IBF Financial Holdings Co (國票金控) yesterday posted net profit of NT$977 million (US$33.84 million) for last quarter, an annual gain of 26.5 percent amid rising corporate lending, green lending and commercial paper business.
Its main profit engine, International Bills Finance Co (國際票券), reported that net profit rose 40 percent from a year earlier to NT$879 million, accounting for 90 percent of the financial conglomerate’s total earnings.
International Bills, which used to focus on short-term bills and debt instruments that mature within one year, has shifted its attention to providing long-term loans to solar photovoltaic (PV) developers, as they contribute better interest income, International Bills president Chiu Yen-lang (邱彥郎) told an investors’ conference in Taipei.
Photo: Lee Chin-hui, Taipei Times
“Our green loans come with net interest spread of 150 basis points on average, higher than the average spread of 120 basis points for banks,” Chiu said.
International Bills had offered NT$13.9 billion in loans to local PV developers as of the end of September, including those building generators for roofs or ground-mounted solar projects.
The company plans to expand its reach to onshore wind power developers, Chiu said.
“We are not interested in stepping into the offshore wind power business, as foreign developers usually ask for non-collateral loans of tens of billions, which is over our risk appetite for unsecured loans,” he said.
International Bills also provides loans to companies via a new debt instrument — fixed or floating rate commercial paper (FRCP) — which have a maturity of up to five years, Chiu said.
The company granted a syndicated loan of NT$2.04 billion to Rich Development Co (力麒建設) for its new property near Sun Moon Lake (日月潭) in Nantou County, he said.
Investing in foreign currency-denominated bonds provides momentum as they provide a better spread of 200 basis points, compared with a spread of 10 basis points for New Taiwan dollar-denominated bonds, he said.
Meanwhile, IBF Securities (國票證券) reported that net profit grew 25 percent year-on-year to NT$456 million during the July-to-September period, while IBF Venture Capital (國票創投) sank into the red with a net loss of NT$83 million due to falling value of its investment in food and dining firms.
Overall, IBF Financial reported a net profit of NT$2.46 billion for the first nine months, up 16.09 percent from a year earlier, the fourth-fastest growth among the nation’s 15 financial conglomerates after Fubon Financial Holding Co (富邦金控), with an annual gain of 27.09 percent, Cathay Financial Holding Co (國泰金控) with 23.48 percent and Jih Sun Financial Holding Co (日盛金控) with 17.37 percent.
IBF Financial would focus more on providing customized services to retain profit momentum, as it expects the US Federal Reserve to continue with its loose monetary policy no matter who wins its presidential election, IBF Financial chairman Wea Chi-lin (魏啟林) told investors.
With the speed cryptocurrency is emerging as the millennial generation’s alternative asset of choice in India, it is hard to imagine that just two years ago a couple of blockchain pioneers were briefly in police custody. Sathvik Vishwanath and Harish BV, cofounders of a then five-year-old start-up, were arrested in late 2018. No, they had not pulled off a shady initial coin offering. Their “crime” was that they put up a kiosk in a mall in Bangalore where customers could swap bitcoin, ether or ripple for cash or vice versa. That was the whole point of unocoin, their crypto token exchange.
FIVE NEW FABS: An acquisition of Siltronic would boost GlobalWafers’ market share from 17 to 30 percent, easily surpassing Japanese rival Sumco’s 25 percent GlobalWafers Inc (環球晶圓) yesterday said it is in final talks to acquire Germany-based Siltronic AG in a 3.75 billion euro (US$4.5 billion) deal, which might help it compete with its closest rival Sumco Corp of Japan. The acquisition would be the fifth for GlobalWafers since 2008, as it has grown to become the world’s No. 3 supplier of silicon wafers through such deals. GlobalWafers, which has a 17 percent market share, would see its market position greatly elevated to 30 percent when combined with Siltronic’s 13 percent, according to a presentation Siltronic gave to its investors at a quarterly conference in August. Sumco
A Chinese factory owned by South Korean semiconductor giant SK Hynix Inc yesterday halted operations after a plant worker was found to have an asymptomatic infection of COVID-19, Xinhua news agency reported. The South Korean worker based at the plant in Chongqing since February had departed on Thursday for South Korea, Xinhua reported. He was tested at Incheon Airport in Seoul and confirmed positive for COVID-19 on Saturday, it reported. All factory staff as well as staff and recent guests at the hotel where the worker lived have been isolated and given nucleic acid tests, the agency said. “We’re cooperating with the local government
CONCERNS: The bank would act if it noticed currency speculation, the governor said, but he did not comment on a likely trajectory of the NT dollar against the greenback The central bank would intervene in the market whenever necessary to help stabilize the New Taiwan dollar, central bank Governor Yang Chin-long (楊金龍) said yesterday, adding that it is concerned Taiwan might be placed on the US watchlist for currency manipulation. The Control Yuan recently sent letter inquiring about the central bank’s market regulation efforts, Yang told a meeting of the legislature’s Finance Committee on the NT dollar’s appreciation and property price hikes. “It is the central bank’s top responsibility to stabilize foreign exchanges,” he said. The central bank has often stepped in toward the end of trading sessions to moderate the NT