10.15.2001
First Commercial Bank to acquire Taisec Securities

• First Commercial Bank finally decided to acquire Taisec Securities (unlisted) which will be assumed under its financial holding company. Taisec holds a market capitalization of NT$2bn and established strength in the underwriting business. As First Commercial’s securities arm is quite small, the firm plans to continue targeting large-scale securities companies as well as insurance companies. The next step may be to absorb the latter. With more than 190 securities companies in the market, coupled with recent lows in market turnover, consolidation in the industry is imminent. Although First Commercial has been one of the most aggressive banks in forming an FHC, the firm’s deteriorating profitability and poor asset quality has left us with much concern.