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First Financial Holding Co. Ltd. Interim / Quarterly Report 2015

May 15, 2015

52222_rns_2015-05-15_110b0c55-99b1-413d-a295-05382cb24483.pdf

Interim / Quarterly Report

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First Financial Holding 1Q 2015 Earnings Result

May 28, 2015

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Disclaimer

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

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

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

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Contents

- At a Glance

  • Financial Highlight

  • Operating Results

  • Appendix

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At a Glance

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  • Earnings Firmed on Solid Margin and Surging Fees. Recovered FX lending spread underpinned NII despite a flattish loan book in Q1. Revitalized Greater China equity market boosted WM fees. Subdued credit cost thank to ultra low NPL influx.

  • Bank Overseas Expansion Achieved Laos & Xiemen: Vientiane branch at Laos grand-opened in March, the very frontier Taiwanese Bank to create more business opportunities. Xiemen branch is the 3[rd] presences in China, linking our triangle service platform.

： Resumed Dividend Payout NT$ 0.70 Cash Dividend and NT$0.65 Stock Dividend. (Subject to AGM approval scheduled June 26, 2015)

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2015 1Q Performance Summary

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Net Interest Income, Fee Income (NT$ mn )
Net Interest Income Fee Income
6,601 6,712 6,926 6,899 6,762
1,406 1,525 1,705 1,554 1,590
？
1Q14 2Q14 3Q14 4Q14 1Q15
EPS
ROAA ROAE
(in NT$)
6.3%
3.1%
12.5%
0.68% 10.52% 0.54
1Q14: 0.64% 1Q14: 10.20% 1Q14: 0.48
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1Q 2015 Financial Highlight

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1Q 2015 Key Figures


Key Figures ( in NT$ dollar, NT$ mn, mn shares or %)
1Q14
3,6551
4,701
2,306,450
0.40
16.80
86,535
10.20%
0.64%
123.76%
103.34%
Consolidated Net Income1
Comprehensive Income
Total Assets
EPS
Book per share
Capital Stock
ROAE
3
ROAA
3
Group CAR4
Double Leverage5
1Q15
4,1091
3,617
2,356,943
0.44
17.02
92,593
10.52%
0.68%
132.91%
108.93%
YoY %
12.4%
-23.1%
2.2%
10.0%
1.3%
7.0%
3.1%
6.3%
7.4%
5.6%
1Q15 Net Income Breakdown1( in NT$ mn)
Key Figures ( in NT$ dollar, NT$ mn, mn shares or %)
1Q14
3,6551
4,701
2,306,450
0.40
16.80
86,535
10.20%
0.64%
123.76%
103.34%
Consolidated Net Income1
Comprehensive Income
Total Assets
EPS
Book per share
Capital Stock
ROAE
3
ROAA
3
Group CAR4
Double Leverage5
1Q15
4,1091
3,617
2,356,943
0.44
17.02
92,593
10.52%
0.68%
132.91%
108.93%
YoY %
12.4%
-23.1%
2.2%
10.0%
1.3%
7.0%
3.1%
6.3%
7.4%
5.6%
Banking
NT$4,100; 99.8%
Securities
NT$36; 0.9%
Investment Trust
NT$35; 0.9%
Others
NT$(132);-3.2%
Insurance
NT$1; 0.0%
AMC
NT$69; 1.6%

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

  2. Comprehensive Income Statement is required by IFRS.

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

  4. Double Leverage = Equity Investment / Shareholder Equity

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Net Income & Comprehensive Income

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1Q15 Consolidated Net Income & Comprehensive Income (in NT$ mn)
Credit 58
Insurance 891
949
9,272 (5,279) ↑12.4%
(833)
4,109 3,617
(492)
Net Revenue Provision Operating Income Tax Net Income Other Items Comprehensive
Expense Income
1Q14 Consolidated Net Income & Comprehensive Income (in NT$ mn)
Credit (836)
Insurance (310)
10,269
(1,146) (4,846)
(622) 3,655 4,701
1,046
Net Revenue Provision Operating Income Tax Net Income Other Items Comprehensive
Expense Income
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Net Income Breakdown by Subsidiaries*

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1Q15 FFHC Net Income Breakdown (in NT$ mn)
↑ 12.4%
↑15.7%
4,100 4,109
FFHC 0.5
Aviva 0.5
36 35 1 69
First Bank First Securities FSITC First-Aviva First AMC FFHC
1Q14 FFHC Net Income Breakdown (in NT$ mn)
3,543 FFHC (5) 3,655
Aviva (5)
123 28 (10) 61
First Bank First Securities FSITC First-Aviva First AMC FFHC
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  • Major 5 subsidiaries were listed.

