State-run Hua Nan Financial Holding Co’s (華南金控) net income in the first six months of this year rose 13.7 percent from a year earlier to a record NT$8.45 billion (US$269.43 million), although its net interest margin shed 7 basis points, the company told an investors’ conference yesterday.
The results translated into earnings per share of NT$0.73, ninth among 15 domestic peers over the period, company data showed.
The conglomerate’s net interest fell 0.92 percent in June from three months earlier, missing its goal of holding steady at about 1.4 percent for this year.
A narrowing gap between local and foreign interest rates accounted for the decline, while excessive competition also played a role, main subsidiary Hua Nan Commercial Bank (華南銀行) said.
The lender contributed more than 95 percent of the conglomerate’s profit in the first six months.
Hua Nan Financial intends to boost its margins by strengthening loans to small and medium-sized enterprises and adjusting asset allocations, it said.
Lending to large corporations increased 4 percent in the first half, compared with the same period last year, but such operations generated thin interest income, due to the lower credit risk, it said.
“With the US-China trade dispute casting uncertainty over the global economy, we are finding business opportunities to serve firms seeking to move production capacity from China to Taiwan or Southeast Asia,” a Hua Nan Financial official said.
Relocations suggest the need for funding to acquire land and build factories, the official said, adding that the bank would reach out to potential clients.
In addition, the lender would continue to grow business with clients in the “five plus two” sectors the government is grooming, the official said.
As for portfolio adjustments, Hua Nan Financial plans to cash in on unrealized gains in US-dollar bonds before their yields drop further, another official said.
Domestic financial firms have parked sizable funds in US-dollar assets in the past several years to take advantage of interest rate hikes prior to last month.
The conglomerate’s wealth management business rose 17 percent in June from a month earlier on the back of rush demand for savings-like insurance policies that are due out next year, if regulators give the green light.
The rapid growth enabled Hua Nan Commercial Bank to outperform state-run peers in terms-first commissions, the conglomerate said, adding that the benefit would remain for the rest of the year.
Hua Nan Financial said it would design other investment products and train employees to focus on protection insurance.
The company posted NT$1.81 billion in net income last month, boosting cumulative earnings to NT$10.03 billion for the first seven months, or NT$1.25 per common share.
DEAL LIKELY DEAD: As takeovers of semiconductor firms become national security issues amid a global microchip shortage, deals are becoming more difficult GlobalWafers Co (環球晶圓) failed to reach a breakthrough in a last-ditch bid to salvage its planned takeover of Siltronic AG, likely spelling the collapse of the US$5 billion deal. The Taiwanese technology company did not resolve the government’s concerns during a private meeting between GlobalWafers chairwoman Doris Hsu (徐秀蘭) and German Federal Ministry for Economic Affairs and Climate Action State Secretary Udo Philipp, people familiar with the matter said. Siltronic shares tumbled as much as 4.7 percent on the news on Friday, extending the stock’s decline for the year to more than 20 percent. While the ministry continues to examine the deal,
BOOMING ORDERS: As orders move away from neighboring countries such as India, Pakistan’s economic bright spot has found new customers in South America and Africa Pakistan’s textile sector is bringing cheer to its flailing economy, with exports set to swell to a record after gaining an edge over South Asian rivals during the COVID-19 pandemic. Textile exports are poised to surge 40 percent from a year earlier to a record US$21 billion in the 12 months ending in June, said Abdul Razak Dawood, commerce adviser to Pakistan’s prime minister. Dawood said that the figure would expand to US$26 billion in the next fiscal year, surpassing the nation’s total exports last year, he said. The textiles industry — which supplies everything from denim jeans to towels for buyers
Samsung Electronics Co is stepping up spending on advanced chipmaking technology as it sees growing demand for its smartphones, displays and memory products. South Korea’s largest company reported 43.6 trillion won (US$36.17 billion) in semiconductor capital expenditure last year, eclipsing rivals as it acquired extreme ultraviolet lithography (EUV) machines to pursue an aggressive expansion of its most lucrative memory and system chipmaking. It expects a recovery in server and PC memory demand, and said foldables are already helping its sales growth, although declined to offer a forecast due to the high degree of uncertainty around supply chains and the COVID-19 pandemic. Samsung
The data transmission speed of 6G (sixth-generation wireless) networks is expected to be 10 to 100 times faster than 5G technology, MediaTek Inc (聯發科) said in a paper released on Jan. 18. 6G standardization is expected to begin in 2024 or 2025, with the first standard technology expected in 2027 or 2028, said MediaTek, one of the world’s leading chip design companies. “Our 6G vision is of an adaptive, integrated and super heterogeneous wireless communication system, delivering pervasive mobile connectivity in a truly ubiquitous manner,” the paper said. The sector is making breakthroughs in the research and development (R&D) of key 6G technologies,