Taiwan's Domestic Banks Score Record High Pretax Profits of NT$257.6B. in 2013

Taiwan's 39 domestic banks raked in pretax profits of NT$257.6 billion (US$8.59 billion) in 2013 for the fourth consecutive yearly record high, according to the statistics released by the Financial Supervisory Commission (FSC).

Of the banks, 13 saw profits exceed NT$10 billion (US$333.33 million) each, with Mega International Commercial Bank being the most profitable with profits of NT$21.9 billion (US$730 million). CTBC Bank closely followed with NT$21.5 billion (US$716.67 million) for the second highest and Cathay United Bank took the third place with corresponding NT$16.4 billion (US$546.67 million).

However, in the same year the domestic banks posted average return on equity (ROE) rate of  10.26%, lower than 2012's 10.41%; and average return on asset (ROA) rate of 0.68%, unchanged from that of the previous year.

As of the end of 2013, the domestic banks held deposits of NT$30.68 trillion (US$1.023 trillion), with loan portfolio rising a monthly  NT$214.1 billion (US$7.15 billion) to NT$23.6634 trillion (US$788.78 billion).

In the same period the non-performing loans (NPL) of the banks declined by NT$6.6 billion (US$220 million) from a month earlier to NT$89.9 billion (US$2.997 billion), with NPL ratio of 0.38%, down 0.03 of a percentage point; while the NPL coverage ratio jumping by 33.46 percentage points to 319.18%. (JL)