Stock Code: 2892

第一金融控股股份有限公司

First Financial Holding Co., Ltd.

2025 ANNUAL REPORT

第一金控 · First Financial Holding
第一金控 ·

FIRST FINANCIAL HOLDING

Disclaimer:

This annual report contains general information and forward-looking statements on business development of First Financial Holding Co., Ltd. and its subsidiaries (together "First Financial Holding" or "FFHC") and they're intended for information purpose only. Investors should determine for themselves whether a particular service or product is suitable for their investment needs and should seek professional advice for their particular situation. Any reliance on this annual report is done entirely at the risk of the person placing such reliance.

The information contained in this annual report is not an offer to sell or a solicitation of an offer to purchase any securities or financial instruments or any advice or recommendation to such securities or other financial instruments. FFHC should not be reliable for any loss or damages arising from the use of or interpretation by others of information contained within this annual report or any matter related to this document.

FFHC 2025 Financial Highlights

I. Letter To Shareholders 4
II. Corporate Governance Report 12
III. Capital Raising Activities 114
IV. Overview Of Business Operations 120
V. Management Discussion And Analysis 174
Of Financial Position, Financial Performance And Risk Management Items
VI. Special Disclosures 202

General Information 204

This English Annual Report is a translation of First Financial Holding Co., Ltd.'s 2025 Chinese Annual Report. In the event of any discrepancy between the two reports, the Chinese version shall prevail.

FFHC 2025 Financial Highlights

2025 Net Income from Subsidiaries

| 2025 | Net Income
(NT$ million) | of the Group
(%) |
| --- | --- | --- |
| First Bank | 25,663 | 91.4% |
| First Securities | 1,111 | 3.9% |
| First Securities Investment Trust | 177 | 0.6% |
| First Life Insurance | 635 | 2.3% |
| First Financial AMC | 192 | 0.7% |
| Others¹ | 305 | 1.1% |

Other fully-owned subsidiaries

Net Income Consolidated basis; NT$ million

ROAE Consolidated basis; %

EPS Consolidated basis; NT$

ROAA Consolidated basis; %

FFHC at a Glance

Consolidated basis, data as of December 31, 2023, 2024 and 2025

Item	2025	2024	2023
Income Statements (NT$ million)
Net revenue	77,594	72,119	67,255
Expenses	(44,145)	(40,881)	(38,993)
Income before tax	33,449	31,238	28,262
Net income	26,933	25,359	22,461
EPS (in NT$)	1.87	1.81	1.65
Adjusted EPS (in NT$)1	1.87	1.76	1.56

Balance Sheets (NT$ million)

Total assets	5,041,754	4,704,422	4,429,410
Total liabilities	4,749,387	4,436,536	4,180,966
Total shareholders' equity	292,367	267,886	248,444
Shares issued (in mn shares)	14,379	14,029	13,620

Dividend (NT$)

Cash dividend	1.30	0.95	0.85
Stock dividend	0	0.25	0.30
Total dividend	1.30	1.20	1.15

Key Financial Ratios (%)

ROAE	9.61	9.82	9.51
ROAA	0.55	0.56	0.52
Double leverage ratio3	114.32	111.97	110.73
Group CAR	130.73	126.05	130.05

Latest Credit Ratings

Credit Rating Agency	LT/ST/Outlook
S&P	BBB/A-2/Stable
Moody's	A2/--/Stable
Taiwan Ratings	twAA-/twA-1+/Stable

Adjusted retroactively for stock dividends
2025 dividend is subject to AGM approval
Double leverage ratio = equity investment / shareholders' equity

I. LETTER TO SHAREHOLDERS

Ye-Chin Chiou | Chairperson, First Financial Holding

1. Achieving Breakthrough Growth and Forging Sustainable Competitiveness in a Dynamic Landscape

Looking back on the global economic landscape of 2025, the proactive inventory management by enterprises and the continuous surge in AI-driven technological innovation helped mitigate the impact of higher U.S. tariffs on the global economy. Furthermore, easing global inflation and a pivot toward more accommodative

monetary policies supported moderate global economic expansion. The U.S. economy continued to grow, fueled by AI-related investments and resilient domestic demand, and although manufacturing investment remained relatively subdued due to persistently high interest rates and tariff policy uncertainties. In the Eurozone, a recovery in real purchasing power and strategic rate cuts bolstered economic resilience, despite ongoing challenges arising from the energy transition and weakening external demand. Japan experienced a gradual recovery driven by corporate wage increases that improved domestic demand, alongside robust tourism consumption and semiconductor exports. Meanwhile, although China adopted proactive fiscal measures and accommodative monetary policies to stimulate short-term recovery, structural issues in the real estate sector and soft domestic demand continued to limit growth momentum. Consequently, China's economic performance exhibited a strong start, followed by a quarter-by-quarter deceleration throughout the year.

Domestically, robust demand for emerging technology applications, particularly AI and high-performance computing, catalyzed a significant surge in exports. Simultaneously, consistent wage growth and the rapid accumulation of household wealth provided substantial momentum for private consumption, resulting in economic performance that beat initial expectations. According to the national income statistics and economic outlook released by the Directorate General of Budget, Accounting, and Statistics in February 2026, Taiwan's economic growth rate for the full year of 2025 reached 8.68%. Looking ahead, as the development trajectory of AI technologies and their practical applications becomes firmly established, the demand for related hardware is expected to remain strong. Semiconductor manufacturers continue to expand advanced process and high-end packaging and testing capacity, sustaining export and investment momentum. Coupled with a recovery in private

consumption, Taiwan's economic growth is projected to stay firm throughout this year. Supported by both internal and external demand, the economic growth rate for 2026 is forecast to reach 7.71%.

For 2026, several uncertainties persist, including the subsequent development of U.S. tariff policies, divergent monetary policy paths among major central banks, industrial overcapacity and price competition in China, geopolitical risks, and extreme climate conditions. In response, the Group will utilize Fintech transformation as its primary engine for innovation. We will focus on the core businesses of each subsidiary, deepen cross-selling across products, channels, and customer segments, and strengthen corporate identity and brand value to build new profit drivers for the Group. Furthermore, sustainability will remain at the core of our business strategies. The Group will actively advance carbon reduction and net-zero initiatives, uphold the principle of fair treatment of customers, and strengthen efforts to prevent financial fraud, thereby enhancing long-term resilience across economic, social, and environmental dimensions.

2. Operating Results For The Year 2025

(1) Steady Innovation and Sustainable Resilience

Building upon its strong core competitive edges, the Group continued to broaden and deepen its business scope in 2025. This was evidenced by the sustained growth in Assets Under Management (AUM) within the Bank's high-net-worth wealth management business and its milestone achievement as the first bank to distribute TISA funds. Furthermore, the investment trust subsidiary's "Global Utilities" and "High Yield Premium Income Bond ETF" funds both exceeded the NT$10 billion threshold, significantly bolstering market visibility. In terms

of digital transformation, the bank introduced new technological tools, including Power BI and generative AI, to improve operational efficiency, while the securities subsidiary launched online account opening for sub-brokerage services and dollar-cost averaging program. Regarding innovative services, the bank secured approval for Phase 3 of Open Banking, enabling API integration for “transaction information.” Meanwhile, the investment trust subsidiary established a presence in the Asian Asset Management Center in Kaohsiung and launched both offshore and domestic alternative funds.

In terms of operating results, the Group and its banking subsidiary posted record-high profits. The Group ended 2025 with NT$5.04 trillion in total assets, while consolidated net revenue amounted to NT$77.594 billion. Annual net profit was NT$26.933 billion, an increase of 6.21% from 2024, and after-tax profit was NT$1.87 per share. Profit from the bank reached NT$25.663 billion, a 7.80% increase from 2024. Our non-bank subsidiaries achieved an after-tax profit of NT$2.421 billion, representing 4.53% growth from 2024, accounting for 8.57% of total profits.

As we pursue decent financial results, we are also committed to governance that is rooted in integrity and aimed at a sustainable future. We focus on corporate governance, environmental sustainability, employee well-being, and social inclusion, continuously enhancing the value of “top brand in sustainable finance.” In terms of sustainability practices, First Financial Holding and its banking, securities, investment trust, and life insurance subsidiaries each received the Model Institution Award under the Institutional Impact category at the 5th Taiwan Sustainable Investment Awards 2025, organized by the Taiwan Institute for Sustainable Energy (TAISE). First Financial Holding also ranked among the top 5% of listed companies in the Corporate Governance Evaluation for the tenth time. In addition, both the banking and securities subsidiaries ranked among the top 25% in the

Financial Supervisory Commission’s Assessment of Fair Customer Treatment Principles, reflecting the Group’s continued achievements in sustainable development.

(2) Enhancing Product Quality and Strengthening Niche Businesses

Below are the financial and operational highlights of our banking, securities, investment trust, life insurance, and other subsidiaries for the year 2025.

First Bank

As part of its commitment to international expansion and providing seamless global financial services, the Bank launched its Osaka Sub-branch under the Tokyo Branch in August 2025. This move strategically rounds out the Bank’s global footprint. The Bank also continued to solidify its dominance in the SME sector by targeting policy-priority sectors, specifically the Five Targeted Industry Sectors. Additionally, it strengthened its leadership as a lead arranger for syndicated loans while aggressively expanding its high-net-worth wealth management business, where it consistently ranks among the industry’s top in both Assets Under Management (AUM) and client acquisition. On the digital front, the Bank continues to integrate AI and advanced technologies to refine its digital customer segments and channel operations, securing its position as the fourth-largest provider of digital accounts in the market. Regarding sustainable finance, the Bank adhered to five core strategic pillars: Comprehensive Services, Social Impact, Operational Sustainability and Resilience, Business Integrity, and Talent Development. By collaborating with customers to design sustainable development blueprints, First Bank made history as the first enterprise in Taiwan to receive the “Giant Award”—the highest honor of the National Enterprise Environmental Protection Awards—for six consecutive years.

7

Frank Y.C. Fang | President, First Financial Holding

First Bank's after-tax net profit in the year 2025 reached NT$25.663 billion, an increase of 7.80% from 2024. After-tax net profit was NT$2.09 per share. While maintaining steady business and profit growth, the bank also continued to improve asset quality. As of the end of 2025, the nonperforming loan ratio stood at 0.17% while the loan loss coverage ratio was 862.04%, reflecting a balanced approach to both loan growth and asset quality. In addition, the bank continued to strengthen its capital structure. As of December 2025, its capital adequacy ratio (CAR) and Tier 1 capital ratio stood at 15.44% and 13.21%, respectively, meeting the regulatory capital adequacy requirements for D-SIBs (Domestic Systemically Important Banks).

First Securities

In recent years, First Securities has achieved significant growth across multiple business lines. In terms of the brokerage business, the company focused on comprehensive performance enhancements within institutional and high-net-worth client segments, dollar-cost averaging programs, odd-lot trading, securities desk at bank channel, and dormant account reactivation.

Simultaneously, it promoted niche businesses such as sub-brokerage, securities lending, and unrestricted-purpose lending, while continuously optimizing account-opening and trading platform functions to cultivate a younger brand image. In the underwriting business, the company leveraged Group resources and its customer base, combined with external strategic partners, to expand lead and co-underwriting mandates for IPO and SPO transactions. It also actively participated in market making for emerging stocks to enhance investment portfolio returns. In 2025, First Securities ranked first among government-affiliated securities firms in both IPO lead underwriting listings and market share of emerging stock recommendations. As for the asset management business, the company continued to strengthen risk management while balancing capital gains with dividend and bond interest income. It also engaged in strategic trading to improve investment yields. First Securities reported an after-tax net profit of NT$1.111 billion in 2025. After-tax net profit was NT$1.66 per share.

First Life Insurance

To achieve its operational goal of “expanding business scale and enhancing corporate value,” First Life Insurance continued to promote product transformation, pursue prudent investment strategies, and strengthen its capital base to improve future profitability. Benefiting from gains on equity disposals and increased dividend and bond interest income, investment income reached NT$2.932 billion in 2025, representing an 8.10% increase from 2024. This growth helped offset the impact of foreign exchange losses and higher operating expenses, thereby contributing to the overall bottom-line of First Life Insurance. In terms of product transformation, interest-sensitive life insurance and mortgage insurance products increased by 5.51% and 15.02%, respectively, compared with the previous year. As for channel sales, broker and agency channels recorded strong growth of 141.64%, driving total premium income to NT$15.296 billion in 2025, an increase of 10.90% from the previous year. First Life Insurance reported an after-tax net profit of NT$635 million in 2025. After-tax net profit was NT$1.04 per share.

First Securities Investment Trust

As of the end of 2025, total assets under management reached NT$192.4 billion, representing an annual growth of 35.59% and ranking 13th among its peers. Guided by forward-looking market perspectives and customer needs, the company actively promoted product innovation by launching the FSITC USD High Yield Premium Income Bond ETF and the FSITC Taiwan Stock Trend Selection Active ETF. Among these, the size of FSITC USD High Yield Premium Income Bond ETF and the Global Utilities Fund both exceeded NT$10 billion in assets and continued to grow. In addition, the company secured multiple discretionary investment mandates, further expanding assets under management and strengthening its overall competitiveness. The company also actively supported the Financial Supervisory Commission’s initiative to promote Taiwan Individual Savings Accounts (TISA). Currently, four funds have been approved to issue TISA-class units and are available for sale through distribution channels. Through a diversified product lineup, the company aims to assist investors in achieving their retirement financial goals. First Securities Investment Trust reported an after-tax net profit of NT$177 million in 2025. After-tax net profit was NT$2.96 per share.

First Financial AMC, First Venture Capital & First Consulting

First AMC saw a boost of income in 2025 from servicing and disposing of non-performing loans, leading to steady overall profit growth. First Venture Capital capitalized on favorable capital market conditions and actively realized gains from investment portfolios. Meanwhile, First Consulting

achieved modest profit growth, attributed to steady management fee income from venture capital and green energy funds. Overall, First AMC, First Venture Capital, and First Consulting reported after-tax net profits of NT$192 million, NT$297 million, and NT$9 million, respectively, for the year 2025.

3. Business Strategy And Operational Plan For The Year 2026: Innovative Transformation with Sustainable Advancement

The Group's key business strategies and operational plans for 2026 are divided into five aspects and described below:

(1) Deepen core services and optimize cross-domain collaboration.
(2) Enrich innovative product offerings and realize the benefits of integration.
(3) Empower operations through technology and strengthen AI applications.
(4) Optimize capital allocation and enhance risk control.
(5) Align with international trends and advance sustainable development.

In our efforts to expand business operations, the banking subsidiary will focus on driving growth in SME lending, optimizing the corporate loan structure, and boosting its share in the syndicated loan market to widen its competitive advantage over peers. Regarding overseas operations, the bank will deepen collaboration and information sharing among regional branches while strengthening capital returns, funding cost control, and regional oversight. The securities subsidiary aims to enhance channel efficiency of its brokerage business and strengthen the market-making capabilities of its underwriting division to secure a greater share of emerging stock market mandates. Meanwhile, the life insurance subsidiary will optimize the synergies within the

Group channels while expanding key external bank and broker distribution networks. Simultaneously, it will proactively drive product transformation and implement long-term product development strategies to steadily increase the Contract Service Margin (CSM) contribution and investment returns. Finally, the investment trust subsidiary will focus on developing innovative products and marketing key funds, while deepening customer engagement across all channels and tapping into diversified business segments.

The Group will continue to strengthen channel management through the integrated marketing taskforce model, coordinating cross-subsidiary business needs and converting potential business opportunities into tangible results. This approach positions First Bank as the primary hub for our clients' financial transactions. At the same time, the Group is enhancing the competitiveness of mainstream market products, such as sub-brokerage services and ETFs, to align with the investment preferences of the younger demographic. Furthermore, in coordination with the Financial Supervisory Commission's policy to establish Taiwan as the Asian Asset Management Center, the banking subsidiary is expanding its high-net-worth wealth management services to include family office solutions, succession planning, and cross-border financial services. In addition, the investment trust subsidiary will collaborate with the bank to pilot the multi-channel distribution of offshore alternative funds, providing high-net-worth clients a wider range of product options. The subsidiary will also launch TISA-class funds to provide investors with diversified retirement planning tools and jointly drive the comprehensive upgrade of our wealth management services.

In the realm of digital innovation, the Financial Holding Company is leading its subsidiaries in the integration of AI technologies, expanding their application to optimize decision-making and

enhance operational efficiency. With the rise of artificial intelligence and the emergence of digital-native generations who are accustomed to a digital-first lifestyle, leveraging technological innovation to reshape financial services is critical. Developing simpler, faster, and more secure intelligent financial products and service platforms will be a primary driver of future growth in the financial industry. Guided by the spirit of “Centuries of Legacy with Innovative Services,” the Group will refresh its brand image to present a more youthful and dynamic identity. Through AI applications, such as using large language models (LLMs) to generate online unsecured loan and credit investigation reports, and developing big data-driven AI models for precision marketing combined with intelligent online sales supported by digital media push notifications, the Group aims to build seamless around-the-clock financial services and deliver immersive customer experiences that respond more closely to market needs. At the same time, the successful experience of AI implementation at the banking subsidiary will be replicated and extended to other subsidiaries, enabling the Group to capture opportunities in channel transformation and service innovation in the digital era and to position itself as a cross-generational financial brand.

For capital management, while maintaining adequate capital level across the Group, priority is given to enhancing capital efficiency for both holding company and subsidiaries. Efforts will focus on improving the return on capital and adjusting the Group's capital structure to support the growth of non-banking subsidiaries. By strengthening the securities and life insurance businesses as the Group's secondary profit engine, we aim to drive a steady increase in the Group's Return on Equity (ROE). In addition, in accordance with regulatory policies promoting inclusive finance and preventing financial fraud targeting elderly and underprivileged groups, each subsidiary will continue to refine its implementation of the ten principles for fair

customer treatment. The Group will also enhance risk detection technologies and strengthen internal anti-fraud capabilities through public-private cooperation and the application of advanced technological tools, thereby safeguarding customers' assets.

In our commitment to advancing environmental, social, and economic progress toward sustainable development goals, the Company and its subsidiaries continue to adopt the IFRS Sustainability Disclosure Standards. Comprehensive sustainability reports are prepared to provide transparent disclosure of environmental, social, and governance (ESG) performance. Furthermore, the Company will serve as the rotating chair of the Coalition of Movers and Shakers on Sustainable Finance in 2026, while continuing its role as the convener of the "Task-force for Domestic & Overseas Promotion" under the Financial Industry Net-Zero Promotion Platform. These leadership positions underscore the Group's dedication to driving ESG progress within the financial sector. Moreover, the Group adheres to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), the IFRS Sustainability Disclosure Standards, and regulatory guidelines to lead its subsidiaries in identifying material climate-related risks and opportunities. By evaluating potential financial impacts and formulating strategic counter measures, we continue to strengthen the Group's resilience against climate-related risks.

4. The Latest Credit Rating Results: Ratings Affirmed, Reflecting Outstanding Stability and Trustworthy Operations

Credit rating reports issued by Taiwan Ratings, S&P, and Moody's all indicated that the Group enjoys strong competitive edge and robust corporate governance, as well as steady corporate values,

diverse client bases, adequate financial structure and risk control, and sound asset quality, as reflected in the financial market. Our long-term and short-term credit ratings and outlooks are listed below:

Ratings Agency	Taiwan Ratings
	Short-term	Long-term	Outlook	Rating Date
First Financial Holding	twA-1+	twAA-	Stable	2025.09.17
First Bank	twA-1+	twAA+	Stable	2025.09.22
First Securities	twA-1+	twAA-	Stable	2025.08.25
First Life Insurance	--	twAA-	Stable	2025.06.12
Ratings Agency	S&P
	Short-term	Long-term	Outlook	Rating Date
First Financial Holding	A-2	BBB	Stable	2025.09.16
First Bank	A-1	A	Stable	2025.09.22
Ratings Agency	Moody's
	Short-term	Long-term	Outlook	Rating Date
First Financial Holding	--	A2	Stable	2026.03.17
First Bank	P-1	A1	Stable	2026.03.19

Looking forward to 2026, the Group will prudently navigate the uncertainties of the global economic landscape by adhering to our strategic objectives of steady transformation and sustainable progress. Grounded in a solid foundation of regulatory compliance, internal controls, and risk management, we will leverage technology to enhance our capacity for innovation. We remain committed to integrating the Group's distribution channels to further enlarge our business footprint. By aligning with international trends and enhancing the depth and breadth of our ESG sustainability disclosures, we aim to demonstrate robust operational resilience and forward-thinking leadership. Through these initiatives, the Group will serve as a cornerstone for sustainable social, economic, and environmental development, fostering a future of diversified vitality, prosperity, and progress.

Sincerely,

Yechin Chiou

Ye-Chin Chiou

Chairperson

II. Corporate Governance Report

2.1 Directors, President, Executive Vice Presidents, Assistant Vice Presidents, Heads Of Each Division And Unit And Company's Consultants

2.1.1 Board Member Information

| Title
(Note 1) | Nationality | Name | M/F
Age | Date Elected
(Appointed) | Term
Expiration
Date | Date of first
elected
(Note 2) |
| --- | --- | --- | --- | --- | --- | --- |
| Chairperson | R.O.C. | Ye-Chin Chiou
(MOF Representative) | F
70 | 2024/06/21 | 2027/06/20 | 2020/10/30 |
| Director & President | R.O.C. | Frank Y. C. Fang
(MOF Representative) | M
62 | 2024/08/14 | 2027/06/20 | 2024/08/14 |
| Director | R.O.C. | Lin-Na Huang
(MOF Representative) | F
62 | 2025/05/14 | 2027/06/20 | 2025/05/14 |
| Director | R.O.C. | Ming-Chi Lee
(MOF Representative) | M
52 | 2024/06/21 | 2027/06/20 | 2023/11/24 |
| Director | R.O.C. | Shing-Rong Lo
(MOF Representative) | F
60 | 2024/06/21 | 2027/06/20 | 2015/10/26 |
| Director | R.O.C. | Chih-Chuan Chen
(MOF Representative) | M
59 | 2024/06/21 | 2027/06/20 | 2021/03/12 |
| Director | R.O.C. | Hsin-Lu Chang
(MOF Representative) | F
53 | 2024/06/21 | 2027/06/20 | 2021/07/20 |
| Director | R.O.C. | Shih-Yuan Tai
(Bank of Taiwan
Representative) | M
64 | 2024/06/21 | 2027/06/20 | 2022/08/15 |
| Director | R.O.C. | Chen-Ching Tien
(Bank of Taiwan
Representative) | M
62 | 2024/06/21 | 2027/06/20 | 2024/06/21 |
| Director | R.O.C. | An-Fu Chen
(Global Vision Investment
Co., Ltd. Representative) | M
61 | 2024/06/21 | 2027/06/20 | 2009/05/22 |
| Independent Director | R.O.C. | Rachel J. Huang | F
58 | 2024/06/21 | 2027/06/20 | 2018/06/26 |
| Independent Director | R.O.C. | Chun-Hung Lin | M
61 | 2024/06/21 | 2027/06/20 | 2018/06/26 |
| Independent Director | R.O.C. | Wen-Ling Hung | F
65 | 2024/06/21 | 2027/06/20 | 2021/07/20 |
| Independent Director | R.O.C. | Hung-Yu Lin | F
45 | 2024/06/21 | 2027/06/20 | 2021/07/20 |
| Independent Director | R.O.C. | Chi-Chang Yu | M
77 | 2024/06/21 | 2027/06/20 | 2024/06/21 |

Note 1: For representative of corporate shareholders, the name of the corporate shareholder must be specified, and Table 2.1.2 below must be completed.

(Table Continued)

As of April 20, 2026

Shareholding when elected		Current shareholding		Shares Held by Self, Spouse, and Minor Children		Shares Held through Nominees
Shares	(%)	Shares	(%)	Shares	(%)	Shares	(%)
1,564,683,935	11.49	1,651,915,064	11.49	121,025	0	0	0
1,564,683,935	11.49	1,651,915,064	11.49	156,697	0	0	0
1,564,683,935	11.49	1,651,915,064	11.49	0	0	0	0
1,564,683,935	11.49	1,651,915,064	11.49	0	0	0	0
1,564,683,935	11.49	1,651,915,064	11.49	0	0	0	0
1,564,683,935
1,564,683,935	11.49	1,651,915,064	11.49	0	0	0	0
1,564,683,935

Note 2: Please fill in the date first elected as a director of the Company. Any interruptions in tenure must be noted and explained in the footnotes.

As of April 20, 2026

Title	Name	Primary Academic and Professional Experience (Note 3)	Current Positions Held in Financial Holding Company and Other Companies	Other Managers, Directors, or Supervisors with Spousal or Within Second-Degree Kinship Relationships			Remarks (Note 4)
				Title	Name	Relation
Chairperson	Ye-Chin Chiou (MOF Representative)	B.A. in Economics, National Taiwan University Managing Director & President, Vice President, Manager of Credit Analysis Division, and Branch Manager of Bank of Taiwan; Director of Small & Medium Enterprise Credit Guarantee Fund of Taiwan; Director of BankTaiwan Securities Co., Ltd.; Director of Cathay United Bank; Supervisor of Taiwan Power Company; Director of Hua Nan Financial Holdings Co.; Director of United Taiwan Bank; Director of Taipei Forex Inc.; Director of Mega Financial Holdings Co., Ltd.; Director of Taiwan Financial Holdings Co., Ltd.; Chairman of the Bankers Association of Taiwan Province	Chairperson, First Bank; Chairperson, First Bank Education and Culture Foundation; Chairperson, the Trust Association of R.O.C.; Director, National Credit Card Center; Supervisor, Taiwan Stock Exchange Corporation; Managing Director, Bankers Association of the R.O.C.; Managing Director, Bankers Association of Taipei; Standing Supervisor, Bankers Association of Taiwan; Director and Member of the Training Guidance Committee, Taiwan Academy of Banking and Finance; Director, Taiwan Financial Services Roundtable.	-	-	-	-
Director & President	Frank Y. C. Fang (MOF Representative)	M.S. in Business Management, Sun Yat-Sen University Head of Accounting, Operation Planning & Administration, Credit Approval, and Risk Management Divisions, as well as Branch Manager of First Bank ; Chief Secretary to the Board of Directors, First Financial Holding & First Bank; Vice President of First Financial Holding; Vice President of First Bank & Head of Risk Management Division of First Financial Holding; Supervisor of First Property and Casualty Industry Agency Co/ First Insurance Agency Co.; Director of First Venture Capital Co./ First Consulting; Supervisor of First Securities Investment Trust Co.; Director of Taiwan Asset Management Corporation.	Managing Director, First Bank; Director, First Life Insurance; Director, First Bank Education and Culture Foundation.	-	-	-	-

Title	Name	Primary Academic and Professional Experience (Note 3)	Current Positions Held in Financial Holding Company and Other Companies	Other Managers, Directors, or Supervisors with Spousal or Within Second-Degree Kinship Relationships				Remarks (Note 4)
				Title	Name	Relation
Director	Lin-Na Huang (MOF Representative)	LL.B., Fu Jen Catholic University Delegate to the National Assembly; Executive Secretary, Director of Labor Affairs Department and Civil Affairs Department, Yilan County Government; Special Commissioner of Ministry of Labor. Current Position: Deputy Minister of Ministry of Labor.	None	-	-	-	-	-
Director	Ming-Chi Lee (MOF Representative)	M.S. in Social and Public Policy, University of York, UK; M.S. in Public Finance, National Chengchi University Section Chief of the Securities and Futures Bureau, Financial Supervisory Commission; Senior Executive Officer, Section Chief of the Taxation Administration, Ministry of Finance; Deputy Director General, Senior Executive Officer of the Department of International Fiscal Affairs, Ministry of Finance. Current Positions: Director General of Department of International Fiscal Affairs of the Ministry of Finance; Adjunct Assistant Professor Rank Specialist of Department of Public Finance, National Chengchi University.	None	-	-	-	-	-
Director	Shing-Rong Lo (MOF Representative)	B.B.A. in Accounting, National Chung Hsing University Director, Deputy Director, and Section Chief of National Treasury Administration, Ministry of Finance; Deputy Director General of Finance Department, New Taipei City Government Current position: Chief Secretary of National Treasury Administration, Ministry of Finance.	None	-	-	-	-	-

Title	Name	Primary Academic and Professional Experience (Note 3)	Current Positions Held in Financial Holding Company and Other Companies	Other Managers, Directors, or Supervisors with Spousal or Within Second-Degree Kinship Relationships.
				Title	Name	Relation
Director	Chih-Chuan Chen (MOF Representative)	M.S. in Business Management, Oklahoma City University, USA
Branch Manager of Capital Securities Corp.; Director of Grand Cathay Futures Corp.; Regional Head of Brokerage Business Division, and Head of Corporate Business Division, Dahua Securities; Independent Director, and Member of the Remuneration Committee of Shihlin Paper Co., Ltd.; Independent Director, and Member of the Audit Committee of Wan Hai Lines Ltd.; Director of Mega Futures; General Manager of Headquarter Brokerage Business Division, Mega Securities; President, Executive Vice President of Channel Business Division & Headquarter Brokerage Business Division, Mega Securities.	Chairperson, First Securities;
Director, FSC Asia Investment;
Director, First Worldsec Securities Limited;
Director, Taiwan Securities Association;
Convener, Trust Business Committee, Chinese National Futures Association.	-	-	-	-
Director	Hsin-Lu Chang (MOF Representative)	Ph.D. in Information Management, University of Illinois at Urbana-Champaign, USA
Associate Professor, and Assistant Professor of Department of Information Management, National Chengchi University.
Current position: Professor and Chair, Department of Information Management, National Chengchi University.	Director, First Bank.	-	-	-	-
Director	Shih-Yuan Tai (Bank of Taiwan Representative)	B.S. in Mechanical Engineering, National Taiwan University of Science and Technology
Chief Secretary to the Board of Directors, Head, and Deputy Head of Human Resources Department, Bank of Taiwan; Managing Director of Taiwan Business Bank; Director of Taiwan Fire and Marine Insurance Co, Ltd.	Executive Vice President, Bank of Taiwan;
Director, Acting Chairperson, and President of BankTaiwan Insurance Broker Co., Ltd.	-	-	-	-

Title	Name	Primary Academic and Professional Experience (Note 3)	Current Positions Held in Financial Holding Company and Other Companies	Other Managers, Directors, or Supervisors with Spousal or Within Second-Degree Kinship Relationships			Remarks (Note 4)
				Title	Name	Relation
Director	Chen-Ching Tien (Bank of Taiwan Representative)	LL.B., Fu Jen Catholic University Adjunct Assistant Professor Rank Specialist of School of Law, Fu Jen Catholic University Current position: Attorneys-at-Law & Managing Partner, T. Y. T Law Offices.	Chairperson, Ding Li Enterprise Co.; Director, Grand Pacific Petrochemical Corporation; Independent Director, Allied Industrial Corp.; Director, Asia-Pacific Science & Technology Association; Director, Ruchuan Sustainability Foundation; Independent Director, Xxentria Tech Materials Co., Ltd. Director, Yu Yang Digi Co.,Ltd.	-	-	-	-
Director	An-Fu Chen (Global Vision Investment Co., Ltd. Representative)	B.S. in Pharmacy, Taipei Medical University Director of Mingtai Insurance Co., Ltd.; Executive Vice President of TransGlobe Life Insurance Inc.; Executive Vice President of Transamerica Occidental Life Insurance Co.	Director, First Life Insurance; Chairperson, Global Vision Investment Co., Ltd.	-	-	-	-
Independent Director	Rachel J. Huang	Ph. D. in Finance, National Taiwan University Associate Professor of Department of Finance, Ming Chuan University; Associate Professor of Department of Finance, Yuan Ze University; Associate Professor of Graduate Institute of Finance, National Taiwan University of Science and Technology; Professor of Department of Finance, National Central University. Current position: Distinguished Professor and Chair of Department of Finance, National Central University.	Independent Director, First Bank; Managing Director, Taiwan Risk and Insurance Association.	-	-	-	-

Title	Name	Primary Academic and Professional Experience (Note 3)	Current Positions Held in Financial Holding Company and Other Companies	Other Managers, Directors, or Supervisors with Spousal or Within Second-Degree Kinship Relationships.
				Title	Name	Relation
Independent Director	Chun-Hung Lin	Ph.D. in Economics, Iowa State University, USA; M.S. in Computer Science and M.S. in Engineering Management, University of Missouri, USA
Chair of the Department of Economics and Executive, Director of the EMBA Program, Tamkang University; Dean of Academic Affairs, Dean of Student Affairs, and Vice President of Lanyang Campus, Tamkang University.
Current position: Vice President for Administrative Affairs and Professor of Department of Economics, Tamkang University.	Managing Independent Director, First Bank.	-	-	-	-
Independent Director	Wen-Ling Hung	Ph.D. in Law, National Chengchi University
Dean of College of Justice Administration, Chair of Department of Administration Police, Director of the Graduate School of Police Policy, Professor of Department of Administration Police and Graduate School of Police Policy, Central Police University; Member of the Petition and Appeals Committee, Ministry of Labor; Member of the Petition and Appeals Committee, Ministry of Finance; Director of Mega Financial Holding Co., Ltd. and Mega International Commercial Bank.
Current position.	Director, Police Academic Research Foundation Dean of the College of Police Administration, Central Police University.	-	-	-	-
Independent Director	Hung-Yu Lin	Ph.D. in Economics, National Central University
Researcher, Project Leader, and Associate Researcher of Research Division II, Taiwan Institute of Economic Research; Adjunct Assistant Professor of Department of International Business, Soochow University; Director of TCB Bio-Venture Capital Corp.
Current position: Vice Dean of Research Division II, Taiwan Institute of Economic Research	Director, HanTech Venture Capital Corporation; Director, BMD Venture Capital Investment Corporation; Director, Universal Venture Capital Investment Corporation; Independent Director, Taiwan Navigation Co., Ltd.; Director, The Prospect Foundation.	-	-	-	-

Title	Name	Primary Academic and Professional Experience (Note 3)	Current Positions Held in Financial Holding Company and Other Companies	Other Managers, Directors, or Supervisors with Spousal or Within Second-Degree Kinship Relationships
				Title	Name	Relation
Independent Director	Chi-Chang Yu	J.S.D., Stanford University
Judge of Banqiao Branch of Taipei District Court, Yilan District Court, and Hualien District Court; Partner of Lee And Li Attorneys-at-Law; Member of Complaint Review Committee for Government Procurement, Executive Yuan; Member of the Administrative Appeals Committee and the Complaint Review Committee, Ministry of Finance; Independent Managing Director of Agricultural Bank of Taiwan; Independent Director of Chang Hwa Bank; Independent Director of Mega Financial Holdings Co. Ltd.; Adjunct Associate Professor, Assistant Professor, and Associate Professor of Dept. of Industrial and Business Management, Chang Gung University.
Current positions: Adjunct Associate Professor of Dept. of Accounting, Taiwan University; Adjunct Associate Professor of School of Law, Soochow University; Adjunct Professor Rank Specialist of Dept. of Industrial and Business Management, Chang Gung University	Independent Director, Mytrex Health Technologies, Inc.; Managing Supervisor, Taiwan Institute of Economic Research; Director, Taiwan Trust Association.	-	-	-	-

Note 3: Regarding experience relevant to the current position, if a director was employed by the Company's external audit firm of an affiliate during the aforementioned period, the job title and responsibilities must be specified.

Note 4: The Company does not have a situation where the Chairperson and the President, or an equivalent top manager, are the same person, spouses, or relatives within the first degree of kinship.

2.1.2 Major Shareholders Of The Company's Corporate Shareholders

As of April 20, 2026

Name of Corporate Shareholder (Note 1)	Major Shareholders of the Corporate Shareholder (Note 2)
Ministry of Finance	-
Bank of Taiwan	Taiwan Financial Holding Co., Ltd. (100%)
Global Vision Investment Co., Ltd.	An-Fu Chen (98.4%), Hwei-Chi Huang (1.6%)

Note 1: If a director is a representative of a corporate shareholder, the name of the corporate shareholder must be specified.
Note 2: Fill in the names of major shareholders (top 10) of such corporate entity and their respective shareholding percentages. If any of the major shareholders is a corporation, Table 2.1.3 below must also be completed.
Note 3: If the corporate shareholder is not organized as a company, the names of shareholders and shareholding percentages to be disclosed shall refer to the contributors or donors (reference can be made to the Judicial Yuan's public announcements for verification) and their contribution/donation ratios. If a donor is deceased, please noted as "(Deceased)".

2.1.3 Major Shareholders Of The Company's Corporate Shareholders Listed In Table 2.1.2 Above

As of April 20, 2026

Name of Corporate Shareholder (Note 1)	Major Shareholders of the Corporate Shareholder (Note 2)
Taiwan Financial Holding Co., Ltd.	Ministry of Finance (100%)

Note 1: If any major shareholder in Table 2.1.2 above is a corporate entity, the name of that corporate entity must be disclosed.
Note 2: Fill in the names of major shareholders (top 10) of such the said corporate entity and their respective shareholding percentages.
Note 3: If the corporate shareholder is not organized as a company, the names of shareholders and shareholding percentages to be disclosed shall refer to the contributors or donors (reference can be made to the Judicial Yuan's public announcements for verification) and their contribution/donation ratios. If a donor is deceased, please noted as "(Deceased)".

2.1.4 Professional Qualifications Of Board Members And Independence Status Of Independent Directors

Data as of Apr. 20, 2026

Name	Professional Qualification and Experience	Independence Status	Number of Other Public Companies Where the Individual Concurrently Serves as an Independent Director
Ye-Chin Chiou	• Ms. Ye-Chin Chiou has served as a Director of the Company representing the Ministry of Finance since October 2020, and has held the position of Chairperson of the Company and First Bank since November of the same year. Between July 2002 and November 2020, she built an extensive career at the Bank of Taiwan, successively serving as Branch Manager, Manager of the Credit Analysis Division, Vice President, and Managing Director & President. Furthermore, she has held directorships at the Small & Medium Enterprise Credit Guarantee Fund of Taiwan, Taiwan Financial Holdings Co., Ltd., BankTaiwan Securities Co., Ltd., Cathay United Bank, Hua Nan Financial Holdings Co., United Taiwan Bank, Taipei Forex Inc., and Mega Financial Holdings Co., Ltd., Supervisor for Taiwan Power Company, as well as serving as Chairman of the Bankers Association of Taiwan Province. Currently, Chairperson Chiou concurrently holds several key leadership and advisory roles, including Chairperson of the Trust Association of R.O.C.; Director of the National Credit Card Center; Supervisor of the Taiwan Stock Exchange Corporation; Managing Director of Bankers Association of the R.O.C.; Managing Director of Bankers Association of Taipei; Managing Supervisor of the Bankers Association of Taiwan Province; Director and Member of the Training Guidance Committee of the Taiwan Academy of Banking and Finance; and Director of the Taiwan Financial Services Roundtable. A graduate of the Department of Economics at National Taiwan University, Chairperson Chiou possesses exceptionally comprehensive and profound experience in the financial industry.
• Meets the professional qualifications for financial holding companies and banks as stipulated in Article 9 of the “Regulations Governing Qualification Requirements and Concurrent Serving Restrictions and Matters for Compliance by the Promoter and Responsible Persons of Financial Holding Companies”.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Serves as the representative of the MOF. The MOF holds over 5% of the Company's issued shares and is the Company's largest shareholder.
• Concurrently serves as the Chairperson of First Bank, a wholly-owned subsidiary of the Company.
• All other independence criteria have been verified and found to be in compliance with the FSC's “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.	-

Name	Professional Qualification and Experience	Independence Status	Number of Other Public Companies Where the Individual Concurrently Serves as an Independent Director
Frank Y. C. Fang	• Mr. Frank Y. C. Fang has served as a Director of the Company representing the Ministry of Finance since August 2024, and has held the position of President of the Company, as approved by the Financial Supervisory Commission, since the same date. He currently serves as a Managing Director of First Bank, and a Director of both First Life Insurance and the First Bank Education and Culture Foundation. From October 2005 to August 2024, Mr. Fang held several key leadership positions within the Group, including Head of the Accounting, Risk Management, Credit Approval, and Operation Planning & Administration Divisions, as well as Branch Manager of First Bank. He also served as the Chief Secretary to the Board of Directors for both the Company and First Bank; Vice President of the Company; and Vice President of First Bank while concurrently serving as the Head of the Risk Management Division of the Company. Furthermore, his extensive governance experience includes serving as a Supervisor for First Insurance Agency/First Property and Casualty Industry Agency; Director for First Venture Capital and First Consulting; and Supervisor for First Securities Investment Trust. Additionally, he has served as a Director of Taiwan Asset Management Corporation. Mr. Fang holds an M.S. in Business Management from Sun Yat-Sen University. With decades of experience in the financial sector, he possesses exceptional capabilities in operational planning and management within the financial holding and banking industries, along with specialized expertise in risk management, accounting, and insurance.
• Meets the professional qualifications for financial holding companies and banks as stipulated in Article 9 of the “Regulations Governing Qualification Requirements and Concurrent Serving Restrictions and Matters for Compliance by the Promoter and Responsible Persons of Financial Holding Companies”.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Serves as the representative of the MOF. The MOF holds over 5% of the Company's issued shares and is the Company's largest shareholder.
• Concurrently serves as the Managing Director of First Bank and a Director of First Life Insurance, both of which are wholly-owned subsidiaries of the Company.
• Concurrently serves as the President of the Company and is categorized as an executive officer.
• All other independence criteria have been verified and found to be in compliance with the FSC's “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.	-
Lin-Na Huang	• Ms. Ling-Na Huang currently serves as the Deputy Minister of the Ministry of Labor. She has served as a Director of the Company since May 2025, representing the Ministry of Finance. Since 1992, she has successively held positions as a Delegate to the National Assembly; Executive Secretary, Director of the Labor Affairs Department, and Director of the Civil Affairs Department of the Yilan County Government; and Special Commissioner of Ministry of Labor. She possesses extensive and profound experience in labor-related issues.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Serves as the representative of the MOF. The MOF holds over 5% of the Company's issued shares and is the Company's largest shareholder.
• All other independence criteria have been verified and found to be in compliance with the FSC's “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.	-

Name	Professional Qualification and Experience	Independence Status	Number of Other Public Companies Where the Individual Concurrently Serves as an Independent Director
Ming-Chi Lee	• Mr. Ming-Chi Lee currently serves as the Director General of the Department of International Fiscal Affairs of the Ministry of Finance and concurrently as an Adjunct Assistant Professor Rank Specialist at the Department of Public Finance, National Chengchi University, where he teaches Securities Regulation and Corporate Governance. He has served as a Director of the Company representing the Ministry of Finance since November 2023. Since October 2010, he has successively held key positions including Section Chief of the Securities and Futures Bureau, Financial Supervisory Commission; Section Chief and Senior Executive Officer of the Taxation Administration, Ministry of Finance; and Senior Executive Officer and Deputy Director General of the Department of International Fiscal Affairs, Ministry of Finance. Mr. Lee holds an M.S. from the Graduate Institute of Public Finance at National Chengchi University and obtained an M.A. in Social and Public Policy from the University of York, UK, through the Executive Yuan's Overseas Study Program for Outstanding Civil Servants. He possesses extensive academic and practical experience in the fields of public finance, taxation, and corporate governance.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Serves as the representative of the MOF. The MOF holds over 5% of the Company's issued shares and is the Company's largest shareholder.
• All other independence criteria have been verified and found to be in compliance with the FSC's “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.	-
Shing-Rong Lo	• Ms. Shing-Rong Lo served as a Director of the Company representing the Bank of Taiwan from October 2015 to June 2018. Following the expiration of that term, she has continued to serve as a Director representing the Ministry of Finance to the present day. Since January 2007, she has held various public service positions, including Section Chief, Deputy Director, and Director of the National Treasury Administration at the Ministry of Finance, as well as Deputy Director General of the Finance Department of the New Taipei City Government. She currently serves as the Chief Secretary of the National Treasury Administration at the Ministry of Finance. Ms. Lo holds a B.B.A. in Accounting from National Chung Hsing University and possesses extensive experience in operations and management within the finance and accounting sectors.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Serves as the representative of the MOF. The MOF holds over 5% of the Company's issued shares and is the Company's largest shareholder.
• All other independence criteria have been verified and found to be in compliance with the FSC's “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.	-

Name	Professional Qualification and Experience	Independence Status	Number of Other Public Companies Where the Individual Concurrently Serves as an Independent Director
Chih-Chuan Chen	• Mr. Chih-Chuan Chen has served as a Director of the Company representing the Ministry of Finance since March 2021, and has concurrently held the position of Chairperson of First Securities to the present day. He also serves as a Director of First Securities Limited and First Worldsec Securities Limited. Mr. Chen holds an M.S. in Business Management from Oklahoma City University, USA. His extensive career includes serving as Branch Manager of Capital Securities Corp.; Director of Grand Cathay Futures Corp.; Regional Head of the Brokerage Business Division and Head of the Corporate Business Division at Dahua Securities; Independent Director and Member of the Remuneration Committee of Shihlin Paper Co., Ltd.; and Independent Director and Member of the Audit Committee of Wan Hai Lines Ltd. Furthermore, he has held key leadership roles at Mega Securities and its affiliates, serving as a Director of Mega Futures, Regional Head of the Headquarter Brokerage Business Division, Executive Vice President of the Channel Business Group & Headquarter Brokerage Business Division, and ultimately as President. Mr. Chen possesses years of practical experience and management expertise across the securities, futures, and various interdisciplinary business sectors.
• Meets the professional qualifications for financial holding companies and securities as stipulated in Article 9 of the “Regulations Governing Qualification Requirements and Concurrent Serving Restrictions and Matters for Compliance by the Promoter and Responsible Persons of Financial Holding Companies”.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Serves as the representative of the MOF. The MOF holds over 5% of the Company's issued shares and is the Company's largest shareholder.
• Concurrently serves as the Chairperson of First Securities, a wholly-owned subsidiary of the Company.
• All other independence criteria have been verified and found to be in compliance with the FSC's “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.	-
Hsin-Lu Chang	• Ms. Hsin-Lu Chang holds a Ph.D. in Information Management from the University of Illinois at Urbana-Champaign, USA. Her primary research areas include E-commerce, Information Strategy, Digital Innovation, and Service Science. She currently serves as a Professor in the Department of Information Management at National Chengchi University and as the Director of the Office of Innovation and Entrepreneurship at the College of Commerce. She has received numerous Excellence in Teaching and Research awards from the university. Her previous leadership roles at National Chengchi University include serving as a Mentor at the College of Commerce, Director of the Supply Chain Research Center, CEO of the Mobile Payment and IoT Group at the Fintech Research Center, and Director of the Office of Innovation and Entrepreneurship. Ms. Chang possesses profound theoretical knowledge and practical experience in information technology. She has served as a Director of the Company representing the Ministry of Finance since July 2021.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Serves as the representative of the MOF. The MOF holds over 5% of the Company's issued shares and is the Company's largest shareholder.
• Concurrently serves as the Director of First Bank.
• All other independence criteria have been verified and found to be in compliance with the FSC's “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.	-

Name	Professional Qualification and Experience	Independence Status	Number of Other Public Companies Where the Individual Concurrently Serves as an Independent Director
Shih-Yuan Tai	• Mr. Shih-Yuan Tai currently serves as the Executive Vice President of the Bank of Taiwan. He has served as a Director of the Company representing the Bank of Taiwan since August 2022. Prior to this, since January 2017, he has held various key positions including Deputy Director of the Staff Training Institute, Deputy Head and Head of the Human Resources Department, and Chief Secretary to the Board of Directors at the Bank of Taiwan. Furthermore, he has served as a Managing Director of Taiwan Business Bank, a Director of Taiwan Fire and Marine Insurance Co., Ltd., and a Director, Acting Chairperson, and President of BankTaiwan Life Insurance Agency Co., Ltd. Mr. Tai holds a B.S. in Mechanical Engineering from National Taiwan University of Science and Technology and possesses extensive experience in the banking and insurance industries.
• Meets the professional qualifications for financial holding companies and banks as stipulated in Article 9 of the “Regulations Governing Qualification Requirements and Concurrent Serving Restrictions and Matters for Compliance by the Promoter and Responsible Persons of Financial Holding Companies”.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Serves as the representative of Bank of Taiwan.
• All other independence criteria have been verified and found to be in compliance with the FSC’s “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.	-
Chen-Ching Tien	• Mr. Chen-Ching Tien currently serves as the Attorneys-at-Law & Managing Partner of T.Y.T Law Offices and the Chairperson of T.Y.T Development Co., Ltd. He also concurrently serves as a Director of the Asia Pacific Science & Technology Association, Director of Ruchuan Sustainability Foundation, Independent Director of Xzentria Tech Materials Co., Ltd. and Director, Yu Yang Digi Co.,Ltd. Mr. Tien holds an LL.B. from Fu Jen Catholic University. Since 2011, he has successively held positions including Director of Grand Pacific Petrochemical Corp.; Independent Director of Allied Industrial Corp., Ltd.; and Adjunct Assistant Professor Rank Specialist at the School of Law, Fu Jen Catholic University. He possesses extensive academic and practical experience in the legal field.
• Meets the professional qualifications for financial holding companies and banks as stipulated in Article 9 of the “Regulations Governing Qualification Requirements and Concurrent Serving Restrictions and Matters for Compliance by the Promoter and Responsible Persons of Financial Holding Companies”.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Serves as the representative of Bank of Taiwan.
• All other independence criteria have been verified and found to be in compliance with the FSC’s “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.	-

Name	Professional Qualification and Experience	Independence Status	Number of Other Public Companies Where the Individual Concurrently Serves as an Independent Director
An-Fu Chen	• Mr. An-Fu Chen currently serves as the Chairperson of Global Vision Investment Co., Ltd. He has served as a Director of the Company representing Global Vision Investment Co., Ltd. since May 2009, and has concurrently held a directorship at the subsidiary, First Life Insurance, since November 2018. Mr. Chen holds a B.S. in Pharmacy from Taipei Medical University. Since 1992, he has successively held key leadership roles, including Executive Vice President of Transamerica Occidental Life Insurance Co., Executive Vice President of TransGlobe Life Insurance Inc., and Director of Mingtai Insurance Co., Ltd. He has accumulated extensive experience and management expertise in investment and insurance operations.
• Meets the professional qualifications for financial holding companies and insurance as stipulated in Article 9 of the “Regulations Governing Qualification Requirements and Concurrent Serving Restrictions and Matters for Compliance by the Promoter and Responsible Persons of Financial Holding Companies”.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Serves as the representative of Global Vision Investment Co., Ltd.
• Concurrently serves as Director of First Life Insurance, a wholly-owned subsidiary of the Company.
• All other independence criteria have been verified and found to be in compliance with the FSC’s “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.	-
Rachel J. Huang	• Ms. Rachel J. Huang has served as an Independent Director of the Company since June 2018, and has concurrently held the position of Independent Director of the subsidiary, First Bank, since July 2018. Ms. Huang holds a Ph.D. in Finance from National Taiwan University and currently serves as a Distinguished Professor in the Department of Finance at National Central University. Since 2008, she has successively held positions as an Associate Professor in the Department of Finance at Ming Chuan University, Yuan Ze University, and the Graduate Institute of Finance at National Taiwan University of Science and Technology, as well as a Professor in the Department of Finance at National Central University. Furthermore, she has served as the Managing Director of the Taiwan Risk and Insurance Association, Supervisor of the Taiwan Econometric Society, Director of the Taiwan Financial Engineering Association, President of the European Group of Risk & Insurance Economists, Director of the American Risk and Insurance Association, and Secretary of the Risk Theory Society. A recipient of the 2023 National Science and Technology Council Outstanding Research Award, Ms. Huang possesses profound professional expertise in the fields of banking, finance, insurance, and risk management.
• Meets the professional qualification requirements stipulated in Article 2 of the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Meets the qualification requirements stipulated in the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies” promulgated by the FSC and Article 14-2 of the Securities and Exchange Act.
• Has been granted sufficient authority in accordance with Article 14-3 of the Securities and Exchange Act to participate in decision-making and express opinions, enabling the independent exercise of relevant duties.
• Concurrently serves as an Independent Director of First Bank, a wholly-owned subsidiary of the Company.	1

Name	Professional Qualification and Experience	Independence Status	Number of Other Public Companies Where the Individual Concurrently Serves as an Independent Director
Chun-Hung Lin	• Mr. Chun-Hung Lin holds a Ph.D. in Economics from Iowa State University, USA, as well as an M.S. in Computer Science and an M.S. in Engineering Management from the University of Missouri, USA. He possesses professional expertise in economics, engineering management, and computer science. Currently, he serves as a Professor in the Department of Industrial Economics and the Vice President for Administrative Affairs at Tamkang University. Since August 2006, his leadership roles at Tamkang University have included Chair of the Department of Economics, Executive Director of the EMBA Program, Dean of Student Affairs, Dean of Academic Affairs, and Vice President of the Lanyang Campus. He has also served as a Director of the Taiwan Economic Association and a Director of Qi-Hang II Venture Capital Co., Ltd. Mr. Lin has served as an Independent Director of the Company since June 2018, and has concurrently held the position of Managing Independent Director of the subsidiary, First Bank, since July 2018. Mr. Lin possesses diverse and extensive experience in both academia and industry.
• Meets the professional qualification requirements stipulated in Article 2 of the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Meets the qualification requirements stipulated in the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies” promulgated by the FSC and Article 14-2 of the Securities and Exchange Act.
• Has been granted sufficient authority in accordance with Article 14-3 of the Securities and Exchange Act to participate in decision-making and express opinions, enabling the independent exercise of relevant duties.
• Concurrently serves as a Managing Independent Director of First Bank, a wholly-owned subsidiary of the Company.	1
Wen-Ling Hung	• Ms. Wen-Ling Hung has served as an Independent Director of the Company since July 2021. Ms. Hung holds a Ph.D. in Law from National Chengchi University, specializing in Administrative Law, Money Laundry Control Act and Police Regulations. Since 1999, she has served as a Professor at the Department of Administrative Police and the Graduate School of Police Policy at Central Police University, and previously concurrently served as the Chair of the Department of Administrative Police and the Director of the Institute of Police Policy Research, Dean of the College of Justice Administration at Central Police University, and Director of Mega Financial Holding Co., Ltd. and Mega International Commercial Bank. Currently, she serves as a Director of the Police Academic Research Foundation, Member of the Petition and Appeals Committee of the Ministry of Labor, Member of the Petition and Appeals Committee of the Ministry of Finance, Member of the Petition and Appeals Committee of the Ministry of the Interior, and Member of the Petition and Appeals Committee, and Ministry of Health and Welfare. Ms. Hung possesses profound expertise and practical experience in both the financial and legal sectors.
• Meets the professional qualification requirements stipulated in Article 2 of the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.	• Meets the qualification requirements stipulated in the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies” promulgated by the FSC and Article 14-2 of the Securities and Exchange Act.
• Has been granted sufficient authority in accordance with Article 14-3 of the Securities and Exchange Act to participate in decision-making and express opinions, enabling the independent exercise of relevant duties.	-

Name	Professional Qualification and Experience	Independence Status
	• There have been no circumstances violating the provisions of the Article 30 of Company Act.
Hung-Yu Lin	• Ms. Hung-Yu Lin has served as an Independent Director of the Company since July 2021. Ms. Lin holds a Ph.D. in Economics from National Central University. Since 2012, she has successively served as an Associate Researcher, Project Leader, and Researcher in Research Division II at the Taiwan Institute of Economic Research, as well as an Adjunct Assistant Professor in the Department of International Business at Soochow University. Her research focuses on industrial analysis, international trade, econometrics, and time-series analysis, providing her with profound professional expertise in economics and international business. She currently serves as the Vice Dean of Research Division II at the Taiwan Institute of Economic Research. Her additional concurrent roles include Director of HanTech Venture Capital Corporation, BMD Venture Capital Investment Corporation, and Universal Venture Capital Investment Corporation; Independent Director of Taiwan Navigation Co., Ltd.; and Director of The Prospect Foundation.
• Meets the professional qualification requirements stipulated in Article 2 of the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.	• Meets the qualification requirements stipulated in the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies” promulgated by the FSC and Article 14-2 of the Securities and Exchange Act.
• Has been granted sufficient authority in accordance with Article 14-3 of the Securities and Exchange Act to participate in decision-making and express opinions, enabling the independent exercise of relevant duties.	1
Chi-Chang Yu	• Mr. Chi-Chang Yu has served as an Independent Director of the Company since June 2024. Mr. Yu holds a J.S.D. from Stanford University. Since 1978, he has successively held positions as a Judge of the Hualien, Yilan, and Banqiao Branch of the Taipei District Court; Partner of Lee and Li, Attorneys-at-Law; Member of the Complaint Review Committee for Government Procurement, Executive Yuan; Member of the Complaint Review Committee, Ministry of Finance; Managing Independent Director of the Agricultural Bank of Taiwan; Independent Director of Chang Hwa Bank; Independent Director of Mega Financial Holdings Co., Ltd.; and Assistant Professor, Associate Professor, and Adjunct Associate Professor of the Department of Industrial and Business Management at Chang Gung University. Currently, he serves as an Adjunct Associate Professor in the Department of Accounting at National Taiwan University; Adjunct Associate Professor at the School of Law, Soochow University; and Adjunct Professor Rank Specialist in the Department of Industrial and Business Management at Chang Gung University. His concurrent roles also include Member of the Administrative Appeals Committee, Ministry of Finance; Managing Supervisor of the Taiwan Institute of Economic Research; Director of the Taiwan Trust Association; and Independent Director of Mytrex Health Technologies, Inc.	• Meets the qualification requirements stipulated in the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies” promulgated by the FSC and Article 14-2 of the Securities and Exchange Act.
• Has been granted sufficient authority in accordance with Article 14-3 of the Securities and Exchange Act to participate in decision-making and express opinions, enabling the independent exercise of relevant duties.	1

Name	Professional Qualification and Experience	Independence Status	Number of Other Public Companies Where the Individual Concurrently Serves as an Independent Director
	Mr. Yu possesses exceptionally comprehensive management knowledge and practical experience in both the financial and legal sectors.
• Meets the professional qualification requirements stipulated in Article 2 of the “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”.
• There have been no circumstances violating the provisions of the Article 30 of Company Act.

