First Financial Holding Reports Record Profit, Optimistic Outlook for Year

First Financial Holding (2892) reported a robust financial performance, with its pre-tax profit surpassing NT$20 billion in the first seven months of the year, marking a historic high for the period. This strong showing has led the company's president, Fang Ying-ji, to express an optimistic outlook for the remainder of the year.

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From the perspective of this year's overall operating performance, I am quite optimistic.

The company's banking arm, First Commercial Bank, has seen significant growth, with interest and fee income increasing by over 30%. Non-banking subsidiaries have also substantially boosted the conglomerate's earnings, with their profit contribution rising to over 15% of the total, up from less than 9% last year. Notably, First Financial Securities has outperformed, already exceeding its entire previous year's profit by the end of June, with a remarkable 375% year-on-year increase. First Venture Capital also set a new record for first-half profits.

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The banking sector's interest income and fee income have both performed very well this year, with year-on-year growth exceeding 30%.

Regarding dividend policy, Fang Ying-ji reaffirmed the company's commitment to distributing over 60% of its earnings. He indicated a preference for increasing the proportion of cash dividends in the future, as the company has met capital requirements previously necessitating higher stock dividend payouts. This shift aims to prevent the dilution of earnings per share and manage the expansion of the company's equity.

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The profit contribution from non-banking subsidiaries has also increased significantly, with year-on-year growth exceeding 30%.

To support the growth of its securities arm, First Financial Holding is also planning to bolster its capital. This will involve retaining more earnings within the subsidiary and exploring external funding. A recent NT$5 billion syndicated loan has already been secured, ensuring sufficient capital for current business needs and future expansion. The company aims to equip its securities subsidiary with adequate resources to scale its operations and enhance its future profit contributions to the group.

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We aim to maintain a dividend payout ratio of over 60% of earnings as a principle, but we will make appropriate adjustments based on business expansion and financial structure at the time.