Overseas investors bought net NT$37.2B of Taiwan shares

Overseas investors purchased a net NT$37.2 billion of Taiwan shares in the latest reporting period, reflecting renewed confidence in the island's financial sector. This inflow aligns with strong performance from key banking institutions, including Taichung Commercial Bank Co Ltd (TWSE:2812) and First Financial Holding Co Ltd (TWSE:2892), both of which reported robust pre-tax earnings as of September 30, 2025. Taichung Commercial Bank posted a pre-tax income of 10.4 billion TWD, supported by its focus on SMEs, retail banking, and digital innovation. The bank has maintained a 10% compound annual growth rate in pre-tax income over the past decade, with a 6% increase in the most recent year. Meanwhile, First Financial Holding Co Ltd, a larger banking conglomerate with a market cap of 417 billion TWD, reported pre-tax income of 32.4 billion TWD. Its diversified business model, spanning traditional banking, wealth management, and insurance, has driven a 6% CAGR over the past ten years, with a 9% rise in pre-tax income year-over-year.

The inflow of foreign capital may signal optimism about Taiwan's banking sector, which has demonstrated resilience through prudent risk management and strategic expansion. Taichung Commercial Bank's 122.2 billion TWD market cap and First Financial's integrated financial services highlight their roles as anchors in the sector. Analysts suggest that sustained profitability, coupled with digital transformation efforts, could further attract institutional investors seeking stable returns in Asia's evolving financial landscape.