Chinatrust Commercial Bank (中國信託銀行), the commercial banking arm of Taiwan's sixth-biggest financial services company, said it sold bad loans with a face value of NT$2.5 billion (US$75.3 million) to its affiliate asset manager.
Chinatrust Commercial's bad loan ratio fell to 2.42 percent after today's sale, according to international accounting standards, said Perry Chang (張明田), the financial controller at parent Chinatrust Financial Holding Co (中信金控). That's down from 3 percent of total lending on Jan. 27. Chang didn't say how much the bank received for the bad loans.
``The bank's profitability will not be affected, as full provisions were made previously,'' Chang said.
On Feb. 20, Chinatrust Financial said it expected this year's pretax profit to rise to NT$22 billion after writing off NT$1.5 billion in goodwill for Grand Commercial Bank (萬通銀行).
Chinatrust Financial bought Grand Commercial Bank last year, completing the merging of the acquisition's computer systems with its own commercial bank's systems at the end of January.
Domestic lenders' bad-loan ratio fell to 6.08 percent as of Dec. 31 last year, from 7.87 percent at the end of September, after banks accelerated write-offs of troubled loans, according to the central bank. The ratio hit a peak of 11.53 percent in 2001.
"If domestic lenders can further dispose of bad loans of NT$158.7 billion, or 1.09 percent, this year, the 5 percent goal earmarked by the government can easily be reached," according to Cliff So (
While the country's financial sector had become healthier after the aggressive write-off of non-performing loans in the past three years, there was room for improvement with the bad-loan problem and financial transparency, international ratings agency Standard & Poor's (S&P) said earlier last week.
S&P said the country still faced many challenges and estimated that the nation's bad-loan ratio may decline to between 5 percent and 7 percent by the year's end.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its materials management head, Vanessa Lee (李文如), had tendered her resignation for personal reasons. The personnel adjustment takes effect tomorrow, TSMC said in a statement. The latest development came one month after Lee reportedly took leave from the middle of last month. Cliff Hou (侯永清), senior vice president and deputy cochief operating officer, is to concurrently take on the role of head of the materials management division, which has been under his supervision, TSMC said. Lee, who joined TSMC in 2022, was appointed senior director of materials management and
Nvidia Corp CEO Jensen Huang (黃仁勳) on Thursday met with US President Donald Trump at the White House, days before a planned trip to China by the head of the world’s most valuable chipmaker, people familiar with the matter said. Details of what the two men discussed were not immediately available, and the people familiar with the meeting declined to elaborate on the agenda. Spokespeople for the White House had no immediate comment. Nvidia declined to comment. Nvidia’s CEO has been vocal about the need for US companies to access the world’s largest semiconductor market and is a frequent visitor to China.
Hypermarket chain Carrefour Taiwan and upscale supermarket chain Mia C’bon on Saturday announced the suspension of their partnership with Jkopay Co (街口支付), one of Taiwan’s largest digital payment providers, amid a lawsuit involving its parent company. Carrefour and Mia C’bon said they would notify customers once Jkopay services are reinstated. The two retailers joined an array of other firms in suspending their partnerships with Jkopay. On Friday night, popular beverage chain TP Tea (茶湯會) also suspended its use of the platform, urging customers to opt for alternative payment methods. Another drinks brand, Guiji (龜記), on Friday said that it is up to individual
STABLE RESULTS: Despite June’s lower consolidated revenue, second-quarter sales still reached a record high, driven by demand for chips for AI applications Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported consolidated sales of NT$263.71 billion (US$9.02 billion) for last month, its second-lowest monthly result this year. The world’s largest contract chipmaker said in a statement that its revenue last month only fared better than the NT$260.01 billion posted in February. Last month’s figure rose 26.9 percent from a year earlier, but slumped 17.7 percent from May, the company said. However, second-quarter revenue reached NT$933.8 billion, a record high for a single quarter, company data showed. The figure represented growth of 11.26 percent from the first quarter and 38.6 percent from a year earlier. Previously, TSMC said that
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