2.1.5 Board Diversity and Independence Status

I. Board Diversity

The Company's "Corporate Governance Best Practice Principles" explicitly stipulate that the composition of the Board of Directors shall consider diversity. In addition to the requirement that directors concurrently serving as managers of the Company or its subsidiaries should not exceed one-third of the total board seats, the Board shall include at least one female director. Furthermore, it is advisable that each gender accounts for at least one-third of the board seats. Members of the Board shall possess industry experience in banking, insurance, securities, and investment, along with professional skills in law, accounting, finance, taxation, technology, or risk management. Directors are expected to generally possess the knowledge, skills, and competencies necessary to perform their duties. Additionally, based on the business nature of the major subsidiaries, at least one director with expertise in each respective subsidiary's field shall be appointed. The Board should also consist of directors with diverse professional backgrounds, genders, and work experience. To implement the aforementioned Board Diversity Policy, the Company has established the goal of having at least one-third of board seats held by either gender, and ensuring each subsidiary appoints at least one female director or supervisor, as part of its sustainable development goals, which are reviewed and tracked annually.

The industry experience and professional skills of the members of the 8th Board of Directors cover a wide range of fields relevant to the operation and management of the financial holding industry. As a whole, the Board possesses capabilities in operational judgment, business management, leadership, financial analysis, crisis management, and decision-making, while maintaining extensive knowledge of international markets, industry trends, and risk management. As of December 31, 2025, female directors accounted for 46.7% of the Board (7 out of 15 seats), with either gender representing more than one-third of the board seats. Furthermore, only one director concurrently serves as a manager of the Company or its subsidiaries.

Implementation Status of Board Diversity for the 8th Board of Directors

As of April 20, 2026

| Core Diversity
Pillars | Industry Experience | | | Professional Background and Skills | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Banking | Insurance | Securities | Law | Accounting | Finance | Taxation | Technology | Risk mgmt. | Economics | Environment | Social |
| Chairperson | Ye-Chin Chiou | V | | V | | | | | | | V | | |
| Director & President | Frank Y. C. Fang | V | V | V | | V | V | V | | V | | | |
| Director | Lin-Na Huang | | | | V | | | | | | | | V |
| Director | Ming-Chi Lee | | | V | | | | V | | | | | V |
| Director | Shing-Rong Lo | V | | | | V | | | | | | | |
| Director | Chih-Chuan Chen | | | V | | | V | | | | | | |
| Director | Hsin-Lu Chang | | | | | | | | V | | | | |
| Director | Shih-Yuan Tai | V | V | | | | | | V | | | | |
| Director | Chen-Ching Tien | | | | V | | | | | | | | |
| Director | An-Fu Chen | | V | | | | | | | | | | V |
| Independent Director | Rachel J. Huang | V | | | | | V | | | V | | | |
| Independent Director | Chun-Hung Lin | V | | | | | | | V | | V | | |
| Independent Director | Wen-Ling Hung | V | | | V | | | | | | | | |
| Independent Director | Hung-Yu Lin | | | | | | | | | | V | | |
| Independent Director | Chi-Chang Yu | V | | | V | V | | V | | | | | |

II. Board Independence

The Company's 8th Board of Directors is composed of 15 directors, including 5 independent directors. This one-third representation complies with the "Taiwan Stock Exchange Corporation Operation Directions for Compliance with the Establishment of Board of Directors by TWSE Listed Companies and the Board's Exercise of Powers" regarding the required number and ratio of independent directors. Furthermore, no spousal or second-degree kinship relationships exist among the directors, in accordance with Paragraph 3, Article 26-3 of the "Securities and Exchange Act." Notably, all independent directors have served no more than three consecutive terms. These measures effectively enhance the quality of supervision, minimize potential conflicts of interest, and further strengthen the independence of the Company's Board.

As of April 20, 2026

2.1.6 Information On President, Executive Vice Presidents, Senior Vice Presidents And Heads Of Each Division And Unit

Title	Nationality	Name	M/F	Date Elected (Appointed)	Shares Held by Self		Shares Held by Spouse, and Minor Children		Shares Held through Nominees
					Shares	%	Shares	%	Shares	%
President	R.O.C.	Frank Y. C. Fang	M	2024/08/26	156,697	0	0	0	0	0
EVP & Head of Strategy Planning Division	R.O.C.	Annie Lee	F	2020/12/25	122,026	0	0	0	0	0
EVP & Chief Cyber Security Officer	R.O.C.	Pei-Wen Liu	M	2022/04/21	0	0	0	0	0	0
EVP & Chief Compliance Officer	R.O.C.	Iris Hsu	F	2026/03/31	127,177	0	0	0	0	0
Chief Auditor & Head of Auditing Division	R.O.C.	Mico H.C. Lin	F	2020/07/20	0	0	0	0	0	0
Chief Secretary to the Board of Directors & Chief Corporate Governance Officer	R.O.C.	Li-Fang Hung	F	2020/06/30	6,442	0	0	0	0	0
Head of Administration Management Division	R.O.C.	Shui-Lien Wang	F	2025/05/31	0	0	0	0	0	0
Head of Risk Management Division	R.O.C.	Patty Tsai	F	2024/01/31	0	0	0	0	0	0
Head of Business Development Division	R.O.C.	Jenny M. C. Wu	F	2024/01/31	0	0	0	0	0	0
Acting Head & Deputy Head of Information Technology Division	R.O.C.	Chih-Ping Wang	M	2022/04/21	48,399	0	0	0	0	0
Acting Head & Deputy Head of Compliance Division	R.O.C.	Karen Hsu	F	2024/12/27	122,125	0	0	0	0	0

(Table Continued)

As of April 20, 2026

| Title
(Note 1) | Name | Primary Academic and Professional Experience | Current Positions Held in Other Companies | Managers who are spouses or within two degrees of kinship | | | Remarks |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | Title | Name | Relationship | |
| President | Frank Y. C. Fang | M.S. in Business Management, Sun Yat-Sen University
Head of Accounting, Operation Planning & Administration, Credit Approval, and Risk Management Divisions, as well as Branch Manager of First Bank ; Chief Secretary to the Board of Directors, First Financial Holding & First Bank; Vice President of First Financial Holding; Vice President of First Bank & Head of Risk Management Division of First Financial Holding; Supervisor of FCB Leasing Co.; Supervisor of First Insurance Agency Co./ First Property and Casualty Industry Agency Co.; Director of First Consulting/First Venture Capital Co.; Supervisor of First Securities Investment Trust Co.; Director of Taiwan Asset Management Corporation; Supervisor of Taiwan Small & Medium Enterprise Counseling Foundation; Member of Review Committee for Prepayment of Reserves for Losses, Small & Medium Enterprise Credit Guarantee Fund of Taiwan. | Managing Director, First Bank;
Director, First Life Insurance;
Director, First Bank Education and Culture Foundation. | - | - | - | - |
| EVP & Head of Strategy Planning Division | Annie Lee | B.A. in International Trade, National Taiwan University.
Senior Manager of SME Business Dept. of First Bank; Deputy Head of Strategy & Planning Division & IR Head, Senior Manager, Research Fellow & Secretary to the Presidents Office, Deputy Head of Financial Investment Division of First Financial Holding; Director of First Life Insurance. | Supervisor, First Securities Investment Trust;
Member of the Financial Holding Business Committee, Bankers Association of the R.O.C. | - | - | - | - |
| EVP & Chief Cyber Security Officer | Pei-Wen Liu | Ph.D. in Electrical Engineering. National Cheng Kung University.
Chief of Information Technology Service Center of National Information and Communication Security Task Force, Executive Yuan; Deputy Head of Cybersecurity Institute of Institute for Information Industry; CEO of National Center for Cyber Security Technology, Executive Yuan; EVP & Head of Information Technology Division of First Bank. | EVP, First Bank;
Supervisor, Financial Information Service Co.;
External Representative of the Financial Cybersecurity Advisor Group, Financial Supervisory Commission. | - | - | - | - |

| Title
(Note 1) | Name | Primary Academic and Professional Experience | Current Positions Held in Other Companies | Managers who are spouses or within two degrees of kinship | | | Remarks |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | Title | Name | Relationship | |
| EVP & Chief Compliance Officer | Iris Hsu | B.A. in B.A. in Department of Law, National Taiwan University
Head of Special Asset Management Division, First Bank; Branch Manager of First Bank; Director of Taiwan Financial Asset Service Corporation; Director and Supervisor of First Financial Asset Management; Director of FCB Leasing (Chengdu) Ltd. | EVP & Chief Compliance Officer, First Bank;
Director, First Venture Capital;
Director, First Consulting;
Director, First Commercial Bank (U.S.A.); | - | - | - | - |
| Chief Auditor & Head of Auditing Division | Mico H.C. Lin | M.S. in Finance, National Taiwan University of Science and Technology.
Manager of Overseas Affairs Division, Manager of International Division, Manager of Risk Management Division, Manager of Corporate Banking Division, Branch Manager of Overseas Branch, Branch Manager of OBU Business, First Bank. | Supervisor, First Securities;
Chairperson of the Internal Audit Committee, Bankers Association of the R.O.C. | - | - | - | - |
| Chief Secretary of the Board of Directors & Chief Corporate Governance Officer | Li-Fang Hung | B.A. in Business Administration, National Taiwan University
Manager of Treasury Division/ Financial Markets Business Administration Division, Manager & Deputy Head of Financial Markets Business Unit, Branch Manager of First Bank; Secretary to the Board of Directors of First Bank & First Financial Holding; Director of First Venture Capital; Director of First Consulting. | Chief Secretary to the Board of Directors, First Bank; Supervisor, First Venture;
Supervisor, First Consulting. | - | - | - | - |
| Head of Administration Management Division | Shui-Lien Wang | B.A. in Economics, National Chung Hsing University
Deputy Head of Administration Management Division of First Financial Holding; Branch Manager, Deputy Head of Personal Banking Business Administration Division of First Bank; Assistant Vice President of Kaohsiung Liaison Office of First Financial Asset Management. | Supervisor of First Securities Investment Trust. | - | - | - | - |

Note 1: The scope of responsible persons in this table is defined in accordance with the "Regulations Governing Qualification Requirements for the Founder or Responsible Persons of Financial Holding Companies and Concurrent Serving Restrictions and Matters for Compliance by the Responsible Persons of a Financial Holding Company". It includes all individuals, regardless of job titles, whose positions are equivalent to President, Executive Vice Presidents, or Assistant Vice Presidents.

Note 2: The Company has no instances where the President or an equivalent top manager is the same person as, a spouse of, or a first-degree kinship of the Chairperson.

2.1.7 Information On Retired Chairpersons Or Presidents Serving As The Company's Consultants

None.

2.1.8 Remuneration Paid To Directors, Independent Directors, President, Vice Presidents And Other Key Managers, And The Distribution Of Employee Compensation For the Most Recent Year

The Company has encountered none of the following circumstances and hereby, pursuant to the regulations, discloses aggregate remuneration information with names indicated for each remuneration range:

(1) The company's most recent capital adequacy ratio, whether preliminary, CPA-reviewed, or adjusted following the Financial Supervisory Commission (FSC) examination, is below 100%;

(2) There were after-tax losses in the stand-alone financial statements during the most recent three fiscal years;

(3) A capital increase plan was not completed as required by any order of the FSC;

(4) Directors' shareholding percentage was insufficient for three consecutive months or longer during the most recent fiscal year;

(5) The average ratio of share pledging by directors exceeded 50% in any three months during the most recent fiscal year;

(6) The total remuneration received by all directors in their capacities as directors or supervisors of all of the companies included in the financial reports exceeds 2% of the net income after tax, and the remuneration received by any director or supervisor exceeds NT$15 million;

(7) The Company was ranked within the lowest two tiers in the Corporate Governance Evaluation for the most recent fiscal year; or, during the most recent fiscal year or up to the publication date of this annual report, its listed securities were placed under an altered trading method, suspended from trading, delisted from the Taiwan Stock Exchange (TWSE) or the Taipei Exchange (TPEx), or excluded from evaluation by the Corporate Governance Evaluation Committee;

(8) For companies required to file such information, the average annual salary of full-time non-management employees was less than NT$500,000 during the most recent fiscal year, pursuant to the TWSE Rules Governing Information Filing by Companies with TWSE Listed Securities and Offshore Fund Institutions;

(9) Net income after tax increased by 10% or more during the most recent fiscal year, but the average annual salary of full-time non-management employees did not increase compared to the preceding year;

(10) Net income after tax decreased by 10% and exceeded NT$5 million during the most recent fiscal year, while the average remuneration per director (excluding remuneration for concurrent employees) increased by 10% or more and exceeded NT$100,000.

I. Remuneration of Directors and Independent Directors

(Aggregate remuneration with names indicated by range) (2025/12/31)

Title	Name	Remuneration to Directors
		Base Compensation (A)
		The Company	All Companies in the financial statements
Non-independent Directors	Director	Ministry of Finance (MOF)	2,071,613	16,294,613
	Director	Bank of Taiwan
	Director	Global Vision Investment Co., Ltd.
	Chairperson	Ye-Chin Chiou (MOF Representative)
	Director & President	Frank Y. C. Fang (MOF Representative)
	Director	Lin-Na Huang Note 1 (MOF Representative)
	Director	Ming-Chi Lee (MOF Representative)
	Director	Shing-Rong Lo (MOF Representative)
	Director	Chih-Chuan Chen (MOF Representative)
	Director	Hsin-Lu Chang (MOF Representative)
	Director	Shih-Yuan Tai (Bank of Taiwan Representative)
	Director	Chen-Ching Tien (Bank of Taiwan Representative)
Director	An-Fu Chen (Global Vision Investment Co., Ltd. Representative
Independent Directors	Independent Director	Rachel J. Huang	3,600,000	4,284,900
	Independent Director	Chun-Hung Lin
	Independent Director	Wen-Ling Hung
	Independent Director	Hung-Yu Lin
	Independent Director	Chi-Chang Yu

Note 1: On May 14, 2025, the Ministry of Finance appointed Ms. Ling-Na Huang as its representative director.
Note 2: Regarding the remuneration policy, system, standards, and structure for Independent Directors, and its linkage to their duties, risks, and time invested, please refer to the section "Remuneration Policies, Standards, and Packages; the procedures for determining remuneration and its linkage to operating performance and future risk exposure" on page 46 of this annual report.

(Table Continued)

Unit: NT$, %

Remuneration to Directors						Total of four components A, B, C and D and its Ratio to Net Income
Severance & Pension (B)		Director Compensation (C)		Allowances for Business Expenses (D)
The Company	All Companies in the financial statements	The Company	All Companies in the financial statements	The Company	All Companies in the financial statements	The Company		All Companies in the financial statements
						Amount	%	Amount	%
0	0	247,304,883	247,304,883	67,388	1,934,827	249,443,884	0.9262	265,534,323	0.9859
0	0	0	0	163,333	185,333	3,763,333	0.0140	4,470,233	0.0166

Note 3: In addition to the above disclosure, the remuneration received by directors for providing services (e.g., serving as non-employee consultants for the Company, all entities included in the financial statements, or re-investment enterprises) during the most recent fiscal year was NT$0.
Note 4: The total remuneration paid to drivers amounted to NT$2,795,615.
Note 5: Net income in the Company's 2025 stand-alone financial statements was NT$26,932,848,027.

Title	Name	Remuneration to Directors with Concurrent Employee Status
		Salaries, Bonuses, and Special Allowances, etc. (E)		Severance & Pension (F)
		The Company	All Companies in the financial statements	The Company	All Companies in the financial statements
Non-independent Directors	Director	Ministry of Finance (MOF)	6,762,926	6,762,926	0	0
	Director	Bank of Taiwan
	Director	Global Vision Investment Co., Ltd.
	Chairperson	Ye-Chin Chiou (MOF Representative)
	Director & President	Frank Y. C. Fang (MOF Representative)
	Director	Lin-Na Huang Note 1 (MOF Representative)
	Director	Ming-Chi Lee (MOF Representative)
	Director	Shing-Rong Lo (MOF Representative)
	Director	Chih-Chuan Chen (MOF Representative)
	Director	Hsin-Lu Chang (MOF Representative)
	Director	Shih-Yuan Tai (Bank of Taiwan Representative)
	Director	Chen-Ching Tien (Bank of Taiwan Representative)
Director	An-Fu Chen (Global Vision Investment Co., Ltd. Representative
Independent Directors	Independent Director	Rachel J. Huang	0	0	0	0
	Independent Director	Chun-Hung Lin
	Independent Director	Wen-Ling Hung
	Independent Director	Hung-Yu Lin
	Independent Director	Chi-Chang Yu

Unit: NT$ , %

Remuneration to Directors with Concurrent Employee Status				Total of seven components A, B, C, D, E, F, and G and its Ratio to Net Income	Remuneration Received from Reinvestee Enterprises Other than Subsidiaries
Employee Compensation (G)
The Company		All Companies in the financial statements		The Company		All Companies in the financial statements
Cash Amount	Stock Amount	Cash Amount	Stock Amount	Total		%	Total	%
0	0	0	0	256,206,810	0.9513	272,297,249	1.0110	124,800
0	0	0	0	3,763,333	0.0140	4,470,233	0.0166	0

Remuneration Range Table

Remuneration Range for Non-independent Directors of the Company	Names of Non-independent Directors
	Total Remuneration of the first four components (A + B + C + D)		Total Remuneration of the first seven components (A + B + C + D + E + F + G)
	The Company	All Companies in the financial statements	The Company	All Companies in the financial statements
Under NT$1,000,000	Frank Y. C. Fang, Lin-Na Huang, Ming-Chi Lee, Shing-Rong Lo, Chih-Chuan Chen, Hsin-Lu Chang	Frank Y. C. Fang, Lin-Na Huang, Ming-Chi Lee, Shing-Rong Lo, Hsin-Lu Chang, An-Fu Chen	Lin-Na Huang, Ming-Chi Lee, Shing-Rong Lo, Chih-Chuan Chen, Hsin-Lu Chang	Lin-Na Huang, Ming-Chi Lee, Shing-Rong Lo, Hsin-Lu Chang, An-Fu Chen
NT$1,000,000 (inclusive) ~NT$2,000,000 (exclusive)
NT$2,000,000 (inclusive) ~NT$3,500,000 (exclusive)
NT$3,500,000 (inclusive) ~NT$5,000,000 (exclusive)
NT$5,000,000 (inclusive) ~NT$10,000,000 (exclusive)		Frank Y. C. Fang, Chih-Chuan Chen	Frank Y. C. Fang	Ye-Chin Chiou, Frank Y. C. Fang, Chih-Chuan Chen
NT$10,000,000 (inclusive) ~NT$15,000,000 (exclusive)
NT$15,000,000 (inclusive) ~NT$30,000,000 (exclusive)	Global Vision Investment Co., Ltd.	Global Vision Investment Co., Ltd.	Global Vision Investment Co., Ltd.	Global Vision Investment Co., Ltd.
NT$30,000,000 (inclusive) ~NT$50,000,000 (exclusive)	Bank of Taiwan	Bank of Taiwan	Bank of Taiwan	Bank of Taiwan
NT$50,000,000(inclusive) ~NT$100,000,000 (exclusive)
NT$100,000,000 and above	Ministry of Finance	Ministry of Finance	Ministry of Finance	Ministry of Finance
Total	9	11	9	11

Remuneration Range for Independent Directors of the Company	Independent Directors
	Total Remuneration of the first four components (A + B + C + D )		Total Remuneration of the first seven components (A + B + C + D + E + F + G )
	The Company	All Companies in the financial statements	The Company	All Reinvestee Enterprise
Under NT$1,000,000	Rachel J. Huang, Chun-Hung Lin, Wen-Ling Hung, Hung-Yu Lin, Chi-Chang Yu	Wen-Ling Hung, Hung-Yu Lin, Chi-Chang Yu	Rachel J. Huang, Chun-Hung Lin, Wen-Ling Hung, Hung-Yu Lin, Chi-Chang Yu	Wen-Ling Hung, Hung-Yu Lin, Chi-Chang Yu
NT$1,000,000 (inclusive) ~NT$2,000,000 (exclusive)		Rachel J. Huang, Chun-Hung Lin		Rachel J. Huang, Chun-Hung Lin
NT$2,000,000 (inclusive) ~NT$3,500,000 (exclusive)
NT$3,500,000 (inclusive) ~NT$5,000,000 (exclusive)
NT$5,000,000 (inclusive) ~NT$10,000,000 (exclusive)
NT$10,000,000 (inclusive) ~NT$15,000,000 (exclusive)
NT$15,000,000 (inclusive) ~NT$30,000,000 (exclusive)
NT$30,000,000 (inclusive) ~NT$50,000,000 (exclusive)
NT$50,000,000(inclusive) ~NT$100,000,000 (exclusive)
NT$100,000,000 and above
Total	5	5	5	5

II. Remuneration of the President and Vice Presidents

(Aggregate remuneration with names indicated by range) (2025/12/31)

Title	Name	Salaries (A)		Severance & Pension (B)		Bonuses & Special Allowances (C)
		The Company	All Companies in the financial statements	The Company	All Companies in the financial statements	The Company	All Companies in the financial statements
President	Frank Y. C. Fang	9,503,304	15,836,896	0	0	7,607,307	11,511,284
EVP & Head of Strategy Planning Division	Annie Lee
EVP & Chief Cyber Security Officer	Pei-Wen Liu
EVP & Chief Compliance Officer	Jenn-Hua Wang
Chief Auditor & Head of Auditing Division	Mico H.C. Lin

Note 1: The total remuneration paid to drivers amounted to NT$6,193,937.
Note 2: Pursuant to the "Regulations Governing Qualification Requirements for the Founder or Responsible Persons of Financial Holding Companies and Concurrent Serving Restrictions and Matters for Compliance by the Responsible Persons of a Financial Holding Company", the scope of responsible persons in this table includes all individuals, regardless of job titles, whose positions are equivalent to the President or Executive Vice Presidents.

Unit: NT$, %

Employee Compensation (D)				Total of four components (A, B, C, and D) and its ratio to net income				Remuneration Received from Reinvestee Enterprises Other than subsidiaries
The Company		All Companies in the financial statements		The Company		All Companies in the financial statements
Cash Amount	Stock Amount	Cash Amount	Stock Amount	Total	%	Total	%
1,331,441	0	2,003,086	0	18,442,052	0.0685	29,351,266	0.1090	354,381

Remuneration Range Table

Remuneration Range for President and Vice Presidents of the Company	President and Vice Presidents
	The Company	All Reinvestee Enterprises
Under NT$1,000,000	Pei-Wen Liu
NT$1,000,000 (inclusive) ~NT$2,000,000 (exclusive)	Jenn-Hua Wang
NT$2,000,000 (inclusive) ~NT$3,500,000 (exclusive)
NT$3,500,000 (inclusive) ~NT$5,000,000 (exclusive)	Mico H.C. Lin	Mico H.C. Lin
NT$5,000,000 (inclusive) ~NT$10,000,000 (exclusive)	Frank Y. C. Fang, Annie Lee	Frank Y. C. Fang, Annie Lee, Pei-Wen Liu, Jenn-Hua Wang
NT$10,000,000 (inclusive) ~NT$15,000,000 (exclusive)
NT$15,000,000 (inclusive) ~NT$30,000,000 (exclusive)
NT$30,000,000 (inclusive) ~NT$50,000,000 (exclusive)
NT$50,000,000(inclusive) ~NT$100,000,000 (exclusive)
NT$100,000,000 and above
Total	5	5

III. Employee Compensation Distributed to Managers, with names and distribution status indicated
Unit: NT$, %

Title	Name	Stock Amount	Cash Amount	Total	Total and its Ratio to Net Income (%)
EVP & Head of Strategy Planning Division	Annie Lee	0	2,778,383	2,778,383	0.0103
Chief Auditor & Head of Auditing Division	Mico H.C. Lin
Head of Administration Management Division	Mandy Horng (Note 1)
Head of Administration Management Division	Shui-Lien Wang (Note 1)
Head of Business Development Division	Jenny M. C. Wu
Acting Head & Deputy Head of Compliance Division	Karen Hsu

Note 1: Ms. Mandy Horng, Head of the Administrative Management Division, retired in May 2025; Ms. Shui-Lien Wang succeeded her in this position.
Note 2: Employee compensation is calculated based on the actual amount for the 2025 fiscal year as approved by the Board of Directors.

IV. Top 10 Recipients of Employee Compensation in 2025, with names, job titles, and total compensation indicated

Unit: in NT$

Name	Title	Stock Amount	Cash Amount
Annie Lee	EVP & Head of Strategy Planning Division	0	3,809,882
Jenn-Hua Wang	VP & Chief Compliance Office
Mico H.C. Lin	Chief Auditor & Head of Auditing Division
Mandy Horng (Note)	Head of Administration Management Division
Jenny M. C. Wu	Head of Business Development Division
Shu-Wen Chiou	Deputy Head of Auditing Division
Tan-Feng Hsieh	Deputy Head of Business Development Division
Jason Wang	Manager
Hui-An Tsang	Manager
Huang-Han Lee	Manager

Note 1: Ms. Mandy Horng, Head of the Administrative Management Division, retired in May 2025; Ms. Shui-Lien Wang succeeded her in this position.

V. Analysis of Total Remuneration paid to Directors, the President, and Vice Presidents by the Company and all consolidated subsidiaries in the most recent two years, and its ratio to net income in the Company's Stand-alone Financial Statements.

Unit: NT$, %

Year		2024		2025
Title		Total Amount	%	Total Amount	%
Directors	The Company	246,065,879	0.9703	259,970,143	0.9653
	All Companies in the consolidated financial statements	276,846,158	1.0917	276,767,482	1.0276
President & Vice Presidents	The Company	21,909,192	0.0864	18,442,052	0.0685
	All Companies in the consolidated financial statements	44,775,790	0.1766	29,351,266	0.1090

VI. Remuneration Policies, Standards, and Packages; the procedures for determining remuneration and its linkage to operating performance and future risk exposure

A. Directors

a. Non-independent Directors

Remuneration for Non-independent Directors includes compensation, monthly base remuneration, health check allowances (reimbursed on an actual basis, up to NT$35,000 per person), and actual transportation expenses. The distribution ratio of director compensation is recommended by the Remuneration Committee based on internal/external evaluations across five key dimensions ("participation in the Company's operations, awareness of duties and internal relation management and communication", "improvement of Board decision-making quality and alignment with missions", "Board composition and structure", "Director election, professionalism and continuing education" and "internal control", overall operating performance, sustainable development achievements, and major risk events. The recommended amount is capped at 1% of the pre-tax profit before the deduction of employee and director compensation and is submitted to the Board for approval and reported to the Shareholders' Meeting. Per the resolution of the Shareholders' Meeting, the total monthly base remuneration for all directors is capped at NT$2.4 million, with the Board authorized to determine individual standards. The Chairperson's remuneration is set at 1.25 times the total income received by the President.

b. Independent Directors

The 8th Board of Directors includes five Independent Directors. All Independent Directors serve as members of the Audit Committee, while three Independent Directors also serve on the Remuneration Committee and the Ethical Management Committee, respectively. For details regarding the responsibilities, implementation status, and performance evaluations of Independent Directors and functional committees, please refer to the sections "Implementation Status Of The Board Of Directors", "Performance Evaluation Of The Board of Directors", "Implementation Status Of The Audit Committee", and "Implementation Status Of the Remuneration Committee" in this annual report (Pages 49-65). Pursuant to Article 4 of the "Rules Governing the Scope of Responsibilities of Independent Directors," Independent Directors receive only a fixed monthly remuneration and are not entitled to director compensation from earnings distribution. Considering their roles in functional committees, the 28th meeting of the 3rd Board of Directors resolved that each Independent Director receives a monthly remuneration of NT$60,000.

B. President, Vice Presidents and Division Heads

Legal Basis (Note)	“Article of Incorporation”, “Rules Governing Employee Compensation and Salary”, “Rules Governing the Distribution of Employee Bonuses” and “Rules Governing the Distribution of Employee Compensation”
Distribution Standards	Fixed Remuneration
The remuneration standards are recommended by the Remuneration Committee and approved by the Board of Directors, and are subject to periodic evaluation by the Remuneration Committee.

Variable Remuneration
After considering operating performance (such as financial and non-financial factors), individual performance appraisals, and the Company's future risks exposure, the Remuneration Committee submits proposals to the Board of Directors for approval: |

Legal Basis (Note)
"Article of Incorporation", "Rules Governing Employee Compensation and Salary", "Rules Governing the Distribution of Employee Bonuses" and "Rules Governing the Distribution of Employee Compensation"

Distribution Standards

Performance Bonus

Performance Indicators	Weighting (%)	Description	2025 Achievement Rate (%) / Status
Profitability	70	Including the achievement rate of the current year's pre-tax profit target and its growth rate compared to the previous year.	104.53
Cross-selling	25	Including the achievement rate of the current year's cross-selling revenue target and its growth rate compared to the previous year.	109.32
Sustainable development	5	Achievement rate of the Group's annual ESG targets across various domains.	100.00
Risk	Additional	Including the current year's asset quality, customer complaints, legal compliance, and material internal control incidents.	• Both the capital adequacy ratio and the double leverage ratio comply with the standards of the competent authorities.
• There are no major internal control incidents, nor are there any cases of major administrative penalties imposed by the competent authorities due to violations of financial laws and regulations.
Strategy		Including non-financial and external financial performance indicators such as corporate governance results, sustainable finance achievements, corporate image, and credit ratings.	First Financial Holding continuously refines itself with world-class standards in the field of sustainable development, achieving outstanding results in three major international sustainability indices including MSCI, FTSE, and DJBIC, leading the group to implement the vision of "top brand in sustainable finance" through continuous innovation in sustainability initiatives.
• Achieved the highest AAA rating in the banking category of the MSCI ESG Ratings, a component of the MSCI Global Standard Index, for the 4th time.
• Selected as a component stock of the Dow Jones Sustainability Indices (DJBIC) "World Index" for the 7th consecutive year.
• Received the Leadership Level A rating from the international non-profit organization CDP in three major domains: Climate Change, Water Security, and Forest.
• Selected for inclusion in the London "FTSE4Good Emerging Index" for the 9th consecutive year.
• Featured in the S&P Global Sustainability Yearbook, ranking in the Top 5% of the global banking industry for the 9th time.

The Task Force on Climate-related Financial Disclosures (TCFD) report obtained the highest "LEVEL-5+" certification from the British Standards Institution for the 5th consecutive year.
Ranked in the "Top 5% of the Listed Company Group" in the Taiwan Stock Exchange Corporate Governance Evaluation for the 10th time.
Selected as a "Leading Enterprise in Sustainable Occupational Health" by the Occupational Safety and Health Administration of the Ministry of Labor for the 3rd time.
Won the honor of the "Taiwan Top 100 Sustainability Model Enterprise Award" at the 18th "TCSA Taiwan Corporate Sustainability Awards".
Served as the convener of the "Domestic and International Promotion Working Group" of the "Coalition of Movers and Shakers for Net-Zero in the Financial Industry", responsible for organizing sustainability-related seminars and exchanges, and hosting the "Low-Carbon Transition Corporate Visits" and "AI Financial Technology Innovation and Creativity, Green Finance & Sustainable Net-Zero Competition" in 2025.
Participated in the joint exhibition of 9 state-owned financial institutions affiliated with the Ministry of Finance at the "4th 2025 Asia-Pacific Sustainability Expo" to showcase the net-zero achievements of the financial industry, receiving widespread and positive recognition.

Other
- Competence indicators encompass management skills, leadership, judgement and integrity etc.
- Annual policy goals encompass inclusive financing, green financing, responsible investment, cyber security, and climate governance.

Distribution Standards
2. Employee Compensation
If the Company is profitable for the current year, it shall allocate 0.02% to 0.15% of the pre-tax profit, before deducting employee and director compensation, as employee compensation. The actual allocation ratio is calculated based on the achievement rate of the pre-tax profit target, as well as peer comparisons of EPS, ROE and ROA. Distribution is then weighted by individual performance appraisal, seniority, and job position.

Indicators	Base	%	2025 Achievement Rate (%)
Pre-tax profits	The Company's budget target	60	103.54
Earnings per share (EPS)	Simple average of peers	15	83.48
Pre-tax return on equity (ROE)		15	85.55
Pre-tax return on assets (ROA)		10	88.87

Note: The determination and amendment of distribution standards for salaries, bonuses, and employee compensation of managers (including the President) must be recommended by the Remuneration Committee and approved by the Board of Directors.

2.2 Implementation Status Of Company Corporate Governance

2.2.1 Implementation Status And Performance Evaluation Of The Board of Directors

The Board of Directors held 13 meetings (A) in 2025.

The attendance of Directors was as follows:

Title	Name	Number of Meetings Attended in Person (B)	Number of Meetings Attended by Proxy	Actual Attendance Rate (%) (B)/(A)	Remarks
Chairperson (MOF Representative)	Ye-Chin Chiou	13	0	100.00%
Director & President (MOF Representative)	Frank Y. C. Fang	13	0	100.00%
Director (MOF Representative)	Lin-Na Huang	6	2	75.00%	Appointed by the Ministry of Finance on May 14, 2025 (8 Board of Directors Meetings were held during the 2025 term of office (A))
Director (MOF Representative)	Ming-Chi Lee	12	1	92.31%
Director (MOF Representative)	Shing-Rong Lo	13	0	100.00%
Director (MOF Representative)	Hsin-Lu Chang	13	0	100.00%
Director (MOF Representative)	Chih-Chuan Chen	12	1	92.31%
Director (Bank of Taiwan Representative)	Shih-Yuan Tai	12	1	92.31%
Director (Bank of Taiwan Representative)	Chen-Ching Tien	13	0	100.00%
Director (Global Vision Investment Co., Ltd. Representative)	An-Fu Chen	13	0	100.00%
Independent Director	Rachel J. Huang	13	0	100.00%
Independent Director	Chun-Hung Lin	13	0	100.00%
Independent Director	Wen-Ling Hung	13	0	100.00%
Independent Director	Hung-Yu Lin	12	1	92.31%
Independent Director	Chi-Chang Yu	13	0	100.00%

Other items to be disclosed:

For the operation of the Board of Directors, if any of the following circumstances occurs, the meeting date, session, content of the proposal, opinions of all Independent Directors, and the Company's handling of such opinions shall be specified:

(1) Matters listed in Article 14-3 of the Securities and Exchange Act: The Company has established an Audit Committee. Therefore, the provisions of Article 14-3 do not apply.

(2) Other than the aforementioned matters, board resolutions on which an Independent Director has a dissenting or qualified opinion that is on record or stated in writing: None

Regarding the recusal of directors from proposals due to conflicts of interest, the name of the director, the content of the proposal, the reason for recusal, and the status of participation in the voting shall be specified:

Director's Name	Content of the Proposal	Cause of Recusal	Voting Status
Frank Y. C. Fang, Director & President	Appointment of equity representatives for investee companies	The director is a stakeholder in this matter.	Recused from discussion and voting.
Ye-Chin Chiou, Chairperson	Adjustment of employee compensation standards and the President's management allowance for the subsidiary First Bank	The director is a stakeholder in this matter.	Recused from discussion and voting.
Ye-Chin Chiou, Chairperson	Issuance of special bonuses for the subsidiary First Bank	The director is a stakeholder in this matter.	Recused from discussion and voting.
Ye-Chin Chiou, Chairperson; Frank Y. C. Fang, Director & President	Salary adjustments for the Company's executives and adjustment of the President's management allowance	The director is a stakeholder in this matter.	Recused from discussion and voting.
Chih-Chuan Chen, Director	Appointment of equity representatives for subsidiaries	The director is a stakeholder in this matter.	Recused from discussion and voting.
Frank Y. C. Fang, Director & President	2024 performance bonus proposal for the Company's executives	The director is a stakeholder in this matter.	Recused from discussion and voting.
Ye-Chin Chiou, Chairperson; Frank Y. C. Fang, Director & President; Hsin-Lu Chang, Director; Chun-Hung Lin, Independent Director; Rachel J. Huang, Independent Director	Appointment of equity representatives for subsidiaries and investee companies	The director is a stakeholder in this matter.	Recused from discussion and voting.
Frank Y. C. Fang, Director & President	2025 salary adjustment and bonus allocation proposal for company executives	The director is a stakeholder in this matter.	Recused from discussion and voting.
Frank Y. C. Fang, Director & President	Appointment of the Chief Sustainability Officer	The director is a stakeholder in this matter.	Recused from discussion and voting.
Rachel J. Huang, Independent Director; Chun-Hung Lin, Independent Director; Wen-Ling Hung, Independent Director; Hung-Yu Lin, Independent Director; Chi-Chang Yu, Independent Director	Proposal for the issuance of attendance fees for functional committee members.	The director is a stakeholder in this matter.	Recused from discussion and voting.

Director's Name	Content of the Proposal	Cause of Recusal	Voting Status
Frank Y. C. Fang, Director & President; Chih-Chuan Chen, Director	Establishment of the 2026 Audit Plan	The director is a stakeholder in this matter.	Recused from discussion and voting.

Execution status of Board Performance Evaluation:

Evaluation Cycle	Evaluation Period	Scope of Evaluation	Evaluation Methodology	Evaluation Criteria
Conducted once a year	January 1, 2025 to December 31, 2025	Overall operations of Board of Directors and Functional Committees (including Audit, Remuneration, and Sustainable Development Committees), as well as individual director performance evaluations.	Self-assessments by individual Board members, the Board of Directors, and Functional Committees (including Audit, Remuneration, and Sustainable Development Committees).	1. Board Performance Evaluation: Level of participation in the Company's operations, awareness of duties and responsibilities, management of internal relationships and communication, enhancement of board decision-making quality, grasp of goals and missions, board composition and structure, director election and professional development, and internal controls.
2. Individual Director Performance Evaluation: Level of participation in company operations, awareness of duties, internal relationship management and communication, contribution to decision-making quality, understanding of goals and missions, professional expertise and continuous education, and internal controls.
3. Functional Committee Performance Evaluation: (including Audit, Remuneration, and Sustainable Development Committees): Level of participation in the Company's operations, awareness of duties, internal relationship management and communication, enhancement of committee decision-making quality, grasp of goals and missions, committee composition and structure, member election and professional development, and internal controls.

In January 2026, the Company conducted the internal performance evaluations for the 2025 fiscal year for the Board of Directors, individual directors, and functional committees (including the Audit, Remuneration, and Sustainable Development Committees). The average score for the performance evaluation indicators of the Board of Directors and individual directors was 4.93, resulting in a rating of "Excellent." The average score for the functional committees was 4.99 (with the Audit, Remuneration, and Sustainable Development Committees receiving average scores of 5.00, 4.98, and 4.98, respectively), also resulting in a rating of "Excellent." These evaluation results were reported to the 20th meeting of the 8th Board of Directors on January 26, 2026, for acknowledgment. The Board's performance evaluation results from 2019 to 2025 have been disclosed on the Company's website: https://www.firstholding.com.tw/sites/firstholding/governance/performance

Goals and implementation evaluation for enhancing the Board's functions in the current and most recent fiscal years:

(1) The Company established the Remuneration Committee in 2011. By resolution of the 1st meeting of the 8th Board of Directors, independent directors Chun-Hung Lin, Wen-Ling Hung and Hung-Yu Lin were appointed as members of the 6th Remuneration Committee. The committee periodically reviews the policies, systems, standards, and structures for performance evaluation and remuneration of the Company's directors (including functional committees) and managers. It also deliberates on the compensation of the subsidiary directors and managers that requires Board approval to strengthen corporate governance and improve the remuneration system. In 2025, a total of 4 meetings were held with a 100% attendance rate, achieving the annual goal of at least 2 attendances per member.

(2) The Company established an Ethical Management Committee, composed of independent directors, in 2015. By resolution of the 1st meeting of the 8th Board of Directors, independent directors Hung-Yu Lin, Rachel J. Huang and Chi-Chang Yu were appointed as the members of the 4th Ethical Management Committee. To

continuously improve the sustainable development governance structure, the Board approved an amendment to the organizational charter on June 26, 2025. This amendment merged the responsibilities of the original Sustainable Development Committee into the Ethical Management Committee and renamed the joint body as the "Sustainable Development Committee", with the aforementioned members continuing their tenure. In 2025, a total of 3 meetings were held with a 100% attendance rate.

(3) The Company discloses director attendance at Board meetings, key Board resolutions, director training and education status, Board performance evaluation results, and Board diversity on its website. In 2025, a total of 13 Board meetings were held. The overall actual attendance rate of all directors was 96.84%. Regarding individual attendance, one director's rate was below 80%, while all other directors' rates were above 80%.

(4) To enhance the independence and operational efficiency of the Board, the Company established the "Rules Governing the Scope of Powers of Independent Directors" in 2009 and has maintained three independent director seats since the 3rd Board. Furthermore, to strengthen corporate governance, the Company has fully adopted a candidate nomination system since the election of the 5th Board in 2015. On June 21, 2024, 15 directors (including 5 independent directors) were elected for the 8th Board. Independent directors now account for one-third of the Board seats, and none have served more than three consecutive terms. Female independent directors represent 60% of the independent seats. Additionally, the Company's quarterly consolidated financial statements are submitted to the Audit Committee for approval to strengthen the committee's supervisory function over the Company's finances.

2.2.2 Implementation Status Of The Audit Committee

The Audit Committee held 7 meetings (A) in 2025.

The attendance of Independent Directors was as follows:

Title	Name	Number of Meetings Attended in Person (B)	Actual Attendance Rate (%) (B)/(A)
Independent Director (Convener)	Rachel J. Huang	7	100.00
Independent Director	Chun-Hung Lin	7	100.00
Independent Director	Wen-Ling Hung	7	100.00
Independent Director	Hung-Yu Lin	7	100.00
Independent Director	Chi-Chang Yu	7	100.00

Other items to be disclosed:

For the operation of the Audit Committee, if any of the following circumstances occurs, the meeting date, session, agenda content, dissenting opinions, qualified opinions, or major suggestions from independent directors, the resolution of the Audit Committee, and the Company's handling of such opinions shall be specified.

(1) Matters listed in Article 14-5 of the Securities and Exchange Act.

Meeting Date/ Session	Agenda Item	Dissenting, Qualified Opinions or Major Suggestions	Resolution & Company's Handling of Opinions
Feb 24, 2025
The 4th Meeting of the 5th Audit Committee	The Company's 2024 business report and consolidated financial statements.	None	Approved as proposed
Mar 24, 2025
The 5th Meeting of the 5th Audit Committee	The Company's 2024 internal control statement	None	Approved as proposed

Meeting Date/ Session	Agenda Item	Dissenting. Qualified Opinions or Major Suggestions	Resolution & Company's Handling of Opinions
Apr 21, 2025
The 6th Meeting of the 5th Audit Committee	The Company's 2024 earnings distribution proposal	None	Approved as proposed
	The Company's proposal for capital increase via earnings and issuance of new shares	None	Approved as proposed
Aug 18, 2025
The 8th Meeting of the 5th Audit Committee	The Company's 2nd Quarter 2025 consolidated financial statements	None	Approved as proposed
	The Company's amendments to the internal control system.	None	Approved as proposed
Nov 17, 2025
The 9th Meeting of the 5th Audit Committee	The Company's establishment of the 2026 audit plan	None	Approved as proposed
Dec 22, 2025
The 10th Meeting of the 5th Audit Committee	The Company's appointment of CPAs for the 2026 financial statements	None	Approved as proposed

(2) Other matters not approved by the Audit Committee but approved by two-thirds or more of all directors: None.

Independent Directors' recusal due to conflicts of interest, names of directors, agenda items, reasons for recusal, and voting results shall be specified: None.
Communication between Independent Directors, internal audit officer, and CPAs (Includes major matters, methods, and results regarding the Company's financial and business status):

Date	Method	Target	Communication Items	Results
2025/02/24	Audit Committee	CPAs	The Company's 2024 business report and consolidated financial statements (separate communication between CPAs and Independent Directors prior to the meeting)	Approved as proposed
2025/03/24	Audit Committee	Chief Auditor	1. Report on the Company's 2nd half 2024 audit operations and follow-up review of inspection findings of Auditing Division	Handled per the Chairperson's and Independent Directors' instructions; acknowledged after supplementary explanations from relevant staff.
			2. The Company's 2024 internal control system statement	Approved as proposed
2025/04/21	Symposium on Internal Control Deficiencies and Improvement Measures for Regulatory Compliance	Chief Auditor and Self-Audit Officer of the Company and subsidiaries	1. Report on the Group's 2nd half 2024 compliance & AML deficiency and remediation report	Duly Noted
			2. Report of the 2nd half 2024 Group's common deficiencies cited by the FSC Examination Bureau, matters for Improvement in the internal control system statement appendices, and remediation status.	Duly noted per Chairperson's instructions and subsequent supplementary explanation from relevant staff.
2025/05/19	Audit Committee	CPAs	Report on the Company's 1st quarter 2025 consolidated financial statements	Approved as proposed

Date	Method	Target	Communication Items	Results
2025/08/18	Audit Committee	Chief Auditor	1. Report on the Group's 1st half 2025 audit operations and the continuous follow-up review of inspection findings from the FSC and the Auditing Division	Handled per the Chairperson's instructions; acknowledged after supplementary explanations from relevant staff.
			2. Amendment to the Company's internal control system	Approved as proposed
		CPAs	3. Report on the Company's 2nd quarter 2025 consolidated financial statements	Approved as proposed
2025/10/22	Symposium on Internal Control Deficiencies and Improvement Measures for Regulatory Compliance	Chief Auditor and Self-Audit Officer of the Company and subsidiaries	1. Report on the Group's 1st half 2025 compliance & AML deficiency and remediation report	Duly Noted
			2. Report on the monitoring of the Group's 1st half 2025 risk indicators
			3. Report of the 1st half 2025 Group's common deficiencies cited by the FSC Examination Bureau, remediation status, and Subsidiaries' high-risk business review from three lines of defense.
2025/11/17	Audit Committee	CPAs	1. Report on the Company's 3rd quarter 2025 consolidated financial statements	Approved as proposed
		Chief Auditor	2. The Company's establishment of the 2026 audit plan (separate communication session between internal Audit Head and Independent Directors)	Handled per the Chairperson's and Independent Directors' instructions; acknowledged after supplementary explanations from relevant staff.
2025/12/22	Audit Committee	CPAs	The proposal for the appointment of CPAs for auditing the Company's 2026 financial statements and pre-approval of the scope of non-assurance services to be provided to the Company and its subsidiaries by PwC Taiwan.	Approved as proposed

Annual key tasks and implementation status of the Audit Committee:

On June 21, 2024, the Company re-elected its 8th Board of Directors. Five independent directors with expertise in finance, risk management, technology, economics, and law formed the 5th Audit Committee. The committee meets at least quarterly, and may convene additional meetings as necessary, to oversee the fair presentation of the Company's financial statements; the appointment, dismissal, independence, and performance of CPAs; the effective implementation of internal controls and internal audits; the review of investigation reports on whistleblowing cases; and the effectiveness of regulatory compliance and control of existing or potential risks. In 2025, the 5th Audit Committee held 7 meetings with a 100% attendance rate. The Company submits reports to the Audit Committee and the Board of Directors on a semi-annual basis regarding the audit operations of the Company and its subsidiaries, the follow-up status of inspection findings from the FSC and the Auditing Division, and the implementation status of the compliance system, anti-money laundering, and countering the financing of terrorism for the Group. Independent Directors also hold a "Symposium on Internal Control Deficiencies and Improvement Measures for Regulatory Compliance" with the internal audit officers and self-audit officers of the Company and its subsidiaries at least every six months. Furthermore, at least one separate communication session is arranged annually between the Independent Directors, the internal audit head, and the external CPAs. The aforementioned execution reports and symposiums all cover items such as compliance self-assessments, regulatory change management, compliance training, and subsidiary management. These sessions also involve analyzing the root causes, potential impacts, and remediation recommendations for any major compliance deficiencies or irregularities within the Company and its subsidiaries. Additionally, the Company's quarterly consolidated financial statements are submitted to the Audit Committee for approval to strengthen the committee's oversight function regarding the Company's finances.

2.2.3 Disclosures Required Under The Corporate Governance Best Practice Principles For Financial Holding Companies

Information required to be disclosed by the Company pursuant to the “Corporate Governance Best Practice Principles for Financial Holding Companies” has been made available on the Company’s website. The URL is: https://www.firstholding.com.tw/sites/firstholding/governance/manageRule.

2.2.4 Corporate Governance Implementation Status, Deviations From the Corporate Governance Best Practice Principles For Financial Holding Companies, And Reasons Thereof

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for Financial Holding Companies and Reasons Thereof
	Y	N	Summary Description
1. Shareholding Structure and Shareholders’ Rights and Interests of the Financial Holding Company
(1) Has the Company established internal operating procedures for handling shareholder suggestions, inquiries, disputes, and litigation matters, and duly implemented such procedures?	☑		(1) The Company has assigned dedicated personnel to handle shareholder suggestions, inquiries, disputes, and litigation matters prudently and properly in accordance with regulations. Contact information for stock affairs, investor relations, and the spokesperson is disclosed on the "Investor Relations" section of the Company's website and the Market Observation Post System (MOPS) to facilitate shareholder communication and ensure appropriate responses.	(1) None.
(2) Does the Company maintain a list of major shareholders who exercise de facto control over the Company, and the ultimate controllers of such major shareholders?	☑		(2) Based on the register of shareholders as of each book closure date, and shareholding change filings by insiders and major shareholders pursuant to Article 25 of the Securities and Exchange Act and Article 16 of the Financial Holding Company Act, the Company identifies major shareholders (top ten shareholders and those with a stake of 1% or more) and their ultimate controllers. Please refer to page 20 of this annual report for information on major shareholders of corporate shareholders whose representatives serving as Directors. The names, shareholdings, and percentages of major shareholders are disclosed on pages 111-112 of this annual report and under the "Shareholder Services" of the "Investor Relations" section on the Company's website. Furthermore, the Company promotes awareness of Articles 4, 5, 16, and 60 of the Financial Holding Company Act regarding ownership thresholds for the same person or same affiliated person and provides relevant application forms for download.	(2) None.

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for Financial Holding Companies and Reasons Thereof
	Y	N	Summary Description
(3) Has the Company established and implemented risk control and firewall mechanisms between the Company and its affiliated enterprises?	✓		(3) The Company has established comprehensive risk management policies and related regulations. The Company and its major subsidiaries (including bank and securities) have each set up independent risk management units responsible for their respective business risk controls. To prevent non-arm's length transactions between the Company/subsidiaries and related parties, the Company has established the "FFHC Rules Governing Credit Extension and Other Transactions with Related Parties" in accordance with Articles 44 and 45 of the Financial Holding Company Act. These rules stipulate that bank and insurance subsidiaries shall not extend unsecured credit to related parties; for secured credit, Article 33 of the Banking Act shall apply mutatis mutandis. In addition, the Group strictly enforces control over credit and transactions among affiliated enterprises and has established a Related Party System to maintain a robust firewall mechanism.	(3) None.
2. Composition and Responsibilities of the Board of Directors
(1) Has the Board of Directors established a diversity policy and set concrete management objectives?	✓		(1) Articles 33, 36, 37, and 43 of the Company's Corporate Governance Best Practice Principles establish the diversity policy for the Board of Directors and the appointment of directors and supervisors for subsidiaries. To implement this policy, the Company ensures that no independent director serves more than three consecutive terms, independent directors account for at least one-third of the Board, Directors of either gender account for at least one-third of the Board, and each subsidiary appoints at least one female director or supervisor. These goals are reviewed and tracked regularly. For details on implementation, please refer to “Board Diversity and Independence” on pages 29-30 of this annual report.	(1) None.
(2) Besides the Remuneration Committee and Audit Committee mandated by law, has the Company voluntarily established other types of functional committees?	✓		(2) Paragraph 2, Article 25 of the Company's Articles of Incorporation stipulates “To strengthen management functions, the Board of Directors may establish various functional committees, the charters of which shall be determined by the Board.” Accordingly, the Company has established an Audit Committee, a Remuneration Committee, an Ethical Management Committee, and a Sustainable Development Committee.	(2) None.

