09.04.2001
Fubon Commercial sitting pretty

• Development: Fubon Commercial Bank announced accumulated EBT from Jan-Aug of NT$1.98bn, achieving 77% of our full-year forecast. Taishin Int’l reported NT$1.95bn, or 68% of our forecast, but earnings were down 16% YoY.

• Analysis: Due to Taishin’s higher NPL burden, the bank has made more provisions in order to maintain its high NPL coverage of more than 50%. Fubon performed well in August. The group is calculating a share-swap ratio between the Financial Holding Company it is setting up and its subsidiaries.

• Primasia View: Fubon will announce the share-swap ratio in mid-Sept. We believe the stock has upside potential in the meantime.