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Best Bank: Fubon Financial Holdings |
Taiwan is non-Japan Asia’s least profitable banking sector, with a market long overdue for consolidation feeling the effects of an economic slowdown more severely than its neighbours. While Taipei Fubon Bank, the main banking subsidiary of this year’s winner, Fubon Financial Holdings, reported results as modest as the rest of its peers, the group as a whole is much better placed than many of its rivals. Analysts praise Fubon’s less leveraged, more conservative approach to lending and recognize the scope of the group’s ambitions to move beyond the stagnant domestic market. The group’s acquisition of ING’s life insurance business for $600 million is well regarded, and the bank’s move onto the Chinese mainland through its 19.9% stake in Xiamen Commercial Bank bodes well for the future.
Goldman Sachs has been one of the stronger international investment banks in Taiwan since it was established there in 1991; while the local financial firms were more active in the domestic debt markets, the US firm was comfortably the best overall investment bank in a year with reduced levels of activity. Goldman Sachs was sole bookrunner for Taiwan Semiconductor Manufacturing Company’s $703 million accelerated offering of secondary shares, a difficult deal to execute given the complexities of Taiwan’s block trade system and a 10% rally in the issuer’s share price in the week preceding the deal. The firm also worked on two M&A deals: US firm Micron Technology’s increasing of its stake in Inotera Memories, and Shinsei Bank and Capital Target’s acquisition of Jih Sun Financial Holding for $280 million.
