Taiwanese financial institutions reported record pre-tax profits of TWD370.997bn ($11.81bn) for the first quarter of 2026, a 37.09% year-on-year increase, Taipei Times reports. The Financial Supervisory Commission (FSC) attributed the surge to a bullish domestic stock market and high investment returns on May 10.

This record performance highlights Taiwan's role as a primary beneficiary of the global artificial intelligence (AI) boom. The massive capital requirements of semiconductor firms and high trading volumes on the TAIEX have created a perfect environment for local lenders and brokers to capture unprecedented margins.

The banking sector contributed TWD195.24bn ($6.21bn) to the total pre-tax profit, representing a 28.5% rise year-on-year. This category encompasses local entities, international and mainland Chinese banks with Taiwanese operations, credit unions, and various savings agencies. Specifically, domestic lenders saw their earnings climb 20.5% to reach TWD174.28bn ($5.55bn), a new high for the period.

FSC Banking Bureau Deputy Director-General Chang Chia-kui noted that these institutions thrived due to heightened interest revenue, service charges, and robust investment returns. Industry insiders attributed the success to a bullish stock market driven by AI optimism, which mitigated geopolitical anxieties and bolstered wealth management fees. Furthermore, the global hunger for AI hardware encouraged tech firms to pursue substantial loans for infrastructure growth.

In the insurance industry, pre-tax returns grew by 16% to TWD108.2bn ($3.44bn). Life insurance companies accounted for the majority of this, rising 13.5% to TWD96.4bn ($3.07bn), while general insurers experienced a 43.9% jump to TWD11.8bn ($375.47mn).

The securities industry witnessed a dramatic 164% explosion in profits, totalling TWD67.56bn ($2.15bn). This record was set as the TAIEX consistently hit new peaks, driving up trading volumes. Brokerages were the primary beneficiaries of this activity, with profits soaring 225% to TWD54.23bn ($1.73bn). Additionally, investment trusts saw their net earnings rise 49.94% to TWD9.99bn ($317.87mn), supported by expanding assets under management and the resulting fee income.