Thu, Aug 20, 2009 - Page 12 News List

SinoPac writes off PEM buyback losses

By Joyce Huang  /  STAFF REPORTER

SinoPac Financial Holding Co (永豐金控) yesterday revised downward its earnings for June after its banking subsidiary, Bank SinoPac (永豐銀行), wrote off NT$759 million (US$23 million) in pre-tax losses from the buyback of its previous sales of Private Equity Management (PEM) Group products to local investors.

The bank’s board finalized the size of the writeoff at its last board meeting on June26, SinoPac said in a press statement yesterday.

After the writeoff, the financial service provider posted NT$51.7 billion in net losses, or NT$0.07 per share, for the first six months of this year, including a net loss of NT$131.2 billion for June, the statement said.

Bank SinoPac also reported NT$86.1 billion in net losses, or NT$0.19 per share, for the first six months of this year including a net loss of NT$113.6 billion in June, the statement added.

Before the writeoff, SinoPac celebrated that it had returned to profitability and reported NT$89 million in net profits for the first six months of this year.

In early June, SinoPac joined several other local financial institutions in buying back PEM Group products that they sold to investors after the founder of the US-based company, Danny Pang (彭日成), was accused by US federal regulators of defrauding investors out of hundreds of millions of dollars in a Ponzi scheme. The company is under investigation for fraud in the US and Pang’s assets had been frozen.

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