CTBC Financial Holding Achieves Record Profits, Outlines Dividend Plans Amidst New Accounting Standards

CTBC Financial Holding Chairman Yen Wen-lung presided over the company's annual shareholder meeting on June 12, highlighting the group's resilience amidst unprecedented global financial market volatility and geopolitical risks. The company reported a record net profit of NT$80.6 billion for 2025, a 12% increase from the previous year, with a return on equity (ROE) of 16.88% and earnings per share (EPS) of NT$4.08. This marks the third consecutive year of record profits, solidifying CTBC's leading position in Taiwan's financial industry.

Addressing shareholder concerns about dividend stability, General Manager Kao Li-hsueh explained the impact of the new IFRS17 accounting standard, which took effect this year. Under this standard, gains from insurance-related stocks, largely held in OCI (Other Comprehensive Income), will not be disclosed in monthly earnings reports but will be announced on a quarterly basis. Kao assured shareholders that realized OCI profits are factored into dividend distribution plans. The company has maintained a cash dividend payout ratio of approximately 60% over the past three years.

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In recent years, international geopolitical risks have continued to escalate, and U.S. tariffs are full of variables, bringing unprecedented volatility and challenges to the global financial market. CTBC Financial Holding still strengthens the integration of group resources and demonstrates excellent operating strength.

Kao further elaborated that dividend decisions will consider the financial holding company's and its subsidiaries' capital adequacy, future business development, and cash dividend needs. While monthly earnings reports may show relatively lower realized profits due to the accounting shift, the company's overall financial health and strategic distribution plans remain a priority. CTBC Financial Holding is celebrating its 60th anniversary this year, underscoring its long-standing presence and commitment to the financial sector.

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Because IFRS17 is applicable from this year, most insurance stocks are placed in OCI, and monthly earnings reports will not be disclosed, but will be announced quarterly. The current dividend distribution has already incorporated OCI's realized profits into the consideration of earnings distribution. In the past three years, the cash dividend payout ratio has been around 60%.