However, this deal will do more good than harm to Taishin Financial, considering Chang Hwa's asset value and profits, said Mike Chow (
Most of Chang Hwa's branches are self-owned and the asset value has a potential to skyrocket after the rebound in the nation's real-estate market picks up, he said.
"Taiwan's property market is undervalued. Its bounceback still lags far behind other Asian nations," Chow said.
Another key factor is that financial service providers' profits will tail the interest-rate trend, he said.
"The government has not dared to announce too many interest-rate hikes, as Taiwan's economy is still on the rise. However, as major nations are raising their interest rates, Taiwan will have to follow suit in the long term, benefiting the banking sector's financial books," Chow said.
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