Taichung Commercial Bank Reports Record Profit in 2024; Prioritizes Stock Dividends
24 March 2025 路 Uncategorized 路
Source: 路 https://finance.technews.tw/2025/03/19/strengthening-equity/
Taichung Commercial Bank held an earnings briefing today, reporting a consolidated net profit after tax of NT$112.37 billion for 2024鈥攁 year-on-year increase of 6.33%. This resulted in basic earnings per share (EPS) reaching NT$1.53, up by 1.32% from the previous year. Deputy General Manager Chen Shaochuang stated that last year鈥檚 dividend distribution was significantly influenced by an upward adjustment to investment evaluations for 2023; however, this year's dividends will return to normal levels with a focus on stock and supplementary cash distributions while also increasing capital through retained earnings.
In 2024, Taichung Commercial Bank reported consolidated net profit after tax of NT$112.37 billion鈥攁 6.33% increase from the prior year. EPS was recorded at NT$1.53, and asset quality improved with a non-performing loan ratio decreasing to 0.17%, down by 0.01 percentage points compared to last year. The provision coverage rate rose to 790.84%, an increase of 69.96%, indicating effective risk management and enhanced asset quality.
Chen Shaochuang noted that Taichung Commercial Bank has been continuously adjusting its revenue structure. In 2024, core deposit and loan operations demonstrated stable growth with increases of 7.12% and 8.17%, respectively, driving net interest income up by 2.19% to NT$191.16 billion. Furthermore, increased wealth management service fees and lending service charges contributed to a year-on-year increase in fee-based revenue for 2024鈥攔eaching NT$65.57 billion, an impressive rise of 42.02%, which was a primary driver of profit growth last year.
Chen Shaochuang explained that the bank鈥檚 dividend distribution in the previous year was significantly influenced by an upward adjustment to investment evaluations for 2023, allowing previously reserved special surplus funds to be released and contributing positively towards distributable profits鈥攔esulting in a dividend payout ratio exceeding 100%. This year's dividend payout rate will return to normal levels. To improve regulatory capital adequacy ratios, the bank must continuously strengthen its capital through retained earnings; therefore, stock dividends remain the primary focus.
Looking ahead, Chen Shaochuang shared that this year鈥檚 business development strategy will continue with a diversified revenue approach focused on enhancing core deposit and loan profitability while actively developing personal finance services, wealth management solutions, and overseas businesses to maintain profit growth momentum. The bank also plans to deepen its digital transformation efforts by concentrating on innovative financial products and data governance鈥攇radually optimizing system support for improved operational efficiency and creating more customer-centric financial offerings.
(Lead image source: TechNews)
In 2024, Taichung Commercial Bank reported consolidated net profit after tax of NT$112.37 billion鈥攁 6.33% increase from the prior year. EPS was recorded at NT$1.53, and asset quality improved with a non-performing loan ratio decreasing to 0.17%, down by 0.01 percentage points compared to last year. The provision coverage rate rose to 790.84%, an increase of 69.96%, indicating effective risk management and enhanced asset quality.
Chen Shaochuang noted that Taichung Commercial Bank has been continuously adjusting its revenue structure. In 2024, core deposit and loan operations demonstrated stable growth with increases of 7.12% and 8.17%, respectively, driving net interest income up by 2.19% to NT$191.16 billion. Furthermore, increased wealth management service fees and lending service charges contributed to a year-on-year increase in fee-based revenue for 2024鈥攔eaching NT$65.57 billion, an impressive rise of 42.02%, which was a primary driver of profit growth last year.
Chen Shaochuang explained that the bank鈥檚 dividend distribution in the previous year was significantly influenced by an upward adjustment to investment evaluations for 2023, allowing previously reserved special surplus funds to be released and contributing positively towards distributable profits鈥攔esulting in a dividend payout ratio exceeding 100%. This year's dividend payout rate will return to normal levels. To improve regulatory capital adequacy ratios, the bank must continuously strengthen its capital through retained earnings; therefore, stock dividends remain the primary focus.
Looking ahead, Chen Shaochuang shared that this year鈥檚 business development strategy will continue with a diversified revenue approach focused on enhancing core deposit and loan profitability while actively developing personal finance services, wealth management solutions, and overseas businesses to maintain profit growth momentum. The bank also plans to deepen its digital transformation efforts by concentrating on innovative financial products and data governance鈥攇radually optimizing system support for improved operational efficiency and creating more customer-centric financial offerings.
(Lead image source: TechNews)