Taiwan financial sector profits dropped significantly in the first half of 2025, according to recent data released by the Financial Supervisory Commission (FSC). The sector earned NT$378.12 billion (about US$11.8 billion), representing a 37.51% decrease compared to the same period last year. This report covers banking, insurance, securities, and futures businesses. The banking group includes domestic and foreign banks, along with bill finance companies. Meanwhile, the insurance segment consists of both life and non-life insurers.
Last year marked a record high for the financial sector, with profits reaching nearly NT$1.59 trillion—the first time earnings exceeded NT$1 trillion. This outstanding result came from strong performances in stock markets and foreign exchange. However, several factors contributed to the sharp decline in profits this year. US tariff policies and an almost 11% appreciation of the New Taiwan dollar during the second quarter heavily affected earnings across the sector.
Among the different subsectors, only banking saw a rise in profits. The banking sector recorded NT$301.88 billion in pre-tax earnings, an increase of nearly 1% year-on-year. Domestic banks showed stronger growth, with profits rising by 7.3% to NT$296.73 billion. FSC official Chang Chia-kuei explained that banks benefited from higher interest income and fees. Additionally, they faced fewer bad debt provisions. Despite this, declines in investment income and other non-core sources reduced overall gains.
On the other hand, the insurance industry faced steep losses. The sector posted NT$19.4 billion in profits, falling 91.6% compared to last year. Life insurers experienced the sharpest drop, with pre-tax profits tumbling 98.4%. This decline primarily resulted from a NT$489 billion fall in investment income. In contrast, non-life insurers managed a modest increase of 4.6% in profits, earning NT$15.9 billion. The securities, futures, and investment trust sectors combined reported NT$56.83 billion in profits, which marked a 25.31% decline.
Securities firms particularly struggled, with profits falling 34.56% to NT$39.56 billion. Reduced trading volumes in March and April played a major role in this decline.In summary, Taiwan financial sector profits faced a challenging first half in 2025. While banking showed resilience, insurance and securities sectors declined sharply due to external economic pressures. The overall drop signals a cautious outlook for the rest of the year.
