永豐金控

Both SPH 6M22 Net Revenues and Pre-tax Income Reached New Highs; Annualized ROE of 10.67%

【2022.8.31】

SinoPac Holdings (SPH) 6M22 net revenues of NT$24.1 billion (+5.3%YoY) and pre-tax income of NT$10.0 billion (+3.0%YoY) both set new highs. Net income of NT$8.2 billion (-4.2%YoY) with earnings per share of NT$0.72, an annualized return on equity (ROE) at 10.67%, and a book value per share of NT$13.15.

SPH 6M22 net interest income of NT$12.6 billion (+17.2%YoY) was driven by the enlarging interest-earning assets and rising net interest margin of Bank SinoPac. The net fee income of NT$8.4 billion (-8.6%YoY) was due to the lower fee income of SinoPac Securities despite the strong fee income of Bank SinoPac.

Bank SinoPac (BSP) reported record-high 6M22 net revenues of NT$18.7 billion (+20.9%YoY) and a net income of NT$7.5 billion (+27.0%YoY). Thanks to the steady growth of interest-earning assets and improved net interest margin, 6M22 net interest income hit a new high, growing 17.5% YoY. The CASA ratio of 57.9% (+2.1p.p.QoQ) and robust SME loan growth (+8.3%YTD) demonstrated a better deposit and loan structure. Therefore, the spread of 1.55% (+13bpsQoQ; +19bpsYoY) increased for the eighth consecutive quarter, and NIM increased 11bps QoQ to 1.19%. The record-high 6M22 net fee income rose 15.6% YoY, mainly supported by wealth management and loan-related revenues. The 6M22 other income increased 62.7% YoY, thanks to well-managed trading portfolios. Asset quality remains benign, with an NPL ratio of 0.11% and the NPL coverage ratio at 1,194%. Capital level stays solid with a BIS ratio of 14.61%, Tier 1 ratio of 11.75%, and CET1 ratio of 9.78%.

SinoPac Securities (SPS) reported 6M22 net revenues of NT$4.9 billion (-28.8%YoY) and a net income of NT$0.89 billion (-63%YoY). Due to lower market turnover and sluggish capital market, both fee income and capital gains decreased. However, SPS’s brokerage market share increased 0.14 p.p. YoY, and average margin trading loans increased 12.6% YoY, demonstrating SPS’s strong resilience stemming from continuously expanding diversified revenues and fortifying digital transformation.

In the past five years, by effectively executing business strategies, the ROE rankings of SPH, BSP, and SPS have continued to improve. SPH’s ROE ranked 13th in 2017 among Taiwan 15 listed financial holding companies and improved to the 5th in the first quarter of 2022. SPH has also been recognized in several prestigious ESG indexes. SPH will continue to follow the four major strategies for 2022-2024: “Digital, Cross-border, Integration, and Sustainability,” and hopes to deliver better performance in the future. In July, SPH also announced the corporate vision of "Together, a better life." to build an internal consensus by sharing the values of co-creation and to pursue sustainable growth and a brighter future.