case study taishin financial group n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Case Study: Taishin Financial Group PowerPoint Presentation
Download Presentation
Case Study: Taishin Financial Group

Loading in 2 Seconds...

play fullscreen
1 / 19

Case Study: Taishin Financial Group - PowerPoint PPT Presentation


  • 94 Views
  • Uploaded on

Case Study: Taishin Financial Group. Matt Bernard Nick Kaldunski Shannon O’Hern . Content Overview. Background information Taishin Financial Holding Co. Chang Hwa Bank Financial Standing Taiwan Government and China Relations Taiwan’s previous political party Time Line Loan Crisis

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Case Study: Taishin Financial Group' - tymon


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
case study taishin financial group

Case Study: Taishin Financial Group

Matt Bernard

Nick Kaldunski

Shannon O’Hern

content overview
Content Overview
  • Background information
    • Taishin Financial Holding Co.
    • Chang Hwa Bank
  • Financial Standing
  • Taiwan Government and China Relations
  • Taiwan’s previous political party
  • Time Line
  • Loan Crisis
  • Outlook on Merge
company profile taishin financial holding co
Company Profile: Taishin Financial Holding Co.
  • Established: February 2002
    • Marked the first voluntary bank merge in history
  • Profit: 2ndhighest in Taiwan
  • Goal: To be the top brand among Taiwan’s financial holding companies.
company profile taishin financial holding co1
Company Profile: Taishin Financial Holding Co.
  • Taishin lead the way in multiple business strategies
    • First Bank to:
      • Complete a voluntary bank merge
          • 1st in Taiwan’s history
      • Focus business scope into 3 core competencies
          • Retailing Banking, Wholesale Banking, and Wealth Management
company profile taishin financial holding co2
Company Profile: Taishin Financial Holding Co.
  • Notable Awards and Honors
    • Best Core Banking System Plan
        • Asian Banking & Finance
    • Best Retail Bank in Taiwan
        • Euromoney & Asian Banker
    • Most Admired Company in Taiwan Award
        • CommonWealth
    • Ranked Top 10 Asian Banks
        • Asia Risk
taishin s cis
Taishin’s CIS
  • CIS: Corporate Identity System
  • “TS” linked with a lion-like image
  • Color of Gold
company profile chang hwa bank
Company Profile: Chang Hwa Bank
  • Established: June 1905 under Japan’s governance
      • Initially called Kabushiki Kaisha Shoka Ginko
          • 1945 started to be recognized as Chang Hwa Bank
      • Celebrated it’s centennial anniversary in 2005
  • A leader the commercial bank in paid-in capital and sound financial structure
company profile chang hwa bank1
Company Profile: Chang Hwa Bank
  • January 1, 1998: CHB was officially privatized
    • Privatization is the incidence or process of transferring ownership of business from the public sector (government) to the private sector (business)
taiwan s government china relations
Taiwan’s Government & China Relations
  • Currently, Taiwan is not allowed invest in Chinese businesses
      • With the newly elected President this policy is highly expected to change
        • Taiwan's’ financial stock has gained 17% this year. Taiwan is looking forward to expanding in Chinese Banks
  • Taiwan has decreased exports to the U.S. from 49% in 1984 to 20% in 2002.
      • The majority of these exports are now going to China.
taiwan s previous political party
Taiwan’s Previous Political Party
  • Chen and his cabinet held office during 2000-2008
  • Low domestic demand has been attributed to Taiwan’s economic relations with China
      • It is estimated 1 million peopled have moved to China since many large companies are moving their operations to China.
  • “The stagnant domestic demand is chiefly due to political confusion that has kept the legislative Yaun (parliament) form functioning properly.”–David Hong, President of the Taiwan Institute of Economic Research
taiwan s previous political party1
Taiwan’s Previous Political Party
  • “The stagnant domestic demand is chiefly due to political confusion that has kept the legislative Yaun (parliament) form functioning properly.”

-David Hong, President of the Taiwan Institute of Economic Research

    • Example is the fiscal 2007 (Jan.-Dec.) budget did not pass the legislature until June 2007
timeline of merger
Timeline of Merger
  • Oct. 2005: Taishin bought 22% of Chang Hwa for $1.1 billion U.S. dollars
  • Feb. 2006: Newbridge Capital spent $844 million on 22% stake in Taishin Financial Holding
        • This deal was the largest investment in a Taiwanese financial institution by a foreign investor
timeline of merger1
Timeline of Merger
  • Sept. 2006: Fitch Rating downgrade its appraisal of Taishin due to concerns over the deteriorating asset quality of the company
    • 36% of bank’s lending portfolio consisted of high-yield unsecured consumer loans
      • This large expense led to a $3.8 billion (NT) last year
  • Oct. 2007: “The Ministry of Finance doesn’t agree with the progress of the merger”
    • -Parker Wu, fund manager at Shinkong Investment Trust
timeline of merger2
Timeline of Merger
  • June 2007: Taishin expects a NT$640 million by selling 2.5% of Chang Hwa Commercial Bank to Aegon NV
  • Taishin was ordered to sell 2.5% of Chang Hwa before June 15thdue to capital adequacy of Taishin and since the bank fell short of the required level.
    • Order was requested by Financial Supervisory Commission
timeline of merger3
Timeline of Merger
  • Dec. 2007: Taishin and Aegon NV had finalized a joint venture agreement to conduct business in life insurance and pension products.
    • This is subject to final approval by regulatory authorities
timeline of merger4
Timeline of Merger
  • Jan. 2008: Taishin Financial put forward a share-swap offer to regain a higer stake in Chang Hwa
  • Feb. 2008: Taishin withdrew share-swap offer, but still has stated its invest in obtaining the bank
loan crisis
Loan Crisis
  • 2006: loses of NTD$16.1 billion
  • 2007: net profit of US$145 million
  • Q1 of 2008: loss of 78% in net profit