Evaluation Item	Implementation Status
	Y	N	Summary Description
(3) Has the TWSE/TPEx listed financial holding company established rules for performance evaluation of the Board of Directors and its evaluation methods, conducted performance evaluations regularly yearly, reported the results to the Board, and utilized such results as a reference for individual directors' remuneration and nomination for re-election?	✓	(3)	1. The Company's “Rules for Performance Evaluation of the Board of Directors” define the scope, methods, procedures, and indicators for evaluations. Internal evaluations are conducted annually, and the results are reported to the Board of Directors.
2. The Remuneration Committee refers to the annual Board performance evaluation results and other relevant factors to propose the distribution ratio for directors' remuneration and weighting for each director, which are then submitted to the Board for approval	(3) No difference from the Corporate Governance Best Practice Principles for Listed Companies
(4) Does the Company regularly evaluate the independence of its CPAs?	✓	(4)	In addition to verifying that the CPAs are not related parties as defined in Article 45 of the Financial Holding Company Act, the Board regularly (once a year) refers to the Audit Quality Indicators (AQIs) prepared by the CPAs under the FSC's Audit Quality Indicators Index (AQI) guidelines. The Board evaluates the independence and competency of the appointed CPAs based on the following criteria and reports to the Audit Committee and the Board:
1. Whether the CPAs have performed audit services for the Company for seven consecutive years without rotation as of the most recent audit.
2. Whether the CPAs have a related party relationship with the Group, or if any CPA has served as a director, supervisor, manager, or employee of the Group with significant influence on the audit work left the company within the past two years.
3. Whether the CPAs hold Company shares or have joint investments, profit-sharing, or loan arrangements with the Company or its affiliates, except for normal banking transactions.
4. Whether the CPAs perform regular work for a fixed salary for the Company or affiliates or receive commissions related to the Company's business.
5. Whether the CPAs are involved in any management functions or decision-making processes of the Company or its affiliated enterprises.
6. Whether the CPAs have been subject to disciplinary action or involved in any matters that compromise the principle of independence as of now.	(4) None.

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for Financial Holding Companies and Reasons Thereof
	Y	N	Summary Description
3. Has the financial holding company assigned competent and adequate personnel for corporate governance and appointed a Corporate Governance Officer to be in charge of corporate governance affairs (including but not limited to providing directors and supervisors with the information required to perform their duties, assisting directors and supervisors in complying with laws and regulations, handling board and shareholders' meetings-related matters, and preparing meeting minutes, etc.)?	✓		(1) On August 26, 2021, the Board of Directors approved the appointment of Ms. Li-Fang Hung, Chief Secretary of the Board, as the Corporate Governance Officer. Ms. Hung has served as the Chief Secretary since June 2020 and possesses over five years of experience as a manager in a finance unit within a financial institution, fulfilling the required qualifications. She is the highest-ranking officer responsible for the following affairs:

Handling matters related to Board of Directors and Shareholders' meetings.
Preparing meeting minutes for the Board of Directors and Shareholders' meetings.
Assisting directors with their induction and continuing education.
Providing directors with the information required for the exercise of their duties.
Assisting directors in complying with laws and regulations.
Handling matters related to Board performance evaluations and directors liability insurance.
Reporting to the Board the results of qualification reviews for independent directors during nomination, election, and their term of office.
Handling matters related to changes in directors.
Other matters stipulated by the Articles of Incorporation or agreements.

(2) The aforementioned affairs are carried out by a total of 12 managers and staff members (excluding the Corporate Governance Officer), assigned from the Board of Directors, the Corporate Governance Section and the Administrative Section of the Administration Management Division based on their respective functions.

(3) Please refer to page 106 of this annual report for the continuing education records of the Company's Corporate Governance Officer. | None. |

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for Financial Holding Companies and Reasons Thereof
	Y	N	Summary Description
4. Has the financial holding company established communication channels with stakeholders (including but not limited to shareholders, employees, and customers), set up a "Stakeholder Engagement" section on the corporate website, and properly responded to corporate social responsibilities issues of concerns to stakeholders?	✓		(1) In accordance with the "Regulations Governing Information to be Published in Annual Reports of Public Companies" of the Securities and Futures Bureau and the "Matters Required to Be Handled by Issuers of Listed Securities" of the Taiwan Stock Exchange, the Company discloses regular and irregular financial and business information via the Market Observation Post System. The Company's website also discloses preliminary monthly earnings results and CPA-reviewed/audited consolidated financial statements to provide transparent financial information. Furthermore, when CPAs present annual or interim financial reports to the Board, they submit governance reports and communicate recommendations for internal control improvements.

(2) Pursuant to Article 32 of the Labor Inspection Act, the Company has published the "Labor Complaint Notice" which specifies the designated units, personnel, scope, and procedures for handling grievances. Employees may file complaints regarding violations of the Labor Standards Act, Labor Insurance Act, Labor Inspection Act, or Employment Service Act to the Company's representatives, responsible persons or competent authorities (e.g., the Department of Labor, Taipei City Government, and the Taipei City Labor Inspection Office of the Department of Labor, Taipei City Government) following the prescribed procedures.

(3) In compliance with Article 7, Paragraph 1 of the Sexual Harassment Prevention Act, Article 13, Paragraph 1 of the Gender Equality in Employment Act, and the Regulations for Establishing Measures of Prevention, Correction, Complaint, and Punishment of Sexual Harassment at Workplaces, the Company has established "Rules for Prevention, Complaint and Punishment of Sexual Harassment". We have officially promulgated the rules along with the dedicated sexual harassment complaint hotline, fax, and email address. Furthermore, sexual harassment prevention trainings for all employees are conducted on a semi-annual basis.

(4) The Company convenes labor-management meetings in accordance with Article 83 of the Labor Standards Act. In 2025, four meetings were held to facilitate full communication between labor and management representatives regarding labor conditions, benefits, and the work environment.

(5) The "Stakeholder Engagement" section on the Company's website features dedicated areas for investors, customers, employees, media, and whistleblowing. The customer area includes grievance hotlines and email addresses for the Company and its subsidiaries. Additionally, the "Sustainability Report" item under "ESG" section provides a "Sustainability Mailbox" and an "Online Questionnaire" for diverse communications and channels in responding to material sustainable issues. | None. |

Evaluation Item	Implementation Status
	Y	N	Summary Description
5. Information Disclosure
(1) Has the financial holding company established a corporate website to disclose information regarding its financial, operational, and corporate governance status?	☑		(1) 1. The Company maintains "Investor Relations" and "Corporate Governance" sections on its corporate website to disclose financial, operational, and corporate governance information. The "Shareholder Service" section provides the dividend policy, historical dividend distributions, and shareholders' meeting materials, including meeting notices, electronic voting instructions, meeting handbooks, voting results for all proposals, and meeting minutes, etc.
2. The Company's financial information, including preliminary monthly earnings results and quarterly CPA-reviewed/audited consolidated financial statements, is disclosed regularly on the website.	(1) None.
(2) Does the Company utilize other channels for information disclosure? (e.g., maintaining an English website, designating dedicated personnel for information collection and disclosure, implementing a spokesperson system, and uploading webcasts of investor conferences to the corporate website?)	☑		(2) 1. In accordance with the "Procedures for Verification and Disclosure of Material Information by Listed Companies" and the "Rules Governing Information Reporting", the Company files material information and financial/operational data or holds press conferences as required. Such information is simultaneously disclosed in English to ensure investors receive relevant, adequate, and reliable information in a timely and regular manner.
2. The Company has established a spokesperson system and the "Operating Procedures for Handling Internal Material Information." All material information is handled according to these procedures, with the spokesperson (or acting spokesperson) serving as the sole external representative within the scope of authorization. The Company conducts annual training on these procedures and relevant laws and regulations.
3. The Company has maintained an English and Chinese bilingual website with dedicated personnel from each department responsible for data collection and real-time updates. In 2025, information, presentation materials, and webcasts of investor conferences held or attended by the Company were uploaded to the "Event & News" item under "Investor Relations" section for reference.	(2) None.

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for Financial Holding Companies and Reasons Thereof
	Y	N	Summary Description
(3) Does the Company publicize and file its annual financial statements within the prescribed period after the end of the fiscal year in accordance with the Financial Holding Company Act and the Securities and Exchange Act? Furthermore, does the Company publicize and file its first quarter, second quarter, and third quarter financial statements, and monthly operating results before the statutory deadlines?	✓		(3) The Company's annual financial statements are publicized and filed within the prescribed period pursuant to the Financial Holding Company Act and the Securities and Exchange Act. Financial statements for the first, second, and third quarters of 2025, as well as preliminary monthly earnings results, were all publicized and filed ahead of the statutory deadlines.	(3) None.
6. Does the financial holding company have other material information to facilitate a better understanding of its corporate governance practices? (Including but not limited to employee rights and benefits, employee well-being, investor relations, stakeholder rights, continuing education records of directors and supervisors, implementation status of risk management policies and risk assessment measures, implementation status of customer relations policies, directors and supervisors liability insurance, and donation status to political parties, related parties and charitable contributions, etc.)	✓		(1) For information regarding employee rights and benefits, employee well-being, directors' continuing education and training, and the implementation status of risk management policies and risk measurement standards, please refer to the sections on "Implementation Status of Sustainable Development" (Pages 63-83), "Labor-Management Relations" (Pages 167-170), "Continuing Education and Training of the Company's Directors" (Page 106), and " Evaluation of the following Risk Management Items based on Consolidated Financial and Business Status for the Most Recent Year and up to the Publication Date of this Annual Report " (Pages 177-199) in this annual report.

(2) In May 2025, the Company renewed its Directors, Supervisors, and Officers Liability Insurance with the Taiwan branches of AIG, Chubb, and Mitsui Insurance. The total insured amount is USD 30 million, effective from May 24, 2025, to May 24, 2026. This insurance is intended to mitigate risks and diversify potential losses to the Company and shareholders arising from errors or omissions by directors, supervisors, or key officers. Material terms, including coverage and premium rates, were reviewed and determined by the Board. Please refer to "Material Agreements" in this annual report (Page 170).

(3) The Company prohibits political donations to political parties. Donations to related parties must be submitted to the Board for approval and disclosed as material information in accordance with regulations. For details on donations to charitable organizations, please refer to the "Social Impact" chapter of the Company's Sustainability Report. | None. |

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for Financial Holding Companies and Reasons Thereof
	Y	N	Summary Description
			(4) To protect consumer rights, the Company has established the "Firewall Policy, Guiding Principles, and Implementation Guidelines for Cross-Selling among FFHC and its Subsidiaries" and discloses data privacy measures on the websites of the Company and its subsidiaries. To comply with the Personal Data Protection Act, subsidiaries conduct regular employee training to reinforce employee awareness of data confidentiality and legal compliance, strictly preventing the leakage of personal and customer information.

All customer contracts are formulated according to relevant laws and regulation, and relevant business procedures are reviewed from time to time to safeguard consumer rights. For other measures regarding the protection of consumer interests, please refer to “Implementation Status of Sustainable Development” in this annual report (Pages 79-80).

(5) The Company has established "Rules of Procedure for Board of Directors Meetings," convening once a month. Directors are notified seven days in advance. In 2025, the Board held 13 meetings with an average attendance rate of 96.84%, successfully discharging its oversight responsibilities. The rules explicitly stipulate that directors, including their spouses, second-degree relatives, or companies under their control, must recuse themselves from discussions and voting on agenda items involving potential conflict of interests. They are also prohibited from acting as proxies for other directors in such matters. All directors have strictly complied with these rules. Please refer to the "recusal of directors from proposals due to conflicts of interest" (Pages 50-51).

(6) Succession planning for board members and key management personnel
1. Succession planning for board members
To implement corporate governance and safeguard shareholder rights, the Company's Articles of Incorporation stipulates a candidate nomination system for the election of directors, where directors are elected by shareholders from a list of nominee. Furthermore, the Company's Corporate Governance Best Practice Principles define criteria for board diversity, required professional knowledge and skills, and restrictions on concurrent positions. For each board re-election, major shareholders-Ministry of Finance and Bank of Taiwan-select candidates from their talent pools based on the aforementioned qualifications and the number of directors to be elected. After the Board of Directors reviews and confirms that the nominees meet the qualifications for directors and independent directors of a financial company, they are then elected at the shareholders' meeting. | |

Evaluation Item	Implementation Status
	Y	N	Summary Description
			2. Succession planning for key management personnel
The Company conducts internal and external training programs based on its annual plan to enhance the professional knowledge and skills of management team. To strengthen talent cultivation and meet the needs of cross-business operations, the Company has established the “Rules for Personnel Exchange among FFHC and its Investment Subsidiaries”. Currently, the Company’s key management personnel are held concurrently by or seconded from personnel of its subsidiary, First Bank. The training system for key management is as follows:

i. Executive candidate training program: senior management within the Group are selected to participate in the “Senior Executive Training Program for State-Owned Enterprises” organized by the Ministry of Finance. In 2025, a total of 5 individuals participated, and there are currently 18 executive candidates in the talent pool.

ii. Senior Assistant Manager Candidates: Assistant Manager level personnel are selected to attend the “Senior Assistant Manager (Department Manager) Candidate Seminar”. A total of 25 individuals participated in 2025.

iii. Assistant Manager Candidates: Personnel who have passed the selection process are enrolled in the “Assistant Manager Candidate Deposit and Remittance Business Seminar”. A total of 100 individuals participated in 2025.

iv. Pursuant to the “Promotion Rules of First Commercial Bank Employee” and other relevant rules, the Company regularly conducts promotion assessments and selections for Grades 11 and 12 personnel, and appoint personnel to managerial positions based on manpower requirements. In 2025, 80 individuals were appointed to Assistant Manager positions, and 38 individuals were appointed to Senior Assistant Manager (Department Manager) positions. | |

Please describe the improvements made based on the most recent Corporate Governance Evaluation results published by the Corporate Governance Center of the Taiwan Stock Exchange. For items where improvements have yet to be implemented, please describe the priority areas for enhancement and the measures to be taken.

According to the results of the 12th Corporate Governance Evaluation published by the Corporate Governance Center of the Taiwan Stock Exchange in 2026, the Company's ranking in the listed category is top 6%–20% for the eleventh consecutive year. Based on the evaluation results, the Company's prioritized enhancements and measures are to propose adjustments to the Board's structure to the corporate shareholders, aiming to strengthen Board independence by increasing the number of Independent Director seats, and to disclose the annual financial statements within two months after the end of the fiscal year, pursuing better information transparency and timeliness.

2.2.5 Composition And Implementation Status Of The Remuneration Committee

I. Information on Remuneration Committee Members

| Type of Director | Qualifications
Name | Professional Qualification and Experience | Independence Status | Number of Other Public Companies where the Member Concurrently Serves on the Remuneration Committee |
| --- | --- | --- | --- | --- |
| Independent Director (Convener) | Chun-Hung Lin | (Note) | 0 | |
| Independent Director | Wen-Ling Hung | | | 0 |
| Independent Director | Hung-Yu Lin | | | 1 |

Note: Please refer to the relevant content in "2.1.1 Board Member Information" and "2.1.4 Professional Qualifications Of Board Members And Independence Status Of Independent Directors" on pages 12-29 of this annual report.

II. Implementation Status of the Remuneration Committee

(1) The Company's Remuneration Committee consists of 3 members in total.

(2) Terms, Qualifications, and Attendance:

The term of the 6th Remuneration Committee is from June 24, 2024, to June 20, 2027. Each member possesses professional qualifications as a lecturer or higher in legal or financial related departments at a public or private college or university, or has more than five years of relevant work experience. None of the members fall under any of the restrictive circumstances specified in Paragraph 2, Article 5 and Paragraph 1, Article 6 of the "Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Taiwan Stock Exchange or the Taipei Exchange." In 2025, the Remuneration Committee held 4 meetings (A). The attendance of Members was as follows:

| Title | Name | Number of Meetings Attended in Person (B) | Number of Meetings Attended by Proxy | Actual Attendance Rate (%)
(B) / (A) | Remarks |
| --- | --- | --- | --- | --- | --- |
| Convener | Chun-Hung Lin | 4 | 0 | 100.00 | |
| Member | Wen-Ling Hung | 4 | 0 | 100.00 | |
| Member | Hung-Yu Lin | 4 | 0 | 100.00 | |

Other items to be disclosed:

If the Board of Directors does not adopt or amends the Remuneration Committee's recommendations, specify the board meeting date, session, content of the proposal, board resolution, and the Company's handling of the Remuneration Committee's opinions (e.g., if the remuneration approved by the Board is superior to the Committee's recommendation, specify the discrepancy and the reasons): None.
If any member has a dissenting or qualified opinion regarding a resolution of the Remuneration Committee where such opinion is on record or stated in writing, specify the Remuneration Committee meeting date, session, content of the proposal, opinions of all members, and the handling of said opinions: None.
Discussions and resolutions of the Remuneration Committee, and the Company's handling of members' opinions:

Meeting Date/ Session	Proposal	Resolution	The Company's Handling of Members' Opinions
Feb 24, 2025
The 4th meeting of the 6th Term	Compensation proposal for the subsidiary First Bank.	Approved with amendments	Following the Committee's amended description of the proposal, it was submitted to and resolved by the 9th meeting of the 8th Board of Directors on Feb. 27, 2025.
	Salary adjustment proposal for employees of the subsidiary First Bank.	Approved as proposed.	Submitted to and resolved by the 9th meeting of the 8th Board of Directors on Feb. 27, 2025.
	The Company's salary adjustment proposal for managers.	Approved as proposed.	Submitted to and resolved by the 9th meeting of the 8th Board of Directors on Feb. 27, 2025.
Mar. 24, 2025
The 5th meeting of the 6th Term	The Company's 2024 proposal for Directors' and employees' compensation distribution.	Approved with amendments	Following the Committee's amended description of the proposal, it was submitted to and resolved by the 10th meeting of the 8th Board of Directors on Mar. 27, 2025.
	The Company's 2024 proposal for managers' performance bonus distribution.	Approved as proposed.	Submitted to and resolved by the 10th meeting of the 8th Board of Directors on Mar. 27, 2025.
Apr. 21, 2025
The 6th meeting of the 6th Term	The Company's 2025 proposal for managers' salary adjustment and incentive pay.	Approved as proposed.	Submitted to and resolved by the 11th meeting of the 8th Board of Directors on Apr. 23, 2025.
Sep. 18, 2025
The 7th meeting of the 6th Term	Amendments to the "Rules Governing the Distribution of Employee Bonuses" of the subsidiary First Consulting	Approved with amendments	Following the Committee's amended "Rules Governing the Distribution of Employee Bonuses" of the subsidiary First Consulting, it was submitted to and resolved by the 16th meeting of the 8th Board of Directors on Sep. 25, 2025.
	Proposal for expense payments related to the Company's functional committees	Approved as proposed.	Committee after further amendments of the qualifications of departed employees eligible for the bonus pay

Annual key tasks and implementation status of the Remuneration Committee:

The Remuneration Committee holds at least two meetings annually, with additional meetings convened as needed. Members faithfully fulfill the following duties and submit recommendations to the Board of Directors for discussion:

(1) Establish and regularly review policies, systems, standards, and structures related to the performance evaluation and remuneration of directors and managers.

(2) Regularly assess and determine the remuneration of directors and managers.

(3) Review remuneration matters for directors and managers of subsidiaries that are subject to approval by the Company's Board of Directors.

In 2025, the Remuneration Committee held 4 meetings, with an average attendance rate of 100%. Each year, the Company submits and reports to both the Remuneration Committee and the Board the proposals of annual distribution of directors' and employees' compensation, the managers' performance bonuses, and the managers' salary adjustments and incentive pay. Furthermore, the Company reviews and revises remuneration-related regulations for the Company and its subsidiaries. All proposals are recommended by the Remuneration Committee and submitted to the Board for discussion, thereby reinforcing the Board's corporate governance oversight.

2.2.6 Implementation Status Of Sustainable Development, Deviations From The Sustainable Development Best Practice Principles For TWSE/TPEx Listed Companies, And Reasons Thereof

Promotion Item	Implementation Status
	Y	N	Summary Description
1. Does the company establish a governance structure for promoting sustainable development, set up a dedicated (or concurrent) unit, authorize high-level management by the Board of Directors to handle it, and ensure oversight by the Board of Directors?	✓		1. Governance structure for promoting sustainable development:
In 2011, the Board of Directors of First Financial Holding resolved to establish the "Corporate Social Responsibility Committee", which was subsequently renamed the "Sustainable Development Committee" in March 2022. This committee serves as the core organization for promoting sustainable governance across the Group. In June 2025, the "Sustainable Development Committee" was further elevated to become a functional committee under the Board of Directors. It is composed of three Independent Directors and, in principle, convenes at least twice a year. The committee regularly reports the Group's sustainable development progress and improvement measures to the Board. Its responsibilities include reviewing and approving annual targets and action plans across various ESG scopes related to Group operations, as well as tracking and evaluating implementation effectiveness. The President serves as the Chief Sustainability Officer, overseeing the promotion and supervision of the Group's sustainable development affairs. Under the Committee, cross-company working groups have been established, including corporate governance, responsible finance, sustainable financial products and services, employee care, environmental sustainability, and social participation. The Administration Management Division is responsible for the overall planning and promotion of the Group's sustainable development initiatives.

Board of Directors' oversight of sustainable development:
Within four months after the end of the fiscal year, the Company reports to the Board of Directors on sustainability issues of concern by key stakeholders. These reports follow the framework of the Global Reporting Initiative (GRI) Standards and cover the Group's short-, medium-, and long-term sustainable development goals, as well as the achievement status of the previous year's targets. The 2025 execution results were submitted to the Board for review and record in March 2026. To continuously strengthen the Group's ESG performance, the Company's Board of Directors issued instructions for the following items in 2025, all of which have been implemented accordingly:
(1) Added note-taking functionality to iPad devices to reduce paper consumption.
(2) Actively promoted the ex-situ conservation of the Taipei Grass Frog, utilized scientific methods to preserve marine oases, and established a bird-window strike prevention and improvement program to maintain biodiversity. | 1. None. |

Promotion Item	Implementation Status
	Y	N	Summary Description
2. Does the company conduct risk assessments on environmental, social, and corporate governance issues related to its operations based on the principle of materiality, and formulate relevant risk management policies or strategies?	✓	2.	2. None.
		(1) In accordance with the GRI 2021 Universal Standards, the Group has established a materiality analysis process based on double materiality. This process evaluates the impacts of sustainability issues on the external environment, society, and the organization's internal operations by integrating methodologies from the "Value Balancing Alliance (VBA)", the Harvard Business School "Impact-Weighted Accounts (IWA)" project, the "London Benchmarking Group (LBG)", and the "Impact Measurement & Valuation" monetization assessments. Furthermore, in response to the adoption of IFRS Sustainability Disclosure Standards, the Company has not only reviewed its own sustainability issues but also identified those of its subsidiaries and investment/financing portfolios based on SASB industry classifications. Through this materiality analysis, nine material topics were identified: operating performance; responsible finance and investment/financing decarbonization strategy; corporate governance, risk management, and business continuity; ESG products and services; information security and privacy protection; ethical management and fair treatment of customers; diverse recruitment and skill development; and climate strategy and management. These topics have been internalized as the Group's sustainable development goals. The achievement of 2025 execution of each goal, along with the status of communication with key stakeholders, was submitted to the Board of Directors for review and record in March 2026.
		(2) To effectively manage the Group's business risks, the Company has established risk management policies and guidelines for itself and each subsidiary. To strengthen the linkage between corporate governance and risk management, emerging new risks such as cybersecurity risk, climate change risk, and personal data protection risk, have been integrated into the "Risk Management Policies and Guidelines of First Financial Holding and its Subsidiaries". The "Management Guidelines of Emerging New Risks" also has been formulated. Each subsidiary has also incorporated emerging new risks, including climate change risks, into its respective risk management policies. Each company is required to assess emerging new risks that may impact future business operations and develop relevant mitigation measures to establish a Group-level emerging new risk inventory and management mechanism.

Promotion Item	Implementation Status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
3. Environmental Issues(1) Does the company establish an appropriate environmental management system based on its industry characteristics?	✓	3.	(1) Under the Sustainable Development Committee of First Financial Holding, an “Environmental Sustainability Working Group” has been established. Taking into account international sustainability standards, initiatives, government environmental policies and regulations, and the Company's sustainable development strategy, the Group promotes sustainable environment policies, corporate environmental protection and energy-saving, supplier screening and management, targets setting and execution for greenhouse gas reduction, and procuring eco-friendly products. In 2025, all domestic operating sites implemented and obtained certifications for “ISO 14001 Environmental Management Systems” (validity period: 2024/10/30 ~ 2027/10/30) and “ISO 50001 Energy Management Systems” (validity period: 2024/10/19 ~ 2027/10/19) to fulfil carbon reduction, electricity and water savings, and resource recycling management.	3.(1) None.
(2) Is the company committed to improving energy efficiency and using recycled materials with low environmental impact?	✓	(2) i. The Company and its subsidiaries remain committed to enhancing energy efficiency and utilizing recycled materials with low environmental impact. Relevant measures are as follows:Roof-top solar power generation systems have been installed in 27 branch buildings. In 2025, these systems generated a cumulative total of approximately 347,200 kWh. Approximately 6.789 million kWh of green electricity and renewable energy certificates were purchased. In total, 7.14 million kWh of renewable energy was utilized. The Company has set a target to purchase and use 7.278 million kWh of renewable energy in 2026, continuing increasing the proportion of renewable energy in its energy mix.To fulfill environmental sustainability actions, a “Green Building Certification Project” team has been formed in 2010 to progressively renovate its own premises into green buildings. As of the end of 2025, 41 sites have obtained certifications. This includes 38 renovated older premises that received Green Building Labels from the Ministry of the Interior (comprising 30 Diamond-class, 2 Gold-class, 1 Silver-class, 2 Bronze-class, and 3 Certified-class), 2 newly constructed buildings that received Gold-class certifications, and the London Branch building, which obtained a Green Building Labels “PASS” class from the Building Research Establishment (BRE) in the UK.	(2) None.

Promotion Item	Implementation Status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
Y	N	Summary Description

Year	2024 2025
Purchased and Utilized Amount (kWh)	6,559,957 7,136,209
Carbon Reduction (Metric CO2e)	3,240.62 3,382.56
Year	2022 2023
Purchased and Utilized Amount (kWh)	2,050,738 3,793,325
Carbon Reduction (Metric CO2e)	1,043.83 1,877.70
(Note: carbon reduction is calculated as 7,136,209 X 0.474 / 1,000 = 3,382.56)
ii. Priority is given to the procurement and use of building materials, equipment, and appliances that have obtained Green Building Material Labels or Eco-labels and comply with regulatory requirements. In 2025, green procurement amounted to NT$202.329 million, marking the eleventh consecutive year that the Company being recognized by the Taipei City Government as a model unit for “Green Procurement by Private Enterprises and Organizations”. The Company continues to promote paperless internal official documents and utilizes products made from recycled materials that are recyclable, low-pollution, and energy-saving. Video conferencing is prioritized for meetings and educational training to reduce fuel consumption and carbon emissions associated with business travel. Additionally, battery exchange stations for electric scooters and charging stations for electric vehicles have been progressively installed at operating sites to advocate for the use of electric vehicles. When replacing official vehicles, priority is given to electric or hybrid models.	(3) None.
(3) Does the company assess potential risks and opportunities posed by climate change to its current and future operations and take measures to address climate-related issues?	✓	(3) i. The Climate Change Working Group under the “Sustainable Development Committee” is responsible for identifying potential climate change risks. In accordance with the “Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)”, the Group reviews and identifies physical and transition risks and opportunities arising from company operations. Risk management strategies are formulated for material risks to serve as the core of the Company's climate action. Additionally, emerging risks including climate change risks have been integrated into the risk management policy, reviewed and approved by the Board of Directors. In 2025, the climate change risk assessment results were reported to the Board to ensure effective top-down oversight of all climate governance actions. The TCFD

Promotion Item	Implementation Status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
			Report published in 2025 has received the highest "LEVEL-5+" recognition from the British Standards Institution (BSI) for the fifth consecutive year. Near-term carbon reduction targets were established using the SBTi methodology, which were officially validated and approved in 2024 for ongoing implementation. ii. The subsidiary First Bank officially became a signatory to the Equator Principles (EPs) in 2020. As of the end of 2025, it has undertaken a cumulative total of 40 project finance cases. Additionally, the "sustainability-linked loan" program was launched, offering preferential interest rates to enterprises that demonstrate improvement in environmental performance indicators. As of the end of 2025, a cumulative total of 865 clients have participated, with approved loans totaling approximately NT$1.0904 trillion. The bank also provides necessary funding for projects that enhance environmental benefits, such as pollution prevention, green transportation, green buildings/ factories, and energy and resource savings, to assist enterprises in their transition toward international low-carbon business opportunities. The bank also has issued ESG-themed funds and sustainability bonds to support lending for renewable energy projects, such as solar and wind power installations, thereby guiding enterprises and investors to commit capital to the clean energy industry. In 2025, a cumulative total of 2 "sustainable development time deposits" were undertaken, with a total deposit amount of NT$2 billion utilized for loan projects on social housing construction. iii. In 2025, five major credit card products, including the Living Green Card, GLORY+ World Card, Taoyuan Citizen Co-branded Card, Yilan Affinity Card, and Leezen Signature Card, obtained dual certifications for "PAS 2060:2014 Carbon Neutrality" from the British Standards Institution and the "Carbon Reduction Label" from the Ministry of Environment. During the manufacturing process of cards, green electricity was utilized to lower the carbon footprint, and carbon credits were purchased to offset remaining emissions to achieve carbon neutrality. A "Carbon Calculator" feature for credit card transactions was added to the iLEO APP, allowing cardholders to track the monthly carbon emissions of their spending. As of the end of 2025, a total of 40,278 customers had activated this feature.

Promotion Item	Implementation Status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
Y	N	Summary Description
(4) Does the company track greenhouse gas emissions, water usage, and total waste weight for the past two years, and formulate policies for greenhouse gas reduction, water reduction, or other waste management?	✓
First Financial Holding greenhouse gas emission (metric tons CO2e)
Year	2023	2024
Scope 1 + 2 (ISO-14064)	19,240	18,409
Data Coverage	100% domestic and overseas business sites
Intensity (tons CO2e /net profit in NT$ million)	0.29	0.26
Water resource management and total water consumption during the past three years
Year	2023	2024
Total Usage (million liters)	236.52	235.45
Data Coverage	Between 2023 and 2024, domestic business sites of First Bank, First Securities, First Life Insurance, First Securities Investment Trust, First Financial AMC and overseas business sites of First Bank were covered. In 2025, overseas business sites were excluded.
Water-saving Measures	Continue to implement various water-saving and awareness-raising measures.

Promotion Item	Implementation Status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
Y	N	Summary Description

Year	2023	2024
Waste Volume (metric tons)	315.27	314.62
Data Coverage	Between 2023 and 2024, domestic business sites of the Group companies and overseas business sites of First Bank were covered. In 2025, overseas business sites were excluded.
Reduction Measures	Continue to actively promote to increase resource recycling and implement waste reduction measures.
4. Social Issues
(1) Does the company formulate relevant management policies and procedures in accordance with relevant laws, regulations, and international human rights conventions?	✓	4.
(1) i. First Financial Holding endorses and adheres to various international human rights conventions and has integrated their spirit and fundamental principles of human rights protection into the Group's human rights policy. These include the "UN Universal Declaration of Human Rights", the "UN Guiding Principles on Business and Human Rights", the "Ten Principles of the UN Global Compact", the "ILO Declaration on Fundamental Principles and Rights at Work", the "ISO 26000 Guidance on Social Responsibility", the "Convention on the Elimination of All Forms of Discrimination Against Women", the "International Covenant on Economic, Social and Cultural Rights", and the "Modern Slavery Act". The First Financial Holding's "Sustainable Development Principles" explicitly mandates that all Group companies must comply with internationally recognized labor rights, including freedom of association, the right to collective bargaining, care for vulnerable groups, the prohibition of child labor, the elimination of all forms of forced labor, and the eradication of discrimination in employment and occupation to ensure workplace equality. The Company's personnel rules strictly prohibit the employment of individuals under the age of 16. In compliance with the "Labor Standards Act", the Company does not compel labor through violence, threats, detention, or any other illegal means.	4.
(1) None.

Promotion Item	Implementation Status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
			ii. Under the Board-level of “Sustainable Development Committee”, First Financial Holding has established an Employee Care Working Group. Composed of representatives from the human resources departments of each subsidiary, the group is responsible for promoting gender equality measures and education, as well as preventing and addressing incidents of gender discrimination and workplace bullying. In addition to reviewing relevant human rights issues and assessing potential risks each quarter, the group reports its human rights management actions and execution results to the Sustainable Development Committee.
iii. The Company has formulated a human rights due diligence procedure. By identifying and assessing risks associated with human rights issues, the Company establishes corresponding plans, implements improvements, and conducts follow-up tracking to effectively mitigate the impact of human rights risks on operations and internal management.
(i) Scope of investigation: Employees of the Company and key suppliers.
(ii) Human rights due diligence procedure:
			1. Impact assessment	Review and assess the impact of operations and management on human rights protection.
			2. Action planning	Discuss and formulate human rights protection management programs in Labor-Management Meetings and the Sustainable Development Committee.
			3. Monitoring & execution	Execute human rights protection management programs and track/review the effectiveness of improvements.
			4. Evaluation & improvement	Analyze, review, and adjust human rights protection measures to refine the human rights due diligence mechanism.
			(iii) Human rights issues and risk mitigation measures Based on the aforementioned process, the Company has identified the following moderate-risk issues and established corresponding risk mitigation measures:

Implementation Status				Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
Y	N	Summary Description
		Targets	Moderate-Risk Issues	Risk Mitigation Measures
		Employees	Workplace safety	Implement “ISO 45001 Occupational Health and Safety Management Systems” at the headquarters to strengthen management measures, identify safety concerns, and seek improvement opportunities to maintain a safe and healthy working environment.
			Labor-management disputes	Convene regular labor-management meetings and occupational health and safety committee meetings to facilitate communication regarding welfare systems, working environments, and labor-management cooperation.
		Suppliers	Occupational health and safety	Conduct regular audits of qualified suppliers to check for environmental violations, occupational accidents, or labor law infractions. In case of violations, suppliers are required to submit improvement plans or face termination of cooperation and inclusion in the restricted or control list.
		(iv) In addition to regular trainings on sexual harassment prevention, First Financial Holding provides comprehensive orientations for new employees covering human rights-related policies such as work rules, personnel management rules, and employee compensation and benefits. Furthermore, union representatives are invited to present on employee rights related to occupational safety and health rules and regulations. In 2025, a total of 22,470 participants across domestic and overseas operating sites participated in human rights protection trainings, with total training hours reaching 27,010 and a training coverage rate of 100%. The Company also maintains open

Promotion Item	Implementation Status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
Y	N	Summary Description
(2) Does the company establish and implement reasonable employee benefit measures (including compensation, leave, and other benefits) and appropriately reflect business performance or outcomes in employee compensation?	✓
(2) i. First Financial Holding provides diversified and employee-friendly welfare measures. These include paid leave conditions for personal, sick, and menstrual leave that exceed regulatory requirements, as well as extended leave for marriage, bereavement, and miscarriage. We offer various stipends and subsidies for marriage, childbirth, advanced studies, and vacation travel, and implement maternity, prenatal check-up, paternity, and fertility treatment leave policies that surpass legal standards. For more details, please refer to the "Labor-Management Relations" section of this annual report (Pages 167-170) and the Employee Section on the Company's website (URL: https://www.firstholding.com.tw/sites/firstholding/career/hrempcare). Additionally, the starting salary ratio between males and females in the Group is 1:1. The average salary and compensation for female managers are higher than those of their male counterparts. We have established a equal pay for equal work remuneration system to ensure gender equality. First Financial Holding 2025 human resources development ESG information
Average employee welfare expenses (NT$ thousand)	2,038
Average employee salary expenses (NT$ thousand)	1,754
Average salary of full-time non-managerial employees (NT$ thousand)	1,620
Median salary of full-time non-managerial positions (NT$ thousand)	1,473
Percentage of women in revenue-generating (e.g. sales) management positions (%)	47.9%
ii. First Financial Holding shares its business performance and results with all employees. Paragraph 1 of Article 34-1 of the Company's Articles of Incorporation stipulate: If the Company makes a profit for the year, it shall allocate 0.02% to 0.15% of the pre-tax profit, i.e. before deducting the distribution of employees' compensation and directors' remuneration, as employees compensation, and no more than 1% as directors' remuneration. At least 1% of the actual amount distributed as employees' compensation for the current year shall be specifically allocated as compensation for grassroots employees. However, if the Company has accumulated losses,

Promotion Item	Implementation Status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
			an amount shall be reserved in advance to offset them. The Company also has established the “Rules for Issuing Employee Bonuses” and “Rules for Issuing Employees’ Compensation”. Annual performance bonuses are granted based on the achievement of various indicators, including profitability. Employees’ compensation is calculated and distributed based on the achievement rate of pre-tax profit targets and comparisons with industry peers regarding metrics such as earnings per share, return on equity, and return on assets. Salaries are also adjusted annually based on performance appraisals to provide a competitive remuneration system.
iii. (New scheme) In accordance with the "Labor Pension Act", the Group has established a defined contribution retirement plan. For employees who opt for the pension system stipulated under the "Labor Pension Act", the Group contributes an amount no less than 6% of the employee's monthly salary to their individual pension accounts at the Bureau of Labor Insurance. (Old scheme) In accordance with the "Labor Standards Act", the Group has established a defined benefit retirement plan. This plan applies to the years of service of all regular employees prior to the implementation of the "Labor Pension Act", as well as the subsequent years of service for employees who chose to continue under the "Labor Standards Act" after the new act took effect. The Group contributes between 2% and 10% of total monthly salaries to a retirement fund, which is deposited in a dedicated account at the Trust Department of Bank of Taiwan under the name of the Labor Pension Reserve Supervisory Committee.
The Group's pension contributions during 2025 (Unit: NT$ thousand)
Item	Year			2025
Pension for employees under the "Labor Standards Act" (Old scheme)	261,969
Pension for employees under the "Labor Pension Act" (New scheme)	404,767
Balance of the labor pension reserve account at Bank of Taiwan	32,665
iv. The subsidiary First Bank implemented an employee stock ownership trust since 2019, where both employees and the company contribute a fixed amount of funds to invest in First Financial Holding stock. Starting from January 1, 2024, the employee stock ownership trust program was expanded across all companies within the Group. As of the end of 2025, the participation rate reached 95.33%

Promotion Item	Implementation Status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
(3) Does the company provide a safe and healthy working environment for employees and conduct regular safety and health education for employees?	✓		(3) i. To protect the safety and health of the employees, 66 operating sites have obtained the qualified certificates of “Workplace Health Promotion Self-Certification”. Since 2018, the “ISO 45001 Occupational Health and Safety Management Systems” has been implemented at the headquarters. Through the PDCA management process, employee health risks are identified annually, and various risk prevention plans are formulated and reviewed. This system has been verified by the BSI, with a scope covering all domestic units and verification targets including all employees and contractors at the headquarters building (Verification Date: 2024/09/10–09/11; Validity Period: 2024/11/29–2027/11/28). Furthermore, risk mitigation measures are executed based on the “Hazard Identification Handbook” over occupational safety and healthy of each unit. In accordance with the Occupational Safety and Health Act and related regulations, the Company has established and implemented the “Safety and Health Work Rules”, “Key Points for Occupational Safety and Health Management”, “Prevention Plan for Diseases Triggered by Abnormal Workloads”. “Ergonomic Hazard Prevention Plan”, “Prevention Plan for Unlawful Infringement during the Performance of Duties”, and the “Maternal Health Protection Plan”. The performance of occupational safety and health supervisors in each unit is regularly evaluated, and the results are integrated into their annual individual performance appraisals, creating a strong link between compensation and operational outcomes.

ii. Each operating unit has appointed occupational safety and health supervisors, first-aid personnel, and fire safety managers in accordance with rules and regulations. These units conduct non-scheduled occupational safety and health education and training, safety maintenance, and disaster prevention drills for both new and existing employees. In the event of a work-related injury, the incident is immediately reported to the emergency center in accordance with the “Operational Guidelines for Reporting Contingent (Sudden) Incidents” for recording and tracking. The Company assists with subsequent labor insurance subsidy applications in the shortest time possible and grants official injury leave based on relevant rules and the actual circumstances. In 2025, a total of 63 employees applied for official injury leave. There were 12 employees involved in occupational accidents such as slips, falls, improper movements, or traffic accidents, accounting for 0.12% of the Group’s total workforce. The statistics for occupational safety related education and training are as follows: | (3) None. |

Promotion Item	Implementation Status	Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
Y	N	Summary Description

Number of trainees for occupational safety and health supervisor training/ hours	653 / 4,700
Number of trainees for fire safety manager training/ hours	68 / 648
Number of trainees for first-aid personnel training/ hours	635 / 2,295
Number of trainees for ISO 45001 management systems training/ hours	20 / 40
General employee	3 hours of occupational safety and health in-service training every 3 years
Furthermore, the Company conducts regular air quality, drinking water quality, and fire equipment inspections. We provide periodic health check-ups with items exceeding regulatory requirements tailored to different age groups of employees. Specialist physicians are stationed on-site two days a week, and a critical illness care mechanism has been established. Additionally, automated external defibrillators have been installed and are regularly maintained to ensure the safety and health of our employees.
iii. To prevent fire accidents, the First Financial Holding Crisis Management Handbook details the precautionary measures, emergency response protocols, and post-disaster handling procedures for fire incidents at each unit. Through on-site drills and various occupational safety and health management measures, including semi-annual fire and disaster prevention training courses, the Company strengthens employees' emergency response capabilities. In 2025, 68 employees participated in fire safety management training, with a total of 648 training hours. No fire incidents occurred during the year.
(4) Does the company establish effective career competency development and training plans for employees?
✓	(4) i. Each company within the Group has established comprehensive career competency development and training programs, including initiatives for management trainees, digital finance, the transformation of securities brokers, and insurance professionals. Professional training sessions are conducted based on business requirements and competency assessments. In 2025, number of employees participated in internal and external training courses totalled 212,798, with an average of 64 training hours per participant. The Kirkpatrick model is utilized to review and evaluate changes and effectiveness in employees' behavioral attitudes and job performance following the completion of learning and training.	(4) None.

Promotion Item	Implementation Status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
			ii. The statistics regarding financial and foreign language certifications, along with the corresponding subsidies, are presented in the table below:
			Year	2024
			Item	2025
			Certified anti-money laundering specialist	1,448
			Anti-money laundering and countering terrorism professional	3,602
			Basic and advanced sustainable finance certifications	205
			Number of employees passing English proficiency tests of LTTC, IELTS, TOEFL, TOEIC, BULATS, GEPT	3,455
			Number of employees passing Japanese, Spanish, Korean and German proficiency tests JLPT and LTTC	386
			Number of employees receiving subsidies for foreign language training and testing during the year	1,152
			Amount of subsidies for foreign language training and testing (unit: NT$ 10,000)	437
				448
(S) Regarding issues such as customer health and safety, customer privacy, marketing, and labeling of products and services, does the company comply with relevant laws, regulations, and international standards, and formulate policies and grievance procedures to protect consumer or customer rights?	√		(S) i. To ensure the protection of consumer rights, the First Financial Holding Sustainable Development Policy explicitly mandates the establishment of management mechanisms for treating customers fairly, as well as handling consumer complaints and disputes. The sale or provision of controversial products and services is prohibited. Information regarding products and services must be disclosed in detail to ensure the truthfulness of advertising content. There shall be no falsehood, fraud, concealment, or any other circumstances that could mislead others. Stringent protection measures must be applied to customer data, and any unauthorized external disclosure is strictly prohibited.	(S) None.

Promotion Item	Implementation Status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
			ii. To implement the management of personal data protection, the Company and its subsidiaries have established the “Personal Data Protection Policy”, “Personal Data Management Operational Guidelines”, and the “First Financial Group Operational Guidelines for Emergency Response, Reporting, and Prevention of Material Personal Data Incidents”. Measures to protect customer data confidentiality are published on the homepages of the Company’s and each subsidiary’s websites. Regular education and training are conducted to ensure the Group’s rigorous protection and management of personal data.

iii. Each company’s website and products and services related documents clearly specify fee schedules, various standardized business contracts, relevant product instructions manuals, and risk disclosures. Furthermore, comprehensive product information is fully disclosed in prospectuses and product fact sheets, ensuring that consumers can easily access information regarding goods and services.

iv. In alignment with the “Principles for Treating Customers Fairly in the Financial Services Industry” promoted by the Financial Supervisory Commission, First Bank, First Securities, First Securities Investment Trust, and First Life Insurance have all established and promulgated their “Treating Customers Fairly Policies and Strategies” and published “Customer Service Commitments” on their respective websites. The implementation of these treat customer fairly principles is reviewed periodically, and relevant improvement measures are formulated. These results are reported to the Boards of Directors of each subsidiary, as well as to the Company’s Sustainable Development Committee and the Board of Directors. In 2025, First Bank and First Securities were both ranked in the top 25% of firms in the Financial Supervisory Commission’s “Treating Customers Fairly” evaluation.

v. To effectively handle complaints and disputes, the Group has established the “Operational Guidelines for Handling Customer Complaints” and various business dispute resolution procedures. Information regarding online customer service, the 0800 toll-free service hotline, business consultation hotlines, and complaint mailboxes is disclosed on the official website. In 2025, each subsidiary regularly compiled material customer complaint cases for reporting to the Board of Directors. The types, volume, compensation amounts, and handling status of complaints submitted by customers through the Financial Ombudsman Institution were reported to the respective Boards of Directors for review. The Group has also obtained the international standard certification of “ISO 10002 Quality Management Systems for Complaints Handling”. | |

Promotion Item	Implementation Status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
(6) Does the company formulate a supplier management policy requiring suppliers to comply with regulations on environmental protection, occupational safety and health, or labor human rights, and what is the implementation status?	✓		(6) First Financial Holding has established the “Supplier Management Guidelines” as the policy and guiding principles for supplier management across all Group companies. In 2020, the Group implemented the seven core subjects of the “ISO 20400 Sustainable Procurement Guidance” and obtained certification. In 2025, First Financial Holding continued to receive level 4, high level of recognition, of the “ISO 20400 Sustainable Procurement Certification”. Through a three-step supplier management process, the Group actively builds a green supply chain and continues to implement sustainable supplier management and educational training. The details are as follows:

(i) Pre-screening: Prior to the bidding process, the Company conducts background checks to determine if potential suppliers have been involved in environmental pollution, violations of occupational safety and health regulations, or labor rights infractions such as child labor or forced labor, or any incidents that jeopardize the public interest. Suppliers with such records are required to provide explanations for improvement or are excluded from cooperation. Those who pass the investigation are included in the qualified vendor database and prioritized for cooperation. As of the end of 2025, a total of 4,725 suppliers have pledged their support for the First Financial Holding Sustainable Development Policy.

(ii) Mid-term commitment: During the contracting phase, suppliers are required to sign the "Human Rights and Environmental Sustainability Clause Commitment Statement" and comply with the "First Financial Holding’s and its Subsidiaries’ Supplier Management Guidelines”. The Group actively communicates these expectations to suppliers, requiring them to pledge compliance with the basic labor and human rights protection principles of international conventions, commit to implementing fair and equitable human resources policies, and protect the natural environment while pursuing environmental sustainability. In 2025, 100% of lessees committed to using green building materials. The "Human Rights and Environmental Sustainability Clause Commitment Statement" was signed 3,787 times by suppliers, and First Financial Holding’s "Supplier Management Guidelines” were agreed 2,270 times by suppliers. | (6) None. |

Promotion Item	Implementation Status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
			(iii) Post-management: The Group promotes social sustainability and environmental protection concepts through supplier meetings, where the "Contractor Occupational Safety and Health Management Precautions Guidelines" and "Supplier Management Guidelines" are detailed. In May 2025, a Supplier Engagement Meeting on greenhouse gas inventory and climate risk management was held to assist suppliers in gradually completing their carbon inventories. A total of 79 suppliers, specifically those in IT equipment and maintenance, printing, and advertising with procurement amounts exceeding NT$1 million and active cooperation within the past two years, completed the carbon inventory data submission. Based on these submissions, suppliers were graded; those with A or B ratings will receive performance bond discounts when participating in bidding projects in 2026, thereby encouraging low-carbon management practices among suppliers.

(iv) The Group regularly audits qualified suppliers to check for environmental violations, occupational accidents, or labor law infractions. In such events, suppliers are required to submit improvement plans or face termination of cooperation and inclusion in the restricted or control list. In 2025, on-site inspections were conducted for 11 suppliers, none of which were found to have occupational accidents or violations of environmental or labor regulations. | |
| 5. Does the company prepare sustainability reports or other reports disclosing non-financial information by referring to internationally recognized reporting standards or guidelines? Have the aforementioned reports obtained assurance or guarantee opinions from a third-party verification body? | ✓ | | 5. (1) First Financial Holding has published an annual Sustainability Report for 15 consecutive years since 2011. The 2025 Sustainability Report was prepared in accordance with the Global Reporting Initiative Standards: 2021 Edition, the United Nations Sustainable Development Goals (SDGs), and the industry-specific standards for "Commercial Banks" and "Consumer Finance" issued by the US Sustainability Accounting Standards Board (SASB).

(2) The First Financial Holding 2025 Sustainability Report has been verified by the British Standards Institution (BSI) in accordance with the AA1000 Type 2 Assurance Standard and the GRI Standards for materiality, inclusivity, responsiveness, and impact. The report meets the requirements for AA1000AS v3 Type 2 High Level of Assurance and the GRI core options standards. Furthermore, the disclosures made in accordance with SASB have undergone Limited Assurance procedures executed by Ernst & Young, for which an independent assurance report has been obtained. | None. |

Promotion Item	Implementation Status			Deviations from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description

If the company has established its own sustainable development principles based on the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies", please describe any discrepancies between its implementation and the established principles:

The Company has established the "Sustainable Development Principles" in accordance with the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies" and strictly complies with them. The implementation status is as described above, and there is no discrepancy between the actual operations and the established principles.

Other important information helpful in understanding the execution of sustainable development: For other information regarding the execution of sustainable development, please refer to the Company's Sustainability Report at: https://csr.firstholding.com.tw/tc/csr_report.html.

2.2.7 Climate Related Information Of The Financial Holding Company

Item

Implementation status

1. Describe the oversight and governance of climate-related risks and opportunities by the Board of Directors and management.

The Board of Directors of First Financial Holding serves as the highest supervisory authority for the First Financial Group's climate risks. Under the Board, the "Sustainable Development Committee" and the "Risk Management Committee" are established to oversee key climate risk strategies, summarized as follows: (1) Board of Directors of First Financial Holding: As the highest governing body for the Group's climate change issues, it is responsible for approving, guiding, and ensuring the effective operation of risk policies. (2) Currently composed of three Independent Directors, the Sustainable Development Committee meets at least twice a year. Its primary responsibilities include formulating short-, medium-, and long-term ESG targets and action plans related to climate change, as well as reviewing the annual ESG assessment criteria for subsidiaries. Furthermore, the Sustainability Committee Working Group meets quarterly to track and review the progress of climate change and ESG annual targets. The implementation results for the previous year are reported to the Board within four months after the end of the fiscal year. To ensure the achievement of Group-wide objectives, the attainment of climate-related ESG targets is incorporated into the annual business performance evaluations of each subsidiary. (3) Risk Management Committee is chaired by the Chairman of First Financial Holding, with the President, Executive Vice Presidents, and the Chairmen and Presidents of all subsidiaries serving as members. In 2025, it completed the submission of climate risk assessment results and the implementation status of mitigation measures, which have been reported to the Board of Directors for acknowledgment.

2. Describe how identified climate risks and opportunities impact the business, strategy, and finances of the enterprise (across the short, medium, and long term).

(1) Risk dimension: Identification of the impacts of climate-related transition and physical risks on business, strategy, and finance. A. Transition risks: a. Short-term: Increased electricity costs or carbon fees/taxes; rising compliance costs due to climate-related rules and regulations government bodies stipulate for the financial sector; and the transition to low-carbon technologies. b. Medium-term: Risks arising from clients failing to carry out low-carbon transitions and shifts in consumer behavior within the market.

Item	Implementation status
	c. Long-term: Changes in market preferences and reputational risks caused by negative media coverage of investing and financing clients due to climate issues

B. Physical risks:
a. Short/medium-term: Increased frequency of extreme rainfall, droughts, flooding, and slope disasters, or changes in average precipitation patterns.
b. Long-term: Rising sea levels caused by persistent high temperatures and long-term changes such as recurring heatwaves. |
| | (2) Opportunity dimension: Evaluation of the impacts of identified short-, medium-, and long-term climate opportunities on business, strategy, and finance.

