The top Taiwanese banks have reported increasing net income and issuance of structured retail products in the third quarter of 2017.
Shin Kong Financial Holding Company (SKFC) recorded a consolidated after-tax profit of NT$10.84bn for the period between January 1 and September 31, 2017. Consolidated comprehensive income increased 81.4% year-on-year to NT$17.72bn. EPS was NT$1.03. Total group assets amounted to NT$3.3 trillion, up 5.4% year-on-year. Consolidated shareholders' equity was NT$151.48bn, 8.8% higher compared to the same period last year. Book value per share was NT$13.66.
Shin Kong Life recorded a consolidated after-tax profit of NT$7.29bn for the first 9 months of 2017. Consolidated total comprehensive income increased 141.9% year-on-year to NT$14.28bn. Consolidated shareholders' equity increased 19.7% year-to-date to NT$88.31bn. First year premium (FYP) was NT$84.08bn, representing a market share of 8.9%. Annualized cost of liabilities decreased from 4.37% for 2016 to 4.28%.
Shin Kong Bank posted a consolidated after-tax profit of NT$3.10bn. Net interest income and investment income grew 5.3% and 80.5% year-on-year, respectively. NIM and NIS for the third quarter of 2017 were 1.55% and 1.97%, respectively, both at a proper level. Asset quality remained solid with NPL ratio of 0.26% and coverage ratio of 478.27%. Wealth management income for the period between January 1 and September 31, 2017 reached NT$1.49bn, driven by mutual fund and overseas securities fee income growing 81.9% and 89.0% year-to-year, respectively.
For the third quarter of 2017, SKFC issued a total of 39 structured products worth TN$4.3bn, according to SRP data. As for comparison, for the same period last year the group issued 6 structured products worth TN$1.2bn.
Taishin Financial Holding recorded net income of TN$3.6bn for the third quarter of 2017, up 35% year-on-year. For the first 9 months of 2017, net income was TN$10.4bn, up 37% as compared to the same period last year. The Group's total assets under management as of September 2017 were TN$2.02trn, up 13.4% from TN$1.94trn at the end of September 2016. Total liabilities for the first 9 months of 2017 were TN$1.88trn, up 4.2% from TN$1.8trn.
Total equity as of September 2017 was TN152bn, up from TN$148bn for the same period in 2016. Net profit from derivative instruments was TN$18.9bn, down 28% from TN$26.4bn for the first 9 months of 2016. As of September 2017, the bank issued warrants worth TN$2.4bn, up 60% from TN$1.5bn as of September 2016.
According to SRP data, the Group issued 25 structured products worth TN$2.78bn in the third quarter of 2017. For the same period last year, the Taishin Financial Holding issued 16 structured products worth TN$3bn.
E Sun Commercial Bank reported interest revenue of TN$8.4bn for the third quarter of 2017, up 15.5% from TN$7.27bn for the third quarter of 2016. For the first 9 months of 2017, interest revenue was TN$24.1bn. On the other hand, total net revenue was TN$11.8bn in 3Q17, up 9.3% from TN$10.7bn in 3Q16. The bank's income before tax was TN$4.8bn in 3Q17, up 11.6% from TN$4.3 in 3Q16. Additionally, net income for the third quarter of 2017 increased 10.2%, from TN$3.62bn in 3Q17 to TN$4.03bn in 3Q16. On the other hand, total comprehensive income was TN4.02bn in 3Q17, up 23.7% from TN$3.25bn in 3Q16. The bank's operating expenses were TN$5.9bn in 3Q17, up 11.3% from TN$5.4bn in 3Q16. As of September 30, the net amount of derivative instruments was TN$5.7bn.
For the third quarter of 2017, E Sun Commercial Bank issued 15 structured products worth TN$1.66bn, according to SRP data. For the same period last year, the bank issued a total of 8 structured products worth TN$1.4bn.
Yuanta Financial Holdings reported net interest income of TN$5.96bn in 3Q17, up 11.3% from TN5.31bn in 3Q16. Total non-interest income reached TN$20.4bn in 3Q17, up 13.45% from TN$17.9 in 3Q16. Total comprehensive income, on the other hand, was said to have increased 43%, from TN$4.4bn in 3Q16 to TN$6.3bn in 3Q17. Additionally, in the third quarter of 2017, the Group recorded net profit of TN$9.28bn, up from TN$8.718bn for the same period last year. Operating expenses went up 8.34%, from TN$9.33bn in 3Q16 to TN$10.1bn in 3Q17.
According to SRP data, a total of 13 structured products worth TN$1.4bn were issued by Yuanta Financial Holdings in 3Q17. For the third quarter of 2016, the group issued 2 structured products worth TN$200m.
Click in the links to access the quarterly reports: SKFC, Taishin Financial Holding, E Sun Commercial Bank, Yuanta Financial Holdings.
Related stories:
Index roundup: FTSE Russell introduces Taiwan ESG Index
Asset preservation drives demand for structured products, Taipei Fubon Bank (Part 2)
Structured products development requires business transformation, Taipei Fubon Bank (Part 1)