永豐金控

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

【2023.03.28】

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.