INTERVIEW/Taishin chair expects merger synergies, sets sights on overseas expansion

Taipei, May 8 (CNA) Thomas Wu (吳東亮), chairman of Taishin Financial Holding Co., expressed confidence Wednesday that the company's merger with Shin Kong Financial Holding Co. will create strong momentum and pave the way for expansion into overseas markets.

In a rare interview with the media, the usually low-profile Wu told CNA that the merger of the two financial holding companies - which will be named TS Financial Holding Co. - is expected to give the new firm the largest banking network among Taiwan's private banks.

"The merger will increase the number of branches operated by Taishin International Bank and Shin Kong Bank (the main banking units of Taishin Financial and Shin Kong Financial) to over 200 across Taiwan, forming the largest network among local private banks," Wu said.

"Once the merger is complete, consumers will be able to find TS Financial's banks in nearly every major city and county across Taiwan," Wu added.

Wu said TS Financial will also leverage its digital banking platform, Richart, to integrate with its physical branch network and offer more comprehensive services.

"Merging two strong financial brands will significantly strengthen the new company and create substantial synergies by integrating their banking, insurance and securities operations," Wu said.

In March, Taishin Financial and Shin Kong Financial received final regulatory approval from the Financial Supervisory Commission for their planned merger, which is set to be completed on July 24. The two companies first announced the deal in August 2024.

After the merger, TS Financial will become the fourth-largest financial holding company in Taiwan based on total assets.

"Taiwan is our home," Wu said. "But we are also looking ahead to the Asian market."

According to Wu, Taishin Bank has established branches or representative offices in Hong Kong, Singapore, Japan, Malaysia, Vietnam, Myanmar and China.

To support Taiwanese investors in the Philippines, Wu said the bank has applied for approval to establish a presence there.

He added that after the merger, the new company will have a larger capital base, making it possible to open sub-branches under existing overseas locations to further expand its international network.

Local news media reported that the new company will explore the possibility of expanding into the United States, Europe, and India.

The merger with Shin Kong Financial is the latest in a series of acquisitions for Taishin Financial, which has launched 13 M&A plans since the 1990s, with 10 of them successfully completed. Local news media have described Wu as Taiwan's boldest banker in terms of mergers and acquisitions.

"I wouldn't call myself the boldest banker in M&A, but I prefer to say that I know how to guide an M&A plan to success," Wu said.

Wu said Taiwan's financial sector contributes only about 6 percent to the country's gross domestic product, much lower than in Hong Kong and Singapore, so local financial institutions should work on increasing their size.

"I hope to see the first Taiwanese financial firm ranked in the top 100 in the world," Wu said. "Taishin Financial has that vision and is willing to collaborate with local counterparts to achieve this goal."

With the government aiming to transform Taiwan into an asset management hub in Asia, Wu urged financial authorities to relax regulations on financial products, the foreign exchange market, and taxation. This, he said, would encourage wealthy Taiwanese to bring their assets back to Taiwan and attract foreign capital.

To achieve its goal of becoming a regional asset management hub, Taiwan should offer attractive incentives to potential clients in order to compete with Hong Kong and Singapore.

Wu said Taishin Bank has closely monitored the wealth management business by offering private banking services at its branches in Hong Kong and Singapore.

Also known as the chairman of the Chinese National Association of Industry and Commerce, one of Taiwan's major business groups, Wu praised the government for its efforts to help Taiwanese businesses expand globally and mitigate the impact of U.S. President Donald Trump's tariff policies.

Wu said that as long as local companies expand globally faster than their foreign competitors, they are likely to gain the upper hand in the market, even amid tariff concerns.

He said Taiwan has solid economic fundamentals and that the government is in talks with the U.S. to lower the 32 percent reciprocal tariff previously proposed by Trump, so there is no need for the local business sector to worry too much.

Commenting on the recent rapid appreciation of the Taiwan dollar against the U.S. dollar, Wu said Taiwan's insurance companies tend to invest in overseas markets, so a stronger local currency poses the risk of significant foreign exchange losses.

Wu said the forex risks highlighted an unfavorable situation where Taiwanese financial firms have parked too much of their funds overseas, as Taiwan lacks attractive investment products denominated in Taiwan dollars.