A. Short-term:
a. "Product and services": Developing sustainability-linked loans (SLL), sustainability bonds, sustainability-linked bonds (SLB), and sustainable time deposits; implementing stewardship lending and establishing client engagement mechanisms in accordance with the Equator Principles; guiding client transitions by sharing circular economy concepts or offering preferential interest rate deduction incentives; and providing products and services with low environmental impact, particularly in greenhouse gas emission reduction or climate change adaptation.
b. "Resource efficiency": Prioritizing equipment with energy-saving and environmental labels (e.g., HVAC, lighting) during the installation or replacement of real-estate for own-use or investment; consulting on enhanced energy-saving measures during annual ISO 50001 energy management audits. Also ensuring new buildings obtain green building labels and building energy efficiency ratings labelling, while continuously improving energy efficiency in existing bank-owned buildings and obtaining green building labels. |
| | B. Medium-term: "Market opportunities"
Increasing investments in green bonds, social bonds, and sustainability-linked bonds (SLB) tied to climate performance targets to support the development of green industries. This includes channeling funds into enterprises actively developing forward-looking economic activities; increasing investment and financing in green power and renewable energy sectors; expanding green corporate loan programs for companies with positive environmental impacts; and participating in government or corporate renewable energy production. To continue evaluating investment opportunities in the renewable energy industry to align with environmental sustainability trends. |
| | C. Long-term: "Enhance organizational resilience"
Avoiding the selection of high physical risk areas for the establishment of operational sites. |
| | 3. Describe the financial impacts of extreme weather events and transition actions. |
| | (1) The bank subsidiary conducts climate change scenario analysis in accordance with the "Operational Plan for Climate Change Scenario Analysis by Domestic Banks" promulgated by the competent authority. The analysis evaluates financial impacts of climate changes under different time scales, specifically covering both long-term and short-term stress scenarios. The long-term scenarios utilize data from the Network for Greening the Financial System (NGFS), specifically the Net Zero 2050, Delayed Transition, and Fragmented World scenarios, combined with IPCC AR6 scenario data to simulate potential financial impacts under climate risk conditions at the 2030 and 2050 benchmarks. Conversely, the short-term scenarios focus on impact assessments of specific single events within a shorter timeframe, utilizing a different set of scenario parameters. Evaluations show that even under the most severe occurrences within these long/short-term scenarios, the resulting expected losses and subsequent financial impacts remain controllable. |

Item	Implementation status
	(2) The insurance subsidiary performs climate change scenario analysis based on the "Climate-related Financial Disclosure Guidelines for the Insurance Industry." Through three sets of climate change scenarios, orderly transition, disorderly transition, and too little, too late, the subsidiary evaluates potential losses under varying climatic conditions.
4. Describe how the processes for identifying, assessing, and managing climate risks are integrated into the overall risk management system.	First Financial Group has integrated emerging risks, including climate change risks, into the risk management policies and guiding principles of First Financial Holding and its subsidiaries. Each subsidiary has completed the revision of its respective risk management policies to regularly review Group-wide limits on specific industries and high-pollution and high-carbon emission sectors. These findings are reported every two months to the financial holding company's Risk Management Committee and the Board of Directors. Specifically, the bank subsidiary has established a "Risk Management Policy" that incorporates climate risk considerations to define a structured climate risk management process, while simultaneously integrating climate change risk factors into the bank's risk appetite. By analyzing the types and characteristics of various climate-related risks, the bank evaluates their impact on individual and macroeconomic activities, as well as their correlation with traditional risk categories to identify potential financial impacts and specific climate-related vulnerabilities. For example, as governments globally impose carbon taxes or fees on high-emission industries, enterprises that fail to successfully undergo a low-carbon transition may experience a deterioration in their financial health. This, in turn, increases the credit risk of investment and financing targets, ultimately leading to potential financial losses for the enterprises.
5. If scenario analysis is used to assess resilience to climate change risks, specify the scenarios, parameters, assumptions, analytical factors, and major financial impacts.	(1) In accordance with the "Operational Plan for Climate Change Scenario Analysis by Domestic Banks", the bank subsidiary conducts climate scenario analyses across two different time scales, long-term and short-term stress scenarios, to evaluate potential financial impacts.
(2) Assessing the impairment of collateral value for corporate loan and individual mortgage from domestic flooding. The assessment methodology assumes that collateral categorized as townhouses or located on the first floor (or below) will experience value loss due to flood damage, whereas the value of buildings on the second floor and above remains unaffected. For corporate real estate collateral, a comparison between two scenarios for the 2050s (SSP1-1.9 and SSP5-8.5) shows minimal difference in total value impaired in Eastern Taiwan. However, the difference in value lost between the two scenarios is 4% in Northern Taiwan, 24.8% in Central Taiwan, and 33.5% in Southern Taiwan. For individual mortgage collateral, the 2050s scenario comparisons also show little variance in Eastern Taiwan. However, the difference in value impaired between the two scenarios reaches 8.4% in Northern Taiwan, 11.7% in Central Taiwan, and 34.7% in Southern Taiwan.
6. If a transition plan exists for managing climate-related risks, describe its content and the metrics and targets used to identify and manage physical and transition risks.	To effectively measure and manage climate-related risks, the Group continuously tracks key metrics to monitor climate risk and facilitate an efficient low-carbon transition. The relevant transition plans, metrics, and targets are as follows:
	Transition Plan
Metrics and Targets
	Commitment to gradually phase out financing for the coal industry
Cease “new project financing for coal-related projects and new corporate lending for companies where coal mining, coal-fired power generation, or coal infrastructure (processing, pipelines, rail transport) accounts for over 30% of revenue”. “new project finance related to oil sands/ arctic oil and gas/ ultra-deepwater oil and gas, as well as corporate lending for companies where upstream extraction, production, or infrastructure (pipelines and terminals) of the aforementioned unconventional oil and gas account for over 15% of revenue”. Existing credit limits must be reduced upon maturity to gradually phase out financing for these sectors.

Item	Implementation status
Transition Plan	Metrics and Targets
Establishment of "credit Limits for high-pollution/ high-carbon emission industries"	Set a cap on "credit exposure to high-pollution/high-carbon emission industries as a percentage of the bank's total credit exposure" (14.0%, 13.5%, 13.0%, and 13.0% for 2022–2025, respectively). Compliance is monitored monthly; as of the end of December 2025, the exposure remained below the ceiling.
Designation of "high-pollution/ high-carbon emission industries" as subjects for prudent assessment	Under the rule of "Sustainable Lending Policy" high-pollution/ high-carbon emission industries are subject to due diligence and prudent assessment. If a client has taken no measures to address climate issues, the bank shall urge the client to improve and undergo transition through lending conditions to mitigate or adapt to climate change risks.
Integration of greenhouse gas emissions and carbon reduction efforts into the credit review process	During the credit extension process, regardless of the industry, inquires and disclosures of the client's publicly available information on greenhouse gas emission for the past three years are required. If emissions increase for two consecutive years, the reasons must be specified, and the client must be consulted regarding their energy-saving plans or carbon reduction targets.
Prudent assessment of client transition risks faced by credit clients	During loan applications, the bank strengthens the assessment of how international carbon reduction or carbon neutrality trends affect borrowers. To facilitate assessing borrowers' transition risks, this includes verifying whether the client is subject to carbon fees under the Climate Change Response Act or belongs to an enterprise or supply chain that has declared carbon neutrality or net-zero emissions.
Monitoring investment ratios in high-carbon emission sectors to avoid indirect environmental harm	Each subsidiary has established investment limits and control mechanisms for high-pollution/high-carbon emission industries. These are tracked and monitored quarterly at the financial holding company's Sustainable Development Committee Working Group meetings to strengthen risk management of climate change risk for investment portfolios.
7. If internal carbon pricing is used as a planning tool, explain the basis for the price determination.	Since 2020, an internal carbon pricing mechanism has been implemented. Each year, electricity saving targets are set for domestic operating units in alignment with overall carbon reduction goals to enhance carbon awareness and recognize carbon costs. Starting from 2021, the progress of these targets has been announced quarterly, with final achievement rates and results published after the fourth quarter. The basis for determining the internal carbon price is calculated as the cost of carbon reduction per metric ton, based on actual reduction measures and total investment (including green power wheeling, green building improvements, rooftop solar installation costs etc.). For 2025, the calculated carbon reduction cost was NT$4,358 per metric ton. Units that fail to meet their electricity saving targets are informed of the excess carbon emission fees they should incur and are provided with feasible carbon reduction actions for improvement. Conversely, personnel in high-performing units that meet their targets are rewarded, and their specific carbon management practices are shared as references for other domestic units. In 2025, cumulative electricity savings from domestic operating units reached approximately 1.037 million kWh compared to the base year (2022), resulting in a reduction of approximately 491.88 metric tons of CO2e. The potential external carbon costs avoided through these emission reductions amounted to NT$2.143 million.

Item

Implementation status

8. If climate-related targets are set, specify the activities covered, greenhouse gas emission scopes, planning horizons, and annual progress. If carbon offsets or renewable energy certificates (RECs) are used, specify the sources and quantities of carbon credits or RECs.

(1) Setting climate target: In order to meet the national 2050 net zero emission target, the Company's carbon reduction targets has been approved by Science Based Targets Initiative (SBT), our reduction roadmap established for Scope 1 and Scope 2 is in line with the target to control the global temperature rise within 1.5°C and carbon emissions from operating activities is to be reduced by at least 63% by 2035, compared to the 2022 base year.

(2) Carbon emission calculation scope: The Company and all its subsidiaries in the consolidated financial statements have completed the inventory and assurance of scope 1 and 2 emissions in 2025. The carbon inventory standard is based on ISO14064-1, and the total carbon emissions are 17,184.14 metric tons of CO2e whereas the SGS verification certificate was obtained in April 2026. Among them, the scope 1 emissions are mainly from fuel for company vehicles, generator diesel and gas, and the scope 2 emissions are mainly from electricity consumption.

(3) Progress towards 2025 carbon reduction targets: Scope 1 and 2: 2025 reduction target: A 14.54% reduction compared to 2022, equivalent to a decrease of 3,128.21 metric tons of CO2e. 2025 reduction results: An actual reduction of 20.13% compared to 2022, equivalent to a decrease of 4,330.32 metric tons. (A total of 6,789.054 thousand kWh of renewable energy certificates (RECs) were utilized, translating into a carbon reduction of 3,218.01 metric tons of CO2e.) |
| 9. Greenhouse gas inventory and assurance status, along with reduction targets, strategies, and concrete action plans (to be filled separately in 1-1 and 1-2). | |

1-1 Greenhouse gas inventory and assurance status for the past two years

1-1-1 Greenhouse gas inventory information

Specify the greenhouse gas emissions (metric tons CO2e), emission intensity (metric tons CO2e/ NT$ million), and data coverage for the past two years.

| Year
Emission Source | 2024 | | 2025 | | Data Coverage |
| --- | --- | --- | --- | --- | --- |
| | Total Emissions (metric tons CO2e) | Intensity (metric tons CO2e/ NT$ million) | Total Emissions (metric tons CO2e) | Intensity (metric tons CO2e/ NT$ million) | |
| Direct Emissions (Scope 1) | 2,829.29 | 0.04 | 2,600.89 | 0.03 | The Company and its subsidiaries included in the financial statements |
| Energy Indirect Emissions (Scope 2) | 15,579.71 | 0.22 | 14,583.25 | 0.19 | |
| Scope 3 Investment and Financing | 14,333,285 | 4.4 | 13,282,037 | 3.9 | “equity investment”, “corporate bonds”, “commercial loans”, “project finance”, “commercial real estate”, “mortgages” and “sovereign debt”. For detailed information, please refer to the financial disclosure in the Group’s TCFD report. |

Note 1: The emission intensities for Scope 1 and Scope 2 are calculated based on the Company's revenue of NT$ 72,119.475 million for 2024 and NT$77,593.748 million for 2025.

Note 2: The intensity of Scope 3 Investment and Financing = Total Emissions (metric tons CO2e) / Total value of Investment and Financing portfolio (NT$ million).

1-1-2 Greenhouse gas assurance information

Specify the assurance status for the past two years as of the publication date of this annual report, including the assurance scope, assurance institutions, assurance standards, and assurance opinions.

Of the total greenhouse gas emissions disclosed by the Company, the combined Scope 1 and Scope 2 emissions amounted to 18,409.01 metric tons of CO2e in 2024 and 17,184.14 metric tons of CO2e in 2025. The assurance scope covers the Company and its subsidiaries within the consolidated financial statements. Following the completion of the greenhouse gas inventory based on ISO 14064-1 standard, the results were provided to the assurance institution, SGS Taiwan Ltd. (SGS), for verification in accordance with the ISO 14064-3 standard. The resulting assurance opinion attained a reasonable assurance level.

1-2 Greenhouse gas reduction targets, strategies, and concrete action plans

Specify the greenhouse gas reduction base year and its data, reduction targets, strategies, concrete action plans, and the status of target achievement.

Reduction targets and achievement status:

In June 2024, the Group received validation from the Science Based Targets initiative (SBTi) for the following carbon reduction targets:

Scope 1 and 2: Starting from the base year of 2022, greenhouse gas emissions from own operations must be reduced by at least $63\%$ by 2035, and by $38.77\%$ by 2030. The 2025 target required a $14.54\%$ reduction, a decrease of 3,128.21 metric tons, compared to the 2022 base year. In 2025, total Scope 1 and Scope 2 emissions amounted to 17,184.14 metric tons of CO2e, representing a reduction of 4,330.32 metric tons of CO2e or a $20.13\%$ decrease compared to the 21,514.46 metric tons of CO2e in the 2022 base year.
Scope 3 investment and financing activities: As of 2022, the investment and financing portfolio targets cover $17\%$ of the total assets under management. Mandatory activities account for $18\%$ , optional activities account for $49\%$ , and out-of-scope activities account for $33\%$ .

Asset Class	Methodology	Target Language
Electricity generation project finance	SDA (Sectoral de-carbonization approach)	Commit to reducing the carbon emissions of the electricity generation project finance portfolio by 84.0% / MWh by 2035 compared to the 2022 base year.
Commercial loans: commercial real estate	SDA (Sectoral de-carbonization approach)	Commit to reducing GHG emissions per square meter of the commercial real estate investment and financing portfolio by 68.0% by 2035, using 2022 as the base year.

Asset Class	Methodology	Target Language
Commercial loans: electricity generation sector	SDA (Sectoral de-carbonization approach)	Commit to reducing the carbon emissions of the electricity generation business loan portfolio by 84.3% / MWh by 2035 compared to the 2022 base year.
Commercial loans: other long-term debt and SME loan	TR (Temperature rating)	• Commercial loans: Align the Scope 1+2 temperature rating of the other long-term debt and SME investment and financing portfolio from 3.17°C in 2022 to 2.70°C by 2028. • Commercial loans: Align the Scope 1+2+3 temperature rating of the other long-term debt and SME investment and financing portfolio from 3.18°C in 2022 to 2.78°C by 2028.
Listed equity & bonds, mutual funds, ETFs, REITs	TR (Temperature rating)	• Align the Scope 1+2 temperature rating of the listed equity and bond investment and financing portfolio from 2.27°C in 2022 to 2.10°C by 2028. • Align the Scope 1+2+3 temperature rating of the listed equity and bond investment and financing portfolio from 2.60°C in 2022 to 2.40°C by 2028.

Strategies and concrete action plans:

A dedicated "green building label acquisition project" team was established in 2010. As of the end of 2025, 38 existing branch buildings had been renovated and awarded the Green Building Label by the Ministry of the Interior (including 30 Diamond-class, 2 Gold-class, 1 Silver-class, 2 Bronze-class, and 3 Certified-level labels). Additionally, two new buildings obtained Gold-level Green Building Labels. In 2021, the London Branch building received a PASS-level Green Building Label from the Building Research Establishment (BRE) in the UK. By 2025, the total annual carbon reduction from all green buildings reached 3,010 metric tons CO2e.
First Financial Holding has progressively established 27 solar-powered branches, achieving a combined annual carbon reduction of 164.55 metric tons CO2e. In 2025, a total of 6.79 million kWh of green power and renewable energy certificates were purchased. A target has been set for 2026 to produce and utilize 290 MWh of renewable energy, continuously increasing its proportion to implement environmental sustainability policies. "solar power and rainwater harvesting eco-aquaponic green rooftops" were installed at the Wanhua, Huashan, and Changan branch buildings. These systems integrate solar power, rainwater recycling, and aquaponics to create zero-carbon farms, embodying the threeLife concept of sustainable production, living, and ecology.
In alignment with the commitments made to the Financial Supervisory Commissions Coalition of Movers and Shakers and the Group's SBT near-term carbon reduction targets (validated and published on the SBTi official website), specific strategies and short-, medium-, and long-term action plans for 2026 Scope 3 (Category 15) investment & financing categories have been defined by the Responsible Finance Working Group under the Group's Sustainable Development Committee. Implementation progress is tracked quarterly. For further details, please refer to the relevant sections of the TCFD Report (URL: https://csr.firstholding.com.tw/tc/tcfd_report.).

2.2.8 Implementation Status Of Ethical Management, Deviations From The Ethical Management Best Practice Principles For TWSE/TPEx Listed Companies, And Reasons Thereof

Evaluation Item	Implementation Status
	Y	N	Summary Description
1. Formulation of ethical management policies and programs
(1) Has the Company formulated an ethical management policy approved by the Board of Directors, and clearly stated its policies and practices in its internal rules and external documents, as well as the commitment of the Board and senior management to actively implement such policies?	√		(1) 1. The Company has established the "Ethical Management Best Practice Principles and Operating Guidelines" as the binding policy for the Group's integrity. These guidelines were reviewed and approved by both the Sustainable Development Committee (formerly the Ethical Management Committee, renamed on June 26, 2025, with its original duties integrated) and the Board of Directors. The policy explicitly prohibits and prevents unethical behaviors, including anti-corruption and bribery, confidentiality breaches, anti-competitive practices, unfair competition, and insider trading, while establishing whistleblowing mechanisms. This policy applies globally to all Group employees, subsidiaries, contractors, suppliers, and service providers.
2. The Company discloses its "Ethical Management Best Practice Principles and Operating Guidelines", "Implementation of Ethical Management and Adopted Measures", and "Supplier Management Key Points" on the Company website, the Market Observation Post System, and external documents such as annual reports, and sustainability reports. On April 10, 2025, the Company co-hosted the forum "Financial Integrity- Striking Back Against Fraud with Technology" with the Economic Daily News to enhance public awareness of fraud prevention. The Company also declared its ethical management policies during the Investors' Conference on December 3, 2025, ensuring that suppliers, clients, and other business-related institutions clearly understand the Group's philosophy and rules of ethical management. The "Sustainability Policy" also explicitly states the Group's commitment to fostering a corporate culture of integrity and ethics, which is disclosed on the official website.
3. The Company has disclosed its "Whistleblowing System Implementation Rule" in the "Corporate Governance" section of its corporate website, clearly stating that employees or external parties may blow a whistle if they discover any potential crime, fraud, or violation of laws and regulations.	(1) None.

Evaluation Item	Implementation Status
	Y	N	Summary Description
(2) Has the Company established a risk assessment mechanism for unethical conduct, regularly analyzing and evaluating business activities within its scope of operations that carry a higher risk of unethical behavior? Has the Company formulated programs to prevent unethical conduct based on these assessments, at least covering the preventive measures stipulated in Paragraph 2, Article 7 of the "Ethical Management Best Practice Principles for TWSE/TPEx Listed Companies"?	✓		4. Starting from the 27th Board of Directors on April 10, 2025, the subsidiary First Bank established an Audit Committee to replace the supervisor system. The committee is responsible for overseeing financial statement presentation, the appointment of CPAs and its independence, internal controls, auditing operations, legal compliance, and risk management to enhance board oversight and governance quality. In alignment with the Financial Supervisory Commission's initiative for financial institutions to designate specialized anti-fraud units supervised by executives at the Executive Vice President level or above, First Bank established the "Key Operational Points for Fraud Prevention and Interception" on May 12, 2025. A cross-departmental "Anti-Fraud Task Force" supervised by an Executive Vice President was formed to combat fraud through professional, organized, and sustained efforts, utilizing digital technology to refine measures and strengthen cross-departmental communication. There are also "Policy on Fair Treatment of Customers", "Strategy on Fair Treatment of Customers", and "Operational Guidelines for the Fair Treatment of Senior Clients" promulgated.
5. Both First Bank and First Securities were ranked in the top 25% of the 2025 Evaluation for Treating Customers Fairly.
(2) 1. The Company annually requires each subsidiary to conduct unethical behavior risk assessments to self-identify high-risk areas and vulnerabilities. This enables the implementation of corresponding control/mitigation measures to reduce residual risk levels.
2. The Group enterprises and organizational internal control systems encompass preventive measures for the following behaviors:
A. Bribery and corruption
Human resource related rules, such as the "Personnel Management Rule" and "Work Rule", strictly prohibit employees from using their positions for unethical conducts, including receiving benefits for self or others. Verified violations result in disciplinary action in according to human resource related rules. Any form of corruption, bribery, extortion, or embezzlement is strictly forbidden.
B. Political contributions
The "Procedures for Ethical Management and Guidelines for Conduct" prohibits the Group enterprises and organizations from providing political contributions to political parties, organizations, or candidates.	(2) None.

Evaluation Item	Implementation Status
	Y	N	Summary Description
			C. Improper charitable donations or sponsorships
The "Donation Management Guideline" specifies eligible recipients, restrictions, and approval levels for both related and non-related party donations. Internal control system further defines the hierarchy of authorization and requirements for material information disclosure. Benefits from sponsorships should be clear and reasonable. Donations or sponsorships must not be provided to business counterparts or persons with conflicts of interest. All activities must comply with laws and regulations and internal operating procedures, ensuring funds are used for their intended purpose and are not disguised bribes.

D. Offering or accepting of unreasonable gifts, hospitality, or improper benefits
Human resource related rules, such as the "Personnel Management Rules" and "Work Rules" prohibit employees from offering or accepting unlawful benefits in connection with their duties or for actions that breach duties. Strict penalties apply to any verified acts of corruption, bribery, extortion, embezzlement, etc.

E. Infringement of trade secrets, trademarks, patents, copyrights, and other intellectual property rights
To strengthen the Group's intellectual property management system, effectively utilize operational resources, and enhance intellectual property application capabilities, the Company has established the "Intellectual Property Management Policy of First Financial Holding Co., Ltd." and the "Key Points for Trade Secret and Intellectual Property Management of First Financial Holding Co., Ltd." Group enterprises and organizations have also implemented the "Detailed Rules for Protection of Secrets." Through methods such as signing employment contracts or agreements that include trade secret protection clauses, the Group prevents the leakage of trade secrets and the infringement of intellectual property rights. Furthermore, regular confidentiality training and self-audits are conducted to heighten employees' awareness and prevent the unauthorized disclosure of trade secrets. To protect innovative R&D achievements and continuously implement intellectual property management, the subsidiary First Bank has formulated an Intellectual Property Management Plan. It is mandated to report | |

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
			intellectual property-related matters and implementation status to the Board of Directors every third quarter; the most recent report was presented on September 26, 2025. As of the end of 2025, a total of 205 patents have been granted, including 72 invention patents, 131 utility model patents, and 2 design patents, which are progressively applied across various business and risk management sectors. Additionally, the bank holds 99 valid domestic trademarks and 70 valid foreign trademarks. On October 24, 2024, the bank again passed the Taiwan Intellectual Property Management System (TIPS) certification (valid until December 31, 2026), making it a leading bank to simultaneously achieve TIPS Level A certification for both patents and trademarks.

F. Unfair competition
The "Sustainable Development Policy" mandates a fair customer treatment management mechanism, operating business with fairness and transparency while prohibiting false advertising and unfair competition. Each subsidiary follows the self-regulatory codes for their respective industry associations, covering advertising, sales, and operations, and has established related management rules. To ensure fair competition, subsidiaries actively collect and analyze peer penalty cases and incorporate cases into business training programs and regular compliance educational training, strengthening awareness and preventing similar violations.

G. Prevention of harm to consumers and stakeholders during product development, procurement, and sales
The Company has established the "Co-marketing Firewall Policy and Guiding Principles", "Rules for Co-marketing Among Subsidiaries" and their enforcement key points. Together with the "Self-regulatory Key Points for Integrated Marketing Among Subsidiaries", "Management Points for Cross-utilization of Customer Data" and more, these regulations ensure that all Group companies adhere to relevant laws and regulations, principles to treat clients fairly, and various self-regulatory protocols when conducting sales activities, thereby fulfilling the commitment to financial consumer protection. In addition, to enhance customer convenience, strengthen Group risk control, and promote cross-industry collaboration (including with other financial institutions), the "First Financial | |

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
			Group and Inter-financial Institution Data Sharing Policy" was established to provide consistent standards for data sharing within the Group. Aside from promulgating the policy to treat customers friendly and related rules, subsidiaries have formulated operational rules such as the "Financial Consumer Protection Policy and Key Points", "Operational Procedures for Handling Customer Complaints", "Operational Procedures for Reviewing Wealth Management Products", and "Insurance Product Design Procedures", etc. These internal rules ensure the transparency and safety of products and services. Data confidentiality measures are also disclosed on the corporate website to prevent any sales activities or services from infringing upon the rights and interests of consumers or other stakeholders.

H. Illegal collection, processing, or utilization of personal data

The Group and its member organizations have established the "Personal Data Management Policy", "Operational Key Points for Personal Data Management", and related rules. These rules explicitly define the operating procedures for the collection, processing, and utilization of personal data, as well as control measures for the storage, transmission, and destruction of both physical and electronic records. Regular educational training sessions on personal data protection and drills on data breach are conducted to ensure personnel are familiar with response steps and to prevent data leakage. To prevent data breaches through system-level controls, Group companies have implemented mechanisms such as email screening and approval processes for external communications. Additionally, data loss prevention (DLP) software is used to scan personal data during USB transfers. To verify the effectiveness of these measures, the bank and life insurance subsidiaries have both obtained "BS 10012: Personal Data Management System" third-party certification. On February 27, 2025, the subsidiary First Bank amended its "Operational Key Points for Personal Data Management", adding that "cybersecurity incidents involving personal data leakage that result in damage to customer rights or affect the sound operation of the company" shall also constitute a major personal data security incident. The amendment also refined the reporting procedures to the financial holding company in the event of such incidents and | |

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
(3) Has the Company clearly specified operating procedures, guidelines for conduct, disciplinary actions for violations, and a grievance system within its programs to prevent unethical conduct? Are these programs implemented effectively and reviewed/revised on a regular basis?	✓		supplemented instructions for "calculating the number of personal data records" to ensure comprehensive management.

(3) 1. The Company has established the "Code of Conduct for Directors and Managers of First Financial Holding Co., Ltd." and the "Code of Conduct for Employees of First Financial Holding Co., Ltd.", stipulating that directors, supervisors, managers, and employees must adhere to legal and ethical standards. All directors, supervisors, managers, and employees are required to sign a code of conduct declaration letter upon appointment and annually thereafter. In cases of verified integrity violations, disciplinary actions are reviewed by the Personnel Evaluation Committee in accordance with relevant personnel management rules. The individual involved has the right to submit a defense, attend the hearing for inquiry, and file an appeal according to the "Labor Grievance Announcement." Finalized disciplinary actions, including the names of violators and details of the breach, are disclosed through internal company notices. The "Ethical Management Best Practice Principles and Operating Guidelines" further integrate ethical policies into performance appraisals, human resource policies, and commercial contracts. It also stipulates that in the event of serious integrity breach, disciplinary actions should be imposed in accordance with relevant laws and regulations or personal management rules.

To ensure strict adherence to all laws, regulations, and internal policies, the directors, supervisors, managers, and employees of the Company, bank and all non-bank subsidiaries sign the "Code of Conduct Declaration Letter for First Financial Holding Directors, Supervisors and Managers" and the "Code of Conduct Declaration Letter for First Financial Holding Employees" annually. Similarly, personnel at the subsidiary First Bank sign the "Code of Conduct Declaration Letter for First Bank Directors, Supervisors and Managers" and the "Code of Conduct Declaration Letter for First Bank Employees" every year.
The internal control systems of the Company and its subsidiaries cover all operational activities of the Company and its subsidiaries. In addition to stipulating organizational charters, managerial regulations and rules, relevant business protocols, and operational procedures, reviewing and updating these rules are conducted annually to reflect new or amended regulations, business items, or procedures. | (3) None. |

Evaluation Item	Implementation Status
	Y	N	Summary Description
			4. The "Legal Compliance System Rules" reinforce a culture of rule-of-law within the Company and its subsidiaries and provide clear channels for consultation, coordination and communication. Compliance officers in each department create, implement and carry out internal rules. Prohibitions against unethical acts, including those defined in the Employee code of conduct, work rules, the "Criminal Code", "Anti-Money Laundering Act", "Anti-Corruption Act", "Securities and Exchange Act", "Personal Data Protection Act", and "Financial Holding Company Act, are integrated into the compliance self-assessment items in each department. Corresponding compliance procedures have been established and are revised semi-annually following regulatory changes, aiming to reinforce employee's ethical concepts and beliefs while effectively assessing compliance status. Subsidiaries are also required to establish own legal compliance systems in accordance with relevant laws and aforementioned rules. Based on the "legal compliance manual", subsidiaries conduct semi-annual compliance self-assessments via written tests or sample audits to verify employees' familiarity with regulation and to examine any ill operation violating rules or regulations, thereby ensuring full compliant operations.
5. The subsidiary First Bank has implemented the "Management Key Points for the Investigation and Supervision of Abnormal Behavior or Transactions by Wealth Management Personnel" to strengthen the monitoring mechanism for the business conducts of wealth management personnel and to clearly define the responsibilities of investigating and supervising abnormal behaviors or transactions. An "independent investigation team" was established in accordance to aforementioned rules. It meets quarterly; in 2025, four meetings were held to report on investigation planning, management and supervision results regarding "suspected misappropriation of client funds by wealth management personnel" and the audit results of the investigation list regarding "patterns of suspicious misappropriation of client funds by wealth management personnel". Although statistical analysis of the 2025 cases showed no misappropriation, however, minor operational violations were identified resulting in performance score deductions for the violators and their respective business units. Mandatory reinforced educational training on the Code of Conduct by branch compliance officer and retail banking deputy manager are required for the violator.

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
			First Bank has deployed an "abnormal wealth management patterns management system", which automates the monitoring of transactions, generates alerts, and produces visualized reports to enhance the efficiency and real-time detection of suspicious signals.

The Company and its subsidiaries have Board-approved whistleblowing systems. These rules define reporting channels, investigation procedures, and whistleblower protection measures, encouraging both internal and external parties to report unethical or improper behavior. All companies not only hold regular educational training and promotional activities to ensure all personnel are familiar with the system, but also revise rules in accordance with regulatory changes. | |
| 2. Implementation of ethical management

(1) Does the Company evaluate the integrity records of those with whom it does business, and include ethical conduct clauses in contracts signed with business counterparts? | ✓ | | (1) 1. In addition to screening and managing suppliers according to the Company's "Supplier Management Key Points", the Group enterprises and organizations conduct qualification assessments and stakeholder background checks in accordance with relevant regulations before establishing business relations (including but not limited to procurement, investment, credit extension, and transactions). Procurement contracts explicitly prohibit personnel involved in the procurement process from requesting, promising, receiving, or offering bribes, commissions, percentages, brokerage fees, kickbacks, gifts, hospitality, or other improper benefits; these provisions apply equally to subcontractors. In the event of a violation, the Company has the right to terminate or rescind the contract, or to deduct the inflated price and illicit gains from the contract payment.

When conducting business activities, Group enterprises and organizations are required to incorporate clauses into all external contracts mandating adherence to the ethical management policy and the Company's supplier management key points. These contracts must also include termination clauses triggered by any unethical conducts. The Legal Compliance/ Legal Affairs Units are consulted to review the legal validity of these contracts and provide expert opinions, thereby preventing undue interference from parties engaged in unethical conduct. | (1) None. |

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
(2) Has the Company established a dedicated responsible unit under the Board of Directors to promote ethical management, which reports regularly (at least once a year) to the Board on its ethical management policies, programs to prevent unethical conduct, and oversight of implementation?	✓		The Company has established the “Sustainable Development Committee” under the Board of Directors as the dedicated unit responsible for promoting ethical management. The committee is composed of three independent directors and is tasked with the formulation and amendment of ethical management policies. At least once a year, each enterprise and organization within the Group reports its “implementation of ethical management and adopted measures” to its respective Board of Directors. These reports are subsequently consolidated by the Company as the Group’s “implementation of ethical management and adopted measures “ and presented to the Sustainable Development Committee and the Company’s Board of Directors. This process ensures effective oversight of the implementation of ethical management policies and programs designed to prevent unethical conduct.	(2) None.
(3) Has the Company established policies to prevent conflicts of interest, provided appropriate reporting channels, and ensured their effective implementation?	✓		(3) 1. The Company’s “Corporate Governance Best Practice Principles”, “Code of Conduct for Directors and Managers”, and “Code of Conduct for Employees” mandate that directors, managers, staff, and de facto controllers shall not use their positions or influence within the Company to obtain improper benefits for themselves, their spouses, parents, children, or any other third parties. In addition to prohibiting directors, managers, and staff from engaging in insider trading or disclosing non-public information to others, the Company further requires that directors adhere to a blackout period. Specifically, directors are prohibited from trading the Company’s shares during the 30 days prior to the announcement of the annual financial statements and the 15 days prior to the announcement of each quarterly financial statements.
2. The Company’s “Corporate Governance Best Practice Principles”, “Code of Conduct for First Financial Holding Directors and Managers”, “Code of Conduct for First Financial Holding employees”, “Rules of Procedure for Board of Directors Meetings”, “Charter of the Audit Committee”, and “Charter of the Remuneration Committee” explicitly stipulate the recusal requirements for directors and committee members. If a director or member has a personal interest in a matter under discussion, or represents a legal entity with such an interest, and there is a concern that this may prejudice the Company’s interests, they must recuse themselves from both the discussion and the voting. They are also prohibited from acting as a proxy for other directors to exercise voting rights on such matters. To ensure the highest standards	(3) None.

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
			of integrity, the interests of a director's/member's spouse, blood relatives within the second degree of kinship, or any company in a controlling or subordinate relationship with them shall also be deemed as a personal interest of the director/ member in that specific matter.

The Company's "Self-Regulatory Rules for Merger and Acquisition Information Disclosure" explicitly mandate that when merger and acquisition information is made public, detailed information regarding any director who has a personal interest in the transaction must be disclosed simultaneously.
The subsidiary First Bank has established the "Key Points for Preventing Conflicts of Interest and Insider Trading in Reinvestment Business" and the "Management Points for Preventing Conflicts of Interest and Insider Trading for Personnel in the Treasury Division and Financial Markets Division". The subsidiary First Securities has implemented "Bonus Rules for Business Personnel" and restricts internal personnel to opening trading accounts only within the company. The internal control system also includes specialized verification mechanisms to eliminate any concerns regarding conflicts of interest between internal personnel and clients during order execution. The subsidiary First Securities Investment Trust has established the "Manager's Code of Conduct", "Key Points for Fair Order Placement of Discretionary Investment Accounts", "Operating Guidelines for Preventing Conflicts of Interest Between Concurrent Fund Managers and Discretionary Investment Managers", as well as a comprehensive "Conflict of Interest Management Policy" and "Stewardship Policy". The subsidiary First Life has implemented the "Corporate Code of Ethics" and the "Operating Key Points for the Conflict of Interest Prevention Mechanism for Domestic Equity Investment Personnel" among other conflict management policies.
The "Rules for the Implementation of the Whistleblowing System" of the Company and its subsidiaries define the scope of recusal for stakeholders. Any individual with a conflict of interest must recuse themselves from the entire process of a whistleblowing case, including receipt, investigation, deliberation, re-examination, and reporting. | |

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
(4) To implement ethical management, has the Company established effective accounting system and internal control system? Does the internal audit unit develop relevant audit plans based on the assessment of unethical conduct risks and audit the compliance status of programs to prevent unethical conduct, or entrust a CPA to perform the audit?	✓		(4) 1. The accounting systems of the Group's enterprises and organizations are established and executed in accordance with the Regulations Governing the Preparation of Financial Reports by Financial Holding Companies, Regulations Governing the Preparation of Financial Reports by Securities Issuers, accounting system templates from various industry associations, International Financial Reporting Standards endorsed by the Financial Supervisory Committee, and other relevant laws and regulations. Furthermore, specific accounting systems, internal control systems, and related operational and review processes are defined for high-risk business activities to mitigate the possibility of maintaining off-the-books accounts or secret accounts. Regular internal and external audits, as well as CPA audits, are conducted to ensure the continuous effectiveness of these systems' design and execution. On a quarterly basis, the Company invites its certified public accountants to attend Audit Committee and Board of Directors meetings to communicate with directors regarding financial reports that have been reviewed or audited. Additionally, the Company arranges at least one private meeting annually between independent directors and the CPAs to facilitate direct communication.

The Company has established a “Tax Governance Policy” which stipulates that the Board of Directors is the highest tax risk management unit of the Company. A dedicated tax management unit is responsible for reporting the status of tax management to the Board on a regular basis to mitigate tax risks and reduce operating costs. The subsidiary First Bank has also formulated the “Tax Governance Policy of First Bank”. To ensure the implementation of tax governance and ethical management policies, the company also reports its tax management execution status to its Board of Directors annually.
The internal control systems of Group enterprises and organizations encompass the management of the financial reporting preparation process and establish three lines of defense: self-inspection system, the legal compliance system and the risk management mechanism, and the internal audit system. These ensure that financial and non-financial reporting are prepared in accordance with Generally Accepted Accounting Principles and that transactions are properly authorized, reliable, timely, transparent, and in full compliance with relevant regulations. | (4) None. |

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
(5) Does the Company regularly organize internal and external training sessions on ethical management?	✓		4. In formulating audit plans, the Company and its subsidiaries have designated ethical management as a key audit priority. In addition to including improvement plans and control measures, derived from the assessment results of unethical conduct risk themes in the Group's or respective companies' legal compliance risk assessment reports, as audit items to verify compliance, the Company's internal Auditing Division also incorporates the status of such compliance into its own audit programs.

(5) 1. The Company has established the “Operational Key Points for Legal Compliance” which stipulate that the Legal Compliance Divisions of the Company and its subsidiaries shall plan and conduct appropriate regulatory training at least semi-annually. In addition to updates on recent significant regulatory changes, the training curriculum includes financial peers' administrative penalty cases, employee confidentiality education and promotion, Self-Regulatory Codes of Ethics for Employees, and anti-bribery and anti-corruption promotion. These efforts aim to urge all colleagues to adhere to laws and regulations while conducting business, thereby fostering a robust commercial environment and a corporate culture of integrity and ethical management.

In 2025, the Company and its subsidiaries conducted internal and external educational training courses related to ethical management (including personal data protection, employee confidentiality, and financial friendly services). The total training time reached 65,157.15 hours, with 30,992 participants. | (5) None. |
| 3. Operation of the Whistleblowing System

(1) Has the Company established a specific whistleblowing and reward system, created convenient reporting channels, and assigned appropriate dedicated personnel to handle cases involving reported parties? | ✓ | | (1) 1. The Company and each of its subsidiaries have established a whistleblowing system approved by their respective Boards of Directors. To strengthen communication channels and effectively handle reports, dedicated hotlines, faxes, email addresses, and mailing addresses are disclosed on both corporate and internal websites for use by employees and external parties. Currently, the Legal Compliance Division serves as the recipient unit for whistleblowing cases. The Convener of the Whistleblowing Case Deliberation Committee designates an independent authorized unit or personnel with no conflict of interest from the Company or its subsidiaries to form an investigation team. If the reported individual is a member of management with a rank equivalent to or higher than Executive Vice President, the | (1) None. |

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
(2) Has the Company established standard operating procedures for investigating reported matters, follow-up measures to be taken after investigations are completed, and relevant confidentiality mechanisms?	✓		investigation shall be conducted by the Company's investigation unit, the independent authorized unit of the subsidiary's parent company, or by independent directors (or supervisors) of the Company or the respective subsidiary. Independent authorized units within the Group may also be requested to assist in such investigations. If a report is verified as true and provides a significant contribution to the Group, the whistleblower may be granted a reward. Conversely, if a whistleblower is found to have made false reports or malicious accusations that damage the reputation or interests of the Group, they may be subject to disciplinary action in accordance with regulations.2. In 2025, the Company and its subsidiaries conducted training courses on the whistleblowing system, with a total of 3,731.3 training hours and 4,983 participants.(2) The standard operating procedures for investigations, post-investigation measures, and confidentiality mechanisms established by the Company and its subsidiaries are as follows:1. Upon receiving a whistleblowing report, the recipient unit shall, based on the identity of the reported individual, propose the formation of the Whistleblowing Case Deliberation Committee (hereinafter referred to as "the Committee") to the Convener in accordance with rules. The Committee shall convene within ten days via in-person meetings, video conferences, or written resolutions to decide whether to accept the case for investigation.2. Once the Committee decides to accept a case, it shall be registered as a confidential case. Based on the type and content of the case, an investigation team shall be appointed in accordance with rules. The investigation team is required to complete its investigation within 60 days and submit the investigation report to the recipient unit; an extension may be granted if necessary.3. The verification methods for whistleblowing cases may include telephone inquiries, written requests, or face-to-face interviews, depending on the nature of the case. During the verification process, relevant units must cooperate by providing necessary documents and information. The identities of the parties involved in the report, as well as the information or data they provide, must be kept strictly confidential and shall not be disclosed. The investigation unit may allow the reported individual to present their statement through interviews or in writing, which shall, in principle, be conducted in a non-public manner.	(2) None.

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
			4. During the processes of case receipt, investigation, deliberation, re-examination, and reporting, any individual with a conflict of interest in a specific whistleblowing case, or any other circumstances that may compromise the impartiality of the investigation, must recuse themselves. For cases submitted to the Committee, investigators are required to list personnel subject to recusal on a checklist.

Investigation reports shall be submitted to the Committee for final determination via in-person meetings, video conferences, or written resolutions. When the reported individual is a director, supervisor, or a member of management with a rank equivalent to or higher than Executive Vice President, the investigation report must be submitted to the independent directors (the Audit Committee) or supervisors for re-examination. Upon the final determination of the investigation report, the recipient unit shall notify the whistleblower of the results in writing or through other means within ten days. For whistleblowing cases transferred to a subsidiary for handling, the subsidiary shall notify the whistleblower and provide a duplicate copy to the Company.
Complete written documents or electronic files regarding the receipt of reports by the Committee, investigation processes, investigation results, response contents, related documentation, and resolution records must be fully maintained. These records shall be stored in dedicated files for a minimum of five years. If a lawsuit or dispute mediation related to the content of a report occurs before the retention period expires, the relevant records shall continue to be preserved for five years after the final conclusion of the litigation or dispute mediation.
If a whistleblowing report is verified as true, the relevant units shall be instructed to review the associated internal control systems and operational procedures and propose improvement measures. After reporting to its own Board of Directors, the subsidiary shall submit the case to the Company’s Ethical Management Committee for record-keeping. In the event of a significant incident or illegal case, notifications or criminal charges must be filed with the Company and relevant authorities in accordance with the “Key Points for First Financial Group Incident Notification” and the “Operating Key Points for First Financial Group Legal Compliance Case Notification”. | |

103

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description
(3) Has the Company taken measures to protect whistleblowers from improper treatment due to their reports?	✓		(3) The whistleblowing systems established by the Company and its subsidiaries include the following measures for confidentiality of identity and protection of work rights for whistleblowers:

The identity of any named whistleblower and the content of their report shall be kept strictly confidential. This includes their name, gender, date of birth, residential address, identification number, or any other information that may directly or indirectly identify the individual.
No adverse treatment shall be imposed on named whistleblowers, personnel cooperating with investigations, or individuals who refuse to participate in improper conduct. Such treatments include, but are not limited to: dismissal, removal, demotion, or salary reduction; unfavorable performance evaluations; deprivation or reduction of bonuses or retirement benefits; denial of education or training opportunities related to promotion; adverse changes to benefits, work location, job responsibilities, or other working conditions; any infringement upon rights and interests entitled by law, contract, or custom; or any other forms of disadvantageous disposition.
Any individual found to have engaged in retaliation or other improper conduct against a whistleblower due to a whistleblowing case shall, depending on the severity of the offense, be referred to the Personnel Evaluation Committee in accordance with the Company’s personnel management rules. Such individuals shall be subject to disciplinary action, starting from a demerit or more severe penalties. | (3) None. |
| 4. Enhancing Information Disclosure
Does the Company disclose the content of its ethical management principles and the results of its promotion on its website and the Market Observation Post System? | ✓ | | The Company discloses its “Ethical Management Policy and Operating Guidelines”, “Corporate Governance Best Practice Principles”, “Sustainable Development Policy”, “Code of Conduct for Directors, Supervisors and Managers” and “Code of Conduct for Employees” on both the corporate website and the Market Observation Post System. Furthermore, the Company’s implementation of ethical management and the specific measures adopted are disclosed to the public through the corporate website, annual reports, sustainability reports and prospectuses. | None. |

Evaluation Item	Implementation Status			Deviations from the Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and Reasons Thereof
	Y	N	Summary Description

If the Company has formulated its own ethical management principles based on the "Ethical Management Best Practice Principles for TWSE/GTSM Listed Companies", please describe any discrepancies between its operation and the formulated principles: None.
Other important information helpful for understanding the status of the Company's ethical management operations:

(1) To promote and fulfil fair treatment of customers and ethical management, the Company's Board of Directors has instructed each subsidiary to handle the following matters, and each subsidiary has cooperated in handling them:

A. Regarding matters involving personal data, attention should be paid to internal control and review procedures.
B. Refer to the anti-fraud related actions of financial industry peers, analyze them and propose improved anti-fraud measures.

(2) To prevent fraud, the banking, securities, investment trust, and life insurance subsidiaries have all executed multiple corresponding measures; in addition to continuously strengthening education and training for colleagues and enhancing their legal compliance awareness, further promotions of anti-fraud knowledge via holding physical seminars or online propagandas have been actively conducted. Besides, to sound the grievance handling mechanism, operational processes have been continuously optimized. The annual execution status has been reported to the Company's Sustainable Development Committee and Board of Directors for record and the review process has completed.

2.2.9 Other Significant Information For A Better Understanding Of The Company's Corporate Governance Implementation Status

(1) The Company has established and disclosed the "Procedures for Handling Material Inside Information" on the Company's website. These regulations prohibit directors, employees, and other insiders from profiting by using non-public information. All insiders have reported equity transfers in accordance with the law. In 2025, there were no penalties or prosecutions for violations of insider trading or related-party transactions.
(2) The Company strictly adheres to the "Procedures for Verification and Disclosure of Material Information of Listed Companies" and the "Rules Governing Information Reporting." In 2025, no penalties for breach of contract were imposed.
(3) Continuing education and training of the Company's Directors To enhance the professional knowledge and optimize the decision-making capabilities of the Board of Directors, the Company arranges core and professional training courses based on the "Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE/TPEx Listed Companies" and the Board Development Roadmap outlined in the Company's "Rules for Directors Continuing Education". In 2025, the total education hours for directors reached 151 hours, all of which complied with relevant regulations.

As of December 31, 2025

(4)Continuing education and training of the Company's Corporate Governance Officer

As of December 31, 2025

Title	Name	Date Elected (Appointed)	Training Hours			Compliance Status
			Core Courses	Professional Courses	Total
Representative of Juridical Person Director	Ye-Chin Chiou	2024/06/21	3.0	3.0	6.0	Yes
Representative of Juridical Person Director	Frank Y. C. Fang	2024/08/14	3.0	11.0	14.0	Yes
Representative of Juridical Person Director	Lin-Na Huang	2025/05/14	0.0	12.0	12.0	Yes
Representative of Juridical Person Director	Ming-Chi Lee	2024/06/21	3.0	6.0	9.0	Yes
Representative of Juridical Person Director	Shing-Rong Lo	2024/06/21	3.0	9.0	12.0	Yes
Representative of Juridical Person Director	Chih-Chuan Chen	2024/06/21	3.0	3.0	6.0	Yes
Representative of Juridical Person Director	Hsin-Lu Chang	2024/06/21	0.0	6.0	6.0	Yes
Representative of Juridical Person Director	Shih-Yuan Tai	2024/06/21	3.0	3.0	6.0	Yes
Representative of Juridical Person Director	Chen-Ching Tien	2024/06/21	9.0	12.0	21.0	Yes
Representative of Juridical Person Director	An-Fu Chen	2024/06/21	3.0	6.0	9.0	Yes
Independent Director	Rachel J. Huang	2024/06/21	3.0	3.0	6.0	Yes
Independent Director	Chun-Hung Lin	2024/06/21	0.0	6.0	6.0	Yes
Independent Director	Chi-Chang Yu	2024/06/21	0.0	12.0	12.0	Yes
Independent Director	Wen-Ling Hung	2024/06/21	2.0	12.0	14.0	Yes
Independent Director	Hung-Yu Lin	2024/06/21	6.0	6.0	12.0	Yes

As of December 31, 2025

Title	Name	Date Elected (Appointed)	Training Hours			Compliance Status
			Core Courses	Professional Courses	Total
Chief Secretary to the Board of Directors	Li-Fang Hung	2021/08/26	3.0	9.0	12.0	Yes
			In accordance with the "Taiwan Stock Exchange Corporation Operation Directions for Compliance and Exercise of Powers by Board of Directors of Listed Companies", 12 hours of education and training were completed in 2025.

107

2.2.10 Implementation Status Of Internal Control System

(1) Statement of Internal Control System
Please refer to the Market Observation Post System at https://mops.twse.com.tw/mops/#/web/t06sg20

(2) Where a CPA is retained to perform a special audit of the internal control system, the CPA's independent auditor's report shall be disclosed.
None.

2.2.11 Major Resolutions Of Annual Shareholders' And Board Of Directors' Meetings During The Most Recent Year And Up To The Publication Date Of This Annual Report

I. Major Resolutions Of 2025 Shareholders' Meeting (Held On 2025.6.20)

Proposal: Adoption of the Company's 2024 Business Report and Consolidated Financial Statements (The Company's 2024 Stand-alone Financial Statements are included as Notes)

Resolution: Approved as proposed.

Implementation status:

Explanation: The Company's 2024 Business Report and Consolidated Financial Statements (The Company's 2024 stand-alone financial statements are included as notes) have been audited by the Audit Committee and approved by the 9th meeting of the 8th Board of Directors. The consolidated financial statements were audited by CPAs Chiao-Sen Lo and Hsien-Yi Chen of PwC Taiwan, with reports duly presented by the President and the Audit Committee.

Relevant documents have been filed with and disclosed to the competent authorities in accordance with the Company Act, the Financial Holding Company Act, and other applicable regulations.

Proposal: Adoption of the Company's 2024 Earnings Distribution Proposal

Resolution: Approved as proposed.	Implementation status:
Explanation: The Company's net income after tax for 2024 was NT$25,359,449,781. In accordance with the Articles of Incorporation and relevant laws and regulations, the proposed distribution is as follows:
1. NT$2,568,921,851 was appropriated as legal reserve.
2. After adding the beginning unappropriated earnings of NT$19,893,241,339, the total distributable earnings amount to NT$43,013,537,994. Cash dividend per share was NT$0.95 per share, totaling NT$13,327,312,408. Stock dividend per share was NT$0.25 per share, totaling NT$3,507,187,470. Cash dividends are distributed pro rata to the nearest integral NT dollar. Fractional amounts less than NT$1 will be recognized as other income.	1. Cash dividends were distributed on August 27, 2025.
2. Stock dividends (issuance of new shares through capitalization of earnings) were distributed on September 17, 2025.

108

Proposal: Approval of the Company's Capital Increase through Capitalization of Earnings
Resolution: Approved as proposed.	Implementation status:
Explanation: To expand the capital base and strengthen the financial structure, the Company proposes to capitalize NT$3,507,187,470 from the 2024 earnings pursuant to Article 240 of the Company Act. A total of 350,718,747 new common shares will be issued at a par value of NT$10 per share. Shareholders will receive 25 shares for every 1,000 shares held based on the Register of Shareholders on the ex-dividend date. Fractional shares may be consolidated by shareholders at the Company's stock affairs agent within 5 days of the record date; otherwise, the Chairman is authorized to place such shares with specific parties at par value.	The registration of capital change for the 350,718,747 new shares was approved on September 15, 2025, and shares were distributed on September 17, 2025.
Proposal: Amendment to certain provisions of the "Articles of Incorporation of First Financial Holding Co., Ltd."
Resolution: Approved as proposed.	Implementation status:
Explanation: Key points of amendments:	The amendments to the Articles of Incorporation were promulgated via the letter Di-Yi-Jin-Kong-Hang-Gong-Zi No. 00398 on June 20, 2025. The registration of these amendments was subsequently approved and completed on September 2, 2025.
1. In compliance with Paragraph 6, Article 14 of the Securities and Exchange Act, a provision has been added stipulating that no less than 1% of the actual employee compensation distributed for the current year shall be allocated as compensation for staff members.
2. In compliance with Paragraphs 1 and 3, Article 4 of the "Operation Directions for Compliance with the Establishment of Board of Directors by TWSE Listed Companies and the Board's Exercise of Powers," it is explicitly stipulated that the Board of Directors shall include no fewer than three independent directors, and independent directors shall constitute no less than one-third of the total board seats.

II. Major Resolutions Of The Board Of Directors

(1) The 9th Meeting of the 8th Board on 2025.2.27
- Resolved the Company's 2024 business report and consolidated financial statements.
- Resolved the list of appointed directors for the 13th Board of Directors of the subsidiary First Securities.

(2) The 10th Meeting of the 8th Board on 2025.3.27
- Resolved the date of the Company's 2025 Annual Shareholders' Meeting.
- Resolved the agenda for the Company's 2025 Annual Shareholders' Meeting.

Resolved related matters regarding the acceptance of shareholders' proposals for the Company's 2025 Annual Shareholders' Meeting.
Resolved the Company's 2024 Internal Control System Statement.

(3) The 2nd extraordinary meeting of the 8th Board on 2025.4.10
- Resolved the list of appointed directors for the 27th Board of Directors of the subsidiary First Bank.

(4) The 11th meeting of the 8th Board on 2025.4.23
- Resolved the 2024 earnings distribution proposal.
- Resolved the capitalization of retained earnings through the issuance of new shares.
- Resolved the amendments to the agenda of the Company's 2025 Annual Shareholders' Meeting.

(5) The 12th meeting of the 8th Board on 2025.5.22
- Ms. Lin-Na Huang was appointed as the Director and Delegate of the Ministry of Finance, effective 2025.5.14.

(6) The 13th meeting of the 8th Board of on 2025.6.26
- Resolved the establishment of the Chief Sustainability Officer (CSO) position, with President Mr. Frank Y. C. Fang appointed to concurrently serve in this role.

(7) The 14th meeting of the 8th Board on 2025.7.23
- Resolved the ex-dividend and ex-rights record dates for the 2024 earnings distribution, and the record date for the capital increase via capitalization of retained earnings.

(8) The 15th meeting of the 8th Board on 2025.8.21
- Resolved a cash capital increase of NT$1 billion for the subsidiary First Life Insurance.

(9) The 19th meeting of the 8th Board on 2025.12.23
- Resolved the engagement of CPAs Shu-Mei Chi and Chiao-Sen Lo from PricewaterhouseCoopers (PwC) Taiwan for the audit and attestation of the Company's 2026 financial statements, and CPA Yao-Jen Hu for the attestation of income tax returns.
- Resolved the list of appointed directors and supervisors for the 14th Board of Directors of the subsidiary First Securities Investment Trust Co. (FSITC).

(10) The 20th meeting of the 8th Board on 2026.01.26
- Resolved the appointment of Ms. Huey-Ling Su as the Company's Head of Finance and Accounting, effective from 2026.1.31.

2.2.12 Key Contents Of Different Opinions Held By Directors Who Were On Record Or Had Submitted Written Statements For The Major Resolutions Passed By The Board Of Directors During The Most Recent Year And Up To The Publication Date Of This Annual Report: None.

2.3 Information on Professional Fees of Certifying CPAs

2.3.1 The Amounts Of Audit Fees And Non-Audit fees Paid By The Company To The Certifying CPAs, Their Accounting Firm, And Its Affiliated Enterprises, As Well As The Contents Of Non-Audit Services, Are As Follows:

Unit: in NT$ thousand

Accounting Firm	Name of CPA	CPA’s auditing period	Audit fee	Non-audit fee	Total	Remarks
PwC Taiwan	Chiao-Sen Lo	Jan. 1, 2025~ Dec. 31, 2025	2,678	61	2,739	Non-audit fees were for the review of annual report information and employee salary information.
	Hsien-Yi Chen
	Yao-Jen Hu			514	514	Income tax return certification and Country-by-Country Report review.
	Wen-Li Huang			49	49	Business registration services.
	Min-Chih Shih			631	631	Greenhouse gas project.
Total			2,678	1,255	3,933

2.3.2 Where The Company Changes Its Accounting Firm And The Audit Fees Paid For The Year Of Change Are Less Than Those Paid In The Previous Year, The Amounts Of Audit Fees Before And After The Change And The Reasons Thereof Shall Be Disclosed: None.

