Banks reported combined pretax profits of NT$318.05 billion (US$10.35 billion) in the January-to-November period, up 7.5 percent from the same period in 2017, with total pretax profits for last year likely to set a new record, the Financial Supervisory Commission said last week.
Banks in 2014 posted pretax profits totaling NT$320.1 billion, commission data showed.
As the first 11-month figure is only NT$2.1 billion less than the record and banks usually earn more than NT$20 billion per month, it is possible that local banks’ profitability reached a new high for the whole of last year, Banking Bureau Deputy Director Sherri Chuang (莊琇媛) told a news conference.
However, if the 14 banks led by Bank of Taiwan (台灣銀行) — which have lent NT$16.9 billion to Chunghwa Picture Tubes Ltd (CPT, 中華映管) and Green Energy Technology Inc (綠能科技) — decide to recognize their loans as losses in the month, then local banks’ combined pretax profits for last month would fall from a year earlier, meaning that the entire year’s pretax profits would not reach the record, Chuang said.
Thus far, only King’s Town Bank (京城銀行) has decided to recognize its lending of NT$1.64 billion to CPT as a potential loss, Chuang added.
The commission’s tallies also showed that banks’ domestic branches reported pretax profits of NT$209.32 billion in the January-to-November period, accounting for 65.8 percent of total pretax profits, while their overseas branches saw the number rise 12.3 percent annually to NT$32.17 billion for the same period, the highest-ever growth rate.
However, branches in China saw pretax profits for the 11-month period plunge 16.7 percent year-on-year to NT$3.23 billion, affected by a depreciating yuan and poor returns on investments in Chinese equities, the commission said.
Separately, the commission said that local banks lent NT$148.7 billion in November, including NT$88.9 billion to private companies.
Lending had advanced for the 21th consecutive month, meaning that demand for funds was still strong, Chuang said, adding that aggregate lending by local banks reached NT$28.47 trillion for the year as of the end of November.
Loan quality remained sound over the period, as non-performing loans totaled NT$74.3 billion as of the end of November with the average non-performing loan ratio staying flat at 0.26 percent, commission data showed.
The commission had asked lenders to reduce non-performing loans to China as long as they made profits, but three of the nation’s 37 lenders still reported non-performing loans as of November — Chang Hwa Commercial Bank (彰化銀行) with NT$407 million, CTBC Bank (中信銀行) with NT$425 million and Bank of Taiwan with NT$6 million, Chuang said.
The agency would continue to monitor the situation, she added.
INEXPENSIVE POWER: Group chairman Gautam Adani said 70% of the investment would go into energy transition, with a focus on green hydrogen India’s Adani Group is to invest more than US$100 billion over the next decade, most of it in the energy transition business, chairman Gautam Adani said yesterday, as the ports-to-energy conglomerate accelerates an already aggressive expansion plan. After founding the group in 1988 as a commodities trading business, the 60-year-old has ventured into multiple sectors, mainly in the infrastructure space and in line with the priorities of the government of Indian Prime Minister Narendra Modi. “As a group, we will invest over US$100 billion of capital in the next decade,” Adani, the world’s second-richest person, told the Forbes Global CEO Conference in
Foxconn Technology Group (富士康科技集團) is to invest US$1.75 million in a joint venture with PT Indika Energy Tbk to explore commercial electric vehicle (EV) and electric battery business opportunities in Indonesia, the Taipei-based company said yesterday. With the investment, Foxconn would hold a 40 percent stake in the joint venture, PT Foxconn Indika Motor, while PT Indika would own 60 percent. The collaboration is an extension of a memorandum of understanding signed in January by Indika Energy, Foxconn, Gogoro Inc (睿能創意) and others aiming to build an electric vehicle supply chain in Southeast Asia’s biggest economy. Gogoro, in which Foxconn owns a 0.76
PRICE POINT: While overall demand has lagged expectations, higher-priced iPhone 14 Pro models appear to attract more attention than entry-level versions, sources said Apple Inc is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize, people familiar with the matter said. The Cupertino, California-based company has told suppliers to pull back from efforts to increase assembly of the iPhone 14 product family by as many as 6 million units in the second half of this year, said the people, asking not to be named as the plans are not public. Instead, the company would aim to produce 90 million handsets for the period, about the same level as in the second half
StarLux Airlines Co (星宇航空) aims to turn a profit next year by expanding its passenger operations to North American and Southeast Asian markets and by increasing its cargo business, CEO and general manager Glenn Chai (翟健華) told a news conference in Taipei yesterday. The airline would offer new flights to Okinawa and Sapporo in Japan, as well as resume flights to Da Nang, Vietnam, at the end of next month to meet demand in the fourth quarter — a peak travel season, Chai said, adding that by that time, StarLux would be flying to a total of 13 destinations. It would