永豐金控

SPH 2023 Net Revenues and Net Income Reached New Highs; ROE of 11.55% Maintained Above 10% for Three Consecutive Years

【2024.03.25】

SinoPac Holdings (SPH) 2023 net revenues of NT$53.9 billion (+14.1%YoY) and the net income of NT$19.76 billion (+23.8%YoY) both set new highs. Earnings per share were NT$1.62, return on equity (ROE) was 11.55%, and a book value per share was NT$15.22.

SPH 2023 net revenues reached historical new highs, mainly because Bank SinoPac achieved record-high profits and SinoPac Securities demonstrated a more than double growth rate. The net interest income of NT$24.44 billion decreased by 9.1% YoY due to rising funding cost. The net fee income of NT$14.75 billion grew by 6.3% YoY, mainly thanks to the increase in securities brokerage fee income and loan-related fee income. Other income of NT$14.71 billion (+127.5% YoY) was mainly contributed by the well-managed trading portfolios of Bank SinoPac and the capital gains of SinoPac Securities.

Bank SinoPac (BSP) 2023 net revenue, pre-provision operating profits, and net income set new highs. The net income of NT$16.07 billion (+9.2% YoY) was mainly driven by trading revenues. The BSP’s net income 3-year CAGR was 18%, which was better than the 10% of peers’ (subsidiary banks of TW-listed FHCs). The ROE of BSP also surpassed 10% for two consecutive years. Asset quality remained benign, with a mere NPL ratio of 0.10% and the NPL coverage ratio at 1350%.

SinoPac Securities (SPS) reported a 2023 net income of NT$3.84 billion (+142.4% YoY), mainly supported by capital gains that grew 1440.5% YoY and recurring income increased 6.1% YoY. In addition, SPS continued to develop diversified fee revenues. The 2023 wealth management fee income, including sub-brokerage, SBL, and trust, accounted for 35% of the total fee income.

The growth of the long-term profitability of SPH was better than other TW-listed FHCs. The SPH’s 2023 net income boasted a three-year CAGR of 17%, which was better than the other TW-listed FHCs of -2%. In terms of net zero progress, SPH’s SBTs were approved by SBTi in January 2024, and we will continue to strengthen decarbonization policy and assist clients in reaching net zero. Regarding green financing, BSP’s solar PV financing installed capacity reached 3.43GW with a market share of nearly 30%, and the solar financing loan balance reached NT$103.9 billion. By providing green products and net zero consultant service, we hope to expand the SME customer base and further enhance our competitiveness.