WHOLESALE BANKING | Cesar Tordesillas, Taiwan

Taiwan's Cathay Financial posts Q1 net profit of $67M

Cathay Financial reported a first-quarter net profit of NT$1.97 billion or US$67 million, and earnings per share of NT$0.19.


The firm also saw a huge increase in net worth, standing at NT$236.4 billion in the first three months.

A subsidiary, Cathay Life, had first-quarter net losses of NT$1.706 billion, or net loss of NT$0.32, while another subsidiary, Cathay United Bank, had first-quarter net profits of NT$3.425 billion, for an EPS of NT$0.66.

For Cathay Life, its overall first-quarter return on asset was 3.6 percent. By asset, cash, domestic stocks and overseas stocks accounted for 11 percent, 8.8 percent and 4.3 percent of the total, translating into yields of 1 percent, 4.6 percent and 3.5 percent, respectively.

Cathay United Bank's nonperforming loan ratio was 0.26 in the first three months, while the ratio for nonperforming mortgage loans was 0.07ercent. The bank had a coverage ratio of 402.1 percent. Revenue from processing fees rose 10.3 percent year-on-year.

The bank's Shanghai branch had first-quarter pre-tax profit of US$1.88 million.

Cathay Financial Holding announced 2011 embedded value of NT$46.1 per share and appraisal value of NT$84.5 a share.

Embedded value is calculated by combining a firm's present value with its net asset value.

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