TFHC delivered a solid performance in the first quarter of 2022. Operations are at full speed with tightened risk management controls.
Taishin Financial Holding Co., Ltd. (TFHC) today held its 1Q22 analyst meeting online. TFHC’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 Taishin Life’s CEO Louis Heng jointly presented at the live webcast to address the operating results of 1Q22. Welch Lin stressed that despite the global financial markets having taken a hit both from the Russia-Ukraine conflict and from the ongoing pandemic, TFHC’s subsidiaries, including Taishin Bank (TSIB), Taishin Life (TS Life), and Taishin Securities (TSS), nevertheless recorded solid performances in the first quarter. For 1Q22, the Group delivered a net income after tax of NT$2.1bn. The EPS was NT$0.15, the ROE was 4.33%, and the book value per common share was NT$13.89.
Welch Lin pointed out that the 52.1% YoY decline of TFHC’s net income in 1Q22 was mainly attributable to changed accounting methods recognizing CHB investment income and to MTM adjustments to the contingent consideration on the POT acquisition made in response to rising treasury yields. The Group maintained a strong capital position, with FHC CAR at 118.9% and bank BIS at 14.5%. TSIB's asset quality remained benign, with NPL% at 0.13% and coverage at 989%.
Subsidiary TSIB’s deposit grew by 6.7% YoY, and strong demand from corporate lending enabled its total loan to increase by 8.1% YoY, with FCY and NTD loan up by 15.5% and 6.4%, respectively. TSIB’s credit card business recorded growths of 5.2% YoY in spending and 4.1% YoY in gross fee income, while maintaining its position as a leader of the industry, with over 160,000 merchants served and over 4.1 million active cards.
With new products being introduced and pushed through highly efficient bancassurance distribution channels, TS Life’s 1Q22 FYP multiplied by 24 times YoY (NT$6.256bn), and the total premium of NT$9.957bn increased by more than 150% YoY. TS Life’s 1Q22 net income after tax reached NT$1.323bn. TSS’ 1Q22 net income after tax was NT$0.21bn, with TSS’ brokerage business fees reduced slightly from 1Q22, reflecting impacts from the volatile capital market conditions both domestically and internationally, as well as TWSE’s falling trading volumes.
As regards the highly-watched disposal of TFHC’s Chang Hwa Bank (CHB) shares, Welch Lin stated that Taishin had made a commitment to the FSC to complete the divestment within six years of initiating the process. The shares’ disposal will be carried out in such a way as to avoid impacting the CHB stock price, either through open-market transactions, or through the issuance of exchangeable bonds or exchangeable preferred shares. On April 1st, 2022, TFHC’s first issuance of a domestic unsecured exchangeable bond was issued, worth NT$5 billion and convertible to 246 million CHB shares if fully exercised. In addition, preparations to issue Class F exchangeable preferred shares are underway.
Welch Lin highlighted that this year, as Taishin celebrates its 30th anniversary, to manifest the brand spirit of “Commitment and Sustainability,” the entire Group is leading from within and collaborating with cross-industry corporate partners for Green Living Movements, engaging employees and customers through eco-friendly activities and green lifestyle choices to inspire the public to engage in sustainable living. Moving forward, TFHC will continue to enhance its sustainable developments and ESG performances, and it will fulfill its responsibilities as a financial intermediary, helping corporate clients manage sustainability transitions while continuing to live up to its stakeholders’ expectations.