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First Financial Holding Co. Ltd. Interim / Quarterly Report 2018

Sep 3, 2018

52222_rns_2018-09-03_3ab92fa6-5e77-4460-93b5-ea8947321610.pdf

Interim / Quarterly Report

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Macquarie HK NDR FFHC 1H 2018 Earnings Result

Sep. 4-6, 2018 Hong Kong

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Disclaimer

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

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

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

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Contents

  • Overview

  • At a Glance

  • Financial Highlight

  • Operating Results

  • Appendix

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Overview

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Overview of First Financial Holding

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

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

    • Strong deposit franchise and distribution channels – low funding cost & high CASA rate

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

2018/5/31

  • Deposit mkt share 5.3%

  • Loan mkt share 5.6%

  • FFHC asset size Top 8

  • SME Lending Top 1 (10.58%)

  • Trade Finance Top 3

  • Mutual fund sales Top 4

  • Custodian Top 1

  • Bank channels Top 2 (188 domestic /35 overseas)

Financial Summary

$mn, except per
share amounts		 2014 2015 2016 2017
Total Revenues 34,186 40,848 45,091 50,827
Net Income 14,078 15,962 17,284 15,432
EPS 1.43 1.48 1.42 1.27
ROAE (annualized) 9.53% 9.32% 9.10% 8.04%

2017 Financial Summary

in NT$ mn
First Commercial Bank Net Income 15,142
First Securities Net Income 272
First Sec. Investment Trust Net Income 70
First Life Insurance Net Income (103)
FFHC Ownership Profile
Government (Direct 18.94%; Indirect: 8.45%) 27.39% Other Investors: 45.37%
5
Foreign Institution:		 27.24% Data as of 2018/4/24

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At a Glance

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1H 2018 Snapshot

  • Surging fee & treasury gains lifted Bank’s net revenue by +8.8% YoY: WM business boosted fee income and SWAP trading gains resulted from interest rate gap between USD/TWD in 1H18 drove revenue up by +8.8% YoY.

  • F/X and mortgage led loan growth in 1H18, while SME book softened: Strong overseas loan demand kept F/X +12.5% YoY and correction on real estate market fueled mortgage lending (+6.8% YoY), while SME decelerated(+2.8% YoY) due to softened local macro in 1H18.

  • Higher provisioning in 1H18 to replenish loss-reserves:

Bank recorded 31 bps net credit cost in 1H18, mainly for re-filling provision pool which fell short of sector level, it shall gradually normalize in 2H18.

  • Excess liquidity continued to shift into SWAP, which cost 6bps of NIM: Similar to last quarter, interbank lending was substituted by SWAP to tap the higher US market rate. It cost NIM to drop to 1.21%.

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1H18 Financial Highlight

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1H18 Key Figures

Key Figures ( in NT$ dollar, NT$ mn, mn shares or %)
Consolidated Net Income1
Comprehensive Income
Total Assets
EPS
Book per share
Capital Stock
ROAE
3
ROAA
3
Group CAR4
Double Leverage5
1H17
9,6081
9,134
2,556,132
0.78
15.27
122,164
10.14%
0.76%
115.67%
107.55%
1H18
9,5801
10,187
2,869,642
0.78
16.03
123,386
9.66%
0.70%
121.35%
105.98%
YoY %
-0.3%
11.5%
12.2%
0.0%
5.0%
1.0%
-4.7%
-7.9%
5.7%
-1.6%
1H18 Net Income Breakdown1( in NT$ mn) Key Figures ( in NT$ dollar, NT$ mn, mn shares or %)
Consolidated Net Income1
Comprehensive Income
Total Assets
EPS
Book per share
Capital Stock
ROAE
3
ROAA
3
Group CAR4
Double Leverage5
1H17
9,6081
9,134
2,556,132
0.78
15.27
122,164
10.14%
0.76%
115.67%
107.55%
1H18
9,5801
10,187
2,869,642
0.78
16.03
123,386
9.66%
0.70%
121.35%
105.98%
YoY %
-0.3%
11.5%
12.2%
0.0%
5.0%
1.0%
-4.7%
-7.9%
5.7%
-1.6%
Banking
NT$9,203; 96.1%
Securities
NT$208;2.2%
Investment Trust
NT$42; 0.4 %
Others
NT$109; 1.1%
Insurance
NT$(49); -0.7%
AMC
NT$85; 0.9%

  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. Updated semi-annually.

  4. Double Leverage = Equity Investment / Shareholder Equity

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Net Income & Comprehensive Income

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1H18 Consolidated Net Income & Comprehensive Income (in NT$ mn)
Credit (2,644)
↑ 28.5% Insurance (6,821)
31,479 (9,465)
↓0.3% ↑ 11.5%
(11,129)
(1,305)
9,580 10,187
607
Net Revenue Provision Operating Income Tax Net Income Other Items Comprehensive
Expense Income
1H17 Consolidated Net Income & Comprehensive Income (in NT$ mn)
Credit (545)
Insurance (1,961)
24,506 (2,506) (10,723)
(1,669)
9,608 9,134
(474)
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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1H18 FFHC Net Income Breakdown (in NT$ mn)
↓ 0.3%
↓ 2.5%
9,580
9,203
208 42 85
(49)
First Bank First Securities FSITC First Life AMC FFHC
1H17 FFHC Net Income Breakdown (in NT$ mn)
9,608
9,442
FFHC (30)
Aviva (28) 83
124 28
(58)
First Bank First Securities FSITC First-Aviva AMC FFHC
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  • Major 5 subsidiaries were listed.

