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Financial sector's pretax profits surge 25% in first 10 months

12/10/2023 06:56 PM
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CNA file photo
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Taipei, Dec. 10 (CNA) The banking, securities and futures, and insurance sectors combined for pretax profits in the first 10 months of 2023 that were up more than 25 percent from the same period a year earlier.

The three financial service sectors garnered aggregate pretax profits of NT$726.98 billion (US$23.11 billion), up 25.6 percent from a year earlier and also more than for 2022 as a whole, according to data compiled by the Financial Supervisory Commission (FSC).

Taiwan's banking sector comprises domestic banks, local branches of foreign and Chinese banks, credit cooperatives, bills finance companies and Chunghwa Post Co.'s savings & remittances department.

The insurance sector is mainly made up of life insurance and property & casualty insurance companies.

The banking sector had pretax profits of NT$453.26 billion in the first 10 months 2023, up 23.1 percent year-on-year. It was the highest profit total for the same period in history and also exceeded the sector's pretax profits for all of 2022.

Pretax profits for domestic banks, foreign bank branches and credit cooperatives during the 10-month period all surpassed their numbers for 2022 as a whole.

Chinese bank branches in Taiwan, bills finance companies and Chunghwa Post Co.'s savings & remittances department, however, all saw their pretax profits decline during the period, according to the FSC data.

Lin Chih-chi (林志吉), deputy director of the FSC's Banking Bureau, said the profits of domestic and foreign banks were mainly boosted by gains from investments and other income growth, while net interest income drove credit cooperatives' profits.

The decline in profits at the other institutions were due mainly to a significant fall of the Taiwan dollar against the U.S. dollar that led to losses in their investments in financial assets, according to Lin.

The insurance sector garnered pretax profits of NT$193.8 billion, up 23 percent from a year earlier, while the securities and futures sector had NT$79.92 billion in pretax profits, up 50.77 percent year-over-year, according to the data.

(By Hsieh Fan-wu and Evelyn Kao)

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