Taiwanese Banks in China Score Profits of NT$2B. in 2013

So far 10 Taiwanese banks have been operating in China for over one year to have generated profits there in 2013 of US$65.8 million or about NT$2 billion, surging 123% from 2012's corresponding figure of US$29.5 million.

Of the 10 banks, two scored profits of over US$10 million each, which were Cathay United Bank and First Commercial Bank. The two banks also saw the fastest growth in profits in December of the year.

A senior executive at First Bank indicates that the high profits gained by its branch in Shanghai was due partly to the good performance of its leasing company there that has been allowed to handle renminbi businesses earlier than the branch. First Bank plans to set up its second China branch in Chengdu of Sichuan Province and will also run a leasing firm.

Cathay's branch in China focuses on corporate loans  mostly to both Taiwanese and Chinese enterprises, with the loan rates offered to the latter  usually higher than that to the former. (JL)

Profitability of Taiwanese Banks in China in 2013
Bank	Profits (US$M.)
Chang Hwa Bank (Kunshan branch)	5.1
First (Shanghai branch)	10.3
Hua Nan Bank (Shenzhen branch)	5.4
Cathay (Shanghai branch)	12.5
Land Bank of Taiwan (Shanghai branch)	8.0
Mega International Commercial Bank (Suzhou branch)	6.3
Taiwan Cooperative Bank (Suzhou branch)	5.2
Bank of Taiwan (Shanghai branch)	4.5
E. Sun Bank (Dongguan branch)	2.5
CTBC Bank (Shanghai branch)	6.0

Source: the said banks