ABN AMRO says Taiwan unit back in the black

Taipei, June 11: ABN AMRO said on Monday its Taiwan banking unit turned profitable in May, as it begins a major expansion in Asia's fourth-largest market with the acquisition of the branch network of a failed local bank.

''The worst is over for ABN AMRO in Taiwan this year,'' said Terry King, a corporate executive vice president and head of ABN AMRO's Taiwan operations, which are more than 30 years old.

He said ABN AMRO had lost money in the first four months of the year, but had moved into the profit column along with much of the rest of the industry as Taiwan's credit crunch eased.

ABN AMRO on Friday won an auction to buy the branch network of weak lender Taitung Business Bank, marking a further consolidation in Taiwan's overcrowded banking industry.

Pressure is mounting on foreign and local lenders to make acquisitions in Taiwan, Asia's fourth-biggest market, after Citigroup and Standard Chartered recently paid US$426 million and US$1.2 billion, respectively, for two Taiwan lenders.

ABN AMRO has fallen behind Citigroup and HSBC in Taiwan's wealth management market, one of the largest in Asia, as Taiwan is filled with rich executives who accumulated their fortune from their manufacturing operations in mainland China.

Reuters