State-run Mega International Commercial Bank (兆豐銀行) aims to accentuate its consumer banking side and reduce its dependence on corporate banking as a primary source of income, Mega Financial president Shiu Kuang-si (徐光曦) said yesterday.
The bank is the main subsidiary of Mega Financial Holding Co (兆豐金控).
The holding company posted NT$16.13 billion (US$538.2 million) in net profit for the first six months of the year, an increase of 35.42 percent from the same period last year, on the back of improving interest and fee incomes, Shiu said.
The figures translated into earnings per share (EPS) of NT$1.3 as of last month, better than an EPS of NT$1.04 a year earlier and making it the most profitable state-run financial service provider, according to the company’s Web site.
The bank generated NT$13.86 billion of the net profit, or 85.89 percent, which suggests that the group’s other subsidiaries have ample room to catch up in earnings ability and shows that there is an urgent need for risk diversifications, he said.
Offshore banking units contributed 43.5 percent during the January-to-May period at Mega Bank, much higher than the 28.7 percent average for the sector, due to the its focus on cross-border financing, the Financial Supervisory Commission said.
Commission Chairman William Tseng (曾銘宗), who has encouraged Taiwanese lenders to grow into regional players, recently said ideal candidates should have overseas earnings standing at 30 percent.
Tseng has frequently cited Mega Financial as a promising candidate because of its relatively deep international exposure.
Shiu declined to comment on the issue except to say the bank needs to better balance its fee and interest incomes.
Mega Bank aims to issue 250,000 more credit cards this year and raise the total number of cards in circulation from 550,000 to 670,000, Mega vice president Kao Shu-luan (高淑鑾) said.
The move is intended to deepen customer loyalty as well as help the bank’s wealth management business, Kao said.
Dutch brewing company Heineken NV yesterday said that it has reached an agreement to acquire a subsidiary brewery of Taiwan’s Sanyo Whisbih Group (三洋維士比集團). Heineken is to assume majority ownership and management rights of the Long Chuan Zuan Co (龍泉鑽興業) brewery in Pingtung County’s Neipu Township (內埔), the Dutch company said. It would become the first multinational brewing company to operate brewery in Taiwan once the acquisition is completed. The deal has been approved by the Ministry of Economic Affairs’ Investment Commission, but details of the financial transaction cannot be disclosed at this time, as terms of the settlement have not been completed,
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