Taishin achieved respectable earnings growth of 16% YOY in the first quarter. Adhering to strict risk management and seizing business opportunities
Taishin FHC released its 1Q19 operational results at its analyst meeting today (7th May). Taishin reported 1Q19 net profits of NT$4.4bn, up 15.7% YOY; and EPS of NT$0.37, up 12.1% YOY. The investment and trading income posted significant growth of 61.4% YOY thanks to the global financial market’s first-quarter upswing.
Taishin FHC’s President Welch Lin, CFO Carol Lai, and CIO Eric Chien, alongside Taishin Bank’s President Oliver Shang and Wholesale Banking Group CEO Sharon Lin, jointly presented to the analysts and investors. Welch Lin attributed the 1Q19 growth to solid performance across the subsidiaries, led by Taishin Bank which delivered broad-based progress in its loans, deposits, wealth management, and credit card businesses. Year-over-year, total loan increased by 5% and total deposit grew by 9.0%. The credit card business maintained strong momentum and reported impressive growth of 24.9% YOY in spending and 26.3% YOY in gross fee income, among other expansions measured by card issuance, active cards, and number of merchants served.
Welch Lin highlighted Taishin's strong capital base as of the end of 1Q19 with FHC CAR at 119.7% and bank BIS at 14.7%. The Bank's asset quality remained benign with NPL% of 0.16% and coverage at 821.5%.
Amid fears of a reignited US-China trade war, Welch Lin reiterated concerns for the two economic powerhouses locked in further back-and-forth. This is a situation which presents a serious obstacle to reaching a long-sought deal, and which has the potential to undermine the global economy. As the trade dispute develops, Taishin braces for the wide-reaching impacts on financial markets and its clients' businesses. Taishin stands prepared with disciplined risk management and will seize opportunities to serve the overseas businesses returning to Taiwan.
In addition, Welch Lin expressed gratitude to the recognition given to Taishin's high standards of corporate governance by the Taiwan Stock Exchange Corporation (TWSE). According to the 5th Corporate Governance Evaluation recently announced by TWSE, Taishin is ranked in the top 5% of the listed companies and in the top 10% of the Finance and Insurance Sector.
Oliver Shang today elaborated on Taishin's ongoing commitment to fintech innovations, maintaining pace with the changing regulatory landscape. Facing heated competition from internet-only banks and the market's increasing demand for digitized services, Taishin continues to raise the bar with superior digital solutions. Oliver Shang drew attention to the success in business expansion via "iLoan", Taishin's online lending platform, which has proved a big hit among digitally-active customers thanks to its high efficiency. The Bank foresees good growth in credit lending via iLoan in the tax season, attracting a majority of those applying for timely payment solutions.