Taichung Commercial Bank Co., Ltd. (2812) AI Stock Analysis

Taichung Commercial Bank Co., Ltd.

(TWSE:2812)

Select Model

Rating:64Neutral

Price Target:TWD 18.50▲(6.63% Upside)

Action:initiatedcoverage

Date:11/09/26

Taichung Commercial Bank scores moderately well, led by a steadily growing franchise: five years of compounding revenue and earnings growth, stable margins, a consistently building capital base and assets surpassing NT$1 trillion. Valuation is supportive at roughly 10.5x earnings with a 2.24% yield. The score is held back by technicals, with the shares trading below all major moving averages on negative MACD momentum, and by fundamental watch items including compressing spread profitability, a sharp one-year jump in wholesale borrowings that lifted leverage, and lumpy operating cash flow. Extremely low RSI and Stochastic readings suggest the recent sell-off has been severe, which could set up a near-term rebound if sentiment stabilizes.

Positive Factors

Multi-year earnings growthA sustained multi-year increase in revenue and earnings indicates expanding operating scale and durable demand for the bank’s services. The particularly strong 2025 performance strengthens near-term earnings capacity and provides a foundation for continued investment in lending, digital channels, and customer relationships.

Negative Factors

Sharp leverage increaseThe sharp 2025 increase in debt-to-equity materially weakens balance-sheet flexibility even as equity continues to rise. Greater leverage increases sensitivity to funding and refinancing conditions, and could constrain the bank’s ability to pursue growth or withstand weaker operating conditions.

Taichung Commercial Bank Co., Ltd. (2812) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 112.44B
Dividend Yield: 2.25%
Average Volume (3M): 14.68M
Price to Earnings (P/E): 11.6
Beta (1Y): 0.16
Revenue Growth: 2.05%
EPS Growth: 8.92%
Country: TW
Employees: 1,809
Sector: General
Sector Strength: 55
Industry: Banks - Regional

Taichung Commercial Bank Co., Ltd. Business Overview & Revenue Model

Company Description

Taichung Commercial Bank Co., Ltd. delivers a diverse range of banking and financial services across Taiwan. The institution offers a variety of deposit products, including savings, time, and foreign currency demand accounts, alongside services for c...

Taichung Commercial Bank Co., Ltd. Financial Statement Overview

Summary

Fundamentals are solid and improving. Revenue has more than doubled since 2020 to roughly NT$34.8 billion and net income has risen from NT$4.0 billion to NT$9.1 billion, with net margins steady in the 25%-29% range and ROE trending toward double digits. The balance sheet has scaled past NT$1 trillion in assets with equity building consistently to about NT$91.7 billion (~9% of assets). Offsetting this, core spread profitability has compressed sharply (gross-level margin down from ~82% to ~59%), borrowings jumped from NT$14.6 billion to NT$64.4 billion in one year (debt/equity from 0.18 to 0.70), and operating cash flow is volatile, falling ~40% in the latest year to NT$14.6 billion despite healthy ~87% cash conversion of net income.

Income Statement

78Positive

Balance Sheet

70Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	36.89B	34.76B	32.26B	27.43B	19.84B	16.70B
Gross Profit	22.47B	20.64B	19.31B	17.50B	15.03B	13.73B
EBITDA	12.45B	11.45B	10.42B	8.71B	7.04B	6.07B
Net Income	10.11B	9.06B	8.29B	6.82B	5.34B	4.80B
Balance Sheet
Total Assets	1.02T	1.01T	972.08B	877.95B	807.96B	772.68B
Cash, Cash Equivalents and Short-Term Investments	51.82B	75.00B	66.08B	70.93B	66.68B	56.16B
Total Debt	68.47B	64.36B	14.64B	17.59B	17.35B	17.35B
Total Liabilities	926.85B	922.76B	889.99B	801.43B	738.73B	709.22B
Stockholders Equity	96.05B	91.75B	82.09B	76.51B	69.23B	63.46B
Cash Flow
Free Cash Flow	-1.92B	12.66B	22.73B	24.54B	763.54M	-2.81B
Operating Cash Flow	-590.21M	14.62B	23.96B	26.52B	3.56B	-1.12B
Investing Cash Flow	-12.60B	-37.66B	-31.24B	-27.28B	4.24B	-6.32B
Financing Cash Flow	13.47B	29.09B	-3.65B	3.11B	690.42M	8.52B

Taichung Commercial Bank Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2812 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2812	64Neutral	TWD 109.87B	11.61	―	2.25%	2.05%	8.92%
TW:6005	63Neutral	TWD 66.78B	5.70	―	1.45%	80.75%	158.29%
TW:2838	59Neutral	TWD 88.70B	14.20	―	2.35%	-6.39%	27.60%
TW:2845	58Neutral	TWD 61.30B	12.45	―	4.08%	-13.12%	18.06%
TW:2855	56Neutral	TWD 80.07B	5.27	―	4.13%	592.27%	347.85%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2889	55Neutral	TWD 57.76B	13.10	―	3.13%	65.79%	174.93%

* General Sector Average

Performance Comparison

TW:2812 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2812	Taichung Commercial Bank Co., Ltd.	17.35	-2.42	-12.24%
TW:2838	Union Bank of Taiwan	19.60	2.04	11.59%
TW:2845	Far Eastern International Bank	12.60	0.52	4.33%
TW:2855	President Securities Corp.	51.10	27.31	114.77%
TW:2889	IBF Financial Holdings Co., Ltd.	15.95	0.68	4.49%
TW:6005	Capital Securities Corp.	27.60	6.02	27.90%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Taichung Commercial Bank Co., Ltd. AI Stock Analysis