Hua Nan Financial eyes expansion in operations

2021 0424 Taipei 03

2020 0902 Hua nan 01State-run Hua Nan Financial Holding Co aims to expand fee incomes, investment gains, overseas operations and lending to small and medium enterprises this year, it said on February 24.

The bank-focused conglomerate set the goal at a meeting of managers from different divisions after net income slumped to NT$8.66 billion (US$305.94 million) last year, or earnings per share of NT$0.67.

The results suggested a 48.85% retreat from earnings per share of NT$1.31 a year earlier, attributable mainly to losses at its subsidiary Hua Nan Securities Co.

The securities arm failed to reverse huge losses from March last year, when global exchanges tumbled following lockdowns and interest rate cuts introduced to ease the effects of the COVID-19 pandemic.

Hua Nan Securities finished last year with losses of NT$3.63 billion, wiping out the group’s income by NT$5.57 per share.

The main subsidiary, Hua Nan Commercial Bank, grew its lending, wealth management and other operations amid ultra-low interest rates and wild market volatility, Hua Nan Financial Holding chairman Derek Chang said.

The hostile macro-environment drove up funding costs and weighed on interest spread, but Hua Nan Bank posted net profit of NT$12.46 billion, or earnings per share of NT$1.45, Chang said.

Chang urged the bank to pursue further growth in overseas assets, investment gains, fee incomes and loans to small and medium companies. He said Hua Nan Bank should seek to improve business at its overseas branches while monitoring asset quality.

In the meantime, the state-run lender said it would support the government’s effort to shore up companies in strategically important industries.

Taipei Times

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