2.3.3 Where The Audit Fees Decrease By 10% Or More Compared To The Previous Year, The Amount, Percentage, And Reasons For The Decrease Shall Be Disclosed: None.

2.4 Information On Change Of CPAs

2.4.1 Regarding The Predecessor CPAs: None; the appended table is omitted.

2.4.2 Regarding The Successor CPAs: None; the appended table is omitted.

2.4.3 The Reply Letter From The Predecessor CPAs Regarding The Matters Specified In Sub-item 1, And Point 3 Of Sub-item 2, Under Item 6, Article 10 Of the Regulations Governing Information To Be Published In Annual Reports Of Financial Holding Companies: None.

2.5 Where The Company’s Chairperson, President, Or Any Manager In Charge Of Financial Or Accounting Matters Has Held A Position At The Accounting Firm Of Company’s Attesting CPAs Or At An Affiliated Enterprise Of Such Firm, Such Relations Should Be Disclosed: None.

111

2.6 Any Director, Manager Or Person Required Pursuant To Report Under Article 11 Of The Regulations Governing The Same Person Or Same Related Party Holding The Issued Shares With Voting Rights Over A Particular Of The Same Financial Holding Company Shall Disclose Any Equity Transfer Or Change In Equity Pledge During The Most Recent Fiscal Year And Up To The Publication Date Of This Annual Report

2.6.1 Change In Shareholding

Please refer to the Market Observation Post System at: https://mops.twse.com.tw/mops/#/web/query6_1

2.6.2 There Were No Instances Of Equity Transfers With Related Parties By The Company's Directors, Managers, Or Those Required To Report Shareholdings Under Article 11 Of The Regulations Governing A Single Person Or Same Related Party Holding A Certain Percentage Of The Total Outstanding Voting Shares Of A Single Financial Holding Company.

2.6.3. There Were No Instances Of Equity Pledges With Related Parties By The Company's Directors, Managers, Or Those Required To Report Shareholdings Under Article 11 Of The Regulations Governing A Single Person Or Same Related Party Holding A Certain Percentage Of The Total Outstanding Voting Shares Of A Single Financial Holding Company.

2.7 Where Any Of The Company's Top 10 Shareholders Are Related Parties, Spouses Or Relatives Within The Second Degree Of Kinship To One Another, Such Relationships Should Be Disclosed

As of Apr. 20, 2026

Name	Shareholding		Shareholding of spouse and minor children		Total shareholding by nominee arrangements		Specify the name of the entity or person and their relationship to any of the other top 10 shareholders with which the person is a related party or has a relationship of spouse or relative within the 2nd degree of kinship (Note)
	Shares	(%)	Shares	(%)	Shares	(%)	Name	Relationship
Ministry of Finance (Representative: Tsui-Yun Chuang)	1,651,915,064	11.49	0	0.00	0	0.00	Bank of Taiwan; Hua Nan Bank; Taiwan Tobacco & Liquor Corporation	Investment
Bank of Taiwan (Representative: Jong-Yuan Lin)	1,071,965,322	7.45	0	0.00	0	0.00	Ministry of Finance	Investment

112

Name	Shareholding		Shareholding of spouse and minor children		Total shareholding by nominee arrangements		Specify the name of the entity or person and their relationship to any of the other top 10 shareholders with which the person is a related party or has a relationship of spouse or relative within the 2nd degree of kinship (Note)
	Shares	(%)	Shares	(%)	Shares	(%)	Name	Relationship
Hua Nan Bank (Representative: Fen-Len Chen)	270,752,983	1.88	0	0.00	0	0.00	Ministry of Finance; Bank of Taiwan	Investment
Government of Singapore	229,293,121	1.59	0	0.00	0	0.00
Taiwan Tobacco & Liquor Corporation (Representative: Chi-An Tang)	223,543,161	1.55	0	0.00	0	0.00	Ministry of Finance	Investment
Yuanta/P-shares Taiwan Top 50 ETF	208,859,627	1.45	0	0.00	0	0.00
Fubon Life Insurance Company (Representative: Howard Lin)	199,873,000	1.39	0	0.00	0	0.00
Labor Pension Fund (New System)	196,063,960	1.36	0	0.00	0	0.00
KGI Life Insurance Company (Representative: Alan Wang)	192,863,892	1.34	0	0.00	0	0.00
Vanguard Total International Stock Index Fund, a series of Vanguard Star Funds	158,155,320	1.10	0	0.00	0	0.00

Note: The shareholders listed above shall disclose their relationships in accordance with the Regulations Governing the Preparation of Financial Reports by Financial Holding Companies.

2.8 The Total Number Of Shares And Total Equity Interest Held In Affiliated Companies By The Company, Its Directors And Managers, Or Directly Or Indirectly Controlled Business

As of Feb. 28, 2026; Unit: thousand shares

Investees (Note 1)	Investment by the Company (Note 2)		Investment by Directors, Managers and Directly or Indirectly Controlled Entities		Aggregate Investment
	Shares	%	Shares	%	Shares	%
First Bank	12,284,600	100.00	-	-	12,284,600	100.00
First Securities	670,000	100.00	-	-	670,000	100.00
First Securities Investment Trust	60,000	100.00	-	-	60,000	100.00

| Investees
(Note 1) | Investment by
the Company
(Note 2) | | Investment by Directors, Managers
and Directly or Indirectly
Controlled Entities | | Aggregate
Investment | |
| --- | --- | --- | --- | --- | --- | --- |
| | Shares | % | Shares | % | Shares | % |
| First Life Insurance | 685,000 | 100.00 | - | - | 685,000 | 100.00 |
| First Financial AMC | 145,000 | 100.00 | - | - | 145,000 | 100.00 |
| First Venture Capital | 180,000 | 100.00 | - | - | 180,000 | 100.00 |
| First Consulting | 2,000 | 100.00 | - | - | 2,000 | 100.00 |
| First Commercial Bank (USA) | - | - | 7,000 | 100.00 | 7,000 | 100.00 |
| FCB Leasing Co., Ltd. | - | - | 400,000 | 100.00 | 412,500 | 100.00 |
| FCBL Capital International
(B.V.I.) Ltd. | - | - | 60,050 | 100.00 | 60,050 | 100.00 |
| FCB International Financing
Leasing Ltd. | - | - | Shares not
issued | 100.00 | Shares not
issued | 100.00 |
| FCB Financing Lease
(Xiamen) Ltd. | - | - | Shares not
issued | 100.00 | Shares not
issued | 100.00 |
| First Financial Assets
Management (B.V.I.) Ltd. | - | - | 30,000 | 100.00 | 30,000 | 100.00 |
| FCB Leasing (Chengdu) Ltd. | - | - | Shares not
issued | 100.00 | Shares not
issued | 100.00 |
| First Capital Management
Inc. | - | - | 10,000 | 100.00 | 10,000 | 100.00 |
| First Private Capital Co., Ltd. | - | - | 5,000 | 100.00 | 5,000 | 100.00 |
| FSC Asia Investment Limited | - | - | 1,000 | 100.00 | 1,000 | 100.00 |
| First Worldsec Securities
Limited | - | - | 66,000 | 100.00 | 66,000 | 100.00 |
| Taiwan Depository & Clearing
Corp. | 840 | 0.08 | 858 | 0.08 | 1,698 | 0.17 |
| Taiwan Asset Management
Corp. | 180,000 | 17.03 | - | - | 180,000 | 17.03 |

Note 1: Refers to the reinvested enterprises of the financial holding company and its subsidiaries. On June 21, 2022, the Board of Directors of First Securities resolved to proceed with the dissolution and liquidation of its investee, First Worldsec Securities Limited. On July 22, 2022, the termination of business and liquidation were approved by the Financial Supervisory Commission (“FSC”) per FSC letter Jin-Guan-Zheng-Quan-Zi No. 1110348494. On December 18, 2024, a notice of license cancellation were received from the Securities and Futures Commission of Hong Kong.

Note 2: Refers to investments made pursuant to the Article 36 of the Financial Holding Company Act.

114

III. Capital Raising Activities

3.1 Capitalization And Shares

Unit: thousand shares; NT$ per share for issuance price, and NT$ thousand for all others

Year/Month	Issuance Price (NT$)	Authorized Capital		Paid-in Capital		Remarks
		Shares	Amount	Shares	Amount	Source of Capital Stock	Others
2025.08	10	20,000,000	200,000,000	14,379,469	143,794,687	Note	None

Note: August 15, 2025 was the record date for the capitalization of retained earnings, with the issuance of NT$3,507,187 thousand in new bonus shares. The filing was approved and became effective as per the Financial Supervisory Commission on July 9, 2025.

Type of Shares	Authorized Capital			Remarks
	Shares Outstanding (Note)	Unissued Shares	Total
Common Shares	14,379,468,650	5,620,531,350	20,000,000,000

Note: Listed company stocks.

3.2 List Of Major Shareholders

As of April 20, 2026

| Shares
Name of Major Shareholder | Number of Shares Held | Percentage of Ownership (%) |
| --- | --- | --- |
| Ministry of Finance | 1,651,915,064 | 11.49 |
| Bank of Taiwan | 1,071,965,322 | 7.45 |
| Hua Nan Bank | 270,752,983 | 1.88 |
| Government of Singapore | 229,293,121 | 1.59 |
| Taiwan Tobacco & Liquor Corporation | 223,543,161 | 1.55 |
| Yuanta/P-shares Taiwan Top 50 ETF | 208,859,627 | 1.45 |
| Fubon Life Insurance Company | 199,873,000 | 1.39 |
| Labor Pension Fund (New System) | 196,063,960 | 1.36 |
| KGI Life Insurance Company | 192,863,892 | 1.34 |

115
| Shares Name of Major Shareholder | Number of Shares Held | Percentage of Ownership (%) |
| --- | --- | --- |
| Vanguard Total International Stock Index Fund, a series of Vanguard Star Funds | 158,155,320 | 1.10 |
| Vanguard Emerging Markets Stock Index Fund | 149,468,727 | 1.04 |

Note: List of shareholders with a shareholding ratio of 1% or more.

3.3 Dividend Policy And Implementation Status

(1) Dividend policy

I. To support continuous expansion and enhance profitability while complying with relevant regulations, the Company adopts a residual dividend policy.

II. If there is a surplus in the Company's annual final accounts, it shall first be used to pay taxes and offset accumulated losses from previous years. Subsequently, 10% shall be set aside as a legal reserve, and a special reserve shall be provided or reversed in accordance with the law or business requirements. Any remaining balance, combined with the accumulated undistributed earnings from previous years, shall be the distributable earnings for shareholder dividends and bonuses. The Board of Directors shall propose and submit a distribution plan for 30% to 100% of the distributable earnings to the Shareholders' Meeting for approval.

III. According to the Company's business plan, dividends may be distributed in the form of cash or stock, provided that cash dividends shall not be less than 10% of the total dividends distributed to shareholders in the current year, with the remainder distributed as stock dividends. If the cash dividend per share is less than NT$0.1, it will not be distributed unless otherwise resolved by the Shareholders' Meeting.

(2) Proposed dividend distribution for the current shareholders' meeting:

The proposed cash dividend is NT$0 per share, totaling NT$0,000,000. The proposed stock dividend is NT$0 per share, totaling NT$0,000,000.

3.4 Impact Of Stock Dividends On Operating Performances And Earnings Per Share

Pursuant to the Regulations Governing the Publication of Financial Forecasts of Public Companies and the Taiwan Stock Exchange's "Standards for Determining Whether a TWSE Listed Company Shall Publish Complete Financial Forecasts", the Company has not disclosed its financial forecast for 2026. Consequently, predictive information such as operating revenue, profit and loss, and earnings per share cannot be disclosed. This item is therefore not applicable.

3.5 Employees' And Directors' Compensation

116

3.5.1 Defined Ratios or Ranges For Employee And Director Remuneration In The Articles of Incorporation

If the Company is profitable for the year, it shall allocate 0.02% to 0.15% as employee remuneration and no more than 1% as director remuneration based on the pre-tax profit before deducting the said remuneration. However, if the Company has accumulated losses, an amount shall be reserved in advance to offset the losses.

3.5.2 Basis For Estimating Employee And Director Remuneration, Basis For Calculating The Number Of Shares In Share-Based Employee Compensation, And The Accounting Treatment If There Is A Discrepancy Between The Actual Distributed Amount And The Estimated Amount

The estimation of employee and director remuneration for the current period is based on the pre-tax profit before deducting such remuneration, calculated within the percentage range specified in the Articles of Incorporation, and recognized as operating expenses based on historical experience. If there is a discrepancy between the actual distributed amount and the estimated amount, it will be treated as a change in accounting estimate and adjusted in the following year. The Company did not distribute any employee compensation in the form of stock.

3.5.3 Compensation Distribution Resolved By The Board Of Directors

The Company's Board of Directors has resolved to distribute the 2025 employees' compensation of NT$17,009,080 and directors' remuneration of NT$247,304,883 in cash. These amounts represent an increase of NT$3,269,920 and a decrease of NT$27,478,321, respectively, compared to the expenses recognized in the 2025 financial statements. Such differences, resulting from changes in accounting estimates, will be recognized as expenses and income in 2026, respectively. The Company did not distribute any employees' compensation for 2025 in the form of stocks.

3.5.4 Actual Distribution Of Employee And Director Remuneration In The Previous Year

The actual cash distribution for 2024 employee remuneration was NT$13,198,954, and for director remuneration was NT$231,110,092. These amounts reflect an increase of NT$359,504 and a decrease of NT$25,678,899, respectively, compared to the recognized expenses in the 2024 financial statements. These differences, treated as changes in accounting estimates, have been recognized as expenses and income in 2025.

3.6 Status Of Share Buybacks By The Financial Holding Company

The Company has not bought back any of its own shares since its inception.

117

3.7 Status Of Corporate Bond Issuance

Type of Bond	The 2018 First Series Unsecured Subordinated Corporate Bonds	The 2024 First Series Unsecured Ordinary Corporate Bonds	The 2025 First Series Unsecured Ordinary Corporate Bonds
Issue date	October 15, 2018	October 30, 2024	October 3, 2025
Face Value	NT$ 1 million	NT$ 1 million	NT$ 1 million
Place of Issuance and Trading	Taipei Exchange, Taiwan R.O.C	Taipei Exchange, Taiwan R.O.C	Taipei Exchange, Taiwan R.O.C
Issuance Price	Issued at 100% of face value	Issued at 100% of face value	Issued at 100% of face value
Total Amount	NT$ 10 billion	NT$ 5 billion	NT$ 5 billion
Interest Rate	Fixed rate at 1.50% per annum	Fixed rate at 1.95% per annum	Fixed rate at 1.85% per annum
Maturity	10 years; maturity date on October 15, 2028	5 years; maturity date on October 30, 2029	5 years; maturity date on October 3, 2030
Order of Claims	Repayment priority of the bondholders will rank prior to the residual claims of the Company's shareholders and shall be junior to the claims of all other creditors of the Company.	Repayment priority of the bondholders will rank the same as to the claims of all other unsecured creditors of the Company.	Repayment priority of the bondholders will rank the same as to the claims of all other unsecured creditors of the Company.
Guarantor	None	None	None
Trustee	Trust Department of the Taipei Fubon Commercial Bank Co., Ltd	Trust Department of the Taipei Fubon Commercial Bank Co., Ltd	Trust Department of the Taipei Fubon Commercial Bank Co., Ltd
Underwriter	Yuanta Securities Co., Ltd	Yuanta Securities Co., Ltd	Yuanta Securities Co., Ltd
Legal Counsel	Hui-Gi Kuo, Esq., I-Chen Attorneys-at-Law	Hui-Gi Kuo, Esq., I-Chen Attorneys-at-Law	Tsung-Chao Tsai, Esq., I-Chen Attorneys-at-Law
CPA	Chi Shu-Mei, CPA, PwC Taiwan	Lo Chiao-Sen, CPA, PwC Taiwan	Lo Chiao-Sen, CPA, PwC Taiwan
Payment Method	Repayment of principal in full upon maturity.	Repayment of principal in full upon maturity.	Repayment of principal in full upon maturity.
Outstanding Principal	NT$ 10 billion	NT$ 5 billion	NT$ 5 billion
Redemption or Early prepayment Terms	None	None	None
Restrictive Covenants	If payment of interest or principal causes the Company's capital adequacy ratio to fall below the minimum statutory requirement, such payments shall be suspended. Payments will resume once the ratio complies with regulations (Interest is cumulative; deferred interest and principal will accrue at the original coupon rate).	None	None

118

Included in Eligible Capital		The issuance amount of NT$ 10 billion is included as eligible capital.	No	No
Credit Rating Agency, Date, and Result		-	-	-
Other Attached Rights	Amount converted (exchanged or subscribed) into common shares, global depository receipts, or other securities as of the publication date of this annual report	None	None	None
	Procedures for Issuance and Conversion (Exchange or Subscription)	None	None	None
Potential dilutive effects and impact on shareholder interest based on the issuance terms and conversion and subscription methods.		None	None	None
Custodian of Exchange Target		Not applicable	Not applicable	Not applicable

3.8 Status Of Preferred Stock Issuance

The Company has not issued any preferred stock since its inception.

3.9 Status Of Global Depositary Receipts Issuance

Date of Issuance	July 28, 2003	Total Issuance Amount	US$ 505 million
Place of Issuance and Trading	Luxembourg Stock Exchange	Issue Price per Unit	US$ 10.30
Source of Underlying Securities	First Financial Holding Common Shares	Total Units Issued	49,206,493
Amount of Underlying Securities	20 shares	Unconverted Balance (note)	15,347
Trustee	Not applicable	Rights and Obligations of GDR Holders	Same as common shareholders
Depositary Bank	Citibank, N.A.	Custodian	Citibank Taiwan Limited
Allocation of Issuance and Maintenance Fees	The Company shall bear all fees related to the issuance and maintenance of the GDRs	Major Provisions of Depositary and Custody Agreements	None
Market Price (US$)	2025 Highest	2025 Lowest	2025 Average
	20.53	14.75	18.08

119
| Market Price (US$) | Highest up to Feb. 28, 2026 | Lowest up to Feb. 28, 2026 | Average up to Feb. 28, 2026 |
| --- | --- | --- | --- |
| | 19.15 | 18.13 | 18.68 |

Note: As of Feb. 28, 2026.
Source of market price information: Citibank (Depository Bank) GDR issuer website.

3.10 Status Of Employee Stock Options

None.

3.11 Status Of Restricted Stock Awards

None.

3.12 Matters To Be Disclosed Regarding Mergers, Acquisitions, Or Assumption Of Other Financial Institutions

3.12.1 Mergers, Acquisitions, Or Assumptions Of Other Financial Institutions Within The Most Recent Year: None.

3.12.2 Mergers, Acquisitions, Or Assumptions Of Other Financial Institutions Within The Past Five Years:

(1) Mergers and Acquisitions within the past five years: None.

(2) Underwriter's evaluation opinion on the issuance of new shares due to the assumption of shares from another company, acquisition, or demerger in accordance with the law: None.

3.12.3 Disclosure Of The Implementation Status And Basic Information Of The Target Financial Institutions For Any Issuance Of New Shares Approved By The Board Of Directors For The Merger, Acquisition, Or Assumption Of Other Financial Institutions During The Most Recent Year And Up To The Publication Date Of This Annual Report: None.

3.13 Status Of Implementation Of Capital Utilization Plans

The Company's previous securities issuance plans have been fully implemented, and there are no instances where the intended benefits of the plans have yet to materialize.

120

IV. Overview of Business Operations

4.1 Business Overview

4.1.1 Business Scope

I. First Financial Holding

Scope of Business

The Company is a financial holding company. In accordance with the Financial Holding Company Act, its business scope encompasses investment and the management of invested enterprises.

Business Composition

The following table illustrates the net revenue of major business segments as a proportion of the Group’s total consolidated net revenue:

Unit: NT$ thousand

| Year
Business Segment | 2025 | | 2024 | | YoY Variance | |
| --- | --- | --- | --- | --- | --- | --- |
| | Amount | % | Amount | % | Amount Change | % Change |
| Banking | 65,946,580 | 85.0 | 62,249,401 | 86.3 | 3,697,179 | 5.9 |
| Securities | 3,200,250 | 4.1 | 3,202,120 | 4.4 | -1,870 | -0.1 |
| Securities Investment Trust | 864,543 | 1.1 | 796,861 | 1.1 | 67,682 | 8.5 |
| Insurance | 7,218,910 | 9.3 | 5,537,672 | 7.7 | 1,681,238 | 30.4 |
| Others | 363,465 | 0.5 | 333,421 | 0.5 | 30,044 | 9.0 |
| Total | 77,593,748 | 100.0 | 72,119,475 | 100.0 | 5,474,273 | 7.6 |

New Financial Products and Services to be Developed

Please refer to the Business Plan For The Current Year (Page 128).

II. First Bank

Scope of Business

General business operations authorized for commercial banks under the law	Business items registered and approved by the competent authority for the designated trust department, as specified in the Company’s business license
(1) Acceptance of various deposits	(1) Trust Business
A. Money trusts
B. Trusts of monetary claims and security interests
C. Trusts of securities
(2) Issuance of financial bonds
(3) Lending operations
(4) Discounting of bills and notes
(5) Investment in securities

General business operations authorized for commercial banks under the law	Business items registered and approved by the competent authority for the designated trust department as specified in the Company's business license
(6) Domestic remittances	D. Trusts of real estate
(7) Acceptance of commercial drafts	E. Trusts of superficies rights
(8) Issuance of domestic letters of credit	F. Discretionary investment through trust arrangements
(9) Guarantees for corporate bond issuances
(10) Domestic guarantee operations	(2) Ancillary Business:
(11) Collection and payment agency services	A. Agency services for securities issuance, transfer, registration, and distribution of dividend and interest
(12) Brokerage of government bonds, treasury bills, corporate bonds and stocks	B. Advisory services for the issuance and offering of securities
(13) Underwriting of securities	C. Certification of securities
(14) Proprietary trading of securities	D. Acting as bond trustee and providing agency services
(15) Custody and warehousing services	E. Conducting custody service
(16) Safe deposit box rentals	F. Acting as custodian for securities investment trust funds
(17) Authorized agency services	G. Advisory services for investment, financial management, and real estate development
(18) Credit card operations	H. Concurrent operation of securities investment consulting
(19) Agency sale of gold/silver coins and bullion	I. Management of real estate for the elderly and disabled by trust industries via ancillary business mandates
(20) Trading of gold/silver coins and bullion	J. Other businesses approved by the competent authority
(21) Foreign exchange operations, including import and export foreign exchange, inward and outward remittances, foreign exchange deposits, foreign currency loans, and foreign currency guarantees
(22) General inward and outward remittances and foreign exchange deposit operations
(23) Trading of foreign currency banknotes and traveler's checks
(24) Operation of derivative financial products as approved by the competent authority
(25) Business operations authorized under the Trust Enterprise Act
(26) Investment in foreign securities via non-discretionary trust funds
(27) Proprietary trading of government bonds
(28) Brokerage, proprietary trading, certification, and underwriting of short-term bills
(29) Financial advisory services related to financing operations
(30) Agency services for public welfare lottery affairs as approved by the competent authority
(31) Cross-currency margin trading operations
(32) Investment in domestic securities investment trust funds for non-discretionary purposes
(33) Investment in domestic securities investment trust funds via non-discretionary trust funds
(34) Proprietary trading of corporate bonds and financial bonds
(35) Agency services for collection and payment of funds for real transactions
(36) Cooperation with or assistance to offshore institutions in conducting operations of electronic payment institution in the R.O.C.
(37) Concurrent operation of life insurance agency business and property insurance agency business

122

General business operations authorized for commercial banks under the law	Business items registered and approved by the competent authority for the designated trust department, as specified in the Company's business license
(38) Offering financial products and services suitable for High Net Worth Individuals
(39) Other businesses as approved by the competent authority

★ Business Composition

(1) Deposits
Unit: NT$ thousand

Business Item	Dec. 31, 2025		Dec. 31, 2024		Amount Change	% Change
		Amount	%	Amount			%
Demand deposits (Note 1)	Check Deposits	53,349,238	1.3	54,499,329	1.4	-1,150,091	-2.1
	Demand Deposits	919,209,310	21.4	852,400,096	21.5	66,809,214	7.8
	Current Savings Deposit	1,083,495,361	25.2	1,034,525,766	26.0	48,969,595	4.7
	Subtotal	2,056,053,909	47.9	1,941,425,191	48.9	114,628,718	5.9
Time Deposits (Note 1)	Time Deposits	1,184,888,474	27.6	1,123,818,657	28.3	61,069,817	5.4
	Time Savings Deposits	696,814,409	16.2	627,329,826	15.8	69,484,583	11.1
	Subtotal	1,881,702,883	43.8	1,751,148,483	44.1	130,554,400	7.5
Others (Note 2)	Interbank Deposits	55,086,583	1.3	30,880,381	0.8	24,206,202	78.4
	Due to Banks	851,239	0.0	976,095	0.0	-124,856	-12.8
	Call Loans to Banks	301,446,637	7.0	247,770,779	6.2	53,675,858	21.7
	Subtotal	357,384,459	8.3	279,627,255	7.0	77,757,204	27.8
Total		4,295,141,251	100.0	3,972,200,929	100.0	322,940,322	8.1

Note 1: Demand Deposits and Time Deposits include foreign currency deposits and public treasury deposits.
Note 2: Interbank Deposits includes re-deposits from Chunghwa Post and excludes deposits from the Central Bank; Call Loans to Banks excludes call loans from the Central Bank.

(2) Lending
Unit: NT$ thousand

Business Item	Dec. 31, 2025		Dec. 31, 2024		Amount Change	% Change
	Amount	%	Amount	%
Short-term Loans (note)	661,367,043	23.6	635,787,735	24.0	25,579,308	4.0
Mid-term Loans	1,045,019,748	37.2	977,504,610	37.0	67,515,138	6.9
Long-term Loans	1,101,857,454	39.2	1,029,518,811	39.0	72,338,643	7.0

123

Business Item	Dec. 31, 2025		Dec. 31, 2024		Amount Change	% Change
	Amount	%	Amount	%
Total	2,808,244,245	100.0	2,642,811,156	100.0	165,433,089	6.3
As a percentage of total assets (%)	57.9		58.4		-0.5

Note: Includes discounts, overdrafts, and import/export bill negotiations.

(3) Foreign exchange operations

Unit: US$ thousand

Business Item	2025		2024		Amount Change	% Change
	Amount	%	Amount	%
Export	2,550,222	1.0	2,656,118	1.1	-105,896	-4.0
Import	4,515,955	1.9	4,794,082	1.9	-278,127	-5.8
Foreign Exchange & Remittance	234,651,018	97.1	242,463,983	97.0	-7,812,965	-3.2
Total	241,717,195	100.0	249,914,183	100.0	-8,196,988	-3.3

(4) Wealth management and insurance agency business

Unit: NT$ thousand

Business Item	2025	2024	Amount Change	% Change
Trust Volume (Excl. Special Purpose Trusts)	206,402,325	177,655,018	28,747,307	16.2
Insurance Agency Volume	26,529,982	21,896,567	4,633,415	21.2

(5) Trust business

Unit: NT$ thousand

Business Item	Dec. 31, 2025	Dec. 31, 2024	Amount Change	% Change
Non-discretionary Money Trusts for Domestic Securities	113,178,619	102,880,776	10,297,843	10.0
Non-discretionary Money Trusts for Foreign Securities	216,067,385	196,211,076	19,856,309	10.1
Other Trust Assets	225,072,769	204,773,797	20,298,972	9.9
Total Trust Assets	554,318,773	503,865,649	50,453,123	10.0
Custodial Operations	1,520,208,381	1,417,404,977	102,803,404	7.3

Note: Trust Assets exclude Taiwan Depositary Receipts (TDR) business.

(6) Transaction volume of electronic banking

Unit: NT$ thousand

Business Item	2025	2024	Amount Change	% Change
Corporate Online Banking	10,041,608,000	10,125,942,000	-84,334,000	-0.8
Personal Online Banking	329,628,000	318,729,000	10,899,000	3.4
Mobile Banking	1,221,485,000	1,103,924,000	117,561,000	10.7

(7) Investment

A. Transaction volume of domestic bill trading and commercial paper underwriting

Unit: NT$ thousand

Item	Year	2025	2024	Amount Change	% Change
	Outright Trading of Bills (DB/OS)	967,799,901	808,420,365	159,379,536	19.7
Repurchase Agreements (RP/RS)	5,004	5,010	-6	-0.1
Bill Underwriting	15,600,000	11,600,000	4,000,000	34.5

B. Outstanding balance of fixed income and equity investments

Unit: NT$ thousand

Business item	2025 Investment Cost as of Dec. 31, 2025	2024 Investment Cost as of Dec. 31, 2024	Amount Change	% Change
	Amount	Amount
Fixed-income Investment	732,006,906	667,956,912	64,049,994	9.6
Stocks (Short-term Investment)	19,110,541	18,959,219	151,332	0.8

(8) Credit Card

Unit: Card; Unit: NT$ thousand

Business Item	2025	2024	Amount Change	% Change
Number of Active Cards	952,857	942,221	10,636	1.1
Transaction Amount	83,740,118	84,256,286	-516,168	-0.6
Revolving Credit Balance	1,297,020	1,287,115	9,905	0.8

Note: The number of active cards and revolving credit balance are year-end data.

(9) Line item revenues, their percentage and change

Unit: NT$ thousand

| Item | Year
2025 | | Year
2024 | | Amount
Change | %
Change |
| --- | --- | --- | --- | --- | --- | --- |
| | Amount | % | Amount | % | | |
| Net interest income | 31,351,656 | 47.1 | 27,887,580 | 44.3 | 3,464,076 | 12.4 |
| Net fee income | 13,059,240 | 19.6 | 11,962,057 | 19.0 | 1,097,183 | 9.2 |
| Gain or loss on financial assets and liabilities at fair value through profit or loss | 17,847,522 | 26.8 | 19,187,281 | 30.5 | -1,339,759 | -7.0 |
| Realized gain on financial assets at fair value through other comprehensive income | 2,258,005 | 3.4 | 1,293,947 | 2.1 | 964,058 | 74.5 |
| Gain or loss on de-recognition of financial assets measured at amortized cost | -412,534 | -0.6 | -477,230 | -0.8 | 64,696 | 13.6 |
| Reversal of impairment loss on assets (or Impairment loss) | 124,805 | 0.2 | -155,546 | -0.2 | 280,351 | 180.2 |
| Share of profit or loss of associates accounted for using the equity method | 327,873 | 0.5 | 507,315 | 0.8 | -179,442 | -35.4 |
| Foreign exchange gain or loss | 1,483,664 | 2.2 | 1,745,194 | 2.8 | -261,530 | -15.0 |
| Other non-interest income, net | 524,157 | 0.8 | 979,568 | 1.5 | -455,411 | -46.5 |
| Total | 66,564,388 | 100.0 | 62,930,166 | 100.0 | 3,634,222 | 5.8 |

★ New Financial Products and Services to be Developed
Please refer to the Business Plan For The Current Year (Pages 128-133).

III. First Securities

★ Scope of Business

(1) Brokerage of securities on the centralized securities exchange market
(2) Brokerage of securities on the over-the-counter market
(3) Proprietary trading of securities on the centralized securities exchange market
(4) Proprietary trading of securities on the over-the-counter market
(5) Underwrite securities
(6) Agency Service for Stock Affairs
(7) Futures Commission Merchant (Limited to business items approved by the competent authority)
(8) Futures Advisory Enterprise (Limited to business items approved by the competent authority)

(9) Margin trading and short selling of securities
(10) Brokerage of foreign securities
(11) Offshore Securities Business
(12) Other businesses as approved by competent authorities

★ Business Composition

Unit: NT$ thousand

| Year
Item | 2025 | | 2024 | | YoY | |
| --- | --- | --- | --- | --- | --- | --- |
| | Amount | % | Amount | % | Amount Change | % Change |
| Brokerage | 2,868,025 | 76.5 | 2,850,596 | 76.5 | 17,429 | 0.6 |
| Proprietary Trading | 490,022 | 13.1 | 496,612 | 13.3 | -6,590 | -1.3 |
| Underwriting | 391,287 | 10.4 | 377,771 | 10.2 | 13,516 | 3.6 |

★ New Financial Products and Services to be Developed
Please refer to the Business Plan For The Current Year (Page 133).

IV. First Securities Investment Trust

★ Scope of Business

(1) Issuance of beneficiary certificates for the offering of securities investment trust funds
(2) Management of securities investment trust funds for investment in securities and related products
(3) Discretionary investment business
(4) Securities investment advisory services
(5) Master agent and distributor of offshore funds
(6) Other businesses as approved by the Financial Supervisory Commission

★ Business Composition

Unit: NT$ million

Product type	Management Fee				Sales Commission
Year	2025		2024		2025		2024
Item	Amount	%	Amount	%	Amount	%	Amount	%
Public Offered Funds	790	95.8	730	96.6	19	73.1	21	70.0
Private Equity Funds	9	1.1	6	0.8	0	0.0	0	0.0
Discretionary Accounts	26	3.1	20	2.6	0	0.0	0	0.0
Offshore Funds	0	0.0	0	0.0	7	26.9	9	30.0
Total	825	100.0	756	100.0	26	100.0	30	100.0

★ New Financial Products and Services to be Developed

Please refer to the Business Plan For The Current Year (Pages 133-134).

V. First Financial AMC

★ Scope of Business

(1) Acquisition of monetary claims of financial institutions.
(2) Evaluation or auction of monetary claims of financial institutions.
(3) Management and servicing of monetary claims of financial institutions.
(4) Factoring business
(5) Overdue accounts receivable management services
(6) Management consulting
(7) Investment consulting
(8) Residential and buildings development, leasing and sales
(9) Industrial plants development, leasing and sales
(10) Real estate purchase and sales
(11) Real estate leasing
(12) Commercial credit investigation services
(13) General advertising services
(14) Leasing and Lending
(15) Brokerage services
(16) International trade
(17) Special zones development
(18) Investment in public infrastructure construction
(19) New town and new community development
(20) Agency services for zone expropriation and urban land readjustment
(21) Urban renewal and reconstruction
(22) Urban renovation and maintenance
(23) Construction management
(24) Other financial, insurance and real estate businesses
(25) All business items that are not prohibited or restricted by laws and regulations, except those that are subject to special approval

127

128

★ Business Composition
Unit: NT$ thousand

Item	2025		2024		YoY Variance
	Amount	%	Amount	%	Amount Change	% Change
Servicing income from non-performing loans	97,517	16.9	60,581	14.1	36,936	61.0
Net gains on disposal of non-performing loans	240,901	41.6	143,351	33.4	97,550	68.0
Gain on real estate investment	10,161	1.8	30,726	7.2	-20,565	-66.9
Rental income	120,719	20.9	109,602	25.6	11,117	10.1
Interest income (Urban renewal)	95,769	16.5	79,852	18.6	15,917	19.9
Service fee income (Urban Renewal)	13,512	2.3	4,638	1.1	8,874	191.3
Total	578,579	100.0	428,750	100.0	149,829	34.9

★ New Financial Products and Services to be Developed
Please refer to the Business Plan For The Current Year (Page 134).

VI. First Venture Capital

★ Scope of Business
Long-term equity investments in corporate entities.

★ Business Composition
Unit: NT$ thousand

Item	Year	2025	2024	YoY Variance
				Amount Change	% Change
Investment income		337,203	275,795	61,408	22.27

★ New Financial Products and Services to be Developed
Please refer to the Business Plan For The Current Year (Pages 134-135).

VII. First Consulting

★ Scope of Business
(1) Management of venture capital funds or investment advisory
(2) Consulting services for business management, development, and technology transfer
(3) Financial advisory for fundraising, merger and acquisition, management buy-outs, and corporate restructuring

Business Composition

Unit: NT$ thousand

| Year
Item | 2025 | 2024 | YoY Variance | |
| --- | --- | --- | --- | --- |
| | | | Amount Change | % Change |
| Operating revenue | 44,506 | 62,490 | -17,984 | -28.78 |

★ New Financial Products and Services to be Developed

Please refer to the Business Plan For The Current Year (Pages 134-135).

VIII. First Life Insurance

★ Scope of Business

(1) Life insurance (including endowment and group insurance)
(2) Annuity insurance
(3) Accident insurance
(4) Health insurance

★ Business Composition

Unit: NT$ thousand

| Year
Item | 2025 | | 2024 | | YoY Variance | |
| --- | --- | --- | --- | --- | --- | --- |
| | First-Year Premium | % | First-Year Premium | % | Amount Change | % Change |
| Life insurance | 8,887,366 | 96.1 | 8,395,478 | 91.3 | 491,888 | 5.9 |
| Accident insurance | 2,853 | 0.0 | 2,847 | 0.0 | 6 | 0.2 |
| Health insurance | 29,063 | 0.3 | 45,044 | 0.5 | -15,981 | -35.5 |
| Annuity insurance | 328,489 | 3.6 | 752,803 | 8.2 | -424,314 | -56.4 |
| Total | 9,247,771 | 100.0 | 9,196,172 | 100.0 | 51,599 | 0.6 |

Unit: NT$ thousand

| Year
Item | 2025 | | 2024 | | YoY Variance | |
| --- | --- | --- | --- | --- | --- | --- |
| | Renewal Premium | % | Renewal Premium | % | Amount Change | % Change |
| Life insurance | 5,646,761 | 93.4 | 4,208,234 | 91.5 | 1,438,527 | 34.2 |
| Accident insurance | 109 | 0.0 | 108 | 0.0 | 1 | 0.9 |
| Health insurance | 220,340 | 3.6 | 201,722 | 4.4 | 18,618 | 9.2 |
| Annuity insurance | 181,207 | 3.0 | 186,906 | 4.1 | -5,699 | -3.0 |
| Total | 6,048,417 | 100.0 | 4,596,970 | 100.00 | 1,451,447 | 31.6 |

★ New Financial Products and Services to be Developed

Please refer to the Business Plan For The Current Year (Pages 135-136).

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4.1.2 Business Plan For The Current Year

I. The Company

Amidst a shifting and complex global operating environment, the Group remains committed to its core competencies of innovation and sustainability. Under the 2026 strategic theme of “Innovate for Transformation, Sustain for the Future”, we will leverage FinTech as a driver for innovation-led growth. By focusing on core subsidiary operations and deepening cross-selling across products, channels, and customer segments, we aim to strengthen brand recognition and corporate value to forge new profit engines. Concurrently, we embrace sustainability as our guiding principle—advancing net-zero transitions, fulfilling social responsibilities, and upholding fair customer treatment to cultivate long-term resilience across economic, social, and environmental pillars. Our key operational strategies and business plans for 2026 are detailed below:

Deepen core services; optimize cross-domain collaboration.
Enrich innovative product offerings; realize the benefits of integration.
Empower operations through technology; strengthen AI applications.
Streamline capital structure; enhance risk prevention and mitigation.
Align with international trends; advance sustainable development.

II. First Bank

Corporate banking, deposits and remittances

A. Deepen SME engagement by leveraging policy-driven loans and strategic industry target lists; utilize credit guarantee funds to drive cross-selling penetration and solidify our market-leading position.

B. For large corporate clients, proactively track domestic and overseas investment opportunities, including plant expansions and M&A, to capture CAPEX financing demand. This will facilitate the acquisition of new manufacturing and industrial park clients, fueling the momentum of average corporate loan growth.

C. Align with government priorities by focusing on large-scale public urban renewal projects to catalyze integrated marketing, optimize interest margins, and grow fee income, thereby fulfilling the pursuit of capital efficiency.

D. Target funding demand in green energy and other key sectors while deepening the management of group-affiliated accounts. Through the Head Office joint-visit mechanism, we will pursue lead arranger opportunities for high-quality syndicated loans to expand our market share and profit contribution.

E. Capitalize on the U.S. interest rate-cut cycle and tech-sector growth by strategically positioning in AI, advanced semiconductors, and ICT sectors to bolster foreign currency lending and cross-border financing.

F. Support national green finance policies by assisting enterprises in their low-carbon transition; collaborate with upstream and downstream partners to foster green supply chains and promote corporate sustainability.

G. Expand stable liquidity sources and optimize the current account and savings account ratio to effectively manage funding costs.

H. Scale the acquisition of corporate payroll accounts and deepen payroll segment management, utilizing key golden touchpoints to identify and capture high-value potential clients.

I. Optimize digital deposit and remittance services to enhance client experience; strengthen internal controls and mitigate operational risks to reinforce regulatory compliance awareness.

J. Fortify partnerships with law enforcement and internal/external joint-defense mechanisms; leverage a cross-departmental anti-fraud task force to proactively safeguard client assets.

(2) Foreign exchange and overseas business

A. Dynamically adjust strategies for attracting corporate foreign currency deposits, and leverage digital marketing to drive retail foreign currency deposit growth.

B. Leverage credit structuring to capture foreign exchange cash flows and market opportunities, deepen client relationships, and strengthen cross-industry and cross-border penetration to enhance the Bank's profitability.

C. Partner with Visa to develop cross-border small-value remittance service, the "fast e-remittance", strengthening the Bank's cross-border digital finance presence.

D. Strengthen joint referrals among domestic and overseas business units, and continuously develop potential customer lists through big data databases to drive business momentum for overseas teams.

E. Formulate development strategies tailored to local conditions, actively source new self-originated loan opportunities and lead arranger mandates for syndicated loans, and improve the quality of deal submissions.

F. Continue optimizing the structure of overseas funding and asset allocation structure to mitigate the risk of margin compression arising from U.S. rate cuts.

G. Enhance the functionality of overseas management systems, increase automation of local regulatory filing, and strengthen digital payment capabilities.

H. Strengthen business collaboration and information exchange among branches within the same region to improve local market expansion performance.

I. Continue sourcing sustainable investment and financing opportunities, regularly assess the carbon footprint associated with overseas units' investment and financing activities, set carbon reduction targets, and track implementation progress.

J. Continue monitoring and assessing the operating efficiency and competitiveness of overseas operations.

(3) Personal banking

A. Expand the Private Banking footprint with a focus on the Asia New Bay Area Asset Management Zone; actively develop family office services, enhance bespoke client coverage, and introduce diversified products tailored for high-net-worth clients.

B. Continue scaling digital products and services; leverage big data for targeted customer segmentation and integrate online-to-offline channels to forge new digital channel marketing models.

C. Monitor market trends and refine marketing strategies, focusing on acquiring corporate employees and new customers while promoting dollar cost averaging schemes and value-added services to strengthen wealth management and generate consistent returns.

131

D. Proactively promote special needs trusts for seniors and individuals with disabilities; advance employee welfare trusts, elder care trusts, and inheritance trusts to build comprehensive trust services.

E. Drive penetration of long-term high-protection products among high-net-worth individuals and business owners; align with declining interest rate trends to expand sales of dividend-paying policies and income-generating insurance products.

F. Enhance the mobile insurance application interface to increase digital adoption and accelerate penetration among target demographics.

G. In accordance with government policy, prioritize mortgage lending to owner-occupied housing and the New Youth Home Loan Program; refine differential pricing strategies and increase the share of high-margin investment-backed loans and LOHAS mortgages to optimize yield.

H. Focus on pledge of beneficiary rights of the Bank’s own trust products and introduce Lombard loans and premium financing specifically for local asset management zones; scale other consumer lending portfolios to bolster retail profit momentum.

I. Establish a presence in high-potential commercial districts to capture young and affluent segments; integrate lifestyle benefits to deepen customer stickiness and drive multi-generational family relationship management.

J. Implement ESG principles by promoting green consumption and extending carbon footprint labeling; deploy AI-powered intelligent virtual assistants and strengthen high risk transaction controls and real-time risk-decisioning systems to enhance cybersecurity and operational efficiency.

(4) Treasury and financial markets

A. Capitalize on the rate-cut trend by dynamically adjusting portfolio allocation to enhance returns on funds while reducing volatility risk.

B. Flexibly adjust funding deployment and asset allocation to reduce capital consumption, increase trading gains, and improve return on equity.

C. Taking into account market interest rate levels and demand for green/social financing, issue sustainable development bonds to reinforce the Bank’s sustainable finance philosophy and diversify funding sources.

D. Deepen product penetration among high-net-worth clients and, subject to market conditions, issue foreign-currency structured financial bonds to help expand asset under management for high-net-worth customers.

E. Adjust allocations of high-quality assets such as government bonds and central bank CDs or NCDs in a timely manner to balance returns and maintain a stable liquidity coverage ratio (LCR).

F. Enhance service momentum by utilizing “client outreach”, “seminars”, and “close engagement” to provide customers with one-stop services and dedicated advisory windows at branches; meanwhile, deepen cross-departmental collaboration to jointly strengthen financial market business capacity.

G. Develop diverse customer segments comprehensively and, in response to financial market changes and customer needs, provide suitable portfolio products.

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(5) Risk management

A. Enhance the integrity and stability of risk control systems; implement value-based capital management and optimize RWA growth efficiency. Apply for the adoption of the Internal Ratings-Based (IRB) approach to meet capital adequacy requirements for Domestic Systemically Important Banks (D-SIBs).

B. Dynamically monitor country risk; establish an intelligent country risk management platform; enhance operational risk system performance; and continue promoting online self-audit operations.

C. Continue optimizing the Bank's financed emissions carbon inventory system, and regularly disclose Scope 3 financed emissions reduction targets, strategies, action plans, and achievement rates, along with TCFD disclosure verification and assurance processes.

D. Optimize credit risk management frameworks and processes; enhance performance evaluation for bad debt provisioning; assess potential maximum losses and impacts through stress testing; and closely monitor relevant risks such as ratio and real estate concentration levels under Article 72-2 ratio of the Banking Act.

E. Strengthen financial product valuation capabilities to expand investment scope; refine market risk management mechanisms; and enhance Asset-Liability Management (ALM) and Funds Transfer Pricing (FTP) systems to reinforce liquidity management and interest rate risk management.

F. Introduce digital tools into credit approval processes to strengthen risk analysis and improve operational efficiency, and apply a “corporate credit relationship analysis” model to enhance risk disclosure and management.

G. Utilize AI to automatically incorporate collateral valuation benchmarks, including neighboring market trends and local amenities, while leveraging an intelligent valuation model to aggregate comparable sales data for integration into the Bank's e-Loan system.

H. Track business cycle changes in major credit industries across domestic and overseas regions and issue industry analysis reports to support forward-looking industry positioning and credit structure adjustments.

I. Expand diversified training approaches by combining in-person and online delivery, and conduct regular on-site credit investigation guidance to strengthen staff familiarity, provide timely coaching and enhance training.

J. Monitor and track M0-M2 overdue cases daily; take prompt response measures to prevent new non-performing loans; and proactively verify borrowers and guarantors' financial status and engage debtors to negotiate repayment arrangements to increase recovery opportunities.

(6) Digital banking and information technology

A. Adopt a customer-centric and value-driven approach by strengthening personalized services in the payroll customer zone; continuously collect customer preference data; manage community users by segments; and implement precise marketing.

B. Advance both retail and corporate channels to reshape an all-age, all-scenario digital experience; prevent fraud proactively by refining fraud patterns and typologies; safeguard digital gateways; and protect users' financial security.

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C. Partner with cross-industry collaborators with scale or unique user bases to embed products and services into the iLEO App or partner scenarios; strengthen diversified payment capabilities; improve customer experience; and expand the Bank's digital ecosystem.

D. Build a vector database and unstructured data platform to support an on-premise and cloud hybrid architecture cloud architecture and a cross-cloud or hybrid multi-cloud environment, enabling flexible use of proprietary AI technologies and resources across different public clouds and enhancing AI development capacity.

E. Continue optimizing the "internal intelligent query system" to improve the accuracy and completeness of generative AI responses; participate in "Yushan cross-industry anti-fraud initiatives" to enhance alert precision and leverage graph analytics and algorithms for more effective fraud prevention.

F. Continue driving digital transformation by expanding the integration of generative AI into daily workflows and scenarios, and upskill employees in the application of Microsoft Copilot as a core capability to improve work efficiency.

G. In response to frequent regulatory changes and rampant fraud, continuously enhance AML functions and law enforcement inquiry workflows, and integrate with "digital anti-fraud joint-notification platforms" to enable multi-layered coordinated defense, early detection, and prevention of suspicious or non-compliant activities.

H. Establish "online supervisory operations" and "electronic documentation platforms" to simplify manual verification and consolidation steps and reduce paper-based operations.

I. Adopt a zero-trust architecture, conduct cyber security incident drills with red and blue team exercises, and strengthen supply chain risk management for information systems to enhance cyber security resilience and innovation capacity.

J. Strengthen cloud security protection by enhancing intelligent endpoint monitoring and security log management systems, thereby improving overall security defenses.

(7) Administration affairs

A. Use key talent identification tags to build dual-skill and cross-domain career maps; continue expanding the wealth management team; reinforce core business rotations and exposure; and accelerate the cultivation of succession pipelines for overseas units and head office.

B. Promote a culture of diversity and inclusion, strengthen employee health management, build a friendly workplace environment, fulfill corporate social responsibility, enhance employee engagement, and cultivate a happy workplace.

C. Implement performance improvement plans to shape a proactive culture, accelerate the transformation toward sustainability and digital talent, and improve workforce utilization efficiency.

D. Advance net-zero building initiatives by developing green buildings and obtaining energy efficiency labeling, install solar power systems and continue with green electricity purchases; increase renewable energy usage, and reduce carbon emissions to demonstrate sustainability commitments.

E. Activate and enhance asset utilization efficiency, optimize business environment configuration, and strengthen corporate brand identity.

F. Strengthen tax management and implement tax governance, while continuously optimizing accounting processes and related systems.

G. Through four public welfare strategies “Green Care”, “Social Care”, “Arts & Culture”, and “Athletics” and by leveraging the Bank’s core capabilities, help address social and environmental issues and put sustainability into practice.

H. Promote the “Always With You” brand image to strengthen public identification with the Bank’s brand.

(8) Legal Compliance

A. Implement the responsibility map system to strengthen accountability at all management levels, and promote top-down compliance education and training to deepen compliance awareness and a culture of integrity.

B. Enhance watchlist screening, risk rating, and transaction monitoring systems, and improve compliance management efficiency by leveraging Regulatory Technology and AI adoption.

C. Support continuous improvement of fair customer treatment and inclusive finance by hosting diversified sustainable finance seminars and showcase the Bank’s achievements in fair-treatment outcomes through multiple channels.

D. Strengthen compliance and AML/CFT oversight for overseas units to prevent regulatory penalties.

III. First Securities

(1) Balance online and offline channel development to maximize brokerage efficiency

(2) Leverage Group resources to improve underwriting performance.

(3) Elevate investment strategies to deliver consistent, stable returns.

(4) Advance digital transformation to establish a premier digital brand.

(5) Align with Group mandates to drive sustainable growth.

IV. First Securities Investment Trust

(1) New fund launch and offering

In 2026, our new product issuance strategy will be centered on ETFs. Based on the characteristics of proposed products, we will flexibly plan ETF offerings using either active or passive strategies, complemented by the deployment of cross-border investment funds. We will continue to deepen and expand our product lineup to stay close to market dynamics and meet investors’ diversified needs.

(2) Business development

A. Conduct in-depth portfolio and competitive analyses for diverse customer segments; assist clients with performance reviews and provide optimized investment recommendations and asset allocations.

B. Continually enhance product differentiation and promote a diversified suite of offerings while leveraging cross-industry partnerships and self-media platforms to boost brand visibility and meet customers’ diversified investment needs.

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C. Increase the frequency of investment forums, industry trend seminars, and professional training to elevate staff expertise and service quality, thereby fostering greater client trust and institutional recognition.

D. Direct marketing resources toward key distribution channels to deepen engagement with financial advisors and high-net-worth clients; utilize Group-wide campaigns and dollar cost averaging schemes to drive steady growth in sales volume and AUM.

E. Host seminars on trendy market topics, investment forums, and social networking events to broaden customer engagement and brand affinity, aiming to increase the number of active dollar cost averaging accounts and solidify overall business scale.

(3) Marketing and promotion

A. Leverage diversified marketing channels and integrate corporate image with featured products to enhance brand recognition and product awareness.

B. Focus on competitive products and market trends, develop tailored marketing content around thematic funds, and strengthen sales execution.

C. Make effective use of video and social platforms to expand reach, and continuously optimize audio content and system services to enhance customer experience and care.

(4) Investment management

A. Actively integrate team resources, cultivate talent and investment capabilities, and continuously develop effective investment decision-making processes and procedures.

B. Utilize available resources, including internal and external research and quantitative models and resources, to continuously optimize the performance of managed funds and accounts.

C. Integrate internal and external resources to optimize investment operating systems, improve data quality, and enhance paperless workflows.

V. First Financial AMC

(1) Proactively pursue the collection of overdue loans and bad debts of First Bank.

(2) Timely participation in NPL acquisitions and strengthening the recovery of acquired NPL portfolios.

(3) Introduce special incentives to effectively improve the recovery of bad debt.

(4) Expand our presence in the prime commercial districts in central and southern Taiwan, engage in foreclosure bidding, and increase real estate income.

(5) Align with government policies to actively participate in the urban renewal bridge financing, serve as an implementer/ owner-builder, or funding through negotiated agreements for government-led urban renewal projects to assist in reconstruction efforts.

VI. First Venture Capital/ First Consulting

(1) Short term: In 2026, the economy is expected to slow; however, there remain opportunities for stocks to perform. The company will focus on cases with strong fundamentals and liquidity, conducting short-term operations within a period of 0.5 to 2 years, with an anticipated return rate of 10-20%.

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(2) Medium to long term: We will focus on high-growth industries and identify investment targets in key components, such as advanced semiconductor supply chains, AI hardware and software solutions, biotechnology, circular economy, and national security industries. Given the longer holding period, the expected internal rate of return (IRR) is approximately 20%-35%.

(3) In integrated marketing, we will align with the Group's integrated marketing strategy to provide corporate finance customers with comprehensive services, including financing, investment, IPO advisory, and consultancy. Additionally, we will offer referral opportunities to affiliated companies within the Group based on the profiles of future high-growth industry companies.

(4) In 2026, First Consulting is projected to recommend 12 investment cases to First Venture Capital, with a total investment amount of approximately NT$300 million.

VII. First Life Insurance

(1) Channel side

A. In response to growing awareness of asset allocation and wealth management, we will promote single premium and regular premium products through bancassurance and insurance agency channels, continuously expanding business scale and stabilizing renewal premium income.

B. Improve channel service quality, deepen partnerships and networks across banking and agency channels, and pursue collaborative projects.

C. Actively expand sales channels for mortgage life insurance, capture bulk mortgage life insurance opportunities, increase mortgage life insurance penetration, and promote full-term and full-amount protection planning.

D. Drive protection business growth and long-term value by marketing protection products with dollar cost averaging schemes through telemarketing channels.

E. Enhance the Company's digital brand image through the FundRich platform, strengthen online application effectiveness, improve online customer acquisition efficiency, and continue promoting group interest-sensitive annuities to meet the needs of SMEs and retail clients.

