Overseas Operations Buoy Taiwanese Gov't-linked Banks' First-3-Quarter Results

Overseas operations of government-linked Taiwanese banks, namely First Bank, Hua Nan Bank, and Chuang Hwa Bank, all posted encouraging results in the first three quarters with respective profits of NT$12.807 billion (US$426.9 million), NT$10.758 billion (US$358.6 million) and NT$10.571 billion (US$352.37 million).

First indicates that first-eight-month profits of its overseas branches, including offshore banking unit (OBU), accounted for 42% of its total to be the  highest ever recorded.

Its OBU in Hong Kong posted the highest profits, followed closely by the one in New York. This year the bank has been focusing more on the emerging economies as Turkey and Mexico, aiming for relatively higher profits from such markets through investing in their currencies and bonds.

F. Y. Yang, president of Hua Nan, says that the bank's overseas operations contributed more than 30% of its profits posted in the first nine months, with about half  from OBUs.

In the first eight months its Hong Kong branch posted profits of about NT$500 million (US$16.67 million), the highest among its footholds abroad. The bank is focused on the Greater Chinese market but may expand into  Southeast Asia including setting up a representative office in Myanmar.

In the same period Chang Hwa also posted 30% of profits from overseas operations and also plans to establish footholds in Southeast Asia. (JL)