Taiwan Cooperative Financial Holding Co (合庫金控) yesterday posted record profit of NT$10.2 billion (US$365 million) for the first half of this year, up 26.67 percent from a year earlier, thanks to improved interest income and contributions from overseas operations.
The impressive showing translated into earnings per share of NT$0.73, with banking arm Taiwan Cooperative Bank (合庫銀行) generating 83.19 percent, despite COVID-19 restrictions, Taiwan Cooperative Financial president Chen Mei-tsu (陳美足) said.
“Operating conditions look bright ahead as major countries lift border controls and regain growth momentum,” Chen told an online investors conference.
Photo: Chen Yu-fu, Taipei Times
The backdrop bodes well for global trade and corporate lending, Chen said, adding that commercial banking is expected to grow 8 percent this year and consumer banking 5 percent.
Increased lending would support interest and fee income as seen in the first half of the year, she said.
Loans increased 7.2 percent year-on-year in the first six months to NT$2.43 trillion, while deposits grew 8.95 percent to NT$3.35 trillion, data from the bank-focused conglomerate showed.
Loans to small and medium-sized enterprises jumped 12.17 percent, while loans to the government and public enterprises swelled 33.66 percent, the data showed.
Banking activity picked up at overseas branches and outlets after a soft patch induced by social distancing measures amid pandemic restrictions, Chen said, adding that the improvement is expected to continue on the back of rising vaccination rates globally.
Consumer banking received a boost from mortgage operations and land financing, which rose 3.59 and 11.01 percent respectively from a year earlier to NT$565 billion and NT$145.2 billion as of June, Taiwan Cooperative Financial said.
The housing market in Taiwan was resilient, owing to solid real demand and low interest rates, even though selective credit controls and property tax hikes have slowed transactions recently, officials said, adding that the chances of price corrections are low in light of soaring prices for building materials.
Taiwan Cooperative Bank plans to create a private banking division next quarter to bolster relations with the nation’s ultra-wealthy customers and increase wealth management business, Chen said.
All subsidiaries would share know-how and resources to shore up the new division, she said.
The conglomerate said it intends to increase stakes in local firms, as ongoing corrections are an opportunity for bargain hunting.
It is optimistic about Taiwanese companies that have benefited from a realignment in the global electronics supply chain and a contactless economy boom, Taiwan Cooperative Financial said.
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