07.13.2001
E. Sun records high pretax profit growth

• Development: E.Sun Bank reported 1H01 pretax profit of 1.4bn and EPS of NT$0.83. The overdue loan ratio (ODL) was maintained at a low level of 2.5%.

• Analysis: Pretax profits posted 13% YoY growth. Increasing interest spread (3.1%) and profits from bond trading were the main contributors. With less exposure to restructured debts, E Sun effectively manages its ODLs.

• Primasia View: The bank is trading at about 0.8x P/B, allowing us to maintain our recommendation on the back of sustained profits and good asset quality.

WilliamFong@Primasia.com +886-[0]2-2547-8864