Thank you for joining Fubon 's First Half Analyst Meeting. In the briefing today, we'll start with an overview of the first half results. Please turn to page five of the presentation. Firstly, regarding the business highlights. T he holding company's net profit and earnings per share both top among the holding company peers in the market, while the total asset is above $11.9 trillion. The strategic move Fubon Asset Management completed its merger decision in April. In Fubon Life, the profit is top among the peers in Taiwan, while the premium is number two in the market. In spite of the market volatility, the total investment returns still reach at 3.76%, while the capital position remains solid. In Taipei Fubon Bank, the net profit is at a historically high level for the same period and up by 20% year-over-year.
That is supported by the net interest income and also net fee income's double-digit growth, while the asset quality remains stable. In Fubon Securities, the net profit was down by 18.5% as the market daily turnover came down. While the profit still remains solid at top two in the market, and the major business lines' market share also remains at top three. In Fubon Insurance, the profit was up by 18%, mainly supported by the premium's growth of over 9% and also the underwriting's results' strength, especially from the improvement of the claim ratio. In page six, the holding company's net profit and EPS show a declining trend in the first half that mainly reflects the currency's fluctuation and also the capital market's volatility.
While in page seven, the net profit across the subsidiaries in the banking side and also Fubon Insurance all delivered growth, while the Fubon Life, Fubon Securities came down, that mainly reflects the currency fluctuation and also the capital market volatility. While in the meantime, the market share for the major business lines was well maintained. In page eight, the assets slightly increased up to $11.9 trillion, while the net worth came down 12.9%. That reflects also the currency fluctuation, the capital market volatility, and also the cash dividends distribution. In page nine, the ROA and ROE also have a declining trend in the first half, while the absolute level of ROA is at 0.85% and ROE at 11.63%. That still remains at a solid level. In page 10, regarding the ESG's development, we made a progressive goals announcement regarding the decarbonization in investment and underwriting.
We aim to exit from the thermal coal-related industry by the end of year 2030 and also exit from the unconventional oil and gas-related industries by the end of year 2040. Regarding the transparency's progress, we made Fubon Asset Management should start the first publication of the stability reports this year. Also, for the TCFD reports, we have Fubon Securities publish its first one this year. From the green finance perspective, we continue to increase and the outstanding reached over NT$2.55 trillion as of the end of June. Next, let's move on to the first subsidiaries, Fubon Life. In page 12, the premiums, including first-year premium and also the regular premium and total premium, all deliver positive growth, and we rank top two among peers. In page 13, the first-year premium shows a 13.1% year-over-year growth.
As we focus on a higher CSRM product strategy, specifically the regular paid and the protection policies are our growth focus. As you can see, the regular paid's contribution also increased to 63.2%. Another focus is in the foreign currency policy. They also grew the contribution up to 49.5% of the FYP. In page 14, the FYP grew over 17% on the back of the regular paid product strategy, w hile the VNB grew at 7.3% as we adjust the product mix and also the regular paid participating policies ourselves. In page 15, in terms of channels, we have around 70% of the FYP delivered from the internal ones that include Taipei Fubon Bank and also tied agent. In the tied agent specifically, we see a meaningful growth of over 29% year-over-year. While the bank assurance contribution FYP also tops in the industry.
On the right-hand side of the FYP, the growth is also quite well balanced across channels, specifically from bancassurance and tied agent. In page 16, in terms of investment. T he investment return from domestic and overseas equity is a highlight. If we compare Fubon's annualized return of over 20% compare with the market, the TAIEX was down 3%, and the more outperformed one in the U.S. NASDAQ index is 6% up this year as of June. We can see Fubon's result significantly outperformed the benchmark. Therefore, the cash level reached a higher level at over 7%, and that allowed us to dynamically adjust allocation going forward. While the investment return from real estate turned normalized in the first half, as we experienced the valuation losses in Q1 2024 from overseas investment properties. In page 17, the overseas fixed income's allocation basically is stable.
They're focus in the investment grades of corporate credit and financial bonds. In page 18, the composition of the investment income, we can see the recurring income is slightly up first half year-over-year, specifically from the contribution of the domestic stock dividend. That's more of a timing effect. While we expect the full year's contribution from dividend income will be around flat to slightly up. The challenge for the first half is the very strong NT dollar appreciation against the U.S. dollar by about 10% year to June. Therefore, we have FX-related losses increased quite meaningfully in the first half. While the currency's movement recently has turned stabilized. The overall investment return before hedge and FX, that's at 6.24%, which is a year-over-year increase. The total return came down to 3.76%, mainly from the currency's losses. On page 19, again, on the back of the U.S.
tariff and also the trade policy's uncertainty, the foreign currency's losses make a significant NT dollar appreciation, and therefore, the hedging cost increased. That's including hedging costs and FX gains t hat reached 3.89 basis points. While in the FX reserve, we gradually build it up. In June, it's around $51.6 billion and f urther increase to $54.2 billion in July and r ecently, in August, we have reached $65 billion around that level. We aim to continue to accumulate to strengthen our hedging flexibility. Going forward, we continue to take a dynamic approach to adjust the hedging position to manage both the risk and also the hedging costs in the long run. In page 20, in terms of the spread, we deliver a +1 between the cost of liability of 3.11% and investment return of 3.76%.
