TFHC delivers robust 1H results, with profits soaring by 98%YoY. The Group deepens its commitment to sustainable development.
(2023/8/22) Taishin Financial Holding Co., Ltd. (TFHC) today held its in-person analyst meeting to address 1H23’s operating results. The Group delivered a net income after tax of NT$8.9bn, representing a 98.4% YoY growth—if excluding 1H22’s one-time item from the POT acquisition, YoY growth is 57%. The book value per common share was NT$13.56. The EPS rose 117.2% YoY to NT$0.63, and the ROE was 9.94%. Revenue rose by 21.8% YoY, on the back of higher Net Interest Income (NII) and Trading Income—up by 3.7% and 273.3% YoY, respectively.
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 analyst meeting. Welch Lin emphasized TFHC’s solid 1H23 performance, with its core subsidiary Taishin Bank (TSIB) delivering a record-high 1H net income after tax of NT$7.95bn—up by 31% YoY. TSIB maintained solid growth trajectories in the core business drivers of deposit, loan, credit cards, etc. TSIB’s total loan increased by 6.5% YoY, while its deposit increased by 16.7% YoY. Wealth Management NFI declined 2.8% YoY but has of late demonstrated gradual recovery in business momentum. The credit card business saw steady growth, when assessed by the number of active cards, merchants, spending, and net fee income—most noteworthy among which was a 32.3% YoY growth in card spending and a 32.2% YoY growth in gross fee income. As regards the asset quality and capital adequacy, Welch Lin pointed out that the Group maintained a strong capital position in 1H23, with TFHC’s CAR at 132.3% and TSIB’s BIS at 14.6%. TSIB’s asset quality remained benign, with NPL at 0.12% and coverage at 1088.3%.
Driven by trading income recovery and growth in brokerage and underwriting fees, subsidiary Taishin Securities’ 1H23 net income after tax was NT$0.873bn, an increase of 283% YoY and a figure which represents 10% of the Group’s net income. TSS’ brokerage business market share in 2Q23 reached 2.21%, up from 2Q22’s 2.17%. TSS’ in-house-developed app, “Woojii,” has been a hit, recording tens of thousands of downloads within days of its June launch and successfully winning over the investing public with an intuitive interface. Subsidiary Taishin Life’s 1H23 FYP was NT$6.49bn, with its FYP YTD market share increasing to 1.86% from 1.7% and its FYP YTD ranking advancing from 14th to 12th position. The cost of liability decreased to 3.85%, from 1H22’s 3.96%.
Welch Lin also shared his insights on environmental sustainability, reminding attendees that Net-Zero Emission is a globally acknowledged climate goal and a deciding measure for business competitiveness. Hence, decarbonizing power generation is the key pathway for countries to achieve net-zero targets. In June, TFHC held the "2023 Taishin Net Zero Summit - Go Towards Green Energy," featuring an in-depth webinar discussion between two honorary guests: Mr. Michiaki Uriu, Chairperson of Kyushu Electric Power in Japan, and Mr. Tseng Wen-Sheng, incumbent Deputy Minister of the Ministry of Economic Affairs and acting Chairman of Taiwan Power Company. Their dialogue proposed solutions for net-zero electricity generation in Taiwan and encouraged the commercial and industrial communities to further invest in technological breakthroughs to bring forward the realization of net-zero energy.
Taishin has long been known for its commitment to sustainability and for its compliance with Governmental policy. Look, for example, at the FSC’s “Green Finance Action Plan 2.0” and TWSE’s “Corporate Governance 3.0 Sustainable Development Roadmap.” Over the years, Taishin has been awarded with multiple recognitions for its efforts in this domain. In 2023, Taishin was, for the first time, a “Taiwan Sustainable investment Awards” nominee and won the “Institutional Impact Award - Excellent Prize” in the Financial Holdings Category. In addition, at July’s “2023 Asia-Pacific Sustainability Actions Awards,” Taishin received a total of six awards, making it the top performer in the financial sector. These awards are testimony to Taishin’s effective integration of sustainability development into its core business. Lately, the Group has been leveraging its consumer banking operations to influence the public to get on board with its necessary net-zero initiative, “From Zero to Hero.”
On top of sustainability development, Taishin’s dedication to an equal and diverse workplace has received widespread international recognition. In July, Taishin received the “HR Asia Best Companies to Work for in Asia” award from HR Asia Magazine for the 6th consecutive year. Finally, as regarding Taishin’s excellent performance as an employer striving for gender equality and workplace diversity, it is worth mentioning that, in 2023, TFHC was, for the first time, shortlisted and then included on the Bloomberg Gender Equality Index (GEI).