TAIPEI (Taiwan News) — Chang Hwa Commercial Bank said Wednesday that its net profit for the first quarter reached NT$4.13 billion (US$129 million).

Chang Hwa Commercial Bank Vice President Teng Hsiu-chuan (鄧秀娟) said the figure represented a 7.92% increase compared to the same period last year. The bank's financial health remains robust, with a non-performing loan ratio of 0.16%. Its loan loss coverage ratio, a measure of how much the bank has set aside to cover potential bad loans, rose to 794.87%, per CNA.

The bank reported that overseas profits made up 23.7% of earnings in the first quarter, contributing significantly to overall revenue growth. The top three markets were Hong Kong, the US, and the UK. Teng added the bank plans to establish new branches in Sydney, Toronto, and Malaysia.

Teng said the bank's loan growth reached 8.07% year-on-year. Fee income rose 11.05% from last year, mainly driven by insurance agency services and trust business.

However, the bank reported that new mortgage lending in the first quarter fell nearly 30% from the previous quarter. This decline was attributed to the Central Bank’s tighter control over total real estate lending and its credit restrictions, which have cooled the domestic housing market. The bank expects housing transaction volumes to decline this year.

Teng said the bank will increase its holdings of government bonds to maintain smooth money flow and reduce risks. For corporate clients with significant exports to the US, the bank has initiated financing support to help reduce operational risks.

While Taiwanese exporters have recently benefited from a surge in international orders due to the Trump administration’s tariff policies, the bank anticipates that these measures could cause a decline in orders for the manufacturing and technology sectors in the second half of this year.

With inflation staying low in Taiwan and growing concerns about weaker exports later this year, the bank estimates a potential interest rate cut may be considered to boost consumer spending, support investment, and reduce borrowing costs for businesses.

The bank added that the global economic outlook remains highly uncertain, with US tariffs, interest rate adjustments, and geopolitical risks continuing to influence financial markets and overall economic trends.