TAIPEI (Taiwan News) — Taiwan’s financial sector posted NT$604.1 billion (US$18.6 billion) in pretax profit from January to August, down 26.27% year-on-year, the Financial Supervisory Commission said.

The commission attributed the decline mainly to US tariff policies and the rapid appreciation of the New Taiwan dollar in the second quarter. As financial markets and exchange rates stabilize, the profit drop is gradually easing, per CNA.

The insurance industry reported NT$78.8 billion in profit for the first eight months, down 74.2% from a year earlier. Within the sector, life insurance profits fell 80.3% to NT$56.2 billion, while non-life insurance profits rose 14.7% to NT$22.6 billion.

According to the FSC’s Insurance Bureau, the drop in life insurance earnings was mainly caused by underwriting losses totaling NT$62.4 billion, while the increase in non-life profits was driven by NT$6.8 billion in business revenue.

Securities-related industries posted a combined NT$936.6 billion in pretax profit between January and August, down 11.5% year-on-year. Within the segment, securities firms saw a 16.6% decline, futures firms fell 2%, while investment trusts grew 11.2%.

Chang Chia-kuei (張嘉魁), deputy director-general of the FSC’s Banking Bureau, said the banking industry posted NT$431.6 billion in pretax earnings in the first eight months, a record high for the period and a 5.8% year-on-year increase. Domestic banks contributed NT$405.6 billion, driven by higher interest and fee income as well as lower bad debt expenses.

However, banking revenue was partially offset by a NT$3.6 billion loss in deposit and foreign exchange businesses in the second quarter due to exchange rate fluctuations, Chang added.