Taishin FHC’s business momentum rebounded and delivered stable earnings growth.The Group further expands its services with Taishin Futures.
(2023/5/16) Taishin Financial Holding Co., Ltd. (TFHC) today held its 1Q23 analyst meeting online. TFHC’s President Welch Lin, CFO Carol Lai, and Taishin Bank’s President Oliver Shang, alongside Wholesale Banking Group CEO Sharon Lin, Taishin Life’s CEO Louis Heng, and Taishin Bank Finance Division Senior Vice President Nick Chou jointly presented at the live webcast to address the operating results of 1Q23. Welch Lin highlighted TFHC’s continued solid performance, showcasing a remarkable business momentum during 1Q23. The company delivered a record-high first quarter result, with a net income after tax of NT$5.064bn, representing a 136.2% YoY growth. The EPS was NT$0.38, the ROE was 11.48%, and the book value per common share was NT$13.63.
Welch Lin pointed out that, the relaxation of restrictions and a return to an open-door policy post pandemic has boosted demand and presented business opportunities. Revenue from Trading and Net Interest Income (NII) rose by 286.2% and 4.8% YoY, respectively. Subsidiary Taishin Bank (TSIB)’s Deposit increased by 15.3% YoY, while its total Loan increased by 4% YoY, with Unsecured Personal Loan posting a decent YoY growth of 6.8%. The credit card business saw a 10.7% YoY growth in card spending and a 27.3% YoY growth in gross fee income. With over 167,000 merchants served and over 4.33 million active cards, TSIB remains a leader of the industry. TSIB's asset quality remained benign, with NPL at 0.11% and coverage at 1183.5%.
Subsidiary Taishin Securities (TSS)’ 1Q23 net income after tax was NT$0.4bn, posting a 104.9%YoY growth mainly driven by recovery of trading income. Newly opened brokerage accounts rose by 44% YoY, and market ranking improved to 4th in 1Q23. Subsidiary Taishin Life (TS Life)’s 1Q23 first year premium (FYP) of NT$3.656bn increased by 127% YoY, well above the industry average of 11%. In the meantime, TS Life’s cost of liability decreased to 3.88% (vs. 3.98% in the same period last year). The Group maintained a strong capital position, with TFHC’s CAR at 133.3% and TSIB’s BIS at 14.8%.
Welch Lin mentioned that TSS’ subsidiary “Taishin Futures Co., Ltd” (TS Futures) began operations this month, further expanding the Group’s full-service capabilities and meeting ever wider financial needs. TS Futures is the first new futures brokerage firm in 13 years in Taiwan. For TFHC, it is a key development, adding yet another component to the Group less than 2 years since TFHC invested in TS Life. TS Futures aims for an accelerated growth within 3 years, targeting a market share of between 3% and 5% and contributing to the Group’s profit by leveraging the Group’s resources and focusing on expansion into institutional segments and overseas futures markets.
As FinTech rapidly evolves, Subsidiary TSIB continues to stay ahead with cutting-edge technology and innovations to diverse its online financial services. With 3.1495 million digital savings accounts opened as at March 31st 2023, TSIB remains at the top of the industry as the only entity among its peers that has surpassed 3 million accounts opened. Oliver Sheng mentioned that, as a front runner in digital financial services, TSIB has received 7 awards from Retail Banker International (RBI) in early 2023, followed by April’s Triple A Digital Awards 2023 from The Asset. Moving forward, Taishin will continue to develop FinTech innovations for the fast-evolving market while maintaining its strict risk management protocols.
