Taiwan Domestic Banks See Record Profits of NT$214.9B. in First 10 Months

Taipei, Dec. 4, 2012 (CENS)--Taiwan's 38 domestic banks witnessed combined pretax profits hit a record high of NT$214.9 billion (US$7.16 billion) in the first 10 months, up sharply 19% YoY and exceeding the full-year gains of NT$200 billion (US$6.67 billion) recorded in 2011, according to Financial Supervisory Commission (FSC).

In 2010 the domestic banks scored profits of NT$183.2 billion (US$6.11 billion), NT$200 billion (US$6.67 billion) in 2011 and NT$214.9 billion (US$7.16 billion) in the first 10 months of this year, with return on equity (ROE) of 9% and return on asset (ROA) of 0.6%.

Insiders attribute such rising profits of domestic banks to sound performance of their offshore banking units (OBUs) and overseas branches.

As of the end of October the domestic banks held loans of NT$22.1989 trillion (US$739.96 billion) for a slight monthly increase of NT$41.6 billon (US$1.39 billion), with non-performing loans (NPLs) down NT$5.3 billion (US$176.67 million) from a month earlier to NT$108.8 billion (US$3.63 billion), with NPL ratio declining to 0.49%.

All the domestic banks saw NPL ratio below 2% and only three of them with the percentage above 1%, including Taiwan Cooperative Bank with 1.03%, Bank of Kaohsiung 1.01%, and Bank of Panshin 1.7%, as well as NPL coverage rate of above 223%.

In the first 10 months Mega International Commercial Bank posted profits of NT$20.9 billion (US$696.67 million), the highest among the domestic banks; and Chinatrust Commercial took the second place with NT$18 billion (US$600 million). Other banks with profits of over NT$10 billion (US$333.33 million) during the period included First Commercial Bank, Taipei Fubon Commercial Bank, Cathay United Bank, and Citibank (Taiwan).