CTBC FHC (2891 TT, NT$55.4) - Positive business outlook for subsidiaries, premium cash yield

Research evidence excerpt

CTBC FHC (2891 TT, NT$55.4) - Positive business outlook for subsidiaries, premium cash yield

Taiwan Equity | Financial

Company Snapshot

Fubon Research CTBC FHC (2891 TT)

May 20, 2026

_ Positive business outlook for subsidiaries, premium cash yield

Buy

Reiterate Buy, target price of NT$62, 11.2% upside

Price Target price

NT$55.4 NT$62 1. Better-than-expected 1Q26 EPS of NT$1.18

●Visit notes ○Initiating coverage 2 CTBC Bank’s profit to grow in double digits, hit new high in FY26

●Company update ○Earnings revision 3 Taiwan Life’s recurring income to climb steadily

○Earnings preview ○Rating change

Shares out. (mn) 20,178

Better-than-expected 1Q26 EPS of NT$1.18 Mkt cap (NT$mn) 1,033,110

Mkt cap (US$mn) 32,482 CTBC FHC posted 1Q26 net profit of NT$23.1bn, up 16.0% YoY, EPS of NT$1.18, and ROE of

FINI holding (%) 33.90 18.3%, a record high and better than expected. This was mainly due to CTBC Bank

Local IM holding (%) 15.39 benefiting from loan growth, NIM expansion, and strong WM business, resulting in net

Directors holding (%) 1.41

interest income (NII) and net fee income (NFI) climb by 23.6% YoY and 19.7% YoY,

52-week high (NT$) 55.90

52-week low (NT$) 32.22 respectively. Net profit reached NT$16.59bn, up 23.4% YoY, also a record high. Taiwan Life

Day-trading % 16% benefited from a one-off IFRS 15 gain of NT$3.7bn, increased investment income, and CSM

amortization, resulting in net profit of NT$7.75bn, up 38.5% YoY. CTBC FHC will distribute

ESG rating 8 Industry Rank 11/40 FY25 cash dividend of NT$2.5, implying a cash yield of 4.5%.

CTBC Bank’s profit to grow in double digits, hit new high in FY26

Benefiting from strong AI investment demand and rising corporate working capital needs,

CTBC Bank’s 1Q26 loans reached NT$4.5tn, up 10.5% YoY. In terms of NIM, driven by