Fourth Quarter 2021 Earnings Results
SPH 2021 Net Income Reached An All-time High; EPS of NT$1.43; ROE of 10.15%
【2022.3.3】
SinoPac Holdings (SPH) posted 4Q21 preliminary net revenues of NT$10.54 billion (-13.9%QoQ; +9.7%YoY) and net income of NT$3.38 billion (-19.8%QoQ; +12.3%YoY). SPH 2021 net income of NT$16.17 billion (+32.1%YoY) set a new high, with earnings per share of NT$1.43, return on equity (ROE) at 10.15%, and a book value per share of NT$14.44.
SPH 2021 net interest income of NT$22.09 billion (+19.4%YoY) was mainly driven by the enlarging interest-earning assets and decreasing funding cost of Bank SinoPac. The net fee income of NT$17.02 billion (+20.9%YoY) was contributed by brokerage fee revenues boosted by growing market turnover.
Bank SinoPac (BSP) reported 2021 preliminary net revenues of NT$30.70 billion (+9.9%YoY) and net income of NT$11.38 billion (+16.6%YoY). The CASA ratio of 54.4% (+1.8p.p. YoY) and robust SME loan growth (+15.8%YTD) demonstrated a better deposit and loan structure. Therefore, the spread of 1.40% (+2bpsQoQ; +10bpsYoY) increased for the sixth consecutive quarter, and NIM increased 3bps YoY to 1.06%. Thanks to the steady growth of interest-earning assets and improved net interest margin, the net interest income continued to hit a new high. The 2021 net fee income also grew 6.7% YoY, mainly supported by wealth management and loan-related revenues. Asset quality remains benign, with an NPL ratio at 0.13% and the NPL coverage ratio at 1026.5%. Capital level stays solid with a BIS ratio of 15.78%, Tier 1 ratio of 12.66%, and CET1 ratio of 10.99%.
SinoPac Securities (SPS) reported 2021 preliminary net revenues of NT$14.07 billion (+38.1%YoY) and net income of NT$4.81 billion (+67.3%YoY) with an ROE of 15.55%. In addition to strong growth in brokerage fee revenues, SPS’s brokerage market share and average margin trading loans increased 0.18% YoY and 73.9% YoY, respectively. As a result, SPS 2021 net fee income reached a new high, and the recurring income surged to NT$12.35 billion (+38.7%YoY).
SPH has strived to implement its strategies in recent years, leading profits to continue hitting new highs. In 2021, SPH was included in the DJSI Emerging Markets Index, ranked the "Leadership A-" level for Carbon Disclosure Project, and honored with multiple ESG awards. Looking forward from 2022 to 2024, SPH will focus on four major strategies of Digital, Cross-border, Integration, and Sustainability to improve operating efficiency and pursue sustainable growth continuously.
| Executive Summary |
| 2021 SPH net income grew 32.1% YoY with ROE at 10.15% |
| Both NII and net fee income continued reaching record highs contributed by enlarging interest-earning assets, lowering funding cost, and prosperous brokerage business |
| SPH total assets increased to NT$2.4 trn and maintained solid capital |
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| Awards and Achievements |
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SPH and its subsidiaries won 73 awards in 4Q21 and cumulated 174 awards in 2021. Some are listed below:
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