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1Q 2015 Operating Results

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FFHC & First Bank Profitability -After Tax

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FFHC Net Income & ROAE (in NT$ mn & %)
Cumulative Net Income Annualized ROAE
11.42%
10.20% 10.73% 10.52%
9.20% 8.80% 9.48% 9.13% 9.53%
7.73% 7.94%
14,078
9,016 10,118 9,293 10,877 8,205 11,705
6,361
2,970 3,655 4,109
9M 12 2012 3M 13 6M 13 9M 13 2013 3M 14 6M 14 9M 14 2014 3M 15
First Bank Net Income & ROAE (in NT$ mn & %)
Cumulative Net Income Annualized ROAE
9.73% 8.58% 9.44% 9.84% 9.49% 8.35% 10.60% 11.10% 10.60% 9.40% 10.56%
13,381
10,375 10,645 10,936
8,880 8,977
7,527
6,144
2,962 3,543 4,100
9M 12 2012 3M 13 6M 13 9M 13 2013 3M 14 6M 14 9M 14 2014 3M 15
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1.Minority interests included

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FB 1Q 15 Pre-tax Profit

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||||||||
|---|---|---|---|---|---|---|
|1Q15 Cumulative Net Revenue|(in NT$ mn or %)|% of FB Net Revenue (in %)|
|Item|1Q14|1Q15|Change|
|NII|73.1%|73.5%|+0.4%|
|Net Fee|15.6%|17.3%|+1.7%|
|9,202|
|Gain on ST Invest.|0.1%|0.2%|+0.1%|
|Gain on LT invest.|1.3%|0.9%|-0.4%|
|+1.9%|
|9,032|Gain on fin. Products|10.0%|7.2%|-2.8%|
|Others|-0.1%|0.9%|+1.0%|
|Total Revenue|100.0%|100.0%|
|1Q14|1Q15|Provision Expensez|[1 ]|-17.4%|-7.7%|-9.7%|
|Adjustment :Recovery|+7.9%|+8.5%|+0.6%|
|Cumulative Net Revenue|
|Operating Expense|-45.2%|-47.8%|+2.6%|
|Income Before Tax|45.3%|53.0%|+7.7%|
|FB Revenue/Expense Comparison|(in NT$ mn )|
|6,601|6,762|↑2.4%|
|↑7.7%|
|4,404|
|↑13.1%|↓ 55.1%|4,087|
|↓ 25.6%|
|↑ 9.5%|
|↓32.8% 1,406|1,590|1,028|765|1,571|705|
|713|781|
|1Q14 1Q15 1Q14 1Q15 1Q14 1Q15 1Q14 1Q15 1Q14 1Q15 1Q14 1Q15|
|Gains on|
|Net Interest Income|Net Fee Income|Provision Exp.|[1 ]|Recovery|Operating Exp.|
|investment|

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  1. Gross Provision Expense.

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FB 1Q15 Loan Book Mix

391.8
17.0
72.4
388.5
20.8
37.8
319.1
678.5
306.4
686.9
1Q141Q15 1Q141Q15 1Q141Q15 1Q141Q15 1Q14 1Q15
↓0.8%
↑ F/X4.1%
↓47.8%
1Q15 Loan Book1 (in NT$ bn or %)
1Q15 Loan Book1 Breakdown(in NT$ bn )
Mortgage
Other Consumer
Loan
Gov./SOE Loan
Commercial
Loan
F/X Loan
1,466.0
1,453.0
1Q14 1Q15
Loan Book1
-0.9%
Item
1Q14
1Q15
Change
Consumer
27.9%
28.2%
+0.3%
Mortgage
26.7%
26.7%
0.0%
Other Consumer Loan
1.2%
1.5%
+0.3%
Corporate Banking
72.1%
71.8%
-0.3%
Commercial Loan
46.3%
47.3%
+1.0%
--- SME
36.8%
39.1%
+2.3%
F/X/ Loan
20.9%
21.9%
+1.0%
--- Overseas
10.2%
10.6%
+0.4%
Gov./SOE Loan
4.9%
2.6%
-2.3%
Loan Book1
100.0%
100.0%
% of Loan Book1
↑1.2%
SME2
538.8
SME2
568.5
Overseas
149.1
SME↑5.5%
Overseas
154.7
Oversea
↑ 3.8%
↑ 22.4%		 s

