Taiwanese Banks See Profits from Overseas Operations Surge 60% to NT$35B. in Q1, 2014

The offshore banking units (OBUs) and overseas branches of Taiwan's domestic banks scored combined revenue of NT$126 billion (US$4.2 billion) in the first three months with pretax profits reaching NT$35 billion (US$1.17 billion), sharply up NT$13 billion (US$433.33 million) or nearly 60% from last year's corresponding NT$22 billion (US$733.33 million), according to the statistics released by the Financial Supervisory Commission (FSC).

At the end of March, the number of domestic banks' overseas footholds totaled 309, of which 223 are in the Asia-Pacific, mainly China, Hong Kong, Vietnam, and Cambodia, and 73  in North America with 63 in the United States.

In recent years Taiwanese banks have actively expanded overseas operations to gain better profits abroad. CTBC Bank, a private Taiwanese bank, has established 68 overseas footholds and seen growing proportion of profits gained by overseas branches, with such ratio in 2013 having risen more than 10% from that of the previous year.

About 70% of CTBC's overseas footholds are in Southeast Asia, including Indonesia, Singapore, Vietnam, India and the Philippines. Seeing rosy economic picture in the area, the bank intends to further reinforce strength with plans to set up a representative office in Myanmar and enhance the rep. office in Thailand. (JL)