Fourth Quarter 2022 Earnings Results


SPH 2022 Net Revenues and Pre-tax Net Income Both Reached New Highs; ROE of 10.08%


SinoPac Holdings (SPH) reported 2022 net revenues of NT$47.25 billion (+3.4%YoY) and net income of NT$15.96 billion (-1.5%YoY). Earnings per share were NT$1.40, return on equity (ROE) was 10.08%, and a book value per share was NT$13.53.

SPH 2022 net interest income of NT$26.90 billion (+21.6%YoY) was driven by the enlarging interest-earning assets and rising net interest margin of Bank SinoPac. The 2022 net fee income of NT$13.88 billion (-18.3%YoY) was due to the lower fee income of SinoPac Securities. The 2022 other income of NT$ 6.46 billion (-1.9%YoY), mainly stayed the same level as in 2021.

Bank SinoPac (BSP) reported 2022 net revenues of NT$36.77 billion (+19.7%YoY) and a net income of NT$14.71 billion (+28.9%YoY). Thanks to the steady growth of interest-earning assets and increasing net interest margin, 2022 net interest income hit a new high, growing 23.8% YoY. Total loans increased 11.5% YTD and SME loans grew 19.3%YTD. The percentage of SME loans reached 25.2%, demonstrating a better loan structure. Therefore, the full-year spread of 1.50% (+12bps YoY) increased for 2022, and NIM increased by 14bps YoY to 1.19%. The 2022 net fee income was down 1.9% YoY, better than the average (-6.8%) of bank subsidiaries of 14 listed financial holding companies. The 2022 other income increased 42.5% YoY, thanks to well-managed trading portfolios. Asset quality remained benign, with a mere NPL ratio of 0.11% and the NPL coverage ratio at 1208%.

SinoPac Securities (SPS) reported 2022 net revenues of NT$9.53 billion (-32.3%YoY) and a net income of NT$1.58 billion (-67.1%YoY). Due to lower market turnover and the sluggish capital market, both fee income and capital gains decreased. As of the fourth quarter of 2022, wealth management fee income, including sub-brokerage, SBL, and trust, accounted for 34.8% of total fee income. Thanks to the diversified fee revenues, the 2022 net fee income only dropped 27%YoY, which was lower than the decrease in the average turnover of the Taiwan Stock Exchange(-36% YoY).

Facing the challenging financial market in the past three years, SPH still demonstrated operating resilience. SPH 2022 net revenues and pre-tax net income both reached new highs; the ROE of 10.08% improved significantly and ranked first among 14 Taiwan-listed financial holding companies. Regarding sustainability performance, SPH’s ESG ratings have enhanced evidently and we are included in the DJSI World & Emerging Markets Indexes, MSCI ACWI ESG Leaders Index, and become a constituent of the Bloomberg Gender Equality Index. Our progress mainly resulted from clear strategies and effective implementation. Looking ahead, we will continue to follow our four major strategies- Digital, Cross border, Integration, and Sustainability, to further enhance our sustainable growth. 

Executive Summary
2022 SPH net revenues and pre-tax net income reached new highs with ROE at 10.08%

2022 NII grew 22% YoY, driven by enlarging interest-earning assets and better NIM

SPH’s total assets expanded as corporate loans and mortgage loans continued to grow
  • SPH 4Q total assets NT$2.59 trn, +3.3% QoQ; +8.6% YoY
  • BSP 4Q total loans NT$1.35 trn, +2.2% QoQ; +11.5% YoY
  • SPH 4Q CAR 122%; BSP consolidated BIS ratio 13.80%; Tier 1 ratio 11.16%  
Awards and Achievements

SPH and its subsidiaries won 89 awards in 4Q22 (223 awards in 2022). Some are listed below:

  • SPH was selected in the Dow Jones Sustainability World Index and Dow Jones Sustainability Emerging Markets Index for two consecutive years
  • SPH was ranked at A- in the Leadership Category by CDP for three consecutive years
  • SPH and BSP were honored by Taiwan Academy of Banking and Finance with the Best in Best Human Resource Development Award, Best Consumer Finance Award, Best Digital Finance Award, Best Corporate Trust Finance Award, and Inclusive Finance Promotion Award
  • SPH was honored by TCSA with Top 100 Sustainable Corporation Award, Sustainability Report - Platinum Award, Climate Leader, Gender Equality Leader, and Innovative Growth Leader Award
  • BSP was honored by Bureau of Energy, Ministry of Economic Affairs (R.O.C.) with Top Solar System Awards for seven consecutive years
  • SPS was honored by The Asset Triple A Private Capital Awards 2022 with Editors' Triple Star - Equity Swap Electronic Trading Platform