  1. Loan Book does not include NALs

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

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FB Loan Breakdown

-QoQ Comparison

FB Loan Growth(in NT$ bn) FB Loan Growth(in NT$ bn) QoQ% YoY%
-0.8%
-0.8%
-0.9%
+22.4%
-1.9%
-15.2%
-2.9%
+5.5%
-4.7%
+4.1%
-1.9%
-47.9%		 QoQ% YoY%
-0.8%
-0.8%
-0.9%
+22.4%
-1.9%
-15.2%
-2.9%
+5.5%
-4.7%
+4.1%
-1.9%
-47.9%		 QoQ% YoY%
-0.8%
-0.8%
-0.9%
+22.4%
-1.9%
-15.2%
-2.9%
+5.5%
-4.7%
+4.1%
-1.9%
-47.9%
~~40.4~~
72.4
46.3
~~41.9~~
~~38.5~~
~~37.8~~
293.0
306.4
317.5
330.9
334.9
319.1
523.5
538.8
562.7
571.9
585.5
568.5
165.7
139.7
130.0
133.0
132
118.4
17.1
17.0
18.5
19.6
21.0
20.8
393.3
391.8
392.2
391.1
391.5
388.5
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
Gov/SOE
SME
Mortgage
Commercial
Loan1
1433.0
1466.0
1467.2
1488.4
1503.4
1453.0
F/X loan
Total loan
1
Other Con.
Loan		 QoQ% YoY%
-0.8%
-0.8%
-0.9%
+22.4%
-1.9%
-15.2%
-2.9%
+5.5%
-4.7%
+4.1%
-1.9%
-47.9%
-0.8% -0.8%
-0.9% +22.4%
-1.9% -15.2%
-2.9% +5.5%
-4.7% +4.1%
-1.9% -47.9%
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15

1.Commercial loan includes SME.

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FB 1Q15 LDR, SPREAD &NIM

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Total Loan & LDR (in NT$ bn or % )
Total Loan [1 ] LDR [2 ]
89.49%
88.51% 88.29%
86.54%
84.51% 84.49%
83.50% 83.48% 83.03%
80.21%
1,445.2 1,437.3 1,449.2 1,447.7 1,439.9 1,470.6 1,470.9 1,491.8 1,507.1 1,456.2
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
△
Loan-Deposit Spread / NIM ( in % )
Spread [3 ] NIM [3 ]
1.60%
1.52% 1.53% 1.54% 1.55% 1.55% 1.55% 1.55% 1.55%
1.49%
1.28% 1.28% 1.28% 1.28% 1.29%
1.26% 1.26% 1.26% 1.26%
1.21%
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
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  1. Total Loan = loan + import/export negotiation + NALs

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

  3. Annual cumulative Average Spread and NIM

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FB 1Q15 Loan Yields

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FB NTD Yields & Costs Overview ( in % ) Interest Spread (NTD)
Deposit Rate (NTD) Lending Rate (NTD) 1.60%
1.59%
1.56%
1.53%
1.52% 1.52%
2.15% 2.13% 2.12% 2.16% 2.20% 2.18%
0.61% 0.61% 0.60% 0.60% 0.60% 0.59%
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
FB FX Yields & Costs Overview ( in % ) Deposit Rate (FX) Lending Rate (FX)
1.75%
Interest Spread (FX)
1.65% 1.67%
1.65%
1.59%
1.45%
2.52% 2.65% 2.51% 2.52%
2.38%
2.29%
0.87% 0.98% 0.92% 0.84% 0.88%
0.64%
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
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All rates are QUARTERLY* average rates.

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Major Exposures Breakdown

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End of 1Q15 - % of Loan to Industries
6.14% 13.42%
11.00% 5.25%
5.52% Manufacturing; 27.90%
1Q15
7.48%
Petro.
6.00%
Total Exposures
Metal
$1,456 bn Tech.
3.26%
3.56% Machinery
Other manufacturing
Individual(Mortgage included)
6.51%
Construction
Real Estate
Wholesale/Retail
31.86%
Transportation&Warehousing
Others
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  1. Total loan does not includes NALs.

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FB 1Q15 Mortgage Book

1Q15 Mortgage by Location (in %)
Location
1Q15
North
TPE Metro
70%
54%
Taoyuan/Hsinchu/
Mioli
16%
Central
10%
Taichung
South
16%
Tainan/Kaohsiung
East
4%
Total
100.0%
Mortgage NPL(in % )
↑4.3%
↑17.2%
SME2
317.0
SME2
305.0

Monthly New Mortgage Lending
Monthly New Mortgage Lending(in NT$mn)
6,213
6,368
6,535
6,725
6,077
5,359
5,507
5,975
4,945
7,086
5,645
3,937
5,513
YoY% -11.3%
3M14
4M14
5M14
6M14
7M14
8M14
9M14
10M14
11M14
12M14
1M15
2M15
3m15

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FB 1Q15 Fee Income Breakdown

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1Q15 Cumulative Net Fee Income (in NT$ mn or %) % of Cumulative Net Fee
Item 1Q14 1Q15 Change
1,590 WM [1 ] 47.3% 54.0% +6.7%
F/X 15.9% 13.5% -2.4%
Other [2 ] 14.4% 12.2% -2.2%
1,406 +13.1%
Loan-related 15.9% 13.6% -2.3%
Credit Card 6.5% 6.7% +0.2%
1Q14 1Q15
Cumulative Net Fee 100.0% 100.0%
Net Fee Income
1Q15 Cumulative Net Fee Breakdown ( in NT$ mn )
↑ 29.2%
859
665 ↓3.6% ↓4.0% ↓3.9%
↑16.5%
↓ 23.7%
216
224 223 214 106 203 195
91
↑3.0%
1Q14 1Q15 1Q14 1Q15 1Q14 1Q15 1Q14 1Q15 1Q14 1Q15
WM Fee [1 ] Loan-related F/X Credit Card Other [2 ]
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  1. WM Fee = Custodian Fee + Trust-related Fee + Bancassurance Fee

