Delinquency rates rise on defaults

By Ted Chen  /  Staff reporter

Wed, Jan 03, 2018 - Page 12

A default by Ching Fu Shipbuilding Co (慶富造船) caused an uptick in total loan delinquencies among domestic banks in November last year, Financial Supervisory Commission (FSC) data showed yesterday.

At the end of November, non-performing loans rose by NT$1.9 billion (US$64.13 million) to NT$81.3 billion, of which NT$1.6 billion were from state-run lenders who had participated in a syndicated loan to the troubled shipbuilder, the FSC said.

Mega International Commercial Bank (兆豐銀行), First Commercial Bank (第一銀行), Land Bank of Taiwan (土地銀行) and Bank of Taiwan (臺灣銀行) wrote off NT$800 million, NT$200 million, NT$570 million and NT$100 million respectively, while Chang Hua Commercial Bank (彰化銀行) wrote off NT$360 million as its loan to a technology firm became delinquent, the commission said, declining to identify the borrower.

At the same time, the bad debt coverage ratio fell 6.42 percentage points to 457.64 percent.

Meanwhile, total profits by domestic banks as of the end of November last year rose 4.3 percent to NT$283.59 billion.

In particular, profit contribution from China-based branches surged 434 percent to NT$730 million.

The gains in China were thanks to the stability of the yuan last year, compared with a low base set in 2016 when it depreciated markedly, Banking Bureau Chief Secretary Chen Yen-yi (陳妍沂) said.