TAIPEI, Oct 1
American Express is expanding in Taiwan through a tie-up with the island’s EVA Airways as foreign interest in Asia’s fourth-biggest banking market heats up.
American Express will issue a co-branded credit card on Monday with EVA, the island’s No. 2 carrier, after the U.S. company halted issuing new cards for several months last year due to mounting defaults.
Taiwan’s financial sector has become a target for major foreign banks such as Standard Chartered and private equity funds like Carlyle Group [CYL.UL] seeking acquisitions at lower multiples than elsewhere in Asia as Taiwan lenders return to profit.
Taiwan’s domestic banks had a combined pretax profit of T$47.63 billion (US$1.47 billion) from January to July, swinging from T$7.4 billion in losses for the full year of 2006, latest government data showed.
Standard Chartered recently completed its US$1.2 billion merger of a Taiwan lender, while Citigroup finished its US$436 million merger of another bank.
