Financial industry update - Significant profit surge for FHCs in April

Research evidence excerpt

Financial industry update - Significant profit surge for FHCs in April

Taiwan Equity | Financial

Sector Snapshot

Fubon Research Financial industry update

May 18, 2026

Significant profit surge for FHCs in April

1. Banking – Core operating momentum remains strong, profits expected to reach new

Market Weight

highs this year

2. Life Insurance – Recurring income expected to grow steadily

3. Securities – Taiwan equity trading value continues to expand, with explosive profit

growth outperforming other financial sectors

FHCs – FVTPL valuation gains drive profit performance

The 13 Taiwanese FHCs reported unaudited net profit of NT$103.3bn in April, up 137.5%

MoM and 359.5% YoY. The significant profit growth was mainly due to the average

monthly increase in the Taiwan listed/OTC stock price indices of 9.9% and 15.6% MoM,

Source: Google respectively, with total daily trading value reaching NT$1.2tn, up 11.2% MoM, 215% YoY,

which drove a multiple-fold increase in securities firms' profits. In addition, FVTPL

valuation gains on life insurance financial assets also rose sharply. Among our core

holdings, Cathay FHC delivered the best April profit performance, up 183.7% MoM, up

1006.2% YoY. CTBC, however, saw a profit decline of 28.8% MoM due to higher general

provisions resulting from faster loan growth at CTBC Bank, making it the only FHC with a

monthly profit decline. Cumulatively, the 13 FHCs’ 4M26 unaudited net profit reached

NT$291.47bn, up 63.2% YoY. Among our core holdings, Yuanta’s 4M26 profit performed

the best with 145.1% YoY growth, mainly due to cumulative profit growth at Yuanta

Bank/Yuanta Securities of 50.6% YoY/159.2% YoY, respectively, and Yuanta Life no longer

incurring losses. Considering the robust stock market, increased corporate capex, and