Taiwan’s financial holding companies are ramping up efforts to enhance their competitiveness amid a rapidly evolving market landscape. Through a wave of mergers and acquisitions ( M&A ), these firms are not only seeking to diversify income streams but also expand foreign institutional client bases and broaden regional influence. A more aggressive M&A is emerging as a key strategy, particularly as interest income growth slows.

On August 5, Taiwan’s Financial Supervisory Commission ( FSC ) approved the merger of SinoPac Securities and CL Securities Taiwan ( CLST ). The deal, valued at NT$1.63 billion ( US$54.46 million ), will see SinoPac Securities absorbing all the assets, liabilities, and operations of CLST, with a newly established branch assuming the business. SinoPac Securities will remain the surviving entity.

CLST has a notable legacy in local financial market. Originally a Taiwan branch of Credit Lyonnais Securities Asia ( CLSA ), CLST was later integrated into Crédit Agricole Corporate and Investment Bank ( CIB ). In 2016, it was acquired by its current Taiwan-based management.

The firm has built a strong reputation as a broker focused on foreign institutional investors in Taiwan equities. In 2024, CLST reported NT$330 million in net income and a 29.8% return on equity.

The merger is expected to diversify and strengthen fee-based revenue, enhancing non-interest income through integrated brokerage, underwriting, and advisory services. SinoPac also aims to expand its foreign institutional client base and deepen brokerage services in Taiwan equities.

Other acquisitions

This latest acquisition is SinoPac’s third M&A transaction since 2024, reinforcing its aggressive growth agenda. Earlier, in May 2024, SinoPac Bank, a core subsidiary of the holding company, announced its acquisition of Amret Plc, Cambodia’s largest microfinance institution. The transaction was structured in three phases, with the initial 80% equity stake completed in early 2025 for approximately US$435 million, and the remaining 20% to be acquired over the next two years. The acquisition marked SinoPac’s first major step into the Southeast Asian financial services market.

On June 19, 2025, SinoPac received FSC approval to acquire 100% of King’s Town Bank, a Tainan-headquartered SME bank, through a share swap transaction. Each King’s Town share will be exchanged for NT$26.75 in cash and 1.15 SinoPac Holdings shares, valuing the deal at approximately NT$59.9 billion based on late 2024 closing prices. The transaction is expected to close in the fourth quarter of this year, with King’s Town becoming a wholly owned subsidiary.

The King’s Town acquisition is strategically transformative. It will increase SinoPac’s deposit market share from 3.74% to 4.24% and loan market share from 3.79% to 4.37%. The combined branch network – 66 locations from King’s Town, especially in southern Taiwan, and 125 from SinoPac, primarily in the north – will give the firm complete geographic coverage. Combined banking assets are expected to exceed NT$3 trillion, moving Bank SinoPac’s ranking from the 13th to the 12th largest bank in Taiwan by assets.

SinoPac’s stock has climbed 15% year-to-date, signalling confidence in its ability to execute complex integrations and deliver sustainable growth. SinoPac Financial Holdings ranks 7th among Taiwan’s 14 financial holding companies in terms of net income in the first half of 2025, posting a net income of NT$12.67 billion.

The group’s M&A spree comes amid a broader wave of consolidation in Taiwan’s financial industry. In March 2025, Taishin Financial completed its merger with Shin Kong Financial, forming the newly rebranded TS Holdings. The combined entity boasts total assets of NT$8.3 trillion, making it one of the largest financial holding companies in Taiwan. This trend reflects a growing imperative among major players in the sector to scale up.