China Development Financial (CDF, TWSE: 2883) reported preliminary May net profit of NT$483mn, bringing January-May earnings to NT$2.05bn, for EPS of NT$0.14. Richard Chang, Spokesperson and Senior Vice President of CDF Group, noted that as the global Covid-19 pandemic eases, market focus has turned to the reopening of major economies and economic stimulus plans. In May, global capital markets extended the momentum form April, supporting CDF’s securities business and valuations of financial investments.
KGI Bank saw stable growth in deposits and loans. In addition to contribution from core earnings such as interest income and fee income, the Bank’s financial assets also benefited from stable financial market performance. The Bank’s May net profit arrived at NT$417mn, for accumulative January-May earnings of NT$1.451bn. KGI Securities posted May net profit of NT$498mn, with January-May net profit of NT$1.587bn, driven by sustained brokerage earnings momentum on rising TAIEX turnover MoM as the TAIEX consolidated at a high level in the month. CDIB Capital Group delivered May net loss of NT$248mn on changes in valuations of international investments, taking January-May net loss to NT$1.148bn. China Life reported May net profit of NT$799mn, for January-May earnings of NT$6.189bn.
Chang also said CDF’s four major earnings engines – insurance, banking, securities and direct investment – will focus on improving their competitiveness through interdepartmental cooperation and product development and will continue to deepen client relationships and expand the client base to enhance long-term earnings stability. CDF is scheduled to present its 2019 business and financial reports on June 12 at the annual general meeting, where a resolution to pay a dividend of NT$0.6 per share is expected to be approved.