Tue, Oct 15, 2013 - Page 13 News List

Taiwan Asset Management Co passes revenue target after toxic asset disposal

By Crystal Hsu  /  Staff reporter

State-funded Taiwan Asset Management Co (TAMC, 台灣金聯資產管理) posted NT$1.2 billion (US$40.68 million) in net income for the first nine months of the year, already surpassing its yearly target of NT$1.1 billion, on the back of its successful disposal of toxic assets, senior executives said yesterday.

The figures are approaching last year’s income level of NT$1.32 billion, but earnings abilities are likely to slow for the rest of the year, given the dwindling pool of bad assets, TAMC chairman Hwang Ding-fang (黃定方) said.

The same reason will drive TAMC, in which the government controls an 81.46 percent stake, to help domestic banks digest non-performing loans, to set a similar budget target of NT$1.1 billion next year, Hwang said.

The average bad loan ratio for the nation’s 37 banks dropped to 0.44 percent at the end of August, down from 0.45 percent one month earlier, the Financial Supervisory Commission said earlier this month, as lenders were cautious about business amid hazy economic visibility.

To tap new sources of income, TAMC plans to lease 122 residential apartments, storefronts, office space and plots of land in different parts of Taiwan, allowing it modest additional profits.

The rental rates are set at between 20 percent and 30 percent below market rates as TAMC aims to support the government’s housing policy and ease the financial burden on its tenants — small enterprises and young people, Hwang said.

Interested parties may file applications with the company on a first-come, first-serve basis, starting on Wednesday and lasting through Nov. 15, Hwang said, adding that there are no qualification constraints on applicants.

Rental income totaled NT$200 million as of last month, accounting for 20 percent of profits, TAMC said.

The contribution may climb to NT$360 million next year, accounting for 25 percent, the company said.

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