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First Financial Holding Co. Ltd. Annual Report 2015

May 26, 2016

52222_rns_2016-05-26_c087b6a2-161e-4975-964d-becf7e1a8a57.pdf

Annual Report

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7[th] Annual dbAccess Asia Conference 2016 FFHC 2015 Earnings Result

May 23-24, 2016 Singapore

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Disclaimer

This presentation is provided by First Financial Holding Co., Ltd. (“FFHC”). The information contained within is not reviewed or reviewed by any accountant or any independent third party. Users should read this material in conjunction with all other public financial and operational information filed to the competent authorities by FFHC. While we endeavor to provide accurate, complete and consistent information herein, FFHC makes no guarantee or warranties as to the accuracy or correctness of all the material contained. After this presentation is released to the public, we undertake no obligation to update any relevant data to reflect any change hereafter.

Users should also notice that this presentation may contain forward-looking statements. Statements that are not historical facts, including statements relating to the implementation of strategic initiatives, future business development and economic performance are forward-looking statements. By their nature, forward-looking statements involve uncertainties, risks, assumptions and other factors that could cause actual developments and results to differ materially from our statement in this presentation. These factors include, but not limited to, regulatory developments, competitive conditions, technological developments, general economic conditions and management changes.

The information, statements or opinions in this presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy any securities or financial instruments or any advice or recommendation respect to such securities or other financial instruments. First Group and all its affiliates representatives, no matter for their negligence or any other reasons, should not be liable for any loss or damages arising from the use of or interpretation by others of information contained within this presentation or any matter related to this document.

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Contents

  • Overview

  • At a Glance

  • Financial Highlight

  • Operating Results

  • Appendix

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Overview

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Overview of First Financial Holding

  • Founded in 1899, First Commercial Bank ( “ FCB ” ) stands for well-recognized franchise name, one of the “ Top Three ” commercial banks, supported by extensive branch network both domestic and overseas.

  • First Financial, formed in 2003, with First Bank as its flagship entity .

    • Strong deposit franchise and extensive network – low funding cost & high CASA rate

    • With Security, Asset management and Life Insurance subsidiary business, First Financial Holding remain keen for further expansion.

2016/2/28

  • Deposit mkt share 5.5%

  • Loan mkt share 5.5%

  • FFHC asset size Top 8

  • SME 10.83%

  • Trade Finance Top 3

  • Mutual fund sales Top 3

  • Custodian Top 1

  • Bank branches 190 domestic /34 overseas (OBU not included)

Financial Summary

$mn, except per
share amounts		 2012 2013 2014 2015
Total Revenues 36,659 36,466 34,186 40,848
Net Income 10,118 10,877 14,078 15,962
EPS 1.18 1.18 1.43 1.55
ROAE (annualized) 7.86% 7.94% 9.53% 9.32%

2015 Financial Summary

in NT$ mn
First Commercial Bank Net Income 16,100
First Securities Net Income 174
First Sec. Investment Trust Net Income 102
First-Aviva Life Insurance Net Income (90)

FFHC Ownership Profile

Government (Direct 18.94%; Indirect: 11.37%) 30.31% Other Investors: 48.02% Foreign Institution: 21.67% Data as of 2016/4/26 5

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At a Glance

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2015 Group’s Financial Highlights

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Group Net Income/EPS Trend (in NT$ mn & NT$)
Consolidated Net Income EPS
8.4%
1.55
1.43
1.18 1.18
1.01
0.96
13.4%
15,962
14,078
10,877
10,118
6,962 7,471
2010 2011 2012 2013 2014 2015
 EPS is adjusted retroactively for stock dividends.
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2015 Full Year Performance

2015 First Bank Overall Performance (YoY) : Loan book Contracted by 1.1% But NII improved 1.3% Fee income grew by 15.7% . Net income improved by 20.3%. NPL ratio stayed low at 0.19%, safe guarded by 751.03% coverage ratio

2015 Group Overall Performance (YoY): Net income grew by 13.4%. NT$23.5 bn Re-cap. project finalized in 3Q15.

Year of Spreading Overseas Presence: Xiemen Branch(China) & Vientiane Branch (at capital of Laos) opened in 2015 and two more sub-branches located at Cambodia started its business in Jan. of 2016.

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Central Bank Rate-cut Impact : Each 0.125% rate cut by Central Bank will lead to NII contraction of around NTD 180 mn/per quarter, and lowering 1-2 bps of NIM annually.

