Thu, Jan 06, 2005 - Page 10 News List

Fuhwa Bank to buy credit cooperative

By Joyce Huang  /  STAFF REPORTER

Fuhwa Bank (復華銀行) -- a banking unit under the Fuhwa Finan-cial Holdings Co (復華金控) -- yesterday announced its decision to acquire Tainan Seventh Credit Cooperative (台南七信).

Fuhwa will pay NT$289 million to buy the credit cooperative, which has NT$6.9 billion in savings accounts and NT$3.9 billion in loans, as of October, the bank said in a statement.

Following the deal, Fuhwa claimed that its number of branches is expected to increase from 50 to 58 in total.

The bank had previously acquired a Yulin credit cooperative in July 2003 and a Taitung credit unit last June, which boosted the bank's number of branches from 37 to the current 50.

"Within two years, [Fuhwa] has expanded 21 branches through acquisitions, which is a low-cost and high-efficiency method," the bank's statement said.

After the three acquisition deals, Fuhwa has turned a profit while boosting its earning per share (EPS) from a negative NT$2.21 two years ago to NT$1.38 last year.

After acquiring Tainan Seventh Credit, Fuhwa hopes to strengthen its services in southern Taiwan although it also plans to relocate several of the credit unit's branches to Taipei, pending a decision from the parent holding company.

Fuhwa reported a 4.5 percent non-performing loan ratio at the end of September last year.

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