NPL ratio down to record low
The domestic banking sector’s non-performing loan (NPL) ratio declined to a historical low of 0.96 percent last month, down by 0.06 percentage points month-on-month, the Financial Supervisory Commission data’s showed yesterday.
Bad loans by the nation’s 37 banks totaled NT$183.8 billion (US$5.7 billion) at the end of last month — a decrease of NT$6.7 billion from a month earlier.
The sector granted nearly NT$20 trillion in loans last month, up NT$387.9 billion month-on-month, NT$240 billion of which went to individual lenders, the data showed.
Thirty-six of the 37 banks had an NPL ratio of less than 2.5 percent, excluding Cosmos Bank Taiwan (萬泰銀行).
TSMC not operating SMIC
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reiterated that it would not be involved in the operation of Chinese chipmaker Semiconductor Manufacturing International Corp (SMIC, 中芯) after the government gave the go-ahead to obtain an 8 percent stake of SMIC for free.
TSMC chairman Morris Chang (張忠謀) yesterday told reporters that the world’s biggest contract chipmaker would not rule out the possibility of selling the SMIC shares in the future.
Chang made the comments after the Ministry of Economic Affairs approved the deal on Monday.
The Shanghai-based SMIC offered the shares to settle a lawsuit with TSMC last year.
TISC outlook rating downgraded
Fitch Ratings yesterday revised downward its outlook rating on Taiwan International Securities Corp (TISC, 金鼎證券) to “evolving” from “stable,” the rating agency said in a press statement.
The outlook revision reflects the company’s ownership disputes, as well as the likely prolonged legal process in resolving these disputes, it added. Despite China Development Financial Holding Corp’s (開發金) dominant ownership in TISC, it does not have management control due to resistance from TISC’s original founding shareholders, the Chang family, Fitch Rating said, noting that China Development is substantially stronger than TISC in terms of financial strength and size.
China Airlines expects profit
China Airlines Ltd (華航), the nation’s biggest carrier, expects to report a profit this year as the global economic recovery boosts demand for cargo shipments, Roger Han (韓梁中), company senior vice president of finance, said by telephone yesterday. The carrier is upbeat about its performance in the second half, he said.
Separately, Advanced Semiconductor Engineering Inc (日月光) said the board of its subsidiary ASE Test Inc (台灣福雷電子) approved plans to invest US$100 million to set up a company in China through an offshore company, according to a stock exchange filing.
NT dollar plunges
The New Taiwan dollar dropped the most in three weeks as overseas investors pulled funds from local shares for a fifth day and the central bank was suspected of selling the currency in late trading.
The currency fell as the monetary authority intervened to counter gains that may erode the competitiveness of local exporters, according to a trader familiar with the central bank’s operations who declined to be identified.
“The central bank doesn’t want the NT dollar to appreciate too much,” said Henry Lin, a foreign-exchange trader at Taiwan Shin Kong Commercial Bank (新光銀行). “Most of the money is parked in government bonds to arbitrage the price of the NT dollar.”
The NT dollar weakened 0.3 percent to close at NT$32.279 against its US counterpart, the biggest decline since June 7 on turnover of US$872 million.
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