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CHINATRUST Commercial Bank, Taiwan's biggest credit-card issuer, has opened a branch office offering wholesale banking services as part of aggressive expansion beyond its highly competitive home market.
James Chen, president of the bank's parent company, Chinatrust Financial Holding Co, said the fallout from the financial crisis has given the bank - backed by a broad base of retail customers in Taiwan and high levels of capital - an unprecedented opportunity to expand in the region.
The branch here will help the bank to reach customers throughout South- east Asia, India and the Middle East, he said. 'I have confidence that three to five years from now, Singapore will become a very important centre for us.'
Chinatrust Commercial invested $10 million setting up the branch here - its biggest overseas investment so far in the region. It has another 74 overseas outlets elsewhere in Asia, the Americas and Europe, including branches, representative offices and two subsidiaries - one in Indonesia and another in the Philippines.
While many banks would be wary of venturing abroad in the wake of the financial crisis, Mr Chen thinks the timing of Chinatrust Commercial's branch opening here is opportune.
'It's actually a good time for us to open a branch,' he said. 'After the financial crisis, credit became much tighter as many of the foreign banks got into trouble. We have the capacity to do more business.'
In addition, the bank has found it easier to hire since the crisis broke. 'The market slowed, so we could find very good talent in Singapore,' Mr Chen said.
Last month, the bank appointed former Standard Chartered group executive director Michael DeNoma as chairman, though the appointment is still pending approval by Taiwanese regulators.
Yesterday, Mr Chen said Mr DeNoma's 'extensive experience' in the emerging markets that are Stanchart's strength would be useful in Chinatrust Commercial's expansion overseas.
'Our main focus is China,' Mr Chen said. 'But South-east Asia is also a very good potential market for us, and we would like to increase our presence in India.
'The Singapore branch is important to us because it can provide very strong links to our businesses in other countries. Also, Singapore is an important fund- raising centre for corporates in South-east Asia.'
Asked if Chinatrust Commercial would consider mergers or acquisitions in South-east Asia, he said the bank's priority for any deals is mainland China, but 'if there's a good deal, why not'.
Lin Pao Chuan, chief executive of the Singapore branch, said it will offer corporate banking services such as business loans, trade finance and cash management services to companies in South-east Asia, India and the Middle East, as well as wealth management services to individuals.
It is also targeting Taiwanese companies and existing wealth management customers who do business in the region.
The 5,102 square metre branch on the 29th floor of OUB Centre currently has 21 staff, but Mr Lin said the bank is hiring more to beef up its corporate finance team.
Vanessa Shih, Taipei's representative in Singapore, who was at the branch opening, said trade between Singapore and Taiwan has been growing steadily, reaching $24 billion last year. That made Taiwan Singapore's ninth- largest trading partner, and Singapore Taiwan's sixth-largest.
Including Chinatrust Commercial, there are now eight banks from Taiwan with branches here.
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