State-run Hua Nan Financial Holding Co (華南金控) this year aims to diversify its income sources and boost earnings contributions from non-banking units, chairman Wu Tang-chieh (吳當傑) said yesterday.
Wu unveiled the goals after the conglomerate reported that net income last year rose 21 percent annually to NT$14.59 billion (US$473 million), thanks to improving corporate banking and financial trading operations.
Last year, bank-focused financial institutions fared better than life insurance-focused peers, which took a hit in the second half from heavy hedging costs amid volatility in the foreign-exchange market.
“It is time for Hua Nan Financial to take action to diversify its sources of income, as it has depended heavily on interest income,” Wu told a media briefing.
Interest income accounted for 53.65 percent of overall profits at main subsidiary Hua Nan Commercial Bank (華南銀行), much higher than the sector’s 38.5 percent average, a report by the Legislative Yuan showed.
The bank is to expand its wealth management operations, product lines and sales channels to boost fee and trade incomes, Wu said, adding that exchange-traded funds are popular product options among investment tools.
Employees can seek to enhance cross-selling benefits by taking advantage of branches at home and abroad, he said.
The group would hire more financial professionals to improve personnel quality toward the end of the year, Wu said.
Hua Nan Financial is also seeking to grow multiple profit drivers and raise earnings contributions from securities, insurance and other subsidiaries, Wu said.
The securities arm has expressed its intention to pursue the goal and the insurance division is likely to follow suit soon, he said.
The banking unit generates more than 90 percent of profits at the company.
Hua Nan Financial would deepen financial technology operations, as technology is reshaping the banking industry, Wu said.
The company would closely track big data trends and tap further into mobile payments and other digital banking businesses, he added.
Hua Nan Bank is looking to grow its consumer banking business by 3 percent and mortgage operations by 2 percent from about NT$500 billion at the end of last year, a company official said, adding that wealth management and evolving credits segments are expected to grow by 1 percent.
The lender last month introduced three new credit cards targeting high net worth clients, the official said.
The bank has 1.07 million credit cards in circulation, with the ratio of effective cards standing at 76.5 percent, they said.
Net interest margin held at 1.43 percent last year and might stay flat this year, the official said.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be