Table of Contents
Investment summary................................................................3
Theme #1: Spread vs flow ......................................................3
Theme #2: Asset quality could surprise on the upside.............4
Upward earnings estimate changes .....................................5
Recommendations..................................................................5
Theme #1: Spread vs flow .......................................................7
NIM likely to recover in 2H09, albeit slowly ........................7
Flow business should benefit in the near term...........................9
Theme #2: Asset quality could surprise on the upside.......10
An update on asset quality ................................................10
Potential upside surprise in 2H09 ..........................12
Companies
Yuanta FHC.............................................................................16
Chinatrust Financial Holdings...............................................20
Fubon Financial Holdings......................................................24
Sinopac Financial Holdings...................................................28
Chang Hwa Bank ....................................................................32
First Financial Holding Co Ltd...............................................36
Shin Kong Financial Holding Company ...............................40
Cathay Financial Holdings.....................................................44
Taishin Financial Holdings ....................................................48