Mega International Commercial Bank (兆豐銀行), the banking arm of state-run Mega Financial Holding Co (兆豐金控), outperformed other state-run peers in terms of profitability last month, but low interest rates continued to weigh on the sector.
With a focus on international trade financing, Mega Bank benefited from an improving global economy and posted NT$1.97 billion (US$64.85 million) in net income last month, the lender said in a statement released last week.
That accounted for 83.16 percent of the conglomerate’s NT$2.37 billion earnings, it said.
The bank-focused group accumulated NT$22.17 billion of profit in the first nine months of the year, translating into earnings per share of NT$1.64, it said.
Average interest spread declined to 1.35 percent among domestic lenders in the second quarter of the year, the lowest in eight years, and is unlikely to have improved last quarter after the central bank left its monetary policy unchanged, analysts said.
Chang Hwa Commercial Bank (CHB, 彰化銀行), another state-run bank, posted pre-tax income of NT$1.58 billion last month, its statement said, as it strives to raise earnings contributions from overseas operations.
The bank has attached service charges to lending operations to boost fee income as excessive competition limits growth for interest income, officials said earlier.
Cumulative earnings totaled NT$9.36 billion, or earnings per share of NT$0.99 for the past three quarters, the statement said.
Separately, Hua Nan Commercial Bank (華南銀行), the main subsidiary of Hua Nan Financial Holding Co (華南金控), posted a net income of NT$962 million last month, it said without elaborating.
The group has yet to release its earnings figure.
State-run banks have ramped up efforts to increase syndicated lending to bolster financial proficiency.
While Taiwanese banks have all sought to tap the business opportunity linked to financial technology (Fintech), the earnings contribution remains modest, analysts said.
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