Institutions are the two major liabilities on the balance sheet, he said.
Interest expenses created by these two items are influenced by domestic
interest rates. For example, if the central bank adjusts the interest rate
upwards by 25 basis points to fight inflation, interest expense will
increase by NT$18.2 billion, he added.
“Since the size of revenue and the amount of interest expense are both
highly uncertain, profits are hard to predict,” Perng said.
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