Taiwanese Banks Set Profit Targets for Operations in China

Taipei, May 3, 2012 (CENS)--Taiwan's eight domestic banks has recently set profit targets for operations in China, with Cathay United Bank's Shanghai branch aiming for pretax profit of US$10 million this year, and Chinatrust Commercial Bank's Shanghai branch expecting US$6 million.

In the same year Taiwan Cooperative Bank's branch in Suzhou of Jiangsu Province is expected to post pretax profits of US$5 million. T. C. Liu, chairman of Taiwan Cooperative Financial Holding Co., indicated that China's financial authorities approved in March US$50 million in short-term credit for the Suzhou branch, a 20-fold increase to last year's US$2.5 million, with the branch's approved mid- and long-term credit being only US$17 million.

The operating capital of First Commercial Bank's Shanghai branch is 300 million renminbi (RMB), which will likely soar to one billion RMB this year, and is forecast to score pretax profits of NT$169 million (US$5.63 million) by 2014.

C. N. Tsai, chairman of First Financial Holding Co., said that the First Bank's Shanghai branch inked loan contracts of nearly US$90 million soon after inauguration late December 2010, also disclosing that the bank is preparing to set up its second China branch in Chengdu and the third may be in Henan Province.

Mega International Commercial Bank is waiting for the license for its Suzhou branch with estimated operating capital of one billion RMB. Y.T. Tsia, chairman of Mega Financial Holding Co., noted that the branch is estimated to generate profits of NT$108 million (US$3.6 million) this year and NT$135 million (US$4.5 million) next year.