Taiwan Banks’ Fee Income Surges, Led by Wealth Management and Credit Cards

Taiwan Ratings said the island’s banking industry has long relied on the spread between lending and deposit rates, leaving profits vulnerable to central bank rate moves and economic cycles. A capital-market recovery in 2024 and 2025, coupled with increased consumer spending and overseas travel, boosted fee income from wealth management and credit cards. This helped raise the share of non-interest income and strengthened banks’ capacity to absorb credit losses.

The latest assessment showed that banks’ fee income grew faster than overall revenue in 2024 and 2025, driven mainly by wealth management product sales and credit card spending. Taiwan Ratings did not disclose the banking industry’s exact total fee income in the related report, but said the growth could reduce earnings sensitivity to interest-rate fluctuations and bolster resilience against risk.