State-run Taiwan Cooperative Financial Holding Co (合庫金控) saw a profit increase of nearly 9 percent in the first four months of the year on the back of robust loan demand and expects the growth momentum to continue through the rest of the year.
A stable economy at home and abroad should continue to lend support to core businesses at the bank-focused conglomerate, spokeswoman Chen Mei-tsu (陳美足) said.
Cumulative net income rose almost 9 percent to NT$5.16 billion (US$172.05 million), or earnings per share of NT$0.41, ranking it 10th among the nation’s 15 listed financial service providers, Taiwan Stock Exchange data showed.
“The improvement was in line with our expectations and should keep pace going forward with no major downside risks in sight,” Chen told reporters on the sidelines of a public function in Taipei.
Main subsidiary Taiwan Cooperative Bank (合庫銀行) generated NT$4.59 billion in profit from January to April, accounting for 89 percent of overall profit, Chen said.
Fee income held steady from the same period last year, with sales of mutual funds overtaking those of insurance policies, she said, adding that investors are seeking to take advantage of stock rallies and benefit from interest rate hikes overseas.
In particular, funds targeting artificial intelligence and biotechnology have posted rapid growth, propelled by research into AI-driven precision medicine that might allow people to live longer than 100 years old, state-run First Securities Investment Trust Co (第一金投信) said.
That explains why related funds soared 4.3 times to US$23.8 billion from 2011 to last year, and are bound to expand further in the coming years as major technology giants join the field, First Securities Investment said.
Taiwan Cooperative Bank aims to grow its mortgage lending by 3 percent this year after flat operations in the previous three years, Chen said, citing a stable recovery in buying interest in select areas.
Land financing and mortgage applications have evidently picked up in New Taipei City’s Linkou (林口) and Tamsui (淡水) districts, where some investors have rejoined the fold, she said.
Ample liquidity and an average low interest rate of 1.6 percent at Taiwan Cooperative Bank have helped support the property market, Chen said.
The bank, the nation’s largest by number of branches, does not expect net interest margin to have a material uptick from the 1.35 percent recorded at the end of last quarter, she said.
Taiwan Cooperative Bank is to hold its 27th summer camp on July 18 as part of its attempt to promote table tennis, baseball and badminton in Taiwan, she said.
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