Eight Gov't-linked Banks See NT$20B. Rise in NPLs as of August
2012/09/24 | By Judy LiTaipei, Sept. 24, 2012 (CENS)--With loan defaults by Promos Technologies, Prince Motor and Powerchip Semiconductor, Taiwan's eight government-linked banks witnessed combined rise of about NT$20 billion (US$666.67 million) in non-performing loans (NPL) in the first eight months.
The eight banks are Bank of Taiwan (BOT), Land Bank of Taiwan, Taiwan Cooperative Bank, Mega International Commercial Bank, First Commercial Bank, Hua Nan Bank, Chang Hwa Bank, Taiwan Business Bank.
Compared to NPLs recorded at the end of last year, BOT, Taiwan Cooperative, Hua Nan, and Taiwan Business all had increases of over NT$3 billion (US$100 million) in NPLs as of August. In the same period Land Bank and Taiwan Cooperative saw NPLs of NT$6.956 billion (US$231.87 million) and NT$20.214 billion (US$673.8 million), respectively, both lower than those recorded a month earlier.
Mega posted the lowest NPL ratio among the eight banks of 0.38% at the end of August and Chang Hwa the lowest NPL of NT$4.506 billion (US$150.2 million); while Taiwan Cooperative and Taiwan Business both saw NPLs exceeding 1%, with the former being 1.07% and the latter at 1.01%. Other banks with NPLs below 0.5% were Mega, Land Bank, First Commercial and Chang Hwa.
NPLs and NPL Ratio of 8 Gov't-linked Banks as of August | ||
Bank | NPLs (NT$B.) | NPL ratio (%) |
BOT | 12.662 | 0.58 |
Land Bank | 6.956 | 0.39 |
Taiwan Cooperative | 20.214 | 1.07 |
Mega | 5.68 | 0.38 |
First Commercial | 6.942 | 0.49 |
Hua Nan | 9.774 | 0.73 |
Chang Hwa | 4.506 | 0.39 |
Taiwan Business | 9.466 | 1.01 |