Yushan Financial Holdings Reports Record High After-Tax Profit in Q1 2022: 6 Key Takeaways from Legal Person Briefing Meeting

Yushan Financial Holdings (2884) held the 1st quarter legal person briefing meeting today (9), which was hosted by the general manager Chen Meiman. During the meeting, it also announced that the after-tax profit in the first four months of this year was 7.59 billion yuan, an annual increase of more than 50%. The surplus was 0.53 yuan, setting a new high in the same period over the years. The following are the six key points of today’s Fa Conference.

Key point 1: This year’s profit has reached a new high, and the shareholder return rate has returned to double digits at 12%.

Yushan Gold’s today’s law conference also announced the self-consolidated surplus in April. In that month, the one-time expense of cash capital increase employee stock subscription was recognized as 455 million yuan, and the net profit after tax settlement in April was 1.56 billion yuan. The profit was 7.59 billion yuan, an annual increase of 56.1%, setting a record for the highest profit in the same period of the year. The company said that it was mainly benefited from investment evaluation and financial operations, as well as the recovery of wealth management fee income.

The law said that the first quarter of this year’s financial holdings and bank profits both hit record highs in a single quarter. Yushan Gold’s after-tax net profit was 6.04 billion yuan, an increase of 39.7% over the same period last year, and EPS was 0.42 yuan. The return on shareholders’ equity is ROE 12.03%.

The main profit came from its subsidiary Yushan Bank, which contributed RMB 5.498 billion in the first quarter, with an annual growth rate of 49.7%. Yushan Jin said that the growth of foreign exchange, fixed income and other income this quarter was mainly due to the rebound in the evaluation of bills and bonds in the first quarter and the proper operation of the money market.

Key point 2: Net value per share rose to 14.34 yuan Double leverage and capital adequacy ratio reached the standard

In terms of financial indicators and asset quality, according to Yushan Jinfa’s report, in the first quarter of this year, the financial double leverage ratio of financial holdings was 102.9%, and the capital adequacy ratio was 127.54%. The net share value is 14.34 yuan, which is higher than the 13.8 yuan at the end of the past year.

Key point 3: Exports slow down but deposits and loans continue to grow

Yushan Gold said that the global economy will slow down in the first quarter of 2023. Taiwan’s export industry will adjust its inventory due to inventory adjustments, resulting in a decrease in the overall demand for loans in this quarter. Yushan will provide corporate financing, cross-border cash flow, interest rate hedging, etc. in response to changes in the market environment. For services, the balance of loans increased by 5.6% year-on-year, the balance of corporate loans increased by 5.3% year-on-year, and the balance of total deposits increased by 5.6% year-on-year.

In addition, Yushan joins hands with enterprises to carry out low-carbon transformation, actively discusses mergers with enterprises to assist in setting goals, and helps enterprises develop long-term sustainable competitiveness through ESG linked loans. The balance of ESG linked loans has grown by 83.8% year-on-year , the overall perpetual credit balance accounted for 34.8% of the overall fiat lending. In the environment of rising interest rates, Yushan has demonstrated good risk management capabilities. At the end of the first quarter, the overdue loan ratio (NPL) was 0.17%, and the provision for bad debt coverage was 695.9%, maintaining good asset quality.

Key point 4: Overseas spending by credit card has grown significantly by 70% Xingyu co-branded card fermented in the second half of the year

Net income in the first quarter was 15.8 billion yuan, of which net fee income was 4.94 billion yuan, an annual decrease of 4.4%. However, the net credit card revenue was 1.64 billion yuan, an annual growth rate of 12.3%, and double-digit growth for three consecutive quarters.

The amount of spending increased by 10.6%, and the amount of overseas travel spending increased by 70%. Jade Mountain and Xingyu Airlines have joined hands to issue the “Jade Mountain Xingyu Airlines Co-branded Card”, which has received a lot of response from the market. It has grasped the high-quality aviation and business travel customers, and it is expected to ferment in the second half of the year.

Key point 5: Financial management income is the same as last year, insurance and high-level financial management increased by 20% year-on-year

Wealth management net income was 2.21 billion yuan, roughly the same as the same period last year, of which insurance fees increased by nearly 20% compared with the same period last year. Yushan newly established a “financial planning specialist” grade to guide colleagues to improve financial management and inheritance planning capabilities, focusing on taxation and Customer management. In addition, Yushan provides complete wealth management services in Hong Kong and Singapore, cooperates with the establishment of financial management 2.0 business, and assists customers in overall asset allocation. The number of customers with an asset management scale (AuM) of more than 100 million yuan and AuM both increased by nearly 20%.

Key point 6: Quanying Payment has exceeded one million members

In the development of digital finance, the number of members of “Quanying Payment” jointly established by Yushan, a leading supermarket and e-commerce group has exceeded one million. On the basis of more than 80% of the digital sales of various core financial services, Yushan further deepens the customer experience, and modularizes the common process through the integrated application platform. Customers can apply for multiple products at the same time, and at the same time combine multiple authentications such as biometrics mechanism to reduce the chance of forgetting passwords and improve the experience and convenience of using digital financial services.

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• Ye Yiru, Special Correspondent of Yahoo Finance: 22 years of experience in financial mainstream media, from the bubble of Web1.0 in 2000 to Web3.0 of the Meta universe, witnessed the history of the rise and fall of large and small business groups in Taiwan, and experienced five international financial crises. Think that finance is life, omnipresent, no matter how difficult financial management knowledge should be explained in a simple way. No matter you are young or old, you should manage money. If you don’t manage money, money will ignore you.