CDF reports May net profit of NT$1.03bn January-May earnings of NT$13.75bn, & EPS of NT$0.92

China Development Financial Holding (CDF) announces May preliminary net profit of NT$1.03bn, bringing year-to-date accumulated net profit to NT$13.754bn, equivalent to EPS of NT$0.92.

Subsidiary KGI Bank saw May net profit arrive at NT$0.25bn, for January-May earnings of NT$1.78bn, driven mainly by interest and fee income. The Taiex remained at a high level in May, but with increased volatility, making it difficult for proprietary traders to earn profits. As such, KGI Securities only registered May earnings of NT$0.21bn, resulting in January-May earnings of NT$5.81bn. CDIB Capital Group reported net profit of NT$0.21bn in May, boosted mainly by valuation gains from its investment portfolio. CDIB’s January-May earnings totaled NT$1.94bn. China Life posted May earnings of NT$1.48bn, for January-May net profit of NT$13.99bn.

In the face of this tough challenge, CDF has activated a number of risk control measures to reduce the short-term impact on operations. Long-term, however, the efforts to coordinate collaboration and product development across subsidiaries remain unchanged as CDF continues to pursue steady profitability by strengthening client relationships and putting capital to more efficient use.

CDF spokesperson Richard Chang noted that the capital market was more volatile in May due to a resurgence of COVID-19 in Taiwan, hurting subsidiaries’ investment returns and valuations. In the face of this tough challenge, CDF has activated a number of risk control measures to reduce the short-term impact on operations. Long-term, however, the efforts to coordinate collaboration and product development across subsidiaries remain unchanged as CDF continues to pursue steady profitability by strengthening client relationships and putting capital to more efficient use.

Given the Financial Supervisory Commission’s order to delay shareholder meetings in the wake of the pandemic, CDF has postponed its shareholder meeting. The new meeting date will be discussed at a board meeting on June 28. In light of the nationwide level-three warning and control measures imposed by the Executive Yuan, CDF and its subsidiaries considered employees’ commuting issues and family conditions before asking them to work from home or move to different offices to lower the population density. This ensures that employees are able to work in a safer environment without sacrificing CDF and subsidiaries’ service quality.