CTBC Financial Holding Co (中信金控) yesterday gave an upbeat earnings outlook for this year on expectations that its large overseas investments would take advantage of economic growth across the globe, as well as in Taiwan.
A victory over France’s far-right candidate in that nation’s presidential election at the weekend will mitigate uncertainties in European markets, while two more US Federal Reserve interest-rate hikes on the back of continued economic growth in the US would also help, CTBC Financial president Daniel Wu (吳一揆) told an investors’ conference.
These factors are anticipated to boost earnings at the company’s extensive international operations and foreign-currency-denominated lending, Wu said.
CTBC Financial’s banking business accounted for 82 percent of the company’s overall earnings last quarter, of which 45 percent originated from subsidiaries abroad, company data showed.
The company’s overseas businesses are tipped to expand further after the NT$15.4 billion (US$509 million) acquisition of a 35.6 percent stake in Thailand’s LH Financial Group PLC, which is scheduled to complete before the end of next quarter.
The company reported that net income last quarter rose 55.6 percent annually and 122 percent quarterly to NT$10.21 billion due to strong fee-income growth and investment gains, as well as diminishing effects from yuan-linked target redemption forwards (TRF). Earnings per share were NT$0.52.
Net income contribution from its life insurance unit, Taiwan Life Insurance Co (台灣人壽保險), rose 389.2 percent quarterly and 5.8 percent annually to NT$1.42 billion, CTBC Financial said.
Wu said that the effects of the strengthening New Taiwan dollar — which has surged 6.4 percent against the US dollar this year — has strained Taiwan Life and its domestic peers, but the effect is expected to begin diminishing.
Wu said that the NT dollar is expected to trade at between NT$30 and NT$31 against the US dollar, while the local currency would see only limited gains going forward.
Taiwan Life sustained NT$2.7 billion in foreign-exchange-related losses in the first quarter, while its foreign-exchange valuation reserves fell to NT$270 million, it said.
Meanwhile, CTBC Financial said that its co-branded Line Pay credit card has had a favorable take-up rate since its launch in December last year.
The company has issued 360,000 Line Pay cards, of which 40 percent were to new customers who migrated from other banks, while many of its existing customers have increased credit-card spending by as much as 60 percent, CTBC Financial senior vice president Chiu Ya-ling (邱雅玲) said.
The company is prioritizing Android Pay over Samsung Pay, the company said.
Choosing a payment service displaces others because of one-month exclusivity agreements.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
Two companies wholly owned by the daughter of the founder of Hon Hai Precision Industry Co (鴻海精密) on Monday reported to the Taiwan Stock Exchange that they would dispose of all of the Hon Hai shares they hold. In filings with the exchange, Hong Wei Investment Co (鋐維) said it would sell the 2.771 million Hon Hai shares it holds and Frontier Investment Corp (承鋒投資) said it would sell its 2.409 million Hon Hai shares from tomorrow until Jan. 3 next year. The two companies are wholly owned and chaired by Shirley Gou (郭曉玲), the eldest daughter of Hon Hai founder Terry
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
RSS