Print

Mail

wiki links

Bad loan ratio fell for second month in a row, FSC says

The asset quality of the banking sector is showing signs of sustained improvement in the wake of the consumer credit abuse problem, with the bad loan ratio falling for the second month in succession, according to official data released yesterday.

The average non-performing loan ratio of 41 local banks decreased marginally to 2.32 percent last month, down 0.01 percentage points from May, the monthly data released by the Financial Supervisory Commission showed yesterday.

The coverage ratio increased from 54.50 percent to 55.14 percent over the same period, the data showed.

For the first half of this year, aggregate pre-tax profits of local lenders amounted to NT$32.22 billion (US$981 million), down from NT$35.84 billion a year ago.

Meanwhile, blacklisted Bowa Bank (寶華銀行) saw its asset quality deteriorate rapidly as its net worth slumped to minus NT$2.25 billion last month, compared with minus NT$579 million in May.

"The bank's profitability continued to weaken as a result of tight liquidity," commission spokesperson Susan Chang (張秀蓮) said.

"We will not ignore this problem bank," Chang said when asked about the possibility of a government takeover.

Embezzlement scandal-plagued Sunny Bank (陽信商銀) saw its deposit loss decrease to NT$1.5 billion yesterday from NT$3 billion a day earlier, Chang said.

The bad loan ratio of credit card lending edged up 0.01 percentage points to 2.36 percent last month, while that of cash card lending increased 0.68 percentage points to 7.52 percent.
This story has been viewed 919 times.