2845 PH Score™ and VFM Signals Are Positive

Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/union-bank-of-taiwan" target="_blank" data-smartkarma-citation="entities:16572:1" rel="noopener">Union Bank Of Taiwan (2838 TT)</a> Union Bank of Taiwan’s operating units include Banking, Trust, Wealth Management, Security Finance, Bills Finance, International Banking Department of the Head Office, Insurance Agency Department, an Offshore Banking Unit (OBU), three overseas representative offices in Hong Kong, Ho Chi Minh City and Hanoi, Vietnam, and 90 domestic branches (including the business department). Within Taiwan, Union Bank of Taiwan operates 49 branches in Greater Taipei, 18 in Taoyuan and Hsinchu, 9 in Taichung and Changhua, 6 in Chiayi and Tainan, and 8 in Kaohsiung and Pingtung.The bank balances its consumer division (59% of Loans) with a focus on mortgages with its corporate business (41% of Loans), backed by CASA funding (81%), mainly from savings accounts.The PH Score™ of Union Bank of Taiwan is favorable given amelioration in Profitability, in Efficiency, in NIM/Spread, in Capital Adequacy, and in Asset Quality. There was though some very slight erosion in some Provisioning and in Liquidity. Relative to closely matched counterparts by size*, 2838 commands better Asset Quality than its counterparts and has a more diversified Income stream by non-Interest Income/Operating Revenues though Profitability, NIM, and Efficiency ratios, while improving, are below the median as testament to the National System more than anything else.<div class="content-highlight">A FV of 6%, a PBV of 0.6x, and an Earnings Yield of 11.5% are not unattractive. These are below thresholds of 10%, 1x, and 10%, respectively. The bank commands strong fundamental momentum and value-quality characteristics as measured the PH Score™. This is not a gung-ho narrative but relatively low-risk and a stolid unglamorous proposition irrespective of political noise.</div> *Taichung Commercial, Wuxi Rural, Far Eastern, Dah sing Financial, O-Bank, Jiangsu Suzhou Rural, Jiangsu Zijin Rural, Jiangsu Zhangjinag Rural, Jiangsu Jiangyin Rural, Jilin Jiutai Rural.

Union Bank Of Taiwan (2838 TT) Union Bank of Taiwan’s operating units include Banking, Trust, Wealth Management, Security Finance, Bills Finance, International Banking Department of the Head Office, Insurance Agency Department, an Offshore Banking Unit (OBU), three overseas representative offices in Hong Kong, Ho Chi Minh City and Hanoi, Vietnam, and 90 domestic branches (including the business department). Within Taiwan, Union Bank of Taiwan operates 49 branches in Greater Taipei, 18 in Taoyuan and Hsinchu, 9 in Taichung and Changhua, 6 in Chiayi and Tainan, and 8 in Kaohsiung and Pingtung.The bank balances its consumer division (59% of Loans) with a focus on mortgages with its corporate business (41% of Loans), backed by CASA funding (81%), mainly from savings accounts.The PH Score™ of Union Bank of Taiwan is favorable given amelioration in Profitability, in Efficiency, in NIM/Spread, in Capital Adequacy, and in Asset Quality. There was though some very slight erosion in some Provisioning and in Liquidity. Relative to closely matched counterparts by size*, 2838 commands better Asset Quality than its counterparts and has a more diversified Income stream by non-Interest Income/Operating Revenues though Profitability, NIM, and Efficiency ratios, while improving, are below the median as testament to the National System more than anything else.A FV of 6%, a PBV of 0.6x, and an Earnings Yield of 11.5% are not unattractive. These are below thresholds of 10%, 1x, and 10%, respectively. The bank commands strong fundamental momentum and value-quality characteristics as measured the PH Score™. This is not a gung-ho narrative but relatively low-risk and a stolid unglamorous proposition irrespective of political noise. *Taichung Commercial, Wuxi Rural, Far Eastern, Dah sing Financial, O-Bank, Jiangsu Suzhou Rural, Jiangsu Zijin Rural, Jiangsu Zhangjinag Rural, Jiangsu Jiangyin Rural, Jilin Jiutai Rural.

Union Bank of Taiwan

2838: PH Score™ Signals Outperformance