Taishin FHC Posts Remarkable 9M Results. Ushering in a new era through M&A developments.
(2024/11/15) Taishin Financial Holding Co., Ltd. (TFHC) today held its 3Q24 analyst meeting online. TFHC President Welch Lin, CFO Carol Lai, and Taishin Bank (TSIB) President Sharon Lin, alongside TSIB Retail Banking Group CEO Maggie Pao, Wholesale Banking Group CEO Steven Chang, Finance and Financial Market Group CEO Henry Chan, and Taishin Life (TS Life) CEO Joseph Day, jointly presented at the live webcast to address the operating results for 9M24. Welch Lin highlighted that global economic recovery remains uneven and that growth divergence has widened, although there are signs of easing inflationary pressure. Taishin, Welch Lin said, remains cautious, navigating the challenges brought by worldwide eruptions of economic uncertainty. TFHC’s 9M24 net income after tax was NT$16.7bn, the EPS was NT$1.17, the ROE was 11.61%, and the book value per common share was NT$13.80. As regards capital adequacy and asset quality, the Group maintained a strong capital position, with TFHC’s CAR at 133.1%, TSIB’s BIS at 14.8%, Taishin Securities (TSS)’ CAR at 272%, and Taishin Life’s RBC at 324%. TSIB's asset quality remained benign, with NPL% at 0.12% and coverage at 1039%.
Core subsidiary TSIB maintained solid earnings momentum. Stable lending momentum supported a total loan increase of 14.3% YOY. Total deposit increased by 11.4% YoY, with a loan-to-deposit ratio of 73.8%. In 9M24, TSIB’s Net Fee Income (NFI) reached NT$11.1bn, up 21.5% YoY, on the back of strong growth from wealth management fees. The credit card business saw a 13.8% YoY growth in card spending and a 19.4% YoY growth in gross fee income. With nearly 172,000 merchants served and over 4.8 million active cards, TSIB remains a leader of the industry.
TS Life’s 9M24 net income after tax of NT$1.9bn increased 72.9% YoY, on the back of strong premium growth and higher investment income. With robust growth from interest sensitive insurance products, TS Life delivered an FYP of NT$19.6bn, with its market share increasing to 3.36% (vs. 1.89% in Dec. 2023). TS Life’s cost of liability in 9M24 decreased to 3.78% (vs. 3.82% in 9M23).
Subsidiary TSS posted a 9M24 net income after tax of NT$2.0bn (YoY +75.5%), with steady growth from brokerage fee income and rising trading income attributable to 9M24’s robust capital market. With its brokerage business market share remaining stable at 2.26%, TSS continues to improve its digital platforms, bringing investors cutting-edge and holistic digital solutions to meet myriad transactional demands.
On October 9th, Taishin Financial Holding Co., Ltd. and Shin Kong Financial Holding Co., Ltd. each held extraordinary shareholder meetings that approved merger resolutions. Taishin will be the surviving entity. Upon regulatory approval, the new conglomerate, TS Financial Holding Co., Ltd., will become Taiwan’s fourth-largest financial holding company, with assets of NT$8.3 trillion and a market value of NT$445 billion, significantly expanding the business scale and market share of the three main profit engines, namely banking, securities, and insurance. Taiwan’s first consensual merger of two FHCs would transform the local financial landscape, and the post-merger synergies from two highly complementary FHCs would greatly enhance the combined entity’s market share, presenting a more diversified product and service offering both domestically and overseas and serving the best interests of shareholders, employees, and customers, thereby leading the new entity into its next phase of growth and creating value for all involved.
On top of capturing new growth opportunities, TFHC is accelerating its AI development to enable AI-based empowerment, at the same time establishing AI governance framework and control measures to ensure reliable and accountable AI systems. TSIB was first among its peers to provide online corporate banking services fortified with AI-enhanced fraud detection and business savvy customer services. In 2025, TSIB, TS Life, and TSS aim to introduce a total of 12 new AI-enhanced service features that range from investment advisory to new-hire training drills designed to improve business acumen. Going forward, Taishin, in keeping with its enduring commitment to professionally safeguarding clients’ assets, will make rapid progress with big data and AI applications to provide highly personalized service solutions.
Additionally, Welch Lin reminded attendees that Taishin Charity Foundation’s 15th annual “Power of Love” campaign is open till the end of November for the public to vote in support of their favored NGOs. This year, the internationally acclaimed dance artist and choreographer Pei-Ju Chien is gracing the campaign as its ambassador, promoting all to move in the spirit of love. Utilizing the combined power of infinite love, the public is encouraged to partake in the online campaign, helping social welfare organizations obtain the resources needed to achieve success in collaborative social causes.