Wed, Aug 08, 2007 - Page 12 News List

Taishin Financial expects to post first profit in three years

TURNAROUND The firm said it expects a net profit of nearly NT$9 billion this year as it has no plans to book a large one-time provision as it did before

BLOOMBERG

Taishin Financial Holding Co (台新金控), the parent firm of Taishin International Bank (台新銀行), the nation's third-largest credit-card issuer, expects to post its first profit in three years as loan provisions fall.

Net income this year will probably be less than NT$9 billion (US$274 million), the company's chief financial officer Carol Lai (賴昭吟) said on the sidelines of a briefing yesterday as Taishin released second-quarter earnings. The company posted a loss of NT$16.2 billion last year and NT$2.9 billion the year before.

"We are trying to strike a balance between asset quality and earnings," Lai said. "For this year, we do not plan a big one-time provision as we did in the past two years."

Taishin Financial had unaudited profit of NT$2.11 billion in the second quarter, almost triple the net income of NT$733.2 million a year earlier, it said.

Lai expects loan provisions of between NT$7 billion and NT$8 billion in the second half. The company's loan provisions were NT$6.8 billion in the first half and a whopping NT$37 billion in the whole of last year.

Most banks are still recovering from a surge in loan defaults that eroded earnings last year and in 2005. Banks wrote off NT$33.6 billion in credit-card debt in the first half of this year, or about half of the amount in the same period last year, the Financial Supervisory Commission said.

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