In light of these ambitions, BNP Paribas recommended that investors begin rebalancing their exposure in the financial sector from consumer-centric private players to the state bank segment.
The securities house meanwhile upgraded First Financial Holding Co (第一金控) to "outperform" with a share price target of NT$31.20, saying that First Financial is the most desirable potential state bank acquisition because of its significant loan market share of 5.4 percent and its widespread network of 179 branches. Even more importantly, it has solid asset quality, with a non-performing loan ratio of 2.2 percent to date.
Other picks include Fubon Financial Holding Co (富邦金控), E.Sun Financial Holding Co (玉山金控) and Mega Financial Holding Co (兆豐金控), according to BNP Paribas.
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