Latest news with #CathayFinancial
Yahoo
09-07-2025
- Business
- Yahoo
Cathay Financial Holdings and Cathay United Bank Sweep 8 Awards at the Asian Banking & Finance Awards
TAIPEI, July 9, 2025 /PRNewswire/ -- At the Asian Banking & Finance Awards held on July 3, Cathay Financial Holdings and Cathay United Bank swept 8 awards: Analytics Initiative of the Year - Taiwan, Taiwan Domestic Cash Management Bank of the Year, Taiwan Domestic Trade Finance Bank of the Year, Customer Experience Initiative of the Year - Taiwan, Debit Card Initiative of the Year - Taiwan, Investment Product Innovation of the Year - Taiwan, Customer Experience Solution Award - Taiwan, and Mobile App Award - Taiwan. These accolades underscore Cathay Group's customer-centric approach and its commitment to delivering secure and convenient financial services. To meet the growing demand for digital lending solutions in Vietnam, Cathay United Bank launched the "CUB Vietnam APP" in 2024, a fast and secure mobile-based platform that includes a revolving credit facility feature. Easy and simple to use, the app enables users to access multiple loans within the approved credit facility, which remains valid for up to 5 years and takes as little as 5 minutes! As of June 2025, the app boasts over 350,000 registered users and has over 2.5 million downloads. The app utilizes data from Vietnam's business registration and financial statement databases, social media fraud scoring, geographic information systems, combining them with the Bank's internal data analytics. This fully digital credit assessment and risk control model successfully addresses the challenges faced by the Ho Chi Minh City Branch in consumer finance – earning the Cathay Group the Customer Experience Initiative of the Year and Analytics Initiative of the Year. Cathay United Bank's "CUBE App," with over 7 million users, was also highly acclaimed at this year's awards. Reaching out to "Strive for What's Possible", this app integrates information across product lines to deliver highly personalized financial services, earning the Bank 2 awards for its excellence in digital innovation: the Customer Experience Solution Award and the Mobile App Award. As a longtime supporter for inclusion, the Bank launched Taiwan's first debit card designed for the visually impaired in 2004 - the "CUBE Touch Card". With a round notch on the card edge and "CUBE" boldly embossed, the card allows its users to identify their cards with ease – securing the Bank the Debit Card Initiative of the Year. In wealth management, Cathay United Bank partnered with First Securities Investment Trust and VIVO Capital to launch Taiwan's first private securities investment trust fund focused on biotechnology private equity funds – providing investor access to diverse investment opportunities. By leveraging big data analytics to integrate online and offline service channels, the Bank provides customers with a highly personalized wealth management experience. With client assets well-guarded from fraud thanks to the Bank's extensive use of technology, the Bank's clients and assets under management have grown steadily. Notably, the annual growth of high-net-worth clients increased by over 20% - resulting in the Bank being awarded the Investment Product Innovation of the Year. Cathay United Bank showcased its financial expertise by offering diverse cross-border solutions in corporate banking, such as global fund management, cross-border deposits, and secured lending. These solutions are designed to assist corporate clients in mitigating the impact of currency fluctuations while streamlining cross-border transactions. Incorporating data insights to create a new visualized transaction platform, the Bank has been able to collaborate with local customs systems and clearance networks to digitize trade transactions, reducing lengthy paper-based procedures while enhancing security, operational efficiency, and client experience – earning the Bank the Taiwan Domestic Cash Management Bank of the Year and Taiwan Domestic Trade Finance Bank of the Year. View original content to download multimedia: SOURCE Cathay United Bank Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
Cathay Financial Holding Co Ltd (TPE:2882) Q1 2025 Earnings Call Highlights: Strong Growth in ...
