永豐金控

SPH 1Q24 Net Income Reached Quarterly New High with 3-Year CAGR of 16%; Annualized ROE was 14.35%, Continuing to Grow in Recent Years

【2024.05.23】

SinoPac Holdings (SPH) 1Q24 preliminary net revenues of NT$16.71 billion (+30.4%YoY) and the net income of NT$6.88 billion (+44.8%YoY) both set same-period new highs. Earnings per share were NT$0.56, return on equity (ROE) was 14.35%, and a book value per share was NT$15.93.

SPH 1Q24 net revenues reached quarterly new highs, mainly because both Bank SinoPac and SinoPac Securities grew significantly. The net interest income of NT$5.73 billion decreased by 9.2% YoY due to rising funding costs. The net fee income of NT$5.76 billion reached new highs and grew by 60.5% YoY, primarily thanks to the robust growth of securities brokerage, wealth management, and loan-related fee income. Other income of NT$5.22 billion (+79.0% YoY) was contributed by the well-managed trading portfolios of Bank SinoPac and the capital gains of SinoPac Securities.

Bank SinoPac (BSP) 1Q24 net income of NT$5.23 billion (+33.4%YoY) set a record-high quarter, mainly driven by net fee income and trading revenue. The BSP’s net income 3-year CAGR was 18.2%, which was better than the 14.9% of peers’ (subsidiary banks of TW-listed FHCs). The annualized ROE of BSP reached 11.95%, continuing to grow and exceed 10% in recent years. Asset quality remained benign. 1Q24 NPL ratio of 0.15% was equivalent to the industry average, and the NPL coverage ratio was 872%.

SinoPac Securities (SPS) reported a 1Q24 net income of NT$1.53 billion (+89.8% YoY). Thanks to bullish market sentiment, both capital gains (+64.6%YoY) and recurring income (+42.1%YoY) demonstrated evident growth. SPS has strived to develop diversified fee revenues. The 1Q24 brokerage fee income grew significantly due to the surging market turnover, and SPS’s market share of sub-brokerage also won first place mainly benefited from the vibrant U.S. capital markets. 1Q24 wealth management fee income, including sub-brokerage, SBL, and trust, accounted for 34% of the total fee income, contributing to the growth of recurring income.

The growth of the long-term profitability of SPH was better than other TW-listed FHCs. The SPH’s 1Q24 net income boasted a three-year CAGR of 16.0%, outperforming the combined -8.4% of other TW-listed FHCs. In terms of green financing, BSP’s solar PV financing installed capacity reached 3.59GW with a market share of nearly 30%, and the solar financing loan balance reached NT$111.1 billion (+24.1%YoY). In the future, we will continue to provide a full array of green services and maintain our pioneer position in Taiwan. Moreover, we will leverage our niche in green finance to expand to the overseas market.