Fubon Financial reported unaudited consolidated pre-tax profit of NT$12.65bn and net profit of NT$11.10bn in August. Cumulative consolidated pre-tax profit was NT$84.27bn and cumulative consolidated net profit was NT$73.48bn, with EPS of NT$5.11. Specifically, Taipei Fubon Bank's August monthly and cumulative net profit reached a record high for the same period. Fubon Insurance and Fubon Securities both achieved a record-high net profit in August, and cumulative net profit hit the 2nd highest in history. The performance of the main subsidiaries is as follows:
Fubon Life's August net profit was NT$5.81bn, and cumulative net profit for the first eight months was NT$36.28bn. The main sources of investment income this month were interest income, capital gains on domestic and foreign equities and funds, and dividend income from domestic funds and stocks. In the stock market, as TAIEX hit a record high in August, Fubon Life realized capital gains in domestic stock positions. In the bond market, the Fed signaled a more accommodative stance, leading to a decline in short-term US Treasury yields in August, while long-term yields remain range-bound. Fubon Life seized the opportunity to increase bond positions and maintained sufficient liquidity to flexibly respond to subsequent market conditions. In the foreign exchange market, as the impact of the US reciprocal tariff policies faded, US dollar stabilized and the New Taiwan dollar gradually reversed its appreciation from the second quarter. With the US dollar appreciating 2.3% against the New Taiwan dollar in August, Fubon Life further increased its FX reserve balance. Fubon Life's cumulative standalone first year premium (FYP) reached NT$79.9bn and cumulative total premium (TP) reached NT$248.5bn, both up 6% YoY and were estimated to rank the top 2 in the industry. Monthly FYP was NT$8.2bn and TP was NT$26.5bn, both of which were also estimated to rank the top 2 in the industry. As Fubon Life continued to focus the product strategy on regular-paid and protection policies, cumulative FYPE reached NT$37.9bn, up 11% YoY. Fubon Life's capital position remained decent, with equity to asset ratio over 10% and RBC ratio around 400% as of August. Fubon Life will continue to closely monitor exchange rates and market movement, assessing potential impacts to ensure decent capitalization.
Taipei Fubon Bank's August net profit was NT$3.26bn, up 12% YoY due to steady core business operation and reaching a record high for the same period. Cumulative net profit reached NT$25.74bn, up 15% YoY, hitting a historical high. Cumulative net interest income and fee income increased 11% and 13%, respectively, benefiting from larger scale, higher NIM, and steady growth in wealth management and credit card fee income. This together resulted in double-digit growth in total revenue. Asset quality remained benign. NPL ratio and coverage ratio were at 0.12% and 1,029%, respectively, as of August.
Fubon Insurance's August net profit was NT$0.77bn and cumulative net profit reached NT$4.22bn, up 32% YoY. The core business continued to grow with steady business momentum. In terms of business performance, the direct written premium in August was NT$4.99bn. Notably, commercial fire insurance was the outperformer with a growth of 17% YoY, and marine insurance and casualty insurance also outperformed the market. Cumulative written premium was NT$47.84bn, up 7% YoY. The market share in total direct written premium was 24.0%, continuing to lead the market.
Fubon Securities' August net profit was NT$1.17bn, the highest for the same period, mainly driven by high trading volume of Taiwan stocks and TAIEX reaching a new high of 24,570 points, boosting brokerage and proprietary trading income. Cumulative net profit was NT$6.47bn, the second highest for the same period.