Taiwan financial sector profits fall 37.51% in 1st half of year

台灣金融業上半年獲利下降37.51%

TAIPEI (Taiwan News) — Taiwan’s financial sector posted NT$378.12 billion (US$11.8 billion) in profits during the first half of 2025, marking a 37.51% year-on-year decline, the Financial Supervisory Commission said Monday.

The data covers the banking, insurance, securities, and futures sectors. The banking category includes domestic and foreign banks operating in Taiwan, as well as bill finance companies. The insurance sector includes both life and non-life insurers, per CNA.

Last year, the sector posted a record profit of nearly NT$1.59 trillion — the first time earnings surpassed the NT$1 trillion mark — driven by strong performance in the stock and foreign exchange markets.

This year, however, US tariff policies and an almost 11% appreciation of the New Taiwan dollar in the second quarter significantly impacted sector earnings.

Among the subsectors, only banking recorded profit growth. FSC official Chang Chia-kuei (張嘉魁) said the banking segment reported NT$301.88 billion in pre-tax profits, up nearly 1% from the same period last year. Domestic banks accounted for NT$296.73 billion, a 7.3% increase year-on-year.

Chang attributed the growth to higher interest and fee income, as well as lower provisions for bad debts. However, declines in investment and other non-core income partially offset those gains.

Foreign exchange income from deposit and remittance services turned negative due to the stronger NT dollar, posting a loss of NT$18.28 billion — a year-on-year decrease of roughly NT$22.4 billion.

The insurance sector recorded NT$19.4 billion in profits, a sharp 91.6% decline from the previous year. Life insurers reported NT$3.5 billion in pre-tax profits, down 98.4%, largely due to a NT$489 billion drop in investment income. In contrast, the non-life insurance sector posted NT$15.9 billion in pre-tax profits, up 4.6% year-on-year.

The securities, futures, and investment trust sectors posted a combined NT$56.83 billion in profits in the first half, a decline of 25.31%. Securities firms earned NT$39.56 billion, down 34.56% year-on-year, primarily due to decreased trading volumes on the stock market in March and April.