Taishin FHC Maintains Solid Performances and Prudent Risk Management. Core Subsidiary Taishin Life’s Issuer Credit Ratings Affirmed
Taishin Financial Holding Co., Ltd. (TFHC) today held its 3Q22 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 3Q22 and the business outlook. Welch Lin highlighted that, while the global markets were impacted by declining economic growth and worldwide inflation, TFHC’s subsidiaries, including Taishin Bank (TSIB), Taishin Life (TS Life), and Taishin Securities (TSS), have all delivered solid performances in 3Q22. TFHC’s 9M22 net income after tax was NT$8.3bn, the EPS was NT$0.58, the ROE was 6.06%, and the book value per common share was NT$12.27.
Welch Lin explained that while the 53.6% YoY decline of 9M22’s net income after tax was impacted by the global macro backdrop, the YoY comparison was also affected by one-time items that resulted from the completion of the acquisition of Prudential Life Insurance Company of Taiwan Inc. (POT) and the initiation of the divestment of Taishin’s Chang Hwa Bank (CHB) stakes. When excluding one-time items related to the POT acquisition and the CHB reclassification, the decline in net profits is reduced to 30% YoY. The Group maintained a strong capital position, with TFHC’s CAR at 132.4%, TSIB’s BIS at 14.2%, TS Life’s RBC at 422%, and TSS’ CAR at 316%. TSIB's asset quality remained benign, with NPL% at 0.13% and coverage at 1001.1%.
Subsidiary TSIB’s deposit grew by 9.4% YoY, and its corporate loan maintained stable growth, while its total loan increased by 7% YoY, with FCY and NTD loan up by 2.6% and 8%, respectively. The credit card business saw a 9.7% YoY growth in card spending and a 10.5% YoY growth in gross fee income. With over 166,000 merchants served and over 4.16 million active cards, TSIB remains a leader of the industry.
Driven by robust sales of new product offerings distributed through strong bancassurance channels, in 9M22 TS Life’s first year premium (FYP) of NT$11.533bn increased more than 190% YoY, and its total premium of NT$22.253bn increased 54.8% YoY. TS Life’s 9M22 net income after tax was NT$1.6bn, which nearly quadrupled YoY. It is worth noting that TS Life’s effective risk control and strong business growth are well-respected in the industry and received Taiwan Ratings’ “twAA-” long-term insurer financial strength and issuer credit ratings. TSS’ 9M22 net income after tax was NT$519mn, with its business performance impacted by the fluctuations in global capital markets and the decline in trading volume of the Taiwan Stock Market.
As Taishin celebrates its 30th anniversary with the theme of “Commitment and Sustainability,” TSIB’s President Oliver Shang mentioned that “Gogoro Rewards,” the credit card co-branded with Gogoro, was launched last week (October 26th), along with a new reward points program, Gogoro Rewards, which customizes new payment experiences and reward programs targeted towards the electronic motorcycle market segments, linking redeemable benefits with transactions made in the process of realizing green lifestyles. Going forward, Taishin will continuously apply FinTech to create win-win situations that offer greater convenience and sustainability for both the public and the environment, promoting the “From Zero to Hero” initiative by making sustainable lifestyle choices towards a carbon-free future.
Welch Lin announced that Taishin Charity Foundation’s 13th annual “Power of Love” campaign is open till the end of November for the public to cast votes online in support of their favored NGOs. Welch Lin encouraged the public to partake in the meaningful campaign to direct resources to a multitude of public welfare proposals, to help shed light on small social welfare organizations, and to get involved in collaborative social causes.