The FSC announced yesterday that the profit statistics of the three financial industries last year were only 479.8 billion yuan, a decrease of 49% from the previous year and a nine-year low.

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[Reporter Wang Menglun/Taipei Report] The Financial Supervisory Commission announced yesterday that the profit statistics of the three financial industries (banking, insurance, and securities and futures) last year were only 479.8 billion yuan, a decrease of 49% from the previous year and a record low in nine years; Among the three industries, the insurance industry (life insurance) was the hardest-hit household, showing the worst performance in 14 years, and the property insurance industry suffered an even bigger loss of 190.5 billion yuan, the worst in history.

The banking industry earns 432.1 billion yuan, the best in history

The three financial industries made impressive profits the year before, with a pre-tax profit of 935.5 billion yuan, but last year the pigs and sheep changed color, and the overall profit was only 479.8 billion yuan.

Among them, the "banking industry" performed the best. Last year's pre-tax profit was 432.1 billion yuan, an increase of 12% from the previous year, and it also surpassed the record in 2019, making it the best profit year in the history of the banking industry.

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There are six major industries in the "Banking Industry", including domestic banks (National Bank of China), foreign banks in Taiwan, China Land Bank in Taiwan, credit unions, bills and postal savings. The National Bank is the main source of contribution to the overall banking industry. Last year, for example, accounted for nearly 90%.

Why is the banking industry so profitable?

Tong Zhengzhang, deputy director of the Banking Bureau, said that last year, the increase in net interest income was mainly due to interest rate hikes and loan growth.

Compared with the banking industry "making a lot of money", the insurance industry is "miserable".

According to statistics from the Insurance Bureau, not only did the insurance industry fail to make money last year, but it also lost 18.6 billion yuan, mainly due to the drag from the property insurance industry; ) worst year since.

Officials from the Insurance Bureau pointed out that the property insurance industry lost 190.5 billion yuan last year in claims for epidemic prevention policies, which was the worst record in history; the life insurance industry also made a pre-tax profit of only 170 million yuan last year due to financial market shocks. 1.9 billion yuan, an annual decrease of 56%.

The "Securities and Futures Industry" had profit but no loss last year, and the pre-tax profit was 663.

300 million yuan, but a decrease of 52% from the previous year.

The Securities and Futures Bureau stated that due to the impact of interest rate hikes, international politics and economics, inflation and war last year, the trading volume of Taiwan stocks decreased throughout the year, the brokerage business income of securities companies declined, and the income from self-operated and underwriting services also dropped significantly, which affected its profit performance.

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