Taishin Financial Shareholders Estimate Cash Dividend Nearly NT$1.40 per share

Taishin Financial (2887-TW) reported a net income of NT$20.3 billion after tax last year, with an EPS of NT$1.63 per share. According to its dividend policy, the corporation estimates that the dividend distribution per share (stock + cash) could reach NT$1.4 this year based on the 86% allotment rate last year.  

Taishin Financial held an online presentation on its financial results on Wednesday (May 4), during which legal entities expressed concerns about its dividend this year. 

Taishin Financial president Welch Lin said that this year’s dividend policy is mainly stable, similar to the direction of 55% cash and 45% stock in the previous year. Still, he also stressed that the board should make the final decision. 

Taishin’s Net Interest Margin (NIM) could increase by 0.5 to 1 basis point in the first quarter compared to the previous quarter due to interest rate hikes in the U.S. and Taiwan in March, according to Taishin’s chief financial officer Carol Lai. 

Lai further expressed concern about the impact on the bank’s NIM under the cycle of interest rate hikes by the U.S. Federal Reserve. 

According to Taishin Financial’s internal assessment, Lai pointed out that the bank’s NIM could increase by at least seven basis points this year compared to last year and about 8 to 9 basis points in estimates. 

In the first quarter of this year, banks reported a 2-digit growth in handling fees for their syndicated loans, foreclosures and other related businesses. With a stable market this year, banks are expected to see a higher single-digit increase in handling fees. 

Taishin Financial announced a net income of NT$2.1 billion after tax, net income per share (EPS) of NT$0.15, annualized return on equity of NT4.33%, and net income per share of NT$13.89 for the first quarter of 2022. 

In the first quarter of this year, net income after tax decreased by 52.1% due to a change in the accounting treatment of investment income of Chang Hwa Bank (2801-TW) and the impact of the increase in interest rates on the valuation of the contingent consideration of Prudential Life’s trading contracts, according to Lin. 

In terms of capital structure and credit product quality, the capital adequacy ratios of GTSM and the bank were 118.9% and 14.5%, respectively, in the first quarter, and the capital structure remained stable. 

Taishin International Bank’s over-lending and coverage ratios were 0.13% and 989%, respectively, and the quality of credit facilities remained good. 

Translated by DB, cnPOST