Mega Bank plans to bolster mortgage operations, citing collateral benefits – About Your Online Magazine

  • By Crystal Hsu / team reporter

State-owned Mega International Commercial Bank (兆豐 銀行), the main subsidiary of Mega Financial Holding Co (兆豐 金控), said yesterday that it plans to strengthen mortgage operations this year, as the deal helps boost credit card customers and finance sales.

Lender’s mortgage operations last year increased 64 percent year-over-year to NT $ 120 billion ($ 4.24 billion), taking its retail bank to second place among domestic peers despite strong competition, he said. Mega Bank.

Mega Bank attributed the achievement to its success in targeting customers with real demand, that is, first home buyers and those in need of relocation.

Photo: Ritchie B. Tongo, EPA-EFE

Mortgage borrowers tend to have long-term relationships with banks and have shown a keen interest in the use of credit cards, mutual funds, foreign currencies and other financial products and services, Mega Bank said.

Mortgage customers accounted for NT $ 6.1 billion in fund sales last year, the largest in three years, while contributing NT $ 2.3 billion in credit card spending, the lender said, adding that 70 percent percent of mortgage customers have Mega Bank credit cards.

The central bank’s selective credit controls are favorable to the health of the mortgage market, as they require more capital for property development and multiple home purchases, the lender said.

Mega Bank said it would step up mortgage operations by increasing its number of customers aged 39 and under, adding that first-time home buyers support this group with an average loan demand of NT $ 8 million.

The lender would support the government’s program to provide young home buyers with preferential interest rates and make their online services easier to use, the bank said.

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Paula Fonseca