First Bank has minimal TRF market share since 2014: Ever since Lehman Brothers Structure Notes disputes in 2008, FB remained prudent in selling derivatives to our clients and fulfill KYC including TRFs. FB has booked limited m-to-m losses of NTD 55 mn for TRFs.

Mortgage Exposure and NPL: Mortgage exposure accounts for 26.7% of total loan book, Mortgage NPL ratio down to 0.18% at year end of 2015; mortgage NPL balance went to 10-month low level, average loan-to-value ratio is only 45.94%.

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2015 Financial Highlight

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2015 Key Figures


%
Key Figures ( in NT$ dollar, NT$ mn, mn shares or %)
Consolidated Net Income1
Comprehensive Income
Total Assets
EPS
Book per share
Capital Stock
ROAE
3
ROAA
3
Group CAR4
Double Leverage5
2015
15,9621
16,375
2,500,096
1.55
16.37
114,611
9.32%
0.66%
153.43%
105.23%
YoY %
13.4%
-6.4%
6.1%
8.4%
-1.6%
23.7%
-2.3%
8.1%
22.4%
-3.8%
2014
14,0781
17,497
2,355,709
1.43
16.63
92,593
9.53%
0.61%
125.34%
109.06%*
2015 Net Income Breakdown1( in NT$ mn)
%
Key Figures ( in NT$ dollar, NT$ mn, mn shares or %)
Consolidated Net Income1
Comprehensive Income
Total Assets
EPS
Book per share
Capital Stock
ROAE
3
ROAA
3
Group CAR4
Double Leverage5
2015
15,9621
16,375
2,500,096
1.55
16.37
114,611
9.32%
0.66%
153.43%
105.23%
YoY %
13.4%
-6.4%
6.1%
8.4%
-1.6%
23.7%
-2.3%
8.1%
22.4%
-3.8%
2014
14,0781
17,497
2,355,709
1.43
16.63
92,593
9.53%
0.61%
125.34%
109.06%*
Banking
NT$16,100; 100.8%
Securities
NT$174; 1.1%
Investment Trust
NT$102; 0.6%
Others
NT$(256); -1.6
Insurance
NT$(90); -0.6%
AMC
NT$(68); -0.4%

*** FFHC finalized re-cap. in Sep., 2015** .

  1. Based on the classification of specific company’s business units, financial information by business segments should be listed individually.

  2. Comprehensive Income Statement is required by IFRS.

  3. Annualized figures. 4. CAR is updated semi-annually.

  4. Double Leverage = Equity Investment / Shareholder Equity

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Net Income & Comprehensive Income

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2015 Consolidated Net Income & Comprehensive Income (in NT$ mn)
Credit (518)
Insurance 540
40,848 22 (21,894)
(3,014)
15,962 16,375
413
Net Revenue Provision Operating Income Tax Net Income Other Items Comprehensive
Expense Income
2014 Consolidated Net Income & Comprehensive Income (in NT$ mn)
Credit (4,015)
Insurance 7,101
34,186 3,086 (20,789)
(2,405)
17,497
14,078
3,420
Net Revenue Provision Operating Income Tax Net Income Other Items Comprehensive
Expense Income
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Net Income Breakdown by Subsidiaries*

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2015 FFHC Net Income Breakdown (in NT$ mn)
↑13.4%
↑20.3%
16,100
15,962
FFHC (46)
Aviva (44)
174 102 (90) (68)
First Bank First Securities FSITC First-Aviva First AMC FFHC
2014 FFHC Net Income Breakdown (in NT$ mn)
14,078
13,381
FFHC (7)
Aviva (7)
263
74 79 (15)
First Bank First Securities FSITC First-Aviva First AMC FFHC
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  • Major 5 subsidiaries were listed.

