Chang Hwa Commercial Bank delivered strong results in the first quarter of 2025. The bank reported a net profit of NT$4.13 billion (US$129 million). This marked a 7.92% increase from the same period last year.
The bank emphasized strong Q1 growth as a key highlight. Vice President Teng Hsiu-chuan confirmed this during a financial briefing on Wednesday.
Despite economic uncertainty, the bank maintained solid asset quality. Its non-performing loan ratio stood at just 0.16%. Additionally, its loan loss coverage ratio reached an impressive 794.87%.
Overseas operations also played a major role. Foreign markets contributed 23.7% of total earnings. The top performing regions included Hong Kong, the United States, and the United Kingdom.
Looking ahead, the bank plans to expand further. It will open new branches in Sydney, Toronto, and Malaysia. These steps aim to strengthen its global footprint.
Meanwhile, domestic operations showed mixed results. Loan growth surged by 8.07% year-on-year. Fee income also jumped 11.05%, driven by insurance services and trust operations.
However, mortgage lending faced a major drop. New loans for housing fell almost 30% compared to the previous quarter. Tighter lending rules by the Central Bank triggered this fall.
The bank expects housing transactions to keep declining this year. Real estate cooling measures continue to affect mortgage demand.
In response, Chang Hwa Bank plans to invest more in government bonds. This move ensures liquidity and reduces overall risk.
For exporters, the bank is offering targeted support. It introduced new financing tools for companies shipping to the U.S.
Despite recent gains from global demand, concerns remain. Exporters may face lower orders due to shifting U.S. trade policies.
Manufacturing and tech sectors could feel the impact later this year. This may affect overall revenue in the coming quarters.
The bank highlighted Taiwan’s low inflation as a positive. Still, weaker exports could push the Central Bank to cut interest rates.
Rate cuts may support spending, investment, and business borrowing. The bank continues to monitor these developments closely.
Geopolitical tension, tariffs, and rate changes are still major risks. The bank sees the strong Q1 growth as a buffer against these global pressures.
Despite market volatility, Chang Hwa Bank remains focused. It will prioritize strong Q1 growth strategies to maintain momentum throughout 2025.
