Mega Financial Holdings (2886.TW): Asia Financials Corporate Day Takeaways

Research evidence excerpt

Mega Financial Holdings (2886.TW): Asia Financials Corporate Day Takeaways

Equity Research

29 June 2026 | 9:01PM HKT

Mega Financial Holdings (2886.TW): 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 Mega FHC IR team at our Asia Financials Corporate Day.

Investor questions focused on 1) drivers of bank NIM improvements, 2) fee income

growth, 3) securities leverage and capital position, and 4) M&A strategy. Mega sees

sequential NIM improvements YTD, driven by lower FCY funding cost and higher FCY

loan growth. Fee income growth has exceeded expectations, and Mega aims to

leverage its corporate banking relationships to facilitate wealth management

expansions, which supports further fee income growth.

We are Sell-rated on Mega and our 12-m target price is NT$35.5.

Key takeaways:

n Bank NIM continued to improve, after 8bps qoq expansion in 1Q26, driven by a

combination of 1) lower FCY funding cost following Fed rate cuts in previous

years, and 2) faster FCY loan growth. For FY26, Mega targets a FCY LDR of

40-43%.

n Re increased volatility in monthly profit, Mega attributed it to strong profit

contribution from Mega Securities and Mega Bills, which benefited from the

strong equity market and volatility in short-term rates. In May, this was partially

offset by higher provisions. But Mega expects asset quality to remain stable and

maintained FY26 credit cost target of 10-12bps.

n YTD fee income growth has exceeded expectations, driven by robust wealth

management demands. Notably, Mega highlighted the successful onboarding of

its first family office client in 2026, as the company aims to expand in the HNW

segment.