An increase in domestic COVID-19 infections has had little impact on Taiwan Business Bank’s (TBB, 台灣企銀) operations, it said yesterday, adding that it expects stable growth in mortgage lending this year, despite credit controls aimed at cooling the real-estate market.
The state-run bank gave the guardedly optimistic view during an online investors’ conference, where it confirmed a net profit of NT$1.1 billion (US$39.77 million) for the first quarter, or earnings per share of NT$0.17.
STILL AFFECTED
Photo: Wang Yi-sung, Taipei Times
The result was weaker than a year earlier, suggesting that the lender has not yet emerged from the effects of the COVID-19 pandemic, but it said it expects business to improve as the global economy gains traction.
Although uncertainty linked to the virus crisis lingers, business and investment sentiment is picking up, TBB spokesman Chang Yo-ming (張佑銘) said.
Sales of wealth management products such as mutual funds and foreign debts have gained in popularity amid abundant liquidity around the world, Chang said.
Interest spread gained 4 basis points to 1.28 percent at the end of March, while net interest margin added 5 basis points to 0.96 percent, company data showed.
Meanwhile, bad loans grew by NT$100 million to NT$624 million due to COVID-19 relief loans, as all banks responded to the government’s call to support troubled companies, TBB said.
LENDING SHIFT
Consequently, the ratio for nonperforming loans climbed to 0.51 percent, higher than the sector’s average, but declined somewhat in April, another official said.
TBB is to step up provisions for related financing as the government yesterday expanded the relief and subsidy program.
TBB expects its mortgage operation to see a stable increase this year on the back of property demand from individuals and companies returning from abroad, unaffected by credit controls aimed at property speculators.
Trading income slowed last quarter from a year or even three months earlier, but TBB might see dividend incomes from this month to August, Chang said.
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