While -1 between recurring return after hedge, that is 2.36% and the break-even point at 2.53% while t he level is improving from a year-over-year basis. In page 21, the unrealized balance came down due to the market fluctuation and also the realization of the capital gains. While the equity-to-asset ratio as of June was 9.9%, and it further increased to above 10% in July. The RBC is also well above at over 400% in June. In page 23, let's move on to Taipei Fubon Bank. The total revenue was up by 11.3%, supported by the NIM fees while t he overall loan growth, deposit growth both grow at above the market average growth momentum, and also t he NIM shows improvement year-over-year. In page 24, the credit balance, overall speaking, was up by over 8%, t hat is mainly driven by the retail loans of 12.3%.
The corporate lending also up by about 5%- 6%. In page 25, the foreign currencies in the corporate lending book grow over 9%, 9.7%. That's mainly driven by the large domestic corporate and also the overseas syndication. While in the NT market, among corporate loans, the SME segment remains the spotlight, t hat increased over 12.7%. In page 26, the retail book, the mortgage was up by over 10%, mainly driven by the home equity, which accounts for 37.5% of the total mortgage book. Another spotlight is the other currencies, specifically in the unsecured consumer loans that grow by over 40%. In page 27, from the deposit perspective, the overall deposit outstanding was up by 7.2% while t he foreign currency deposit is the key driver, specifically from the foreign currency demand deposit, and the contribution now reached over 35%, as we can see from the lower left-hand side chart.
In page 28, the margin. T he net interest margin up by 4 bps in the first half, and loan-to-deposit spread also up by 10 bps. The quarter-over-quarter performance both shows 5 bps increase in NIM and loan-to-deposit. The improvement mainly reflects a higher foreign currency demand deposit contribution. In page 29, the asset quality of Taipei Fubon Bank shows a very benign trend, as we can see the NPL ratio, coverage ratio, and NPLs across the product lines. In page 30, the credit cards' active numbers reached $5.76 million. While the card spending shows a slight decline, mainly because of the deferred payment of the personal income tax by one month in this year. T he asset quality's NPL ratio for the credit card remains benign. In page 31, the fee income was up by 14%, t hat's with a double-digit growth across the major business lines.
Specifically, the wealth management increased by 12.6%, th at's driven by the insurance and also the mutual funds sales. The credit cards' fee up by 14.2%, that comes from a higher overseas card spending and also adjustments in card benefits. In page 32, the contribution from overseas branches, net revenue slightly up. We see NIM fees actually up by 7%, but it's offset by the decline of the trading and derivative-related income. The net profit is slightly down by 2.3%, that's mainly from a specific provision. In page 34, we move on to Fubon Securities. The net profit is down by 18.5% year-over-year in its first half, mainly due to the TAIEX trading volume down by 17%. While its net profit ranked top two, as the trading and also the other revenue stayed stable, that offset the decline in the brokerage revenue.
The market share of the major business lines remains at top three. Next, let's move on to page 36 for Fubon Insurance. The direct written premium was up by 9.4%, with the market share as a top of 24.4%. The net combined ratio continued to improve, and it was down to 82.1%, mainly driven by a better net claim ratio, as we see the commercial fire claim ratios improvement trend. In page 38, we move on to Fubon Bank Hong Kong. The loan balance was up by 11%, t hat's supported by the lending with the bank's peers. While the deposit balance was further up by 19%, mainly driven by the retail deposit. The profit improvement supported by the growth of the balance sheet and also a lower provision. While the net interest margin was down by 7 bps, mainly on the back of a lower market interest rate.
In page 39, Fubon Bank China shows the loan balance was strongly growth at 26.4%. That's mainly driven by the retail loans. The deposit was up by over 3%. That's focused on the currency mix adjustment by growing the RMB and reducing the USD deposit. On the back of the adjustment in the loan and deposit structure, the net interest margin was up by over 120 basis points in the first half this year. Net profit also supported by the bond capital gains. While the asset qualities of the bank remain stable. This is the end of the presentation. If you would like to ask questions, please access Fubon's website in the investor relations under the Q2 2025 IMs meetings web page. You may type in the questions, and the management team will respond in the live meeting session. Alternatively, please feel free to contact us at ir@fubon.com. Thank you.