Cathay United Bank, the banking arm of Taiwanese finance giant Cathay Financial, has made a loss in its second quarter, Reuters has reported.
Cathay United has reported a $16.6 million loss in Q2 of the current fiscal year as a result of writing off a sizable bad debt burden that was a legacy of the nation’s recent $24.7 billion consumer credit implosion.
However, the bank is confident of returning to the black in its third quarter having achieved a 63% increase in profits in the first quarter of the financial year and because it had sustained figures in the black for the last four years despite the challenging conditions.
We saw a light at the end of the tunnel last month, boosting our hopes that we’ll be able to turn profitable in Q3, executive vice president Joseph Jao told Reuters.