Company Profiles
At a Cabinet
meeting on 15th August 2007, Taiwan's premier issued instructions to begin
preparations for establishment of Taiwan Financial Holding Co. Ltd. (TFH), and
on 1st January 2008 TFH was established (in accordance with the provisions of
the Financial Holding Company Act, the Company Act, and other applicable laws
and regulations) as Taiwan's first state-run financial holding company by the
Bank of Taiwan in a share swap. On the following day (2nd January), the Bank of
Taiwan spun off its securities and life insurance businesses to create group
subsidiaries BankTaiwan Securities and BankTaiwan Life Insurance, thus bringing
into existence Taiwan's first wholly government-owned financial holding company,
with three wholly owned subsidiaries.
The "Act of the
Taiwan Financial Holding Company" (promulgated by the president on 26th November
2008, and entered into force retroactively from 1st January 2008) provided a
complete set of statutory procedures for the company's establishment, and
empowered TFH to take over other financial institutions through M&A deals in
accordance with the provisions of the " Act of the Taiwan Financial Holding
Company ".
2010 was a key year
in the global economic recovery. After getting battered by the financial
tsunami, the emerging economies of Asia drove a powerful rebound and acted as
the engine of global economic growth, while the main developed nations
experienced only sluggish growth due to a weak jobs recovery and anemic
consumption and investment. Regionally uneven development and volatility in
international commodities prices add a strong note of uncertainty to prospects
for continued economic recovery. The government here in Taiwan has been pursuing
a policy of sustainable and balanced economic development that has enabled our
country to outpace other Asian economies in achieving economic restructuring,
which has spurred private investment. Manufacturing has regained its former
strength and consumer confidence is climbing. With the implementation of the
ECFA and its Early Harvest list
,
exports and
investment serving as dual engines of economic growth, Taiwan's economy grew at
a rate of 10.88% in 2010, the fastest since 1987.
Support from the
financial system is critical to recovery in the real economy. As Taiwan's only
state-run financial holding company, Taiwan Financial Holding Co., Ltd. is
duty-bound to coordinate with the government's fiscal and economic policies by
stabilizing the financial markets, helping industries to upgrade, and building
up the nation's economic strength. We are called upon to take advantage of our
enormous resources, vast customer base, highly developed business channels, and
strength in universal banking to build up our business management capability and
tap into the synergies generated through cross-selling, improved capital
efficiency, and cost savings, thereby maximizing corporate value. Thanks to the
tireless efforts of the management team and all employees, the Taiwan Financial
Holdings group in 2010 was able to post after-tax earnings of NT$7.424 billion,
and if we add to this the burden we take on in support of government policy, our
after-tax earnings actually come to NT$16.1 billion, the second highest among
Taiwan's 15 financial holding companies. Each subsidiary achieved outstanding
sales and earnings, and won multiple awards and recognition. The Bank of Taiwan,
for instance, has been named a Gold Winner of the Reader's Digest Trusted Brands
award for banks for the past five years running. And the excellent quality of
the long-term life insurance products sold by BankTaiwan Life Insurance has
enabled the company to achieve the best 13- and 25-month persistency rates in
the industry. Meanwhile, the business performance of BankTaiwan Securities has
skyrocketed now that the group's cross-selling arrangements are yielding
results. These successes demonstrate the tremendous power and growth potential
of a state-run financial holding company.