China Development Financial Holding (CDF, TWSE: 2883) reported preliminary December net profit of NT$1.13bn, bringing full-year 2020 net profit to NT$12.54bn and EPS of NT$0.86. “As capital markets rallied on intense institutional net-buying, which boosted turnover in December, we saw solid contribution from the brokerage and commercial banking business units that drive December earnings,” said Richard Chang, CDF Spokesperson and Executive Vice President.
KGI Bank posted December net profit of NT$498mn and full-year earnings of NT$4.22bn, driven by core income of interest and fee income, as well as financial investment gains. KGI Securities saw December net profit arrive at NT$1.16bn, for full-year earnings of NT$8.70bn. Brokerage, fixed income and underwriting businesses all delivered robust performance, with overseas reinvestments also contributing to earnings. CDIB Capital Group registered December net loss of NT$141mn due to portfolio impairments, for full-year net loss of NT$1.14bn. China Life incurred net loss of NT$640mn in December, achieving full-year net profit of NT$15.54bn.
Financial Supervisory Commission (FSC) has approved CDF’s public tender of China Life., The acquisition is set to purchase 1.0bn outstanding common shares (or 21.13%), with an offer price set at NT$23.6 per share. The tender offer began on January 8th, and will expire on February 2nd. Upon completion of the tender offer, CDF will hold more than 50% stakes of China Life, which would enhance CDF’s profitability, capital efficiency, and return on shareholders' equity. CDF also foresees more business synergies through the acquisition.
Going forward, CDF will further increase cooperation and synergies across the group, accelerate digital efforts, become the employer of choice and further build on our leadership position in ESG.