China Development Financial (CDF, 2883: TT) today announced financial results for its first quarter ended March 2021. Preliminary March net profit was NT$4.85bn. For the first three months of 2021, cumulative net profit was NT$9.84bn, or EPS of NT$0.66. 1Q21 preliminary net profit reached 78% of 2020 full-year profit of NT$12.65bn.
- KGI Bank's net profit for the month of March was NT$410mn, and cumulative net profit for the first three months of 2021 was NT$1.08bn. Profitability was mainly driven by core income such as interest and fee income.
- KGI Securities' net profit for March reached NT$1.83bn, with cumulative net profit of NT$4.19bn for the first three months of the year, which was mainly due to the stable performances of brokerage, underwriting and proprietary businesses, made possible by the roughly 3% rise in the Taiex, as well as the stable profit contribution from overseas investment. On disposal of investment positions and valuation gains
- CDIB Capital posted March net profit of NT$1.45bn and January-March net profit of NT$1.62bn.
- China Life posted March net profit of NT$3.04bn and January-March net profit of NT$9.84bn.
CDF spokesperson Richard Chang said that profit in March was affected by the rise in US bond yields, the rebound of the US dollar, and the fact that over-selling by foreign capital suppressed the performance of electronics stocks; the abundant market liquidity and upward revisions to corporate profit estimates drove the Taiex to close up nearly 3% in March, which effectively boosted the profit momentum of the securities business. The substantial increase in CDF’s profit in March was due to the contribution from direct investment business and the recognition of equity-method investment income from China Life.
Richard Chang pointed out that CDF has, in order to speed up growth, pushed for digital innovation and perfect asset allocation, and has established five-year development strategies such as ABCDE, which stands for Accelerate Digital, Become Employer of Choice, Customer Focus, Drive Growth, and Execution Excellence. In terms of long-term business development, we will focus on cooperation and product development across different divisions and in each subsidiary and deepen customer relationships and work with them on larger scales, in order to enhance long-term capital efficiency and stable profitability.