Foreign banks eyeing Enterprise Bank of Hualien

November 23, 2005

Having received Financial Supervisory Commission approval for the NTD 1 billion first stage of its capital increase plan in mid October, Enterprise Bank of Hualien has begun promoting the second phase of this plan in which it intends to boost its capitalization by an additional NTD 3.8 billion by the end of 2006.

EBH has initiated this capital increase plan in order to improve its financial situation. The bank aims to increase its capitalization by a total of NTD 6-7 billion over the coming three years

Nassau Inn Investment Limited is EBH's partner in the first stage of this plan. A United States fund management firm registered in Hongkong, its investment has made it the single largest shareholder in EBH.

At least four Japanese, European and American banks that already run banking operations in Taiwan have expressed their interests in the second stage of EBH's capital increase plan.

While the bank's thirty branches are not considered numerous, half are located in the important markets of Taipei City and Taipei County. As most foreign banks in Taiwan can use single digits to count their branches, many are eyeing EBH in hopes of acquiring its branches so as to expand their operations here.

In addition to its capital increase efforts, EBH plans to merge its bank branches that are not performing well before the end of the year. The bank expects to eventually sell off fifteen branches as a result of its mergers.

(United Daily News)

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