Fubon Financial Holdings (2881.TW): Asia Financials Corporate Day Takeaways

研报英文原文证据摘录

Fubon Financial Holdings (2881.TW): Asia Financials Corporate Day Takeaways

Equity Research

16 June 2026 | 9:55PM HKT

Fubon Financial Holdings (2881.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 Fubon’s IR team at our Asia Financials Corporate Day.

Investor questions focused on 1) investment asset allocation and impact on P/L, 2)

normalized ROE target, 3) recurring yield outlook, 4) life capital position, 5) rate

impact and bank outlook, and 6) dividend. Fubon targets a 10% ROE on both a net

profit and adjusted net profit basis, while believing that near-term support will be

driven by strong YTD equity market performance. Backed by robust internal capital

generation capabilities, Fubon remains confident in its capital position, and

reiterates its target of 40-50% payout ratio, based on adjusted net profit (including

equity realized gains and losses).

We are Neutral rated on Fubon. Our 12-month SOTP-based price target is NT$96.0,

implying 1.2X FY27E P/B and 10X FY27E P/E.

Key takeaways:

n Re investor questions on month-on-month profit volatility, Fubon attributed this

to market-to-market of its FVTPL assets. The company explained that within the

FVTPL assets, which is 10% of the investment book, c.2% is equity, while bond

and private equity investments each account for c.4%. Most of the 2% equity

allocation are short-term investments in domestic equity.

n Post the adoption of IFRS17, Fubon is targeting a 10% ROE on both net profit

and adjusted net profit basis, underpinned by stable CSM release and positive

investment spread. Company expects its near-term adjusted ROE to remain