Thu, Jun 23, 2011 - Page 11 News List

Cathay United Bank inks deal with Chinese lender

By Crystal Hsu  /  Staff Reporter

Cathay United Bank (國泰世華銀行) yesterday signed a memorandum of understanding with China’s Bank of Communications (BoCom, 交通銀行) to cooperate in syndicated loans, bancassurance, account receivable trading and capital flows, the Taiwanese lender said in a statement.

The agreement was another step into China for the banking arm of Cathay Financial Holdings Co (國泰金控), the nation’s largest listed financial conglomerate by assets, the statement said.

Just last week Cathay United inked a deal with the Agricultural Bank of China (中國農業銀行).

BoCom, founded in 1908 in Shanghai, is one of the top five leading commercial banks in China and has an extensive network of more than 2,800 branches covering more than 80 major cities. With assets totaling 4 trillion yuan (US$618.8 billion), it reported 39 billion yuan in net profits last year, the statement said.

Cathay United plans to sign a cooperation agreement with the Bank of China (中國銀行) soon, the statement said, as part of its drive to serve Taiwanese firms based in China. Unlike domestic competitors that have focused on second-tier Chinese cities, the lender has set up a branch in Shanghai.

Shares of Cathay Financial rose 0.23 percent to NT$43.85 yesterday. The stock has dropped 15.18 percent since the beginning of the year, underperforming the TAIEX’s 3.92 percent fall.

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