Taishin FHC delivered strong results in 1Q21. Profit surged 75% YoY.
As the COVID-19 pandemic continues, Taishin FHC today held its 1Q21 analyst meeting online. Taishin FHC’s President Welch Lin, CFO Carol Lai, and Chief Investment Officer Eric Chien, alongside Taishin Bank’s President Oliver Shang, Wholesale Banking Group CEO Sharon Lin, and Retail Banking Group CEO Wilson Chou jointly presented at the live webcast to address the operating results of 1Q21. Welch Lin opened the meeting by describing TFHC’s growth in 1Q21, which was robust when compared to the same period a year ago, with all major subsidiaries demonstrating superior rebound momentum. The Group delivered a net income after tax of NT$4.5bn. The EPS was NT$0.37, the ROE was 11.08%, and the book value per common share was NT$13.50.
TFHC’s 1Q21 net income after tax was up 74.8% YoY from 1Q20, and the EPS nearly doubled (up by 94.7% YoY). Net interest income grew 6% YoY, net fee income increased by 17.9% YoY, and investment income increased by 105.9% YoY. Subsidiary Taishin Bank’s total deposit grew by 9.1% YoY, and total loan growth reached 7.4% YoY, with NTD and FCY loans increasing by 7.9% and 5.6% YoY, respectively. Wealth management fee grew by 13.5% YoY, driven by strong bancasurrance sales. Personal lending showed decent momentum (up by 10.1% YoY). The credit card business reached over 4.05 million active cards and remains champion of the industry with over 158,000 merchants served. Subsidiary Taishin Securities’ brokerage business maintained a market share in excess of 2%; its underwriting business continues to pick up momentum and, as of last month, was ranked 2nd in the industry according to the number and size of its deals. Taishin Securities’ 1Q21 net income after tax was NT$390mn, an amount which contributed 9% to the Group’s revenue as the second growth pillar. Taishin maintained a strong capital position, with FHC CAR at 127.9% and bank BIS at 15.9%. The Bank's asset quality remained benign, with NPL% at 0.13% and coverage at 966.1%.
Regarding the acquisition of Prudential Life Insurance Company of Taiwan Inc., Welch Lin explained that TFHC has been expending all efforts to meet the requirements stipulated by the competent authorities (with whom TFHC continues to communicate to secure prompt approval of the deal). In addition, Welch Lin shared the latest updates on TFHC’s overseas expansion. TSIB’s Bangkok representative office has undergone a smooth preparation and will open on June 28th, and the Labuan Branch and Kuala Lumpur Marketing Office are both set to begin operations in 3Q21. Furthermore, preparations are underway to open a Long An Branch in Vietnam. These upcoming expansions will add to the existing platform of branches in Hong Kong, Singapore, Tokyo, and Brisbane, and they will jointly provide superior international financial services and ramp up overseas profits.
Welch Lin also pointed out that, in addition to continuous dedication to charity and art programs, Taishin also supports the development of sport and exemplary athletes to honor its brand spirit of “devotion.” The exceptional Formosa Taishin Dreamers basketball team has advanced to the PLG Finals, over 10,000 runners hosted by Taishin Women Run Taipei are devoted to long-distance running as a means of self-realization, and golfer Chia-Yen WU has already won 8 championships since she turned pro just a year ago.
In regard to the potential impact from the advent of internet-only banks, Oliver Shang pointed out that TSIB is a leader in fintech innovation, and Richart has long maintained its position as the preeminent digital banking brand with the largest market share of digital banking accounts. This dominance is made possible by strong client acquisition momentum attributed to enhanced client segmentation and multi product strategies. The industry’s foremost fintech ecosystem app, Richart Life, introduced crossover collaborations among merchant partners to integrate mobile payments, bonus points, and promotional deals for an even wider range of applicable scenarios, creating a competitive edge through enhanced user experience and thereby increasing customer stickiness.
The domestic spread of COVID-19 has been on the rise in Taiwan, but Welch Lin reiterated his faith in the government’s ongoing efforts in containing this wave of infections and restoring people’s lives to normalcy. Welch Lin emphasized that, as a socially responsible company, Taishin treasures its employees, respects its clients, and will continue cooperating with the government to implement preventive measures and maintain social stability and responsibility. On top of heightening its protective measures to defend its clients and employees against infection while maintaining quality financial services without suspension, Taishin has offered over NTD$10mn in reimbursements and two days of paid leave for each of its employees to receive the COVID-19 vaccination. Taishin will work with all of society in the fight against COVID-19. May everyone stay healthy and safe. Go Taiwan!