Taishin International Bank (台新銀行) said last night it would set aside NT$1.6 billion (US$49 million) to compensate investors for their losses in Lehman Brothers-related structured notes.
Taishin will become the second domestic bank to set aside funds to compensate investors for financial products linked to the failed Lehman Brothers. It had sold NT$10 billion in structured notes.
On Aug. 4, Chinatrust Commercial Bank (中國信託銀行) said it would allocate NT$4.1 billion in provisions for the settlement of the structured notes.
Taishin Bank, a banking unit of Taishin Financial Holding Co (台新金控), said in a stock exchange filing that its board approved the compensation earlier in the day. It added that it hoped to strengthen its relationship with customers.
The NT$1.6 billion in compensation funds was lower than analysts’ projections of a sum between NT$2.5 billion and NT$3 billion, as reported by the Chinese-language Economic Daily News yesterday.
Taishin Financial may have to cut its first-half profit results because of the provisioning, the report said.
Chinatrust Financial Holding Co (中信金控), the parent of Chinatrust Bank, cut its unaudited profits to NT$353 million — down 93 percent from its announcement of NT$5.23 billion last month — because of the compensation outlay, it said.
Taishin Financial reported preliminary net profits of NT$1.82 billion, or NT$0.19 per share, for the first half of the year, it said in a press statement on July 9.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
BAD RAP: The exchange said Tatung had seriously breached shareholders’ rights and failed to give a satisfactory explanation of its board election dispute Tatung Co (大同) shares yesterday plunged by the maximum daily limit of 10 percent to NT$18.90, the lowest in three months, after the Taiwan Stock Exchange (TWSE) on Tuesday evening changed the company’s classification to a full-delivery stock effective tomorrow. The TWSE’s move follows the company’s failure to give a clear and satisfactory explanation of why it deprived dozens of shareholders of their voting rights during a board election at the annual shareholders’ meeting on Tuesday morning. Under the exchange’s regulations, investors are not allowed to engage in margin trading of a full-delivery stock, TWSE spokeswoman Rebecca Chen (陳麗卿) told
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate