In This Article:
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Net Income: TWD103 billion, second highest record for the first nine months.
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Earnings Per Share (EPS): TWD6.78.
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Return on Equity (ROE): 15.8% on a consolidated basis.
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Book Value: TWD939 billion, record high.
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Book Value Per Share: TWD56.7.
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Cathay United Bank Earnings Growth: 23% year-on-year.
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Net Interest Income Growth: 17% year-on-year.
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Fee Income Growth: 34% year-on-year.
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Loan Growth: Total loan balance increased 16% year-on-year to TWD2.6 trillion.
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Net Interest Margin: Increased 18 basis points year-on-year to 1.55%.
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Asset Management AUM: TWD2.1 trillion, record high.
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Cathay Life Premium Income: TWD327 billion, slight decrease of 3% year-on-year.
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Value of New Business: TWD24 billion, up 20% year-on-year.
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After-Hedging Investment Yield: 4.15%.
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Equity-to-Asset Ratio: 9.6%.
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Cathay Century Premium Income Growth: 15% year-on-year.
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SME Loan Balance: TWD338 billion, 13% of total loan.
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Foreign Currency Loans Growth: Double-digit year-on-year growth to TWD259 billion.
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Net Fee Income: TWD20.9 billion, up 34% year-on-year.
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Wealth Management Fees: Rose 39% to TWD12.4 billion.
Release Date: November 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cathay Financial Holding Co Ltd (TPE:2882) reported earnings of TWD103 billion for the first nine months of 2024, marking the second highest in its history.
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Cathay United Bank and Cathay Securities achieved all-time high earnings, surpassing their full-year figures from 2023.
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Cathay Life's annualized premium and value of new business grew by 14% and 20% year-on-year, respectively.
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The company's asset management subsidiary, Cathay SITE, reached a record AUM of TWD2.1 trillion.
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Cathay Financial Holding Co Ltd maintained a robust capital position with an RBC ratio above 350% and an equity-to-asset ratio of 9.6%.
Negative Points
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Cathay Life's total premium decreased by 3% year-on-year, primarily due to regulatory changes affecting investment-linked policies.
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The pre-hedging recurring yield slightly decreased by 2 basis points, reflecting lower cash dividend income.
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Cathay Century's gross combined ratio increased due to higher gross loss ratio from earthquake claim payments.
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The equity-to-asset ratio may slightly decline upon the adoption of IFRS 17, although the adjusted ratio is expected to remain robust.
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Cathay Life's cash dividend income was lower than the previous year due to portfolio adjustments in favorable equity markets.
Q & A Highlights
Q: How sustainable is Cathay United Bank's funding cost management, and should we expect similar trends into 2025? A: Kevin, an unidentified company representative, explained that the full-year net interest margin (NIM) for 2024 is around 1.56%. While it's early to provide specific guidance for 2025, the goal is to maintain the NIM at the same level as this year, despite market volatility. Sophia Cheng, Chief Investment Officer, added that while deposit growth was minimal, the increase in funding costs was offset by a higher return on interest-earning assets, maintaining a stable spread.