  2. Other represents network service fee, including overseas branches

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FB Fee Income Breakdown

-QoQ Comparison

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Fee Income (in NT$ mn)
1,705 QoQ% +2.3%
1,525 1,554 1,590
1,465
1,406
Fee
Income
248
195
206
197 100
203
Others 203 95 106
100
237
95
Credit Card 91 237 214
243
F/X 251
223 250
216
Related
221
232
Loan 237 100 91
224
Related 93 91 QoQ +9.1%
Custodian 86 84
770 768
704 Mutual fund
660
Fund& Banca. 594 581 & Bancassur.
Wealth
MGT.
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
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  • Wealth Management Fee = Fund sales + Bancassurance + Custodian

  • *Other represents network service fee, including overseas branches

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FB 1Q15 Overseas Profits

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1Q15 FB Overseas Pre-Tax Profit Mix ( in NT$ mn or 1Q15 FB Total Pre-Tax Profit Mix ( in NT$ mn or %)
% )
7.9% Total Pre-Tax
10.3%
48.3% Profit
OBU $4,873 mn
Shanghai
Taiwan Market;
Chengdu 62.5%
1Q15
Macau
Overseas
14.8% $1,829 mn HK
North America
Asean
Other overseas; Greater China; 25.1%
Others 12.4%
11.2%
5.5%
1.5%
Quarterly Overseas & Total PTP (in NT$ mn or %)
Overseas Total Cumulative Overseas PTP to FB Total PTP
30.6% 44.0% 34.6% 44.8% 37.5%
28.8%
19.9%
4,642 4,873
4,087 3,967
3,166
3,496
1,675
150 1,447 1,932 1,910 1,725 1,545 1,829
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
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  • Data stated in accordance with T-IFRS.

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FB 1Q15 Cost-to-Income Ratio

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1Q15 Cumulative Operating Expense (in NT$ mn ) Cost-to-Income Ratio Analysis( in NT$ mn)
Item 1Q14 1Q15
Sales Tax raised
4,404 Net Revenue 9,032 9,202
Operating Expense (4,087) (4,404)
4,087 +7.7%
Provision(Net) (858) 76
Income Tax (544) (773)
1Q14 1Q15
Net Income 3,543 4,100
Operating Expense
Quarterly Operating Expense & Cumulated Cost-to-Income Ratio ( in NT$ mn or % )
Net Revenue Operating Expense Cost-to-Income Ratio
49.38% 49.63%
47.27% 47.86%
45.25% 45.49% 45.39%
9,956
8,715 8,288 9,032 9,256 9,276 9,202
4,002 4,176 4,087 4,232 4,501 4,916 4,404
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
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  • Data stated in accordance with T-IFRS.

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FB 1Q15 Asset Quality

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NPL Amount, Reserve, Coverage (in NT$ mn or % ) Gross Provision Ratio
(loss reserve against performing loan)
LLR ratio (loan loss reserve/total loan, 680.71% 710.06%
Coverage Ratio
excluding gov.loan)
521.72% 504.28%
453.05%
261.73%
191.46%
1.29% 1.26% 1.34% 1.31% 1.37% 1.37% 1.39%
1.20% 1.20% 1.26% 1.24% 1.26%
1.04% 1.09%
NPL Ratio NPL NPL Reserve
0.64%
0.47%
0.28% 0.26%
0.24%
0.20% 0.19%
17,778 17,730
18,813 18,637 19,933 20,089 19,699
9,286
6,774
4,152 3,572 3,953 2,951 2,774
9M13 2013 3M14 6M14 9M14 2014 3M15
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FB NPL Migration by Sectors

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1
Individual & Mortgage NPL Ratios (in %) Large Corp. & SME NPL Ratios (in %)
Individual Large Corp.
Mortagge SME
0.22%
0.50% 0.45%
0.20% 0.22%
0.19% 0.39% 0.35%
0.18% 0.18% 0.31%
0.19% 0.19%
0.17% 0.17% 0.20% 0.09% 0.26% 0.03% 0.02%
1Q14 2Q14 3Q14 4Q14 1Q15 1Q14 2Q14 3Q14 4Q14 1Q15
Domestic NPL Ratio (in %) Overseas NPL Ratio (in %)
Domestic Overseas
0.30%
0.28%
0.25%
0.21% 0.27%
0.20% 0.23%
0.13% 0.14%
0.08%
1Q14 2Q14 3Q14 4Q14 1Q15
1Q14 2Q14 3Q14 4Q14 1Q15
----- End of picture text -----

  1. Individual: mortgage and non-mortgage loan included

  2. bad-debt recovery not included.

