CTBC Financial Holding Co (中信金控) posted a record income of NT$16.86 billion (US$562.43 million) last month on the back of bargain purchase gains from its acquisition of a Japanese lender, allowing it to outperform local peers.
The company booked a bargain purchase gain of NT$14.81 billion last month after integrating Tokyo Star Bank, which it bought for ￥53 billion (US$520.2 million) in the first takeover of a Japanese commercial lender by a foreign bank.
CTBC arrived at the value by deducting the purchase expense from Tokyo Star’s net worth, the company said.
The purchase gain increased CTBC’s cumulative profit to NT$28.48 billion for the first half of the year, translating into NT$1.94 earnings per share (EPS), according to company statistics.
The acquisition also increased CTBC’s overall assets to NT$3.5 trillion from NT$2.7 trillion, and raised its banking branches overseas to 100, surpassing all of its domestic peers, the bank-focused group said.
Fubon Financial Holding Co (富邦金控) yesterday posted NT$6.11 billion in net income for last month, with accumulated profits climbing to NT$27.3 billion for the first six months, or EPS of NT$2.67, according its stock exchange filing.
The results enabled Fubon Financial to retain the most profitable title among peers, although it still lags behind CTBC in absolute earnings.
Without the bargain purchase benefits, CTBC would have recorded NT$2.35 billion in net income last month, an increase of 26.4 percent from May, but a slowdown of 3.3 percent from a year earlier, company data showed.
As of last month, its interest income grew 22 percent year-on-year to NT$2.99 billion, while its fee income rose 16 percent to NT$2.23 billion, attributable mainly to a robust growth in wealth management business, CTBC said.
CTBC Bank (中信銀行), the group’s main subsidiary and Taiwan’s largest credit card issuer, reported NT$37.4 billion in credit card spending last month, the highest monthly figure ever in the local market, CTBC Financial said.
However, the lender has yet to emerge from disruptions caused by yuan-linked target redemption forwards, given the 40 percent decline in investment income during the January-to-June period from a year earlier, CTBC Financial said.
CTBC Bank is the largest TRF vendor, accounting for 12 percent of market share, the lender said earlier.
Shares in CTBC Financial closed up 1.01 percent to NT$20.05 yesterday, stronger than the TAIEX’s 0.11 percent rise, Taiwan Stock Exchange data showed.