Cathay United expands outlet network

Cathay United Bank (國泰世華銀行), the banking unit of Cathay Financial Holding Co (國泰金控), officially incorporated Lucky Bank (第七商銀) yesterday, becoming the private bank with the largest branch network in the country, the bank said yesterday.

After the takeover of the Taichung-based lender, the number of Cathay United's outlets nationwide jumped to 140 from 108.

With 120 outlets, Taipei Fubon Bank (台北富邦銀行) has the second-largest number with 120 Cathay United said in a statement released yesterday.

Cathay United bought shares of Lucky Bank through the open market in 2005.

Cathay United will be allowed to move eight of its branches into Taipei City and County as well as Kaohsiung within the next three years to deepen its penetration in urban areas, it said.

The bank also has 10 overseas outlets in Hong Kong, Los Angeles, Shanghai and Vietnam, it said.

Cathay United controls assets of NT$1.27 trillion (US$38.96 billion) and manages deposit amounts of NT$996.5 billion with a lending balance of NT$755.2 billion, which helps strengthen its leading status among local banks, the statement read.

Its financial structure is healthy the bank said, with bad loan ratio as low as 1.77 percent and a coverage ratio of 127.51 percent, both higher than the average 2.5 percent and regulatory 40 percent.