25

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FB New NPL Influx Breakdown

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----- Start of picture text -----

Breakdown of New NPL Influx (in NT$ mn ） Quarterly Recovery Mix (in NT$ mn)
Quarterly
2Q14 3Q14 4Q14 1Q15 Quarterly
NPL Influx 2Q14 3Q14 4Q14 1Q15
Recovery
--- Domestic 619 1,140 39 426
--- Domestic 553 486 216 651
--- Overseas (30) 11 200 404
--- Overseas 101 26 102 115
--- Credit Card 15 14 14 15
Total NPL Influx 589 1,151 239 830
Total Recovery 669 526 332 781
Quarterly New NPL Influx & Write-offs ( in NT$ mn)
Write-off New NPL Influx
0.15%
0.09%
2,710 2,695 0.07%
0.00% 0.00% 0.00%
1,3881,397 676 525 1,169 589 770 1,151 1,241 1,007 830
183 239
(2,097)
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
----- End of picture text -----

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CAR & Core Capital

==> picture [628 x 397] intentionally omitted <==

----- Start of picture text -----

FFHC Group CAR(in %)
CAR
132.91%
125.55% 125.34%
123.00% 123.04%
121.24%
119.40%
117.05%
115.14%
statutory CAR 100%
FB CAR & Core Capital(in %)
CAR
12.36%
11.51% 11.50%
10.94% 11.03% 10.90% 10.88%
10.14% 10.44%
Tier 1
9.46%
9.02%
8.28% 8.23% 8.41% 8.34% 8.31% 8.64%
6.82%
1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1Q15
1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1Q15
----- End of picture text -----

  • •Leverage ceiling for holding companies in Taiwan: Double Leverage < 125% ; Debt Ratio < 30% •*Preliminary Data for 1Q15

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Shareholder Return

2012
2013
2014
0.45
0.50
0.70
0.65
0.70
0.65
1.10
1.20
1.35
38.1%
42.4%
46.1%
1.20
1.10
1.20
1.18
1.18
1.52
2012
2013
2014
1
2
0.90
1.00
1.02
1.08
2010
2011
FFHC Earnings Per Share ( in NT$ dollar )
EPS
Dividend		 1.20
1.10
1.20
1.18
1.18
1.52
2012
2013
2014
1
0.90
1.02
2010
EPS
Dividend
2010 2011
dollar )
FFHC Dividend History ( in NT$
2010 2011 2012
2013
2014
2
Cash dividend
0.30		 0.40 0.45
0.50
0.70
Stock dividend
0.60		 0.60 0.65
0.70
0.65
Total dividend
0.90		 1.00 1.10
1.20
1.35
CASH Payout
ratio
29.4%		 39.6% 38.1%
42.4%
46.1%

  1. EPS is adjusted retroactively for stock dividends.

  2. 2014’s dividend proposal is subject to final approval at 2015 AGM meeting on June 26,

28

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Appendix

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FFHC Consolidated Statement of Comprehensive Income

FFHC Consolidated Statement of Comprehensive Income (in NT$ million or %)

 FFHC Consolidated Statement of Comprehensive Income (in NT$ million or %)

 FFHC Consolidated Statement of Comprehensive Income (in NT$ million or %)

 FFHC Consolidated Statement of Comprehensive Income (in NT$ million or %)

 FFHC Consolidated Statement of Comprehensive Income (in NT$ million or %)

 FFHC Consolidated Statement of Comprehensive Income (in NT$ million or %)

