...April 28, 2025 This report does not constitute a rating action. TAIPEI (S&P Global Ratings) April 29, 2025--Taipei Fubon Commercial Bank Co. Ltd. (Taipei Fubon Bank) could have a smaller buffer to maintain its strong capitalization under the bank's plan to increase its equity stake in virtual bank Line Bank Taiwan Ltd. Taipei Fubon Bank (A/Stable/A-1) has announced it will increase its equity investment in Line Bank by up to new Taiwan dollar (NT$) 1.76 billion. Line Bank is one of three virtual banks in Taiwan. We estimate the investment will erode Taipei Fubon Bank's risk adjusted capital (RAC) ratio by 5 basis points (bps)-7 bps, which would reduce the buffer for the bank to maintain its strong capitalization over the next two years. Taipei Fubon Bank continues to perform in line with our previous forecasts. The bank had net income of NT$30.41 billion in 2024, supported by the good performance of its fee income business and trading gains. The bank's non-performing loan ratio held stable...
