SinoPac Holdings (2890.TW, Not Covered): Asia Financials Corporate Day Takeaways

Research evidence excerpt

SinoPac Holdings (2890.TW, Not Covered): Asia Financials Corporate Day Takeaways

Equity Research

22 June 2026 | 12:19PM HKT

SinoPac Holdings (2890.TW, Not Covered): Asia Financials Corporate

Day Takeaways

Thomas Wang

+852-2978-1697 |

thomas.wang@gs.com

Goldman Sachs (Asia) L.L.C.

Simone Chen

+852-2978-0619 |

simone.chen@gs.com

Bottom line: We hosted SinoPac CFO and IR team at our Asia Financials Corporate

Day. Investor questions focused on 1) outlook for loan growth, NIM and fee income

growth in banking operations, 2) securities growth and capital needs, and 3)

dividend plan. SinoPac targets MSD to HSD loan growth and projects a 2-3bps NIM

expansion in FY26E, supported by higher margin FCY loan book growth. Benefiting

from strong domestic equity market performance, securities profit nearly doubled in

1Q26, and company is actively managing its capital position to further support

business expansion, leveraging sub-debt issuance and syndicated loan as capital

supplement tools. Regarding dividend, SinoPac maintained payout ratio guidance of

65-70%.

Key takeaways:

n Loan: 1Q26 loan balance grew by 5% (vs. FY25), driven by strong momentum in

the corporate segment (+8%). SinoPac is targeting mid- to high-single-digit

credit book expansion, with a clear focus on quality growth. Corporate loan

growth is expected to drive overall portfolio expansion, while mgmt targets

low-single-digit growth on the mortgage side.

n NIM: Adjusted NIM expanded by 1bps to 1.45% in 1Q26, and mgmt anticipates a

2-3bps adjusted NIM yoy expansion in FY26E, supported by the growth of

higher-margin FCY loans. Regarding sensitivity to potential rate hikes, the bank

expects a 25bps Fed rate hike to yield a 0.8bps adjusted NIM improvements,