 FFHC Consolidated Statement of Comprehensive Income (in NT$ million or %)
~~TW-GAPP~~ ~~IFRS~~
2013
2014
Net interest income
25,932
28,278
Net service fee & commission
6,632
7,428
Net Insurance revenue
688
(6,533)
Gain on financial assets meas.
859
1,373
at fair value through P/L
Real estate investment gain
88
172
Gain on AFS financial assets
315
417
Income from equity invest.
97
(26)
Net gain on F/X
1,368
2,172
Assets impairment loss
3
(6)
Others
484
911
Net Revenue
36,466
34,186
Net Provision for credit losses
(4,047)
(4,015)
Recovered(provided) for insurance re
(397)
7,101
Operating Expense
(18,973)
(20,789)
Income from continued op. before
13,049
16,483
Income tax expenses
(2,172)
(2,405)
Consolidated net income
10,877
14,078
Other Items
1,262
3,420
Comprehensive Income
12,139
17,497
Net Income attributed to:
Parent
10,889
14,085
Minorityinterests
(12)
(7)
Comprehensive Income attributed to:
Parent
12,242
17,542
Minorityinterests
(104)
(45)
EPS1(NT$)
1.18
1.52		 ~~YOY Comparison~~
1Q14
1Q15
Change
6,875
6,993
1.7%
1,740
1,937
11.3%
402
(709)
--
464
553
19.2%
27
35
29.6%
34
137
302.9%
38
(5)
--
603
161
-73.3%
(5)
0
--
91
170
86.8%
10,269
9,272
-9.7%
(836)
58
--
(310)
891
--
(4,846)
(5,279)
8.9%
4,277
4,942
15.5%
(622)
(833)
33.9%
3,655
4,109
12.4%
1,046
(492)
--
4,701
3,617
--
3,660
4,109
12.3%
(5)
0
--
4,703
3,625
-22.9%
(2)
(8)
300.0%
0.40
0.44
10.0%
2012 1Q14 1Q15 Change
Interest income
36,544
Less: Interest expenses
(12,422)
Net interest income
24,122
Net service fee & commission
5,954
Net Insurance revenue
695
Gain on financial assets measured
1,363
at fair value through P/L
Gain on AFS financial assets
360
Gain on HTM financial assets
0
Income from equity invest.
256
Real estate investment gain
0
Net gain on F/X
651
Others
3,258
Net non-interest income
12,537
Net revenues
36,659
Provision for credit losses
(5,890)
Reserve for insurance
(656)
Operating expenses
(18,084)
Other expenses
0
Income from continued op. before tax
12,029
Income tax expenses
(1,911)
Income from continued op. after tax
10,118
Income from discountinued op., net of
0
Cummulative effect of change
0
in accounting principle
Consolidated net income
10,118
EPS1(NT$)
1.25
Net income attributable to parent
10,174
Minority interests
(56)		 6,875
1,740
402
464
27
34
38
603
(5)
91
10,269
(836)
(310)
(4,846)
4,277
(622)
3,655		 6,993
1,937
(709)
553
35
137
(5)
161
0
170
9,272
58
891
(5,279)
4,942
(833)
4,109		 1.7%
11.3%
--
19.2%
29.6%
302.9%
--
-73.3%
--
86.8%
-9.7%
--
--
8.9%
15.5%
33.9%
12.4%
Other Items
Comprehensive Income		 1,046
4,701		 (492)
3,617		 --
--
Net Income attributed to:
Parent
Minorityinterests		 3,660
(5)		 4,109
0		 12.3%
--
Comprehensive Income attributed to:
Parent
Minorityinterests		 4,703
(2)		 3,625
(8)		 -22.9%
300.0%
EPS1(NT$)
0.40 0.44 10.0%

Note: Data from 2013 are stated in accordance with IFRS, whereas prior years are with ROC GAAP. The same basis applied to all appendix pages.

30

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FFHC Non-consolidated Income Statement

FFHC Standalone Income Statement Summary in NT$ million, NT$, or %

in NT$ million, NT$, or %
2012
2013
2014
Full Year Results		 Year-over-Year Comparison
1Q14 **1Q15 ** Change
Operating revenues
Income from long-term investment
10,641
11,112
13,904
Other income1
252
226
289
Total revenues
10,893
11,339
14,194
Loss from long-term investment
(291)
(12)
(8)
Operating expenses
(231)
(233)
(264)
Other expenses and losses
(145)
(145)
(159)
Income from continued op. before tax
10,226
10,949
13,763
Income from continued po. after tax
10,226
10,889
14,085
Income from discontinued op., net of t
0
0
0
Net income
10,226
10,889
14,085
EPS2(NT$)
1.18
1.18
1.52		 3,784
11
3,795
(5)
(62)
(69)
3,659
3,659
0
3,659
0.40		 4,247
8
4,255
0
(70)
(76)
4,109
4,109
0
4,109
0.44		 12.2%
-27.3%
12.1%
100.0%
-12.9%
-10.1%
12.3%
12.3%
--
12.3%
10.0%

  1. Including income other than long-term investment

  2. EPS is adjusted retroactively for stock dividends

31

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FFHC Balance Sheet

FFHC Balance Sheet Summary in NT$ million or million shares

Full Year Results Year Results Year-over-Year Comparison Year-over-Year Comparison Year-over-Year Comparison
2012 2013 2014 1Q14 **1Q15 ** Change
Non-consolidated Balance Sheet Data
Long-term investment 137,633 145,469 167,888 150,291 171,651 14.2%
Total non-consolidated assets 141,300 151,546 172,071 156,738 174,808 11.5%
Total liabilities 9,156 10,817 18,126 11,306 17,238 52.5%
Total shareholders' equity 132,144 140,729 153,945 145,432 157,570 8.3%
Conolidated Balance Sheet Data
Total consolidated assets 2,124,279 2,263,385 2,355,709 2,306,450 2,356,943 2.2%
Total liabilities 1,991,555 2,122,179 2,201,332 2,160,543 2,198,949 1.8%
Total shareholders' equity 132,724 141,206 154,377 145,907 157,994 8.3%
Parent's shareholders' equity 132,143 140,729 153,945 145,432 157,570 8.3%
Minority interests 581 477 432 475 424 -10.7%
Current shares outstanding 81,254 86,535 92,593 86,535 92,593 7.0%

