CONSERVATIVE: While its banking unit is concerned about loan quality, its insurance arm expects investment returns to decline under a low interest rate environment

Taip[ei Times
Date: May 20, 2020
By: Kao Shih-ching / Staff reporter

Cathay Financial Holding Co (國泰金控) yesterday expressed caution about lending growth this year due to concerns over loan quality amid the COVID-19 pandemic.

Cathay United Bank (國泰世華銀行), its banking arm, is focused on retaining existing clients, but would exercise more caution in approving loans to new clients, be they local or foreign currencies, Cathay Financial spokesman Daniel Teng (鄧崇儀) said.

“It is not difficult to increase corporate loans if we want to, but it is challenging to control loan quality amid the coronavirus outbreak,” he told an investors’ conference in Taipei.

Cathay United Bank reported NT$1.519 trillion (US$50.72 billion) of lending in the first quarter, down 5 percent from a year earlier due to a 2 percent dip in mortgages and a 14 percent plunge in corporate loans, it said.    [FULL  STORY]