This article first appeared on GuruFocus .
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Consolidated Credit Portfolio:$799 billion in Q3 2025, a 3% year-over-year decrease.
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Consolidated Revenue:73.4 billion NT dollars for the first nine months of 2025, a 5% decrease year-over-year.
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Consolidated Net Profit:15 billion NT dollars for the first nine months of 2025, with an EPS of 8.45 NT dollars.
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Cost to Income Ratio:Increased from 27% to 30% for the first nine months of 2025.
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Return on Assets (ROA):2.2% annualized for Q3 2025, down from 2.6% in 2024.
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Return on Equity (ROE):12% for Q3 2025.
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Delinquency Rate:Increased to 4.6% in Q3 2025 from 4.4% in the prior quarter.
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Taiwan Credit Portfolio:$462 billion in Q3 2025, a 2% year-over-year increase.
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China Credit Portfolio:RMB 51.3 billion in Q3 2025, a 5% year-over-year decrease.
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ASEAN Credit Portfolio:$114.6 billion in Q3 2025, an 8% year-over-year decrease.
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Taiwan Revenue:$40 billion for the first nine months of 2025, a 3% year-over-year decrease.
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China Revenue:$22 billion for the first nine months of 2025, an 11% decrease year-over-year.
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ASEAN Revenue:10.8 billion NT dollars for the first nine months of 2025, a 4% increase year-over-year.
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Taiwan Net Profit:Decreased by 3% for the first nine months of 2025 year-over-year.
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China Net Profit:$5.9 billion NT dollars for the first nine months of 2025, a 35% decrease year-over-year.
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ASEAN Net Profit:Increased by 47% for the first nine months of 2025 year-over-year.
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Release Date: November 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Stable new delinquent formation observed in China, indicating potential for resumed business momentum.
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Improvement in asset quality for Vietnam and Thailand boosted ASEAN's profit.
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Malaysia and Cambodia showed better portfolio growth, contributing positively to ASEAN operations.
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Taiwan's solar net assets increased by 5% year over year, aligning with industry development.
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ASEAN's net profit increased by 47% for the first nine months of 2025, driven by less expected credit loss in Thailand and Vietnam.
Negative Points
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Consolidated credit portfolio decreased by 3% year over year, reflecting slower than expected growth.
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Revenue for the first nine months of 2025 decreased by 5% compared to the same period last year.
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Net profit for the first nine months of 2025 decreased by 35% in China due to lower revenue and increased expected credit loss.
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Taiwan's net profit for the third quarter decreased by 13% quarter over quarter due to less solar income and non-operating foreign exchange gains.
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China's delinquency ratio increased to 6.4%, reflecting an uncertain outlook and decreasing credit portfolio.
Q & A Highlights
Q: Can you discuss the stability of the new delinquent formation ratio for China in the third quarter compared to previous quarters? Also, any updates on the vintage performance? A: Sharon Fan, Head of Investor Relations, explained that the new delinquency formation for China was stable, with the absolute amount being around 1.19 billion for the third quarter, similar to the previous quarter's 1.18 billion. This indicates a stabilization in the formation rate. Regarding vintage performance, there has been a significant improvement in the default rate for new disbursements from January to September 2025 compared to the same period in 2024. However, it's too early to predict a continuous decrease in delinquency ratios as it also depends on portfolio growth trends.
Q: What is the current provisioning ratio for China, and has it changed in October? A: Sharon Fan stated that the provision expense for China remains at a similar level quarter over quarter and month over month. The better bottom-line performance in October was mainly due to lower operating expenses and provision expenses for the Taiwan operation.
Q: Can you quantify the improvement in the 2025 vintage compared to 2024? Also, where is the fee income pressure coming from, and when do you expect Taiwan's pricing to stabilize? A: Sharon Fan noted that the default rate for the 2025 vintage has decreased by about 20% to 30% compared to 2024. The fee income pressure is primarily from Taiwan's OA business, which is being gradually exited. The blended yield for Taiwan is expected to be impacted for at least another year due to the exit from the used car financing business, but this will not significantly affect the overall return.
Q: How is the asset quality in China, and what are the expectations for delinquency rates? A: Sharon Fan mentioned that the asset quality in China has shown stability in new delinquent formations, and the default rate for new disbursements has improved. However, the delinquency ratio is also influenced by portfolio growth trends, making it challenging to predict future movements.
Q: What factors contributed to the strong profit numbers in October? A: Sharon Fan attributed the strong profit numbers in October to lower operating expenses and provision expenses in Taiwan, rather than changes in the provisioning ratio for China.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
