RETAIL BANKING | Tony Chua, Taiwan

Taiwanese financial companies post profit surge

Experts believe trend to continue amidst the possible signing of an insurance trade pact between Taiwan and China and Taiwan’s 2012 presidential elections.

Taiwan's financial institutions reported billions of Taiwan dollars in profits in the first half of the year, with Fubon Financial Holding Co. topping the list to post after-tax profits of NT$17.3 billion (US$601,655), with earnings-per-share (EPS) of NT$2.03. 

Fubon Financial Holding Co., the nation's second-largest financial service provider by assets, is expected to report an annual profit of more than NT$30 billion, as it is expected to record nearly NT$8 billion for selling its MoMo TV, a shopping channel, to Taiwan Mobile, and is estimated to receive cash dividends up to NT$6 billion. 

Meanwhile, Yuanta Financial Holding Co. posted NT$11.5 billion in profit in the first half of the year after recording nearly NT$7.5 billion in May through its sale of Kim Eng Securities. 

Following closely behind was Chinatrust Financial Holding Co., which posted NT$11.14 billion in profits, with an EPS NT$1.25, in the first half of the year. 

Most notably, Grand Cathay Securities Corp. reported after-tax profits of NT$3.04 billion for June, which was almost as high as its after-tax profit of NT$3.59 billion for the first five months of the year. 

Cathay Financial spokesman Alan Lee attributed the cause to high earnings recorded by its life insurance unit, which amounted to NT$2.84 billion for June. 

View the full story in Focus Taiwan.

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