State-run Chang Hwa Commercial Bank (CHB, 彰化銀行) gave a positive outlook for profit growth this year after net income last year spiked 24.62 percent annually to a record NT$10.97 billion (US$361.03 million), due to interest rate hikes and loan structure adjustments.
The results translate into earnings per share of NT$1.04 — a 30 percent improvement from earnings per share of NT$0.8 last year, CHB spokesman Chen Bin (陳斌) told an online investors’ conference on Monday.
“Growth momentum might continue this year, as global central banks stand by monetary tightening to fight inflation, boding well for the interest spread and net interest margin at CHB,” Chen said.
Photo: Chen Chih-chu, Taipei Times
The bank’s rosy outlook was supported by net profit of NT$2.23 billion in the first two months of this year, suggesting a 26 percent increase from the same period last year, company data showed.
Income from interest was the bank’s main profit driver after total loans grew nearly 10 percent, the data showed.
As a result, net interest margin rose more than 10 basis points and could continue to benefit from a tight monetary cycle this year, analysts said.
The US Federal Reserve last week said that it might raise interest rates further to push inflation back to 2 percent, while Taiwan’s central bank has conveyed a similar message.
Adjustments to CHB’s loan structure that place more emphasis on lending operations with higher yields and cost-efficient demand deposits also paid off, analysts said.
The strategy helped explain why foreign-currency loans rose 18 percent annually every quarter, outperforming lending denominated in the local currency, they said.
Analysts are expecting single-percentage growth in loan operations this year, while market volatility restricts fee income prospects.
CHB would likely decide on a dividend plan similar to last year’s NT$0.6 per share, including a NT$0.5 cash dividend and a NT$0.1 stock dividend, Chen said.
The board would discuss the issue later this year, he added.
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
NEXT GENERATION: The company also showcased automated machines, including a nursing robot called Nurabot, which is to enter service at a Taichung hospital this year Hon Hai Precision Industry Co (鴻海精密) expects server revenue to exceed its iPhone revenue within two years, with the possibility of achieving this goal as early as this year, chairman Young Liu (劉揚偉) said on Tuesday at Nvidia Corp’s annual technology conference in San Jose, California. AI would be the primary focus this year for the company, also known as Foxconn Technology Group (富士康科技集團), as rapidly advancing AI applications are driving up demand for AI servers, Liu said. The production and shipment of Nvidia’s GB200 chips and the anticipated launch of GB300 chips in the second half of the year would propel
‘MAKE OR BREAK’: Nvidia shares remain down more than 9 percent, but investors are hoping CEO Jensen Huang’s speech can stave off fears that the sales boom is peaking Shares in Nvidia Corp’s Taiwanese suppliers mostly closed higher yesterday on hopes that the US artificial intelligence (AI) chip designer would showcase next-generation technologies at its annual AI conference slated to open later in the day. The GPU Technology Conference (GTC) in California is to feature developers, engineers, researchers, inventors and information technology professionals, and would focus on AI, computer graphics, data science, machine learning and autonomous machines. The event comes at a make-or-break moment for the firm, as it heads into the next few quarters, with Nvidia CEO Jensen Huang’s (黃仁勳) keynote speech today seen as having the ability to
WAIT-AND-SEE: Last month’s consumer price index came in at 2.8%, which boosts expectations that the Fed would proceed cautiously to lower inflation sustainably The US Federal Reserve is widely expected to keep interest rates unchanged at its policy meeting this week, treading carefully amid uncertainty over US President Donald Trump’s economic policies, which include spending cuts and sweeping tariffs. Since January, Trump has imposed levies on major trading partners Canada, Mexico and China, and on steel and aluminum imports, roiling financial markets and fanning fears that his plans could tip the world’s biggest economy into a recession. The Trump administration has also embarked on unprecedented cost-cutting efforts that target staff and spending, while the US president has promised tax reductions and deregulation down the road. However,
RSS