CTBC Bank (中國信託銀行) yesterday reported an annual increase in New Taiwan dollar-denominated loans and net fee income in the second quarter, despite the local COVID-19 outbreak.
The banking arm and main profit engine of CTBC Financial Holding Co (中信金控) reported that its NT dollar-denominated corporate loans, mortgages and unsecured consumer loans rose annually by 21.7 percent to NT$692 billion (US$24.73 billion), 11 percent to NT$798 billion and 18 percent to NT$193 billion respectively.
OVERSEAS BRANCHES
Photo: CNA
In contrast, the bank’s foreign currency-denominated lending fell 9 percent year-on-year to NT$930 billion, as its overseas branches were more conservative about approving new loans amid the COVID-19 pandemic, it told an investors’ conference.
The bank’s net interest margin, a gauge of its profitability, was 1.39 percent last quarter, flat from a quarter earlier, but down from 1.44 percent a year earlier, while its non-performing loan ratio dropped from 0.48 percent a quarter earlier to 0.4 percent as of the end of June, company data showed.
FEE INCOME
The bank’s net fee income expanded 11.8 percent annually to NT$8.03 billion, as fee income from its wealth management business and corporate banking grew 24.8 percent to NT$4.27 billion and 22 percent to NT$939 million respectively, offsetting declines reported by its credit card and consumer banking businesses.
VOUCHER PROGRAM
Asked about how the government’s proposed “quintuple stimulus voucher” program would boost the local economy, CTBC Financial said it estimated that the program would trigger additional consumption of NT$120 billion, which would help raise the nation’s GDP by 0.4 to 0.5 percent.
However, as the vouchers would reportedly be distributed in October, they might have less of an effect on the economy than last year’s Triple Stimulus Vouchers, which were distributed in July, a peak spending season, CTBC Financial spokeswoman Chiu Ya-ling (邱雅玲) said.
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