Union Bank: Focusing on sound business development, will consider mergers only after reaching a certain scale

In recent years, there has been a wave of mergers and acquisitions in Taiwan's financial sector, reshuffling the landscape of financial holding companies. The market is also watching whether banks intend to use M&A to further expand. In response, Union Bank President Hsu Wei-wen said in an interview today that in the short term, the bank will focus on the sound development of various businesses, and will consider mergers only after reaching a certain scale. Union Bank held its 115th annual general meeting of shareholders today, where it approved the 114th business report and financial statements, and passed the earnings distribution proposal, resolving to distribute 1.06 NTD per common share (0.46 NTD cash dividend, 0.6 NTD stock dividend), and approximately 2.63 NTD per share for preferred shares. Union Bank's overall performance last year was excellent, with net profit after tax reaching 6.102 billion NTD, a record high, and earnings per share (EPS) of 1.29 NTD. In core business development, benefiting from the central bank's steady monetary policy and the government's promotion of industrial upgrading and continued private investment momentum, deposits, loans, and wealth management businesses have all continued to grow. Regarding overseas expansion, the Financial Supervisory Commission (FSC) approved Union Bank's application to establish a Tokyo branch in Japan last August. Hsu said after the meeting that they are currently applying to the Japan Financial Services Agency and may have relevant interviews soon. Referring to the experience of other peers, the application process may take about one year. With frequent M&A cases in the financial sector, Union Bank currently has subsidiaries in securities, venture capital, investment trust, network communications, and leasing. Media asked if there is any intention to use M&A to complete the insurance puzzle and establish a financial holding company. Hsu stated that in the short term, they hope to focus on the sound development of various businesses, and will consider mergers only after reaching a certain scale. Facing the sharp rise in Taiwan stocks this year, Hsu mentioned that the US economy is benefiting from President Trump's "Invest in America" policy, guiding funds from various countries into the US, so the US "basically won't be bad." Coupled with the continued AI boom, and AMD CEO Lisa Su saying that AI development is "only in the 3rd inning," it shows that this area is also not bad, so basically the stock market will not be bad. Regarding Union Bank's original plan to invest in the overseas holding company of virtual asset operator MaiCoin, Modern Wealth Holdings, which was halted because the FSC deemed it not a financial-related business, Hsu explained that they originally hoped for the bank to invest to cooperate more closely with MaiCoin. In the future, they may seek investment by major shareholders to increase shareholding, and Union Bank will continue to deepen its presence in the virtual asset field, as cooperation with MaiCoin is imperative.