Net Income: TWD32 billion for Q4 2025; TWD32.2 billion for Q1 2025. Return on Equity (ROE): 14.4% for Q4 2025. Earnings Per Share (EPS): TWD2.18 for Q1 2025. Cathay United Bank Earnings Growth: 17% year-on-year for Q1 2025. Net Interest Income Growth: 18% year-on-year for Q1 2025. Net Fee Income Growth: 33% year-on-year for Q1 2025. Wealth Management Fee Growth: 46% year-on-year for Q1 2025. Credit Card Fee Growth: 14% year-on-year for Q1 2025. Cathay Life Total Premium Growth: 24% year-on-year to TWD134 billion for Q1 2025. First Year Premium (FYP): TWD55 billion, doubled year-on-year for Q1 2025. Value of New Business (VNB): TWD9.4 billion, up 9% year-on-year for Q1 2025. Investment Yield: 4% after hedging for Q1 2025. Asset Management AUM: TWD2.2 trillion for Q1 2025. Book Value: TWD884 billion for Cathay Financial Holdings, down year-to-date. Book Value Per Share: TWD52.8 for Q1 2025. Embedded Value: TWD1,279 billion for 2024, up 12% year-on-year. Appraisal Value: TWD1.55 trillion for 2024. Warning! GuruFocus has detected 6 Warning Sign with TPE:2882. Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cathay Financial Holding Co Ltd (TPE:2882) delivered solid results in the fourth quarter with net income reaching TWD32 billion and ROE at 14.4%. Cathay United Bank reported a 17% year-on-year growth in earnings, supported by double-digit growth in loans, net income, and net interest income. Cathay Century, the P&C insurance subsidiary, achieved a 21% year-on-year increase in net income, maintaining solid underwriting profitability. Cathay SITE, the asset management subsidiary, posted a 20% year-on-year earnings growth and continued to receive strong market recognition. The company's capital position remained robust despite recent currency fluctuations, providing a solid buffer against financial market volatility. Cathay Life's earnings declined year-on-year due to a high base of capital gain in the same period of last year. The consolidated book value of the holding company was down year-to-date, reflecting lower mark-to-market value of financial assets amid stock market corrections. The equity-to-asset ratio stood at 8.5%, indicating a decrease in book value due to equity market corrections. The cost of liability rose slightly due to the declared rate increase for interest-sensitive policies. Cathay Life's book value was down year-to-date, reflecting equity market corrections, which could impact future financial stability. Q: How does Cathay Financial manage the impact of Taiwan dollar appreciation on its life business? A: Grace Chen, CFO, explained that Cathay Financial employs a dynamic hedging strategy using traditional hedging tools, currency swaps, NDFs, and proxy hedging with a basket of currencies correlated with the Taiwan dollar. This strategy effectively mitigates earnings impact despite short-term volatility. The FX volatility reserve offsets 60% of currency impact, and an application to adopt a new reserve mechanism could increase this to 100%. The company's strong capital position provides resilience against further volatility. Q: What is the impact of U.S. tariffs and market volatility on Cathay's banking and life insurance businesses? A: Grace Chen noted that the banking business showed strong momentum, maintaining targets for high single-digit loan growth and fee income growth. For life insurance, Cathay increased cash positions to enhance flexibility and focused on aligning assets with liabilities. The company is well-prepared for IFRS 17 and ICS adoption, with a strategy prioritizing value-driven growth. Q: How does Cathay United Bank manage risks associated with wealth management clients pledging Taiwan dollar assets to buy U.S. dollar products? A: Hsing-Hsien Hu, Senior EVP, stated that the pledge portfolio is not a major part of the business, with a healthy loan-to-value ratio of 50%. Investment revenue is driven by market performance rather than hedging strategies. The bank maintains a healthy portfolio and targets high single-digit growth in wealth management fees. Q: What is Cathay Life's approach if the FX reserve is fully depleted due to Taiwan dollar appreciation? A: Chang-Ken Lee, CEO, expressed confidence in the hedging strategy's effectiveness, noting that the Taiwan dollar's recent appreciation was temporary. The company does not foresee structural changes in currency movements and believes the FX reserve will not be depleted. The hedging strategy remains effective, with no significant impact expected on earnings or capital. Q: What is the single rate equivalent for the value of new business in 2024? A: Chang-Ken Lee stated that the equivalent investment rate for new business in 2024 is around 4.7%, up from 4.62% in 2023. This includes both Taiwan dollar and U.S. dollar new business. Q: How much can Cathay leverage proxy hedging in its risk management strategy? A: Shu-Fen Cheng, Senior EVP, explained that proxy hedging typically ranges from 10% to 30% of the hedging strategy. The company adjusts the mix based on currency movements and risk-reward judgments, maintaining flexibility to manage currency volatility effectively. Q: How does Cathay United Bank's deposit growth compare to peers, and what strategies are in place? A: Shu-Fen Cheng highlighted that Cathay United Bank's deposit growth has outperformed key peers for the past seven years, driven by a strong brand and enhanced corporate services. The bank focuses on attracting retail and corporate deposits without over-leveraging client assets. Q: What are the historical hedging costs for Cathay Life, and how effective is the proxy hedging strategy? A: Shu-Fen Cheng noted that Cathay Life's hedging costs have been contained within 1% to 1.5% in most years, with proxy hedging effectively minimizing costs. The strategy leverages currency correlations and has proven effective over the past 14 years, with only two years exceeding the cost benchmark. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
26-05-2025
- Business
- Yahoo
Cathay Financial Holding Co Ltd (TPE:2882) Q1 2025 Earnings Call Highlights: Strong Growth in ...
