EnTie Commercial Bank (安泰銀行) saw its net profit surge more than 13-fold year-on-year to NT$1.21 billion (US$41.69 million), or earnings of NT$0.72 per share, in the first half of this year on the back of rising interest, fee and investment income, the lender’s report released yesterday showed.
By quarters, net income rose more than three times in the second quarter to NT$972 million from three months earlier, the report said.
EnTie Bank CEO Jesse Ding (丁予康) expects growth momentum to continue in the second half, when the lender plans to sell a building in downtown Taipei and two other real-estate properties.
“The bank gained important headway in earnings ability, asset quality and operating efficiency,” Ding said in a statement.
For the first time in the bank’s history, EnTie on Monday distributed employee bonuses, allowing staff to share in its profits, Ding said.
The medium-sized lender made NT$511 million from investment and trading in the financial markets during the first six months, jumping 16.62 times from the same period last year, bucking the trend for most of its peers, the report said.
Net interest income increased 11 percent year-on-year to NT$1.84 billion in the first half, from NT$1.65 billion, thanks to a widening net interest margin that stood at 1.21 percent as of June 30, from 1.11 percent in the previous quarter, the report said.
“While the central bank’s interest rate hikes helped, the bank’s strategy for financial market operations also helped,” Ding said.
Net fee income totaled NT$970 million for the first six months, jumping 16 percent from last year at NT$837 million, the report said, citing improving services as the main reason for growth.
Mortgage lending accounted for 37 percent of total loans, which reached NT$201.6 billion, while land and construction financing made up another 19 percent, the report said.
The ratios were higher than those of its peers, which have tightened mortgage and construction lending in line with the government’s effort to cool real-estate fever.
EnTie had a bad loan ratio of 0.25 percent as of June 30, lower than the peer average of 0.48 percent, while its coverage ratio reached 210 percent.
The lender has NT$300 million in a syndicated loan to troubled memory chipmaker ProMOS Technologies Inc (茂德科技) and has set aside 50 percent provision, the report said, adding it may raise the ratio to 100 percent if necessary.