Taipei, Nov. 5, 2012 (CENS)--Pretax profits of Taiwan's 38 domestic banks totaled NT$196.1 billion (US$6.54 billion) in the first nine months for a sharp annual growth of 17.5% and are expected to exceed last year's NT$200 billion (US$6.67 billion) at the end of October, according to Financial Supervisory Commission (FSC).
As of the end of September outstanding loans extended by the 38 banks amounted to NT$22.1573 trillion (US$738.58 billion), down slightly by NT$24.3 billion (US$810 million) from a month earlier, due mainly to the shrinkage of NT$31.9 billion (US$1.06 billion) in revolving credit extended to government-run enterprises and the reduction of NT$36.2 billion (US$1.21 billion) in loans offered by offshore banking units (OBUs).
In the same period the banks all witnessed low non-performing loan (NPL) ratios below 2%. Cosmos Bank sharply reduced NPL ratio to 0.81% from 6.82% recorded a month earlier after recovering during the month debts of NT$3.9 billion (US$130 million) from Prince Motor, which defaulted earlier. The bank may further lower its NPL ratio as it may redeem more debt, estimated to be NT$1.9 billion (US$63.33 million), from the company soon.
The average return on equity (ROE) rate of domestic banks is expected to exceed 10% for the year, which is believed to be the highest of its kind since 2004.
(by Judy Li)
