FEIB eyes expansion into financial holding firm

Far Eastern International Bank (FEIB, 遠東國際商銀) yesterday said it is targeting loan growth of 4 percent this year, and has set a medium to long-term goal of transforming into a financial holding company.

The lender said it expects its financial performance this year to outpace average sector growth, driven by interest and fee income and investment gains.

The company discussed the goals during its annual general meeting, with shareholders approving plans to distribute a cash dividend of NT$0.506 and stock dividend of NT$0.506 per share, which translate into a payout ratio of 98 percent based on last year’s record income of NT$4.17 billion (US$128.87 million).

“It is difficult to set a timetable for transforming into a financial holding company, as we have to seek merger and acquisition opportunities, which are beyond the bank’s control,” FEIB president Thomas Chou (周添財) told reporters.

The bank’s total assets last year rose 7 percent to NT$792.5 billion and it had a net worth of NT$58.9 billion, meeting the entry requirement of NT$750 billion for a financial conglomerate. At the same time, its bad loan ratio declined to 0.108 percent, implying healthy assets.

Profitability gained momentum this year, with pretax profit in the first quarter surging 46 percent from a year earlier to NT$1.24 billion, company data showed. FEIB attributed the profit improvement to less volatility in the bond market and investment gains.

Like its peers, the bank would press ahead with digital transformation and make online transactions its core operations, as technology reshapes the industry, Chou said.

Online savings accounts last year soared 78 percent and made up 2 percent of overall deposits, the bank said, adding that the proportion rose to 3.5 percent in March.

FEIB’s digital platform offers one-stop services and applications to facilitate deposits and lending, and enhance customer satisfaction, company representatives said. Digital services aided the 24 percent rise in fee income in the first three months of this year from a year earlier. The lender also places great importance on corporate banking and drove its cross-border syndicated loans to more than NT$77 billion last year, company officials said.