China Development Financial Holdings (hereinafter referred to as CDF") held its 2024 Q2 Investor Conference today (2) to announce its financial performance and overall operating report. CDF' net profit after tax in the first half of 2024 reached NT$17 billion (hereinafter the same), an annual growth of 67%; net worth increased by approximately NT$35 billion compared to the end of last year.
Paul Yang, CEO of CDF, stated that the primary goal of KDB Financial Holdings is to improve the financial performance of the financial holding company and maintain a sound dividend policy. Each of its subsidiaries is committed to leveraging its unique advantages. KGI Life Insurance adheres to sound asset-liability management to boost overall profit growth; KGI Securities actively expands wealth management and overseas businesses with its long-term market leadership; KGI Bank continues to strengthen cooperation with the group's subsidiaries and strives to expand its business scale; KGI Securities, which has grown rapidly in recent years, will actively expand its customer base and establish retail business; CDIB has rich industry experience and will continue to support Taiwan's industry and development fund management business, and increase fixed income investment to strengthen the stability of revenue. The five major subsidiaries will jointly drive the group's growth with the strategic thinking of ONE KGI and demonstrate complementary synergies.
The subsidiaries of CDF achieved steady profit performance in the first half of the year. KGI Life Insurance's net profit after tax reached NT%10.99 billion in the first half of this year, and other comprehensive income was 24.7 billion yuan, of which the profit margin of new contract value increased to 43.5%. KGI Life Insurance continued to increase the contribution of its own channels, and the first-year premium income (FYP) from business channels increased by 22% compared with the same period last year. At the same time, KGI Life Insurance also seized market opportunities, and the overall investment income increased by 33% compared with the same period last year.
KGI Bank's net profit after tax in the first half of this year was NT$2.8 billion, and its net profit before deposits grew by 20% year-on-year. The loan business grew by 13% in the first half of this year, driving the continued growth of asset size. The fee income grew by nearly 50% year-on-year, and the proportion of revenue continued to increase, improving the stability of profits.
KGI Securities achieved remarkable growth in all its businesses in the first half of this year, with net profit after tax of NT$5.517 billion, a year-on-year increase of 49%. The active development of wealth management business also achieved good results. As of the end of June this year, the asset under management (AUM) scale of the wealth management business grew by 40% year-on-year, and the annual growth rate of wealth management business revenue reached 53%.
CDIB was affected by the fluctuation of overseas investment portfolio valuations, and its net profit in the first half of this year was NT$325 million. In the first half of this year, CDIB invested a total of NT$8.5 billion in four new asset management businesses, and its total assets under management reached NT$62.4 billion, a 16% increase from the end of last year.
KGI SITE, which was upgraded to a first-tier subsidiary of CDF last year, has seen rapid growth in its business. As of the end of June this year, its public fund assets under management(AUM) reached NT$230.8 billion, ranking among the top 10 in the industry. It has also created a complete and diversified product selection based on the investment needs of different customers, including active and passive ETFs products. In the future, KGI SITE will continue to expand its customer base and launch innovative products that exceed the performance of existing funds to achieve sustainable growth in the scale of assets under management.
