State-run Mega International Commercial Bank (兆豐銀行), the main subsidiary of Mega Financial Holding Co (兆豐金控), yesterday said it aims to strengthen mortgage operations this year, as the business helps boost credit card customers and fund sales.
The lender’s mortgage operations last year spiked 64 percent year-on-year to NT$120 billion (US$4.24 billion), carrying its retail banking to second place among domestic peers, despite sharp competition, Mega Bank said.
Mega Bank attributed the achievement to its successful targeting of customers with real demand, namely first-time home buyers and those with relocation needs.
Photo: Ritchie B. Tongo, EPA-EFE
Mortgage borrowers tend to have long-term relationships with banks and have demonstrated a keen interest in credit card usage, mutual funds, foreign currencies and other financial products and services, Mega Bank said.
Mortgage customers accounted for NT$6.1 billion of fund sales last year, the highest in three years, while contributing NT$2.3 billion in credit card spending, the lender said, adding that 70 percent of mortgage customers own Mega Bank credit cards.
The central bank’s selective credit controls are favorable for the health of the mortgage market, as they require higher capital for property development and multiple home purchases, the lender said.
Mega Bank said it would beef up mortgage operations by increasing its number of clients aged 39 or younger, adding that first-time home buyers underpin this group with an average loan demand of NT$8 million.
The lender would support the government’s program to provide young home buyers with preferential interest rates and make its online services more user-friendly, it said.
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