Seetheendpagesofthispresentationforanalystcertificationandimportantdisclosures,includingnon-USanalystdisclosures.J.P.Morgandoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.AsiaPacificEquityResearchApril2019TaiwanFinancialsJemmyHuangACJ.P.MorganSecurities(Taiwan)LimitedTelephone:(886)2-2725-9870Email:jemmy.s.huang@jpmorgan.comLeoWengJ.P.MorganSecurities(AsiaPacific)LimitedTelephone:(852)2800-8511Email:leo.weng@jpmorgan.comKatherineLeiJ.P.MorganSecurities(AsiaPacific)LimitedTelephone:(852)2800-8552Email:katherine.lei@jpmorgan.com2Source:Companydata,BloombergandJ.P.Morganestimates.Valuation9-Apr-19MktCapPTRatingP/EP/BROEDVDyieldBanksTickerPrice(NT$)US$mnNT$19E20E19E20E19E20E19EE.Sun2884TT24.008,42722.5N12.911.71.51.412.1%12.4%3.5%CTBC2891TT20.7513,12023.9OW9.99.01.31.212.9%13.2%5.8%Mega2886TT28.2012,43627.3N12.711.91.21.29.5%9.9%5.9%Yuanta2885TT17.806,74618.6OW10.09.30.90.99.3%9.5%5.0%First2892TT21.258,50217.6N12.811.51.21.19.6%10.2%4.7%Taishin2887TT14.255,19314.1N10.18.91.00.910.3%10.9%3.9%Sinopac2890TT11.554,22110.0N11.610.50.90.87.5%8.1%5.2%HuaNan2880TT19.257,20714.2UW14.614.01.21.28.6%8.5%3.1%InsurersCathay2882TT44.3018,04650.0N10.68.81.01.09.2%10.7%4.4%Fubon2881TT45.7515,18454.0OW8.87.61.11.012.3%12.8%4.9%ChinaLife2823TT25.553,32532.0N10.08.91.31.213.4%13.6%3.0%Shinkong2888TT8.723,46710.0N11.57.40.60.54.9%7.2%2.2%LeasingChailease5871TT133.005,561120.0OW11.710.32.42.122.1%22.0%4.1%3Banksoverinsurancefor1H19◆Limitedupsidetoconsensusearningsgivenmoderatingmacrooutlook◆FlattishNIMoutlookgivennillikelihoodofdomesticratehikes◆ModestearningsgrowthinFY19stillachievableduetolowerbasein4Q18andwithoutimminentassetqualityrisks◆SequentialincreaseinDPSand/orcashpayoutratios◆Challengingoperatingperformancein1H19duetolowertradinggains÷nds◆Pressureonhedgingan...
