Cathay Financial Holding Corp (
The Taipei-based financial conglomerate said that all of its divisions, especially its insurance and banking units, have almost hit their full-year forecast.
"We have met 99.5 percent of our profit target for this year," Cathay Financial's spokesman Lee Chang-ken (
After-tax earnings for the first nine months of the year amounted to NT$20.9 billion, or NT$2.78 in earning per share (EPS), he said.
Cathay Life Insurance Co (國泰人壽), the nation's largest life insurer, performed the best among other subsidiaries, making NT$13.4 billion in after-tax earnings -- or 101.4 percent of its profit target for this year -- which accounted for 61.4 percent of the parent company's total earnings.
United World Chinese Commercial Bank (
The integration of United World into the Cathay group is estimated to help contribute about NT$6.2 billion, or 29.5 percent, of the parent company's total earnings for this year.
Cathay United Bank's contribution to the total was around 6.8 percent, Lee said.
Despite of the rosier-than-expected profit performance, Cathay Financial is considering whether to revise upward its profit forecast for the year late next month or in early December, Lee said.
"We may use the fourth quar-ter's earnings to further write off the banking unit's combined bad loans, which stand at 5.3 percent including loans under observa-tion," he said.
Lee said that the company's insurance arm outperformed its banking unit as a result of the recovery in the nation's capital and property markets.
The legislature's decision in January to allow insurers to invest up to 35 percent of their assets overseas may also help Cathay Life's bottom line.
To expand consumer banking business, Joseph Jao (饒世湛), vice president of United World Chi-nese Commercial Bank, said that the financial institution plans to expand and strengthen its credit-card businesses as well as wealth management in order to reap profits.
The company will still keep its corporate banking businesses vibrant, which Lee said will lay the groundwork for its future expansion into Chinese markets.
Commenting on expansion plans, Lee said that Cathay Financial is interested in acquiring a securities arm to provide comprehensive financial services to its 9 million clients.
But the company is not so desperate as to over-pay for the merger target since a securities arm will not greatly enhance the parent company's cross-selling capabilities.
Cathay Financial's board met yesterday and approved setting up a special task force in preparation for the company's plan to branch into Vietnam and set up a liaison office in that country.
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,
Swancor Renewable Energy Co (上緯新能源) yesterday announced plans for a 4.4 gigawatt (GW) offshore wind project off Miaoli County as part of its commitment toward Taiwan’s energy transformation, the company said in a statement. The “Formosa 4” project includes three deep-water wind farms 18km to 20km off the coast, Swancor Renewable CEO Lucas Lin (林雍堯) said, adding that planning for the project began last year. A proposal for Formosa 4 was this week submitted to the Environmental Protection Agency (EPA), the company said. Swancor Renewable jointly developed the Formosa 1 project, a 128 megawatt (MW) wind farm about 4km off Miaoli and the