Fubon Gold (2881) announced today (10th) its profits for March and the first quarter, falling to second place. There are two main reasons. First, its subsidiary Fubon Life was optimistic about the stock market and did not want to actively sell stocks, so it made a single-month profit of 4.09 billion yuan, which was less than China Life and Nanshan Life Insurance. Second, it recognized a decrease in the fair value of German real estate, which jointly made the financial holding profit in March 80.05 100 million yuan, cumulative profit and earnings per share of 2.33 yuan, both lost to Cathay Gold (2882), only ranked second, but if compared with the same period last year, it still has more than doubled the growth rate.
There are two main reasons why Fubon Gold fell to second place in profit in the first quarter.Picture/Provided by Fubon Gold
Fubon Life’s net profit after tax in March 2024 was 4.086 billion yuan, and the cumulative net profit after tax was 17.436 billion yuan. The profit in the first quarter increased by 141% compared with the same period last year. However, compared with its peers China Life Insurance Co., Ltd., which earned 12.5 billion yuan in a single month, and Nanshan Life Insurance Co., Ltd., which earned 7.1 billion yuan, Fubon Gold’s monthly profits were slightly lower.
Shouhao stock market still has 40 billion yuan in unrealized profits if it does not sell stocks
Fubon Life explained that the main sources of investment income this month were interest income, domestic and foreign stock and fund capital gains. In terms of the stock market, the weighted index of Taiwanese stocks hit a new high in March, looking for opportunities to realize capital gains. In addition, the various private equity funds invested in have unrealized profits of more than 40 billion, but they have not actively realized profits because the market outlook is still optimistic.
The fair value of German real estate has been reduced by nearly 6 billion
Due to the increase in the value of domestic and foreign stocks, various private equity funds, etc., Fubon Life’s other interests in its overall financial assets have been converted into net unrealized interests. In addition, the U.S. dollar appreciated by approximately 1.31% against the Taiwan dollar in March, contributing to exchange gains for the month. In terms of real estate, the lease period of German real estate is approaching. Based on the conservative and prudent principle, the fair value of German real estate was recognized to be reduced by nearly 6 billion in March, resulting in a single-month profit being adversely affected.
Banks and securities hit record highs
Subsidiaries Taipei Fubon Bank and Fubon Securities’ single-month and cumulative after-tax net profits for the first three months both hit record highs for the same period in previous years. Taipei Fubon Bank’s after-tax net profit in March 2024 was 2.393 billion yuan, a record high for March in previous years. The cumulative after-tax net profit was 8.164 billion yuan, an increase of 21% over the same period last year. The cumulative profit continued to hit a record high, mainly from various business scales. Stable improvement. Net interest income and net fee income increased by 14% and 51% respectively compared with the same period last year.
Fubon Property & Casualty Insurance’s net profit after tax in March 2024 was 461 million yuan, and its cumulative net profit after tax was 1.348 billion yuan. Fubon Securities’ after-tax net profit in March 2024 was 929 million yuan, an increase of 18% from the previous month. The main reason was that the Taiwan stock index continued to break the record high in March (20,397 points in the intraday session on March 26), breaking through the 20,000 mark, the first day in a single month. The average value reached NT$600 billion; the cumulative net profit after tax in the first three months was NT$2.344 billion, a significant increase of 51% over the same period last year. Benefiting from the overall increase in Taiwan stock prices this year, securities brokerage, financial management, underwriting and self-operated positions made profits. Both have grown significantly compared with the same period last year, continuing to set new records for March single and cumulative first quarter net profit after tax.
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Yahoo Finance special correspondent Ye Yiru: With more than 20 years of experience in mainstream financial media, from the Web1.0 bubble in 2000 to the Meta Yuanverse Web3.0, he has witnessed the rise and fall of Taiwan’s large and small business groups, and has experienced five international financial crises. We believe that finance is life and is everywhere. No matter how difficult financial knowledge is, we should explain it in a simple way. Everyone, young and old, should manage money. If you don’t manage money, money will not care about you.
2024-04-10 11:34:49
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