Taishin and Shin Kong Merge to Form TS Financial Holding Co

Taishin Financial Holding Co and Shin Kong Financial Holding Co have officially merged, creating a new entity known as TS Financial Holding Co. This significant consolidation, announced on March 15, 2024, marks a pivotal moment in Taiwan’s financial landscape, resulting in the fourth-largest financial holding company in the region with combined assets totaling NT$8.3 trillion (approximately US$282.3 billion).

The new organization boasts more than 10 million clients, over 1 million shareholders, and a workforce of 32,000 employees. During a celebration event in Taipei, TS Financial’s chairman, Thomas Wu, emphasized that this merger transcends mere scale. He stated, “This merger is not just about scale — it is about creating a new growth engine for Taiwan’s financial sector.”

Strategic Goals and Integration Plans

TS Financial aims to integrate various sectors including banking, insurance, asset management, and securities. The legal merger takes effect immediately; however, the operational integration across the subsidiaries is expected to take up to a year as the group seeks to establish a unified platform.

This merger represents the largest friendly acquisition in Taiwan’s financial sector by transaction value, highlighting a growing trend towards consolidation within the industry. TS Financial now operates 557 branches and 5,000 ATMs, and leads the market with the most widely used digital banking platform in Taiwan.

Domestically, the company plans to consolidate Taishin International Bank Co and Shin Kong Commercial Bank Co into the largest retail banking network in the country by both branch count and digital user base. Additionally, Shin Kong Life Insurance Co, a 60-year-old subsidiary, will remain a core part of the new entity, with plans to enhance its capital strength and improve long-term policyholder protection.

Focus on International Expansion

International growth is a key priority for TS Financial. Wu stated that the group is actively exploring cross-border opportunities, aiming to align with global companies that are increasingly interested in partnerships with Taiwanese firms. He expressed confidence about the current market conditions, saying, “Now is the best time for Taiwanese firms to step out and compete internationally. Taiwan’s financial sector must achieve sufficient scale to serve as a strong and reliable backing for our businesses abroad.”

The integration process has already commenced in the asset management sector. Taishin Securities Investment Trust Co has approved a share swap to absorb Shin Kong Investment Trust Co, marking the first consolidation of subsidiaries. Taishin Trust plans to issue 53.37 million new shares to acquire Shin Kong Trust shares, with a proposed exchange ratio of 1.3342 Taishin shares for each Shin Kong share, pending regulatory approval.

Despite the optimism surrounding the merger, investor sentiment has been cautious. TS Financial’s shares fell by 6.3 percent to NT$16.3 amid concerns regarding the integration challenges and potential restructuring costs ahead.

As TS Financial moves forward, the focus will be on balancing immediate integration needs while pursuing long-term growth strategies that position the company as a formidable player on the global financial stage.