Net Income: TWD32 billion for Q4 2025; TWD32.2 billion for Q1 2025. Return on Equity (ROE): 14.4% for Q4 2025. Earnings Per Share (EPS): TWD2.18 for Q1 2025. Cathay United Bank Earnings Growth: 17% year-on-year for Q1 2025. Net Interest Income Growth: 18% year-on-year for Q1 2025. Net Fee Income Growth: 33% year-on-year for Q1 2025. Wealth Management Fee Growth: 46% year-on-year for Q1 2025. Credit Card Fee Growth: 14% year-on-year for Q1 2025. Cathay Life Total Premium Growth: 24% year-on-year to TWD134 billion for Q1 2025. First Year Premium (FYP): TWD55 billion, doubled year-on-year for Q1 2025. Value of New Business (VNB): TWD9.4 billion, up 9% year-on-year for Q1 2025. Investment Yield: 4% after hedging for Q1 2025. Asset Management AUM: TWD2.2 trillion for Q1 2025. Book Value: TWD884 billion for Cathay Financial Holdings, down year-to-date. Book Value Per Share: TWD52.8 for Q1 2025. Embedded Value: TWD1,279 billion for 2024, up 12% year-on-year. Appraisal Value: TWD1.55 trillion for 2024. Warning! GuruFocus has detected 6 Warning Sign with TPE:2882. Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cathay Financial Holding Co Ltd (TPE:2882) delivered solid results in the fourth quarter with net income reaching TWD32 billion and ROE at 14.4%. Cathay United Bank reported a 17% year-on-year growth in earnings, supported by double-digit growth in loans, net income, and net interest income. Cathay Century, the P&C insurance subsidiary, achieved a 21% year-on-year increase in net income, maintaining solid underwriting profitability. Cathay SITE, the asset management subsidiary, posted a 20% year-on-year earnings growth and continued to receive strong market recognition. The company's capital position remained robust despite recent currency fluctuations, providing a solid buffer against financial market volatility. Cathay Life's earnings declined year-on-year due to a high base of capital gain in the same period of last year. The consolidated book value of the holding company was down year-to-date, reflecting lower mark-to-market value of financial assets amid stock market corrections. The equity-to-asset ratio stood at 8.5%, indicating a decrease in book value due to equity market corrections. The cost of liability rose slightly due to the declared rate increase for interest-sensitive policies. Cathay Life's book value was down year-to-date, reflecting equity market corrections, which could impact future financial stability. Q: How does Cathay Financial manage the impact of Taiwan dollar appreciation on its life business? A: Grace Chen, CFO, explained that Cathay Financial employs a dynamic hedging strategy using traditional hedging tools, currency swaps, NDFs, and proxy hedging with a basket of currencies correlated with the Taiwan dollar. This strategy effectively mitigates earnings impact despite short-term volatility. The FX volatility reserve offsets 60% of currency impact, and an application to adopt a new reserve mechanism could increase this to 100%. The company's strong capital position provides resilience against further volatility. Q: What is the impact of U.S. tariffs and market volatility on Cathay's banking and life insurance businesses? A: Grace Chen noted that the banking business showed strong momentum, maintaining targets for high single-digit loan growth and fee income growth. For life insurance, Cathay increased cash positions to enhance flexibility and focused on aligning assets with liabilities. The company is well-prepared for IFRS 17 and ICS adoption, with a strategy prioritizing value-driven growth. Q: How does Cathay United Bank manage risks associated with wealth management clients pledging Taiwan dollar assets to buy U.S. dollar products? A: Hsing-Hsien Hu, Senior EVP, stated that the pledge portfolio is not a major part of the business, with a healthy loan-to-value ratio of 50%. Investment revenue is driven by market performance rather than hedging strategies. The bank maintains a healthy portfolio and targets high single-digit growth in wealth management fees. Q: What is Cathay Life's approach if the FX reserve is fully depleted due to Taiwan dollar appreciation? A: Chang-Ken Lee, CEO, expressed confidence in the hedging strategy's effectiveness, noting that the Taiwan dollar's recent appreciation was temporary. The company does not foresee structural changes in currency movements and believes the FX reserve will not be depleted. The hedging strategy remains effective, with no significant impact expected on earnings or capital. Q: What is the single rate equivalent for the value of new business in 2024? A: Chang-Ken Lee stated that the equivalent investment rate for new business in 2024 is around 4.7%, up from 4.62% in 2023. This includes both Taiwan dollar and U.S. dollar new business. Q: How much can Cathay leverage proxy hedging in its risk management strategy? A: Shu-Fen Cheng, Senior EVP, explained that proxy hedging typically ranges from 10% to 30% of the hedging strategy. The company adjusts the mix based on currency movements and risk-reward judgments, maintaining flexibility to manage currency volatility effectively. Q: How does Cathay United Bank's deposit growth compare to peers, and what strategies are in place? A: Shu-Fen Cheng highlighted that Cathay United Bank's deposit growth has outperformed key peers for the past seven years, driven by a strong brand and enhanced corporate services. The bank focuses on attracting retail and corporate deposits without over-leveraging client assets. Q: What are the historical hedging costs for Cathay Life, and how effective is the proxy hedging strategy? A: Shu-Fen Cheng noted that Cathay Life's hedging costs have been contained within 1% to 1.5% in most years, with proxy hedging effectively minimizing costs. The strategy leverages currency correlations and has proven effective over the past 14 years, with only two years exceeding the cost benchmark. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
