Taiwan Cooperative aims to increase lending by 7% in 2022

  • By Crystal Hsu / Staff Reporter

State-owned Taiwan Cooperative Financial Holding Co (合庫金控) said yesterday it aims to increase total loans by 7% this year, after outstanding loans rose 7% last month.

It aims to maintain momentum over the rest of the year, the bank-focused group said, adding it would prioritize retirement planning and lending to urban renewal projects.

Taiwan’s main subsidiary Cooperative Bank (合庫銀行) said fee income from wealth management and credit card businesses in the first quarter fell 11.46 percent and 42.86 percent, respectively, as monetary tightening and Russia’s invasion of Ukraine weighed on investment sentiment.

The country’s largest lender by number of branches said it was aiming to strengthen its wealth management business by expanding its product line.

Taiwan Cooperative Financial said first-quarter net profit fell 6.45 percent year-on-year to NT$4.47 billion (US$150.45 million), or earnings per share of 0.32 NT dollars.

The real estate market is going through a consolidation phase, due to a spike in national COVID-19 infections and unfavorable policy measures, but would likely recover later in the year on the back of real demand, the company said. .

Land financing in the first quarter fell 1.11% from the last quarter of last year, but home loans rose 1.2%, he said.

The central bank is expected to raise its bank rate by 12.5 basis points next month unless downside risks to the domestic economy no longer loom, she said.

A rate hike of 0.25 percentage points could benefit the bank’s net interest margin by 0.055 percentage points if other factors remain unchanged, he said.

Net interest margin in the first quarter fell to 0.895%, according to company data.

Contributions from overseas branches in the first quarter climbed to 52.01% from 28.7% a quarter earlier, thanks to better asset quality and changes in accounting rules in the United States, the company said. society.

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