永豐金控

SPH 9M24 net income of NT$18.5 billion and total assets of NT$3.1 trillion both attained record levels

【2024.11.14】

SinoPac Holdings (SPH) 9M24 preliminary net revenues of NT$50.05 billion (+22.0% YoY) and net income of NT$18.50 billion (+17.7% YoY) both continued to reach the same-period new highs. Earnings per share were NT$1.46, the annualized return on equity (ROE) was 12.60%, and the book value per share was NT$16.06.

SPH 9M24 net revenues of NT$50.05 billion reached historical new highs due to the contribution of Bank SinoPac and SinoPac Securities. The net interest income of NT$18.85 billion increased by 1.2% YoY due to the recovery of the price and volume of interest-earning assets. The net fee income of NT$15.80 billion surged by 37.3% YoY. The momentum of fee income continuously came from robust securities brokerage and wealth management businesses. SPH strived to enhance capital efficiency and achieve synergies through cross-subsidiary integration. The 9M24 annualized return on assets (ROA) reached 0.84%, driving total assets to exceed NT$3.1 trillion with the 2018-9M24 compound annual growth rate (CAGR) of 12.2%.

Bank SinoPac (BSP) 9M24 net income of NT$14.43 billion set a same-period new high because net interest income, net fee income, and trading income all reported growth. 9M24 net income grew by 13.7% YoY, a 3-year CAGR of 16.9%, and a 5-year CAGR of 12.8%, all outperforming our peers (other subsidiary banks of TW-listed FHCs.) In terms of capital efficiency, both the ROA of 0.72% and the ROE of 10.79% demonstrated significant improvement in the past few years. Asset quality remained benign with the 3Q24 NPL ratio of 0.13% and the NPL coverage ratio of 1042%.

SinoPac Securities (SPS) 9M24 net income of NT$4.54 billion (+48.4% YoY) hit a same-period new high, with the capital gains and recurring income boasting evident growth of 50.5% and 38.9% YoY, respectively. The ROE of 17.03% also soared to new records. SPS has strived to develop diversified fee revenues. The wealth management fee income, including sub-brokerage, SBL, and trust, has continued to grow for nine consecutive quarters. In 9M24, the wealth management fee income accounted for 33.0% of the total fee income. Although the Taiwan stock market average daily turnover dropped 6% QoQ in the third quarter, SPS’s net fee income reached a quarterly high.

SPH has continued to cultivate our green finance ecosystem. As of September 2024, BSP’s solar financing loan balance reached NT$123.16 billion (+25.3% YoY), with a financed installed capacity of 3.9 GW and a market share of around 28% in Taiwan. Moreover, we offer comprehensive services, which has become the niche for expanding SMEs customers. As of the third quarter, BSP’s loan balance for SMEs accounted for 25.8% of total loans. Looking forward, SPH will leverage our advantages in green finance into the overseas markets and support more countries in developing green energy.