Hua Nan Financial Holdings Co (華南金控), owner of Taiwan's fifth-largest lender, and Chang Hwa Commercial Bank (彰化銀行), the sixth-largest, posted net losses for the first half after accelerating write-offs of bad loans.
First Commercial Bank (
Hua Nan, Chang Hwa and First Commercial are among lenders forecasting losses this year as Taiwan deregulates its financial industry and spurs a cleanup of bad loans. Almost 12 percent of bank loans, or NT$1.68 trillion (US$50 billion), was nonperforming or in danger of default in March, according to the central bank.
"It's good that they are writing off the bad loans as it helps to increase transparency and may allow them to post better earnings next year," said Steven Chu, who manages NT$2.7 billion of global equities at ING CHB Securities & Investment Trust Co.
"The share prices have risen to reflect that."
Hua Nan and Chang Hwa shares have climbed 25 percent and 19 percent respectively this year, compared with a 3.1 percent decline in the benchmark index. First Commercial shares have gained 7.4 percent in the same period.
Hua Nan Financial had a net loss of NT$30.3 billion for the first half, according to a faxed statement that didn't provide a year-earlier figure. The company started trading as a financial holding company on Dec. 19 after delisting Hua Nan Commercial Bank (
Chang Hwa posted a six-month net loss of NT$18.8 billion after setting aside NT$24.3 billion to cover bad loans. It has written off NT$25.7 billion of overdue loans, it said in a statement. The bank had net income of NT$989.3 million in last year's first half.
First Commercial, which last month sold NT$11 billion of bad loans, reported a pretax loss of NT$17.97 billion. It had a pretax profit of NT$2.3 billion last year.
Companies are resorting to bond sales, making it harder for lenders to achieve profits.
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
‘IMMENSE SWAY’: The top 50 companies, based on market cap, shape everything from technology to consumer trends, advisory firm Visual Capitalist said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was ranked the 10th-most valuable company globally this year, market information advisory firm Visual Capitalist said. TSMC sat on a market cap of about US$915 billion as of Monday last week, making it the 10th-most valuable company in the world and No. 1 in Asia, the publisher said in its “50 Most Valuable Companies in the World” list. Visual Capitalist described TSMC as the world’s largest dedicated semiconductor foundry operator that rolls out chips for major tech names such as US consumer electronics brand Apple Inc, and artificial intelligence (AI) chip designers Nvidia Corp and Advanced
Saudi Arabian Oil Co (Aramco), the Saudi state-owned oil giant, yesterday posted first-quarter profits of US$26 billion, down 4.6 percent from the prior year as falling global oil prices undermine the kingdom’s multitrillion-dollar development plans. Aramco had revenues of US$108.1 billion over the quarter, the company reported in a filing on Riyadh’s Tadawul stock exchange. The company saw US$107.2 billion in revenues and profits of US$27.2 billion for the same period last year. Saudi Arabia has promised to invest US$600 billion in the US over the course of US President Donald Trump’s second term. Trump, who is set to touch
SKEPTICAL: An economist said it is possible US and Chinese officials would walk away from the meeting saying talks were productive, without reducing tariffs at all US President Donald Trump hailed a “total reset” in US-China trade relations, ahead of a second day of talks yesterday between top officials from Washington and Beijing aimed at de-escalating trade tensions sparked by his aggressive tariff rollout. In a Truth Social post early yesterday, Trump praised the “very good” discussions and deemed them “a total reset negotiated in a friendly, but constructive, manner.” The second day of closed-door meetings between US Secretary of the Treasury Scott Bessent, US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng (何立峰) were due to restart yesterday morning, said a person familiar