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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 2019 TWDUSD
Revenue941,346.39M30,451.75M
Gross Profit----
Operating income235,513.69M7,618.66M
Income before tax69,408.15M2,245.29M
Net income62,757.28M2,030.14M
EBITDA----
Diluted EPS4.760.15
Dividends Per Share20.06
Total Assets10,057.02B335,491.23M
Total liabilities9,274.99B309,403.66M
Total equity771,747.36M25,744.65M
Operating cash flow182,836.84M5,914.61M
Currency in TWDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 726,383.38M 596,432.82M 988,538.19M 870,240.26M 941,346.39M
Gross Profit -- -- -- -- --
Operating income 21,873.99M 107,379.92M 193,010.05M -108,310.99M 235,513.69M
Income before tax 66,024.49M 48,982.40M 58,337.75M 54,595.18M 69,408.15M
Net income 57,513.57M 47,618.81M 56,306.73M 51,467.24M 62,757.28M
EBITDA -- -- -- -- --
Diluted EPS 4.55 3.77 4.44 3.92 4.76
Dividends Per Share 1.99 1.99 2.48 1.49 2
Total Assets 7,563.23B 8,127.71B 8,835.53B 9,218.16B 10,057.02B
Total liabilities 7,103.31B 7,599.03B 8,228.20B 8,688.87B 9,274.99B
Total equity 453,912.50M 522,180.08M 597,922.58M 519,731.33M 771,747.36M
Operating cash flow -67,946.28M -220,180.27M 84,643.58M -28,939.43M 182,836.84M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 22,875.28M 18,493.57M 32,493.42M 28,859.41M 30,451.75M
Gross Profit -- -- -- -- --
Operating income 688.85M 3,329.52M 6,344.27M -3,591.87M 7,618.66M
Income before tax 2,079.24M 1,518.79M 1,917.57M 1,810.51M 2,245.29M
Net income 1,811.21M 1,476.51M 1,850.81M 1,706.78M 2,030.14M
EBITDA -- -- -- -- --
Diluted EPS 0.14 0.11 0.14 0.13 0.15
Dividends Per Share 0.06 0.06 0.08 0.04 0.06
Total Assets 230,256.53M 252,186.43M 296,907.86M 299,904.38M 335,491.23M
Total liabilities 216,254.71M 235,782.58M 276,499.36M 282,684.45M 309,403.66M
Total equity 13,818.99M 16,202.18M 20,092.49M 16,908.98M 25,744.65M
Operating cash flow -2,139.76M -6,827.12M 2,782.24M -959.70M 5,914.61M

Valuation Measures

Dec 2019
PER8.93
ROA0.65%
ROE9.71%
Operating margin25.01%
Profit margin6.66%

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. (17.4%)
  • Lin Yuan Investment Co. Ltd. (14.8%)
  • Labor Pension New Fund (2.5%)
  • The Vanguard Group, Inc. (2.2%)
  • Shin Kong Life Insurance Co., Ltd. (2.0%)
  • Nan Shan Life Insurance Co., Ltd. (1.5%)
  • TransGlobe Life Insurance, Inc. (Invt Port) (1.4%)
  • GIC Pte Ltd. (Investment Management) (1.3%)
  • BlackRock Fund Advisors (1.3%)
  • China Life Insurance Co., Ltd. (Invt Port) (1.2%)

Contact Details

Related Companies

  • Cathay Private Equity Co. Ltd.
  • 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.
  • Capital Futures Corp.
Last Updated on 20 Oct, 2020

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