09.28.2001
Bank SinoPac allies with National Securities

• Development: In order to strengthen its securities arm before forming a financial holding company, Bank SinoPac will forge an alliance with National Securities (6001.TT). Bank has been evaluating several brokerages including Yuanta (6004.TT) and Master Link (6006.TT). National Securities commands nearly 3.5% of Taiwan’s brokerage business.

• Analysis: We believe SinoPac will continue to seek other companies (likely insurance), in order to fully benefit from a financial holding company structure. However, we believe it will take a long time to effect complete consolidation with the subsidiaries it acquires.

• Primasia View: We have upgraded our rating for the bank on account of its aggressive expansion policy and downward correction in the share price.