State-run Chang Hwa Commercial Bank (CHB, 彰化銀行) aims to grow its profit this year at a slightly faster rate than the nation’s GDP growth, driven by overseas operations and lending to small and medium-sized enterprises (SMEs), officials said yesterday.
The bank posted NT$12.6 billion (US$407.74 million) in net income for last year, a 4.58 percent annual increase and translating into earnings per share of NT$1.29.
Pretax profit rose 3.71 percent to NT$14.71 billion, more than meeting a target of NT$14.5 billion, company data showed.
“We will pursue stable profit growth this year by strengthening core operations and tapping into digital banking, despite growing economic uncertainty,” Chang Hwa Commercial Bank chairman Chang Ming-daw (張明道) told a media briefing.
The bank plans to increase loans by 3 percent from last year, which is modestly higher than the Directorate-General of Budget, Accounting and Statistics’ projected GDP growth of 2.27 percent, Chang said.
The economic environment in Taiwan is not as gloomy as expected and the bank would be more flexible with its credit and capital when meeting its business target, Chang said.
SME loans might increase 5 to 6 percent this year, in line with last year’s 5.8 percent annual pickup, Chang Hwa Commercial Bank president David Chang (張鴻基) said.
The lender would focus on companies targeted by the government’s “five plus two” innovative industries plan and those with operations in Southeast Asia to support the government’s industrial policy, he said.
Overseas and offshore operations, which generated 42 percent of the bank’s overall earnings last year, are expected to contribute 47 to 48 percent this year, as branches in the Philippines and China might start to bear fruit, the lender said.
The bank hopes to open a branch in Houston, Texas, to expand its services in the US, company officials said, adding that the branch could be launched later this year if authorities give their approval.
Chang Hwa Commercial Bank also plans to add 250 workers to investigate business opportunities linked to financial technology, which is shaking up the banking industry, Chang Ming-daw said.
While the lender is not vying for Web-only banking licenses, it has no intention of sitting out the digital revolution, the chairman said.
This recruitment round is mainly targeting people with expertise in cybersecurity, e-commerce and information technology, he said.
Chang Hwa Commercial Bank generated NT$2.24 billion in net income for the first two months of this year, or earnings per share of NT$0.23, company data showed.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s