Cathay Financial Holdings confident of better dividends this year

Cathay Financial Holdings (2882) announced robust financial results for the first half of 2026, with net profit after tax reaching NT$76.5 billion, marking a significant 66.67% increase compared to the same period last year. Earnings per share (EPS) stood at NT$4.95.

President Lee Chang-keng attributed the strong performance to the robust core business momentum across its subsidiaries. He highlighted that the company's adjusted net worth has surpassed NT$1.58 trillion, with net worth per share exceeding NT$100. This financial strength underpins the company's optimistic outlook for dividend distribution.

Benefiting from profit contributions and a notable rise in the valuation of its OCI assets and liabilities, Cathay Financial Holdings' overall net worth reached a historic high of NT$1.13 trillion in the first half of the year. With clear provisions for special surplus reserves, the company anticipates ample distributable funds, leading to a positive outlook for Cathay Life's cash dividend contributions next year.

Lee Chang-keng also noted that new regulations from the Insurance Bureau regarding dividend payouts for life insurance companies provide clearer future dividend projections. He expressed personal confidence that dividend prospects for the current year are significantly more optimistic than in 2021. While cautioning against extrapolating payout ratios from a substantially expanded profit base, the management team maintains a very positive and optimistic attitude regarding next year's dividend distribution capacity.

Financial Officer Chen Yen-ju added that as of July, Cathay Financial Holdings' net profit after tax, combined with gains from the disposal of FVOCI stocks, has rapidly increased retained earnings to NT$187 billion, with EPS reaching NT$12.47. This substantial surplus provides a solid financial foundation for the company's dividend payouts next year. Cathay Financial Holdings maintains a consistent dividend policy, considering profitability, subsidiaries' growth needs, market conditions, and industry dividend yields before proposing a competitive policy to the board.