永豐金控

SPH 6M24 Net Income of NT$12.20 billion grew by 20.8% YoY; Annualized ROE of 12.84% was the best level since SPH was established

【2024.08.21】

SinoPac Holdings (SPH) 6M24 preliminary net revenues of NT$32.90 billion (+23.8% YoY) and net income of NT$12.20 billion (+20.8% YoY) both continued reaching same-period new highs. Earnings per share were NT$0.99, the annualized return on equity (ROE) was 12.84%, and the book value per share was NT$15.67.

SPH 6M24 net revenues of NT$32.90 billion reached historical new highs due to significant growth of Bank SinoPac and SinoPac Securities. The net interest income of NT$11.86 billion decreased by 5.0% YoY due to rising funding costs. The net fee income of NT$10.72 billion increased by 44.3% YoY, primarily thanks to the substantial growth of securities brokerage, wealth management, and loan-related fee income. Other income of NT$10.33 billion (+55.0% YoY) was mainly contributed by the well-managed trading portfolios of Bank SinoPac and the capital gains of SinoPac Securities.

Bank SinoPac (BSP) 6M24 net income of NT$9.74 billion set a same-period new high, mainly driven by net fee income and trading revenues. 6M24 net income increased by 17.6% YoY, which outperformed the 8.7% of peers (other subsidiary banks of TW-listed FHCs); the 3-year and the 5-year CAGR also demonstrated double-digit growth rates. In terms of capital efficiency, both the annualized return on assets (0.75%) and the ROE (11.23%) had a significant improvement in the past few years. Asset quality remained benign. 2Q24 NPL ratio of 0.12% was better than the industry average, and the NPL coverage ratio was 1098%.

SinoPac Securities (SPS) 6M24 net income of NT$2.91 billion (+68.5% YoY) and annualized ROE of 16.75% both reached same-period new highs. Capital gains and recurring income boasted evident growth of 60.5% and 43.2% YoY, respectively. Thanks to the bullish market sentiment, the brokerage fee income has experienced significant growth, and market share in retail sub-brokerage business has remained in first place. The wealth management fee income, including sub-brokerage, SBL, and trust, has thrived in the last three years. In 6M24, the wealth management fee income accounted for 32.6% of the total fee income.

SPH has continued to cultivate our green finance ecosystem. As of June 2024, BSP’s solar financing loan balance reached NT$118.22 billion (+24.7% YoY), with the financed installed capacity of 3.7GW and market share of around 28%. As of 2023, BSP’s loan balance for SMEs accounted for 48.5% of the corporate loan balance and grew at a three-year CAGR of 13.7%. Look ahead, SPH hopes to support SMEs and enhance customer journey through unique green services and customer-centric strategies. By promoting inclusive growth with SMEs, SPH aims to increase customer loyalty and improve our deposit and loan portfolios.