Taipei: Standard Chartered Plc, a U.K. bank that makes most of its money in Asia, expects more profits from Taiwan this year after merging with Hsinchu International Bank.
“The combination of Standard Chartered’s business with Hsinchu Bank’s will give us greater profitability,” said James McCabe, chief executive of Standard Chartered Bank Taiwan, at a Taipei press briefing. Earnings will be helped by a recovery in consumer spending and growth in the bank’s wealth management and corporate banking operations, he said.
The London-based bank said in November it expects to finish combining its operations on the island with Hsinchu Bank’s by late 2007. Standard Chartered became the first overseas company to take over a Taiwan bank, as the government urges mergers to thin out an industry where about 40 banks and more than 300 credit associations compete for $700 billion of assets.
Hsinchu International Bank also will be renamed Standard Chartered Bank Taiwan in the second half, according to a statement from the London bank. Standard Chartered now owns 98.5% of Hsinchu Bank, the statement said, and their combined operations include 86 branches on the island.