Mega Financial seeks to hike earnings

2020 0902 02 mega 01State-run Mega Financial Holding Co aims to reach profitability for the rest of year by boosting corporate lending, retail banking and overseas operations, company officials told an online investors’ conference on September 9.

The banking-focused conglomerate posted NT$2.67 billion (US$96.21 million) in net income for last month, with main subsidiary Mega International Commercial Bank contributing NT$2.1 billion, or 78.05%, company data showed.

Cumulative profit was NT$17.9 billion in the first eight months, or earnings per share of NT$1.32, up from NT$0.92 per share for just the first half of the year.

Overseas banking branches and outlets in the US, Australia and Cambodia gained momentum this year and might continue to be bright spots for income growth, officials said.

Net income from banking operations in Australia soared 175% in the first eight months of the year, thanks to effective virus controls in the country, officials said.

Mega Financial said it saw an opportunity to deepen lending with local semiconductor and petrochemical firms that have announced plans to invest in the US and elsewhere. The government’s promotion of renewable energy sources and a global embrace of 5G technologies would also generate loan demand, Mega Financial said.

In the meantime, Mega Bank would look for more syndicated loan opportunities to consolidate its leadership position in the market, officials said.

Domestically, Mega Bank gained significant headway in growing consumer banking, with double-digit percentage increases in mortgage operations in the past 19 months and credit card spending in the first half of the year, officials said.

Taipei Times

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