Taishin FHC Delivers Solid Annual Results in 2022. The Group’s Sustainable Development Continues to Receive Domestic and International Recognition.
Taishin Financial Holding Co., Ltd. (TFHC) today held its 4Q22 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 FY2022. Welch Lin highlighted that, impacted by slowed economic growth, inflationary pressures, and geopolitical uncertainty, TFHC delivered a net income after tax of NT$14.9bn in 2022. The EPS was NT$1.09, the ROE was 8.34%, and the book value per common share was NT$13.01.
Welch Lin explained that, while the 26.8% YoY decline of 2022’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 1.3% YoY. The Group maintained a strong capital position, with TFHC’s CAR at 135.6%, Taishin Bank’s BIS at 14.9%, Taishin Life’s RBC at 371%, and Taishin Securities’ CAR at 327%. Taishin Bank's asset quality remained benign, with NPL at 0.14% and coverage at 973.2%.
Subsidiary Taishin Bank’s total loan increased by 6.7% YoY in 2022, while its deposit increased by 13.8% YoY, demonstrating stable growth. The credit card business saw a 9.6% YoY growth in card spending and a 12.1% YoY growth in gross fee income. With over 165,000 merchants served and over 4.26 million active cards, Taishin Bank remains a leader of the industry.
Driven by robust sales of new product offerings distributed through strong bancassurance channels, Taishin Life’s 2022 first year premium (FYP) of NT$13.145bn increased more than 70% YoY, and its total premium of NT$28.535bn increased 32.2% YoY. Taishin Life’s 2022 net income after tax was NT$1.396bn, which represents a YoY increase of more than 50%. Additionally, Taishin life was assigned “twAA-“ long-term insurer financial strength and issuer credit ratings, with a “stable” rating outlook by Taiwan Ratings. Taishin Securities’ 2022 net income after tax was NT$521mn, with its business performance impacted by the fluctuations in global capital markets and the decline in trading volume of the Taiwan Stock Market.
As a front runner in digital financial services, Taishin Bank’s Richart maintained a sixth-consecutive-year as market leader, capturing over 20% market share as at the end of 2022.
Following the Government’s policies promoting financial inclusion, Taishin Bank continues to optimize its user-friendly financial services. Richart was the first among its peers to offer online account opening services for foreigners in Taiwan, thereby supporting the foreign populations’ large banking demands, including spending, FX exchanges, and fund transfers, with more enhanced digital financial services to be rolled out shortly. Accessible 24/7 for personalized services, Taishin Bank’s AI-enabled customer support specialist, “Rose,” offers information on Taishin Bank’s business services and serves as a one-stop respondent for any account-related queries, driving engagement and resulting in increasing numbers of user visits. Besides financial services, as an ongoing effort to fulfill its corporate social responsibilities, the Richart Life Eco-system has collaborated on charity projects, leveraging its digital platform to generate public awareness and participation through direct donations via the Richart Life App.
For its ongoing ESG efforts, TFHC has received widespread recognition both domestically and internationally. In 2022, TFHC was listed as a constituent of the DJSI World and DJSI Emerging Markets indices for the fifth consecutive year, and it has maintained its “AA” MSCI ESG Rating for the third consecutive year. TFHC received “A- List Rating” in the CDP Climate Change Evaluation in 2022. TFHC has won many awards for its ESG performance, such as the 2022 Taiwan Institute for Sustainable Energy’s “Top 100 Corporate Sustainability Award” and CommonWealth Magazine’s 2022 “Top 50 in Excellence in Corporate Social Responsibility.” TFHC is present on multiple ESG indices, including the Taiwan High Compensation 100 Index, the FTSE4Good TIP Taiwan ESG Index, and the FTSE4Good Emerging Index. Moving forward, TFHC is committed to supporting both its clients’ and the public’s sustainability aspirations, by following international trends to enhance the sustainable developments of its own operations, mitigating environmental and social impacts, implementing sustainable finance, and enhancing disclosures on climate governance.