Hua Nan FHC 1Q26 results ahead driven by non-banking operations

研报英文原文证据摘录

Hua Nan FHC 1Q26 results ahead driven by non-banking operations

J P M O R G A N Asia Pacific Equity Research

28 May 2026

Hua Nan FHC Underweight

2880.TW, 2880 TT

1Q26 results ahead driven by non-banking operations Price (28 May 26):NT$29.60

Price Target (Dec-26):NT$27.60

HNFHC’s 1Q26 results came in ahead of our expectations due to better-than- Asia Financials

ACexpected earnings performance at the securites and P&C insurance operations. We Jemmy S Huang

retain our UW rating as we expect earnings momentum to moderate in 2H26 and (886-2) 2725-9870

lag behind peers. jemmy.s.huang@jpmorgan.com

J.P. Morgan Securities (Taiwan) Limited/ J.P.

• Group 1Q26 profits of NT$7.7bn were up 44% YoY and implied an MorganMorgan SecuritiesBroking (Hong(AsiaKong)Pacific)LimitedLimited/ J.P.

annualized ROE of 12.8%; more than 400%/50% earnings growth at HNSec Amanda Chang

and HNP&C were the key drivers, while HNCB delivered 18% earnings (886-2) 2725-9861

growth supported by 11% PPOP growth and lower credit costs. amanda.chang@jpmorgan.com

• What was negative: sequential margin contraction at HNCB and J.P. Morgan Securities (Taiwan) Limited Katherine Lei continued market-share loss at HNSec. Reported NIM inched up 1bp QoQ

(852) 2800-8552

in 1Q26, benefitting from rising LDR in the FCY portfolio, but adjusted NIM katherine.lei@jpmorgan.com

was down 6bps during the quarter as a result of a more than 30% contraction J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

in swaps revenues; management guided for incremental upside on reported Morgan Broking (Hong Kong) Limited

NIM based on the expectation of 25bps rate cuts in Dec and no rate changes in

Taiwan, while maintaining guidance of a 20-30% YoY decline in swaps

revenues in FY26. Despite strong earnings performance at HNSec, we note its