F. Reinforce the concept of insurance protection among sales staff by providing education and training.

(2) Product side

A. In response to the simultaneous implementation of IFRS 17 and ICS in 2026, gradually adjust the company's product types and structure to enhance long-term company value.

B. Develop interest-sensitive life insurance as a key product line, using various policy terms and product types to meet customer needs in asset allocation, retirement planning, tax provisioning, and inheritance planning.

C. Integrate investment-linked insurance products through a fund-platform structure that maintains flexibility for adding new underlying options, enabling the sales force to easily understand and market the products while reducing back-end development and maintenance costs.

D. Promote online-exclusive insurance products and protection-type products via telemarketing to continuously enhance corporate value.

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(3) Branding side

A. Formulate brand promotion strategies and customer satisfaction metrics aligned with the core mission of “providing adequate protection to every individual.”

B. Utilize media exposure, policyholder relationship management, and relevant marketing resources and digital channels to communicate corporate updates and product information to distribution channels, policyholders, and the general public, thereby steadily building brand awareness over time.

4.1.3 Industry Overview

I. Financial Holding Industry

In 2025, the combined pre-tax profits of the banking, securities and futures, and insurance industries totaled NT$983.3 billion, a decrease of NT$75.5 billion compared to 2024. Among these, domestic banks maintained excellent credit quality, with an average capital adequacy ratio of 15.81% and a non-performing loan ratio of 0.15%. Secondly, the securities market remained fundamentally sound; the total number of listed (and OTC) companies reached 1,937, with a total market capitalization of approximately NT$101.76 trillion, representing year-on-year growth of 3.64% and 26.52%, respectively. Finally, the insurance industry continued its steady growth, with total premium income in 2025 reaching NT$2,910.7 billion, an increase of NT$199.2 billion from 2024, and total assets amounting to NT$38,269.1 billion, an increase of NT$839.7 billion from 2024.

Looking ahead, to establish a modern financial market that balances safety and development, the Financial Supervisory Commission will actively promote financial policies and measures conducive to industry growth. These initiatives include: strengthening the capital resilience and risk supervision of the financial industry, fostering sound financial market development, implementing consumer protection and financial inclusion, promoting the Asia Asset Management Center, accelerating FinTech innovation, and advancing sustainable finance to drive the low-carbon transition and guide or drive sustainable industrial development.

II. Banking Industry

Regarding changes in the domestic banking operating environment, despite high global political and economic uncertainties in 2025, the continuation of the Central Bank’s selective credit controls and a cautious lending stance by banks placed pressure on real estate lending volumes. However, robust demand for AI drove significant export growth. Furthermore, in response to U.S. tariffs and the fragmentation of global supply chains, enterprises exhibited a keen demand for working capital and capital expenditure, collectively propelling the profits of domestic banks to new record highs. Looking ahead, as various U.S. trade policies become clearer, enterprises will be able to plan their investment directions more explicitly, thereby stimulating an increase in demand for financing. Additionally, along with the increasing momentum of foreign currency lending, core banking operations are expected to maintain steady growth. Furthermore, as concepts of micro-wealth management and disciplined investing become increasingly popularized among the public, and with the scale of high-net-worth business expected to thrive under government policy support, wealth management services are poised for continued growth. Therefore, the outlook for the banking industry in 2026 remains optimistic. Nevertheless, attention must still be paid to potential negative impacts on the banking

sector arising from geopolitical tensions, shifts in international trade policies, the credit quality of SMEs, and climate risks.

III. Securities Industry

The financial industry has traditionally pursued economies of scale, integrated services, internationalization, and liberalization. Nonetheless, the domestic securities industry struggles to boost profitability due to high business homogeneity and aggressive fee competition. As the market reaches saturation and the operating environment grows increasingly difficult, domestic brokerages have leveraged mergers and acquisitions to expand their scale. By the end of 2025, with 124 head offices and 855 branches remaining, it is evident that industry consolidation and large-scale operations have become an inevitable trend.

IV. Securities Investment Trust Industry

(1) Domestic publicly offered funds

According to statistics from the Securities Investment Trust & Consulting Association (SITCA), as of the end of 2025, there were 36 securities investment trust companies in Taiwan. The total assets under management (AUM) for domestic publicly offered funds reached NT$11.3764 trillion, representing an increase of NT$1.7771 trillion or 18.51% compared to the end of 2024. The total number of funds stood at 1,065, an increase of 11 compared to the previous year. In terms of scale growth by fund type, the top three categories having the largest increases over 2024 were Exchange Traded Funds, Money Market Funds, and Equity Funds, with their AUM growing by NT$983.4 billion (+15.41%), NT$356.8 billion (+40.45%), and NT$263.7 billion (+23.80%), respectively.

(2) Domestic privately placed funds

According to SITCA statistics, as of the end of 2025, the total AUM of privately placed funds managed by domestic securities investment trust companies was NT$29.6 billion, an increase of NT$200 million or 0.68% compared to the end of 2024. The number of funds at the end of 2025 was 66, a decrease of 6 compared to the end of 2024.

(3) Discretionary investment management

According to SITCA statistics, as of the end of 2025, the net asset value (NAV) of discretionary investment management services operated by securities investment trust companies totaled NT$3.8931 trillion, an increase of NT$599.5 billion or 18.20% from the end of 2024. Among the various client segments, government funds accounted for the largest share of total NAV at 41.68%, followed by investment-linked insurance products at 37.87%, and Domestic Institutional Investors at 18.42%.

(4) Offshore funds

According to SITCA statistics, as of the end of 2025, the total AUM of offshore funds reached NT$4.9704 trillion, representing an increase of NT$522.5 billion or 11.75% from the end of 2024. Currently, the market comprises 37 master agents offering a total of 962 offshore funds (belonging to 63 offshore fund managers). This represents a decrease of 1 master agent and 12 offshore funds (while the number of offshore fund managers increased by 1) compared to the end of 2024.

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V. Financial Asset Management Industry

(1) NPL collection and acquisition

In recent years, government policies have restricted financial institutions from selling non-performing loan portfolios, leading to a scarcity of primary market offerings. To ensure steady growth and optimize revenue, asset management companies (AMCs) are deepening the recovery and management of their existing cases. Furthermore, AMCs are actively participating in the secondary and tertiary markets for NPL auctions, selecting high-quality cases for bidding. Due to the current supply-demand imbalance, winning bid prices have shown a visible upward trend.

(2) Real estate investment

The "New Youth Home Loan Program" has drawn significant market attention, with some experts attributing rising property prices to this policy. In response, the government has conducted comprehensive audits to prevent misuse, such as unauthorized leasing, signaling a commitment to strict capital flow controls. Consequently, the market is shifting toward owner-occupancy and essential demand. Domestic real estate prices are no longer benefiting from loose credit conditions; developers are expected to delay new launches, and buyers have become more selective, leading to a longer sales cycle. However, provided that global and domestic economic growth remains stable and geopolitical tensions do not escalate, real estate remains a viable hedge against rising raw material costs and inflation. It continues to be an asset class capable of generating stable returns for medium-to-long-term holdings, albeit with higher capital barriers.

The Company's holdings are primarily industrial and commercial properties, most of which are currently leased, thereby minimizing the immediate impact of market fluctuations, though the pace of sales and new leasing may decelerate. Moving forward, the Company will adhere to regulatory guidelines emphasizing a disposal-oriented strategy, assessing market conditions to timely divest assets and enhance capital revitalization. We will also continue to seek premium investment targets through foreclosure auctions and government tenders to bolster profitability.

(3) Urban renewal business

In March 2025, the Financial Supervisory Commission issued revised operational guidelines for AMCs operating under financial holding companies. In addition to existing permissions, such as providing bridge financing for urban renewal and aged building reconstruction, debt consolidation, and serving as an implementer/developer or a contributor in public urban renewal projects, AMCs are now permitted to act as negotiated contributors in general urban renewal projects. This regulatory expansion allows AMCs to diversify revenue streams, deepen multi-angle business strategies, and broaden the foundations for corporate transformation.

We continues to collaborate closely with banking affiliates to undertake urban renewal and aged building bridge financing. Our goal is to assist residents in accelerating reconstruction and to align with national urban renewal policies, thereby increasing diversified income. Simultaneously, we are actively engaging with developers, land aggregators, and self-renewal communities to provide early-stage consolidation financing. Once consolidation is finalized, cases are referred to the banking arm for full-project financing, strengthening intra-group resource integration. We are also aggressively pursuing roles as a negotiated contributor in both public and private urban renewal projects. In the long term, we will evaluate opportunities to collaborate with entities such as the Taipei Urban Regeneration Center, the Urban Regeneration R&D Foundation, Taiwan Urban Regeneration & Financial Services Co., Ltd., and private landowners. By serving as an implementer or developer in reconstruction projects, we aims to provide necessary capital and execute the

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redevelopment of hazardous and aging buildings, advancing our transformation into an Urban Renewal-oriented AMC.

VI. Venture Capital Industry

According to the latest economic outlook from international organizations such as the OECD, while global growth momentum persists, the overall economic environment remains subject to uncertainty due to inflationary pressures, monetary policy adjustments by major countries, and geopolitical factors. In the short term, some demand may be released prematurely; however, the impact of related policies will continue to be reflected in subsequent economic performance.

Taiwan's economy is influenced by global business cycles. Future growth momentum will be supported not only by exports but also by domestic consumption and government expenditures. The overall economic development remains stable and steady.

The core of the venture capital business's long-term investments will focus on high-growth industries, including the semiconductor supply chain, Al hardware and software, biotechnology, circular economy, and the defense industry. These will be complemented by short-term investments in cases with strong fundamentals and liquidity. Additionally, in alignment with government initiatives for green energy, the company will manage renewable energy funds to capitalize on green power opportunities.

VII. Insurance Industry

In 2025, the total first-year premium income of the life insurance market reached NT$1,007.442 billion, representing a growth of 19.68% compared to NT$841.814 billion in 2024. The Taiwanese life insurance market continues to show a high degree of concentration. For instance, in 2025, the top ten life insurance companies accounted for 80.31% of the total premium income.

Six of the top ten companies are subsidiaries of financial holding groups: Cathay Life Insurance, Fubon Life Insurance, KGI Life Insurance, Taiwan Life Insurance, Shin Kong Life Insurance, and Taishin Life Insurance. Their premiums are primarily generated through bancassurance, group subsidiaries, or in-house agents. Collectively, the first-year premium income of these six companies accounted for 55.83% of the total market in 2025.

Regarding the product distribution of insurance companies under financial holding groups in 2025, Cathay Life Insurance led investment-linked products, which accounted for 54.50% of its first-year premium income. Cathay Life Insurance also held the highest proportion in interest-sensitive products at 36.86%, followed by Shin Kong Life Insurance at 78.96%.

The 2025 first-year premium income breakdown by distribution channel was as follows: Bancassurance (40.23%), agents (41.17%), insurance brokers/agents (18.04%), DM/TM (0.36%), and others (0.20%). Compared to 2024, the share of the insurance broker/agent channel remained stable, while the bancassurance channel saw an increase and the agent channel experienced a decline. Changes in other channels were marginal.

4.1.4 Research And Development

I. The Company

(1) R&D expenditure and achievements during the most recent two years

In 2025 and 2024, research and development expenditures amounted to NT$13,267 thousand and

NT$8,754 thousand, respectively. These funds were primarily allocated for project execution, system installation, functional adjustments, and infrastructure upgrades. Key R&D achievements include:

A. In response to Microsoft's announcement that support for system software such as Windows Server 2012 and SQL Server 2012 has ended (EOS), and to reduce information security risks arising from vulnerabilities that can no longer be patched, the Company conducted a comprehensive system upgrade of its official website.

B. To strengthen cyber security protection and addressing boundary defense gaps and human misconfigurations, the Company leveraged open-source intelligence, social networks, and the dark web. Combining this intelligence with the expertise of information security specialists, offensive and defensive techniques, and a database of hacking tools, the Company conducted intrusion simulations employing an unconstrained attack approach against agreed-upon targets and organizations across on-premises, cloud, and hybrid cloud environments. These exercises also validate the defending team's (blue team's) detection and response capabilities.

(2) Future R&D plans

The Company will collaborate with its subsidiaries to formulate strategic plans for digital channel development and cyber security enhancement. We will routinely monitor the progress of these action plans to ensure strategic alignment and operational efficiency.

II. Individual Subsidiaries

(1) First Bank

A. R&D expenditure and achievements during the most recent two years

In 2025 and 2024, research and development expenditures amounted to NT$19,336 thousand and NT$19,242 thousand, respectively. Beyond the acquisition of electronic databases and professional publications, the funds were utilized to host numerous industry seminars featuring external research analysts and investment experts from within the financial group. The bank also organized internal business research and development report competitions. Furthermore, the "Weekly Domestic and Global Economic and Financial Trends," "Global Economy Weekly," "Global Industry and Economic Information Weekly," and the "Quarterly Industry and Economic Outlook" are published consistently to facilitate knowledge sharing, video seminars of "Industry and Economic Trend Analysis" are conducted quarterly for all staff. Additionally, ad-hoc research reports are issued to provide timely summaries and in-depth analysis of the latest domestic and international industry, economic, and financial dynamics.

B. Future R&D plans

The bank aims to enhance both the breadth and depth of its economic and industry analysis while strengthening the alignment between research and business operations. By dissecting global economic trends, interest rates, and exchange rate dynamics, supplemented by real-time research on domestic and international financial regulations, we will provide an in-depth analysis of the evolving financial landscape. Furthermore, we will integrate industry outlooks, technological advancements, and industry competitiveness assessments into our reporting framework. By closely monitoring key trends in major regional industries, we intend to provide full disclosure on market opportunities and risks, delivering timely strategic insights to relevant business departments for informed decision-making.

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(2) First Securities

A. R&D expenditure and achievements during the most recent two years

In 2025 and 2024, research and development expenditures amounted to NT$44,536 thousand and NT$34,763 thousand, respectively. The securities company remains committed to advancing FinTech research and development and expanding its digital financial innovation services. Key achievements in 2025 include:

U.S. stock dollar cost averaging investment section: Offers 39 individual stocks and 11 ETFs available for automated recurring fixed amount deductions on the 3rd, 8th, 13th, 18th, 23rd, and 28th of each month. Investors may participate in the U.S. market with a minimum of US$10 or NT$500.
Subscription Center: Provides subscription services for electronic statements and various automated notifications.
Portfolio Diagnostics - Portfolio Simulation: Offers three ETF-based model portfolios for investors' reference.
Personalized In-app Push Notifications: New alerts include dividend crediting, U.S. stock Dollar Cost Averaging debit reminders, execution confirmations, and failed debit notifications.
New Recurring Order Feature: Investors may choose dollar cost averaging or "fixed-share" purchases (odd lots or round lots), with a maximum validity period of one year.
ESG Smart Sustainability Indicator Data Platform 2.0: As the first securities firm in Taiwan to introduce sustainability scoring for individual stocks, First Securities integrated ESG scoring features directly into its electronic trading platform in January 2025. This allows clients to access ESG ratings and analytics during the trading process, enhancing decision-making efficiency and realizing the vision of impactful investing.
New Odd-lot Smart Order: Provides quick orders, combo orders, long-validity orders, and inventory take-profit/stop-loss orders.
Mobile Winner App: Added "Broker Branches," "Main Force Tracking," and "Chip Overview," to help investors monitor major players' trading activity in individual stocks as an execution reference.

B. Future R&D plans

In 2026, First Securities plans to develop and launch the "Grid Trading" function. Within a price range set by the investor, the system will place multiple buy and sell orders at regular intervals and execute them with strict program-based discipline. This helps investors avoid decisions driven by fear or greed, supports an automated trading strategy designed to consistently capture profits from volatility, and improves capital utilization efficiency.

(3) First Securities Investment Trust

A. R&D expenditure and achievements during the most recent two years

During the past two years, the company completed fundraising for three funds, including the FSITC Japan Quantitative Fund, the FSITC USD High Yield Premium Income Bond ETF, and the FSITC Taiwan Stock Trend Selection Active ETF. In 2025, the launch of two ETFs represents the company's strategic milestone to actively expand its presence in the ETF market. In addition, the FSITC Aerospace and Satellite ETF demonstrates the company's forward-looking research capabilities and has become an innovative ETF product in the market. These achievements reflect the company's dedication to developing both mainstream, innovative and visionary products.

B. Future R&D plans

Looking ahead to 2026, the company will build on its experience in actively expanding the ETF market. New product planning will include both active and passive ETF strategies, as well as global overseas fund products designed to respond quickly to market changes. Upholding its commitment to product innovation, the company will expand its existing product lineup as appropriate and help investors develop a more comprehensive blueprint for asset allocation.

(4) First Life Insurance

The life insurance company's primary information system expenditure plan for 2026 will concentrate on key initiatives, including digital development projects, cyber security enhancement, regulatory compliance optimization, and the automation of internal processes. For 2026, the Company plans to invest NT$38,336 thousand in IT hardware and related equipment, and NT$94,407 thousand in software systems, totaling an aggregate expenditure of NT$132,743 thousand.

4.1.5 Short-term And Long-term Business Development Plans

Company	Short-term Business Plan	Long-term Business Development Plan
First Financial Holding	1. Deepen the core businesses across all business segments and expand the Group's operational footprint.
2. Introduce innovative asset management products to enhance the value proposition of the Group's wealth management business.
3. Strengthen FinTech competitiveness and capture opportunities arising from the digital generation.
4. Optimize capital deployment efficiency and promote inclusive finance and financial equality.
5. Integrate ESG principles into the core management philosophy to align with international sustainability trends.	1. Market positioning: Our short-term goal is to become a leading financial institution in Taiwan, with a long-term vision of evolving into a premier regional financial conglomerate across the Pan-Pacific region.
2. The following financial performance benchmarks are targeted:
Return on Assets ≥ 1%
Return on Equity ≥ 15%
Double Leverage Ratio < 120%
Group Capital Adequacy Ratio ≥ 110%
First Bank	In 2026, the Bank will adopt “Leading the New Era, Advancing Sustainability Together” as its strategic theme. Under the “Leading the New Era” pillar, the Bank will sharpen its market positioning and drive digital-intelligent innovation to navigate emerging trends, strengthen our competitive edge, and forge new paths for growth. Under the “Advancing Sustainability Together” pillar, the Bank will remain committed to pursuing operational excellence while ensuring long-term stability and shared prosperity, collaborating with customers, employees, and society to build a sustainable future.	1. Expand global market footprint.
2. Strengthen integrated marketing.
3. Transition to digital services.
4. Deepen customer relationships value.
5. Create a comprehensive cross-border operational platform.
6. Foster business innovation capabilities.
7. Emphasize sustainable operation performance.
8. Refine risk management and internal control.
9. Implement climate governance initiatives.
10. Strengthen cyber security and compliance
11. Enhance our corporate brand value
12. Foster a culture of excellence and well-being.

Company	Short-term Business Plan	Long-term Business Development Plan
First Securities	1. Implement a new sales recruitment program, effectively manage existing brokerage account staff, and strengthen training and performance KPIs to maximize individual productivity.
2. Continuously optimize electronic trading platforms and service features to elevate user experience, thereby enhancing customer loyalty and platform stickiness.
3. Proactively expand the high-net-worth segment, including corporate clients, professional investors, and business owners to optimize customer structure. By growing our brokerage and wealth management clientele, we aim to effectively drive brokerage business performance and fee income across distribution channels.
4. Pursue flagship or landmark IPO programs, and establish a dedicated SPO business team while deepening bank-channel synergies to broaden the SPO pipeline and increase underwriting revenue.
5. Optimize position management and trading capabilities in the Emerging Stock Market; participate in high-quality programs and Innovative Board market-making to boost underwriting profits.
6. Recruit elite traders to optimize the allocation of proprietary stock and bond portfolios, balancing capital gains and yields to enhance total returns.	1. Pursue balanced growth across the three core pillars, including channel sales, Investment banking, and asset management.
2. Execute channel transformation by integrating virtual and physical touchpoints to maximize operational efficiency.
3. Leverage the Group’s corporate banking resources to establish a professional image as a leader in investment banking among state-owned enterprises.
4. Refine existing investment strategies and develop proprietary trading models; flexibly adjust trading positions with rigorous risk controls to ensure stable and diversified profit streams.
5. Capitalize on regulatory easing to apply for new business licenses and diversify revenue streams.
6. Continue to upgrade the performance of digital systems to build a full-spectrum of online product suite, reinforcing the professional image as a premier digital broker.
7. Promote and implement ESG initiatives and sustainable development goals in alignment with the Group’s mandates.
First Securities Investment Trust	1. In line with the government’s policy to transform Taiwan into the Asia Asset Management Center and ongoing regulatory easing, the company will continue to drive product innovation and promote flagship funds while deepening multi-business operations.
2. With ETF issuance as a core focus, flexibly deploy both active and passive strategies, complemented by the strategic positioning of cross-border investment funds to meet diverse market needs.
3. Strengthen collaboration with Group-wide and external distribution channels while leveraging digital marketing tools to deepen customer engagement and drive growth momentum.
4. In line with the Group’s sustainable development policies, implement sustainable investment principles, integrate internal and external resources, develop professional talent, strengthen ESG investment processes, and adopt emerging technologies to enhance research and decision-making quality.	1. Refine product positioning and complete the product lineup.
2. Cultivate both virtual and physical channels to boost business momentum.
3. Strengthen professional services and scale up discretionary investment mandates.
4. Enhance core capabilities to optimize investment performance.
5. Leverage digital applications to empower business development.
6. Align with ESG trends and implement sustainable initiatives.

Company	Short-term Business Plan	Long-term Business Development Plan
First Financial AMC	5. Expand AI applications to optimize decision-making and operational efficiency while maintaining robust cyber security controls.
6. Focus on real asset investments through the private equity subsidiary to expand the asset management footprint.
	1. Accelerate NPL resolution and liquidity while continuing to selectively acquire high-quality NPL portfolios.
2. Identify premium assets in foreclosure markets and government tenders, specifically targeting the Greater Taipei and Taoyuan areas; strategically divest assets to optimize cash flow and revenue momentum.
3. Strengthen integrated marketing by collaborating with First Bank on urban renewal and unsafe/old building bridge financing; actively capture front-end financing opportunities and refer matured projects for comprehensive Group financing.	1. Strategically bid for industrial and commercial properties in Taoyuan, Hsinchu, Taichung, and Kaohsiung, while optimizing human resource allocation to match regional growth.
2. Align with government policies opening urban renewal to AMCs; foster professional expertise and industry partnerships to pivot the company into an urban-renewal-oriented AMC.
First Venture Capital & First Consulting	1. In 2026, despite an expected economic slowdown, specific stocks are still projected to show growth potential. To focus on targets with strong fundamentals and high liquidity, engaging in short-term positions with a holding period of 0.5 to 2 years and a targeted return of 10-20%.
2. To achieve profit targets and rebalance our portfolio, we will strategically divest holdings across the Listed, OTC, and Emerging markets at opportune moments to realize capital gains.	1. Target high-growth industries and key components, such as IT, new energy vehicles, third-generation semiconductors, circular economy, and biotechnology. Given the extended investment horizon, the targeted Internal Rate of Return (IRR) is projected at 20-35%.
2. In synergy with three green energy funds managed by First Consulting totaling NT$380 million, or 22% of total assets, we aim to generate consistent yields. These are expected to contribute NT$25 million annually over 20 years. Combined with NT$20 million in VC dividends, this NT$50 million annual stream will effectively buffer earnings against stock market volatility.
3. Drive Group-wide integrated marketing by offering corporate clients a full-service suite, including financing, investment, and IPO advisory. This strategy aims to sharpen our competitive edge and diversify revenue streams within the corporate finance segment, in line with the Group's long-term policy.
First Life Insurance	1. Increase product penetration across all lines: Deepen engagement with wealth management and youth segments; enhance channel performance through specialized training and sales skills. Expand the customer base by offering tailored solutions, focusing on protection-type products and increasing the take-up rate of mortgage life insurance.	1. Optimize long-term capital deployment and asset-liability management; improve investment yields by pursuing stable recurring income while adhering to sustainable investment principles.

Company	Short-term Business Plan	Long-term Business Development Plan
	2. Cultivate First Bank and First Securities channels: Deepen partnerships with First Bank and First Securities branches; provide high-efficiency sales support to maximize the Group's multi-channel advantages.
3. Expand external bancassurance & agency channels: Cultivate relationships with state-owned banks and existing intermediaries; promote core competitive products tailored to specific channel attributes to boost sales productivity.
4. Advance digital insurance: Utilize social media and digital marketing to capture prospective leads; continuously optimize the online underwriting platform to provide a seamless and efficient service experience.	2. Comprehensively realign product and channel strategies to comply with IFRS 17 and ICS; aggressively increase the share of new business value from traditional protection products and expand the contribution from external channels.
3. By combining bancassurance expertise with First Financial Holding's robust customer base and trusted brand, we uphold the philosophy of "Adequate Protection for All," transforming the pursuit of material and spiritual well-being into a comprehensive financial blueprint.

4.2 Synergies Of Cross-selling And Co-marketing

4.2.1 Overview Of The Establishment Of Dedicated Securities And Insurance Service Desks

The Group maintains a complete financial footprint, encompassing banking, securities, insurance, investment trust, asset management, venture capital, financial consulting, and leasing. To leverage our channel advantages and maximize co-marketing synergies, our subsidiaries have established cross-selling service desks and collaborative promotion counters. For instance, First Bank has deployed insurance agency areas or dedicated desks in 183 domestic branches, while First Securities operates dedicated banking and insurance desks at each of its 22 business locations and has established securities service desks within 131 First Bank domestic branches.

4.2.2 Synergies Of Co-marketing

Based on each subsidiary's resources and the Group's strategic direction, the Company defines key joint-marketing priorities and sets performance targets. By sharing resources and channels, we continue to enhance Group-wide synergy. In 2025, premium income from First Life Insurance products sold via First Bank and First Securities reached NT$5.870 billion. In terms of brokerage and sub-brokerage services, First Securities processed NT$93.528 billion and NT$31.459 billion in transaction volume from brother company channels, respectively. Furthermore, First Securities Investment Trust achieved a total sales volume of NT$6.850 billion through First Bank, encompassing both new fund IPOs and seasoned offerings, while sales of newly launched ETFs through First Securities reached NT$996 million.

4.3 Market And Business Overview

As a financial holding company, the Company's primary business scope involves investment in and management of its investees. An overview of the markets and operation of our core subsidiaries (banking, securities, investment trust, and insurance) is provided below:

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4.3.1 First Bank

I. Main Area of Operation

As of the end of 2025, First Bank operates 183 domestic branches. Internationally, the Bank maintains an extensive presence with 21 branches, 10 sub-branches, 1 extension office, 3 representative offices, and 1 subsidiary (comprising 9 locations). Strategically positioned in major international metropolises and financial centers, our network spans Asia, the Americas, Europe, and Oceania. To meet the evolving needs of our clients, we provide comprehensive financial services to Taiwanese enterprises worldwide. Moving forward, the Bank will continue to diversify its operations and aggressively expand into overseas markets with a strategic focus on New Southbound Policy countries, Europe, and North America for building a robust and seamless global financial service network.

II. Future Market Supply-Demand Dynamics and Growth Potential

(1) Supply side

The domestic banking industry in Taiwan has long faced intense competition stemming from overbanking, which not only continuously compresses profit margins but also hampers banks' agility in responding to structural shifts such as rising capital costs, technological investments, and global expansion.

Meanwhile, digital-only banks and FinTech companies are rapidly expanding their market presence through open banking APIs and payment integration models, further intensifying competitive pressures. Additionally, global regulatory standards continue to tighten, with heightened requirements for capital adequacy, anti-money laundering, and financial consumer protection. These mandates force banks to allocate significant resources toward compliance, cybersecurity, and anti-fraud systems, thereby driving up operating costs. Overall, the combination of hyper-competition, escalating compliance costs, and the aggressive entry of non-traditional players is deepening the structural pressures on the supply side of the banking sector.

(2) Demand side

Against the backdrop of global supply chain realignments and the extension of the "Three Major Programs for Investing in Taiwan," the domestic banking sector sees significant growth opportunities in corporate lending, cross-border finance, and foreign exchange services. Simultaneously, the rapid expansion of the wealth management market, driven by increased demand from high-net-worth clients for cross-border asset allocation, allows banks to diversify revenue streams through non-interest income. The proliferation of digital finance and AI technology further enables banks to enhance operational efficiency, reduce costs, and expand their customer base, fostering a new coopetition relationship with FinTech firms through API and payment integration. On the other hand, government-led initiatives in ESG, green finance, and sustainable lending are creating new growth momentum in fields such as renewable energy financing, sustainability-linked loans, and carbon asset management. Furthermore, strategic expansion into Southeast Asia and New Southbound markets allows banks to boost earnings through higher-spread overseas lending, cross-border services, and the financial needs of Taiwanese enterprises.

In summary, corporate banking, wealth management, digital transformation, ESG finance, and overseas expansion represent the primary and clear growth opportunities for Taiwan's banking industry amidst structural competitive pressures.

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III. Competitive Advantages, Favorable and Unfavorable Factors for Future Growth, and Countermeasures

The global economy is currently facing the dual impacts of rising protectionism and economic fragmentation. External uncertainties continue to intensify, driven by escalating trade restrictions, rising fiscal vulnerabilities, and heightened financial market volatility, clouding the global economic outlook. As AI-related sectors potentially face valuation re-adjustments, overall risk sentiment has further escalated, exerting greater pressure on national policy maneuvers and market confidence. In response to these shifts, the Bank will continue to closely monitor industry and economic trends, adopting forward-looking strategies for stable operations. We aim to capture emerging demands by strengthening our cross-border financial presence, deepening customer relationships, and flexibly adjusting credit and asset allocations to enhance business capacity both domestically and abroad. Simultaneously, the Bank will proactively leverage big data and AI to drive digital transformation, expanding diverse digital and scenario-based financial services. By reinforcing the integration of banking services into customers' daily lives, we strive to build a more resilient financial service ecosystem with robust growth momentum.

(1) Tailwinds

A. Century-old brand and a business philosophy that stresses steady development.
B. An extensive network of domestic channels, a strong local presence, and deep relationships with customers.
C. An international presence ahead of peers, with extensive footholds in Europe, the US, and the Greater China region.
D. Strong expansion into the Southeast Asian market, forming an Asia-Pacific financial service network.
E. Consolidation of the core corporate banking business to maintain profitability.
F. Well-recognized innovative services for corporate clients that include cross-border supply chain, sales chain, and value chain financing.
G. Accelerating digital-physical integration, enhancing social media presence, and empowering intelligent services through AI innovation.
H. Integration of group-wide resources and synergy from diversified businesses.

I. Sound asset quality and rigorous risk control mechanisms.
J. Solid ownership structure and stable management teams.
K. A focus on training international finance talents to enhance competitiveness.
L. Deepening green finance to assist clients through their low-carbon transition.
M. Segmented wealth management for high-net-worth clients, providing integrated advisory to fulfill family and corporate legacies.

(2) Headwinds

A. Diversified corporate fundraising channels have weakened a bank's role as a financial intermediary.
B. The FinTech trend is attracting non-bank players to provide financial services and to compete with domestic banks.

C. Persistent overbanking in Taiwan and a low-interest-spread environment lead to intensified price competition.

D. Replicated financial products and services offered by domestic banks indicate a lack of innovation capability.

E. The scale of domestic banks is far from those of international banks.

F. International politico-economic uncertainties have intensified fluctuations in the financial market.

G. Tighter global financial oversight and escalating risks drive up capital requirements and compliance costs.

(3) Counter Measures

A. Keep abreast of the latest macroeconomic and industry trends to devise timely response measures.

B. Continue to enhance the integration of business processes; achieve steady growth via forward-looking transformation initiatives.

C. Accelerate digital-physical integration; develop diverse smart services and enhance data-driven marketing precision.

D. Use capital to create value and promote value-driven businesses to increase customer patronage for long-term relations

E. Expand business scale through the "Broaden Presence, Deepen Localization" framework, guiding overseas branches to evolve into full-service entities.

F. Support the government's policy of assisting Taiwanese businesses to return and invest in Taiwan, and offer a diverse and high-quality range of financial products to meet the financial service needs of Taiwanese businesses.

G. Review talent pools of the sales workforce and accelerate the cultivation of core competence of the succession teams; continue to foster international talents to enhance the synergy of talent training.

H. Embody corporate social responsibility and demonstrate the value of the financial service industry's contribution to society.

I. Advancing ESG-driven strategies; leveraging our role as a financial intermediary to drive stewardship and engagement, achieving the goal of "Sustainable Finance".

IV. Business Development Overview

Please refer to the Scope of Business and Business Composition (Pages 118-123).

4.3.2 First Securities

I. Main Area of Operation

First Securities' main business operations span securities and futures brokerage, IPO and SPO advisory, equity and bond underwriting, stock affair services, financial consulting, warrant issuance, and proprietary trading of stocks and bonds. Our securities and futures brokerage and warrant

issuance primarily cater to the general public and institutional clients. Beyond our brokerage network across northern, central, and southern Taiwan, including a branch in the outlying Penghu Islands, we leverage securities counters located within First Bank branches to extend services outreach to most counties and cities nationwide. For underwriting and stock affairs services, we provide advisory and underwriting solution to pre-IPO companies and publicly issued enterprises. With four strategic hubs in Taipei, Hsinchu, Taichung, and Tainan, our underwriting teams offer localized services to high-quality enterprise and high-potential firms within science and industrial parks. Furthermore, in alignment with the government's Southbound Policy, we actively pursue primary listings for Southeast Asian Taiwanese and ethnic Chinese businesses. As for the buying and selling of proprietary trading, there are no specific service targets or regional limitations.

II. Future Market Supply-Demand Dynamics and Growth Potential

(1) Supply side

Securities firms are the primary providers of services within the securities market. With the advent of the digital FinTech era and the rising proportion of institutional trading, small-to-medium-sized and specialized brokers that lack group resources face increasing survival challenges. To enhance location-based competitiveness, industry consolidation remains ongoing, leading to a year-on-year decrease in the total number of securities firms and a steady rise in electronic trading volumes. Amid intense competition in traditional brokerage services, future strategic directions are shifting toward non-traditional businesses. For instance, the government's recent promotion of Trust 2.0 and Wealth Management 2.0, both built upon existing wealth management and sub-brokerage frameworks, present new opportunities for firms to generate fee income.

Other initiatives, such as two-way securities lending, unrestricted-purpose loans, and bridge loans for stock subscriptions, not only allow firms to derive new business opportunities from existing clients' stock inventories but also provide clients with alternative financing channels beyond traditional margin trading, thereby creating additional liquidity for market participation. In the underwriting business, besides the primary exchanges, the TWSE and TPEx, we have been actively promoting the Taiwan Innovation Board and the Strategic Board. In 2024, margin trading was enabled for Taiwan Innovative Board-listed stocks, and the Strategic Board was merged into the Emerging Stock Market, providing startups with more accessible fundraising channels in the capital market. Starting in 2025, the removal of investor qualification restrictions for the Taiwan Innovative Board is expected to enhance trading liquidity. Furthermore, the opening of sub-brokerage services for virtual asset ETFs demonstrates that the services provided by domestic securities firms are trending toward increased openness and diversification.

(2) Demand side

The securities market serves as a platform connecting capital seekers with capital providers. There are two primary groups of demanders: first, investors who trade domestic and foreign securities and derivatives to satisfy their wealth management and investment needs; and second, listed or pre-IPO enterprises that raise funds through the domestic capital market by issuing stocks, corporate bonds, or convertible bonds to meet their capital requirements. As the government progressively relaxes regulations and expands the business scope for securities firms, it enables investors to choose from a more diverse array of financial products through convenient and user-friendly trading platforms. Under this investor-centric service innovation model, brokerage firms will further deepen the functionality of the securities market. Simultaneously, these changes

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encourage successful overseas Taiwanese businesses, as well as high-potential startups and quality companies, to raise capital through domestic markets. This collectively ensures that the needs of both capital seekers and capital allocators within the securities market are effectively met.

(3) Market growth potential

The growth potential of the domestic securities industry can be analyzed through two primary pillars: brokerage, investment and wealth management services and underwriting services for corporate fundraising. In terms of investment and wealth management, capital momentum in the Taiwan stock market remains robust, with no shortage of liquidity. Furthermore, the strong U.S. dollar has led to a continuous increase in USD holdings among domestic investors. Beyond traditional USD time deposits in banks, this abundant USD capital is seeking fixed-income products overseas with stable interest rates and high credit ratings, creating significant opportunities for securities firms to expand their sub-brokerage business. Additionally, Taiwan's aging society and declining birthrate will inevitably drive demand for trust services. Meanwhile, regulatory policies encouraging financial inclusion and user-friendly financial services have made investing accessible beyond just the affluent. The rising participation of young professional investors and the younger generation will further bolster the development of brokerage and wealth management businesses.

Regarding corporate fundraising, the Financial Supervisory Commission, Taiwan Stock Exchange, and Taipei Exchange have relaxed regulations for start-up IPOs and SPO for group enterprises, diversifying corporate financing channels. This shift significantly increases the willingness and likelihood for Taiwan's small and medium enterprises, successful overseas Taiwanese businesses, and Southeast Asian companies, especially those with industries closely tied to Taiwan's, to choose Taiwan as their primary fundraising hub. These developments have a direct positive impact on the underwriting business of securities firms.

Furthermore, Chairman of the Financial Supervisory Commission, Jin-lung Peng, who took office in May 2024, has prioritized establishing Taiwan as an "Asia-Pacific Asset Management Center." In September, he unveiled the "Five Major Plans," including the "Expand Investment in Taiwan" initiative. This plan focuses on increasing investment in venture capital and startups, guiding high-potential emerging industries (such as green energy, digital cloud, and biotech) toward the capital market, and planning for Taiwan-Japan cross-border listings. These comprehensive measures to strengthen Taiwan's capital market will drive the positive long-term development of the domestic securities industry.

III. Competitive Advantages, Favorable and Unfavorable Factors for Future Growth, and Countermeasures

(1) Competitive Advantages

A. First Financial Group possesses a complete financial business with an extensive branch network. This facilitates the expansion of business breadth and provides convenient, localized service to clients.

B. By promoting group-wide joint marketing initiatives, the group provides customers with one-stop-shopping financial services, achieving cost reductions and the synergies of integrated cross-selling.

C. The professional image and service quality of First Securities in areas such as underwriting, digital transformation, and ESG are increasingly gaining market traction.

(2) Tailwinds

A. In alignment with the "New Southbound Policy", the Financial Supervisory Commission is attracting Taiwanese and overseas Chinese businesses from Southeast Asia to raise capital in Taiwan. Meanwhile, the Taiwan Stock Exchange and Taipei Exchange are actively promoting various IPO venues to attract professional investors, enhancing the diversity and competitiveness of Taiwan's capital market.

B. To boost the competitiveness of the securities industry, authorities continue to deregulate financial products and services while lowering entry barriers for investors, which is conducive to business development.

C. Domestic liquidity remains plentiful. Institutional investors maintain an optimistic outlook on the Taipei Exchange and the profitability of key industries, fostering active market turnover and providing momentum for brokerage and proprietary trading businesses.

D. In the current relatively high-interest-rate environment, the U.S. Federal Reserve is expected to slow its rate cuts in 2025. Simultaneously, the Central Bank of Taiwan, aiming to curb rising housing prices, has limited room for rate cuts and may even raise the required reserve ratio. This may increase bank lending costs for enterprises, encouraging them to pivot toward direct financing via the capital market, thereby driving growth in underwriting projects.

(3) Headwinds

A. Ongoing instability in international markets impacts the performance of the Taiwan Stock Exchange, subsequently increasing the difficulty and risk of proprietary trading operations.

B. As the trend toward mega-brokers continues, firms have launched price wars to capture market share. This aggressive price competition significantly impacts brokerage commission income and margin interest revenue.

C. Should the global economy face a recession, a slowdown in corporate operational performance may dampen the willingness of enterprises to pursue capital raising.

(4) Counter Measures

A. Continue to strengthen the balanced development of brokerage, proprietary trading, and underwriting businesses to solidify the operational structure and enhance market competitiveness.

B. Persist in recruiting high-quality sales talent with established client bases. Actively develop sub-brokerage services and expand two-way securities lending and unrestricted-purpose loans to diversify revenue sources within the channel business.

C. In response to FinTech trends, enhance the completeness and convenience of mobile wealth management products. Additionally, to meet the investment needs of the younger generation, integrate periodic dollar cost averaging investments and odd-lot trading to increase the stickiness of the digital customer base.

D. Continuously strengthen risk management, legal compliance, and auditing processes to mitigate operational risks and pursue stable profit growth.

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IV. Business Development Overview

The operating performance and market share of First Securities are summarized in the table below:

Year	2025	2024
Item	Amount / % / Count	Amount / % / Count
Brokerage turnover (NT$ 100 million)	32,021.5	31,943.9
Brokerage market share (%)	1.237	1.258
Outright bond purchase transaction volume (NT$ 100 million)	175.50	143
Bond repo transaction volume (NT$ 100 million)	1,566.54	1,768.13
Number of deals as lead underwriter (Count)	12	9
Number of deals as co-lead underwriter (Count)	33	49

4.3.3 First Securities Investment Trust

I. Main Area of Operation

A pioneer in the field, First Securities Investment Trust was the first investment trust company listed on the Taipei Exchange. It also set a precedent for localized services by expanding southward; in addition to its Taipei headquarters, branch offices were subsequently opened in Kaohsiung, Hsinchu, and Taichung, forming three key service centers. Furthermore, the company was a frontrunner in launching online fund trading and automated voice transaction systems, offering investors more convenient and efficient channels while successfully broadening its customer base.

II. Future Market Supply-Demand Dynamics and Growth Potential

(1) Supply side

As of the end of 2025, a total of 1,065 onshore funds have been launched, with a total AUM of NT$11.3764 trillion. In the offshore fund segment, as of the end of 2025, 37 master agents, 63 offshore fund asset managers, and 962 offshore funds have been approved, with domestic investors holding a total of NT$4.9704 billion.

In 2025, market volatility prompted investors to focus on mature markets, particularly Taiwan and the U.S. The Taiwan stock market, buoyed by AI-related themes and supply chain dividends, reached new highs during the year. Looking ahead to 2026, investors are expected to place even greater emphasis on risk management and volatility control. In response to these evolving needs, investment trust companies will continuously review and realign their product portfolios toward diversification to scale their operations and seize future growth opportunities.

(2) Demand side

In 2025, the total scale of public offering funds in Taiwan surpassed NT$11 trillion, reflecting continuous domestic wealth accumulation and a deepening culture of personal financial planning. Looking ahead to 2026, as the yield curve inversion corrects and the rate-cutting cycle progresses, a shift in asset allocation logic has emerged. Capital is increasingly rotating from long-duration

high-yield treasury ETFs toward actively managed bond products and short-to-medium-term non-investment grade bonds.

Data shows that ETFs now account for 82% of periodic investment plans, with the 21-to-40 age group serving as the primary driver. This younger demographic's high receptivity to new technologies and concepts has made them a core force behind the growth of actively managed ETFs and non-distributing ETFs. Furthermore, investor appetite has shifted from traditional market-cap-weighted and high-dividend products toward active Taiwan equity funds and tech-themed ETFs with alpha-generating potential, particularly those focused on semiconductors and AI.

Overall, fund performance in 2026 will hinge on capturing key industry trends. Physical AI applications, the semiconductor spillover effect, and investments in power and data center infrastructure are expected to be the three core investment themes under market spotlight.

III. Competitive Advantages, Favorable and Unfavorable Factors for Future Growth, and Countermeasures

(1) Competitive advantages

A. Solid state-affiliated brand image with strong Group support.

B. Proven track record in thematic products (for example, FSITC Global Utilities and Infrastructure Fund).

C. Leading market position in money market funds, which significantly bolsters brand visibility.

(2) Tailwinds

A. Government to transform Taiwan into an Asian Asset Management Center, helping expand our business reach into new areas (such as TISA, non-SIT funds, private equity, and REITs).

B. Expected rate cuts are favorable to drive robust demand for income-generating products.

C. Emerging policy-driven opportunities and the company is well-positioned with a product suite ready to capture new market segments (for example, non-SIT funds).

(3) Headwinds

A. High concentration in the ETF market creates a high entry barrier and growth challenges for smaller-scale player.

B. Competitors often exhibit high agility and speed in launching products whenever new business categories are deregulated.

C. Severe product homogeneity makes it difficult to maintain long-term competitive differentiation.

(4) Counter Measures

A. Focus on income-generating solutions products to meet the market's growing demand for stable returns.

B. Closely monitoring industry trends to flexibly adjust business strategies and products, with a focus on growing non-money market funds to enhance product diversity and competitiveness.

C. Continuing to cultivate the ETF business by developing innovative ETF products that respond to evolving market competition and diverse investor needs.

D. Actively aligning with government policy and participating in the Asia Asset Management Center to expand international presence.

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E. Integrating AI technologies to optimize management efficiency, enhance operational performance, and accelerate the digital shift.
F. Strengthening ESG (environmental, social and governance) integration to elevate corporate image and appealing to customers.

IV. Business Development Overview

Please refer to the Scope of Business and Business Composition (Pages 124-125).

4.3.4 First Life Insurance

I. Main Area of Operation

First Life Insurance, as a wholly-owned subsidiary, plans to leverage the brother companies' massive customer base, extensive branch network, and enduring customer relationships, alongside the strong brand recognition and marketing expertise cultivated through existing internal channels. The company will further enhance its product innovation capabilities and proactively penetrate external banking, insurance broker, and agency channels beyond the Group. The company aims to expand domestic market footprint, drive sustainable profit growth, and achieve economies of scale, ultimately fulfilling the long-term objective of maximizing corporate value.

II. Future Market Supply-Demand Dynamics and Growth Potential

(1) Supply side

In 2025, the top five players in the Taiwan life insurance market accounted for 53.68% of the total first year premium income. Life insurance companies under financial holding groups benefit from cross-marketing advantages and group-wide support, while those with foreign investment backgrounds can integrate parent company resources to refine their operational models. In recent years, KGI Life Insurance under KGI Financial Holding and Taiwan Life Insurance under CTBC Financial Holding have utilized continuous acquisitions to rapidly expand. Within just a few years, their first year premium market shares reached 7.67% and 7.45%, ranking them as the 4th and 6th largest in the market, respectively. Taishin Life Insurance has also seen a significant boost in sales volume. Following the integration of financial holding group's marketing resources and the expansion of insurance broker and agency channels, Taishin Life Insurance's ranking has advanced to 8th place. Upon consolidating Shin Kong Life Insurance's 2025 performance, its market share would reach 10.52%, moving up to 3rd place. The acquisition of insurance companies with diverse channel attributes appears to generate significant synergies for overall development; consequently, the ongoing shifts in the life insurance landscape warrant long-term observation. Furthermore, as regulatory oversight becomes increasingly stringent, particularly regarding the impact of IFRS 17 implementation, coupled with the volatile international financial climate, only those insurance companies capable of mastering regulatory trends and market changes with immediate adaptability will achieve sustainable growth.

(2) Demand side

Historically, consumers in Taiwan have viewed life insurance primarily as a savings or investment tool rather than a protection mechanism; consequently, the market remains highly sensitive to economic cycles and interest rate fluctuations. In response to challenges such as low average coverage, an aging population, and declining birth rates, regulatory authorities have been actively

promoting protection-type products, small-amount whole life insurance, long-term care, and annuities. In 2025, stringent regulatory focus on consumer protection measures for the elderly and individuals with disabilities has fundamentally reshaped operations, from product design and solicitation to underwriting and claims processing. These combined efforts are expected to lead the market toward a more mature and robust development.

III. Competitive Advantages, Favorable and Unfavorable Factors for Future Growth, and Countermeasures

(1) Tailwinds

A. A trusted and stable professional image, bolstered by our state-affiliated financial holding brand.

B. A competitive edge in both internal and external channel collaborations, supported from First Bank and top management of state-owned banks.

C. Comprehensive and competitive interest-sensitive life insurance line that holds a distinct advantage over industry peers.

(2) Headwinds

A. Limited business scale sensitive to fixed cost burdens and fluctuations in the loss-profit ratio.

B. Limited economies of scale making sales incentives weaker, channel competition and benchmarking relatively challenging.

C. Persistent industry-wide price competition compressing profit margins, driving up costs for channel management and product development.

D. Slower adoption of diverse services such as digital services (AI customer support) and social media services (Line official account) compared to industry leaders.

(3) Counter measures

To leverage favorable factors, the company will focus on core products and utilize the Group synergies to provide tailored solutions, fulfilling the goal of all-round financial services. The following strategic measures will be adopted for product development:

A. Continued development of protection-type products to fulfill the gap in customers' insurance coverage while creating exclusive investment-linked products for broker channels under the reputable state-affiliated brand to expand market footprint.

B. Deepening ties with other state-owned and private banks to gradually increase sales of wealth management-oriented products and mortgage life insurance.

To mitigate afore-mentioned unfavorable factors, the company will adopt the following measures:

A. Customer-centric product development to meet the financial needs across all life stages of customers and respond rapidly to market shifts to enhance competitiveness and scale.

B. Continue to expand partnerships with insurance brokers and agencies for mobile policy applications, optimize the "E-agent" inquiry system, and progressively enhance digital capabilities to scale up toward diversified services.

IV. Business Development Overview

Please refer to the Scope of Business and Business Composition (Page 127).

4.4 Employees: The Number Of Employees, Average Tenure, Average Age, Education Distribution, Professional Certificates, And Training Status During The Most Recent Two Years And Up To The Publication Of This Annual Report Are As Follows:

4.4.1 The Number Of Employees, Average Tenure, Average Age And Education Distribution

		Company Name	2024	2025	Current year as of Feb. 28, 2026
Number of Employees	FFHC	59	62	62
		First Bank	8,623	8,609	8611
		First Securities	822	825	821
		First Securities Investment Trust	148	147	150
		First Life Insurance	359	342	345
		First Financial AMC	61	65	65
		First Consulting	12	13	13
Average Age	FFHC	46.36	46.94	47.06
		First Bank	42.26	42.58	42.63
		First Securities	47.26	47.93	48.08
		First Securities Investment Trust	45.31	45.71	45.83
		First Life Insurance	45.40	46.30	46.40
		First Financial AMC	47.00	47.00	47.00
		First Consulting	47.30	47.50	47.70
Average Tenure	FFHC	7.88	7.58	7.67
		First Bank	16.60	16.83	16.87
		First Securities	10.97	11.14	11.28
		First Securities Investment Trust	8.50	8.86	8.78
		First Life Insurance	5.10	6.00	6.10
		First Financial AMC	15.00	15.00	15.00
		First Consulting	8.23	6.53	6.61
Educational Distribution (%)	PhD	FFHC	0.00	0.00	0.00
		First Bank	0.05	0.05	0.06
		First Securities	0.12	0.12	0.12
		First Securities Investment Trust	0.00	0.00	0.00
		First Life Insurance	0.56	0.58	0.58
		First Financial AMC	0.00	0.00	0.00
		First Consulting	0.00	7.00	7.00
	Master	FFHC	45.77	50.00	51.61
		First Bank	26.83	27.93	27.88
		First Securities	16.67	16.61	16.57
		First Securities Investment Trust	37.16	35.33	35.33
		First Life Insurance	20.61	21.64	22.03
		First Financial AMC	6.00	6.00	6.00
		First Consulting	42.00	36.00	36.00
		FFHC	52.54	48.39	46.78
		First Bank	69.36	68.64	68.73

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		Company Name	2024	2025	Current year as of Feb. 28, 2026
Educational Distribution (%)	Bachelor	First Securities	72.75	73.45	73.69
		First Securities Investment Trust	59.46	61.34	62.00
		First Life Insurance	68.25	69.01	68.98
		First Financial AMC	88.00	88.00	88.00
		First Consulting	58.00	57.00	57.00
	High School	FFHC	0.00	0.00	0.00
		First Bank	3.40	3.07	3.02
		First Securities	10.46	9.82	9.62
		First Securities Investment Trust	3.38	3.33	2.67
		First Life Insurance	10.58	8.48	8.12
		First Financial AMC	6.00	6.00	6.00
		First Consulting	0.00	0.00	0.00
	Under High School	FFHC	1.69	1.61	1.61
		First Bank	0.36	0.31	0.31
		First Securities	0.00	0.00	0.00
		First Securities Investment Trust	0.00	0.00	0.00
		First Life Insurance	0.00	0.29	0.29
		First Financial AMC	0.00	0.00	0.00
		First Consulting	0.00	0.00	0.00

4.4.2 Names And Numbers Of Professional Certificates Held By Employees

Year	2024	2025	Current year as of Feb. 28, 2026
Bank Internal Control and Internal Audit Exam	6,907	6,950	6,973
Basic Level Foreign Exchange Personnel	2,669	2,771	2,788
Basic Level Bank Lending Personnel	3,369	3,448	3,461
Stock Affairs Specialist	945	956	956
Bond Specialist	332	327	326
FinTech Proficiency Test	3,964	4,158	4,178
Certified FinTech Practitioner	18	28	28
Securities Investment Trust and Consulting Professionals	1,814	1,803	1,807
Securities Investment Trust and Consulting Related Regulations	5,736	5,770	5,808
Trust Specialist	7,660	7,656	7,677
Investment-Linked Insurance Product Agent	6,759	6,918	6,942
Derivative Product Sales Agent (include Structured Product Sales Agent)	6,112	6,219	6,240
Life Insurance Salesperson	8,107	8,083	8,118
Life Insurance Broker	7	6	6
Life Insurance Agent	21	21	21

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Year	2024	2025	Current year as of Feb. 28, 2026
Non-Investment, Foreign Currency Denominated Insurance	6,332	6,399	6,410
Property & Casualty Insurance Salesperson	7,047	7,076	7,085
Securities Specialist	2,431	2,496	2,504
Senior Securities Specialist	2,384	2,373	2,371
Securities Investment Analyst	247	240	240
Securities Margin Trading and Short Selling Specialist	229	233	232
Futures Specialist	2,016	2,017	2,005
Futures Broker	1	1	1
Futures Trading Analyst	24	25	24
Financial Risk Manager (FRM)	106	107	105
Anti-Money Laundering & CFT Specialist	3,564	3,799	3,830
Certified Anti-Money Laundering Specialist	1,450	1,418	1,417
Financial Planner	2,086	2,100	2,103
Certified Financial Planner	65	82	82
Financial Planner for Seniors	320	476	476
Sustainable Finance - Basic Competence	204	2,255	2,307
Sustainable Finance - Advanced Competence	1	30	34
Chartered Financial Analyst (CFA - Level 1)	12	11	12
Chartered Financial Analyst (CFA - Level 2)	3	3	3
Chartered Financial Analyst (CFA - Level 3)	17	15	15
Certified Internal Auditor	13	14	14
Certified Information Systems Auditor	8	8	8
Attorneys-at-Law	27	25	24
CPA	32	34	34
US Actuary	2	3	3
R.O.C. Actuary	2	4	4
LIMA R.O.C. - Underwriting Personnel	13	18	18
LIMA R.O.C. - Claims Personnel	11	10	10

4.4.3 Status Of Professional Certificates Obtained By Personnel Related To Financial Information Transparency

Division	Professional Certificate
Finance & Accounting Division	3 persons passed the Basic Test on Corporate Internal Control; 4 persons passed the Bank's Internal Control and Internal Audit Exam.
Auditing Division	1 Certified Internal Auditor, 1 Certified Information Systems Auditor, 1 person passed the Basic Internal Control Test, and 5 persons passed the Bank's Internal Control and Internal Audit Exam.

