Fubon Bank to sustain retail deposit growth and buffers

The bank’s loan-to-deposit ratio has improved and is below the industry average.

Fubon Bank is expected to sustain robust growth in retail deposits and has sufficient liquidity as a buffer against times of stress, according to S&P Global Ratings.

“We expect FBHK to maintain its funding metrics at levels that are broadly comparable with the industry average. The bank's loan-to-deposit ratio (LDR) has improved significantly in recent years, driven by strong growth in retail deposits and a modest contraction in its loan book,” the ratings agency said.

As of end-June 2025, Fubon Bank’s LDR was 42%, down from 71% at end-2021 and below the industry average of 54%.

Its parent group is noted to be supportive of Fubon Bank in terms of funding, evident from past support during market stress such as the 2008 Global Financial Crisis, S&P said, when the parent injected equity capital and subscribed to the bank's preference shares.

“We also anticipate that the bank will sustain robust growth in retail deposits, supported by FBHK's efforts to enhance its digital banking platform and expand its retail franchise,” it said.

About 90% of Fubon Bank’s deposits are from retail depositors, which we generally view as a more stable source than corporate deposits.

However, it has a lower proportion of low-cost current and savings account deposits than the industry average, resulting in higher funding costs, S&P said.