10.03.2001
Fubon and UWCCB post mixed results

• Development: UWCCB announced accumulated EBT of NT$5.7bn, achieving 71% of our full-year earnings forecast. The bank booked more than NT$600m in provisions for bad debts in Sept., dragging down EBT in the month to NT$348m. Fubon announced EBT of NT$2.3bn, achieving 80% of our forecast, representing more than 10% growth over last year.

• Analysis: UWCCB has assumed two farmers associations fulfilling a request by the MoF. The bank will likely need to increase provisions to cover potential loan loss from the institutions. Fubon should Outperform among the newer banks due to the group’s resource consolidation.

• Primasia View: We expect a gradual improvement in UWCCB’s asset quality as the gov’ts RTC will subsidize for loan loss. We believe Fubon will continue to dominate the local banking industry due to its high profitability.