*figures may not match due to rounding

32

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FFHC Key Ratios

==> picture [36 x 242] intentionally omitted <==

FFHC Key Ratios 2012
2013
2014
0.48%
0.50%
0.61%
7.86%
7.94%
9.53%
16.26
16.26
16.63
81,254
86,535
92,593
104.15%
103.37%
109.06%
125.55%
123.04%
125.34%
6.48%
7.14%
10.53%
Full Year Results
Year-over-Year Comparison
1Q14 **1Q15 ** Change
After-tax ROAA (Annualized ratio)
After-tax ROAE (Annualized ratio)
Book Per Share
Capital Stock
Double leverage1
Group CAR2
Debt Ratio3		 0.64%
10.20%
16.80
86,535
103.34%
123.76%
7.21%		 0.68%
10.52%
17.02
92,593
108.93%
132.91%
9.86%		 6.3%
3.1%
1.3%
7.0%
5.6%
9.1%
36.8%

  1. Double leverage ratio = Long-term investment / Equity

  2. Updated semi-annually.

  3. Non-consolidated basis.

33

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FB Income Statement

FB Comprehensive Income Statement Summary(Standalone) in NT$ million or %

TW-GAPP
2012
Net revenue
Net interest income
23,003
Net fee income
4,931
Net gain on ST invest.
162
Net gain on LT invest.
633
Net gain on other fin. products
2,141
Bad debts recovery
2,415
Other net income
446
Net revenue
33,731
Operating expenses
(15,730)
Provision
(5,809)
Income before tax
12,192
Income tax
(1,817)
Income after tax
10,375
Cummulative effect of change
0
in accounting principle
Net income
10,375		 2013
2014
1Q14
1Q15
Change
Net interest income
24,865
27,138
6,601
6,762
2.4%
Net fee income
5,397
6,190
1,406
1,590
13.1%
Net gain on ST invest.
76
(151)
7
19
171.4%
Net gain on LT invest.
711
666
115
84
-27.0%
Net gain on other fin. products
1,887
3,496
906
662
-26.9%
Other net income
(160)
181
(3)
84
--
Net revenue
32,776
37,520
9,032
9,201
1.9%
Operating expenses
(16,269)
(17,736)
(4,087)
(4,404)
7.8%
Pre-provisiion pre-tax profit
16,507
19,784
4,945
4,797
-3.0%
Provision expense
(7,090)
(6,161)
(1,571)
(705)
-55.1%
Adjustment: bad-debt recov
3,168
2,240
713
781
9.5%
Income before tax
12,584
15,862
4,087
4,873
19.2%
Income tax
(1,940)
(2,481)
(544)
(773)
42.1%
Netincome
10,645
13,381
3,543
4,100
15.7%
Other items
1,165
3,242
816
(420)
---
Comprehensiveincome
11,810
16,623
4,359
3,680
40.8%
EPS
1.44
1.81
0.48
0.54
25.7%
YoY Comparison
IFRS

*starting from 2013, data are stated in accordance with IFRS.

34

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FB Key Ratios

FB Key Ratios FB Key Ratios
~~FB Key Ratios~~
2012
2013
2014
1Q14
Loan to deposit spread
1.49%
1.55%
1.55%
1.55%
Net Interest Margin
1.21%
1.26%
1.28%
1.28%
Cost to income ratio4
51.39%
49.63%
47.27%
45.25%
Loan to deposit ratio1
89.49%
83.50%
83.03%
84.51%
NPL ratio
0.44%
0.47%
0.20%
0.28%
Gross Provision ratio
--
1.09%
1.24%
1.20%
LLR Ration ( excluding gov. loan)
1.17%
1.26%
1.37%
1.34%
Coverage ratio
248.97%
261.73%
680.71%
453.05%
CAR
11.51%
10.90%
11.50%
10.89%
Tier-1
8.41%
8.31%
9.02%
8.52%
ROAA2
0.51%
0.50%
0.60%
0.64%
ROAE2
8.69%
8.35%
9.40%
10.60%
1. Loan to depoist ratio = total loan / total deposit
2. Annualized figures.
3. Starting from 2013, data are illustrated with T-IFRS.

35

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FB Loan Qualit y

FB NPL Migration in NT$ million or %

FB NPL Migration
in NT$ million or %
2012
2013
2014
1Q14
1Q15
Change
NPL- beginning
6,373
6,423
6,774
6,774
2,951
-56.4%
Net new NPL influx
3,493
5,341
(118)
(2,097)
830
-139.6%
Net write-offs
(3,443)
(4,990)
(3,705)
(525)
(1,007)
91.8%
NPL- ending balance
6,423
6,774
2,951
4,152
2,774
-33.2%
Allowance for loan loss- beginning
13,886
15,992
17,730
17,730
20,089
13.3%
Provisions for loan loss
5,705
6,693
5,863
1,549
683
-55.9%
Net write-offs
(3,443)
(4,990)
(3,705)
(525)
(1,007)
91.8%
Others
(156)
35
201
59
(66)
211.9%
Allowance for loan loss- ending
15,992
17,730
20,089
18,813
19,699
4.7%
NPL ratio
0.44%
0.47%
0.20%
0.28%
0.19%
-0.1%
Coverage ratio
248.97%
261.73%
680.75%
453.05%
710.06%
257.0%
General Provision Ratio
1.17%
1.26%
1.37%
1.34%
1.39%
0.0%
Tier 1 Asset Provision Ratio
--
1.09%
1.24%
1.20%
1.26%
0.1%
1. Non-consolidated basis
Year-over-Year Comparison
Full Year Result
  1. Non-consolidated basis

