The Surge in Financial Sector’s Pretax Profits in the First 10 Months of 2023

The Financial Supervisory Commission (FSC) data indicates that the combined pretax profits of the banking, securities and futures, and insurance sectors have surged to NT$726.98 billion (US$23.11 billion) in the first 10 months of 2023. This marks a substantial 25.6 percent increase from the same period in 2022.

The banking sector, encompassing domestic banks, foreign bank branches, credit cooperatives, bills finance companies, and Chunghwa Post Co.’s savings & remittances department, has experienced pretax profits of NT$453.26 billion during the first 10 months of this year. This represents a significant 23.1 percent surge from the previous year, setting a new record in the industry’s history for the same period.

Pretax profits for domestic banks, foreign bank branches and credit cooperatives have all exceeded their figures from 2022. However, Chinese bank branches, bills finance companies, and Chunghwa Post Co.’s savings & remittances department have reported a decline in their pretax profits during the same period.

Lin Chih-chi, deputy director of the FSC’s Banking Bureau, attributed the surge in profits for domestic and foreign banks to gains from investments and other income growth. Meanwhile, the profits for credit cooperatives were primarily driven by net interest income.

On the other hand, the insurance sector has recorded pretax profits of NT$193.8 billion – a substantial 23 percent increase from the previous year, while the securities and futures sector has boasted NT$79.92 billion in pretax profits, representing an impressive 50.77 percent surge year-on-year.

The increase in profits across the board is indicative of a thriving financial sector and bodes well for Taiwan’s economy.

This surge in pretax profits across the financial sector is a positive sign for Taiwan’s economy and is a testament to the resilience and adaptability of the country’s financial industry. It also reflects the confidence and stability of the financial markets, which are essential for economic growth and development.

The positive performance of Taiwan’s financial sector is likely to have a ripple effect on the overall economy, creating opportunities for investment, employment, and economic expansion. Therefore, it is important to monitor this trend closely and continue to support the growth and stability of the financial industry.