Top Banks in Taiwan
Taiwan’s banking was built on an integrated foundation of western style banking, consisting mainly of foreign banks’ regional divisions.
The banking sector in Taiwan began in the late 20th century, with many traditional financial institutions inherited from its colonial and commercial history.
The Central Bank of the Republic of China was established in 1924 to regulate the activities of financial institutions and banks to ensure effectiveness in enforcing government policies.
The legal frameworks of Taiwanese banks adhere to the Banking Law, the Securities Exchange Law, and the Insurance Law.
Taiwan’s banking was built on an integrated foundation of western style banking, consisting mainly of foreign banks’ regional divisions.
Domestic banks consist of 38 domestic banks with 3404 branches and 26 foreign banks with AUM (asset under management) of $11.6 Billion in the fiscal year ending 2020.
The Taiwan banking system consists of 4 main categories:
- Commercial Banks
- The postal remittances and savings banks
- Trust and loan companies
- Credit unions
NOTE
Anyone wanting to start a career in the banking sector in Taiwan should consider this list.
Top Banks in Taiwan: CTBC Bank
CTBC bank, known as the Chinatrust commercial bank, is one of the largest domestic private banks established on March 14, 1966. It was formerly known as China Securities and Investment Corporation and merged with CTBC Financial Holding Co. Ltd in 2002.
The bank is Headquartered in Taipei and has 152 branch networks nationwide and 216 overseas outlets across 14 countries and regions. As a result, CTBC has the most extensive international presence of any Taiwanese bank.
CTBC has expanded its domestic and international branch coverage networks, making itself the most recognized in the global market of all Taiwanese banks.
At the end of the 2021 fiscal year, its financial performance reported annual consolidated net revenue of NT$104.7 billion, pre-tax income of NT$35 billion, and consolidated net income attributable to the parent company of NT$29.8 billion, with a consolidated after-tax ROE of 9.47%.
In the fiscal year of 2021, CTBC reported financial performance of net revenue of NT $104.7 billion and net income of NT $35 billion and contributed significantly to its financial holding parent company. With a strong ROE of 9.47%, its financials have significantly bolstered CTBC’s dominant presence in the global market.
According to Moody’s publication on March 4, 2022, CTBC’s long-term credit rating is A1, its short-term credit rating is P-1, and it possesses a stable outlook.
Total Assets: NT (NTD) 4.88 Trillion || 2021
Hua Nan Com Bank
Hua Nan Com Bank is the third-largest bank in Taiwan regarding assets, mainly with an emphasis on providing clients with commercial banking products and services domestically.
It was established in 1919 with a capital of 10M yen. Since Hua Nan’s founding, it has remained resilient through the retrocession of Taiwan to China in 1945 and notably reduced its low-yield business operations during the economic slump in 1948.
The privatization of the Hua Nan Bank started after its issuance to dilute government shares and bonds in its equity structure, completed on January 22, 1998. On May 23, 2008, Hua Nan bank merged with Hua Nan Bills Corporation.
Most recently, Hua Nan bank set up its China subsidiary Hua Nan International Leasing Co, to further strengthen its presence in the lower mainland market.
It currently runs 186 branches in Taiwan, one offshore banking unit, and 12 overseas branches. In 2021, the bank had a net income of NT $10.38 billion. Hua Nan Commercial Bank is a subsidiary of HNFHC.
Bank of Taiwan
The Bank of Taiwan was the first government-owned bank established in 1899 during Japanese colonization. As a result, BOT experienced multiple reforms, notably in 1945, when it officially issued Taiwan dollars and assumed the role of the central bank.
Bank of Taiwan’s privatization began with separating from the ROC finance ministry, filing itself as a corporation, and following a merger acquisition deal with Taiwan Financial Holdings to become its subsidiary.
In the early stages of the 2008 financial crisis, due to increasing monetary policy pressure, BOT divided its securities trading and life insurance into its distinctive holdings to gain greater leverage in preparation for the stock market crash.
Headquartered in Taipei, the bank currently operates 163 branches within the region and ten overseas branches and has a net profit of NT $11.52 billion. In January 2008, the bank became part of the Taiwan Financial Holdings Group.
Total Assets: NTD 5.40 Trillion || 2020
Shanghai Commercial and Savings Bank
Shanghai Commercial and Savings Bank were established in 1915 by Mr. K.P Chen. The bank is headquartered in Taipei and offers commercial banking services to retail and corporate customers domestically.
Since SCSB’s inception, the bank’s philosophy of a $1 saving account, one-stop teller services, small-sum credit loan negotiations, and railway negotiations inevitably fostered SCSB’s growth within the competitive landscape with Mr. Chen’s leading innovation.
During WW2, the SCSB had to briefly shut down due to ROC’s retreat from mainland China in 1949. However, in 1965, SCSB resumed business operations with a funding capital of $15 million NT.
SCSB was the first privately owned bank from mainland China to reconcile its operation in Taiwan in 1965 and became the domestic bank to offer 24/7 ATM services in 1988.
Headquartered in Taipei, the bank has 72 domestic and 7 overseas branches in Shanghai, Shenzhen, Shanghai Pilot Free Trade Zone, London, New York, San Francisco, and Los Angeles.
Total Assets: NT $2.12 Trillion || 2021
Land Bank of Taiwan
The LBOT is a wholly state-owned bank of the Republic of China. Established in 1954, the bank provides deposits, loans, foreign exchange, fund management, and other financial services.
LBOT mainly emphasizes real estate and commercial agriculture loans, following the ROC government. It was established on the foundation to develop the nation’s economic construction in coordination with ROC economic policies.
