Shanghai Commercial and Savings Bank Ltd (SCSB, 上海商業儲蓄銀行) on Monday reported record-high profit for last year on the back of higher income from fees and interest.
Net profit increased 6.9 percent year-on-year to NT$14.66 billion (US$484.6 billion), or earnings per share of NT$3.5, with net fee income rising 19 percent to NT$6.52 billion and net interest income increasing 10 percent to NT$29.94 billion, the bank said.
The bank’s board of directors has approved a proposal to pay a cash dividend of NT$2.05 per share, up from NT$2 a year earlier, which would translate into a payout ratio of 58.6 percent and a dividend yield of 5.18 percent based on Monday’s closing price of NT$39.55.
“Lending rose at a high double-digit percentage rate at the Vietnamese unit, as more Taiwanese companies last year expanded their operations amid reshuffled supply chains due to the US-China trade dispute,” SCSB executive vice president Alex Lin (林志宏) told the Taipei Times by telephone.
The bank plans to set up more branches in Southeast Asia, despite increased competition in the region, Lin said, adding that the bank has representative offices in Bangkok, Phnom Penh and Jakarta.
The bank’s Hong Kong operations reported increased lending despite pro-democracy protests, Lin said.
“Some clients considered moving their money from Hong Kong to Singapore, but few actually did,” he added.
SCSB this year expects growth of 10 percent on its loan book, given it has few borrowers in the aviation, hotel and tourism sectors, Lin said.
However, low interest rates remain a major concern for profit growth this year, as net interest margin would continue to contract following interest rate cuts by central banks worldwide, he said.
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