China Development Financial (CDF) today announced its preliminary February earnings of NT$2.92bn, and January-February cumulative earnings of NT$4.98bn, or NT$0.34 per share.
Spokesperson Richard Chang said that the volume of capital market transactions increased significantly in February compared to the previous month, effectively boosting the profit momentum of securities and commercial banking businesses. CDF's net profit for February was NT$2.06bn, up approximately 169% YoY and up 81% from January last year, for EPS of NT$0.14.
Among subsidiaries, KGI Bank posted net profit of NT$253mn in February, advancing its first-two-month net profit to NT$675mn, which has mainly come from core income sources of interest and handling fees. KGI Securities posted net profit of NT$1.32bn in February, for first-two-month net profit of NT$2.36bn as brokerage, bond and proprietary trading businesses all delivered solid performances capitalizing on Taiex rallies post-CNY, plus gains from contribution of overseas reinvestments. CDIB Capital registered net profit of NT$299mn in February, bringing January-February net profit to NT$174mn, as portfolio mark-to-market gains were recognized. China Life was able to keep profitability steady with net profit of NT$3.06bn in February, growing its January-February earnings to NT$6.79bn.
CDF’s consolidated shareholding ratio of China Life has now reached 55.95%. Beginning in February, CDF has become eligible to earnings contribution from its investment in China Life under the equity method. As momentum of brokerage and other trading operations surged in February as capital markets resumed rallies to further new highs post-CNY, CDF’s consolidated earnings in January-February soared 351% YoY from NT$1.10bn of the same period last year. Spokesman Mr. Richard Chang cautions to closely monitor the impact of rising bond yields on capital and financial markets. To that end, CDF will remain committed to reducing operational risks by ensuring all risk control mechanisms function properly. In terms of long-term business developments, CDF will continue to promote inter-subsidiary and cross-department engagement and product development, deepen its customer relationship and scale to enhance long-term capital efficiency and steadiness of profitability.
