Taiwan's CTBC Financial seeks overseas revenue boost, ASEAN acquisitions

Taiwan's CTBC Financial Holding Co. Ltd said over the weekend it aims to boost banking revenue outside its crowded home market, and may seek acquisitions in member states of the Association of Southeast Asian Nations (ASEAN).

 

CTBC wants overseas banking revenue to make up 50 percent of overall income in five years, from the 36 percent its 100 overseas branches, offices and subsidiaries globally bring in now, President Daniel Wu said.

 

"ASEAN has been on our radar screen. If we do have a next overseas acquisition, it could happen in ASEAN," Wu told Reuters in Cebu, on the sidelines of a meeting of finance ministers of member states of the Asia-Pacific Economic Cooperation forum.

 

Taiwanese lenders have been urged to expand abroad by the local financial regulator as fragmented competition has led to tight profit margins. Wu said the top four home-grown banks make up only 37 percent of the market.

 

CTBC, formerly Chinatrust Financial Holding Co. Ltd., is particularly looking for opportunities in Thailand and Malaysia where there are large Taiwanese manufacturing bases, with Indonesia and the Philippines also on the list, Wu said.

 

"If an inorganic opportunity rises, it is on our radar screen, we will want to expand. It could be any format."

 

CTBC set up representative offices in Malaysia, Myanmar and Australia this year and hopes to upgrade them to branches in two years, Wu said.

 

The bank has also expanded into Asia's biggest markets. It agreed to buy the China-incorporated subsidiary of China CITIC Bank International Ltd. in May, and bought Tokyo Star Bank Ltd. in June last year.

 

It now plans to set up a Japanese desk in the Philippines where the Taiwanese lender has been operating for 20 years, to serve a growing number of manufacturers from Japan – one of the Philippines' top sources of foreign direct investment.

 

"Hopefully, we can bring more overseas financial services to Japanese clients here. Some domestic clients go to Japan and China and this is where we can help," Wu said. – Reuters