Sun, Jan 11, 2009 - Page 11 News List

Cathay Financial reports fourth-quarter investment loss


Cathay Financial Holding Co (國泰金控), Taiwan’s biggest financial services company, reported a fourth-quarter loss after writing down Iceland-related investments and the value of its stock investments slumped.

The Taipei-based company, which owns Taiwan’s largest life insurer, made a loss of NT$1.37 billion (US$41 million), compared with a loss of NT$2.23 billion a year earlier.

The figures were derived by subtracting nine-month results from unaudited full- year earnings released in a statement today.

Lee Chang-ken (李長庚), a spokesman at Cathay Financial, confirmed the fourth-quarter loss.

Cathay United Bank (國泰世華銀行), its banking unit, took a writedown of NT$2.1 billion because of losses from overseas investments, including collateralized debt obligations, Lee said.

Cathay Life Insurance Co (國泰人壽), another unit, had a loss after the value of its stock investment fell because of the financial crisis, Lee said, without providing details.

Global equities lost US$30 trillion in value last year as the collapse of the US housing market led to more than US$1 trillion of losses and writedowns at financial institutions worldwide.

Cathay Financial’s full-year net profit fell to NT$2.4 billion, or NT$0.25 per share, the statement to the Taiwan stock exchange said. The company is scheduled to release an audited report before March.

Meanwhile, Mega Financial Holding Co (兆豐金控), Taiwan’s third-largest financial company by market capitalization, said yesterday its full-year net income plunged.

The company said in a statement to the Taiwan Stock Exchange that its net income was NT$710.5 million, or NT$0.06 cents, based on unaudited figures.

This story has been viewed 1917 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top