SinoPac Financial Holdings Co (永豐金控) said yesterday it needs more time to gauge US president-elect Donald Trump’s upcoming return to the White House, which would have substantial impact on its budget and outlook for the global economy next year.
The bank-focused conglomerate shared a high degree of uncertainty at an investors’ conference yesterday, even though it posted a record profit of NT$20.2 billion (US$621 million) in the first 10 months of this year with its assets growing to NT$3.11 trillion.
“Everyone is talking about and seeking to evaluate the Trump effect,” SinoPac Financial president Stanley Chu (朱士廷) said.
Photo: Kelson Wang, Taipei Times
It is too early to pick winners and losers at this juncture and the company would gain better understanding when it delivers fourth-quarter earnings results next year, he said.
Regardless, SinoPac Financial would press ahead with the effort to speed up digital transformation, business expansion in overseas markets and improvement of customer experiences, Chu said.
In the first three quarters of this year, the company reported net profit of NT$18.5 billion, up 17.7 percent year-on-year and hitting the highest level for the same period on record.
Earnings per share were NT$1.46 for the nine-month period, the company said.
The financial holding company’s main subsidiary Bank SinoPac (永豐銀行) gained 1.8 million digital accounts in last three years and 80 percent did not have prior transactions with the lender, he said.
The new business turned profitable for three consecutive years with assets under management spiking by 80 percent, he added.
Bank SinoPac president Eric Chuang (莊銘福) pointed out that the bank has a branch in Los Angeles, California, and would lend support to Taiwanese firms with loan demand there.
Taiwanese firms could avoid higher tariffs threatened by the upcoming Trump administration by setting up manufacturing bases in the US, he said.
While US government bond yields have climbed noticeably following Trump’s electoral victory, Bank SinoPac would prefer not to adjust its holdings until things shed better clarity, Chuang said.
Foreign currency swap gains in the first three quarters of this year amounted NT$5.4 billion and Bank SinoPac expects a better chance of upside surprises when market volatility escalates, he said.
In the first three quarters, the bank posted net profit of NT$14.43 billion, up 13.7 percent year-on-year and marking the best result for the same period in the bank’s history.
The holding company’s brokerage arm SinoPac Securities Co (永豐金證券), which increased its number of customers by 20 percent during the first three quarters, also has a positive outlook for the local bourse.
It said the TAIEX may rally to 25,000 in the first half of next year before listed companies distribute their cash dividends from their year-ago earnings.
SinoPac Securities posted net profit of NT$4.54 billion, an annual increase of 48.4 percent and also the best for the same period on record, it said.
Taichung reported the steepest fall in completed home prices among the six special municipalities in the first quarter of this year, data compiled by Taiwan Realty Co (台灣房屋) showed yesterday. From January through last month, the average transaction price for completed homes in Taichung fell 8 percent from a year earlier to NT$299,000 (US$9,483) per ping (3.3m²), said Taiwan Realty, which compiled the data based on the government’s price registration platform. The decline could be attributed to many home buyers choosing relatively affordable used homes to live in themselves, instead of newly built homes in the city’s prime property market, Taiwan Realty
The government yesterday approved applications by Alphabet Inc’s Google to invest NT$27.08 billion (US$859.98 million) in Taiwan, the Ministry of Economic Affairs said in a statement. The Department of Investment Review approved two investments proposed by Google, with much of the funds to be used for data processing and electronic information supply services, as well as inventory procurement businesses in the semiconductor field, the ministry said. It marks the second consecutive year that Google has applied to increase its investment in Taiwan. Google plans to infuse NT$25.34 billion into Charter Investments Ltd (特許投資顧問) through its Singapore-based subsidiary Fructan Holdings Singapore Pte Ltd, and
Micron Technology Inc is a driving force pushing the US Congress to pass legislation that would put new export restrictions on equipment its Chinese competitors use to make their chips, according to people familiar with the matter. A US House of Representatives panel yesterday was to vote on the “MATCH Act,” a bill designed to close gaps in restrictions on chipmaking equipment. It would also pressure foreign companies that sell equipment to Chinese chipmaking facilities to align with export curbs on US companies like Lam Research Corp and Applied Materials Inc. The bill targets facilities operated by China’s ChangXin Memory Technologies Inc
Singapore-based ride-hailing and delivery giant Grab Holdings’ planned acquisition of Foodpanda’s Taiwan operations has yet to enter the formal review stage, as regulators await supplementary documents, the Fair Trade Commission (FTC) said yesterday. Acting FTC Chairman Chen Chih-min (陳志民) told the legislature’s Economics Committee that although Grab submitted its application on March 27, the case has not been officially accepted because required materials remain incomplete. Once the filing is finalized, the FTC would launch a formal probe into the deal, focusing on issues such as cross-shareholding and potential restrictions on market competition, Chen told lawmakers. Grab last month announced that it would acquire
RSS