H1 Profits of Taiwanese Banks in China Double

Profits generated by the 10 Taiwanese banks in China reached US$52 million in the first half (H1) of the year, almost double that in 2013, with the Shanghai branch of Cathay United Bank leading with over US$10 million, for almost 20% of the total.

Last year the Taiwanese banks in China enjoyed a whopping annual growth of nearly 70% in profits, with an uptrend expected this year. Insiders attribute such ballooning profitability to mainly the further opening of the financial market there, with Taiwanese banks now allowed to serve Chinese nationals  and offer more financial products.

Last year the Taiwanese banks in China extended loans exceeding US$1 billion and this year six Taiwanese banks there are approved to operate renminbi-based business. The loans offered by the 10 Taiwanese banks in China this year have already exceeded US$2.4 billion, about 2.5 times last year's.

The interest spread of loans in China's financial market is about 3 to 6 percentage points, higher than that in Taiwan, with those on property loans, particularly for offices, usually being higher. (JL)

H1 Profits of Taiwanese Banks in China                                            Unit: US$M.
Bank	Profits at end of June	Profits at end of March
Cathay United	Over 10	Over 5
First	Nearly 7	Nearly 3
Bank of Taiwan	About 5.5	Nearly 4
Mega International Commercial Bank	Over 5	Nearly 3
Taiwan Cooperative Bank	Over 5	Nearly 2
Land Bank of Taiwan	Nearly 5	About 1.5
Chang Hwa Bank	About 4.5	Over 2
Hua Nan Bank	Over 4	Over 1
CTBC Bank	Nearly 4	Nearly 2
E. Sun Bank	Nearly 2	Nearly 1

Source: the said banks