Yuanta Securities (Yuanta) has come a long way since it started as a small securities brokerage in Taiwan in 1961.
The company was recently awarded FinanceAsia’s 2019’s Best Investment Bank, Best Broker, and Best ECM (Equity Capital Market) House in the Taiwan market.
Bobby Hwang, CEO, Yuanta Securities said the awards reflect the quality of service provided by Yuanta to its clients “Once again, I’m delighted that we have been recognised as Taiwan’s Best Broker, Best investment Bank and Best ECM in Taiwan, by FinanceAsia – it’s an acknowledgement that the quality of our service sets us apart from others in market,” Bobby said.
FROM DOMESTIC TO OFFSHORE EXPERTISE
The company’s transaction numbers speak for themselves.
Yuanta was bookrunner and joint bookrunner in 39 transactions worth NT$19.4 billion, equating to a 23% market share. In corporate bond and financial debenture underwriting, it has a 17.3% market share, nearly 10% ahead of its closest competitor. It is also the territory’s largest equities broker holding a dominant domestic market share, in addition to having the most extensive retail client base in Taiwan, with more than 750,000 active clients.
Having established a firm footing in the local market, the company has grown rapidly both organically and by mergers and acquisitions.
As Asia’s capital markets mature and expand, Yuanta Securities has set up offices in Hong Kong, South Korea, Vietnam, Indonesia, Thailand and Cambodia.
“After settling in the local markets, Yuanta Securities aims to increase our business with institutional investors and build connections through Yuanta’s overseas subsidiaries,” Bobby said. “This internationalisation strategy is in line with the company’s goal to be a one-stop shop for companies and individuals as the Asia-Pacific economy expands,” he said.
By 2018, 20% of the company’s total income was created by its foreign subsidiaries. Brokerage commission no longer accounts for most of its profit, with investment banking, overseas operations, and wealth management combined, making up more than 30% of its net profit.
In recent years, more than half of the financial consulting work undertaken by Yuanta involved cross-border transactions in North America and Europe.
GROWING ASIA’S WEALTH
Assets under management for its private client business climbed from NT$1.88 billion to NT$44.96 billion, growing at a compound annual growth rate of 57.4% between 2011 and 2018.
Another pillar of growth is within the company’s Investment Banking unit, which offers a range of financial services for IPOs, mergers, demergers, acquisitions, and privatisation.
As well as supporting investment capital into mainland China and Southeast Asia, Yuanta is also strongly positioned to assist businesses that are seeking to raise capital in Asian markets such as in Taiwan, South Korea, Hong Kong, Thailand, Indonesia, and Vietnam.
As the offshore securities unit of the company becomes stronger, it aims to be more active in international underwriting and financing business.
“We will continue to integrate our wealth management and investment banking services to deliver the optimal portfolio results for our clients. We want to be the go-to financial services provider for our clients and FinanceAsia’s Country Awards are a big encouragement for us,” Bobby Hwang said.
Head of Corporate Planning
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