Taiwan banks explore promise in Southeast Asia, including Malaysia

  • Banking
  • Wednesday, 25 May 2016

TAIPEI:Taiwan banks led by CTBC Financial and Fubon Financial are looking to step out of their comfort zone into newer markets in Southeast Asia, as the domestic economy slows and growth peaks for the US$1.2 trillion-asset banking sector.

In just a few weeks, CTBC Financial Holding, parent of Taiwan's biggest credit card issuer, has announced two southbound deals, agreeing to buy a 35.6 pct stake in Thailand's LH Financial Group for $469 million and RBS's Malaysia unit for $189.7 million.

These come on top of a wave of acquisitions over the past three years.

The expansion began in 2013 and is likely to accelerate over the next few years thanks to the new Taiwanese government's backing for companies to diversify away from China and venture into countries like the fast-growing Philippines.

Banking , Corporate News