Q1 2026 CTBC Financial Holding Co Ltd Earnings Call Transcript
Key Points
- CTBC Financial Holding Co Ltd (TPE:2891) reported a record high after-tax net profit of TWD23.1 billion, up 16% YoY.
- The company declared a dividend of TWD2.5 per share, with a payout ratio of 61.3% and a dividend yield rate of approximately 4.56%.
- CTBC Bank's after-tax net profit reached TWD16.6 billion, up 23% YoY, driven by strong loan growth and NIM expansion.
- Overseas business contributed significantly, with a pretax profit of TWD7.1 billion, accounting for 35% of the bank's overall profit.
- Taiwan Life reported an after-tax net profit of TWD7.8 billion, driven by investment income and strong growth in traditional and investment-linked policies.
- The cost of liabilities for Taiwan Life, including participating policies, was 2.44%, which may impact profitability.
- The company's NPL ratio increased slightly due to issues with American subsidiaries' loans, although collateral value is expected to cover potential losses.
- CTBC Financial Holding Co Ltd (TPE:2891) faces challenges in maintaining deposit growth amidst a tight market supply.
- The hedging cost for Taiwan Life increased to 1.24% in Q1, which is higher than the previously guided range of 1.1% to 1.2%.
- The company's exposure to certain risks, such as geopolitical tensions and supply chain restructuring, could impact future performance.
Welcome to CTBC Holding 2026 Q1 earnings call. Today's meeting will be chaired by Rachael Kao, President of CTBC Holding. Also present are Megan Hsu, CFO of CTBC Holding; Pai-Hung Yeh, CSO of Taiwan Life; and Justine Shen, Head of IR of CTBC Holding.
(Operator Instructions) Now I'd like to invite President Kao to give her opening remarks.
Good afternoon, distinguished investors and media guests. Thank you for attending CTBC Holding 2026 Q1 Earnings Call. CTBC Holding delivered impressive performance in Q1. Pretax net profit reached TWD28.3 billion. After-tax net profit, TWD23.1 billion, which is a new record YoY and up 16% YoY. EPS, TWD1.18. ROE was 18.3%, which is high. Overall, CTBC Holding has maintained sound fundamentals, while growth momentum continues to improve.
The BOD passed the TWD2.5 per share dividend based on the stock price yesterday. The dividend yield rate is roughly 4.56% and the payout ratio is higher than 60%, which is 61.3%. So
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