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Taiwan Cooperative First Taiwanese Bank in China to See NPL

2014/04/01 | By Judy Li

Taiwan Cooperative Bank's branch in China reported non-performing loan (NPL) of NT$28 million (US$933,333) in January with NPL ratio of 0.41% as the branch's outstanding loans reached NT$6.766 billion (US$225.53 million), making Taiwan Cooperative the first Taiwanese bank in China to register bad loans after being allowed to operate there for three years.

Over the last three years Taiwanese banks in China seem to be on-track and profitable, with combined profits of NT$1.646 billion (US$54.87 million) from operations in China last year, surging year-on-year 85%.

In January Taiwan's 39 domestic banks scored pretax profits of NT$29.5 billion (US$983.33 million), a new high and up 15.7% from the corresponding figure of last year, according to the statistic released by Financial Supervisory Commission (FSC).

Among the banks, CTBC Bank, Cathay United Bank and Mega International Commercial Bank each gained profits of over NT$2 billion (US$66.67 million) in the month.

As of the end of January outstanding loans held by Taiwan's domestic banks increased by NT$352.1 billion (US$11.74 billion) from a month earlier to NT$24.015 trillion (US$800.5 billion), with NPL down NT$2.5 billion (US$83.33 million) to NT$87.4 billion (US$2.91 million), with NPL ratio dropping to 0.36% while NPL coverage ratio hitting a record high of 355.94%.

In the same period outstanding loans extended by domestic banks to small and medium enterprises amounted to NT$4.7525 trillion (US$158.42 billion) for a slight monthly decrease of NT$8.5 billion (US$283.33 million).

Last year domestic banks together raked in profits of NT$257.6 billion (US$8.59 billion) for the fourth consecutive yearly record high, with profits expected to continue growing to reach NT$300 billion (US$10 billion) this year. (JL)

Profitability of Taiwanese Banks in China in 2013
Bank

Profits (NT$M.)

Cathay United

344

First Bank

307

Mega

182

Land Bank of Taiwan

169

Hua Nan Bank

161

Chang Hwa Bank

146

Bank of Taiwan

125

Taiwan Cooperative

84

E. Sun Bank

71

CTBC

38

Taiwan Business Bank

19

Source: FSC

Profitability of Domestic Banks in January and Full Year, 2007-2014 Unit: NT$B.
Year

January

Full year

2007

8.2

38.8

2008

6.4

44.4

2009

8.2

83.9

2010

13.1

183.2

2011

17.6

200.0

2012

21.3

240.2

2013

25.5

257.6

2014

29.5

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Source: FSC