Mega Financial eyes syndicated loan market

  • By Crystal Hsu / Staff Reporter

State-owned Mega Financial Holding Co (兆豐金控) aims to secure a leadership position in syndicated loans and attract small and medium-sized businesses amid supply chain realignment, a- he said yesterday.

The banking-focused conglomerate announced its development plans at an online investor conference.

Its main subsidiary, Mega International Commercial Bank (兆豐銀行), achieved a 23.22% market share in syndicated loans last quarter, making it the only lender with a market share above 20%. said Mega Financial Chairman David Hu (胡光華). .

Photo: Ritchie B. Tongo, EPA-EFE

He attributed the strong performance to syndicated loans with Taiwan Cement Corp (台灣水泥), Powerchip Semiconductor Manufacturing Corp (力積電) and other clients.

Mega Bank has long-term relationships with major Taiwanese companies and aims to expand its customer base to small and medium-sized enterprises, targeting green energy and supply chain finance companies, Hu said. .

In addition, the bank is looking to expand its consumer banking business into mid-single digits this year as policymakers frown on home loans that would hamper their efforts to cool the housing market, he said.

Mega Bank would instead focus on other loan products that generate a higher profit margin, he said, adding that the lender has sought to attract more retail customers by offering loan applications online.

The conglomerate will soon convene a board meeting to discuss paying dividends on last year’s net income of NT$25.73 billion (US$887.12 million), or earnings per share of NT$1.89, Hu said.

“We will try not to disappoint shareholders,” he said.

The conglomerate normally distributes cash dividends equal to 80% of the previous year’s profits.

Mega Financial identified runaway inflation and geopolitical tensions as the main risks for the year, and global monetary tightening as a positive development.

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Priscilla C. Carnegie