Alexa
  • Directory of Taiwan

Chinatrust sees 2007 profit to reach NT$17.5b

Chinatrust sees 2007 profit to reach NT$17.5b

Chinatrust Financial Holding Co., which is under investigation in Taiwan for alleged misuse of funds, expects 2007 profit of NT$17.5 billion (US$525 million), company spokesman Jason Wang said.
The profit each of the coming three quarters will be higher than in the first quarter, Wang, chief strategy officer, said at a briefing in Taipei yesterday. Chinatrust's unaudited first-quarter profit rose NT$2.64 billion from NT$824 million a year earlier. Return on equity will be about 1 percent in 2007, Wang said.
Chinatrust had a net loss of NT$10.2 billion in 2006 after it wrote off bad credit-card debt. It said in February that its 2007 profit may equal the NT$16.1 billion it earned in 2005.
The company boosted bad-loan provisions to NT$48.1 billion in 2006 from NT$13.2 billion a year earlier, it said in January. Excluding provisions, Chinatrust's pretax profit was NT$31 billion in 2006.
The bank is studying the feasibility of selling a stake in itself to foreign investors, possibly of more than 10 percent, Wang said.
The company is the subject of a government probe into its purchase of a stake in larger Mega Financial Holding Co. Three Chinatrust executives, including former Chief Financial Officer Perry Chang, were charged on February 15 with breach of trust, insider and illegal trading.
Chinatrust, which own 15.6 percent of Mega Financial, the island's second-largest financial services firm by market value, said on Jan. 24 it will sell a 3.9 percent stake. Taiwan's regulator ordered Chinatrust in July to cut its stake in Mega within 12 months because it misused funds in the purchase.


Updated : 2021-08-03 18:32 GMT+08:00