DBS Bank (星展銀行) yesterday reported double-digit percentage growth in pretax profits for last year, despite intense competition.
The bank said that it would seek stable profit growth this year by boosting its corporate lending, credit card issuance and wealth management services.
Pretax profit totaled NT$1.59 billion (US$51.55 million), up 15 percent from a year earlier, which is a good performance in a saturated market like Taiwan, DBS Bank general manager Lim Him-chuan (林鑫川) told a news conference in Taipei.
“We have seen our business increase following the acquisition of Australia and New Zealand Banking Group Ltd’s [ANZ] retail wealth management business in 2017, proving that the acquisition was successful,” Lim said.
“It was not easy, as many mergers and acquisitions ended in failure,” he said.
As ANZ had been losing clients before the acquisition, DBS Bank personnel last year began visiting the lost clients to collect their feedback and try to bring them back, head of consumer banking Seraph Sun (孫可基) said, adding that 600 employees from ANZ also helped boost the business.
Revenue in the consumer banking segment rose 84 percent and net profit jumped 147 percent from a year earlier, which proved that the acquisition had a positive effect, Sun said.
In addition to the 500,000 clients from ANZ, the number of new clients per month rose from 3,000 to 10,000 last month, Sun said, adding that 80 percent of them have active credit cards, higher than the industry average of 50 to 60 percent.
The bank last year launched three new credit cards and the number of its credit cards in circulation surpassed 550,000 last year, Sun said, adding that the credit card segment broke even last month.
The lender plans to issue a new credit card for top clients in the first half of this year, Sun added.
DBS Bank’s small and medium-sized enterprise (SME) lending last year rose 14.6 percent to NT$33.82 billion from NT$30.34 billion in the previous year, making it No. 1 among foreign banks in terms of SME lending, head of institutional banking group Tony Luo (羅綸有) said.
The corporate banking segment reported a 20 percent annual growth in deposits and revenue, as it extended loans to companies conducting mergers and acquisitions, and those in Apple Inc’s supply chain, Luo said.
DBS Bank, which participated in financing for Formosa I, the nation’s first offshore wind farm project, aims to fund Copenhagen Infrastructure Partners’ and Wpd Taiwan Energy Co Ltd’s (達德能源) wind farm projects this year, he said, adding that the exact number would be unveiled after the deals close and that the total amount might reach NT$100 billion.
“We support green energy, but we will not compromise risk management and legal compliance,” Luo said.
Asked whether the Ministry of Economic Affairs’ decision to reduce the feed-in tariff 5.71 percent would affect wind farm development, Luo said that developers are expected to remain willing to continue with the projects, as Taiwan has very good wind resources.
Although the nation’s economic growth is forecast to slow from 2.63 percent last year to 1.9 percent this year due to headwinds, DBS Bank is confident that its profit will continue to grow and outperform the nation’s GDP growth, Luo 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
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
Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, has formed a strategic alliance with Hon Hai Precision Industry Co (鴻海精密) to develop key electronic components for electric vehicles and digital healthcare, it said yesterday. The alliance is to help Yageo boost its revenue from high-end components for vehicles and industrial, medical and aerospace devices, as well as those used in 5G and Internet-of-Things devices, the company said. The companies signed the strategic alliance agreement at Yageo’s headquarters in New Taipei City’s Sindian District (新店). Their cooperation is to start this quarter, the companies said in a joint statement. “Through the cooperation
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,