Tue, May 08, 2018 - Page 12 News List

Taishin defends earnings, board amid skepticism

‘QUESTIONABLE’:Pau Jar criticized Taishin’s profits and some hiring practices to explain why it plans to gain greater representation on the company’s board

By Crystal Hsu  /  Staff reporter

Taishin Financial Holding Co (台新金控) yesterday defended its earnings ability and corporate governance after institutional investors linked to a local developer raised questions and declared their intention to win board representation next month.

“Taishin Financial’s board appears generally well-organized and able to provide effective strategic oversight for the company’s management,” Taishin Financial president Welch Lin (林維俊) cited MSCI Inc as telling an investors’ conference in Taipei.

As MSCI’s report also found that Taishin Financial’s board is lacking in female representation, Lin said the group has nominated a woman candidate for the board election scheduled to be held on June 8.

Lin made the statements to fend off challenges from Pau Jar Group (寶佳機構) representatives that Taishin Financial lags behind peers Cathay Financial Holding Co (國泰金控), Fubon Financial Holding Co (富邦金控) and E.Sun Financial Holding Co (玉山金控) in profitability.

The New Taipei City-based developer, which owns a considerable stake in Taishin Financial through a share purchase on the open market, also raised criticism over the conglomerate’s hiring of what it called “questionable” executives in its auditing, investment and human resources departments.

Pau Jar has made clear its intentions to win seats in the Taishin Financial boardroom to better protect its interests. Taishin Financial has proposed reducing its board seats to raise representation thresholds.

The bank-focused conglomerate posted NT$3.8 billion (US$127.7 million) in net income in the first quarter, an improvement of 14.4 percent from the same period last year, the company’s financial statement showed.

That translated into an earnings per share of NT$0.34.

Lin attributed the improvement to better interest, fee and investment incomes.

Taishin Financial is to pursue better profitability for the rest of the year, regardless of whether all shareholders are pleased with its performance, Lin said.

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