[Times-Taipei News]After the stock prices of Gold Holdings Fubon Gold (2881) and CITIC Gold (2891) hit the quarterly line, they have both pulled back and sorted out. 24.35 yuan.
Observing the trends of the three major legal persons, foreign investors sold over 6,906 Fubon Gold, over 874 in Investment Credit, over 378 in Proprietary, with a total of over 5,654 sold. In the CITIC Gold section, foreign investors sold over 7,666, investment trust bought over 1,522, and self-operated traders bought over 34, totaling over 6,110.
In the first half of this year, Fubon Gold’s net profit after tax was 69.4 billion yuan, a decrease of 21% year-on-year, and the net profit after tax per share (EPS) was 5.62 yuan. The profit decline was mainly affected by the local epidemic and fluctuations in the investment market. The profit of its life, securities and property insurance subsidiaries declined, but Fubon Bank maintained its profit growth.
According to the analysis of the legal person, although it is expected that the recurring rate of return before hedging is expected to increase year by year, due to the unrealized loss on the overall investment position account, the follow-up capital gains are limited, and Fubon Life is expected to show a decline in profit in 2022.
With the simultaneous expansion of loans and interest spreads, Beifu Bank will have a double-digit growth momentum in its net interest income, and its asset quality will be stable. It is expected to have double-digit growth in the next two years.
As of the end of July, the property insurance subsidiary still had 1.6 million valid anti-epidemic policies. Under the assumption that the diagnosis rate was 19%, the total claims settlement in the first seven months, plus the deposit reserve, had affected the profit and loss by 15 billion. According to the analysis of the legal person, if the diagnosis rate increases by 1%, an additional loss of 1 billion will be incurred. As the policies gradually expire or the impact of the epidemic slows down, there is a chance to turn losses into profits in 2023.
In the part of CITIC Gold, the legal person analyzed that the increase in interest rates and the improvement of the deposit structure will significantly expand the bank’s net interest margin, and with the double-digit growth of loans, it is expected that the net interest income will have a strong growth momentum of 15% to 20% in 2022.
Wealth management products are not easy to sell, but the loan and credit card business has recovered. It is expected that the net fee income of China CITIC Bank in 2022 will have a growth momentum of mid- to high-single digits. (News source: Business Times-Li Juanping/Taipei Report)