Q1 2026 Cathay Financial Holding Co Ltd Earnings Call Transcript
Key Points
- Cathay Financial Holding Co Ltd (TPE:2882) reported a strong start to 2026 with a net income of TWD31.7 billion and an adjusted net income of TWD48.6 billion.
- Cathay United Bank achieved a new first-quarter record for net income, with an 8% year-on-year increase, supported by solid loan and deposit growth.
- Cathay Life's adjusted net income reached the second highest first-quarter level historically, driven by robust new business and a stable positive spread.
- The company's subsidiaries, including Cathay Century, Cathay SITE, and Cathay Securities, delivered record high first-quarter earnings, reflecting steady premium growth and market share gains.
- A cash dividend of TWD3.5 per share was approved, representing a 49.6% payout ratio and a 4.7% dividend yield, highlighting the company's focus on shareholder returns.
- The adoption of IFRS 17 has led to changes in the presentation of valuation gains and losses, reducing comparability with previous financial figures.
- Net fee income decreased by 2% year-on-year, primarily due to a one-off adjustment related to credit card reward redemption.
- Offshore earnings slightly declined year-on-year to TWD2.6 billion, attributed to a higher investment income base last year.
- The annualized credit cost increased to 25 basis points, mainly due to a higher recovery base last year and increased general provisions on strong loan growth.
- The FX hedging cost increased to 1.26%, higher year-on-year, due to changes in FX accounting and the absence of the FX validity reserve accounts in the previous year.
Welcome, everyone, to Cathay Financial Holding Company first-quarter 2026 conference call. (Operator Instructions) And now I would like to introduce Mr. C.K. Lee, CEO of Cathay Financial Holding Company. Mr.
Lee, please begin.
Okay. Thank you. Good afternoon and good morning to those joining us from Europe. Welcome to Cathay Financial Holdings 2026 first-quarter analyst meeting. I am C.K. Lee, CEO of Cathay Financial Holdings and I will host today's meeting. Let me begin by introducing the senior executives with us today. Ms. Grace Chen, CFO of Cathay Financial Holdings; Mr. Abel Lin, President of Cathay Life; Mr. Robert Fuh, EVP of Cathay United Bank.
Before I begin the presentation, let me share some key highlights. We delivered a steady start to the year in the first quarter Cathay Financial Holding reported net income of TWD31.7 billion. And adjusted net income reached TWD48.6 billion. Core business momentum remains strong across the group. Cathay
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