Taiwanese banks find greener pastures abroad than at home

This article was published by the Taiwan Headlines on September 6, 2006. It reports that in the first half of 2006, total profits made by the overseas branches and offshore banking units (OBUs) of Taiwan's domestic banks hit a record high of NT$20.4 billion (US$618.18 million). This accounts for 56 percent of the total profits earned by these banks during the period, and exceeds those gained from their domestic operations for the first time.

Specifically, in the first half of 2006, Taiwan's domestic banks raked in pretax profits of NT$35.9 billion (US$1.09 billion). Of this total, NT$15.5 billion (US$469.7 million) came from the operations at home, NT$13.7 billion (US$415.15 million) came from OBUs, and NT$6.7 billion (US$203.03 million) came from their overseas branches.

According to industry insiders, the profits made by Taiwan's domestic banks in the first half of 2006 were significantly compromised by bad card loans. However, the overseas operations of these banks maintained steady profits, which helped to compensate for their financial woes at home.

Meanwhile, according to the Financial Supervisory Commission, the government in Taiwan will continue to draw up incentive measures, to encourage domestic banks to speed up globalization and to enhance their capability in the world market.