H1 Profits of Taiwanese Banks in China Double
2014/07/28 | By Judy LiProfits 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
|