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4.5 Employee Training And Development Status

4.5.1 Integrated Marketing Education And Training

In accordance with the "Rules for Implementing Integrated Marketing Education and Training of First Financial Holding and its Subsidiaries", each primary distribution channel and product unit formulates training plans prior to the start of each year, based on integrated marketing business development and talent cultivation needs. These plans are submitted to the Company for consolidation into the annual integrated marketing education and training plan, which is then officially promulgated for implementation. The actual execution by each unit is reported on a quarterly basis.

The content of the integrated marketing education and training plan includes:

Training programs organized internally by distribution units or provided by product units focus on practical case studies, operational workflows, and simulations.
Thematic seminars targeting personnel responsible for relevant business areas emphasize on strategic business planning and performance evaluation and improvement.
For integrated marketing professional certifications, distribution units assign designated personnel to attend external professional training to assist staff in obtaining the licenses required for business promotion.

Participants for the aforementioned training are selected or recommended by each unit based on the annual plan. In 2025, the total duration of integrated marketing education and training programs amounted to 194.55 hours, with a total of 24,426 attendees. These training programs included online e-learning and video-conferencing courses.

4.5.2 Employee Education And Training

Following the needs of business developments, each company within the Group has formulated its own annual education and training programs to enhance employees' professional expertise and managerial competencies. In 2025, a total of 212,798 participants attended internal and external training sessions (including online learning), with total training expenditures amounting to NT$75,720 thousand.

4.5.3 2025 Continuing Education And Training For The Company's Executives

Title	Name	Course Name	Hour
President	Frank Y. C. Fang	CG Forum: Personal Data Protection Trends in Digital Banking	3.0
		CG Forum: AML, Fraud Prevention, and Cyber Security Risks of Emerging Tech	3.0
		ESG & Sustainable Finance	1.0
		CG Forum: Evaluation & Management of Generative AI in Finance	3.0
		Financial Inclusion Services	2.0
		2025 Net Zero Emission Development Trends	2.0
EVP & Head of Strategy Planning Division	Annie Lee	CG Forum: AML, Fraud Prevention, and Cyber Security Risks of Emerging Tech	3.0
		ESG & Sustainable Finance	1.0

Title	Name	Course Name	Hour
		CG Forum: Evaluation & Management of Generative AI in Finance	3.0
		2025 Net Zero Emission Development Trends	2.0
EVP & Chief Compliance Officer	Jenn-Hua Wang	CG Forum: Personal Data Protection Trends in Digital Banking	3.0
		CG Forum: AML, Fraud Prevention, and Cyber Security Risks of Emerging Tech	3.0
		CG Forum: Evaluation & Management of Generative AI in Finance	3.0
		AML/CFT Continuing Education Program for Specialists	15.0
		ESG & Sustainable Finance	1.0
		2025 Net Zero Emission Development Trends	2.0
EVP & Chief Cyber Security Officer	Pei-Wen Liu	ESG & Sustainable Finance	1.0
		2025 Net Zero Emission Development Trends	2.0
Chief Auditor & Head of Auditing Division	Mico H.C. Lin	Banking and Finance Workshop for Auditing Personnel	18.0
		Internal Audit Seminar for Financial Holding Companies	3.5
		ESG & Sustainable Finance	1.0
		Joint Internal Audit Seminar for FHCs and Domestic Banks	3.5
		2025 Net Zero Emission Development Trends	2.0
Chief Secretary to the Board of Directors & Chief Corporate Governance Officer	Li-Fang Hung	CG Forum on AI Issues: Business Value & Digital Risks of Generative AI	3.0
		CG Forum: Personal Data Protection Trends in Digital Banking	3.0
		CG Forum: AML, Fraud Prevention, and Cyber Security Risks of Emerging Tech	3.0
		CG Forum: Evaluation & Management of Generative AI in Finance	3.0
		ESG & Sustainable Finance	1.0
		2025 Net Zero Emission Development Trends	2.0
Acting Head & Deputy Head of Compliance Division	Karen Hsu	AML/CFT Continuing Education Program for Specialists (The 682nd Session)	12.0
		CG Forum: Personal Data Protection Trends in Digital Banking	3.0
		CG Forum: AML, Fraud Prevention, and Cyber Security Risks of Emerging Tech	3.0
		ESG & Sustainable Finance	1.0
		2025 Net Zero Emission Development Trends	2.0
		Foreign Exchange Derivative Products Training Course	12.0
		Continuing Education Program for Trust Management Personnel	12.0
Head of Administration Mgmt. Division	Shui-Lien Wang	Legal Compliance Orientation Program (The 448th Session)	15.0
		2025 TDCC ESG Service Forum	5.0
		Key Considerations and Practical Analysis of “AGM” and the “Company Act”	3.0
		ESG & Sustainable Finance	1.0
		2025 Net Zero Emission Development Trends	2.0
Head of Business Development Division	Jenny M. C. Wu	CG Forum: Personal Data Protection Trends in Digital Banking	3.0
		CG Forum: AML, Fraud Prevention, and Cyber Security Risks of Emerging Tech	3.0

Title	Name	Course Name	Hour
		ESG & Sustainable Finance	1.0
		CG Forum: Evaluation & Management of Generative AI in Finance	3.0
		2025 Net Zero Emission Development Trends	2.0
Head of Risk Management Division	Patty Tsai	CG Forum: Personal Data Protection Trends in Digital Banking	3.0
		CG Forum: AML, Fraud Prevention, and Cyber Security Risks of Emerging Tech	3.0
		CG Forum: Evaluation & Management of Generative AI in Finance	3.0
		ESG & Sustainable Finance	1.0
		2025 Net Zero Emission Development Trends	2.0
		Foreign Exchange Derivative Products Training Course	12.0
Acting Head & Deputy Head of IT Division	Chih-Ping Wang	ESG & Sustainable Finance	1.0
		2025 Net Zero Emission Development Trends	2.0
Deputy Head of Administration Mgmt. Division and Chief Accounting and Finance Unit	Nai-Wen Kuo	CG Forum: Personal Data Protection Trends in Digital Banking	3.0
		CG Forum: AML, Fraud Prevention, and Cyber Security Risks of Emerging Tech	3.0
		ESG & Sustainable Finance	1.0
		2025 Net Zero Emission Development Trends	2.0

4.6 Corporate Responsibility And Ethical Conduct

4.6.1 Implementation Status Of Sustainable Development: Please Refer To The Section “Implementation Status Of Sustainable Development” On Pages 65-82 Of This Annual Report

First Financial Holding seamlessly integrates its sustainability strategies with its core business philosophy, long committing to performance excellence across governance, social responsibility, and environmental sustainability. In 2025, First Financial Holding was selected for the Dow Jones Best-in-Class (DJBIC) “World Index” for the eighth consecutive year and the “Emerging Markets Index” for the tenth consecutive year. Furthermore, the Company was featured in the S&P Global Sustainability Yearbook for the eighth time, ranking within the Top 5% of the global banking industry. First Financial Holding also achieved Leadership Level A ratings from the international non-profit organization CDP in three key domains: climate change, water security, and forests. Additionally, for the fourth time, First Financial Holding secured the highest AAA rating in the MSCI ESG Ratings in Banking and has been included in the FTSE4Good Emerging Index for nine consecutive years. First Financial Holding and its banking subsidiary were honored with seven major awards at the 18th Taiwan Corporate Sustainability Awards (TCSA), including the “Taiwan Top 100 Sustainability Model Enterprise Award”, “Taiwan Corporate Sustainability Reporting Award – Gold Award for Finance and Insurance”, “Leadership Award for Climate”, “Leadership Award for Workplace Wellbeing”, “Leadership Award for Social Inclusion”, “Leadership Award for Innovation and Growth”, and “Leadership Award for Creative Communication”. The Group was also recognized by the Occupational Safety and Health Administration, Ministry of Labor, as a “Leading Enterprise in Sustainable Occupational Health” for the third time. On the capital market front, First Financial Holding has been a component stock of the “Taiwan Corporate Governance 100 Index” for 11 consecutive years, the “Taiwan Sustainability Index” for 9 years, the “Taiwan High Compensation 100

Index" for 12 years, and the "Taiwan Employment 99 Index" for 16 consecutive years. First Bank received 8 prestigious awards from the Ministry of Economic Affairs, including the "Credit Guarantee Golden Quality Award - Financial Institution Category", "Credit Guarantee Golden Quality Award - Credit Manager Category", "Green Credit Promotion Award", "Post-Pandemic Revitalization Award - Top Organization in Number of Guaranteed Clients", "0403 Earthquake Reconstruction Support Award - Branch Category", "Enterprise Assistance Award", "Outstanding Performance Award in Collection of Guaranteed Loans", and "Outstanding Award for Credit Guarantee Collection - Credit Manager". The Bank made a national precedent by winning the "Excellence Award" at the "7th National Enterprise Environmental Protection Awards" for the sixth time. The Bank also received the inaugural "Corporate Marine Sustainability Contribution Award" from the Ocean Affairs Council and ranked within the Top 25% for both the Financial Supervisory Commission's "Fair Treatment of Customers" and "Sustainable Finance Evaluations". First Life Insurance was recognized by the Financial Supervisory Commission for the 29th consecutive time as an outstanding insurer under the "Program to Enhance National Insurance Coverage". On the other hand, First Securities ranked within the Top 25% in the Financial Supervisory Commission's Sustainable Finance Evaluation and was featured on the "List of 2025 Better Performer in Stewardship Information Disclosure" by the Taiwan Stock Exchange.

4.6.2 Information On Ethical Conduct Is As Follows:

To ensure that directors, supervisors, managers, and employees across the Group fully understand and strictly adhere to our ethical standards, we have consolidated various internal regulations, including the Company's "Corporate Governance Best Practice Principles", "Ethical Management Best Practice Principles and Guidelines for Conduct", "Procedures for Handling Internal Material Information", "Self-Regulatory Rules on Disclosure of Information regarding Merger and Acquisition", "Employee Code of Conduct and Ethics", as well as the "Gender Equality in Employment Act" and "Occupational Safety and Health Act". Based on these, we established the "Code of Conduct for Directors, Supervisors, and Managers of First Financial Holding" and the "Code of Conduct for Employees of First Financial Holding". These codes encompass key areas such as preventing conflicts of interest, avoiding personal gain or improper benefit transfer, fulfilling confidentiality obligations, ensuring fair trade, protecting and appropriately using corporate assets, and complying with anti-money laundering and countering the financing of terrorism regulations. They also encourage the reporting of illegal or unethical behavior, prohibit bribery and corruption, promote equal employment opportunities, forbid undisclosed outside employment, prevent anti-competitive/monopolistic practices and insider trading, and maintain workplace safety and health through robust supervision and reporting mechanisms. These codes are signed by all directors, supervisors, managers, and employees of the Group at the end of each fiscal year or upon the appointment to a new position. In 2025, a total of 502 directors and managers and 10,006 employees across the Group signed the codes, achieving a 100% completion rate. Our subsidiary, First Bank, also developed its own specific Codes of Conduct for directors, managers, and employees, referencing the Group's standards and its internal rules and regulations. These codes have been translated into three languages (English, Vietnamese, and Cambodian) to ensure that locally hired staff at overseas branches fully understand their substance, thereby actively mitigating the risk of misconduct. A total of 508 signatories were collected, also reaching a 100% completion rate.

4.7 The Number Of Full-time Non-Managerial Employees, The Average And Median Salaries, And The Differences Compared To The Previous Year Are As Follows:

Unit: NT$ thousand

	2024	2025	Growth Rate (%)
Number of non-managerial full-time employees	8,543	8,498	-0.53
Average compensation of non-managerial full-time employees	1,539	1,620	5.26
Median compensation of non-managerial full-time employees	1,402	1,473	5.06

4.8 Information Systems And Equipment

4.8.1 IT Strategy And Development Plans

To enhance the Company's IT strategy and development plans and to supervise subsidiaries in aligning with the Group's IT evolution, thereby effectively improving operational performance, an IT Development Committee has been established. Its primary responsibilities include:

Review of the Group's IT development strategies.
Review of the Group's IT architecture.
Review of the Group's information security regulations.
Planning for the integration of Group-wide IT resources.
Review and performance evaluation of subsidiaries' annual IT development and investment plans.
Follow-up and review of the Group's material unexpected IT incidents.
Coordination of other IT management matters between the Company and its subsidiaries.

4.8.2 Configuration And Maintenance Plans For Information System Hardware And Software

The Company is equipped with IT hardware including PCs, laptops, printers, and servers for office use. To meet the demands of digital financial services and provide an optimal visual experience across devices, the Company's official website utilizes Responsive Web Design (RWD) technology. Additionally, to support departmental operations, application systems have been implemented for HR and payroll, accounting and finance, online education, related party queries, electronic official document, and compliance management. Dedicated personnel are assigned to maintain these systems to ensure stable operations.

4.8.3 Future Development Or Procurement Plans For Information System Hardware And Software

Group subsidiaries have incorporated digital transformation business development and information security strategies into their key annual development plans.
To enhance information system performance and reliability, the Company plans to upgrade and replace virtualization and backup servers, video conferencing equipment, and network connectivity devices.
To support the digitalization of business operations, plans are underway to optimize and upgrade systems including the Internet-based reporting management platform, the intelligent compliance management system, and the electronic official document system.

To advance our digital transformation strategy and foster a collaborative workspace, the Company plans to implement the M365 cloud office platform and Copilot Generative AI tools for Microsoft 365 enterprise version. These initiatives aim to optimize operational efficiency and bolster digital competitiveness.

4.8.4 Emergency Contingency And Security Protection Measures

The Company has established an automated data backup mechanism. In addition to on-site backups, data is synchronized daily to an off-site backup facility located at the First Bank IT Building. Furthermore, data recovery drills are conducted regularly to ensure business continuity.
Major subsidiaries have established their own backup mechanisms. Specifically, First Bank's off-site disaster recovery center is located in Zhongli, Taoyuan; First Securities has established an off-site backup server room in Banqiao, New Taipei City; First Life Insurance has its off-site facility in Zhubei, Hsinchu; and First Securities Investment Trust outsources its off-site backup work to professional service providers.
To strengthen the security of endpoint devices and external-service websites, the Company has implemented protection mechanisms such as "Endpoint Detection and Response (EDR)", "web isolation systems", and "file integrity monitoring". Additionally, all PCs across the Group have implemented the government configuration baseline (GCB) to establish consistent security configurations and bolster operating system security.
In addition to deploying firewalls, intrusion prevention systems, antivirus software, and network monitoring equipment, the Group companies commission professional cyber security firms annually to perform vulnerability scans and penetration testing. To mitigate the risk of service disruptions caused by distributed denial of service (DDoS) attacks, all Group companies have implemented or planned DDoS defense mechanisms for their external service websites.
To enhance the detection and protection against fraudulent websites and mobile apps, the Group continues to utilize Anti-phishing and anti-rogue mobile app protection services.
In 2025, the Company conducted a "cyber security red team exercise" to verify the security of the network environment and application systems, the effectiveness of defensive measures, and the responsiveness of security monitoring and incident response times.

4.9 Cyber Security Management

4.9.1 Cyber Security Risk Management Framework

The Company has appointed a Chief Cyber Security Officer, a position concurrently held by an Executive Vice President, who is responsible for overseeing the implementation of information security policies and the allocation of resources. A dedicated Cyber Security Unit has been established, staffed with specialist personnel responsible for the planning, monitoring, and execution of the cyber security management work. Furthermore, the IT Development Committee has been established, chaired by the Company's President. Committee members include the presidents of all subsidiaries, the Company's

Executive Vice Presidents, the Head of the Company's Information Technology Division, and the Executive Vice Presidents in charge of IT operations at each subsidiary. In 2025, the IT Development Committee convened twice to deliberate on Group-wide cyber security issues and strengthen the Group's overall cyber security risk management.

In accordance with regulatory requirements, each subsidiary appoints a Chief Information Security Officer, allocates appropriate human resources, and establishes relevant management committees based on its operational scale or specific conditions to strengthen its cyber security risk management. Currently, First Bank and First Securities have appointed Chief Information Security Officer.

4.9.2 Cyber Security Policy

To ensure the security of information systems, equipment, networks, and data, and to maintain business continuity, the Group has established the "Information Management and Cyber Security Policy of First Financial Holding" and the "Rules Governing Information Security Management for First Financial Holding and its Subsidiaries." These policies require all subsidiaries to conduct information security risk assessments in accordance with relevant laws, regulations and their specific business characteristics. Appropriate and sufficient security measures must be implemented to ensure the security of information throughout the processes of collection, processing, transmission, storage, and distribution.

4.9.3 Specific Management Plan And Resources Allocated To Cyber Security Management

To strengthen our response mechanisms for major cyber security incidents and effectively mitigate their impact, the Group has established a "computer security incident response team". We have also formulated the "Key Points for the Establishment of the Computer Security Incident Response Team" and the "Operating Rules for Cyber Security Incident Reporting" for all Group companies to follow. Furthermore, to enhance intelligence sharing and align with joint defense policies, the Company and its major subsidiaries have joined the Financial Information Sharing and Analysis Center (F-ISAC). To also bolster defense speed and capabilities through joint mechanisms, the Group signed a "Memorandum of Understanding on National Cyber Security Joint Defense and Intelligence Sharing" with the Investigation Bureau of the Ministry of Justice on July 28, 2025. This collaboration aims to achieve early warning, emergency response, and business continuity.

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The Company conducts 3 hours of regular cyber security training annually and provides irregular training courses for sharing across the Group companies. In 2025, the Company held a total of 15 hours of cyber security educational training. To prevent malware from infiltrating our systems via social engineering, each Group company conducts annual cyber security and social engineering prevention training for all employees. Additionally, quarterly email social engineering drills are performed, tracking metrics such as link clicks rates, attachment openings rates, receipt transmissions, email opens, and phishing success rates. Employees who do not pass these drills are required to undergo additional education and awareness training.

To establish a robust risk management framework and ensure the confidentiality, integrity, and availability of customer information and operations, major subsidiaries including First Bank, First Securities, First Life Insurance, and First Securities Investment Trust have established information security policies and obtained ISO 27001 international certification. They will continue to undergo regular "Information Security Management System (ISMS)" reviews.

(Note) ISO 27001 Certification Versions and Validity Periods:
- First Bank: ISO 27001:2022;
- Validity: 2024/08/01 – 2027/07/31
- First Securities: ISO 27001:2022;
- Validity: 2025/12/01 – 2028/11/30
- First Life Insurance: ISO 27001:2022;
- Validity: 2024/08/01 – 2027/07/31
- First Securities Investment Trust: ISO 27001:2022;
- Validity: 2025/07/04 – 2028/07/03

In 2025, First Bank received the "2024 F-ISAC Member Intelligence Sharing Excellence Award", recognized by the Financial Information Sharing and Analysis Center (F-ISAC).

4.9.4 Losses, Potential Impacts, And Countermeasures Due To Major Cyber Security Incidents During The Most Recent Year And Up To The Publication Date Of This Annual Report; If Reasonable Estimates Cannot Be Made, Explain The Facts Why.

From January 2025 up to the publication date of this annual report, on January 20, 2025, the Group's subsidiary First Securities experienced an issue where customers' pre-ordered Hong Kong stock trades were rejected via the sub-brokerage platform. This was caused by a system anomaly at Phillip Securities, the executing broker for Hong Kong stocks. Investigations confirmed that First Securities' own systems and network connections were operating normally; the rejection messages were verified by Phillip Securities as a failure within their own system. Phillip Securities implemented emergency repairs, and services for affected customers have since returned to normal with no damage to customer interests. To improve service quality and protect investors, Phillip Securities has instructed its vendors to optimize failover and recovery functions. While this incident was not originally classified as a major cybersecurity event, the Taiwan Stock Exchange notified the company that more than three securities firms were affected. Consequently, the event met the criteria defined in the "Procedures for Reporting the Scope of Major Cybersecurity Incidents by Securities Firms and Other Compliance Matters". In response,

the company has completed the formal reporting process and adjusted the incident's severity level accordingly.

4.10 Labor-Management Relations

4.10.1 Information On Labor-Management Relations

I. Employee Benefit Programs and Their Implementation

(1) Promoting Work-Life Balance

To create a workplace that fosters happiness and well-being, the Company continues to strengthen family-friendly policies that encourage employees to start families and raise the next generation. The Company and First Bank provide a marriage allowance of NT$30,000. In terms of childbirth subsidies, the Company, First Bank, First Securities, First Life, and First Financial AMC provide NT$100,000 for the first child and NT$150,000 for the second. Additionally, starting in April 2025, an enhanced benefit of NT$250,000 per child has been introduced for the third child onwards. First Securities Investment Trust and First Consulting also adopted this benefit in January 2026. The Company, First Bank, and First Securities also provide a maternity transportation subsidy of NT$10,000 and educational grants for employees' children; lactation rooms are available, flexible working hours can be applied for and corporate-partnered childcare services are provided. We continue to implement the "maternal health protection program" to ensure workplace care for expectant and nursing mothers. Our leave policies exceed statutory requirements, including maternity leave, prenatal check-up leave, paternity and prenatal escort leave, family care leave, bed rest leave, and miscarriage leave. A critical illness care mechanism has also been established to assist employees in balancing work and family care responsibilities. Moreover, a "long-term consecutive leave" system is in place; in 2025, employees who took 7 to 14 consecutive days of leave were granted a travel subsidy ranging from NT$6,000 to NT$11,000, encouraging them to spend time with their families and maintain a healthy work-life balance.

(2) Comprehensive Insurance Programs

In addition to the mandatory labor insurance and national health insurance required by law, the Company, First Bank, and First Financial AMC sponsor employees in enrolling in group insurance at preferential rates on a self-pay basis. These plans, including accident insurance, injury insurance, daily hospital room and board, and cancer health insurance, etc., are open to employees, their dependents, and retirees. First Bank personnel stationed overseas are not only covered by local group medical insurance but are also eligible to join International SOS (SOS), with the company subsidizing 50% of the costs, to address emergency medical and rescue needs. First Securities, First Securities Investment Trust, and First Life also provide group insurance coverage for their employees.

(3) Health Care and Nutritional Management

The First Financial Holding headquarters features an employee cafeteria where nutritionists design calorie-controlled menus providing fresh, healthy, and affordable meals to safeguard employees' dietary health. Additionally, the Company has appointed on-site physicians to provide medical services at the headquarters 6 to 7 times per month, allowing employees to receive professional medical consultations. The periodic health examinations provided every two years exceed statutory requirements; department heads are granted annual official leave

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for health check-ups, and additional screening items are included as needed to assist in early disease detection and timely treatment. In 2025, all Group companies help employees maintain their physical and mental well-being through commissioning the “Teacher Chang Foundation” to provide employee assistance programs for psychological counseling and arranging free workplace influenza vaccinations at the headquarters.

(4) Career Development:
Group companies provide on-the-job training, subsidies for continuing education during off-hours, and incentives for obtaining professional certifications. Employees are encouraged to actively acquire specialized financial licenses and a job rotation system is implemented to help staff gain diverse practical experience. This comprehensive and multi-faceted training system fosters long-term career development and enhances employee organizational cohesion.

(5) Sports and Cultural Activities:
The Group has established various cultural, recreational, and sports clubs, and subsidizes venue rental fees for employees across different counties and cities. We organize employee birthday celebrations, family days, and various athletic and cultural events. Additionally, annual subsidies are provided for festive bonuses and year-end parties.

(6) Employee Savings/Stock Ownership Trusts and Group Annuity Insurance:
First Financial Holding retains talent by securing their future, encouraging employees to engage in long-term savings for their retirement. Following First Bank’s “Employee Savings and Employee Stock Ownership Trust” program launched in 2019, which allows permanent employees with over six months of tenure to voluntarily participate, all Group companies have fully implemented employee stock ownership trust programs since 2024. Under this scheme, the company provides a fixed monthly matching contribution for employees to invest in and long-term hold shares of First Financial Holding, thereby strengthening their sense of belonging. First Life also sets aside monthly retention benefit funds for its staff, which can be used to purchase group annuity insurance based on employee preference.

II. Retirement System and its Implementation
All Group companies have established Labor Pension Reserve Supervision Committees in accordance with the “Labor Standards Act”, the “Labor Pension Act”, and relevant internal and external rules and regulations. These committees oversee the appropriation, contribution, and payment of labor pension reserves. There have been no instances of insufficient balances in the dedicated labor pension reserve accounts, demonstrating a robust and well-established retirement system.

III. Agreements Between Labor and Management
To foster labor-management harmony and enhance employee well-being, all Group companies have established diverse and confidential communication channels. Labor-Management Committees, composed of an equal number of representatives from both sides, convene regularly to propose improvements to labor conditions and welfare based on various labor-related issues. To uphold employees’ freedom of association, First Bank signed its fifth Collective Bargaining Agreement at the end of 2023. This agreement covers union activities, recruitment, transfers, dismissal, working hours, holidays, leaves and regular leaves, compensation, benefits, occupational safety and health, occupational accident compensation, and retirement and pension benefits and more. The Collective Bargaining Agreement includes leave policies, retirement systems, and profit-sharing clauses that

exceed statutory labor requirements. Crucially, the Collective Bargaining Agreement stipulates that in the event of significant operational changes, such as mergers and acquisitions, reorganizations, transfers, or spin-offs, the process must remain transparent and any major decision must be communicated to the union and employees immediately following labor-management meetings. Currently, approximately 95% of First Bank's total workforce is covered by the Collective Bargaining Agreement. Besides, both First Securities and First Financial AMC signed their second Collective Bargaining Agreements at the end of 2024, which also include provisions protecting labor rights during significant operational changes; the coverage rates for both companies are approximately 61% and 57%, respectively. At present, there are no significant outstanding labor disputes between managements and labors.

IV. Measures for The Protection of Employee Rights and Benefits

Rules managing personnel across all Group companies are highly transparent. Each company has established a Personnel Evaluation Committee to deliberate on significant employee rewards and disciplinary actions. For disciplinary cases, the individual under review has the right to submit a written defense and attend committee meetings for inquiry and employees may file appeals through the procedures outlined in the "Labor Grievance Notice". To ensure a workplace free from harassment, the Group has established and publicly disclosed policies for sexual harassment prevention, complaints, and disciplinary measures in accordance with the regulations. All issues related to employee rights can be effectively resolved through mechanisms such as "Labor-Management Committees", "Personnel Evaluation Committees", and established grievance communication channels.

V. Average Employee Salary Adjustments:

2025	Non-managers	Managers	All Employees
Average Salary Adjustment Rate	5.57%	2.40%	4.97%

4.10.2 Losses Incurred Due To Labor Disputes During The Most Recent Year And Up To The Publication Date Of This Annual Report, Including Estimated Current And Potential Losses And Countermeasures.

On August 20, 2025, the Labor Affairs Bureau of Taichung City Government issued letter Fu-Shou-Lao-Dong-Zi No. 1140244865, stating that First Securities failed to grant ordinary sick leave in accordance with regulations, thereby violating Article 43 of the Labor Standards Act. An administrative fine of NT$20,000 was imposed.
On August 15, 2025, the Labor Affairs Bureau of Taichung City Government issued letter Fu-Shou-Lao-Dong-Zi No. 11401397942, stating that First Securities failed to take immediate and effective corrective and remedial measures upon becoming aware of a sexual harassment incident, thereby violating Paragraph 2, Article 13 of the Gender Equality in Employment Act. An administrative fine of NT$50,000 was imposed.

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4.10.3 Implementation Status Of Measures For Employee Work Environment And Personal Safety Protection

I. Execution of Occupational Safety and Health Management and Educational Training

To safeguard employee safety and health and implement robust OHS management, the Company has established an “Occupational Safety and Health Management Plan” and “Safety and Health Work Rules,” both of which have been submitted to and approved by the competent authorities. An Occupational Safety and Health Committee has been set up to oversee employee health and workplace safety issues. Furthermore, safety and health education and training are arranged for both new hires and existing employees to enhance their awareness of OHS and strengthen workplace safety and hygiene management.

II. Regular Implementation of Security Inspections and Emergency Response Drills

Each business unit of First Bank conducts self-defense fire drills once every six months. Additionally, the Financial Holding Headquarter is equipped with a civil defense corps and emergency response SOP to ensure the safety of personnel and property. In 2025, one annual training session for the civil defense corps was conducted.

III. Promoting a Friendly Workplace

Smoke-free workplace policies and health promotion measures are actively promoted to provide a safe and healthy work environment. The Financial Holding Headquarter has adopted the “ISO 45001 Occupational Health and Safety Management System” and obtained certification from BSI. A total of 122 First Bank locations have received healthy workplace certification. In alignment with the Ministry of Health and Welfare’s transition from the “healthy workplace certification system” to the “workplace health promotion self-certification” mechanism starting 2025, the financial holding company headquarter and 65 First Bank locations have obtained the qualification seals. To protect the lives of employees and customers, 61 First Bank locations have been equipped with Automated External Defibrillators (AEDs) and earned “AED-Friendly Workplace Certification” as of the end of 2025.

4.11 Major Agreements

Contract Nature	Contracting Parties	Contract Period	Key Contents
Directors, supervisors and officers liability insurance	The Company and AIG Asia Pacific Insurance Pte. Ltd. Taiwan Branch, Chubb Tempest Reinsurance Ltd., Taiwan Branch and MSIG Mingtai Insurance Co., Ltd.	From 0:00 AM on May 24, 2025, to 0:00 AM May 24, 2026	1. Directors, supervisors and officers liability insurance
2. Company indemnity insurance
3. Company securities liability insurance
4. Employee practices liability insurance	Exclusion clauses include: professional liabilities of financial institutions, intellectual property, investment banking professional liabilities, claims arising from known circumstances, major shareholders, payments and gifts, product liability, money laundering, etc.

4.12 Key Performance Indicators Of The Group

Key Indicators Prepared Under IFRS

Unit: %

Indicators	2021	2022	2023	2024	2025
Return on Assets
First Financial Holding (Consolidated)	0.55	0.52	0.52	0.56	0.55
First Bank	0.50	0.53	0.52	0.54	0.55
First Securities	4.18	1.19	3.01	2.86	2.22
First Securities Investment Trust	8.90	6.39	9.56	11.66	13.33
First Financial AMC	3.40	3.30	3.11	2.94	2.93
First Venture Capital	5.77	3.59	5.04	11.49	13.73
First Consulting	9.49	9.24	10.13	9.94	12.54
First Life Insurance	0.82	0.08	0.50	0.62	0.65
Return on Equity
First Financial Holding (Consolidated)	8.86	9.18	9.51	9.82	9.61
First Bank	7.97	8.95	8.89	8.99	8.79
First Securities	19.79	5.22	12.26	13.11	11.53
First Securities Investment Trust	10.23	7.29	10.94	13.47	15.50
First Financial AMC	7.94	8.71	9.13	9.49	10.59
First Venture Capital	5.78	3.60	5.06	11.56	14.15
First Consulting	16.32	15.55	16.69	15.68	19.51
First Life Insurance	13.85	1.91	12.92	10.20	9.28
Capital Adequacy Ratio
The Group	130.35	125.16	130.05	126.05	130.62
First Bank	14.21	13.76	14.56	14.45	15.44
First Securities	369.35	421.35	345.70	357.84	306.40
First Life Insurance	376.53	608.55	470.61	423.99	427.83
Double Leverage Ratio
First Financial Holding	108.75	110.38	110.73	111.97	114.32
NPL Ratio
First Bank	0.20	0.18	0.17	0.17	0.17
Coverage Ratio
First Bank	620.31	709.24	826.96	819.77	862.04

Note 1: The Company has adopted International Financial Reporting Standards since 2013
Note 2: The calculation formulas of the above key indicators are as follows

Return on Assets = Net Income / Average Total Assets
Return on Equity = Net Income / Average Net Equity
Capital Adequacy Ratio

The Group = Group Net Eligible Capital / Group Statutory Capital Requirement

Bank Subsidiary = Total Regulatory Capital / Total Risk-Weighted Assets

Securities Subsidiary = Net Eligible Regulatory Capital / Overall Risk Equivalent

Life Insurance Subsidiary = Total Regulatory Capital / Risk-based Capital

Double Leverage Ratio = Equity investments made under Paragraph 2, Article 36 and Article 37 of the Financial Holding Company Act / Net Equity
NPL Ratio = Total Non-Performing Loans of Bank Subsidiary / Total Loans
Coverage Ratio = Total Allowance for Bad Debts of Bank Subsidiary / Total Non-Performing Loans

V. Management Discussion And Analysis Of Financial Position, Financial Performance And Risk Management Items

5.1 Financial Position: Significant Changes In Assets, Liabilities, And Equity During The Most Recent Two Years, Including Major Causes, Impacts, And Future Countermeasures Where Significant

Consolidated Financial Position Analysis for the Most Recent Two Years

Unit: NT$ thousand

Year Item	Year 2025	2024	Increase (Decrease)
			Amount	%
Cash and cash equivalents, due from banks and call loans to banks	408,389,857	366,799,739	41,590,118	11.3
Financial assets measured at fair value through profit or loss	226,713,902	195,475,470	31,238,432	16.0
Financial assets measured at fair value through other comprehensive income	439,440,966	412,224,862	27,216,104	6.6
Investments in debt instruments measured at amortized cost	1,002,220,028	942,310,680	59,909,348	6.4
Bills & bonds purchased under resell agreements	3,444,800	2,622,080	822,720	31.4
Receivables - net	90,627,921	76,803,713	13,824,208	18.0
Current tax assets	1,123,942	1,054,164	69,778	6.6
Discounts and loans - net	2,793,405,592	2,630,263,569	163,142,023	6.2
Investments accounted for using equity method - net	3,424,379	3,463,952	(39,573)	(1.1)
Other financial assets - net	16,807,530	17,452,849	(645,319)	(3.7)
Property and equipment - net	27,985,152	27,730,142	255,010	0.9
Right-of-use asset - net	2,698,355	2,708,756	(10,401)	(0.4)
Other assets - net	25,471,289	25,512,349	(41,060)	(0.2)
Total Assets	5,041,753,713	4,704,422,325	337,331,388	7.2
Due to the Central Bank & financial institutions	390,441,307	315,267,631	75,173,676	23.8
Financial liabilities measured at fair value through profit or loss	12,249,129	13,014,872	(765,743)	(5.9)
Bills & bonds sold under repurchase agreements	16,900,915	33,384,179	(16,483,264)	(49.4)
Payables	59,060,547	54,422,602	4,637,945	8.5
Current tax liabilities	4,930,211	4,111,382	818,829	19.9
Deposits and remittance	3,954,478,812	3,711,088,087	243,390,725	6.6

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Item	2025	2024	Increase (Decrease)
			Amount	%
Bonds payable	75,800,000	75,650,000	150,000	0.2
Other loans	380,000	6,470,000	(6,090,000)	(94.1)
Provisions	79,489,318	76,034,328	3,454,990	4.5
Other financial liabilities	135,561,895	123,204,834	12,357,061	10.0
Lease liabilities	2,585,314	2,569,824	15,490	0.6
Other liabilities	17,509,407	21,318,679	(3,809,272)	(17.9)
Total Liabilities	4,749,386,855	4,436,536,418	312,850,437	7.1
Share capital	143,794,686	140,287,499	3,507,187	2.5
Capital surplus	26,107,246	26,107,246	0	0.0
Retained earnings	89,250,110	78,952,298	10,297,812	13.0
Other equity interest	33,214,816	22,538,864	10,675,952	47.4
Total Equity	292,366,858	267,885,907	24,480,951	9.1

Explanation of material item variances:
1. The increase of bills and bonds purchased under resale agreements was primarily driven by a higher volume of financial bonds purchased under resell agreements.
2. The increase of deposits from the Central Bank and other banks was mainly due to an expansion in interbank call loans.
3. The decrease of securities sold under repurchase agreements was largely attributable to a reduction in financial bonds sold under repurchase agreements.
4. The decrease of other borrowings resulted mostly from a reduction in unsecured borrowings.
5. The increase of other equity was predominantly due to valuation gains on financial assets measured at fair value through other comprehensive income.

5.2 Financial Performance: Significant Changes In Net Revenue And Pre-tax Profit During The Most Recent Two Years, Including Major Causes, Anticipated Operational Objectives And Their Bases, Potential Impacts On The Financial Holding Company's Future Business And Finance, And Corresponding Countermeasures

Consolidated Financial Performance Analysis for the Most Recent Two Years

Unit: NT$ thousand

Item	2025	2024	Increase (Decrease)
			Amount	%
Net interest revenue	34,680,709	31,234,313	3,446,396	11.0
Net revenue other than interest	42,913,039	40,885,162	2,027,877	5.0
Net Revenue	77,593,748	72,119,475	5,474,273	7.6
Bad debts expense and guarantee liability provisions	6,382,002	5,763,335	618,667	10.7
Net change in provisions for insurance liabilities	4,055,892	2,613,608	1,442,284	55.2
Operating expenses	33,706,716	32,504,823	1,201,893	3.7
Profit from continuing operations before tax	33,449,138	31,237,709	2,211,429	7.1
Income tax expense	6,516,290	5,878,259	638,031	10.9

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Item	2025	2024	Increase (Decrease)
			Amount	%
Profit	26,932,848	25,359,450	1,573,398	6.2
Other comprehensive Income	11,136,403	5,659,154	5,477,249	96.8
Total comprehensive Income	38,069,251	31,018,604	7,050,647	22.7

Explanation of material item variances:
1. The increase of net change in provision for insurance liabilities was primarily driven by the net change in insurance reserve.
2. The increase of other comprehensive income for the current period was mainly due to the valuation gains on financial assets measured at fair value through other comprehensive income.

5.3 Analysis Of Cash Flow Changes During The Most Recent Year, Improvement Plans For Liquidity Shortages, And Cash Liquidity Analysis For The Coming Year

5.3.1 Analysis Of Changes In Consolidated Cash Flows For the Most Recent Two Years

Unit: %

Item	2025	2024	Percentage Increase (Decrease) %
Cashflowratio	12.0	-	-
Cashflowadequacyratio	270.7	175.5	54.2
Cashflowsatisfactionratio	3,129.6	-	-

The increase in the cash flow adequacy ratio was primarily due to the fact that the net cash flow from operating activities over the past five years exceeded the sum of capital expenditures and dividend payments during the same period.

5.3.2 Cash Liquidity Analysis For The Coming Year

I. Analysis of Consolidated Cash Liquidity for the Coming Year:

Unit: NT$ thousand

Beginning Balance of Cash and Cash Equivalents	Projected Annual Net Cash Flow from Operating Activities	Projected Annual Cash Outflow	Projected Cash Surplus (Deficit)	Contingency Plans for Projected Cash Shortfall
				Investing Activities	Financing Activities
293,068,300	-9,623,927	-11,990,852	271,453,521	-	-

(1) Operating Activities: Refers to the projected net cash flow from operating activities during 2026.
(2) Investing Activities: Refers to the projected net cash flow from the acquisition of property and equipment, and reinvestments during 2026.
(3) Financing Activities: Refers to the projected net cash flow from the distribution of cash dividends and capital-raising activities in 2026.

II. Remedial Measures for Anticipated Cash Shortfall and Liquidity Analysis: None.

5.4 Impact Of Significant Capital Expenditure On Finance And Business During The Most Recent Year: None

5.5 Reinvestment Policy During The Most Recent Year, Its Main Causes For Gains Or Losses, Improvement Plans, And Investment Plans For The Coming Year.

5.5.1 Reinvestment Policy For The Most Recent Year

The Group focuses on banking as its core business pillar, complemented by the core operations of its subsidiaries and affiliates in securities, investment trust, insurance, leasing, and more. We aim to solidify profit sources across corporate banking, consumer banking, foreign exchange, financial market trading, financial leasing, and wealth management. Our domestic merger and acquisition strategy is centered on the Group as the primary entity. Through a “Growth via Acquisition” strategy, we aim to expand our operational scale and evolve into a regional financial institution. Our goal is to become a leading domestic financial group characterized by top-ranking market share, stable profitability, innovative product offerings, comprehensive overseas presence, and integrity in corporate governance, etc. For overseas expansion, merger and acquisition plans, First Bank serves as the primary entity. We implement differentiated regional management and dynamically adjust operational models and resource allocation to simultaneously grow volume and profit, thereby enhancing overall operational performance.

5.5.2 Main Causes Of Gains Or Losses And Improvement Plans

Reflecting on the Group’s performance in 2025, we have dedicated ourselves to restructuring the profit mix, strengthening digital development, and staying attuned to financial market trends. By integrating information, business, and channels across subsidiaries, we leverage the Group’s collective strength to create synergistic value. Furthermore, we have embedded ESG practices into our core operations, focusing on green finance opportunities. We collaborate with our supply chain, clients, and shareholders to accelerate sustainable transformation and build a sustainable financial ecosystem. Based on the afore-mentioned performance and results of our subsidiaries, the key factors are summarized below:

I. In 2025, the bank subsidiary reported a pre-tax net profit of NT$31.518 billion, an increase of NT$2.275 billion (+7.78%) compared to 2024, reaching another record high. Pre-tax EPS was NT$2.57, while ROA and ROE stood at 0.67% and 10.79%, respectively. Alongside steady growth in business scale and profitability, asset quality continued to improve. As of the end of 2025, the NPL ratio was 0.17% and the allowance coverage ratio reached 862.04%, reflecting the bank’s commitment to robust risk management. As one of the Domestic Systemically Important Banks (D-SIBs), its Capital Adequacy Ratio (CAR) and Tier 1 Capital Ratio were 15.44% and 13.21%, respectively, as of December. The bank has met D-SIBs requirements.

II. The securities subsidiary reported a pre-tax net profit of NT$1.329 billion in 2025, a decrease of NT$35 million (-2.54%) compared to 2024. This was primarily due to severe market volatility and shrinking

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trading volumes in the first four months. In the second half of the year, capital became concentrated in specific large-cap stocks, affecting proprietary trading and underwriting performance. In addition, as the trading volume share of the three major institutional investors (including foreign investors) continued to rise, retail channel business struggled to benefit from the increased average trading volume in Q3 and Q4, resulting in a profit decline across the three core businesses. Pre-tax EPS was NT$1.98, with ROA and ROE at 2.66% and 13.8%, respectively. In terms of business development in recent years, the cash equities business has focused on expanding institutional and high-net-worth client bases, promoting dollar-cost averaging and odd-lot trading, boosting performance at brokerage accounts, and reactivating dormant accounts. Simultaneously, the company has promoted niche services such as sub-brokerage, securities lending, and unrestricted-purpose loans, while continuously optimizing the account opening process and trading platform to build a youthful brand images. With respect to underwriting business, the company leveraged Group resources, customer bases, and external partnerships to expand its mandates as lead or co-lead manager for IPO and SPO projects. The firm also actively participated in market making for the Emerging Stock Market to enhance position returns. In 2025, the company ranked first among state-owned securities firms for IPO lead mandates and Emerging Stock Market sponsorships. In the asset management business, the company continued to strengthen risk management while balancing capital gains with dividend and interest income, utilizing strategic trading to enhance overall investment yields.

III. The insurance subsidiary reported a pre-tax net profit of NT$594 million in 2025, an increase of NT$108 million from 2024. Pre-tax EPS was NT$0.98, and ROA and ROE were 0.61% and 8.68%, respectively. The 22% year-over-year growth in pre-tax profit for 2025 was primarily driven by increased investment returns from dividends and capital gains, which successfully offset exchange rate fluctuations.

IV. First Securities Investment Trust reported a pre-tax net profit of NT$221 million in 2025, an increase of NT$37 million (+20.11%) from 2024. Pre-tax EPS was NT$3.69, while ROA and ROE were 16.63% and 19.35%, respectively. According to statistics from the Securities Trust & Consulting Association of R.O.C., total asset under management reached NT$192.4 billion, a growth of NT$50.5 billion (+35.59%). The growth in asset under management was primarily driven by the successful expansion of publicly offered funds and discretionary mandates. The scale of publicly offered funds reached NT$165.0 billion, an increase of NT$39.7 billion (+31.68%) compared to 2024, while discretionary mandates totaled NT$24.4 billion, growing by NT$10.5 billion (+75.54%). Looking ahead, the company will continue to strengthen synergy with Group distribution channels and deepen operational interactions. We will also actively explore cooperation opportunities with key external channels, expand our presence in brokerage network, and enhance engagement with our own client base. Simultaneously, resources will be focused on promoting flagship funds and ETFs, utilizing digital marketing tools to build diverse promotional channels. These efforts aim to increase product visibility, expand the potential customer base, and drive overall business momentum. Furthermore, the Company will actively promote business diversification by advancing private equity operations through reinvestments. In alignment with government policy and market opportunities, we will provide alternative and diversified financial products to meet investors multifaceted asset allocation needs.

V. The financial asset management subsidiary reported a pre-tax net profit of NT$240 million, an increase of NT$23 million (+10.75%) from 2024. Compared to 2024, Net operating revenue grew to NT$579 million (+34.95%), mainly due to a NT$134 million increase in non-performing loan servicing and disposal of non-performing loan. Pre-tax EPS was NT$1.66, with ROA and ROE at 3.66% and 13.25%, respectively. Future plans include property acquisitions through foreclosures and active participation in urban renewal projects to raise profitability.

VI. The venture capital subsidiary reported operating revenue of NT$337 million and a pre-tax net profit of NT$302 million, an increase of 25.57% compared to 2024. This was driven by an active investment disposal strategy amid a buoyant capital market and higher valuation gains versus a year prior. Pre-tax EPS was NT$1.68, while ROA and ROE reached 13.96% and 14.38%, respectively.

VII. The financial consulting subsidiary reported operating revenue of approximately NT$44 million and a pre-tax net profit of NT$11 million, an increase of 25.21% from 2024. Pre-tax EPS was NT$5.51, with ROA and ROE at 15.88% and 24.72%, respectively. The company expects continued growth in management fees from its green energy funds.

5.5.3 Investment Plans For The Coming Year

The Group remains committed to a steady international development strategy and deepening our overseas footprint. With the bank as our core structure, we dynamically adjust global layout strategies and regional business directions in response to geopolitical and economic shifts. By establishing a dense global financial network across major international metropolises and hubs in Asia, the Americas, Europe, and Oceania, we capture regional growth opportunities and expand our capacity through “Global Cross-border Financing Services.” Simultaneously, we focus on the anchor businesses of each subsidiary, guiding them to utilize the Financial Holding Company’s resources. Through the Group’s integrated marketing platform, we implement the convergence of physical and digital channels to mobilize channel momentum, creating value through an operational model that pursues both scale and profitability.

5.6 Evaluation Of The Following Risk Management Items Based On Consolidated Financial And Business Status For The Most Recent Year And Up To The Publication Date Of This Annual Report

5.6.1 Risk Management Framework And Policies Of The Financial Holding Company And Its Subsidiaries

I. Risk Management Framework

(1) The Company

The Board of Directors is the ultimate decision-making body for the Group’s overall risk management. Under its authority, a “Risk Management Committee” has been established, chaired by the Chairperson of the Board, with the President, Executive Vice Presidents, and the Chairperson and Presidents of subsidiaries serving as committee members. In accordance with the “Risk Management Policies and Guidelines” approved by the Board, the Risk Management Committee established the Group’s risk management system. It is responsible for supervising risk conditions across the Company and its subsidiaries, reviewing major risk limits, setting risk monitoring indicators, reporting risk assessment results to the Board regularly, and coordinating risk-related matters among subsidiaries. The Company’s Risk Management Division is responsible for the execution of all risk management policies.

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(2) First Bank

The Board of Directors is the highest level for risk approval and supervision. Under the Board, a "Risk Management Committee" is established to oversee the review, supervision, and reporting of bank-wide risk management activities, and to coordinate risk operations across departments. Independent of business units, the Risk Management Center is established to execute bank-wide risk management functions, with the President assisted by Executive Vice Presidents in overseeing these operations. The Center comprises the Risk Management Division, Credit Approval Division, Credit Analysis Division, Debt Management Division, and six Regional Risk Control Centers. Each division formulates risk management procedures and regulations based on its respective authorities, executing tasks within the risk management framework and reporting regularly to senior management and the Board. The Regional Risk Control Centers manage risk-related tasks within their authorized jurisdictions, including credit investigation, lending, collateral appraisal, and post-lending management.

(3) First Securities and First Securities Investment Trust

A "Risk Management Committee" is established under the Board of Directors to consolidate the review, supervision, and coordination of risk management activities. It sets authorized limits, risk limits, and monitoring indicators for various risks. Dedicated risk management units are responsible for the daily monitoring and reporting of business risks.

(4) First Life Insurance

A "Risk Management Committee" is established under the Board of Directors as the unit for risk oversight, reporting, and coordination. It implements risk management policies and supervises risks across business units to ensure they are controlled within a reasonable range. In addition to

daily risk identification and management by business units, a Risk Management Office has been established to support and review risk assessments, reports, and risk mitigation action plans, ensuring completeness and accuracy.

(5) Other subsidiaries

The Board of Directors serves as the highest authority for risk management. Depending on the nature of the business and organizational scale, these subsidiaries either establish a risk management team or designate dedicated personnel to handle risk management affairs.

II. Risk Management Policies

The Company has established comprehensive risk management policies to effectively identify, measure, monitor, and control various risks across the Company and its subsidiaries, keeping potential risks arising from business operations within acceptable levels. Furthermore, the Company has instituted Capital Adequacy Management Rules and Capital Adequacy Ratio Warning Threshold to ensure an optimal balance between risk and return while maintaining adequate capital across the Group.

5.6.2 Methods For Measuring And Controlling Risks, And Quantitative Information On Risk Exposures Of The Financial Holding Company And Its Subsidiaries

The Company has established maximum risk tolerance limits for Group-wide and subsidiary credit and investment activities to control large exposures. To maintain the Group's capital adequacy, warning thresholds for capital adequacy ratios have been set for subsidiaries based on their respective industries. Key monitoring indicators for major risks across subsidiaries, including credit risk, market risk, interest rate risk, liquidity risk, insurance risk, operational risk, and emerging risks, are reviewed regularly to ensure the rigorous execution of early warning and stop-loss mechanisms. Furthermore, an effective internal control system has been implemented to mitigate potential losses arising from operational risks.

Based on their specific business characteristics, each subsidiary has formulated its own risk control procedures for credit, market, interest rate, liquidity, insurance, operational, and other risks. These procedures encompass the establishment and implementation of authorization mechanisms, limit management, monitoring indicators, and reporting processes. Through continuous monitoring of these indicators and periodic self-assessments, the risk management functions are effectively operationalized. Additionally, the internal audit unit regularly inspects the execution of risk management to ensure the continued effectiveness of the risk control mechanisms.

The overall risk management operations of First Financial Holding Group can be categorized into three key aspects:

I. Decentralized Management

Regardless of their size, all subsidiaries within the First Financial Holding Group must adhere to the "Risk Management Policies and Guiding Principles for First Financial Holding and its Subsidiaries." Each subsidiary is required to establish effective and feasible risk management systems for risks arising from their operations to identify, measure, monitor, and control all types of risk exposures. The Board of Directors of each subsidiary serves as the highest decision-making body for risk control, while the risk management and internal audit departments ensure the effective operation of these systems.

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II. Centralized Monitoring

As the parent company of the Group, First Financial Holding monitors the quantitative and qualitative indicators of each subsidiary's risk management based on the materiality principle. This includes establishing reporting lines and maintaining records of meeting minutes, keeping of various risk management regulations and delegated authorization for limit management on file for reference, etc. The effectiveness of each subsidiary's risk management system is disclosed through monitoring indicators and the implementation of internal audits and controls. Any deviations are rectified promptly, and systems may be adjusted to align with the Group's overall strategic requirements.

III. Emphasis on Macroeconomic Trends

Given that domestic and international economic, financial, and industry trends are vital to the Group's business development and risk control, the Group places high value on research and information exchange. Group subsidiaries continuously monitor and communicate regarding macroeconomic trends, major industry dynamics, and financial conditions to proactively manage risks and capture business opportunities. Furthermore, at each meeting of the First Financial Holding Risk Management Committee, the "First Financial Group Macroeconomic and Industry Trend Analysis Report" is presented. This report provides in-depth analysis of future directions to serve as a strategic reference for senior management across the participating subsidiaries.

Potential Impacts and Mitigation for Emerging Risks of First Financial Group during 2026

Risk Description	Potential Impact	Mitigation Measures
Geoeconomic Confrontation
In recent years, driven by geopolitical and national security concerns, nations have increasingly instrumentalized economic measures, such as tariffs, export controls, investment screenings, and supply chain realignments, escalating global economic competition and confrontation. The ongoing trade and technological competition between the U.S. and China continues to intensify. Countries are strengthening their industrial autonomy through subsidies and supply chain localization policies, leading to the restructuring of global supply chains and the regionalization and fragmentation of the global economic system. This trend heightens uncertainty in international trade and financial markets, potentially impacting corporate investment decisions and the operating environment. The World Economic Forum’s “Global Risks Report 2026” also identifies “Geoeconomic Confrontation” as one of the most significant short-term global risks.	Credit Risk
Increased tariffs, export controls, and supply chain restructuring may adversely impact corporate operations and profitability, thereby weakening borrowers’ repayment capabilities and escalating default risks.

Market Risk
Trade policies and economic sanctions may trigger financial market volatility, leading to intensified fluctuations in interest rates, foreign exchange rates, and asset prices.

Liquidity Risk
Geopolitical conflicts or restrictive sanctions may disrupt cross-border capital flows and the operation of payment systems, increasing the pressure on liquidity management.

Business Risk
Supply chain realignments and industrial structural adjustments may raise corporate operating costs and heighten industry uncertainty.

Compliance Risk
As international sanctions and export controls become increasingly stringent, financial institutions must strengthen their sanctions screening and regulatory compliance management.

Reputation Risk
Involvement in sensitive transactions or dealings with sanctioned entities could undermine market trust and damage the financial institution’s brand image.

Fraud and Financial Crime Risk
Criminal syndicates may exploit investment opportunities or market volatility to conduct scams, such as fraudulent investment schemes, the establishment of mule accounts, or the illicit transfer of funds through financial instruments, increasing the risk of financial crime and loss of customer wealth. | Short-term:
1. Continually monitor the impact of geopolitical and supply chain shifts on borrowers during credit appraisal and post-loan management. Utilize early warning mechanisms and adjust credit terms to mitigate the risk of deteriorating credit quality.
2. Track global political and economic developments, trade policies, and supply chain changes. Leverage cross-departmental meetings and risk assessment frameworks to grasp external risks in real-time and adjust business strategies accordingly.
3. Periodically review investment portfolios and country exposures. Adjust asset allocation or implement hedging measures based on market conditions to reduce the impact of market volatility.
4. Maintain rigorous control over overseas branches and cross-border business exposures through country risk limits and early warning thresholds.
5. Integrate sanctions lists with transaction monitoring systems. Strengthen customer due diligence, suspicious transaction monitoring, and anti-fraud awareness to reduce sanctions non-compliance and financial crime risks.

