Cathay Financial Holding reports NT$17 bil. profit

The China Post news staff

TAIPEI, Taiwan — Cathay Financial Holding Co. reported NT$17 billion after-tax profit and NT$1.59 earning per share for 2012 during its road show yesterday. Cathay United Bank made the largest contribution to the profit with NT$13.07 billion.

The net book value of Cathay Financial Holding at the end of last year was NT$244.8 billion, net value per share NT$23 and the return on equity 7.4 percent.

According to the estimate of Cathay Financial, the total value of real properties owned by the group is expected to increase NT$44.3 billion in the next five year. Forty-four of over 100 properties owned by the group for investment purposes were selected for appraisal, which led to the conclusion of a NT$44.3 billion increase in appraised value after the recognition of adjustment of IFRS accounting principles and 20 percent of required special reserve. The group said that the demand for commercial real estate is still strong and has not seen any signs of downward correction. In order to increase the investment return, however, some of the commercial building owned by the Group will be converted to hotels.