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A. Brokerage and proprietary trading of short-term bills.
B. Certification of bills.
C. Underwriting of bills.
D. Serving as guarantor for notes/debts.
E. Brokerage of interbank loans.
F. Certification, underwriting, brokerage, and proprietary trading of financial
bonds.
G. Brokerage and proprietary trading of government bonds.
H. Proprietary trading of corporate bonds.
I. Financial advisory services to enterprises.
J. Financial derivatives as sanctioned by the Ministry of Finance.
Revenue Breakdown（Chinatrust
Bills Finance Corporation）
Expressed in Million of New Taiwan Dollars “NT$”
| Item | Amount |
Ratio % |
Net Income from bill/bond trading |
516 |
28 |
Fee Income |
101 |
6 |
Interest Income |
1,078 |
59 |
Other Income |
135 |
7 |
Total |
1,830 |
100 |
Innovative Services Being Planned:
Chinatrust Bills Finance Corporation is involved mainly in
bill and bond trading, futures on bonds and short-term
interest rates, bond options, and interest-rate swaps.
In addition to further consolidating these existing operations,
the Company is committed to developing innovative products
capable of fostering earnings growth. A summary of such
endeavors is as follows:
●Bills: In 2005, Chinatrust Bills Finance Corporation issued
bills totaling NT$126 billion and registered transactions
of NT$1.2183 trillion in the secondary market. In turn, the
Company earned a profit of NT$322.133 million from bill operations.
Amid an extended liquidity glut on the market, Chinatrust
Bills Finance Corporation is set to remain an active participant
while seeking to keep risks to a minimum.
●Outright bond purchase/sales: In 2005, Chinatrust Bills
Finance Corporation undertook trading of NT$274.1858 trillion,
accounting for a 4.02% market share. There was a profit of
NT$519.378 million for the year. As Taiwan has had a robust
market for outright purchases and sales of bonds, the Company
has been able to grow its earnings continuously. It is set
to remain an active participant going forward.
●Futures on bonds & interest rates: There has been a
growing risk of liquidity stagnation due to significant
reduction of market activities. In turn, the Company has adopted a
wait-and-see stance currently.
●Bond options: Chinatrust Bills Finance Corporation stepped
into the business in March 2005, making it a priority for
the year. As of the end of December 2005, there had been
an average monthly turnover of NT$10.5 billion. There was
a cumulative loss of NT$1.135 million for the 10-month period.
As the business expands and matures, it is expected to turn
profitable in 2006. Based on statistics released by the GreTai
Securities Market, Chinatrust Bills Finance Corporation ranked
among the island’s top five houses in terms of bond-option
turnover in 2005.
●Interest-rate swaps: Turnover in 2005 was NT$6.1
billion, incurring a loss of NT$53.538 million. As total
market turnover was hard to determine, the Company
could not readily determine its own share in the industry.
In interest-rate swaps, Chinatrust Bills Finance Corporation
adopts a strategy of pursuing price differences due to the
limited volatility that characterizes the market.
Now that bills finance companies have been permitted to deal
in securitized products, Chinatrust Bills Finance Corporation
is ready to make them a new source of revenue.