Changhua Bank’s Plans for increasing Financial Income and Investment in High-yield Stocks

Changhua Bank (2801-TW) Today (29) will be held the first season of online lectures. Chang Yin executives said that the interest rate hike cycle is expected to come to an end. In order to increase financial income, the bank plans to cover the maturity of bonds in the third quarter. As for the stock market, it will lock in the layout of high-yield and promising stocks to increase income.

With the stabilization of stocks and bonds, Zhangyin’s investment income in the first quarter of this year was 470 million yuan, which was more than double that of the same period last year; the stock and bond evaluation income also rebounded to 2.4 billion yuan, considering that there will be more in the third quarter. The bonds are about to expire, and banks will grasp the trend of the end of the interest rate hike cycle, actively cover the bonds that have expired, and target investment-grade bonds with good ratings.

Benefiting from the interest rate hike in the United States, the bank’s SWAP income in the first quarter of this year was aboutNew Taiwan dollar 2.2 billion, an increase of more than 10 times compared with the same period last year. Zhangyin director said that it is expected that the Federal Reserve will soon come to an end to raise interest rates, and SWAP will strictly control and evaluate risks in the future.

Regarding the real estate market, Zhang Yin’s director said that due to the central bank’s continuous interest rate hikes and policies to crack down on hype, the transaction volume in the real estate market has cooled down significantly recently, and housing prices have also shown signs of loosening; The pressure on financing loans has increased, and the view on civil construction financing in the second half of the year is relatively conservative.

Zhang Yin believes that the housing market transactions in the second half of the year will be dominated by rigid demand, among which first-time buyers and self-occupied mortgages will be the focus of the bank’s cultivation; in addition, in order to increase the market share of banks’ mortgages, they will also strive for the whole batch of high-quality builders loan.

Zhangyin’s first-quarter profit was multiplied by the continuous expansion of the interest rate gap between Taiwan and the United States. The after-tax net profit reached NT$3.452 billion, a substantial increase of 45.21% over the same period last year, and the net profit per share was 0.33 yuan. 0.38% in the first quarter dropped to 0.18% in the first quarter, and the coverage ratio increased to 693.87%. Under the strengthened risk control, it is expected to maintain good asset quality in the second half of the year.

Zhang Yin said that the core business of deposits grew steadily in the first quarter, and as the overseas epidemic slowed down and economic activities picked up, overseas loans increased by nearly 30% compared with the same period last year, among which the growth rate was the largest in Europe and the United States, followed by Asia .