LINE Bank (連線商業銀行) posted pre-tax profit for seven straight months through June 2026, and Taiwan's three digital-only banks together cut accumulated losses to NT$6.941 billion from NT$8.498 billion a year earlier. Rakuten Bank (樂天銀行) sharply reduced its losses through recapitalization, while Next Bank's (將來銀行) losses widened as it kept expanding lending.
How did LINE Bank turn around to post seven consecutive months of profit?
LINE Bank (連線商業銀行) recorded pre-tax profit every single month from December 2025 through June 2026, a run of seven consecutive profitable monthsCITE:E3. The turnaround has not yet erased its balance-sheet overhang: its accumulated losses stood at NT$3.91 billion as of June 2026, only slightly below the NT$3.988 billion recorded a year earlierCITE:E14.
How did combined losses among Taiwan's three digital-only banks change this year versus last?
The three digital-only banks' combined accumulated losses totaled NT$6.941 billion as of June 2026, down from NT$8.498 billion in the same period last yearCITE:E1CITE:E2. Broken out by bank, the trend is uneven:
| Bank | Accumulated loss, June 2026 | Accumulated loss, June 2025 |
|---|
| LINE Bank | NT$3.91 billion | NT$3.988 billion |
| Rakuten Bank | NT$333 million | NT$2.668 billion |
| Next Bank | NT$2.698 billion | NT$1.842 billion |
| Combined (3 banks) | NT$6.941 billion | NT$8.498 billion |
(LINE Bank and combined figures per CITE:E14CITE:E1CITE:E2; Rakuten Bank and Next Bank figures per CITE:E16CITE:E17.)
What is the loss situation at Rakuten Bank and Next Bank, and how does the regulator assess it?
Rakuten Bank (樂天銀行) cut its accumulated losses from NT$2.668 billion in June 2025 to NT$333 million in June 2026, while Next Bank's (將來銀行) losses widened from NT$1.842 billion to NT$2.698 billion over the same periodCITE:E16CITE:E17. Next Bank's wider losses were attributed mainly to continued operational expansion and lending buildoutCITE:E17. Wang Yun-chung (王允中), Deputy Director-General of the Financial Supervisory Commission's Banking Bureau, said both of the two loss-making digital banks have internal plans in place to improve operations, aiming to expand profit sources and move toward breakevenCITE:E18.
What do the three digital banks' capital reduction-and-increase moves reveal about their capital strategies?
All three digital-only banks have used capital reduction paired with capital increase to reset their books while adjusting paid-in capital levelsCITE:E10CITE:E11CITE:E12CITE:E15. LINE Bank reduced capital by NT$2.5 billion and raised NT$7.5 billion in June 2022, then raised a further NT$5 billion in June 2025, bringing its capital to NT$20 billionCITE:E10. Next Bank reduced and reinstated NT$2.643 billion in December 2023, keeping its paid-in capital unchanged at NT$10 billionCITE:E11. Rakuten Bank's June 2026 recapitalization is reported with two different figures: Central News Agency (CNA) put the reduction-and-increase amount at NT$2.729 billion each way, with capital held at NT$10 billionCITE:E12, while Cnyes News reported the transaction, completed on June 18, 2026, at NT$2.779 billion each way, also holding capital at NT$10 billionCITE:E15.
How do the three digital banks compare in customer base and loan-to-deposit ratios?
The three digital-only banks together had 3.4 million accounts as of June 2026, up 495,000 from a year earlierCITE:E4; a separate tally put the combined total at 3.4054 million accountsCITE:E13.
| Bank | Accounts (June 2026) | Loan-to-deposit ratio |
|---|
| LINE Bank | 2.41 million | 82.9% |
| Next Bank | ~630,000 | 75.3% |
| Rakuten Bank | 350,000 | 68.5% |
(LINE Bank per CITE:E5; Next Bank per CITE:E6; Rakuten Bank per CITE:E7.)
What progress have the digital banks made on pilot programs, and what deregulation requests are pending?
All three digital-only banks have launched offline identity verification for corporate account opening, and no pilot-business applications remain unapprovedCITE:E9. Beyond that baseline, one bank has been approved for offline mortgage collateral setup, two banks for offline handling of syndicated-loan participation, and one bank for a telecom cross-industry partnership to promote insuranceCITE:E9CITE:E19. Wang Yun-chung said the digital banks have not raised new deregulation requests recently, and as of the briefing, none had formally applied to the Financial Supervisory Commission to open a financial service kiosk — all three were still in internal evaluationCITE:E20.
How does the Banking Bureau assess LINE Bank's profit trend and the outlook for digital banks overall?
Wang Yun-chung said LINE Bank posted pre-tax profit every month from December 2025 through June 2026, and that its accumulated losses had "slightly decreased," calling it "a good sign," while noting that sustaining further profit growth "still needs time"CITE:E8.
Taken together, the cited figures show the sector's aggregate loss reduction is not evenly distributed: LINE Bank's seventh straight profitable month and Rakuten Bank's steep loss cut from NT$2.668 billion to NT$333 million pulled the three-bank combined loss down to NT$6.941 billion, even as Next Bank's losses grew from NT$1.842 billion to NT$2.698 billion during the same windowCITE:E1CITE:E2CITE:E3CITE:E16CITE:E17.