11.02.2001
Result - October slightly up on the month

• UWCCB reported accumulated pretax earnings of NT$6bn, representing 75% of our more conservative full-year forecasts. Pre-provisional profits in Oct. hit NT$953m, a slight improvement from Sept.'s figure. NPL ratio as of 3Q01 was 6%, with 1.2% (NT$4.6bn) representing assumption of two farmer's associations. Bank indicates that related bad debts of the latter are soon to be written off with Resolution Trust Company (RTC) expected to repay 70% of possible loan losses within two months. UWCCB remains a hot acquisition target with two strategic shareholders vying for control (Lin Yuan Group and Fubon Group). Consequently, we believe the bank’s long-term prospects are quite promising.