Mega Financial Fourth-Quarter Profit Falls on Investment Slump

By Janet Ong

Jan. 10 (Bloomberg) -- Mega Financial Holding Co., Taiwan’s third-largest financial company by market capitalization, had a 19 percent drop in fourth-quarter profit as the value of its investments slumped.

Net income at the Taipei-based company fell to NT$3.08 billion ($93 million), from NT$3.8 billion a year earlier. The figure was derived by subtracting nine-month profit from full- year unaudited figures the company released in a statement today.

Mega International Commercial Bank Co., its banking unit, on Dec. 1 booked losses of $6.5 million and 9.56 million euros ($12 million) on the value of overseas investments. The bank in October said it had NT$9 billion of investments linked to Lehman Brothers Holdings Inc., Merrill Lynch & Co. and American International Group Inc. and $47.3 million linked to Iceland- related financial products.

Mega Financial reported that its full-year profit fell 96 percent to NT$711 million, or NT$0.06 a share, from NT$17.1 billion, or NT$1.55 a year earlier.

To contact the reporter on this story: Janet Ong in Taipei at jong3@bloomberg.net.