E.SUN FHC held its investor conference today (3) to announce its Q1 2018 earnings. Quarterly profit was NT$4.78 billion, another new quarterly high performance; earnings per share (EPS) was NT$0.47, ROE was 12.57%, and ROA was 0.91%. President Joseph Huang described E.SUN's strategy, "technological leadership, cross-border service, and three lines of defense", at the conference.
E.SUN FHC's overall net profit in Q1 2018 was NT$12.49 billion and 18.7% higher on a YOY basis. Net interest income and net service fee income also increased by 6.5% and 18.0%. Net profit after tax rose by 27.9% to NT$4.78 billion. Regarding service fee income, Q1 service fee income from wealth management service rose significantly by 36.2%, which was mainly attributed to recovering insurance sales in the first quarter and a strong demand for USD-denominated insurance products. Furthermore, E.SUN practices effective customer segmentation. The bank makes it possible for the newly rich and individuals with limited assets to receive investment advice on a digital platform and make their own investment decisions. For high net worth customers, E.SUN offers customized products and a full range of family wealth management service that focuses on "passing on the legacy". Many VIP customers identify with the spirit of the service.
Regarding deposits and loans, E.SUN is a long term supporter of Taiwanese SMEs. The bank is ranked No. 1 again in the "Program to Strengthen Domestic Banks in Processing Loans to SMEs" by the FSC this year. In addition, E.SUN is starting to see results of its overseas development efforts. Cross-border service is fueling growth in foreign currency deposits and loans. E.SUN is also ranked No. 1 in the Program to Strengthen Domestic Bank Participation in New Southbound Policy Targeted Country Lending Plan. E.SUN currently operates 25 offices in 9 countries and regions. The Brisbane Branch in Australia and the Guangzhou Branch of the Chinese subsidiary are expected to open in the second half of the year. President Joseph Huang comments that E.SUN has completed this stage of its overseas development plan and will turn its full attention to integration of overseas branches and subsidiaries and building closer ties between them and the Taiwanese parent bank. The goal is to provide seamless cross-border financial service. Meanwhile, E.SUN will continue excellent risk management practices and keep risks involved in its overseas operations under strict control. The bank aims to achieve growth while maintaining sound asset quality. As of the end of March, E.SUN Bank has a nonperforming loan (NPL) ratio of 0.24% and a coverage ratio of 489.0%.
Regarding progress in digital banking, the mobile version of the company website was upgraded in April. The revamped website is better designed to suit customers' needs. Features include: an icon based interface and new and more friendly menus that let customers’ access financial services with more ease and relate ore to the everyday life. The aim is to provide an enhanced digital banking experience. E.SUN also invests in social media banking. The "Small-i" Robot Personal Financial Advisor offers 24-hour advice and marketing campaign information and gives customers immediate access to the services or to apply for E.SUN foreign exchange, mortgage, or credit card services or transactions.
In response to the risks arising from various technologies and the compliance requirements, E.SUN Bank has created the Information Security Management Division and the Legal Division, headed respectively by Chief of Information Security and Chief Compliance Officer, this year. President Joseph Huang stresses that E.SUN will strengthen the organization, the people, and the technology as a whole, and build up three solid risk management lines of defense. In addition, E.SUN will implement RegTech by utilizing technology to prevent network security loopholes and to detect money laundering activities.
E.SUN has been reporting good business results for years in a row. The bank delivers an excellent performance in FinTech and in Asian operations. It is also a CSR benchmark company in Taiwan. E.SUN was a third-time winner of the top prize in Global Views Monthly Corporate Social Responsibility Awards this year. It was also named to the honor roll, making it the first financial institution to be included on the honor roll. E.SUN has been included in the DJSI for four consecutive years and in the DJSI World twice. It also obtained the highest MSCI ESG Leaders Index rating of AA in the banking sector of Taiwan. For E.SUN, these honors come with great responsibility and keep the bank pushing itself to create more value for customers and the community as a whole.