The banking sector in Taiwan has been reported as saturated with 68 banks, 25 credit co-operatives, 60 insurance companies, and over 100 security companies. Despite the competition and oversaturation of the financial market from domestic and foreign banks as well as credit cooperatives targeting the same customers, the outlook of the banking sector of Taiwan is stable. It is also important to note that the risks of the financial industry are still reasonably high because of the structural problems and low profitability due to extreme competition. The biggest five banks in Taiwan are as follows.
1. CTBC Bank
Established in 1966, CTBC has been ranked as the largest private bank in Taiwan. It changed its name from China Securities and Investment Corporation, to become a subsidiary of CTBC Financial Holding Co. Ltd in the year 2002. Its headquarters are based in Taipei and offer employment to 11,000 professionals who execute different banking responsibilities in 150 branches in Taiwan and others numbering to 108 overseas.
The overseas branches are located in the US, Canada, Japan, Indonesia, the Philippines, India, Thailand, Vietnam, Malaysia, Hong Kong, Singapore, China, Myanmar, and Australia. The total assets of the bank stand at $120.98 billion and in 2018; the bank closed the year with a profit margin of $793.49 million.
2. Deutsche Bank
Established in 1980, the bank operates as a subsidiary of Deutsche Bank AG, providing services that include consumer loans, mortgages, foreign exchange, loans, merger and acquisition advice, securities underwriting, asset management, private banking amongst others. By the end of 2018, the banks’ revenue stood at $84.16 billion.
3. Hua Nan Com Bank
This is the third-largest bank in Taiwan in terms of assets, and it provides its clientele with commercial banking products and services not only in Taiwan but also in other countries. It was established in 1919 and runs 186 branches in Taiwan, one offshore banking unit and 12 overseas branches. In 2018 the total assets of the bank stood at $85.50 billion as well as the net profit stood at $469 million.
4. Bank of Taiwan
Established in 1946, this was the first bank owned by the government. With growth and competition, the bank now operates a subsidiary, Taiwan Financial Holdings to be able to stand the competition amongst banks in Taiwan.
The bank owns 163 branches within Taiwan, 10 overseas branches, one sub-branch, two representative offices, one offshore banking unit, and three preparatory offices. Its headquarters are in Taipei and has a total of 8,000 employees. As at the end of 2018, its total assets stood at $163.85 Billion and a net profit of approximately $606.21 million.
5. Shanghai Commercial and Savings Bank
Established in 1915, the bank is headquartered in Taipei city and offers commercial banking services to retail and corporate customers. With 69 branches, it is a source of employment to 2,400 professionals. Additionally, it has seven overseas branches in Shanghai, Shenzhen, Shanghai Pilot Free Trade Zone, London, New York, San Francisco, and Los Angeles. The net total assets of the bank in 2018 were $56.54 billion and a net profit of $7.08 million.
6. ESUN Commercial Bank
The bank founded in 1992 expanded its enterprise into 139 branches across Taiwan and 28 in Los Angeles, Hong Kong, Singapore, China, Vietnam, Myanmar, Cambodia, Australia, and Japan. It provides deposits, loans, credit card management, foreign exchange, and other services to individuals, enterprises, and various other entities. The bank’s total assets are valued at NT$1.9tr ($57bn) as of 2016.
7. Land Bank Of Taiwan
Established after the end of the Second World War in 1945 as state-owned to facilitate land policy implementation. It has since grown into 150 domestic branches and seven foreign country branches, accounting for US$91.78 billion total asset value and a net profit of US$357.82 million via a 2016 report. It provides deposits, loans, foreign exchange, fund management, and other services
8. Taipei Fubon Bank
Established as a result of a merger between Fubon Bank and Taipei Bank in 2005, it is solely owned by Fubon Financial Holdings and based in Taipei.
The bank’s operations are segmented into five sections— The Banking Business segment, The Property and Casualty Insurance Business segment, The Life Insurance Business segment, The Securities Business segment, and The Other segment. It has 127 branches and 5 overseas branches, accounting for US$218.16 billion in total assets and a net profit of US$1.66 billion reported in 2016.
9. Taiwan Cooperative Bank
Founded in 1946, it is recognized as having the most branches out of all the banks in Taiwan totaling 301 branches across the country. It provides corporate banking, retail banking, treasury management, offshore banking, E-banking, credit card, wealth management services, deposits, loans, foreign exchange services and financing services through its segmented operational system — The Deposit and Loan Section, The Funding Section, The Offshore Section, The Trust Section, and The Other segments. In 2016 the bank reported a total value of US$443.20 billion in assets and US$94.67 billion net profit.
10. Taichung Bank
Headquartered in Taichung, Taiwan, it was founded in 1953. The bank operates checks, current deposits, corporate financing, property loans, micro-credit loans, automobile loans, participating loans, deposits, investments, e-banking, property trusts, and security through nine operational businesses.
It includes The Deposit businesses, The Corporate Finance businesses, Consumer Financial businesses, Foreign Exchange businesses, Wealth Management businesses, Electronic financial businesses, Trust, Investment businesses, and Financial Commodities Marketing businesses. As of 2015, the bank reported revenue of NTD 4.14 billion and net income of NTD 3.40 billion.