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Finance

Cathay Financial Holdings Co. Ltd.

Company Background

Cathay Financial Holding is one of Taiwan's largest financial services companies offering banking, insurance and brokerage products. Founded by brothers Tsai Wan-lin and Tsai Wan-chun, Cathay first started out as a life insurance company in 1962. The company's life insurance business was so successful that it became the highest priced stock on Taiwan's bourse in 1989. To this day, life insurance remains the company's most profitable business.

 

In 2001, Cathay combined its various units and incorporated itself as a financial holding company. In recent years Cathay has been expanding in Asia, particularly in China, and it became the first Taiwanese company to set up a life insurance operation on the mainland.

 

Cathay is currently overseen by Chairman Tsai Hong-tu, who has a law degree from Southern Methodist University. He is the son of Tsai Wan-lin and cousin of Fubon Financial Holding Chairman Daniel Tsai. The Tsais are widely recognized to be one of the richest families in Taiwan.

Business Summary

Cathay Financial Holdings Co., Ltd. engages in the provision of financial services. It operates through the following segments: Banking, Life Insurance, Properties and Casualty Insurance, Securities, and Other. The Banking operating segments operates permitted businesses of commercial banks provided by the Banking Act of the Republic of China. The Life Insurance segment focuses in the sales of traditional insurance policies, investment-linked insurance policies, and floating-rate annuity insurance products. The Properties and Casualty Insurance segment comprises fire, marine, land and air, liability, bonding, reinsurance, and other insurance. The Securities segment consists securities brokerage, discretionary, and underwriting. The Other segment include assets, liabilities, revenue, and expenditure which are not able to be allocated to certain operating segments. The company was founded on December 31, 2001 and is headquartered in Taipei, Taiwan.

Financial Highlights

Dec 2020 TWDUSD
Revenue1,077.97B36,610.52M
Gross Profit----
Operating income285,834.65M9,707.56M
Income before tax93,700.44M3,182.27M
Net income74,579.46M2,532.88M
EBITDA----
Diluted EPS5.400.18
Dividends Per Share2.500.08
Total Assets10,942.41B389,437.47M
Total liabilities10,037.63B357,236.75M
Total equity893,061.21M31,783.79M
Operating cash flow262,716.26M8,922.41M
Currency in TWDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 596,432.82M 988,538.19M 870,240.26M 941,346.39M 1,077.97B
Gross Profit -- -- -- -- --
Operating income 107,379.92M 193,010.05M -108,310.99M 235,513.69M 285,834.65M
Income before tax 48,982.40M 58,337.75M 54,595.18M 69,408.15M 93,700.44M
Net income 47,618.81M 56,306.73M 51,467.24M 62,757.28M 74,579.46M
EBITDA -- -- -- -- --
Diluted EPS 3.77 4.44 3.92 4.76 5.40
Dividends Per Share 1.99 2.48 1.49 2 2.50
Total Assets 8,127.71B 8,835.53B 9,218.16B 10,057.02B 10,942.41B
Total liabilities 7,599.03B 8,228.20B 8,688.87B 9,274.99B 10,037.63B
Total equity 522,180.08M 597,922.58M 519,731.33M 771,747.36M 893,061.21M
Operating cash flow -220,180.27M 84,643.58M -28,939.43M 182,836.84M 262,716.26M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 18,493.57M 32,493.42M 28,859.41M 30,451.75M 36,610.52M
Gross Profit -- -- -- -- --
Operating income 3,329.52M 6,344.27M -3,591.87M 7,618.66M 9,707.56M
Income before tax 1,518.79M 1,917.57M 1,810.51M 2,245.29M 3,182.27M
Net income 1,476.51M 1,850.81M 1,706.78M 2,030.14M 2,532.88M
EBITDA -- -- -- -- --
Diluted EPS 0.11 0.14 0.13 0.15 0.18
Dividends Per Share 0.06 0.08 0.04 0.06 0.08
Total Assets 252,186.43M 296,907.86M 299,904.38M 335,491.23M 389,437.47M
Total liabilities 235,782.58M 276,499.36M 282,684.45M 309,403.66M 357,236.75M
Total equity 16,202.18M 20,092.49M 16,908.98M 25,744.65M 31,783.79M
Operating cash flow -6,827.12M 2,782.24M -959.70M 5,914.61M 8,922.41M

Valuation Measures

Dec 2020
PER7.81
ROA0.71%
ROE8.95%
Operating margin26.51%
Profit margin6.91%

Key executives

  • President & Director: Chang Keng Li
  • CFO & First Deputy Spokesman: Yan Ju Chen
  • Chief Information Officer: Chia-Sheng Chang
  • Secretary & Executive Vice President: Deh Yen Weng
  • Executive Vice President: Marcus Lopez

Shareholders

  • Wan Pao Development Co. Ltd. (17.9%)
  • Lin Yuan Investment Co. Ltd. (15.3%)
  • Labor Pension New Fund (3.0%)
  • Shin Kong Life Insurance Co., Ltd. (2.1%)
  • The Vanguard Group, Inc. (1.9%)
  • Labor Insurance Fund (1.7%)
  • BlackRock Fund Advisors (1.6%)
  • Nan Shan Life Insurance Co., Ltd. (1.5%)
  • TransGlobe Life Insurance, Inc. (Invt Port) (1.4%)
  • Fubon Life Insurance Co., Ltd. (1.2%)

Contact Details

Related Companies

  • Cathay Venture, Inc.
  • Cathay Life Insurance Co., Ltd. (DSG)
  • Cathay Century Insurance Co., Ltd. (DSG)
  • Cathay Life Insurance Corp.
  • Cathay Securities Investment Trust Co., Ltd.
  • Cathay Securities Corp. Ltd.
  • Cathay Venture Capital Co. Ltd.
  • Cathay Century Insurance Co., Ltd.
  • Lucky Bank Taiwan, Inc.
  • Cathay United Bank Co., Ltd.
  • Cathay Life Insurance Co., Ltd.

Competitors

  • Yuanta Futures Co., Ltd.
Last Updated on 26 Nov, 2021

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