Fubon Financial reported unaudited consolidated pre-tax profit of NT$20.50bn and net profit of NT$17.44bn in September. Cumulative consolidated pre-tax profit was NT$104.77bn and cumulative consolidated net profit was NT$90.92bn, with EPS of NT$6.38. Fubon Financial Holdings and its subsidiaries-Fubon Life, Taipei Fubon Bank, Fubon Securities, and Fubon Insurance-all achieved record-high September monthly net profits, Taipei Fubon Bank's cumulative net profit for the first nine months also reached a historic high for the same period. The performance of the main subsidiaries is as follows:
Fubon Life's September net profit was NT$11.56bn, representing a 240% YoY increase and record-high monthly profit in September. Cumulative net profit for the first nine months was NT$47.85bn. 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 stocks and funds. In the stock market, several major equity markets reached new highs in September. As the TAIEX remained at historically high levels, Fubon Life realized capital gains in domestic stock positions. In the bond market, the Fed cut interest rates by 25bps in September as the market expected, leading to a decline and subsequent range-bound in both US and Taiwan treasury yields. 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, driven by foreign capital inflows, the US dollar depreciated by 0.44% against the New Taiwan dollar in September. Fubon Life will continue to monitor the market and dynamically adjust hedging positions, aiming to effectively manage FX risks and increase FX reserve balance.
Fubon Life's cumulative standalone first year premium (FYP) reached NT$88.6bn and cumulative total premium (TP) reached NT$276.9bn, up 5% and 6% YoY, respectively, and both were estimated to rank the top 2 in the industry. Monthly FYP was NT$8.6bn, estimated to rank third in the industry, while TP was NT$28.3bn, up 3% YoY and estimated to rank second in the industry. As Fubon Life continued to focus the product strategy on regular-paid and protection policies, cumulative FYPE reached NT$41.5bn, up 8% YoY and estimated to rank second in the industry. Fubon Life's capital position remained decent, with equity to asset ratio over 10% and RBC ratio close to 400% as of September. Fubon Life will continue to closely monitor exchange rates and market movement, assessing potential impacts to ensure decent solvency position.
Taipei Fubon Bank's September net profit was NT$3.43bn and cumulative net profit for the first 9 months was NT$29.17bn, up 28% and 16%, respectively, both reaching historical high for the same period thanks to steady core business momentum. Cumulative net interest income and fee income increased 12% YoY and 13% YoY, respectively, resulting in double-digit growth in total revenue. Total loan balance increased 10% YoY, mainly driven by overseas, SME and personal loan growth. On fee income, cumulative wealth management fees grew double-digit YoY thanks to the contributions from mutual fund and regular-paid insurance product sales. Credit card spending increased steadily, benefiting from higher overseas travel demand and consumption. Asset quality remained benign. NPL ratio and coverage ratio were at 0.13% and 1,017%, respectively, as of September.
Fubon Insurance's September net profit was NT$0.88bn and cumulative net profit reached NT$5.10bn, up 49% YoY. The performance fully reflected improvements in business quality and the effectiveness of risk management strategies. The direct written premium in September was NT$5.03bn. Notably, engineering insurance was the outperformer with a growth of 93% YoY, driven by the expansion of green energy insurance opportunities. Cumulative direct written premium was NT$52.86bn, up 5% YoY. The market share in total direct written premium was 24.0%, continuing to lead the market.
Fubon Securities' September net profit was NT$1.16bn, mainly driven by the active trading volume in Taiwan stock market With average daily turnover of over NT$640bn. Brokerage income increased, and combined with underwriting revenue, monthly profit in September reached a record high. Moreover, net profit has exceeded NT$1bn for four consecutive months, while cumulative net profit of NT$7.63bn was the second highest for the same period.