This article first appeared on GuruFocus .
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Net Profit (Q2 2026):TWD21.4 billion, up 27.8% year over year, marking a record high for the same period.
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Net Revenue (Q2 2026):TWD53.8 billion, up 24.8% year over year.
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EPS (Q2 2026):TWD1.32.
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ROE (Q2 2026):15.46%.
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ROA (Q2 2026):0.91%.
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Net Fee Income (Q2 2026):TWD19.8 billion, up 39.9% year over year, reaching a record high.
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Wealth Management Fee Income (Q2 2026):TWD9.3 billion, a record high, up 30.7% year over year.
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Cost-Income Ratio (Bank, Q2 2026):Improved to 46.4%.
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Loan Balance (Q2 2026):TWD2.84 trillion, up 16.1% year over year.
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Deposit Balance (Q2 2026):Grew 15% year over year.
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NPR Ratio (H1 2026):15 basis points.
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Coverage Ratio (H1 2026):770.8%.
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E.SUN Bank Net Profit (Q2 2026):TWD18.8 billion, up 11.3% year over year.
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E.SUN Securities Net Profit (Q2 2026):Up 205% year over year.
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E.SUN Securities Sub-Brokerage Fee Income (Q2 2026):Up 112% year over year.
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E.SUN Securities Annualized ROE (Q2 2026):44.9%.
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First Seven Months Net Profit (2026):Increased 20.9% year over year.
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Release Date: August 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record-high net profit in Q2 2026, with net profit growing 27.8% year-on-year and EPS reaching TWD1.32.
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Net fee income hit a new record high, growing 39.9% year-on-year, driven by strong wealth management and securities performance.
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E.SUN Securities posted a 205% year-on-year increase in net profit, benefiting from the AI-led market rally.
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Successful acquisition of Mercuries Life, scheduled to close on September 1, 2026, will make E.SUN the fifth largest listed financial holding company in Taiwan by total assets.
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Strong asset quality maintained with NPL ratio at 15 basis points and coverage ratio at 770.8%.
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Overseas expansion progressing with new branches in Osaka, Mumbai, and Toronto, strengthening global presence.
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Cost-income ratio improved to 46.4% for the bank, reflecting effective cost management.
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Progressive dividend policy maintained, aiming for a dividend yield of about 4%.
Negative Points
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Net interest margin (NIM) remains flat, though expected to improve in the second half.
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Loan growth guidance was revised down to 13%-14% from previous expectations, indicating potential slowdown.
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Deposit growth guidance was also revised down to 12%-14%, reflecting management of loan demand.
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The acquisition of Mercuries Life may pose integration risks and operational challenges.
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High reliance on the banking segment (82% of total profit) could expose the company to sector-specific risks.
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Foreign currency deposit growth of 90.36% may lead to higher funding costs if not managed properly.
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The AI-driven loan growth may be cyclical and subject to market volatility.
Q & A Highlights
Q: What is the outlook for NIM (Net Interest Margin)? A: Deputy CFO Sarah Chen indicated that with higher loan yields, improving US long-term rates, and lower funding costs, E.SUN expects NIM to continue to improve. The company remains comfortable with its year-end NIM target of 1.33%.
Q: Will the company change its guidance for each business segment? A: Yes, guidance has been updated. Loan growth is now expected to be 13% to 14% for the year, and deposit growth is revised to 12% to 14%. The Wealth Management fee target remains at double-digit growth, with expectations of strong performance in the second half of the year.
Q: What are the primary drivers of loan growth? A: Domestic loan growth is primarily driven by strong demand from the AI sector, particularly in ICT and electronic products. Overseas, growth comes from financial centers like Hong Kong, Australia, LA, and Singapore, fueled by infrastructure finance (data centers, renewable energy) and asset-backed leasing (aircraft and vessel financing). The outlook for the second half remains robust, supported by AI server and semiconductor supply demand, as well as new syndication loans and major capital expenditure projects from large corporations.
Q: What is the company's dividend policy? A: E.SUN will continue its progressive dividend policy, meaning higher EPS will support higher dividend distribution. The company will also aim to maintain a dividend yield of approximately 4%.
Q: Can you provide details on the Mercuries Life acquisition timeline and its impact? A: The acquisition was approved by shareholders on January 23, and received regulatory approval from the FSC on July 7. The transaction is scheduled to close on September 1, 2026, with Mercuries Life renamed E.SUN Life on December 1. This acquisition will make E.SUN Financial Holding the fifth-largest listed financial holding company in Taiwan by total assets, adding insurance as a third core profit engine alongside banking and securities.
Q: What were the key financial highlights for the second quarter of 2026? A: E.SUN delivered a record-high net profit for the second quarter. Net revenue grew 24.8% year-on-year to TWD53.8 billion, and net profit grew 27.8% to TWD21.4 billion. EPS was TWD1.32, with ROE at 15.46% and ROA at 0.91%. Net fee income hit a record high, growing 39.9% year-on-year.
Q: How did the subsidiaries perform, particularly E.SUN Securities? A: E.SUN Bank's net profit grew 11.3% to TWD18.8 billion, contributing nearly 82% of the FHC's total profit. E.SUN Securities posted an outstanding 205% year-on-year increase in net profit, benefiting from the AI-led market rally and active trading, with sub-brokerage fee income up 112% and annualized ROE reaching 44.9%.
Q: What is the company's overseas expansion strategy? A: E.SUN plans to open the Osaka rep office in Japan on September 4, 2026, and the Mumbai branch in India in 2027. The Toronto branch in Canada is also in the pipeline, which will strengthen its North American presence by connecting Los Angeles, Toronto, and Dallas into an integrated financial service platform. Overseas branches and subsidiaries currently contribute 25.3% of total net profit.
Q: How is the company managing its cost-income ratio? A: With effective cost management, the bank's cost-income ratio improved to 46.4% for the second quarter of 2026, down from nearly 90% in 2023. E.SUN will continue to strictly control the growth rate of expenses to a single-digit level this year.
Q: What is the status of asset quality? A: E.SUN maintains sound asset quality with an NPL ratio of 15 basis points and a coverage ratio of 770.8%. The credit cost for the first half was 19 basis points.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
