State-run Hua Nan Financial Holding Co (華南金控) is seeking to deepen its presence in China and to venture into emerging ASEAN markets such as Cambodia and Myanmar to grow its profit and customers, the company said yesterday.
“We will send people to Cambodia and Myanmar to study market access, as more and more Taiwanese firms have migrated there,” Hua Nan Financial president Ed Liu (劉茂賢) said in a Web cast yesterday.
The announcement follows a call by the Financial Supervisory Commission for local lenders to expand into Southeast Asia given the region’s fast-growing economies and thin profitability at home due to intense competition.
Cathay United Bank (國泰世華銀行) and E.Sun Commercial Bank (玉山銀行), the banking subsidiaries of Cathay Financial Holding Co (國泰金控) and E.Sun Financial Holding Co (玉山金控) respectively, have made their presence in Cambodia to take advantage of the greater integration of the 10-member market in 2015.
Hua Nan Commercial Bank (華南銀行), the banking subsidiary of Hua Nan Financial and main source of its income, will also open a sub-branch in Shenzhen, China, by the end of the year, so the lender can better serve Taiwanese firms in the Pearl River Delta region, especially in yuan-related operations, Liu said.
Hua Nan Bank has applied with Chinese regulators to establish a second branch in Shanghai and will not miss any business opportunities presented by the free-trade zone once authorities promulgate details, Liu said.
The group’s securities arm, Hua Nan Securities Co (華南永昌證券), is continuing efforts to team up with a Chinese company to set up a securities house in Shenzhen where the Taiwanese brokerage may own a 51 percent majority stake, Hua Nan Financial said.
South China Insurance Co (華南產險), the non-life insurance arm of Hua Nan Financial, plans to join forces with China’s MITGroup (麥特集團) in tapping the auto insurance market across the Taiwan Strait, Hua Nan Financial said.
The holding company posted NT$859 million (US$28.98 million) in net income last month, rising 14.69 percent from one month earlier, according to figures posted on the company’s Web site.
Cumulative profit in the first 10 months of the year totaled NT$7.93 billion, translating into earnings per share of NT$0.93, company data showed.
Hua Nan Financial shares closed up 0.9 percent at NT$16.85 yesterday, outperforming the TAIEX, which rose 0.21 percent, Taiwan Stock Exchange data showed.