TSEC:2891

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

CTBC Financial Holding

Executive Summary

CTBC Financial Holding Co., Ltd. engages in the banking, bills financing, credit card, trust, securities, futures, asset management, and other financial related business investment activities.


Snowflake Analysis

Solid track record, good value and pays a dividend.


Similar Companies

Share Price & News

How has CTBC Financial Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2891 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

2891

4.2%

TW Banks

3.9%

TW Market


1 Year Return

-1.9%

2891

-1.6%

TW Banks

9.5%

TW Market

Return vs Industry: 2891 matched the TW Banks industry which returned -1.4% over the past year.

Return vs Market: 2891 underperformed the TW Market which returned 8.2% over the past year.


Shareholder returns

2891IndustryMarket
7 Day4.0%4.2%3.9%
30 Day5.1%5.4%6.2%
90 Day-7.8%-5.0%1.1%
1 Year2.9%-1.9%2.4%-1.6%14.6%9.5%
3 Year23.5%6.4%47.4%30.2%25.0%10.5%
5 Year27.4%1.7%60.6%30.5%49.4%22.1%

Price Volatility Vs. Market

How volatile is CTBC Financial Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CTBC Financial Holding undervalued compared to its fair value and its price relative to the market?

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2891 (NT$20.65) is trading below our estimate of fair value (NT$34.26)

Significantly Below Fair Value: 2891 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2891 is good value based on its PE Ratio (9.3x) compared to the Banks industry average (13.6x).

PE vs Market: 2891 is good value based on its PE Ratio (9.3x) compared to the TW market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: 2891 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 2891 is overvalued based on its PB Ratio (1.2x) compared to the TW Banks industry average (1x).


Next Steps

Future Growth

How is CTBC Financial Holding forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2891's forecast earnings growth (8.2% per year) is above the savings rate (0.9%).

Earnings vs Market: 2891's earnings (8.2% per year) are forecast to grow slower than the TW market (15.4% per year).

High Growth Earnings: 2891's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2891's revenue is expected to decline over the next 3 years (-10.4% per year).

High Growth Revenue: 2891's revenue is forecast to decline over the next 3 years (-10.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2891's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has CTBC Financial Holding performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2891 has high quality earnings.

Growing Profit Margin: 2891's current net profit margins (10.4%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: 2891's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: 2891's earnings growth over the past year (24%) exceeds its 5-year average (5.2% per year).

Earnings vs Industry: 2891 earnings growth over the past year (24%) exceeded the Banks industry -3.8%.


Return on Equity

High ROE: 2891's Return on Equity (12.9%) is considered low.


Next Steps

Financial Health

How is CTBC Financial Holding's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 2891's Assets to Equity ratio (18.6x) is moderate.

Allowance for Bad Loans: Insufficient data to determine if 2891 has a sufficient allowance for bad loans.

Low Risk Liabilities: 2891 reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if 2891 has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: 2891 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if 2891 has an appropriate level of bad loans.


Next Steps

Dividend

What is CTBC Financial Holding's current dividend yield, its reliability and sustainability?

4.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2891's dividend (4.84%) is higher than the bottom 25% of dividend payers in the TW market (2.51%).

High Dividend: 2891's dividend (4.84%) is low compared to the top 25% of dividend payers in the TW market (5.56%).


Stability and Growth of Payments

Stable Dividend: 2891's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2891's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.2%), 2891's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2891's dividends in 3 years are forecast to be well covered by earnings (47.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Daniel Wu

10.25yrs

Tenure

Mr. I. Kwei Wu, also known as Daniel, serves as the Chief Strategic Officer of Taishin Holdings. Mr. Wu served as Senior Executive Vice President at CTBC Bank Co., Ltd. He has been the President of CTBC Fi ...


Leadership Team

NamePositionTenureCompensationOwnership
I. Kwei Wu
President10.25yrsno data0.050% NT$203.3m
Ya-Ling Chiu
Financial Officer & Head of Financial Management Department3.42yrsno data0.0050% NT$20.2m
Ken Der Chen
Executive Vice President and Director of Planning & Operation Divisionno datano datano data
Tsai Jay Hsia
Chief Investment Officer4.75yrsno data0.0067% NT$26.9m
Sting Yang
Accounting Officer11.92yrsno data0.0020% NT$8.0m
Titan Chia
CTO & Head of Financial Technology Department2.17yrsno datano data
Roger Kao
Chief Administration Officer3.42yrsno datano data
Justine Shen
Head of Investor Relations Department3.42yrsno datano data
Y. D. Deng
General Counsel0.42yrno datano data
Aaron King
Chief Compliance Officer4.42yrsno datano data

3.4yrs

Average Tenure

Experienced Management: 2891's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wen-Long Yen
Chairman of the Board3.5yrsno data0.41% NT$1.7b
K. S. Chen
Director6yrsno data0.0086% NT$34.6m
Chao-Chin Tung
Vice Chairman0.75yrno data0.0014% NT$5.7m
Shih-Chieh Chang
Independent Director3.5yrsno data0.00069% NT$2.8m
Sheng-Yung Yang
Independent Director1yrno data0.00011% NT$442.9k
Cheung-Chun Lau
Independent Director1yrno datano data
Chih-Cheng Wang
Independent Director1yrno datano data

1.0yrs

Average Tenure

Experienced Board: 2891's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CTBC Financial Holding Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CTBC Financial Holding Co., Ltd.
  • Ticker: 2891
  • Exchange: TSEC
  • Founded: 2002
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: NT$402.613b
  • Shares outstanding: 19.50b
  • Website: https://www.ctbcholding.com

Number of Employees


Location

  • CTBC Financial Holding Co., Ltd.
  • No. 168, Jingmao 2nd Road
  • 27 and 29 Floors
  • Taipei City
  • 115
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2891TSEC (Taiwan Stock Exchange)YesCommon SharesTWTWDMay 2002
2891BTSEC (Taiwan Stock Exchange)PREF SHSTWTWDJan 2018
2891CTSEC (Taiwan Stock Exchange)PREF SHSTWTWDMay 2019

Biography

CTBC Financial Holding Co., Ltd. engages in the banking, bills financing, credit card, trust, securities, futures, asset management, and other financial related business investment activities. The company offers loans, guarantees, foreign exchange, bonds, proprietary trading, safe deposit boxes, derivatives, factoring, online banking, and lottery services; installment, leasing, and account receivable services; and transaction financing, cash management, fiduciary and agent, international trade financing, syndication lending, structured finance, and financial advisory services. It also provides life, health, annuity, group, and investment insurance products; and property insurance products, including fire, marine, miscellaneous casualty, voluntary auto, and personal accident insurances. In addition, the company offers securities and futures related services, as well as publicly-traded securities and investment opportunities in emerging stocks and futures trading; and asset-backed security services. Further, it is involved in the venture capital business investing in information technology, communications, biotechnology, health care, cultural, creative, and alternative energy industries, as well as companies in traditional industries; debt and mortgage management business; and overseas, international, and payment business. Additionally, the company provides securities investment trust, consulting, foreign financial institutions, discretionary investment, and offshore fund master agent services, as well as security services to corporate entities. It operates approximately 152 branches in Taiwan; and 116 overseas branches in the United States, Japan, Canada, the Philippines, Indonesia, Vietnam, India, and Singapore. The company was formerly known as ChinaTrust Financial Holding Co., Ltd. and changed its name to CTBC Financial Holding Co., Ltd. in June 2013. CTBC Financial Holding Co., Ltd. was founded in 2002 and is headquartered in Taipei City, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 15:45
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.