Profit momentum at CTBC overseas units continues to slow on bad loansOPTIMISTIC OUTLOOK: Net profit at Japanese subsidiary Tokyo Star Bank plunged 85 percent annually as net fee income halved and bad loans increased by 4.8 timesBy Kao Shih-ching / Staff reporterCTBC Bank (中信銀行) yesterday said that its overseas units’ profit momentum continued to slow last quarter, due to bad loans amid the COVID-19 pandemic, but it remains upbeat for next year in light of positive steps in vaccine development. Tokyo Star has been seeing bad loans since the second quarter, after loans to some Japanese hotels and airlines turned sour, said Chiu Ya-ling (邱雅玲), spokeswoman for CTBC Financial Holding Co (中信金控), the parent firm of CTBC Bank. Tokyo Star posted cumulative profits of NT$19 million in the first three quarters of the year, making it the fourth-largest profit generator among CTBC Bank’s overseas units, Chiu said. Their non-performing loan ratio rose to 1.12 percent as of the end of September, compared with 0.48 percent for CTBC Banks’ domestic corporate lending and 0.08 percent for the bank’s personal lending, the data showed. Overall, combined profit generated by its overseas units made up less than 20 percent of CTBC Bank’s total profit for the first three quarters, compared with 30 percent last year, Chiu said.

Source: Taipei Times November 23, 2020 15:56 UTC