The nation’s 37 domestic banks saw another single-month loss of NT$153.2 billion (US$4.55 billion) in outstanding loans, which totaled NT$18.5 trillion at the end of December, the Financial Supervisory Commission’s latest data showed yesterday.
“The global slowdown appears to have taken a toll on the sector’s loan growth,” said Lin Tung-liang (林棟樑), deputy director of the commission’s banking bureau.
The banks’ offshore banking units saw a drop of NT$38 billion in outstanding loans and their overseas branches saw a NT$24.3 billion drop in December, while local outlets saw the biggest drop, at NT$90.7 billion, Lin said.
Several other factors, such as an increase in loan provision, may also have contributed to the decline, he said.
The local banking sector averaged a non-performing loan (NPL) ratio of 1.54 percent at the same time, down from 1.6 percent the previous month, the commission’s statistics showed.
“Overall, asset quality and finances in the banking sector remained healthy,” Lin said.
Bad loans totaled NT$285.2 billion in December, a drop of NT$13 billion from November, the commission’s statement said.
The statement said that 36 of the 37 banks saw their NPL ratios drop to below 5 percent, with 28 showing ratios of lower than 2.5 percent.
Chinfon Commercial Bank (慶豐銀行), which is under government custody, continued to report the highest NPL ratio of 33.14 percent in December.
The banking sector reported a total of NT$44.4 billion in pre-tax profits in December after 17 of the 37 banks posted losses including Chinfon’s loss of NT$12 billion, followed by Cosmos Bank’s (萬泰銀行) NT$12.8 billion loss for the same period.
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