台新金控

COVID-19 has subsided in Taiwan thanks to the Government’s preemptive actions taken against the epidemic. In keeping with this effective response, and continuing its own efforts to prevent the spread of the virus, Taishin FHC today held its 1Q20 analyst meeting online. Taishin FHC’s President Welch Lin, CFO Carol Lai, and Chief Investment Officer Eric Chien, alongside Taishin Bank’s President Oliver Shang, Wholesale Banking Group CEO Sharon Lin, and Retail Banking Group CEO Wilson Chou jointly presented at the live webcast to discuss the 1Q20 operating results.

For 1Q20, Taishin FHC reported a net income after tax of NT$2.6bn; this YoY fall of 41.9% was primarily due to MTM losses on investments, which Welch Lin attributed to pandemic-induced market volatility. The EPS was NT$0.20, the ROE was 6.19%, and the book value per common share was NT$12.86. Despite the pandemic, the markets gradually improved, and unrealized losses had largely narrowed by the end of April. In April alone, Taishin FHC’s net income after tax reached NT$1.652bn, and the EPS had increased to NT$0.34. However, in light of the turbulent situation, and given that COVID-19 still clouds the global outlook for 2020, Taishin will continue to approach the markets with caution.

Welch Lin highlighted that TFHC continued to deliver steady growth in Net Interest Income and Net Fee Income from its core businesses in 1Q20. Net Interest Income increased by 10.8% YoY, while Net Fee Income, lifted by Wealth Management fees (up by 9.8% YoY), rose by 6.4% YoY. Subsidiary Taishin Bank’s total loan growth reached 15.1% YoY, with FCY loan soaring by 22.0% YoY and total deposit growing by 11.6% YoY. The credit card business delivered steady growth both in terms of active cards and merchants served, while spending remained stable. Subsidiary Taishin Securities’ Net Fee Income jumped by 65.2% YoY, while its brokerage business’ market share continued expanding to reach record highs. Taishin maintained a strong capital position with FHC CAR at 117.6% and bank BIS at 13.9%. The Bank's asset quality remained benign with NPL% of 0.20% and coverage at 700.6%.

Welch Lin made uplifting announcements regarding the latest progress made in the area of overseas expansion. With the application for a Shanghai representative office approved by the CBRC Shanghai Office on April 20th, TSIB is one step closer to tackling the China market. Furthermore, on May 4th, the FSC approved TSIB’s application for a Thailand representative office, which will increase TSIB’s presence in the South East Asian market and strengthen the economic ties already enhanced by the Government’s New Southbound Policy. TSIB aims to provide superior cross-border financial services within the region and ramp up overseas profits with an integrated platform which will include the aforementioned representative offices in Thailand and Shanghai, the four existing branches in Hong Kong, Singapore, Tokyo, and Brisbane, and new branches still in planning in Long An, Vietnam and Labuan, Malaysia.

Welcoming the new internet-only banks set to enter the competitive and collaborative market in 3Q20, Oliver Shang reaffirmed that Richart, TSIB’s digital banking brand, continued to maintain its market-leading position. The pandemic had motivated more customers to access their finances online, as evidenced by a sharp 58% increase of TSIB’s mobile banking transaction volume when compared to 1Q19. Moreover, also compared to 1Q19, Richart’s number of applicants for loans, new drawdown amount, and number of transactions for FX and mutual fund investments had all tripled. In addition, Shang emphasized that TSIB follows the government’s initiatives and offers various relief measures to those impacted by the outbreak. To this end, TSIB offers “An-Xin-Dai” (Safe-Haven Loans) to serve SME and micro enterprises working capital financing, and it reaches out to medical professionals and affected borrowers to offer programs with lowered interest rates, payment deferral, reduced charges, fee waivers, etc. During the crisis, Taishin is living up to its commitment to be “Your Smart Partner” by softening the impacts on the financial lives of the businesses and people in our community.