State-run Taiwan Cooperative Financial Holding Co (合庫金控) is to sit out the competition among local peers for Web-only bank licenses and focus on business opportunities linked to the nation’s graying population, a company executive said.
“We have no intention of competing for the two Internet-only bank licenses, because such operations are different from the online banking services offered by conventional lenders,” Taiwan Cooperative Financial president Chen Mei-tsu (陳美足) told an investors’ conference on Thursday.
The Financial Supervisory Commission has announced plans to issue two licenses for Web-only banks in Taiwan, which must allow non-banking enterprises to own a controlling stake, in line with international trends.
State-run Mega International Commercial Bank (兆豐銀行), First Commercial Bank (第一銀行) and Taiwan Business Bank (台企銀) have said they are interested in setting up new ventures in partnership with domestic telecoms.
By contrast, Chen said the holding, which focuses on its banking business, prefers a stable and conservative approach to improve its earnings ability.
The conglomerate’s main subsidiary, Taiwan Cooperative Bank (合庫銀行), is to open “digital branches” and expand online banking services to meet client’s needs, Chen said.
The lender, which operates 270 outlets nationwide, ranks first in terms of reverse mortgage operations, which totaled NT$6.4 billion (US$208 million) in the first half of the year, Chen said.
Reverse mortgage operations, part of the government’s response to Taiwan’s fast-growing aging population, help elderly home owners maintain financial independence by mortgaging their property.
The lender is to focus on such activities by providing suchclients with one-stop trust services that cover leasing and property rights, long-term care, prepayment of services and other solutions, Chen said.
Judging by the loans it extended in the first half, the bank also outperformed peers in supporting the government’s New Southbound Policy, she said.
The cautious strategy paid off, as Taiwan Cooperative Financial posted NT$8.09 billion in net income in the first six months of the year, an 8.45 percent increase from the same period last year, Chen said.
Overseas operations contributed 30.26 percent of the company’s total earnings, as lending in Southeast Asia generated higher yields, Taiwan Cooperative Financial said.
Later this year, Taiwan Cooperative Bank is to add two branches in Cambodia, where it already has five offices, Chen said.
The lender is pressing ahead with portfolio adjustments by overweighting assets that generate better yields and underweighting low-yield assets, Chen said.
The bank’s non-performing loan ratio dropped to 0.35 percent by the end of June, down 6 basis points from the end of the second half of last year, company data showed.
soft landing: The US’ rate-setting FOMC finds itself in a difficult situation as it seeks to address inflation through interest rate hikes while avoiding a recession The US Federal Reserve is widely expected to hold interest rates steady on Wednesday after a summer of mixed economic data, while leaving the door open to another hike if needed. The Fed has raised interest rates 11 times over the past 18 months, lifting its key lending rate to a level not seen for 22 years as it tackles inflation still stubbornly above its long-term target of 2 percent. Analysts and traders broadly expect the US central bank to hold rates steady on Wednesday in order to give policymakers more time to assess the health of the world’s largest economy. “We think
AI TREND: TSMC has been rapidly expanding capacity to meet a spike in demand for advanced packaging services, but still expects supplies to be tight for 18 months Arizona is in talks with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) about advanced chip packaging, state Governor Katie Hobbs said yesterday, which is crucial for the manufacturing of artificial intelligence (AI) chips. TSMC, which is building a US$40 billion chip factory in the US state, has not announced plans to build facilities for advanced chip packaging in the US. Advanced packaging processes stitch multiple chips together into a single device, lowering the added cost of more powerful computing. “Part of our efforts at building the semiconductor ecosystem is focusing on advanced packaging, so we have several things in the works around that
At a sprawling South Korean arms factory on Friday, a high-tech production line of robots and super-skilled workers were rapidly churning out weapons that could, eventually, play a role in Ukraine. Since the Russian invasion last year, the Hanwha Aerospace factory in the southern city of Changwon has expanded production capacity three times, workers told reporters, as South Korea ramps up arms exports while traditional behemoths like the US struggle with production shortages. Longstanding domestic policy bars Seoul from selling weapons into active conflicts, but even so it signed deals worth US$17.3 billion last year, including a US$12.7 billion agreement with NATO
Tailwinds: Blockbuster earnings at Nvidia Corp have sparked hopes of a tech sector boom; Taiwanese chipmakers are hopeful benefits will come to them too The worst could be over for the New Taiwan dollar as China’s economic recovery and a rebound in the chip industry will support the beleaguered currency, analysts said. The NT dollar is on course to weaken for a sixth month, the longest stretch since 2006, after foreign funds turned sour on its technology sector and risk sentiment deteriorated on slower growth in China. The tide seems to be turning now on nascent signs of stabilization in China’s economy — its biggest trading partner — following policy boosts. The yuan emerged as the best-performing Asian currency last week, followed by the Japanese yen