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2015 Operating Results

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FFHC & First Bank Profitability -After Tax

FFHC Net Income & ROAE (in NT$ mn & %)

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Cumulative Net Income Annualized ROAE
11.42%
10.20% 10.73% 10.52% 10.50%
9.48% 9.13% 9.53% 9.45% 9.32%
7.94%
15,962
14,078
10,877 11,705 12,018
9,293
8,205 8,108
6,361
3,655 4,109
6M 13 9M 13 2013 3M 14 6M 14 9M 14 2014 3M 15 6M 15 9M 15 2015
First Bank Net Income & ROAE (in NT$ mn & %)
Cumulative Net Income Annualized ROAE
9.84% 9.49% 10.60% 11.10% 10.60% 9.40% 10.56% 10.32% 9.60% 9.56%
8.35%
16,100
13,381
12,013
10,645 10,936
8,977
7,527 7,896
6,144
3,543 4,100
6M 13 9M 13 2013 3M 14 6M 14 9M 14 2014 3M 15 6M 15 9M 15 2015
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1.Minority interests included

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FB 2015 Pre-tax Profit
2015 Cumulative Net Revenue (in NT$ mn or %) % of FB Net Revenue(in %)
Item 2014 2015 Change
NII 72.4% 71.9% -0.5%
38,275 Net Fee 16.5% 18.7% +2.2%
37,520 Gain on ST Invest. -0.4% -0.1% +0.3%
Gain on LT invest. 1.8% 1.5% -0.3%
+2.0% Gain on fin. Products 9.2% 7.4% -1.8%
Others 0.5% 0.6% +0.1%
Total Revenue 100.0% 100.0%
2014 2015 z
Provision Expense1		 -16.4% -7.9% -8.5%
Cumulative Net Revenue Adjustment :Recovery +6.0% +6.7% +0.7%
Operating Expense -47.3% -49.0% +1.7%
FB Revenue/Expense Comparison(in NT$ mn Income Before Tax 42.3% 49.8% +7.5%
)
27,138 27,494
↑1.3%		 ↑5.7%
↑15.7% ↓ 50.9%
↓ 15.4%		 ↓14.0% 17,737 18,752
↓32.8%
6,190		 7,160 3,986 6,161
3,372
3,027		 2,240
2,554
2014 2015 2014 2015 2014 2015
20142015		 20142015 2014 2015
Net Interest Income Net Fee Income Gains on
investment
Provision Exp.1		 Recovery Operating Exp.
  1. Gross Provision Expense.

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FB 2015 Loan Book Mix

2015 2015 Loan Book1 (in NT$ bn or %)
1,503.4
1,486.5
2014
2015
Loan Book1
-1.1%		 Loan Book1 (in NT$ bn or %)
1,503.4
1,486.5
2014
2015
Loan Book1
-1.1%		 Loan Book1 (in NT$ bn or %)
1,503.4
1,486.5
2014
2015
Loan Book1
-1.1%		 Loan Book1 (in NT$ bn or %)
1,503.4
1,486.5
2014
2015
Loan Book1
-1.1%
Item
2014
2015
Change
Consumer
27.4%
28.3%
+0.9%
Mortgage
26.0%
26.7%
+0.7%
Other Consumer Loan
1.4%
1.6%
+0.2%
Corporate Banking
72.6%
71.7%
-0.9%
Commercial Loan
47.7%
49.5%
+1.8%
--- SME
39.0%
40.9%
+1.9%
F/X/ Loan
22.3%
21.8%
-0.5%
--- Overseas
10.5%
11.9%
+1.4%
Gov./SOE Loan
2.6%
0.4%
-2.2%
-2.2%
Loan Book1
100.0%
100.0%
391.5
21.0
38.5
397.5
24.7
5.5
323.4
717.5
334.9
735.5
20142015
20142015
20142015
20142015
20142015
↑ 1.5%
F/X ↓3.4%
↓85.7%
2015 Loan Book1 Breakdown(in NT$ bn )
Mortgage
Other Consumer
Loan
Gov./SOE Loan
Commercial
Loan
F/X Loan
SME2
585.5
SME2
608.2
Overseas
157.1
SME↑3.9%
Overseas
176.2
Overse
↑ 12.2
↑ 17.6%
Commercial Loan
↑ 2.5%

