Taiwanese banks scored record earnings of NT$155.3 B. in 2004

Taipei, Feb. 1, 2005 (CENS)--Taiwan's domestic banks experienced a banner year in earnings in 2004, raking in record pretax profits of NT$155.3 billion (US$4.57 billion at US$1 = NT$34), more than three times the corresponding figure of NT$50.4 billion (US$1.48 billion) posted in 2003, according to the statistics compiled by the Cabinet-level Financial Supervisory Commission (FSC).

Last year, domestic banks were estimated to enjoy a double-digit return on equity (ROE) rate on average, much higher than 3.52% recorded a year earlier. However, FSC indicated, a leading bank should have its ROE rate hit 15% to 20%.

Most domestic banks enjoyed considerable earnings in 2004, and only seven banks suffered losses as their profits were undermined by provisions against bad loans. Among them were Bank of Overseas Chinese, China Development Industrial Bank, Taiwan Business Bank, Medium Business Bank of Hualien District, The Chinese Bank, Bowa Bank and Chung Shing Bank.

Apart from the said seven domestic banks, eight foreign banks here also reported pretax losses, including Metropolitan Bank & Trust Co., Toronto-Dominion Bank, The Bank of East Asia Ltd, Credit Agricole Indosuez, The Standard Bank of South Africa Ltd., Union Bank of California N. A., ING Bank N.V., and Cetelem Bank.

Pretax profits earned by domestic banks
Year	Profits (NT$100M)
1994	1,015
1995	940
1996	1,051
1997	1,324
1998	1,244
1999	1,040
2000	967
2001	575
2002	-1,045
2003	504
2004	1,553

Source: FSC