36

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First Sec. Operating Report

First Securities Financial Results Summ

in NT$ million or %
Fi t Sriti Finnil Rlt Smm

37

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FSITC Operating Report

FSITC Income Statement Summary in NT$ million or %

2012
2013
2014
Full Yeart Res		 2012
2013
2014
Full Yeart Res		 Year-over-Year Comparison Year-over-Year Comparison Year-over-Year Comparison
1Q14 1Q15 Change
Total operating income
Management fee
479
485
513
Sales service fee
1
1
1
Total operating income
480
486
514
Operating expenses
(358)
(370)
(433)
Non-operating income
9
8
14
Income before tax
131
124
95
Income tax
(22)
(21)
(16)
Income after tax
109
103
79
Cummulative effect of change in accounting principle
0
0
0
Netincome
109
103
79		 118
1
119
(91)
5
33
(5)
28
0
28		 125
1
126
(88)
4
42
(7)
35
0
35		 -75.6%
--
-75.5%
-79.7%
-71.4%
-55.8%
-56.3%
-55.7%
--
-55.7%
y
FSITC Key Ratios
AUM
81,568
74,577
72,651
AUM Ranking
8
10
11
1. Non-consolidated basis		 72,134
12
.		 81,196
11

38

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– First Aviva Operating Report

~~First-Aviva Financial Results Summary~~ in NT$ million or %

~~First-Aviva Financial Results Summar~~ ~~First-Aviva Financial Results Summar~~
~~y~~
in NT$ million or %
2012
2013
2014
1Q14
1Q15
Change
Income Statement Summary
Operating Revenue
7,333
10,338
14,903
2,974
4,045
44.2%
Premium Income
6,381
9,301
13,436
2,462
3,934
44.5%
Other insurance income
42
82
136
25
46
65.9%
Net Investment Income
910
955
1,331
487
65
39.4%
Operating Cost
(7,085)
(9,979)
(14,506)
(2,888)
(3,926)
45.4%
Reinsurance commission
(10)
(13)
(20)
(4)
(6)
53.8%
Reserves
(3,002)
(4,741)
(1,623)
(1,558)
(1,542)
-65.8%
Claims
(3,825)
(4,864)
(12,230)
(1,222)
(2,197)
151.4%
Commission
(248)
(361)
(633)
(104)
(181)
75.3%
Others
0
0
0
0
0
--
Operating Expenses
(364)
(383)
(422)
(96)
(118)
10.2%
Sales related expenses
(60)
(59)
(88)
(14)
(27)
49.2%
Management expenses
(300)
(304)
(309)
(76)
(84)
1.6%
Other expense
(4)
(20)
(25)
(6)
(7)
25.0%
Profit/Loss of Operation
(116)
(24)
(25)
(10)
1
-4.2%
Non-Operating Profit
0
0
11
0
0
--
Profit/Loss Before Tax
(116)
(24)
(14)
(10)
1
41.7%
Income tax
0
0
(1)
0
0
--
Net Income after tax
(116)
(24)
(15)
(10)
1
37.5%
Key Ratios
ROAE(Annualized ratio)
-9.29%
-2.21%
-1.60%
-4.04%
0.20%
--
ROAA(Annualized ratio)
-0.51%
-0.09%
-0.05%
-0.12%
0.00%
--
FFHC claims 51% of First-Aviva operating results.
Year-over-Year Comparison
Full Year Res*
  • FFHC claims 51% of First-Aviva operating results.

39

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CSR Awards

British Standards Institution (BSI)

The BSI has verified First Financial Holding’s 2014 CSR Report in Core Track of G4 version.

Securities & Futures Institute (SFI)

The SFI evaluated A++ to First Financial Holding on “12[th] Listed and OTC-listed Companies Information Disclosure”.

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GreatVision Magazine

First Financial Holding was awarded by GreatVision Magazine for “11[th] GreatVision CSR Award” & “ Environmental-Friendly Award” in 2015

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Taiwan Corporate Sustainability Awards

Awarded the “7[th] Taiwan Top 50 Corporate Sustainability Report Awards” as the category of Large Enterprises, Financial Industry.

Taiwan Stock Exchange Corporation

Awarded the “1[st] Corporate Governance Evaluation for Top 5% among Listed Companies”.

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40

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Q&A

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