Yuanta Financial Holding Co (元大金控), owner of the nation’s largest securities brokerage, saw its net income fall 81.92 percent year-on-year to NT$220 million (US$7.29 million) last month, as investors cut trading of risky assets amid economic uncertainty.
Yuanta Securities Corp (元大證券) posted NT$166 million in net profit last month, compared with NT$948 million a year earlier and NT$252 million in October, which Yuanta Financial spokesman Chuang Yu-de (莊有德) attributed mainly to shrinking stock turnover as the European debt crisis sidelined investors.
Its banking unit, Yuanta Bank (元大銀行), set aside NT$197 million in provisions last month to raise its loan-loss reserve ratio to 1.34 percent, higher than the 1 percent minimum set by by the Financial Supervisory Commission.
The new provisions requirements will take effect in January.
“We think it is better to increase provision for loans to domestic makers of flat panels and computer memory chips,” Chuang said. “The gloomy economic outlook warrants a conservative approach.”
For the first 11 months of the year, Yuanta Financial saw net income total NT$13.59 billion, or NT$1.5 earnings per share.
Meanwhile, stricter provision requirements drove E. Sun Financial Holding Co (玉山金控) to a net loss of NT$1.4 billion last month, reversing a profit of NT$3.4 million a year ago and NT$3.36 million in October, according to an exchange filing yesterday.
E. Sun Commercial Bank (玉山銀行), the group’s main subsidiary, reported a net loss of NT$1.52 billion after setting aside NT$2.34 billion in provisions last month.