  1. Loan Book does not include NALs

  2. SME as defined by the “Act for Development of Small & Medium Enterprises; both NTD & Foreign currency loan included

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FB Loan Breakdown

-QoQ Comparison

FB Loan Growth(in NT$ bn) FB Loan Growth(in NT$ bn) FB Loan Growth(in NT$ bn) FB Loan Growth(in NT$ bn) QoQ% YoY%
+1.8%
+1.5%
+8.8%
+17.6%
+17.9%
-3.5%
+4.8%
+3.9%
-3.9%
-3.4%
-79.7%
-85.7%		 QoQ% YoY%
+1.8%
+1.5%
+8.8%
+17.6%
+17.9%
-3.5%
+4.8%
+3.9%
-3.9%
-3.4%
-79.7%
-85.7%		 QoQ% YoY%
+1.8%
+1.5%
+8.8%
+17.6%
+17.9%
-3.5%
+4.8%
+3.9%
-3.9%
-3.4%
-79.7%
-85.7%
~~41.9~~
~~38.5~~
~~37.8~~
~~10.7~~
~~27.0~~
~~5.5~~
330.9
334.9
319.1
319.9
336.5
323.4
571.9
585.5
568.5
573.8
580.4
608.2
133.0
132
118.4
113.4
108.0
127.3
19.6
21.0
20.8
21.7
22.7
24.7
391.1
391.5
388.5
388.9
390.6
397.5
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
Gov/SOE
SME
Mortgage
Commercial
Loan
1488.4
1503.4
1453.0
1428.4
1465.1
1486.5
F/X loan
Total loan
Other Con.
Loan
Large		 QoQ% YoY%
+1.8%
+1.5%
+8.8%
+17.6%
+17.9%
-3.5%
+4.8%
+3.9%
-3.9%
-3.4%
-79.7%
-85.7%
319.9
336.5
573.8
580.4
113.4
108.0
21.7
22.7
388.9
390.6
247
397.5		 +1.8% +1.5%
388.9
+8.8% +17.6%
113.4
21.7		 127.3
.		 +17.9% -3.5%
573.8 608.2 +4.8% +3.9%
319.9 323.4 -3.9% -3.4%
-79.7% -85.7%
~~.~~
~~.~~
~~.~~
3Q14
4Q14
1Q15		 ~~10.7~~
~~27.0~~
2Q15
3Q15		 ~~5.5~~
4Q15

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FB 2015 LDR, SPREAD &NIM

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Total Loan & LDR (in NT$ bn or % ) Total Loan [1] LDR [2]
86.54%
84.51% 84.49%
83.50% 83.48% 83.03%
80.21%
78.55% 77.94%
76.88%
1,447.7 1,439.9 1,470.6 1,470.9 1,491.8 1,507.1 1,456.2 1,431.1 1,468.0 1,489.5
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
△
Loan-Deposit Spread / NIM ( in % ) Spread [3] NIM [3]
1.60% 1.62% 1.61% 1.63%
1.54% 1.55% 1.55% 1.55% 1.55% 1.55%
1.28% 1.28% 1.28% 1.28% 1.29% 1.28%
1.26% 1.26% 1.25% 1.26%
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
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  1. Total Loan = loan + import/export negotiation + NALs

  2. LDR = Total loan / Total deposit, starting from 2012, total deposit does not include structured deposit.

  3. Annual cumulative Average Spread and NIM

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FB 2015 Loan Yields

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FB NTD Yields & Costs Overview ( in % ) Interest Spread (NTD)
Deposit Rate (NTD) Lending Rate (NTD) 1.62%
1.60%
1.59% 1.59% 1.60%
1.56%
2.16% 2.20% 2.18% 2.18% 2.19% 2.18%
0.60% 0.60% 0.59% 0.59% 0.59% 0.56%
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
FB FX Yields & Costs Overview ( in % ) Deposit Rate (FX) Lending Rate (FX) 1.91%
Libor
Interest Spread (FX) 1.72%
1.59% 1.65% went up
1.59%
1.45%
2.74%
2.51% 2.52% 2.57%
2.31%
2.29%
0.92% 0.84% 0.88% 0.85% 0.83%
0.72%
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
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All rates are QUARTERLY* average rates.

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Major Exposures Breakdown

End of 2015 - % of Loan to Industries 5.77% 12.11% 11.51% 5.14% 5.41% Manufacturing; 26.09% 2015 (clockwisely) 8.38% Total Exposures* 5.24% Petro. Metal 3.38% $1,584.6 bn Tech. 3.95% Machinery Other manufacturing 6.71% Individual(Mortgage included) Construction Real Estate Wholesale/Retail 32.40% Transportation&Warehousing Others

  • Total exposures includes direct and indirect loans.

