Wed, Jun 12, 2019 - Page 12 News List

TAMC to diversify income sources

By Crystal Hsu  /  Staff reporter

Taiwan Asset Management Corp acting chairman Kuo Wen-jin, right, announces this year’s supply of low-cost housing units at a news conference in Taipei yesterday.

Photo: Cheng Chi-fang, Taipei Times

State-run Taiwan Asset Management Corp (TAMC, 台灣金聯), the nation’s largest bad-loan operator, aims to diversify its income sources and keep its earnings ability steady this year as the pool of bad assets dwindles, top executives said yesterday.

The Taipei-based company last year posted net income of NT$1.2 billion (US$38.17 million), or earnings per share of NT$0.8.

It needs NT$850 million this year to meet its target, following a 20 percent capital reduction in September last year aimed at producing a more efficient capital structure, acting chairman Kuo Wen-jin (郭文進) said.

The company, created by state-run and private lenders to help digest toxic assets, has been without a chairman since former minister of labor Lin Mei-chu (林美珠), a cousin of President Tsai Ing-wen (蔡英文), quit one day after assuming the position amid criticism over her appointment.

TAMC used to generate profit almost solely from reselling bad assets, but has expanded into property management and development to cope with an increasingly small pool of non-performing loans.

The company is next month to sell a batch of 52 residential units it acquired nationwide on the foreclosed market, Kuo said.

The volume is a significant reduction from about 100 units in previous years.

The shrinking number of foreclosures warrants a slower approach, Kuo said, adding that the company might be left with 20 units following the annual sales campaign.

This year’s batch includes six apartments of 23 ping to 65 ping (76m2 to 215m2) in Taipei starting from NT$16.5 million and 10 apartments in New Taipei City starting from NT$11.32 million, Kuo said.

The remaining 36 units cost an average of NT$4.19 million, company data showed.

A townhouse of 47.52 ping in Yunlin County has the lowest asking price at NT$1.46 million, it said.

Rents generate 30 percent of revenue, in line with a change in strategy to increase the share of recurring income, Kuo said.

TAMC has partnered with hoteliers to convert idle buildings in Taitung and Taichung into lodging facilities to boost rental income.

The company is soon to start the construction of a residential building near National Chengchih University that could bring another NT$200 million if all units are sold, senior vice president Huang Hsien-chun (黃顯均) said.

The building would have nine 30-ping apartments, with each unit having its own parking space, Huang said.

The company is also considering developing industrial complexes to take advantage of capital repatriation from China, he said.

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