Tue, Jan 04, 2005 - Page 11 News List

Fubon forecasts its net income to rise by 20 percent

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Fubon Financial Holding Co (富邦金控), Taiwan's third-largest financial-services company, forecast net income at its banking arm may rise 20 percent this year after the takeover of rival TaipeiBank (台北銀行) formally took effect two days ago.

Fubon Financial also said it hired David Chang (張果軍), ex-Taiwan chief of Goldman Sachs Group Inc, and Daniel Chen (陳文郎), chief economist of SinoPac Financial Holding Co (建華金控).

"The boost in profitability is mainly helped by cost savings from the combination of operations," Daniel Tsai (蔡明忠), Fubon chairman, told a press briefing yesterday in Taipei.

"The merger enhanced our competitiveness significantly because it helped create Tai-wan's second-biggest privately-owned bank," he said.

Operating costs at the renamed Taipei Fubon Commercial Bank Co (台北富邦銀行) are expected to be reduced by NT$2 billion (US$63 million) a year because of the merger, Tsai said.

Fubon Financial agreed to pay NT$80.3 billion in new shares to take over TaipeiBank in August 2002.

Financial Supervisory Commission chairman Kong Jaw-sheng (龔照勝) said at the same briefing that his regulator body wants Fubon Financial, Cathay Financial Holding Co (國泰金控) and Hua Nan Financial Holdings Co (華南金控) to take an active role in the process by combining with smaller rivals.

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