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FB 2015 Mortgage Book

2015 Mortgage by Location(in %)
Location
Loan%
NPL Ratio
North
69%
0.19%
TPE Metro
53%
0.22%
Taoyuan/Hsinchu/
16%
0.08%
Central
11%
0.21%
Taichung
South
16%
0.11%
Tainan/Kaohsiung
East
4%
0.07%
Total
100.00%
0.18%
Location
Loan%
NPL Ratio
North
69%
0.19%
TPE Metro
53%
0.22%
Taoyuan/Hsinchu/
16%
0.08%
Central
11%
0.21%
Taichung
South
16%
0.11%
Tainan/Kaohsiung
East
4%
0.07%
Total
100.00%
0.18%
↑4.3%
↑17.2%
SME2
317.0
SME2
305.0
Monthly New Mortgage Lending
Monthly New Mortgage Lending(in NT$mn)
7,086
5,645
3,937
5,513
5,638
5,749
6,437
6,926
5,441
5,944
5,823
6,697
11,506
YoY% +62.4
12M14
1M15
2M15
3M15
4M15
5M15
6M15
7M15
8M15
9M15
10M15
11M15
12M15

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FB 2015 Fee Income Breakdown

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2015 Cumulative Net Fee Income (in NT$ mn or %) % of Cumulative Net Fee
Item 2014 2015 Change
WM [1 ] 49.8% 54.4% +4.6%
7,160 F/X 15.2% 12.6% -2.6%
6,190 +15.7%
Other [2] 13.8% 12.1% -1.7%
Loan-related 15.0% 15.0% 0.0%
2014 2015 Credit Card 6.2% 5.9% -0.3%
Cumulative Net Fee 100.0% 100.0%
Net Fee Income
2015 Cumulative Net Fee Breakdown ( in NT$ mn )
↑26.3%
3,895
3,083
↑16.2%
↓4.2% ↑9.3% ↑ 1.3%
↓ 23.7% 1,077
927 940 901 865
422 854
386
↑3.0%
2014 2015 2014 2015 2014 2015 2014 2015 2014 2015
WM Fee [1] Loan-related F/X Credit Card Other [2]
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  1. WM Fee = Custodian Fee + Trust-related Fee + Bancassurance Fee

  2. Other represents network service fee, including overseas branches

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FB Fee Income Breakdown

-QoQ Comparison

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Fee Income (in NT$ mn)
1,922
1,842 1,806
1,705 QoQ% +6.4%
1,554 1,590
Fee
Income

Others
261
196
213
Credit Card 248 106 112
98
195
F/X 100 206 229 220 238
Related 95 106
237
214 258
Loan 237 280 323
Related 250 216 96 95 98
221
Custodian
100 91 QoQ +7.5%
91 452
Bacassurance 331 306 492 529 Banca.
278
Wealth
505
Mutual Fund 439 MGT. 426 462 408
361
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
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  • Wealth Management Fee = Fund sales + Bancassurance + Custodian

  • *Other represents network service fee, including overseas branches

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FB Fee Income Breakdown

-WM & Non-WM

2015 FB Fee income breakdown ( in NT$ mn or % )

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2015
WM Fee Income
Mutual Fund, $3,895 mn
44.57%
2015
Wealth Management
45.60% Fee Income 54.40%
Non-WM
$7,160 mn
Bancassurance,
Custodian, 45.67%
9.76%
2014 FB Fee income breakdown ( in NT$ mn or % )
2014
WM Fee Income
Mutual Fund, $3,083 mn
53.68%
2014
Wealth Management
50.19% Fee Income 49.81%
Non-WM
$6,190 mn
Bancassurance,
Custodian,
34.38%
11.94%
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FB 2015 Cost-to-Income Ratio

17,737
18,752
2014
2015
Operating Expense
Cumulative Operating Expense (in NT$ mn )
+5.7%		 Cost-to-Income Ratio Analysis( in NT$ mn) Cost-to-Income Ratio Analysis( in NT$ mn) Cost-to-Income Ratio Analysis( in NT$ mn)
2015
Item
2014
2015
Net Revenue
37,520
38,275
Operating Expense
(17,737)		 (18,752)
Provision(Net)
(3,921)		 (473)
Income Tax
(2,481)		 (2,950)
Net Income
13,381
16,100

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Quarterly Operating Expense & Cumulated Cost-to-Income Ratio ( in NT$ mn or % )
Net Revenue Operating Expense Cost-to-Income Ratio
49.75%
48.77% 48.99%
47.27% 47.86%
45.49% 45.39%
9,956 10,147 9,923
9,256 9,276 9,202 9,003
4,232 4,501 4,916 4,404 4,653 4,769 4,926
2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
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FB 2015 Asset Quality

