Union Bank of Taiwan (2838) AI Stock Analysis

Union Bank of Taiwan

(TWSE:2838)

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Rating:38Underperform

Price Target:TWD 18.50▼(-5.85% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is very low, driven primarily by a precarious financial position. The most significant factor is the combination of an explosive increase in balance sheet leverage and deeply negative free cash flow, indicating potential liquidity stress. Bearish technical trends confirm market weakness. A reasonable valuation and dividend yield provide only a minor cushion against these substantial risks.

Positive Factors

Steady Revenue ExpansionSustained revenue expansion indicates that Union Bank of Taiwan is continuing to grow its banking franchise across its customer base and service channels. The acceleration in 2025 provides a stronger operating foundation for continued earnings generation over the next several quarters.

Negative Factors

Sharp Leverage IncreaseThe sharp increase in leverage is a material deterioration from Union Bank of Taiwan’s own historical balance-sheet profile. Higher debt relative to equity reduces financial flexibility, increases sensitivity to funding and credit conditions, and may constrain the bank’s ability to absorb shocks or pursue growth.

Union Bank of Taiwan (2838) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 91.00B
Dividend Yield: 2.34%
Average Volume (3M): 1.93M
Price to Earnings (P/E): 14.2
Beta (1Y): 0.22
Revenue Growth: -6.39%
EPS Growth: 27.60%
Country: TW
Employees: 4,012
Sector: General
Sector Strength: 55
Industry: Banks - Regional

Union Bank of Taiwan Business Overview & Revenue Model

Company Description

Established in 1989 and headquartered in Taipei, Taiwan, Union Bank of Taiwan delivers a wide spectrum of banking and financial solutions complemented by diverse business ventures. The institution offers a comprehensive range of traditional banking s...

Union Bank of Taiwan Financial Statement Overview

Summary

Financial performance is severely strained. While revenue shows modest growth, the balance sheet reveals a dangerous surge in leverage (debt-to-equity from 0.10 to 1.45) and the cash flow statement shows massive outflows (FCF at -TWD 12.2B). The deep cash burn and heightened financial risk heavily outweigh the marginal top-line improvement.

Income Statement

45Neutral

Balance Sheet

30Negative

Cash Flow

10Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	38.67B	34.74B	32.75B	29.35B	22.06B	19.64B
Gross Profit	22.94B	20.20B	18.83B	17.73B	16.93B	16.67B
EBITDA	10.29B	10.03B	8.93B	7.90B	7.26B	7.85B
Net Income	7.06B	6.08B	5.22B	4.32B	3.54B	4.46B
Balance Sheet
Total Assets	1.06T	1.06T	995.46B	939.15B	845.00B	841.59B
Cash, Cash Equivalents and Short-Term Investments	52.45B	103.15B	52.68B	43.30B	37.22B	43.32B
Total Debt	108.83B	123.80B	7.63B	7.74B	7.66B	10.64B
Total Liabilities	966.37B	970.36B	916.00B	868.50B	781.88B	775.72B
Stockholders Equity	87.28B	85.28B	77.23B	68.43B	61.07B	65.14B
Cash Flow
Free Cash Flow	-22.06B	-12.24B	-3.28B	17.78B	-5.27B	-3.13B
Operating Cash Flow	-20.75B	-10.79B	-1.76B	21.44B	-3.06B	-2.70B
Investing Cash Flow	11.90B	-803.95M	-2.63B	-3.84B	-4.40B	-3.55B
Financing Cash Flow	-9.62B	-1.04B	51.13M	404.18M	-8.92B	5.60B

Union Bank of Taiwan Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2838 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2812	64Neutral	TWD 111.48B	11.64	―	2.25%	2.05%	8.92%
TW:6005	63Neutral	TWD 67.77B	5.63	―	1.46%	80.75%	158.29%
TW:2845	58Neutral	TWD 62.04B	12.35	―	4.08%	-13.12%	18.06%
TW:2855	56Neutral	TWD 81.83B	5.18	―	4.24%	544.86%	347.96%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2889	55Neutral	TWD 58.31B	13.18	―	3.13%	65.79%	174.93%
TW:2838	38Underperform	TWD 90.31B	14.24	―	2.34%	-6.39%	27.60%

* General Sector Average

Performance Comparison

TW:2838 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2838	Union Bank of Taiwan	19.65	2.18	12.47%
TW:2812	Taichung Commercial Bank Co., Ltd.	17.35	-2.42	-12.24%
TW:2845	Far Eastern International Bank	12.60	0.52	4.33%
TW:2855	President Securities Corp.	49.80	26.05	109.73%
TW:2889	IBF Financial Holdings Co., Ltd.	15.95	0.64	4.16%
TW:6005	Capital Securities Corp.	27.40	5.73	26.46%

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

Union Bank of Taiwan AI Stock Analysis