Wed, Feb 20, 2019 - Page 11 News List

Record net profits reported by banks’ overseas units

By Kao Shih-ching  /  Staff reporter

Overseas branches and subsidiaries of Taiwanese banks reported NT$61.89 billion (US$2.01 billion) in combined net profit for the whole of last year, a record high, although branches in ASEAN nations saw their combined net income decline for a second consecutive year, the Financial Supervisory Commission said yesterday.

The total represented a 10.74 percent increase from NT$55.89 billion in 2017, commission data showed.

Offshore branches earned NT$37.8 billion in net income last year, up 9.4 percent year-on-year, while foreign subsidiaries booked NT$24.09 billion in net profit, an annual increase of 12.89 percent, the data showed.

Hong Kong remained the most profitable market for overseas units, with the profits jumping 33.3 percent from NT$25 billion in 2017 to NT$33.32 billion, accounting for 53.83 percent of total profit.

The US was second, with NT$7.92 billion, followed by China (NT$6.04 billion), Japan (NT$5.18 billion) and Vietnam (NT$2.28), the data showed.

Local banks generated the most profit in Asia at NT$50.75 billion, as they focused on the market and established the most branches and subsidiaries in the region, the commission said.

However, they did not perform well in ASEAN, reporting a 27.38 percent plunge in earnings from NT$7.56 billion in 2017 to NT$5.49 billion last year, the data showed.

Combined net income in ASEAN nations dropped as some banks’ Singaporean branches suffered losses on their exposures to water treatment firm Hyflux Ltd, Banking Bureau Deputy Director Sherri Chuang (莊琇媛) said.

As the 10 ASEAN nations differ significantly in terms of economic performance, local banks can still seize opportunities in the market, but should monitor the risks, she added.

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