08.31.2001
Taishin Bank plans to set up AMC

• Development: Taishin Commercial Bank announced plans to form an asset management service company with Lend Lease Asset Management (US). Ultimately, the bank will set up an AMC and bring it under Shin Kong’s FHC. Global assets managed under Lend Lease are nearly US$50bn.

• Analysis: Lend Lease will handle Taishin’s NT$5bn NPL in the beginning. We expect Taishin’s asset quality to gradually improve. Owing to an established history and scale of managed funds, Taishin will benefit by gaining know-how in handling NPLs.

• Primasia View: Taishin currently trades at a discount to book. We believe a higher multiple will be achieved once better asset quality is obtained.

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