Taiwan Financial Holdings, the state-owned financial services group, is focusing efforts to grow in the wealth management space this year after posting solid gains in 2011, local media reports show.

The country's second largest financial services firm posted a net profit of NT$3.94 billion ($133.21 million) last year, which is 11 per cent higher than its NT$3.55 billion target. Speaking to reporters at a briefing, Susan Chang, chairperson, said that overlapping business among banks has tightened competition and driven borrowing costs to lowest levels. For this year, the company will build on niche markets, specifically wealth management and syndicated loan operations.

Taiwan Financial Holdings manages the Land Bank of Taiwan, Export-Import Bank of China, BankTaiwan Securities and BankTaiwan Life Insurance. Its main source of income is Bank of Taiwan, which it acquired in 2008 as a result of the latter's merger with the other four firms. The entire group holds around 15 per cent of the country's deposit and loan market.