China Development Financial Holding Corporation (CDF) held its Q1 2022 investor conference today. During the conference CDF reported its profit result and strategic developments for the first quarter of 2022. CDF maintained a steady profit growth and a leading position among peers, with after-tax profit for the first quarter of 2022 reaching NT$9.67 billion, and an EPS of NT$0.58.
CDF and its subsidiaries China Life, KGI Bank, KGI Securities and CDIB Capital maintained capital strength despite financial market volatility. China Life was the largest contributor to the profit performance in the first quarter, with an after-tax net income of NT$88.40 billion, of which NT$1.50 billion was reported as an expected credit loss from Russian bonds in February 2022. KGI Securities' after-tax net income for the first quarter was NT$1.44 billion, and ECM (Equity capital market) and DCM (Debt capital markets) positions remained at the top for the market share category. Also, its customer AUMs grew 11% YoY as of the end of first quarter. KGI Bank's after-tax profit in the first quarter was NT$1.36 billion, and the Bank’s SME and personal loans both increased 18% YoY in the first quarter, as a result of its continued efforts in optimizing its asset portfolio. CDIB Capital's reported a net loss of NT$0.57 billion driven by unrealized mark-to-market change from market fluctuation. CDIB will continue to focus on expanding its asset management business.
During the conference, China Life also shared its embedded value for the year of 2021. China Life’s embedded value rose to NT$402.5 billion as of the end of last year, up 12.6 percent from a year earlier, following the increase of its adjusted net worth and the value of in force. The embedded value of China Life per share was NT$81.8 as of the end of 2021, which brought the embedded value of CDF to NT$26.9 per share.
Steve Bertamini, President and CEO of CDF, said that CDF will continue developing and executing its ABCDE strategy—Accelerate Digital, Become Employer, Customer Focus, Drive Growth and Execution Excellence. CDF and its subsidiaries have revamped and optimized digital platforms to further enhance customer experience. CDF announced it has joined the “TALENT, in Taiwan Sustainable Action Alliance” to cultivate local talent. CDF also signed SBTi (Science Based Target initiative), which ensured a scientific process to implement a carbon reduction plan as it collaborates with industry partners towards a low carbon transition.