Mega Financial Holding Co., Ltd (2886) Earnings: 9M Net Income Reaches NT$29.32B

Mega Financial Holding Co., Ltd on Smartkarma

Analyst coverage on Mega Financial Holding Co., Ltd by Daniel Tabbush on Smartkarma reveals a bear sentiment towards the company’s recent performance. Tabbush’s report titled “Mega Financial – NPL Formation In 1Q24 Surpasses All Peers, May YTD Net Profit Growth YoY Only 3%” highlights the weak net profit growth exhibited by Mega Financial in its May 2024 release. The surge in non-performing loans (NPLs) during the first quarter of 2024 is cited as a potential reason for this, with impairments rising approximately three times in the previous fiscal year. Notably, Mega Financial’s NPL growth in 1Q24 exceeded that of all its peers in terms of NTDm and was 90% higher on a quarter-over-quarter basis. As of May, the year-to-date net profit growth stands at a mere 3.2%, indicating potential high credit costs as a pressing concern for the company.

A look at Mega Financial Holding Co., Ltd Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Mega Financial Holding Co., Ltd. appears to have a positive long-term outlook. The company scored highly in categories such as Value, Dividend, Growth, and Momentum, with ratings of 4 out of 5 for each of these factors. This suggests that Mega Financial Holding Co., Ltd. is well-positioned in terms of its financial performance, growth potential, and shareholder returns. However, its Resilience score of 2 indicates some room for improvement in withstanding economic challenges.

Mega Financial Holding Co., Ltd. is a holding company that offers a range of financial services through its subsidiaries, including deposit acceptance, financial debenture issuance, and loan provision to enterprises. Additionally, the company provides brokerage, dealer, and insurance services. With strong scores in Value, Dividend, Growth, and Momentum, Mega Financial Holding Co., Ltd. seems to be on a positive trajectory for long-term success in the financial industry.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.

💡 Before it’s here, it’s on Smartkarma