Fuhwa Financial Holding Co (
The drawn-out merger finally took effect yesterday. Yuanta had been delisted from the Taiwan Stock Exchange (TSE) in the meantime.
"We expect earnings per share to exceed NT$1 this year," Michael Ma (馬維辰), vice chairman of Fuhwa Commercial Bank (復華銀行), said on the sidelines of the merger ceremony yesterday.
The drivers for the renewed profitability come mainly from the lucrative securities arm, coupled with the banking unit's recovering financial condition, Ma said, who will be the chief operations officer of Fuhwa Financial in the future.
Fuhwa Financial incurred a loss of NT$3.08 billion last year, or negative NT$0.98 per share, due to mounting bad loans in its banking unit.
The ceremony attracted high-profile operators from the nation's financial sector, including Daniel Tsai (
Fuhwa Financial will develop into a brokerage-centric financial holding firm, with the securities business contributing over 70 percent of income in future, with the remainder coming from its banking unit, said Victor Ma (馬維建), chairman of Fuhwa Securities Finance Co (復華證金).
Victor Ma will take over the presidency of the financial group in the second half of the year.
The company plans to undertake a NT$22 billion capital reduction from its brokerage arm after completing the integration between Yuanta Core Pacific Securities and Fuhwa Securities Co (
It would then inject up to NT$12 billion into the weaker banking unit in order to lift the capital adequacy ratio above 10 percent -- from the current 9.5 percent -- in order to facilitate the bank's overseas expansion.
The remaining NT$10 billion would be used to acquire targets locally and internationally in the securities and banking arena, but not problematic financial institutions recently taken over by the government, Michael Ma and Victor Ma said.
For its planned overseas expansion, the bank will target the Vietnamese market and leverage the footing already established by Yuanta through its close ties with Vietnam-based Taiwanese firms in order to tap into the fast-growing economy, Victor Ma said.
Victor Ma added that he expects overseas businesses to contribute 25 percent of the financial group's income within the next five years, compared to 15 percent currently at the Yuanta unit.
The company is also mulling whether to seek a strategic partnership with an overseas bank to introduce management and product know-how, Michael Ma said.
The merger means that Fuhwa Financial now leads the nation's brokerage market with a 12 percent share and has boosted its total number of outlets to 220.
Fuhwa Financial closed down 5 percent at NT$15.20 on the Taiwan Stock Exchange yesterday.
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
ROUGH RECORDS: Bonds in Japan, as well is in New Zealand, Australia and the US, are seeing the effects of a nervy market as stock exchanges across Asia edge down A deepening slump in Japanese government bonds added fuel to the selloff in global debt markets as rising oil prices stoked inflation fears and pushed yields to multi-decade highs. Japan’s 30-year yield yesterday surged as much as 20 basis points to the highest level since the tenor’s debut in 1999, before paring some of the move. Shorter-maturity Japanese debt was also under pressure, underscored by weak demand at a sale of five-year notes that offered a record-high coupon of 2 percent. Concerns over inflation and government spending rippling through markets including the US, Australia and New Zealand are being amplified in Japan,
The US has cleared about 10 Chinese firms to buy Nvidia Corp’s second-most powerful artificial intelligence (AI) chip, the H200, but not a single delivery has been made so far, three people familiar with the matter said, leaving a major technology deal in limbo as chief executive officer Jensen Huang (黃仁勳) seeks a breakthrough in China this week. Huang, who was not initially listed in a White House delegation to Beijing, joined the trip after an invitation from US President Donald Trump, a source said. Trump picked him up in Alaska en route to a summit with Chinese President Xi Jinping
Wall Street is licking its chops over an unprecedented slate of massive initial public offerings (IPOs) set to arrive in the coming months, beginning with Elon Musk’s Space Exploration Technologies Corp (SpaceX) next month. That is expected to be followed by artificial intelligence (AI) rivals OpenAI and Anthropic PBC. The trio of mega listings, each eyeing valuations around US$1 trillion or more, constitutes a heady period of elevated risk and reward. SpaceX is targeting an IPO that would raise up to US$80 billion — about double the funds generated from all IPOs last year. OpenAI and Anthropic are eyeing IPOs raising US$60 billion. “We’re
RSS