Chinatrust predicts gains in its corporate banking

Chinatrust Commercial Bank (中國信託商銀), the nation's biggest credit card issuer, said it expected to see a 20 percent growth in corporate banking this year from NT$9 billion (US$271.1 million) in pre-tax profits last year.

The bank will also gear up to make its Hong Kong branch the powerhouse of its corporate banking business this year, a company executive said yesterday.

Corporate banking contributes about 55 percent to 60 percent of Chinatrust Commercial's annual earnings, said James Chen (陳佳文), president of the bank's institutional banking group.

The figure stood at about 40 percent before the consumer credit abuse storm hit, Chen said.

Chinatrust Commercial set aside nearly NT$47 billion last year as provision for possible losses in its consumer banking sector.

Overseas business gives the bank its competitive edge, with Hong Kong as the biggest profit source through services to overseas Taiwanese companies, Chen said.

The Hong Kong branch's earnings are expected to continue to grow by 30 percent this year from US$40 million last year, he said.

To diversify its business and focus on corporate clients, the bank has inked a pack with Yahoo-Kimo Inc (雅虎奇摩), the nation's largest Internet portal, to provide cash management services for the company's online auction business.

Chen declined to provide more details about the deal, but said similar online payment services to online gaming firms will be an area for future focus.

The two companies will formally announce their collaboration next month, he said.