Taipei, March 17, 2021/ China Development Financial (referred to as “CDF”, TWSE: 2883) held its 4Q20 analyst meeting today. In 2020, the total assets of CDF stood at NT$3.4tn and net income of NT$12.5bn. In Jan.-Feb. 2021, net income climbed to NT$4.99bn, up 351% YoY.
Steve Bertamini, President & CEO of CDF and the leadership team have set a five-year “ABCDE Strategy” to accelerate digitization, growth, and asset allocation.
The “ABCDE Strategy” includes “Accelerate Digital,” “Become Employer of Choice,” “Customer Focus,” “Drive Growth” and “Execution Excellence.” “Accelerate Digital” is based on our goal to become the best in market by building a mobile-first digital platform, CDF will also continue to build partnerships/alliance to expand our ecosystems. “Become Employer of Choice” emphasizes development and training programs for employee and enhances our employee value proposition. While the “Customer Focus” strategy highlights digitizing customer journeys and offering comprehensive financial solutions to our customers. CDF will also deploy cross-selling, big data analytics and joint ventures, among other initiatives to “Drive Growth.” “Execution Excellence” includes enhancing IT infrastructure and distribution network.
In February 2021, CDF’s successful tender offer for China Life increased total holdings to 56%. China Life posted net income of NT$15.55bn in 2020, up 14% YoY from which CDF recognized NT$4.27bn.
KGI Bank posted net income of NT$4.23bn in 2020, with net interest and fee income up 10% YoY, outperforming peers. The bank saw demand deposits grow 44% YoY, higher than the peer average of 21%; loans growth of 9% YoY, also outperforming the industry average of 6%.
KGI Securities delivered robust business performance in 2020, generating net income of NT$8.71bn, up 44% YoY. Overseas earnings increased 47%, representing over 20% of company net income. Meanwhile, KGI Securities Investment Trust revenue increased 27% YoY, with AUM (assets under management) rising to NT$181.8bn.
CDIB Capital Group registered a net loss of NT$1.15bn in 2020 due to unrealized investment valuations from COVID-19 related impact. CDIB launched the Healthcare Fund II of NT$3.1bn to leverage Taiwan talent pool with business opportunities in the Greater China region. CDIB plans to launch three funds in 2021, including Intelligence Partners, Private Credit and Leverage Buyout Fund to further boost growth. At the end of 2020, total assets under management were NT$46.8bn.
CDF’s multi-year sustainability leadership has been recognized by the inclusion in the DJSI World Index and the DJSI Emerging Markets Index and we remain ranked in the top 5% of TWSE- and TPEx-listed companies in the 6th Corporate Governance Evaluation. CDF will continue to implement climate change adaption, responsible finance and adopt sustainability as its core value, meanwhile proactively capitalizing on its financial impact to strive for sustainability.
