Fubon Financial Holding Co. (2881), Taiwan's financial giant, has reported a net loss of NT$5.79 billion for May due to the rapid appreciation of the New Taiwan Dollar, marking its first loss in 17 months, thereby shocking the financial market. The primary reason for this loss was attributed to its subsidiary, Fubon Life, which experienced foreign exchange losses amounting to NT$9.14 billion.

In response, Tsai Ming-Jung, chairman of the Fubon Group, commented during an interview, "No one can predict exchange losses with certainty." Despite the fact that Fubon Bank, Fubon Insurance, and Fubon Securities performed steadily in May, Fubon Life's substantial losses due to severe fluctuations in the NT dollar's exchange rate dragged down the overall results.

For the first five months of this year, Fubon Financial reported a net profit of NT$39.49 billion, with earnings per share (EPS) of NT$2.89. The company noted that the NT dollar appreciated against the US dollar by 6.98% in May, marking the largest monthly increase since 1989, leading to significant forex losses for Fubon Life's unhedged US dollar positions. To maintain a stable capital structure, Fubon Life has applied to the regulatory authorities for an increase in foreign exchange reserves totaling NT$27 billion, which has been applied in full to cover the losses.

Fubon emphasized the need to continue flexible adjustments to its hedging strategy to manage exchange rate risk. Despite facing significant exchange losses, Fubon Life's premium income continued to grow, achieving NT$53.6 billion in first-year premiums (FYP) for the first five months, a 15% year-on-year increase, with total premiums reaching NT$157.1 billion, likely to rank second in the industry.

When asked about the potential continuation of exchange losses, Tsai Ming-Jung, before attending the "Fubon Sustainable Future Forum," remarked, "No one can say for sure about these losses!" He also emphasized that Taiwan's exports grew by 38% in May, setting a historical record and indicating robust economic momentum. Regarding the outlook for the Taiwan stock market, he humorously stated, "No one can be a true oracle of the Taiwan stock market," yet expressed an optimistic view of Taiwan's economic prospects.