC’s patrons, the financing and investment specialists from both bank and nonbank subsidiaries jointly provided holistic solutions for the returning capital.
Regarding competition in fintech and digital payments, Oliver Shang announced that TSIB continues to stay on top, with the latest rollout of facial recognition technology to process payments at Family Mart stores offering an unprecedented level of convenience to customers’ everyday transactions. In addition, the recent launch of the much anticipated TSIB and Jkos Pay co-branded credit card is expected to generate high new-issuance volumes.