By Crystal Hsu / Journalist
State-owned Mega Financial Holding Co (兆豐 金控) said yesterday it would look to grow profits this year by maintaining its leadership position in international trade finance and expanding its retail banking business.
The company made the remarks at an annual general meeting held in a parking lot in the Linkou district of New Taipei City (林口), where shareholders approved the company’s plan to distribute a cash dividend of $ 1, NT $ 58 per share based on last year’s net income of NT $ 25. billion dollars (US $ 890.95 million), or earnings per share (EPS) of NT $ 1.84.
This suggests a payout rate of around 85 percent.
Photo courtesy of Mega Financial Holding Co
Despite the COVID-19 outbreak, Mega Financial said its main subsidiary, Mega International Commercial Bank (兆豐 銀行), recorded a 9.3% increase in foreign currency deposits last year and remained in ahead of its peers in the volume of international trade finance with an 18.6%. market share.
Foreign branches and offshore banking units contributed 56.2% of overall business, he added.
Mega Bank reported net profit of NT $ 20.33 billion, or EPS of NT $ 2.38, for last year.
The lender’s efforts to develop a second profit driver have paid off, with consumer lending increasing 16% last year, he said.
For this year, it aims to strengthen lending to small and medium-sized enterprises and seize business opportunities arising from the realignment of the electronic supply chain, he said.
Meanwhile, Mega Securities Co (兆豐 證券) saw its net income rise 42% to NT $ 1.55 billion, thanks to a bull market at home, and Mega Bills Finance Co (兆豐 票券) posted a net profit of NT $ 2.93. billion, an increase of 11.64%, according to company data.
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