Overseas bank branches’ profit fallsBy Kao Shih-ching / Staff reporterCombined net profit at overseas branches of local banks declined for the third consecutive quarter to NT$10.25 billion (US$355.68 million) last quarter, affected by bad loans amid the COVID-19 pandemic, Financial Supervisory Commission (FSC) data released on Monday showed. Overseas branches this year generated less net interest income due to interest rate cuts worldwide and higher loan loss provisions amid the pandemic, the data showed. Branches there reported combined net profit rose 7.5 percent to NT$1.72 billion last quarter due to fewer bad loans, the FSC said. US branches reported a combined net loss of NT$460 million, compared with net profit of NT$1.59 billion in the third quarter last year, but net profit at branches declined 65 percent to NT$820 million, it said. Overseas branches of O-Bank Co (王道商業銀行), Chang Hwa Bank (彰化銀行) and CTBC Bank (中國信託銀行) were hardest hit, with their NPL ratios tallying 1.75, 1.71 and 1.46 percent respectively as of the end of September, the data showed.

Source: Taipei Times November 19, 2020 16:01 UTC