LBOT was restructured as a state-run organization on December 21, 1998. Furthermore, on July 1, 2003, it was formally trademarked as Land Bank of Taiwan in preparation for its initial public offering on May 21, 2004.
Headquartered in Taipei, LBOT has grown into a network of 150 branches nationwide, seven overseas branches, and an international finance business branch. In the fiscal year of 2020, the bank had a net income of NT $8.64 trillion.
Taiwan Cooperative Bank
In 1913, Taiwan’s first industrial association was established during the Japanese occupation period. In 1942, it was merged into the Union of Taiwan Industrial Association and was reorganized into Taiwan Industrial Bank and Taiwan Agricultural Association.
TCB is a subsidiary of the parent Taiwan Cooperative Financial Holding Company. The bank was established in 1946, and its core business operates in the deposit and loan, funding, offshore, and trust sections.
TCB initially raised $25M NT, with an outstanding/diluted share base of 250,000 shares valued at NT$100 per EPS. Moreover, to fund Taiwan’s financial systems, the Republic of China’s government invested $15M NT in the early stage of TCB’s inception.
Specifically, it provides retail and corporate banking product and services domestically and in foreign countries through its segmented operational system.
The TCP operates 269 domestic and 21 overseas branches in Taipei, making it the most branched on the island among its competitors.
Total Assets: NT $849.9 Billion || 2020
E.SUN Commercial Bank
Established in February 1992, ESUN commercial bank has expanded into 139 domestic branches, 28 overseas branches, and subsidiaries in 9 countries by the end of the year 2020.
E.SUN’s core competencies are financial innovation, as prominently demonstrated by being capable of adopting technology and successfully implementing it to advance its business goals.
To date, E.SUN’s line of businesses has specialized in corporate banking, credit cards, loans & mortgages, wealth management, and lending services.
NOTE
In 2020, NT$16.465 billion had a net profit of NT$16.465 billion.
E.SUN Commercial Bank had Earnings per share (EPS) of NT$1.43, a Return on equity (ROE) of 9.45%, and a Return on Assets (ROA) of 0.61%.
Additionally, ESUN was listed in the Dow Jone sustainability index for the 7th consecutive year in 2020, the 6th consecutive year top 5% of the corporate governance valuation by TWSE, and is perceived as one of the top banks in the region.
Total Assets: NT $849.9 Billion || 2020
Taichung Bank
Established in April 1953, Taichung bank is a public bank headquartered in Taichung. Taichung offers retail, commercial, and corporate banking products and services domestically through its nine operational businesses.
Since Taichung’s inception, the bank’s emphasis has been on SMEs, providing small business loans in large quantities. It led its initial public offering to expand the scale of its operations and acquire new market share.
As of March 2008, Taichung raised its working capital by issuing more equity financing of NTD $5 billion to leverage its reliance on debt financing to sustain its business operations. With a net revenue of NTD $7.33 billion in the succeeding year, it exceeded investors' expectations.
The core sectors are deposit, corporate finance, personal finance, foreign exchange, wealth management, digital banking, trusts, investments, and its financial marketing commodities businesses.
Total Assets: NT $849.9 Billion || 2020
NOTE
In the fiscal year of 2021, Taichung expanded its branch network operation to overseas coverage and increased its working capital from NTD 500000 to NTD $ 45.385 billion.
First Commercial Bank
First Commercial Bank was established on November 12, 1899, as the Savings Bank of Taiwan. It became First Commercial Bank after a series of M&A in 1949, notably with the Commercial and Industrial Bank of Taiwan in 1912 as its first M&A.
FCB has rebranded itself to FCB of Taiwan with a seamless transition from a government entity to a privately held financial institution, amended on January 22, 1998.
With its operating principle of serving in the genuine interest of customers regardless of their financial conditions, its business operations had exponentially grown to gain a larger market share due to word-of-mouth marketing strategies and quality of service.
The bank is a subsidiary of First Financial Group, currently operates 188 domestic branches and 41 global branch networks, and employs over 8000 employees to fulfill the business operations needs.
As of the fiscal year 2021, the bank reported net revenue of NT $ 32,263 million and capital of NT$90.88 billion. The bank is on the list of the world’s top 250 banks in total assets and Tier 1 capital.
In the fiscal year reporting for 2021, FCB’s revenue exceeded the previous year's benchmark with NT $32263 million.
Under its AUM of NT$90.88 billion, its asset class has been classified as tier 1 in the region, making it lead among the top banks across the globe.
Total Assets: NT $358.8 billion || 2021
Citibank Taiwan
Founded in 1964, Citibank Taiwan is a subsidiary of Citibank's Overseas Investment Corporation.
Since its establishment, the bank has offered different banking services such as consumer banking, corporate banking, investment banking, and investments to institutions, consumers, and government agencies.
Citi’s smart banking initiative in 2011, i.e., the introduction of advanced mobile banking services and smart banking branches to deliver a more effective, dynamic, and comprehensive approach, led to capturing new customers.
In 2021, Citi’s Taiwan subsidiary division was recognized as 'Best International Bank in Taiwan' for its 25th year by Finance Asia in 2021, 'Best Bank – Global' for its 19th year by The Asset Triple A Country Awards 2021, and 'Best International Bank' in Taiwan by Asiamoney in 2020.
Headquartered in Taipei, the Citibank network spans the island and the globe as part of Citi’s global networks. With thousands of employees, Citibank Taiwan is considered one of the most-profitable foreign banks in the region due to its enormous reputation.
Total Assets: NT $849.9 billion || 2020
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