Taiwan's Domestic Banks Estimated to Score Record Profits of NT$250B. in 2013

The profits of Taiwan's domestic banks reached NT$243 billion (US$8.1 billion) in the first 11 months of 2013, which may rise to NT$250 billion (US$8.33 billion) for the full year to exceed NT$240.1 billion (US$8.0 billion) achieved in 2012 to be the highest on record, according to Financial Supervisory Commission (FSC).

In 2012 return-on-equity of the domestic banks averaged at 10.41% and the return-on-asset at 0.68%, both of which are likely to be higher in 2013.

With the domestic banks seeing encouraging profits in recent years, FSC urges them to set aside more capital as required reserves to handle potential loan risks as the required reserve ratio is currently set at 1% for first-category lending.

Likewise, Taiwan's non-life insurers also achieved good performance in 2013, with combined written premium income hitting record high of NT$124.2 billion (US$4.14 billion), up 3.67% from that of 2012, and with after-tax profits estimated to be NT$13-14 billion (US$433.33-466.66 million). (JL)