Taishin FHC Posted Outstanding 1H Results. Poised for Shared Prosperities Upon M&A Approval.
(2024/8/27) Taishin Financial Holding Co., Ltd. (TFHC) today held its 1H24 analyst meeting online. In 1H24, TFHC delivered a net income after tax of NT$10.6bn (YoY +19%). The book value per common share was NT$13.93, the EPS was NT$0.74, and the ROE was 11.17%. TFHC’s total revenue growth was driven by higher net interest income and net fee income, which increased by 14.2% YoY and 8.5% YoY, respectively.
TFHC’s President Welch Lin, CFO Carol Lai, and Taishin Bank (TSIB)’s President Sharon Lin, alongside TSIB’s Retail Banking Group CEO Maggie Pao and Wholesale Banking Group CEO Steven Chang jointly presented at the live webcast to address the operating results for 1H24. Welch Lin highlighted TFHC’s solid and sustained momentum, while core subsidiary TSIB garnered a net income after tax of NT$8.63bn (YoY +10%). TSIB delivered stable growth trajectories in the core business drivers of deposit, loan, credit cards, etc. TSIB’s total loan increased by 11.4% YoY, while its deposit increased by 9.8% YoY. Wealth Management NFI increased by 30.6% YoY. 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 12.4% YoY growth in card spending and a 20.7% YoY growth in gross fee income. Welch Lin pointed out that Taishin’s capital strength is sufficient, with TFHC’s CAR at 130.4% and TSIB’s BIS at 14.5%. In addition, TSIB’s asset quality remained benign, with NPL at 0.11% and coverage at 1137.9%.
Subsidiary Taishin Securities (TSS) posted a 1H24 net income after tax of NT$1.5bn (YoY +70.3%), with steady growth from brokerage fee income and rising trading income attributable to 1H24’s robust capital market. With its brokerage business market share remaining stable at 2.26%, TSS continues to improve its digital platforms, offering a one-stop shop, from online account-opening services to lending solutions, resulting in more than 50% of last year’s new customers being acquired online. Subsidiary Taishin Life delivered an FYP of NT$12.8bn, ranking 13th among peers, with its market share increasing to 3.42% (vs. 1.89% in Dec. 2023). Taishin Life’s cost of liability in 1H24 decreased to 3.79% (vs. 3.85% in 1H23).
On August 22, 2024, Taishin’s and Shin Kong’s Boards of Directors passed a resolution approving the merger between Taishin FHC and Shin Kong FHC. Upon completion of the merger, the surviving entity will be renamed TS Financial Holding Co., Ltd. The newly combined entity will become the 4th largest financial holding company in Taiwan on a total asset basis, with its consolidated market value placing it among the top 20 listed companies on the Taiwan Stock Exchange, improving its capital markets profile and fundraising capabilities. The post-merger synergies from two highly complementary FHCs will greatly enhance the combined entity’s scale and market share across the banking, insurance, and securities businesses, while customers will benefit from a more diversified and comprehensive product and service offering, thereby supporting the Taiwan government’s initiative to promote Taiwan as an “Asian Financial Technology Center” and “Asian Asset Management Hub.” Completing the first consensual merger of two FHCs would be optimal for the Taiwan financial industry’s evolution and would serve the best interests of shareholders, employees, and customers, leading the new entity into its next phase of growth and creating value for all involved.
With its long-term commitment to sustainability well recognized by the public, TFHC has been listed as a constituent of the DJSI World and DJSI Emerging Markets indices for 6 consecutive years. In the S&P Global Sustainability Yearbook 2024, Taishin FHC was ranked in the top 1% of the banking industry—the only member of Taiwan’s financial industry to receive such a recognition. In TIME Magazine’s recently published World’s Most Sustainable Companies 2024, Taishin’s score of 73.5 placed it 63rd overall and 1st in the banking industry. Taishin’s dedication to sustainable development has received international recognition for the sustainable value it strives to create.