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NPL Amount, Reserve, Coverage (in NT$ mn or % ) Gross Provision Ratio
(loss reserve against performing loan)
LLR ratio (loan loss reserve/total loan,
Coverage Ratio excluding gov.loan) 767.32% 775.31% 751.03%
710.06%
680.71%
521.72% 504.28%
1.37% 1.37% 1.39% 1.40% 1.40%
1.36%
1.31%
1.19% 1.09% 1.24% 1.26% 1.22%
1.18% 1.19%
NPL Ratio NPL NPL Reserve
0.26%
0.24%
0.20%
0.19% 0.18% 0.18% 0.19%
18,637 19,933 20,089 19,699 19,337 20,124 20,738
3,572 3,953 2,951 2,774 2,520 2,596 2,761
6M14 9M14 2014 3M15 6M15 9M15 2015
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FB NPL Migration by Sectors

Large Corp. & SME NPL Ratios(in %)
0.03%
0.02%
0.00%
0.00%
0.00%
0.35%
0.31%
0.31%
0.32%
0.27%
4Q14
1Q15
2Q15
3Q15
4Q15
Large Corp.
SME
Individual
1 & Mortgage NPL Ratios(in %)
0.18%
0.19%
0.17%
0.17%
~~0.15%~~
0.17%
0.19%
0.20%
0.19%
0.18%
4Q14
1Q15
2Q15
3Q15
4Q15
Individual
Mortagge
Domestic NPL Ratio(in %) 0.13%
0.14%
0.09%
0.11%
0.24%
4Q14
1Q15
2Q15
3Q15
4Q15
Overseas NPL Ratio(in %)
Overseas
0.17%
0.19%
0.20%
0.20%
0.21%
4Q14
1Q15
2Q15
3Q15
4Q15
Domestic

  1. Individual: mortgage and non-mortgage loan included

  2. bad-debt recovery not included.

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FB New NPL Influx Breakdown

0.00%
0.00%
0.15%
525
770
1,241
(2,097)
1,151
239
1,169
589
1Q14
2Q14
3Q14
4Q14
Quarterly New NPL Influx & Write-offs ( in NT$ mn)
Breakdown of New NPL Influx (in NT$ mn）
Quarterly
NPL Influx
1Q15
2Q15
3Q15
4Q15
--- Domestic
426
484
113
283
--- Overseas
404
(19)
88
422
Total NPL Influx
830
465
201
705		 0.09%
0.00%
0.07%
1,007
719
125
540
465
201
705
830
1Q15
2Q15
3Q15
4Q15
Write-off
New NPL Influx
Quarterly Recovery Mix (in NT$ mn)
Quarterly
Recovery
1Q15
2Q15
3Q15
4Q15
--- Domestic
651
484
310
768
--- Overseas
115
57
4
106
--- Credit Card
15
15
15
14
Total Recovery
781
556
329
888
Breakdown of New NPL Influx (in NT$ mn）
Quarterly
NPL Influx
1Q15
2Q15
3Q15
4Q15
--- Domestic
426
484
113
283
--- Overseas
404
(19)
88
422
Total NPL Influx
830
465
201
705		 Quarterly Recovery Mix (in NT$ mn)
Quarterly
Recovery
1Q15
2Q15
3Q15
4Q15
--- Domestic
651
484
310
768
--- Overseas
115
57
4
106
--- Credit Card
15
15
15
14
Total Recovery
781
556
329
888
Quarterly
NPL Influx
1Q15
2Q15
3Q15
4Q15
--- Domestic
426
484
113
283
--- Overseas
404
(19)
88
422
Quarterly
Recovery
1Q15
2Q15
3Q15
4Q15
--- Domestic
651
484
310
768
--- Overseas
115
57
4
106
--- Credit Card
15
15
15
14
Total NPL Influx
830
465
201
705
Total Recovery
781
556
329
888
0.00%
0.00%
0.15%
525
770
1,241
(2,097)
1,151
239
1,169
589
1Q14
2Q14
3Q14
4Q14
Quarterly New NPL Influx & Write-offs ( in NT$ mn)
(2,097)
1Q14
2Q14
3Q14
4Q14

