TS Financial Holding Co (台新新光金控) said it would take about two years before the benefits of its merger with Shin Kong Financial Holding Co (新光金控) become evident, as the group prioritizes the consolidation of its major subsidiaries.
“The group’s priority is to complete the consolidation of different subsidiaries,” Welch Lin (林維俊), president of the nation’s fourth-largest financial conglomerate by assets, told reporters during its first earnings briefing since the merger took effect on July 24.
The asset management units are scheduled to merge in November, followed by life insurance in January next year and securities operations in April, Lin said.
Photo courtesy of TS Financial Holding Co
Banking integration, initially targeted for June, is likely to be delayed due to complexities in aligning information technology systems, he said, adding that the process would only proceed once customer interests are safeguarded.
“Synergies won’t be visible any time soon, but will gradually emerge after two years,” Lin said, adding that upfront investment is unavoidable, but cost savings would materialize over time.
All employees are welcome to stay and contribute, he added.
On the operating environment, Lin said Taiwan is equipped to withstand 20 percent US tariffs, as 76 percent of its shipments to the US — mainly semiconductors, electronic components and servers — are expected to enjoy exemptions.
Traditional industries such as steel, fasteners, automobiles, bicycles and machine tools would face stronger headwinds, he said.
Lin said he remains cautiously optimistic about Taiwan’s economy, citing the Directorate-General of Budget, Accounting and Statistics’ upward revision of GDP growth to 4.45 percent for this year.
Growth could accelerate further once the government distributes NT$10,000 cash handouts per citizen later this year, he said.
Separately, state-run Mega Financial Holding Co (兆豐金控) said it plans to ramp up syndicated lending and digital finance services to maintain its position as a preferred client partner in a fast-changing financial landscape.
Mega Financial president Chang Chuang-chang (張傳章) said the group is interested in acquiring a life insurance unit, but would not act soon due to uncertainties surrounding the adoption of new accounting rules next year.
Speculation about potential deals has risen since Mercuries Life Insurance Co (三商美邦人壽) put itself up for sale earlier this year.
Chang said the New Taiwan dollar’s 10 percent gain against the US dollar last quarter would trim earnings by about 3 percent, a manageable impact.
Mega International Commercial Bank (兆豐銀行), its main unit with a focus on international financing, would help local enterprises manage foreign exchange risks, he said.
The group is also weighing new overseas offices to tap artificial intelligence supply-chain financing opportunities, while seeking growth in funding Taiwanese firms expanding into the US, cross-border financing, and foreign exchange hedging services, Chang said.
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