Date: May 16, 2016
By: Ted Chen / Staff reporter
HSBC Securities Taiwan Corp raised the target price for Yuanta Financial Holding Co (元大金控) slightly, as the company has curbed life insurance losses while showing resilience in banking earnings in the first quarter.
Yuanta Financial in the first quarter reported that net income surged 786 percent sequentially to NT$3.47 billion (US$106.36 million), but declined 15 percent from a year earlier.
The company said that Yuanta Securities Co (元大證券) saw net income in the January-to-March period fall 51 percent sequentially and 14 percent annually to NT$2.04 billion due to a 4 percent decline in average daily turnover at the local stock market, weakening retail investors’ participation.
Yuanta Commercial Bank reported that net income rose by 50 percent sequentially and 10 percent annually to NT$1.45 billion due to an improved loan mix that prioritizes syndicated loans and loans to small-to-medium-sized enterprises and consumers. [FULL STORY]