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FB 2015 Overseas Profits

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2015 FB Overseas Pre-Tax Profit Mix ( in NT$ mn or % ) 2015 FB Total Pre-Tax Profit Mix ( in NT$ mn or %)
9.3% Total Pre-Tax
11.2% (clockwisely)
44.7% Profit
OBU
$19,050 mn
Shanghai
Chengdu Taiwan Market;
65.9%
2015 Hsiamen
Overseas Macau
18.2%
$6,493 mn HK
North America
Asean Other overseas; Greater China; 20.9%
13.2%
13.6% Others
Quarterly Overseas & Total PTP (in NT$ mn or %)
Overseas Total Cumulative Overseas PTP to FB Total PTP
44.0% 43.9% 44.0% 37.5% 44.8%
34.2% 34.1%
4,690
4,642 4,554 4,933
4,873
3,967
3,166
1,910 1,725 1,545 1,829 1,883 1,202 1,579
2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
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CAR & Core Capital

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FFHC Group CAR(in %)
Re-cap.
CAR
153.43%
132.75%
125.55% 125.34%
123.00% 119.40% 123.04% 121.24%
117.05%
statutory CAR 100%
FB CAR & Core Capital(in %)
Re-cap. CAR
13.67%
12.27%
11.51% 11.50%
10.94% 11.03% 10.90% 10.88%
10.44% Tier 1
10.93%
9.45%
9.02%
8.28% 8.23% 8.41% 8.34% 8.31% 8.64%
2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15
2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15
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  • •Leverage ceiling for holding companies in Taiwan: Double Leverage < 125% ; Debt Ratio < 30%

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Shareholder Return

2010
2011
2012
2013
2014
2015
Cash dividend
0.30
0.40
0.45
0.50
0.70
0.95
Stock dividend
0.60
0.60
0.65
0.70
0.65
0.45
Total dividend
0.90
1.00
1.10
1.20
1.35
1.40
CASH Payout
ratio
29.4%
39.6%
38.1%
42.4%
49.0%
61.3%
1.40
1.00
1.35
1.10
1.20
0.90
1.43
1.18
1.01
1.18
1.02
1.55
2010
2011
2012
2013
2014
2015
FFHC Earnings Per Share ( in NT$ dollar )
EPS
Dividend
FFHC Dividend History( in NT$ dollar )
1
2

  1. EPS is adjusted retroactively for stock dividends.

  2. 2015’s dividend proposal is subject to final approval at 2016 AGM meeting on June 24,

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Appendix

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FFHC Consolidated Statement of Comprehensive Income

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FFHC Non-consolidated Income Statement

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FFHC Balance Sheet

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FFHC Key Ratios

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FB Income Statement

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FB Key Ratios

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FB Loan Quality

FB NPL Migration in NT$ million or %

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Full Year Results 2015 Quarterly Year-over-Year Comparison
2012 2013 2014 Q1 Q2 Q3 Q4 2014 2015 Change
NPL- beginning 6,373 6,423 6,774 2,951 2,774 2,520 2,596 6,774 2,951 -56.4%
Net new NPL influx 3,493 5,341 (118) 830 465 201 705 (118) 2,201 --
Net write-offs (3,443) (4,990) (3,705) (1,007) (719) (125) (540) (3,705) (2,391) -35.5%
NPL- ending balance 6,423 6,774 2,951 2,774 2,520 2,596 2,761 2,951 2,761 -6.4%
Allowance for loan loss- beginning 13,886 15,992 17,730 20,089 19,699 19,337 20,124 17,730 20,089 13.3%
Provisions for loan loss 5,705 6,693 5,863 683 320 758 1,158 5,863 2,919 -50.2%
Net write-offs (3,443) (4,990) (3,705) (1,007) (719) (125) (540) (3,705) (2,391) -35.5%
Others (156) 35 201 (66) 37 154 (4) 201 121 -39.8%
Allowance for loan loss- ending 15,992 17,730 20,089 19,699 19,337 20,124 20,738 20,089 20,738 3.2%
NPL ratio 0.44% 0.47% 0.20% 0.28% 0.18% 0.18% 0.19% 0.20% 0.19% 0.0%
Coverage ratio 248.97% 261.73% 680.71% 453.05% 767.32% 775.31% 751.03% 680.71% 751.03% 70.3%
General Provision Ratio 1.17% 1.26% 1.37% 1.34% 1.36% 1.40% 1.40% 1.37% 1.40% 0.0%
Tier 1 Asset Provision Ratio -- 1.09% 1.24% 1.20% 1.18% 1.22% 1.19% 1.24% 1.19% 0.0%
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  1. Non-consolidated basis

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First Sec. Operating Report

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FSITC Operating Report

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– First Aviva Operating Report

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Q&A

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