Record-high profits for Taishin Financial in first two quarters
By Ted Chen, The China PostTAIPEI, Taiwan -- Taishin Financial Holding Co. yesterday reported record-high results for the first two quarters of 2013, generating after-tax net income of NT$8.8 billion, while yielding earnings of NT$1.12 per share.
August 21, 2013, 12:01 am TWN
The company's results in the first half of the year markedly exceeded the NT$5.7 billion seen in the same period last year. Company management attributed the improving performance to steady growth in its core operations, including from interest and transactional fees and collection of bad debts. Earnings derived from interest reached NT$7 billion, up 4.4 percent year-on-year, while transaction fees surged by 16.6 percent from the previous period.
Throughout the period, the company maintained a return-on-equity ratio of 19 percent, and a capital adequacy ratio of 138 percent.
In the second quarter, the company's loan operations rose by 3.2 percent, recording a 1.53-percent net interest margin rating.
Earnings derived in the second quarter from interest reached NT$3.564 billion, while accumulating NT$1.985 billion in transaction fees in the second quarter, representing growths of 6.2 percent and 16.6 percent respectively.
In addition, excluding a non-recurring windfall of NT$2 billion, for liquidating the company's shareholdings on Visa and MasterCard, the company's core operations generated profits of NT$6.89 billion, up 23 percent year-on-year, marking a new record.
However, in response overwhelming market scrutiny of the company's bid to merge with Chang Hwa Bank (彰化銀行), management yesterday stated that efforts have been temporarily halted in light of the recent appointment of Tseng Ming-chung (曾銘宗) who had taken office as the chairman of the Financial Supervisory Commission (金管會). Taishin stated that it has agreed to halt its merger efforts while awaiting rulings by new leadership at the regulator. The company also urged governing bodies to render fairness and preserve the interest of its 200,000 shareholders.
Performance in the second half of the year is expected to be propelled by steady growth in lending to consumers, for home mortgages and to small- to medium-sized enterprises.
Taishin shares closed at NT$12.60, declining by NT$0.15, or 1.18 percent, at the end of yesterday's session.