In addition to the above, the following medium-to-long-term mitigation measures are also implemented:
1. Continuously track global dynamics, sovereign ratings, and country risk profiles. Dynamically adjust overseas exposure and cross-border business strategies through country risk limits, early warning threshold and periodic risk assessment mechanisms.
2. Regularly review credit exposure across industries and regions. Adjust lending strategies in response to global supply chain restructuring and industrial shifts, enhancing sector and client diversification to bolster portfolio resilience.
3. Develop geopolitical risk assessment models and scenario analysis tools. Incorporate factors such as political stability, sanctions risk, and supply chain resilience into risk evaluations to support lending, investment, and asset allocation decisions. |

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Risk Description	Potential Impact	Mitigation Measures
		4. Monitor global inflation, interest rate policies, and industry trends. Timely adjust investment portfolio structures and asset duration, while increasing allocations to liquid assets to minimize the impact of market volatility on investment positions.
5. Leverage FinTech and artificial intelligence to strengthen transaction monitoring, risk alerts, and fraud detection capabilities, thereby improving risk identification efficiency and reducing business and compliance risks.
6. Continually cultivate staff expertise in international finance and trade finance. Strengthen cooperation with international financial institutions and regulatory bodies to enhance overall risk management and information exchange capabilities.
Misinformation and Disinformation
With the rapid evolution of Generative Artificial Intelligence (GenAI) and digital social platforms, the scale of creation and dissemination of misinformation and disinformation continues to expand. Such inaccurate or manipulated content can spread swiftly through social media and digital platforms, skewing public perception of financial markets and institutions. This, in turn, may undermine market confidence and heighten volatility. Furthermore, GenAI and Deepfake technologies (Deepfake) make it increasingly difficult to distinguish authentic audio, imagery, and text from fabrications. This trend gives rise to risks such as identity theft, fraudulent instructions, and financial scams, posing significant potential impacts on a financial institution’s brand reputation, customer trust, and operational management.	Credit Risk
Inaccurate information or deepfake content may skew corporate credit assessments or financial judgments, leading to misinformed lending decisions and heightened credit risk.
Market Risk
Disinformation can impact investor sentiment and trigger abnormal asset price volatility, increasing the uncertainty of investment positions.
Liquidity Risk
The dissemination of false financial information regarding a financial institution through markets or social media may trigger rapid capital outflows or digital bank runs.
Business Risk
False information may interfere with operational judgments, investment decisions, or business promotion, thereby increasing business management risks.
Compliance Risk
As regulations regarding AI and digital information governance continue to evolve, financial institutions must allocate resources to ensure they meet up-to-date regulatory requirements.
Reputation Risk
If misinformation spreads through media or social platforms, it may severely damage the financial institution’s brand image and customer trust.	Short-term:
1. Enhance the ability to identify market information, media reports, and digital content. Establish multi-source cross-verification and rapid validation mechanisms to mitigate the risk of relying on misinformation or disinformation.
2. Continuously monitor media and social platforms. Upon detecting false content related to the Company, immediately issue clarifications and activate crisis management mechanisms to prevent the spread of incorrect information.
3. Implement information monitoring and analysis tools, and establish cross-departmental reporting and response workflows to quickly assess and address suspected fake news.
4. Establish identifiable official channels, including the official corporate website, dedicated short-code SMS, official domains, and real-name verified advertising, to help customers distinguish authentic information and reduce fraud risks.
5. Conduct training, social engineering drills, and cybersecurity awareness programs to improve staff proficiency in identifying risks associated with emerging technologies, generative AI, and deepfakes.
6. Strengthen financial fraud interception and customer protection through suspicious transaction monitoring, KYC outreach, and anti-fraud advocacy to reduce financial crime risks stemming from misinformation.

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Risk Description	Potential Impact	Mitigation Measures
	Information Security and Fraud Risk
As deepfake technology and digital fraud techniques become increasingly sophisticated, malicious actors may use forged audio, video, or websites to impersonate financial institutions or customers. These identity theft and scam attempts can lead to customer financial losses and erode public trust in digital financial services.	In addition to the above, the following medium-to-long-term mitigation measures are also implemented:
1. Continually improve corporate governance and the quality of information disclosure. Establish cross-departmental management and communication mechanisms to ensure the timeliness and accuracy of material information, reducing the impact of misinformation on operations and market confidence.
2. Incorporate misinformation and disinformation into the overall risk management framework. Use scenario analysis and stress testing to evaluate potential impacts on investor sentiment, customer behavior, and financial market volatility.
3. Refine monitoring, material information disclosure, and crisis management protocols. Utilize diverse communication channels to provide real-time responses to public concerns, mitigating the reputational impact of the spread of false information.
4. Strengthen cybersecurity and data protection through device management, access control, encrypted transmission, and security monitoring to reduce the risk of data breaches and impersonation.
5. Implement artificial Intelligence and data analytics to identify misinformation, Deepfake content, and suspicious network activities. Build a case database to enhance risk identification and response capabilities.
6. Cultivate a robust risk management culture by providing education on media literacy, cybersecurity defense, and fake news identification, enhancing the organization's overall resilience against emerging technology risks.

The risk control methods adopted by major subsidiaries are summarized below:

I. First Bank

(1) Credit Risk Management

A. Strategy, goals, policies, and processes for credit risk management

a. In accordance with the "Risk Management Policies and Guiding Principles for First Financial Holding and its Subsidiaries," the Bank establishes its risk management systems and policies based on the risk strategies and management guidelines approved by the Board of Directors. These policies comply with the Basel Accords and relevant laws and regulations of competent authorities. Factors such as economic cycles, loan portfolio composition, asset quality, and business expansion strategies are considered to ensure timely adjustments, which are then submitted to the Board of Directors or senior management for approval.

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b. To comply with the New Basel Accord and establish objective review standards, the Bank has progressively developed credit rating tools. These are integrated into the credit investigation and approval processes to measure risk, and are linked to post-lending management through early warning mechanisms, thereby establishing a comprehensive credit management workflow.

c. To control concentration risk, the Bank has established credit limit management mechanisms for conglomerates, industry sectors, countries, listed stocks as collateral, and real estate loans.

d. To ensure the effective operation of risk management processes, relevant internal audit and internal control systems have been established.

B. Organization and structure for credit risk management

a. The Board of Directors is the highest level of decision-making and supervision. Bank-wide risk management policies, systems, procedures, risk limits, authorities, measurement methods, evaluation procedures, and monitoring systems are all subject to the Board's oversight.

b. The Risk Management Committee, which reports to the Board, is responsible for integrating, reviewing, supervising, and reporting on bank-wide risk management matters and coordinating operations across departments.

c. Senior Management is responsible for overseeing the execution of risk management policies determined by the Board.

d. The Risk Management Center operates independently of business units to manage bank-wide risk. The President is assisted by Executive Vice Presidents in implementing bank-wide risk operations. The Center comprises the Risk Management Division, Credit Approval Division, Credit Analysis Division, Debt Management Division, and six Regional Risk Control Centers. Each division formulates operating procedures and regulations based on its respective authorities, reporting to senior management and the Board. The Regional Risk Control Centers manage credit investigation, approval, collateral appraisal, and post-lending management within their jurisdictions.

C. Scope and characteristics of credit risk reporting and measurement systems

a. To prevent excessive concentration and monitor credit rating migration of extended loans, the Bank complies with statutory limits for the same person, the same related person, and the same affiliated enterprise. Critical credit risk information, including the credit rating distribution of the loan portfolio, asset quality, NPL ratios, and concentration risks, is reported periodically to the Risk Management Committee or the Board of Directors.

b. The Bank has developed credit rating models for corporate loans, unsecured loans loans, mortgages, and credit cards, along with assessment tools for facility-specific risks. These tools are integrated into systems to quantify risk consistently and objectively, ensuring risk is controlled within the risk appetite.

D. Policies for credit risk hedging or mitigation, and strategies and processes for monitoring the continued effectiveness of hedging and risk mitigation tools

a. The Bank periodically monitors and reports on concentration risks across groups, industries, countries, listed stocks as collateral, and real estate loans. Risk limits are evaluated

and revised based on changes in the market environment, business complexity, and risk strategies to ensure the effectiveness of risk control.

b. Based on the borrower's creditworthiness or facility characteristics, appropriate collateral or guarantees are obtained to mitigate credit risk

E. Risk exposures and capital requirements after risk mitigation under the standardized approach for credit risk

Dec. 31, 2025
Unit: NT$ thousand

Exposed Risk Type	Exposure Amount After Risk Mitigation	Capital Requirements
Sovereigns	1,208,188,083	174,040
Non-central government public sector entities	25,811,629	413,684
Banks (including multilateral development banks and CCP)	585,466,936	13,325,743
Financial asset-backed securities	382,417	4,589
Corporates (including securities and insurance companies)	569,785,512	35,848,389
Retail exposures	561,413,137	33,250,330
Real estate exposures	1,786,819,950	91,228,527
Equity investments exposures	68,123,014	8,132,193
Investments in fund equity securities	1,222,264	97,781
Other assets	64,656,960	3,931,419
Total	4,871,869,902	186,406,695

Note: Capital requirement is the exposure amount after risk mitigation, multiplied by the risk weight and the minimum regulatory capital requirement (8%).

(2) Securitization Risk Management

A. Strategy and process for securitization management

As a non-originating bank holding securitized products, the Bank employs strategies and processes consistent with those for market risk management.

B. Organization and structure for securitization management

a. The Board of Directors is the highest management and supervisory body for securitized products. It is responsible for approving bank-wide risk strategies and policies, including investment strategies for purchasing securitized instruments, risk tolerance, and risk limits.

b. The Risk Management Division is the unit responsible for managing securitization risks, overseeing investment limits management and valuation monitoring for securities. Securitization transactions involving corporate credit are subject to approval by the Credit Approval Division. By leveraging the specialized functions of different units, various exposures are identified to effectively control securitization-related investments.

C. Scope and characteristics of securitization risk reporting and measurement systems

All securitization investment positions are categorized under the Banking Book. Risk measurement and reporting follow internal management regulations, focusing on changes in

the credit ratings and market prices of the investment targets. Assessment results are regularly reported to business units and senior management. Due to the small proportion of such investments, they are managed using the same measurement systems as other investment instruments without specific treatment.

D. Policies for securitization hedging or risk mitigation, and strategies and processes for monitoring the continued effectiveness of hedging and risk mitigation tools

Risk mitigation for securitized products is calculated and reported to competent authorities in accordance with the standardized approach. The hedging policy for securitized products is consistent with the Bank's market risk hedging policy.

E. Approach for regulatory capital calculation: "Eternal Ratings-Based Approach (SEC-ERBA)".

F. Securitization risk exposures and capital requirements by transaction type. In accordance with Part III Securitization of the "Instructions and Forms of Methods for Calculating Bank's Regulatory Capital and Risk-weighted Assets" promulgated by the Financial Supervisory Commission via Letter Jin-Guan-Yin-Fa-Zi No. 11302743801, there are no securitization exposures as defined by the regulations.

(3) Market Risk Management

A. Strategy and process for market risk management

a. Within the market risk appetite approved by the Board of Directors, the Bank achieves the optimization of capital efficiency and the balance between performance and risk. This is accomplished through the establishment and management of risk limits, scheduled reporting processes, internal audit systems, independent monitoring units, and oversight by senior-level committees.

b. Market risk management indicators and limits are established by comprehensively considering business decisions and financial budgets. These are revised periodically in response to market trends and fluctuations.

c. Specific risk management regulations are formulated based on the characteristics of different business lines. The identification, measurement, monitoring, and reporting of market risks are integrated into standard operating procedures, with the Market Risk Management Unit monitoring compliance by business units.

d. The Market Risk Management Unit regularly reports the status and effectiveness of market risk management to the Board of Directors or senior management, enabling them to effectively monitor risk exposures and adjust risk management measures in a timely manner.

B. Organization and structure for market risk management

a. The Board of Directors is the highest authority for market risk management and supervision, responsible for approving risk strategies, policies, risk tolerance, and risk limits. The Risk Management Committee, authorized by the Board, handles the deliberation, supervision, and reporting of risk management matters.

b. The Market Risk Management Unit, under the Risk Management Division, operates independently of the financial trading business units. It is responsible for formulating, developing, modifying, and supervising bank-wide market risk regulations and assessment tools, evaluating the risk-taking status of business units from an objective standpoint.

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C. Scope and characteristics of market risk reporting and measurement systems

a. Scope of market risk management reporting and measurement systems:

The scope encompasses expected and unexpected losses, both on and off-balance sheet, arising from changes in market prices. Key risk factors include interest rate, equity, foreign exchange, and commodity risks.

b. Characteristics of market risk management:

Portfolios are categorized by risk factors for daily valuation, monitoring, and management. Quantitative indicators such as Value at Risk (VaR) and Greeks are employed to measure market risk exposure. Market risk reports not only reflect exposure levels but also serve as a dynamic reference for management to adjust risk policies.

D. Policies for market risk hedging or risk mitigation, and strategies and processes for monitoring the continued effectiveness of hedging and risk mitigation tools

a. For financial products traded with customers, the Bank performs necessary hedging or squaring. Additionally, considering market changes, financial goals, and risk factors, the Bank establishes appropriate risky asset positions within authorized limits to maximize capital allocation efficiency and profitability. Principal hedging instruments include interest rate swaps, cross-currency swaps, swaptions, and interest rate caps and floors. For instance, overseas branches utilize interest rate swaps to hedge fair value risks arising from market fluctuations in fixed-rate loan assets.

b. In accordance with the frequency stipulated in management regulations, the risk management unit periodically monitors and reviews hedging effectiveness, reporting the results to business units and senior management.

E. Capital requirement for market risks: Standardized Approach

Dec. 31, 2025
Unit: NT$ thousand

Item		Capital Requirements
1	General interest rate risk	2,217,137
2	Equity risk	42,997
3	Commodity risk	11
4	Foreign exchange risk	507,575
5	Credit spread risk – non-securitization	201,482
6	Credit spread risk – securitization (non-CTP)	-
7	Credit spread risk – securitization (CTP)	-
8	Default risk – non-securitization	801,406
9	Default risk – securitization (non-CTP)	-
10	Default risk – securitization (CTP)	-
11	Residual risk add-on	8
Total		3,770,61

(4) Liquidity Risk – Maturity Analysis of Assets and Liabilities

NTD Maturity Profile Analysis
Dec. 31, 2025
Unit: NT$ thousand

	Total	Balance by Remaining Maturity
		0 to 10 Days	11 to 30 Days	31 to 90 Days	91 to 180 days	181 Days to 1 Year	Over 1 year
Major maturity inflows	3,886,345,608	568,956,370	561,198,098	411,481,621	264,474,798	338,713,093	1,741,521,628
Major maturity outflow	5,294,391,903	210,792,642	322,997,327	710,195,906	861,130,145	1,045,914,199	2,143,361,684
Maturity gap	-1,408,046,295	358,163,728	238,200,771	-298,714,285	-596,655,347	-707,201,106	-401,840,056

Note 1: This table represents the bank subsidiary’s bank-wide NTD amounts.
Note 2: To manage liquidity risk, the bank subsidiary has established management mechanism for risk indicators and limits. It regularly monitors limit indicators, including loan-to-deposit ratio, liquidity reserve ratio, and maturity gap-to-assets ratio, and conducts stress testing.

USD Maturity Profile Analysis
Dec. 31, 2025
Unit: US$ thousand

	Total	Balance by Remaining Maturity
		11 to 30 Days	31 to 90 Days	91 to 180 days	181 Days to 1 Year	Over 1 year
Major maturity inflows	49,524,960	12,332,533	7,311,746	6,269,556	8,178,106	15,433,019
Major maturity outflow	56,286,203	15,598,005	15,842,064	6,977,184	11,629,339	6,239,611
Maturity gap	-6,761,243	-3,265,472	-8,530,318	-707,628	-3,451,233	9,193,408

Note 1: This table represents the bank subsidiary’s bank-wide USD amounts.
Note 2: To manage liquidity risk, the bank subsidiary has established management mechanism for risk indicators and limits. It regularly monitors limit indicators, including loan-to-deposit ratio, liquidity reserve ratio, and maturity gap-to-assets ratio, and conducts stress testing.

(5) Operational Risk Management

A. Strategy and process for operational risk management

a. Considering the risk management culture and internal control objectives, the Bank has formulated an Operational Risk Appetite Statement to serve as the foundation for establishing risk control mechanisms for bank-wide compliance.
b. Operational risk management is the responsibility of personnel at all levels. In addition to adhering to internal control and audit systems and relevant regulations during business activities, employees are directly responsible for risk management within their respective scopes of duty.

c. Operational risk management methods include identification, assessment, monitoring, reporting, and response strategies. These are implemented alongside operational risk management tools, such as Loss Data Collection (LDC), Risk and Control Self-Assessment (RCSA), Control Self-Assessment (CSA), and Key Risk Indicators (KRI), to maximize the effectiveness of risk control.

B. Organization and structure for operational risk management

a. The Board of Directors is the highest approval level for operational risk management, responsible for approving and periodically reviewing operational risk management policies and frameworks. The Risk Management Committee is responsible for deliberating risk measurement, assessment, and monitoring systems, as well as the status of risk management execution. Senior Managers are responsible for implementing the operational risk management framework approved by the Board and developing relevant methodologies and procedures to manage operational risk.

b. A centralized operational risk management framework is adopted, with clearly defined roles, responsibilities, and reporting lines based on the Three Lines of Defense functional model:

i. Each unit shall perform controls over daily business activities and implement operational risk management within its respective functional scope and responsibilities.

ii. The Risk Management Division is responsible for establishing the operational risk management system, designing operational risk management tools and procedures, and performing exposure monitoring and reporting.

iii. The Auditing Division is responsible for independently auditing and evaluating the effectiveness of the operational risk management framework's operations.

C. Scope and characteristics of operational risk reporting and measurement systems

a. Risk identification and assessment are conducted through standardized operational risk management tools. This allows management to observe the operational risk profile and continuously monitor identified potential risks, facilitating the implementation of risk control or mitigation measures.

b. The Risk Management Unit periodically discloses operational risk exposure status and consolidates risk information along with other significant related issues, reporting these to Senior Management, the Risk Management Committee, and the Board of Directors.

c. Should any unit identify material risk exposures or operational risk events that threaten the organization's financial or business standing, they must immediately notify the Auditing Division, the relevant Line Management, and the Risk Management Division. Such events shall be reported to the Chief Auditor and Senior Management according to their respective procedures. In cases involving regulatory violations resulting in disciplinary actions by competent authorities, a separate report must be submitted to the Compliance Division.

D. Policies for operational risk hedging or risk mitigation, and strategies and processes for monitoring the continued effectiveness of hedging and risk mitigation tools

a. Operational risk hedging or mitigation is primarily achieved through insurance, aimed at transferring or mitigating operational risk losses caused by operational errors, personnel, systems, or external events. Through periodic risk identification, assessment, and control measures, the continued implementation and effectiveness of mitigation tools are ensured.

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b. To reduce potential losses from business interruption caused by fire, explosion, typhoon, earthquake, robbery, bank runs, strikes, or other major events, emergency backup and business continuity plans along with implementation measures have been established for all units to follow.

E. Approach for regulatory capital calculation: The New Standardized Approach

Capital Requirement for Operational Risk

Dec. 31, 2025

Unit: NT$ thousand

Item	Amount
Business Indicator Component (BIC)	8,720,667
Internal Loss Multiplier (ILM)	0.5606
Operational Risk Capital Requirement (ORC)	4,888,721
Operational Risk-Weighted Assets (RWA)	61,109,015
Additional Note on Internal Loss Multiplier (ILM): None

II. First Securities

(1) Risk Management Strategies and Processes

A. Risk management strategies

a. Control all business risks within acceptable limits to pursue stable asset growth. Establish an effective risk management mechanism and accurate risk management indicators for corporate operations, aiming to achieve a balance between risk and return, which serves as a reference for capital allocation.

b. Enhance execution capabilities of risk control by promoting procedure-based, computerized, and disciplined work to minimize human operational errors.

c. The risk management system covers major business risks across the company, including market risk, credit risk, market liquidity risk, funding liquidity risk, operational risk, emerging risk, cybersecurity risk, legal risk, anti-money laundering and counter-terrorism financing risk, and climate risk. Business units are responsible for effective control within their respective functions, the Risk Management Division continuously monitors operational activities, and the Auditing Division performs rigorous audits to facilitate effective risk response.

B. Risk management processes

The risk management process consists of top-down supervision and bottom-up execution. The Top-down supervision is executed by the Risk Management Committee under the Board of Directors to prevent, control, and supervise risk management affairs. Further control and oversight is conducted by the Chairman, President, heads of business units, and the risk control unit. Bottom-up execution involves business units developing relevant risk management regulations for the various risks facing. These regulations are implemented after being deliberated by the Risk Management Committee or further approved by the Board of Directors. Relevant personnel must clearly understand their risk management responsibilities; control results are presented in daily risk management reports and signed off by unit managers. The Risk Management Division is responsible for consolidating risk management results and utilizing a risk management information platform to oversee the company's overall risk control

operations, producing daily and monthly risk management reports for submission to senior management team.

(2) Risk Management Organization and Structure

The Board of Directors bears ultimate responsibility for the risk management of all operations. To enhance the monitoring of various risks and effectively respond to changes in the financial environment, the Board has established the “Risk Management Committee” to assist in strengthening the supervision, prevention, and control of risk management affairs. Furthermore, a comprehensive risk management system is formed by the Risk Management Division, Auditing Division, Finance Division, Compliance Division, Information Technology Division, and risk control personnel from various business units to ensure the effective execution of risk management mechanisms.

(3) Scope and Characteristics of Risk Reporting and Measurement Systems

A. Risk control reporting

a. Daily reports: Each business unit prepares a “Daily Risk Control Report” based on its risk control rules. The Risk Management Division consolidates data from all units, independently evaluates risk monitoring results, and generates risk management implementation reports for review by the President and Chairman.

b. Monthly reports: On a monthly basis, the Risk Management Division consolidates information regarding held positions, trading profit or loss, and various risk indicators, including market risk, credit risk, liquidity risk, operational risk, climate risk, and capital adequacy ratio, for submitting and reporting to the Risk Management Committee and the Board of Directors.

c. The Risk Management Division monitors activities via the risk management information platform. If any risk events occur, such as exceeding authorized limits, losses reaching stop-loss/alert levels, or breaching thresholds for capital adequacy ratios, Greeks, or DVO1, an inter-office communication memo is immediately submitted to the Chairman and President.

d. For positions intended to be managed by exception, the exception management position evaluation team deliberates on disposal methods, which are then reported to the Risk Management Committee and tracked until the case is closed.

B. Scope and characteristics of risk measurement

The scope of risk assessment primarily includes market, credit, liquidity, and operational risks. To effectively control managerial risks, relevant risk rules for business units stipulate control procedures, including duties and responsibilities, monitoring methods, indicators, and reporting flows. Risk management deficiencies are audited periodically, with continuous follow-up on improvements to ensure effective operation of risk management systems.

a. Market risk

In addition to assigned investment limits, stop-loss threshold, and trading suspensions, DVO1 management is applied to bond positions, and Greeks are used to control derivative positions. The risk management information platform is utilized for strict enforcement and for effective control of market risk exposures. Since 2010, the company has adopted RiskMetrics platform developed by RiskMetrics Group to calculate Value at Risk. The system enhancing market risk management system further for it provides daily portfolio Value at Risk using variance-covariance, historical simulation, and Monte Carlo methods,

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supplemented by stress testing, sensitivity analysis, and backtesting to verify the timeliness and robustness of the Value at Risk system.

Value at Risk calculation results by using historical simulation, 1-day, $99\%$ confidence interval for 2025:

Unit: NT$

Date	Dec. 31, 2025	Average	Maximum	Minimum
Value at Risk	150.93	117.84	167.22	60.12

b. Credit risk

Sources include risks from unexpected changes in credit ratings and counterparty default. Ratings are based on those rendered by external agencies (S&P, Moody's, Fitch, Taiwan Ratings) and the Taiwan Economic Journal (TEJ). Credit transaction limits are assigned from R1 to R4 based on an internal rating table. For Lending operations, credit limits are granted and managed in accordance with relevant credit analysis and credit approval rules.

c. Liquidity risk

i. Funding liquidity risk: Established through liquidity gap analysis and management indicators to prevent funding shortages.
ii. Market liquidity risk: Established through liquidity alerts and caps on single-position concentration to prevent excessive concentration.

d. Operational risk

i. Internal control systems, operational manuals, and emergency response plans serve as the basis for staff operation and internal audits to prevent risks such as human error, system failure, or force majeure.
ii. Operational risk events are reported and handled in accordance with internal rules.

e. Climate risk

To address transition risks arising from the shift toward a low-carbon economy driven by climate change, which could impact potentially the company's finance, strategy, operations, products, and reputation and the physical risks stemming from extreme weather events caused by climate change, affecting the company's financial and operational stability, the company should adopt domestic and international common standards, indicators, or guidelines to conduct greenhouse gas inventories or implement climate risk management.

f. Other risks

To enhance response capabilities for major contingent events, the company has established Major Contingent Events Reporting Guidelines and a reporting management system based on the Regulations Governing the Reporting of Major Contingent events by Securities Firms and the First Financial Group Contingent Event Reporting Guidelines.

(4) Policies for Risk Hedging or Risk Mitigation, and Strategies and Processes for Monitoring the Continued Effectiveness of Hedging and Risk Mitigation Tools

To manage asset price uncertainty arising from financial transactions across various business units, the company employs administrative measures such as appointing dedicated risk control officers and establishing risk management rules. Furthermore, risk-offsetting strategies are executed through hedging transactions tailored to different instruments to mitigate or eliminate risks associated with one-sided trades. To reduce market risk arising from equity price

fluctuations, proprietary trading may utilize futures, options, or inverse products for hedging. To mitigate market risks resulting from underlying stock volatility and investor default risks, the issuance of call(put) warrants involving dynamic hedging is performed using the underlying stocks, supplemented by futures or warrants of the same underlying asset as hedging tools. In convertible bond asset swaps, the general principle is to maintain 100% hedging against the corresponding convertible bond position. Should market price movements turn unfavorable, positions may be dynamically adjusted to reduce the market risk of the holdings.

Based on established protocols for authorized limits, risk exposure limits, and hedging excesses or shortfalls, a risk management system has been implemented for daily monitoring. This ensures that mitigation measures can be taken promptly and reported through the appropriate levels of management to minimize potential risks.

(5) Capital Adequacy Ratio

The capital adequacy ratio serves as a key indicator for the overall business risk of a securities firm. As of the end of 2025, the capital adequacy ratio (audited by CPAs) stood at 306%. The risk-equivalent amounts for each risk item are as follows:

Unit: NT$ thousand

Available Capital	Net Eligible Capital Amount
Eligible Capital (Numerator)	8,539,009
Risk Item (Denominator)	Risk Equivalent Amount
Credit risk	925,091
Operational risk	468,514
Market risk	1,393,320
Managerial risk (Total)	2,786,924

III. First Life Insurance

(1) Risk Management Strategies and Processes

A. The relevant internal control ensuring all risks are maintained within risk appetite level are stipulated based on various risk management policies, rules and regulations and business attributes. Oversight of various risks is conducted through the Board of Directors, Risk Management Committee, Asset and Liability Management Committee, and Investment Committee. Furthermore, capital adequacy ratio alert levels are established to ensure continuous capital adequacy.

B. The risk management policy encompasses all major risks and management mechanisms. By effectively executing the risk management process, including analysis, control, action, and reporting, the company ensures the achievement of its predefined objectives.

(2) Risk Management Organization and Structure

A "Risk Management Committee" has been established as the unit responsible for the supervision, reporting, and coordination of risk management. It ensures the implementation of risk management policies and oversees relevant risks across all business units to maintain risk exposure within reasonable limits. In addition to the daily risk identification and management performed by each business unit, a dedicated Risk Management Division has been established. Its role is to support and review risk assessments, reporting, and risk mitigation action plans to ensure their completeness and accuracy. The Auditing Division maintains a detached, independent,

and objective position to audit the soundness of the risk management framework and the effectiveness of internal controls.

(3) Scope and Characteristics of Risk Reporting and Measurement Systems

A. Asset risk

Asset risk refers to the risk that various assets held through an insurance company's investments. It may experience fluctuations in value, thereby affecting an insurance company's solvency. For market risk, credit risk, and liquidity risk, the company adheres to its risk management policies and relevant risk indicators, periodically reporting the exposure status of investment positions to ensure solvency in the event of asset risk.

B. Insurance risk

Insurance risk refers to the risk of underestimating liabilities for existing policies or inadequate pricing of premiums for future new contracts. Effective insurance risk management is ensured through rigorous new product development processes, pricing analysis under various assumptions, claims and underwriting process controls, reinsurance assessments, and product concentration analysis.

C. Interest risk

Interest rate risk refers to the risk of inconsistent fluctuations in the value of assets and liabilities due to changes in interest rates. To effectively control this risk, market interest rate changes and future rate trends are continuously monitored. The risk of interest rate volatility is managed through asset-liability duration management.

D. Other risks

Other risks refer to additional risks an insurance company may face beyond those mentioned above, primarily including operational risk, which refers to potential direct or indirect losses caused by various operational factors. The company periodically performs self-assessments of various risk indicators and promptly implements improvement measures for any breaches. Furthermore, an operational loss reporting mechanism has been established, with each department conducting periodic self-audits and submitting compliance reports.

(4) Capital Adequacy Ratio

Capital adequacy ratio at the end of 2025 was 427.83%

Unit: NT$

Risk Item	Risk Capital Amount
C0: Asset risk — affiliate risk	36,373
C1: Asset risk — non-affiliate risk	2,844,063
C2: Insurance risk	180,297
C3: Interest rate risk	1,956,922
C4: Other risk	304,274
C5: Catastrophe risks	329,532
Total risk-based capital before adjustment	5,651,461
Total risk-based capital	1,777,042
Total eligible capital	7,602,695
Capital Adequacy Ratio	427.83%

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5.6.3 Impact Of Domestic And International Policy And Legal Changes On The Company's Finance And Business, And Corresponding Countermeasures

The "Public Interest Whistleblower Protection Act" officially came into effect on July 22, 2025. This Act establishes explicit regulations regarding whistleblower protection procedures and measures, aiming to encourage public servants and the general public to report major illegal acts while ensuring the protection of whistleblowers' rights and interests. The Company and all of its subsidiaries have updated their internal regulations in alignment with the Act to strengthen corporate integrity governance and anti-corruption mechanisms.

5.6.4 Impact Of Technological Changes (Including Cybersecurity Risks) And Industrial Changes On The Company's Finance and Business, And Corresponding Countermeasures.

As FinTech becomes a mainstay, financial institutions have intensified their digital transformation efforts and deepened collaborations with FinTech providers. Total investment in FinTech development by Taiwan's financial sector for 2025 was estimated at NT$44.8 billion, representing a year-over-year increase of 42.2%. Within this total, the banking industry held the largest share at 73.4%.

As the Group's core subsidiary, First Bank continues to accelerate its digital finance deployment in response to the evolution of financial technology. By leveraging digital accounts, cross-industry collaborations, and the development of a financial ecosystem, the Bank continues to expand its customer base and enhance customer loyalty. First Bank has long-driven digital transformation and inclusive finance, establishing a comprehensive digital service landscape. This includes its online banking platform "Retail e-Banking," mobile banking service "Mobile e-Banking," digital financial brand "iLEO App," and corporate financial platforms "Corporate e-Banking" and "Corporate e-Banking (Overseas Branches)." With the "iLEO" digital brand as its core, the Bank continuously adopts emerging technologies to drive innovative features. Guided by the mission of being "simple, fast, innovative, and knows you best", the Bank focuses on user experience and feedback mechanisms. Through its "security manager" suite, the Bank has introduced the "165 anti-fraud quick check" function and a "deferred payment mechanism" for suspicious accounts, significantly bolstering account security.

Furthermore, in terms of AI-driven business development, the Bank applies analytical models within corporate banking to evaluate customer cash flows and supply chain dynamics. By establishing potential corporate client models, it accelerates the acquisition of high-quality customers. In retail banking, the Bank utilizes predictive models to identify demand for credit and wealth management, while developing household relationship models to enhance the precision of wealth management services. Additionally, First Bank has introduced the integration of Generative AI into its consumer and corporate credit review processes to generate credit investigation and assessment reports. By consolidating financial data, credit histories, and risk evaluations, this initiative significantly improves review efficiency and ensures consistency across evaluations. To enhance operational efficiency and streamline internal workflows, the Bank has developed an "Internal Intelligent Q&A System". This system utilizes Generative AI paired with Retrieval-Augmented Generation (RAG) technology to integrate the Bank's internal regulations and guidelines. It generates accurate, traceable responses and automatically suggests related queries for further inquiry. Supporting seamless, real-time access for both domestic and overseas branches, the system enables employees to obtain immediate business guidance, reducing search and communication time while further improving frontline service efficiency and the overall customer experience. In regards to AI and data governance, First Bank has implemented an MLOps platform to manage and deploy AI models, advancing data standardization and establishing a bank-wide data dictionary. These initiatives directly support the core strategic value of "data as an

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asset." From a strategic execution perspective, the Bank has launched the "Digital Golden Triangle" program to drive AI and digital projects, and has organized "AI Practice Workshops" to cultivate AI seed personnel and accelerate the practical application of AI technologies through business process reengineering scenarios. At the same time, the Bank continues to internalize FinTech capabilities by using Microsoft 365 as a core platform, together with Power Platform and Copilot, to promote organization-wide digitalization. Through group-wide Hackathons Case Study Competition, First Bank encourages cross-unit collaboration and innovation, building momentum for project implementation and fostering a digital culture of continuous improvement.

The rapid evolution of information technology has accelerated the comprehensive digital transformation of financial services. However, emerging technologies, such as open application programming interfaces (Open APIs), cloud services and computing, biometric technologies, AI and machine learning, and containerized microservices, pose significant challenges to traditional information security architectures. Furthermore, the prevalence of remote work and mobile devices in the post-pandemic era has blurred traditional security perimeters. Hackers can now launch attacks through various stages and channels, increasing the risks of service disruption and personal data breaches.

In response to these risks, First Bank has adopted an intelligence-driven, multi-layered cybersecurity protection framework for monitoring and defense. In line with regulatory policies for cloud adoption, the Bank is gradually introducing cloud-based security mechanisms to enhance its flexibility and capacity against geopolitical cybersecurity threats. At the same time, First Bank has implemented a Security Service Edge (SSE) architecture to integrate multiple secure access services, ensure the security of cloud applications and remote access, and strengthen data leakage protection.

First Bank continues to promote a zero-trust security approach by progressively introducing identity verification, device authentication, and trust evaluation mechanisms to ensure that every access request is verified. The Bank also regularly conducts cybersecurity drills and operates a Computer Security Incident Response Team (CSIRT) to strengthen its incident response capabilities. By complying with international information security standards and regulatory requirements and promoting employee cybersecurity awareness, First Bank reduces human-related risks, enhances overall cyber resilience, and ensures the achievement of its goals in business innovation and sustainable operations.

In response to technological advances and industry transformation, the securities subsidiary is being reshaped by digitalization, automation, data analytics, and emerging financial tools (such as AI and FinTech), which are changing the way the securities industry operates. As investors increasingly demand mobile, personalized, and real-time convenient services, and show a strong preference for online account opening, mobile trading, and intelligent wealth management, the role of traditional physical branches has gradually diminished. To adapt to these industry shifts and evolving customer behaviors, First Securities is focusing on strengthening its digital infrastructure, enhancing information security, developing diversified businesses (such as sub-brokerage services and life insurance), and improving the overall customer experience. By leveraging customized push notifications and intelligent customer service functions that provide instant responses, First Securities delivers around-the-clock online customer support services. At the same time, the company continues to refine its electronic platforms and expand its suite of online services. Key initiatives include online sub-brokerage account opening and a U.S. stock dollar cost averaging investment scheme that allows customers to participate in the U.S. stock market with a minimum investment of US$10 or NT$500. For long-term investors focused on share-accumulation strategies, First Securities exclusively launched the "Portfolio Doctor - Portfolio Simulation" function. This feature provides three ETF-based model portfolios and two customizable portfolios for investor reference and order placement. The service helps address the common challenge faced by retail investors in deciding which securities to invest in. As AI technologies mature, the strategic integration of AI into robust information security and risk management has become a critical

priority. Only by proactively embracing technological and industrial shifts can the company successfully transform and sustain growth within an increasingly competitive landscape. To reduce information security risks, the securities subsidiary has completed BSI ISO 27001:2022 transition certification, with the certificate remaining valid and in compliance with international information security standards. A Security Operations Center (SOC) has been implemented to strengthen security monitoring and defense. In addition; a Data Loss Prevention (DLP) system has been deployed to monitor personal data and reduce the risk of data leakage. The subsidiary has also obtained cybersecurity insurance and engaged a third party to conduct cybersecurity governance maturity assessments in order to enhance overall information security risk management.

First Life Insurance continues to offer accessible, low-premium accident insurance on its online platform. By launching term life, health, and small-amount whole-life insurance products on the "FundRich Protection Product Platform," the company enables the public to obtain basic coverage through affordable payments. Protection type products will continue to be introduced on this platform. At the same time, the company is adding high-demand items to its existing lineup on the First Bank online insurance platform, including travel insurance, interest-sensitive annuities, and small-amount whole-life insurance to drive online sales growth. Furthermore, the QWalker health App has been integrated with the online insurance and policyholder platforms to provide comprehensive digital services. With respect to cybersecurity risks and emerging technologies, First Life Insurance continues to refine its management frameworks and allocate the necessary resources. The company maintains international certification under the Information Security Management System (ISMS) ISO 27001 and will continue to improve and strengthen the security protection capabilities of its network and information systems. In order to fulfill its commitment to personal data privacy, the company also maintains international certification under the BS 10012 Personal Information Management System (PIMS). In addition, by leveraging Group resources, First Life Insurance promotes marketing initiatives through integrated digital and physical channels to attract and convert the Group's customer base. From a user experience perspective, the company continues to optimize its digital financial services and strengthen security defenses against malicious cyberattacks. These efforts ensure a secure and efficient platform for customers while attracting an increasingly diversified customer base.

The securities investment trust subsidiary continues to drive the development and optimization of its digital financial systems to enhance operational efficiency, strengthen critical infrastructure, and reinforce information security management. In 2025, information technology development focused on expanding mobile app functionalities to bolster online transactions, continuing the optimization of official website systems (for electronic trading and online account opening and more), and proceeding with the tape backup cabinet deployment project. The subsidiary also implemented a storage capacity expansion at the off-site disaster recovery center, replaced off-site disaster recovery ESXi servers and server-area firewalls that reached end of support (EOS), and upgraded the email server system. Furthermore, the company introduced Microsoft 365 and Copilot AI technology platforms, completed the annual audit for ISO 27001:2022 international information security certification, and continued the integration and upgrade of the fund and discretionary account systems. For 2026, the strategic objectives for information technology development include upgrading the mobile app to integrate a WebView-based trading system and adding biometric authentication for login. In response to the application of AI technologies, the subsidiary plans to introduce intelligent regulatory technology systems and extend RPA capabilities through AI integration. Infrastructure goals involve executing a VMware virtualization management system upgrade at the off-site disaster recovery center and constructing an AI-driven cybersecurity architecture through the introduction of a Managed Detection and Response (MDR) endpoint AI mesh protection system. Additionally, the company will maintain the continued validity of its ISO 27001:2022 international information security certification through annual audits and complete the integration and upgrade of its fund and discretionary account systems.

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5.6.5 Impact Of Changes In Corporate Image Of the Company And Its Subsidiaries On Corporate Crisis Management, And Corresponding Countermeasures

None.

5.6.6 Expected Benefits, Potential Risks, And Countermeasures Of Mergers And Acquisitions

I. Expected Benefits

(1) Rapid expand financial business footprint by leveraging business complementarity and economics of scale. The Company aims to enhance product development capabilities and distribution channel advantages, thereby increasing market share and competitiveness.

(2) Integrate and share the Group resources to effectively execute integrated marketing. The Company is to provide customers with diversified products and comprehensive financial services to build niche advantages and achieve operational synergies.

II. Potential Risks

(1) Differences in corporate culture may lead to employee maladjustment or intensify labor union disputes, thereby increasing internal friction costs.

(2) The loss of key talents may disrupt the transition of critical tasks and expertise, leading to the loss of major business accounts. This could indirectly impair competitiveness and elevate legal and operational risks.

(3) The costs associated with integrating information systems and operational workflows may exceed original expectations.

(4) Overly optimistic projections may not materialize in the short term.

5.6.7 Risks Faced By Business Concentration And Corresponding Countermeasures

I. First Bank serves as the core entity of the Company and remains the primary contributor to overall profits. To diversify business concentration risk and maintain asset quality and earnings, in addition to its core lending business, foreign exchange, trusts, insurance, wealth management, and derivative financial products are actively promoted. In alignment with the Company's integrated marketing strategy, the subsidiary provides a diverse range of products to meet customers' comprehensive financial needs. This approach progressively adjusts the asset and profit structure, thereby reducing the risk of excessive business concentration.

II. Regarding the control of core lending operations, the subsidiary manages credit limits in compliance with the Banking Act's regulations concerning the same person, same related party, and same affiliated enterprise to avoid excessive risk concentration. Furthermore, based on factors such as risk management policies, market environment shifts, business characteristics, and industry cycles, the subsidiary has established specific limit categories for group entities, industrial sectors, credit ratings, countries, listed stocks, and real estate loans. These limits are monitored periodically and reported to senior management, with appropriate adjustments made in response to overall economic conditions and the financial environment.

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5.6.8 Impact, Risks, And Countermeasures Of Large-Scale Transfer Or Changes In Shareholding By Directors Or Major Shareholders With A Stake Exceeding 1%

I. According to the shareholders' register as of the book closure date on April 20, 2026, the major shareholders with a stake exceeding 1%, including Yuanta Taiwan High Dividend Low Volatility ETF and Taiwan Life Insurance Company, no longer hold more than 1% of the Company's shares. However, this has no impact on the Company's shareholding structure.

II. Occasional changes in directors are due to the reappointment of representatives by corporate shareholders, which also has no impact on the shareholding structure.

5.6.9 Impact, Risks, And Countermeasures Of Changes In Management Control Of The Company

As of April 20, 2026, the combined shareholding of the Company's major shareholders (the Ministry of Finance and its subordinates, Taiwan Tobacco & Liquor Corporation and Bank of Taiwan) stands at 20.49% of the issued voting shares. Since there are no plans for share divestment in the short term, there is currently no risk of changes in management control."

5.6.10 Litigious Or Non-Litigious Matters

None.

5.6.11 Other Material Risks And Corresponding Countermeasures

None.

5.7 Crisis Management And Response Mechanisms

The Company has established the "Crisis Management Implementation Procedures" to respond to major contingencies that may jeopardize the normal operations of the Company and its subsidiaries. In the event of a crisis, immediate emergency response measures are taken in accordance with internal and external reporting mechanisms and handling procedures. When necessary, the Company's crisis management task force is activated to coordinate response decisions and provide timely public clarifications through the Spokesperson. This is to effectively minimize potential damages and public concerns, thereby safeguarding the interests of our customers.

5.8 Other Important Matters

None.

VI. Special Disclosures

6.1 Information On Affiliates

6.1.1 Consolidated Business Reports Of Affiliates

Please refer to the Market Observation Post System at: https://mopsov.twse.com.tw/mops/web/t57sb01_q10

6.1.2 Consolidated Financial Statements Of Affiliates

Pursuant to the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises", the entities required to be included in the consolidated financial statements of affiliates are identical to those required to be included in the parent-subsidiary consolidated financial statements under IFRS 10. As all relevant information to be disclosed in the consolidated financial statements of affiliates has been disclosed in the aforementioned parent-subsidiary consolidated financial statements, no separate consolidated financial statements for affiliates have been prepared.

6.1.3 Affiliation Report

The Company is not a subsidiary of any other company as defined in the Chapter on Affiliated Enterprises of the Company Act; therefore, the preparation of an affiliate report is not required.

6.2 Implementation Status Of Private Placement Of Securities During The Most Recent Year And Up To The Publication Date Of The Annual Report Should Include The Date, Amount, Basis And Reasonableness Pricing Approved By The Shareholders' Meeting Or Board Of Directors; Selection Method Of Specific Persons; Reasons For The Necessity Of Private Placement; Targets, Qualifications, Number Of Shares Subscribed, And Relationship With The Company; Participation In Company's Operations; Actual Subscription (Or Conversion) Price; Difference Between Actual Price (Or Conversion) And Reference Price; Impact On Shareholders' Equity; And The Status Of Fund Utilization, Project Progress, And Realization Of Benefits From The Completion Of The Payment To The Completion Of The Utilization Plan.

During 2025 and up to the publication date of this annual report. The Company did not conduct any private placement of securities.

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6.3 Other Necessary Supplementary Disclosures

6.3.1 Matters Defined Under Article 36, Paragraph 3, Item 2 Of The Securities And Exchange Act Which Have A Significant Impact On Shareholders' Equity Or Securities Prices During The Most Recent Year And Up To The Date Of Publication Of The Annual Report:

None.

6.3.2 Significant Subsequent Events

None.

General Information

1. Spokesperson And Deputy Spokesperson

Spokesperson	Deputy Spokesperson
Annie Lee, Executive Vice President
E-mail [email protected]	Shui-Lien Wang, Division Head
E-mail [email protected]

2. Corporate Headquarters

Company	Address, Phone & Website
First Financial Holding Co., Ltd.	18F, 30, Sec. 1, Chung King S. Rd.,
Zhongzheng District, Taipei, Taiwan, R.O.C.
Main Office Number: (886 2) 2311 1111
www.firstholding.com.tw
First Commercial Bank	30, Sec. 1, Chung King S. Rd.,
Zhongzheng District, Taipei, Taiwan, R.O.C.
Main Office Number: (886 2) 2348 1111
www.firstbank.com.tw
First Securities Inc.	4F, 22, Sec. 1, Chang An E. Rd.,
Zhongshan District, Taipei, Taiwan
Main Office Number: (886 2) 2563 6262
www.firstsec.com.tw
First Securities Investment Trust Co., Ltd.	7F, 6, Sec. 3, Min Chuan E. Rd.,
Zhongshan District, Taipei, Taiwan
Phone (886 2) 2504 1000
www.fsitc.com.tw
First Life Insurance Co., Ltd.	13F, 456, Sec. 4, Xin Yi Rd.,
Xinyi District, Taipei, Taiwan
Phone (886 2) 8758 1000
www.firstlife.com.tw/FirstWeb
First Financial Asset Management Co., Ltd.	9F, 38, Yan Ping S Rd.,
Zhongzheng District, Taipei, Taiwan
Phone (886 2) 3343 7000
www.firstholding.com.tw/sites/amc/home
First Venture Capital Co., Ltd.	10F, 38, Yan Ping S Rd.,
Zhongzheng District, Taipei, Taiwan
Phone (886 2) 2348 4981
www.firstholding.com.tw/sites/fvc/overview
First Financial Management Consulting Co., Ltd.	10F, 38, Yan Ping S Rd.,
Zhongzheng District, Taipei, Taiwan
Phone (886 2) 2348 4982
www.firstholding.com.tw/sites/fmc/overview

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3. Shareholder Services Agent

Company	Address, Phone & Website
For common shares:
First Commercial Bank
Personal Banking Business Unit
Shareholder Service Department, Trust Division	42, Yen Ping S. Rd.,
Zhongzheng District, Taipei Taiwan
Phone (886 2) 2348 1137 / (886 2) 2348 1140
https://www.firstbank.com.tw
For GDRs
Citibank, N.A.	26th Floor, 388 Greenwich Street,
New York, NY 10013, U.S.A.
Phone (1) 877 248 4237
https://www.citi.com/dr

4. Credit Rating Agency

Company	Address & Phone
Taiwan Ratings Corporation	2F, 167, Dunhua N. Rd.,
Songshan District, Taipei, Taiwan
Phone (886 2) 7724-6570
Standard & Poor's Global Ratings	Level 3, Three Exchange Square,
8 Connaught Place,
Central, Hong Kong
Phone (852) 2533 3500
Moody's Investors Service Hong Kong Limited	24/F, One Pacific Place,
88 Queensway, Admiralty, Hong Kong,
Phone (852) 3758 1300

5. Independent Auditor

CPA	Company Name	Address & Phone
Chiao-Sen Lo;
Hsien-Yi Chen	PricewaterhouseCoopers,
Taiwan	27F, 333, Sec.1, Keelung Road,
Xinyi District, Taipei, Taiwan
Phone (886 2) 2729 6666

6. Listing Information, Including The Name Of Any Exchanges The Company's Securities Are Traded Offshore And The Method To Access Information On Said Offshore Securities

The common shares of First Financial Holding Co., Ltd. are listed on the Taiwan Stock Exchange under the ticker code 2892. The global deposit receipts (GDRs) of First Financial Holding Co., Ltd. are listed on the Euro MTF market of the Luxembourg Stock Exchange. For more GDR information, please refer to Market Observation Post System at https://mops.twse.com.tw.

Memo

第一金控 · First Financial Holding

本年報告用不含重金屬之環保紙張及環保油墨印製

This annual report is printed on ecological paper, free from heavy metal, by using eco-friendly printing ink.

AI assistant

First Financial Holding Co. Ltd. — Annual Report 2025

52222_rns_2026-05-29_172ad0cb-cad5-4deb-9e73-def6cdfdea57.pdf

第一金融控股股份有限公司

First Financial Holding Co., Ltd.

FIRST FINANCIAL HOLDING

Contents

FFHC 2025 Financial Highlights

General Information 204

FFHC 2025 Financial Highlights

I. LETTER TO SHAREHOLDERS

1. Achieving Breakthrough Growth and Forging Sustainable Competitiveness in a Dynamic Landscape

2. Operating Results For The Year 2025

(1) Steady Innovation and Sustainable Resilience

(2) Enhancing Product Quality and Strengthening Niche Businesses

First Bank

First Securities

First Life Insurance

First Securities Investment Trust

First Financial AMC, First Venture Capital & First Consulting

3. Business Strategy And Operational Plan For The Year 2026: Innovative Transformation with Sustainable Advancement

4. The Latest Credit Rating Results: Ratings Affirmed, Reflecting Outstanding Stability and Trustworthy Operations

II. Corporate Governance Report

2.1 Directors, President, Executive Vice Presidents, Assistant Vice Presidents, Heads Of Each Division And Unit And Company's Consultants

2.1.1 Board Member Information

2.1.2 Major Shareholders Of The Company's Corporate Shareholders

2.1.3 Major Shareholders Of The Company's Corporate Shareholders Listed In Table 2.1.2 Above

2.1.4 Professional Qualifications Of Board Members And Independence Status Of Independent Directors

2.1.5 Board Diversity and Independence Status

I. Board Diversity

II. Board Independence

2.1.7 Information On Retired Chairpersons Or Presidents Serving As The Company's Consultants

2.1.8 Remuneration Paid To Directors, Independent Directors, President, Vice Presidents And Other Key Managers, And The Distribution Of Employee Compensation For the Most Recent Year

I. Remuneration of Directors and Independent Directors

II. Remuneration of the President and Vice Presidents

IV. Top 10 Recipients of Employee Compensation in 2025, with names, job titles, and total compensation indicated

V. Analysis of Total Remuneration paid to Directors, the President, and Vice Presidents by the Company and all consolidated subsidiaries in the most recent two years, and its ratio to net income in the Company's Stand-alone Financial Statements.

2.2 Implementation Status Of Company Corporate Governance

2.2.1 Implementation Status And Performance Evaluation Of The Board of Directors

Other items to be disclosed:

2.2.2 Implementation Status Of The Audit Committee

Other items to be disclosed:

2.2.3 Disclosures Required Under The Corporate Governance Best Practice Principles For Financial Holding Companies

2.2.4 Corporate Governance Implementation Status, Deviations From the Corporate Governance Best Practice Principles For Financial Holding Companies, And Reasons Thereof

2.2.5 Composition And Implementation Status Of The Remuneration Committee

I. Information on Remuneration Committee Members

II. Implementation Status of the Remuneration Committee

Other items to be disclosed:

2.2.6 Implementation Status Of Sustainable Development, Deviations From The Sustainable Development Best Practice Principles For TWSE/TPEx Listed Companies, And Reasons Thereof

2.2.7 Climate Related Information Of The Financial Holding Company

1-1 Greenhouse gas inventory and assurance status for the past two years

1-1-1 Greenhouse gas inventory information

1-1-2 Greenhouse gas assurance information

1-2 Greenhouse gas reduction targets, strategies, and concrete action plans

Reduction targets and achievement status:

Strategies and concrete action plans:

2.2.8 Implementation Status Of Ethical Management, Deviations From The Ethical Management Best Practice Principles For TWSE/TPEx Listed Companies, And Reasons Thereof

2.2.9 Other Significant Information For A Better Understanding Of The Company's Corporate Governance Implementation Status

2.2.10 Implementation Status Of Internal Control System

2.2.11 Major Resolutions Of Annual Shareholders' And Board Of Directors' Meetings During The Most Recent Year And Up To The Publication Date Of This Annual Report

I. Major Resolutions Of 2025 Shareholders' Meeting (Held On 2025.6.20)

II. Major Resolutions Of The Board Of Directors

2.3 Information on Professional Fees of Certifying CPAs

2.4 Information On Change Of CPAs

2.5 Where The Company’s Chairperson, President, Or Any Manager In Charge Of Financial Or Accounting Matters Has Held A Position At The Accounting Firm Of Company’s Attesting CPAs Or At An Affiliated Enterprise Of Such Firm, Such Relations Should Be Disclosed: None.

2.8 The Total Number Of Shares And Total Equity Interest Held In Affiliated Companies By The Company, Its Directors And Managers, Or Directly Or Indirectly Controlled Business

III. Capital Raising Activities

3.1 Capitalization And Shares

3.2 List Of Major Shareholders

3.3 Dividend Policy And Implementation Status

(1) Dividend policy

(2) Proposed dividend distribution for the current shareholders' meeting:

3.4 Impact Of Stock Dividends On Operating Performances And Earnings Per Share

3.5 Employees' And Directors' Compensation

3.5.1 Defined Ratios or Ranges For Employee And Director Remuneration In The Articles of Incorporation

3.5.2 Basis For Estimating Employee And Director Remuneration, Basis For Calculating The Number Of Shares In Share-Based Employee Compensation, And The Accounting Treatment If There Is A Discrepancy Between The Actual Distributed Amount And The Estimated Amount

3.5.3 Compensation Distribution Resolved By The Board Of Directors

3.5.4 Actual Distribution Of Employee And Director Remuneration In The Previous Year

3.6 Status Of Share Buybacks By The Financial Holding Company

3.8 Status Of Preferred Stock Issuance

First Financial Holding Co. Ltd. Annual Report 2025