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1H18 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
9.28% 9.36% 9.47% 9.10% 8.92% 10.14% 10.29% 8.04% 9.16% 9.66%
17,284
14,832 15,432
13,407
8,746 9,608 9,580
4,406 4,309 4,592
3M 16 6M 16 9M 16 2016 3M 17 6M 17 9M 17 2017 3M18 6M18
First Bank Net Income & ROAE (in NT$ mn & %)
Cumulative Net Income Annualized ROAE
10.36% 9.86% 9.83% 9.46% 9.00% 10.00% 10.15% 7.91% 9.16% 9.34%
17,699
14,565 15,142
13,685
9,072 9,442 9,203
4,808 4,320 4,562
3M 16 6M 16 9M 16 2016 3M 17 6M 17 9M 17 2017 3M18 6M18
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1.Minority interests included

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FB 1H18 Pre-tax Profit

1H17
1H18
1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18
Cumulative Net Revenue
1H18 Cumulative Net Revenue(in NT$ mn or %)
% of FB Net Revenue(in %)
↓32.8%
z
Item
1H17
1H18
Change
NII
68.5%
62.8%
-5.7%
Net Fee
16.4%
15.9%
-0.5%
Gain on ST Invest.
0.5%
-0.2%
-0.7%
Gain on LT invest.
0.7%
0.8%
+0.1%
Gain on fin. Products
12.7%
18.7%
+6.0%
Others
1.2%
2.0%
+0.8%
Total Revenue
100.0%
100.0%
Provision Expense (net)
-2.5%
-11.5%
+9.0%
Operating Expense
-44.7%
-42.2%
-2.5%
Income Before Tax
52.8%
46.3%
-6.5%
Net Interest Income
Net Fee Income
Gains on
investment
Operating Expense
FB Revenue/Expense Comparison(in NT$ mn )
↓0.3%
↑ 5.6%
↑ 51.3%
+8.8%
14,309
3,428
2,904
9,342
14,271
3,620
4,393
4,106
9,594
2,265
1,734
1,494
Provision Exp.1
Recovery
20,887
22,733
1H17
1H18		 1H17
1H18
1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18
Cumulative Net Revenue
1H18 Cumulative Net Revenue(in NT$ mn or %)
% of FB Net Revenue(in %)
↓32.8%
z
Item
1H17
1H18
Change
NII
68.5%
62.8%
-5.7%
Net Fee
16.4%
15.9%
-0.5%
Gain on ST Invest.
0.5%
-0.2%
-0.7%
Gain on LT invest.
0.7%
0.8%
+0.1%
Gain on fin. Products
12.7%
18.7%
+6.0%
Others
1.2%
2.0%
+0.8%
Total Revenue
100.0%
100.0%
Provision Expense (net)
-2.5%
-11.5%
+9.0%
Operating Expense
-44.7%
-42.2%
-2.5%
Income Before Tax
52.8%
46.3%
-6.5%
Net Interest Income
Net Fee Income
Gains on
investment
Operating Expense
FB Revenue/Expense Comparison(in NT$ mn )
↓0.3%
↑ 5.6%
↑ 51.3%
+8.8%
14,309
3,428
2,904
9,342
14,271
3,620
4,393
4,106
9,594
2,265
1,734
1,494
Provision Exp.1
Recovery
20,887
22,733
1H17
1H18		 1H17
1H18
1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18
Cumulative Net Revenue
1H18 Cumulative Net Revenue(in NT$ mn or %)
% of FB Net Revenue(in %)
↓32.8%
z
Item
1H17
1H18
Change
NII
68.5%
62.8%
-5.7%
Net Fee
16.4%
15.9%
-0.5%
Gain on ST Invest.
0.5%
-0.2%
-0.7%
Gain on LT invest.
0.7%
0.8%
+0.1%
Gain on fin. Products
12.7%
18.7%
+6.0%
Others
1.2%
2.0%
+0.8%
Total Revenue
100.0%
100.0%
Provision Expense (net)
-2.5%
-11.5%
+9.0%
Operating Expense
-44.7%
-42.2%
-2.5%
Income Before Tax
52.8%
46.3%
-6.5%
Net Interest Income
Net Fee Income
Gains on
investment
Operating Expense
FB Revenue/Expense Comparison(in NT$ mn )
↓0.3%
↑ 5.6%
↑ 51.3%
+8.8%
14,309
3,428
2,904
9,342
14,271
3,620
4,393
4,106
9,594
2,265
1,734
1,494
Provision Exp.1
Recovery
20,887
22,733
1H17
1H18		 1H17
1H18
1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18
Cumulative Net Revenue
1H18 Cumulative Net Revenue(in NT$ mn or %)
% of FB Net Revenue(in %)
↓32.8%
z
Item
1H17
1H18
Change
NII
68.5%
62.8%
-5.7%
Net Fee
16.4%
15.9%
-0.5%
Gain on ST Invest.
0.5%
-0.2%
-0.7%
Gain on LT invest.
0.7%
0.8%
+0.1%
Gain on fin. Products
12.7%
18.7%
+6.0%
Others
1.2%
2.0%
+0.8%
Total Revenue
100.0%
100.0%
Provision Expense (net)
-2.5%
-11.5%
+9.0%
Operating Expense
-44.7%
-42.2%
-2.5%
Income Before Tax
52.8%
46.3%
-6.5%
Net Interest Income
Net Fee Income
Gains on
investment
Operating Expense
FB Revenue/Expense Comparison(in NT$ mn )
↓0.3%
↑ 5.6%
↑ 51.3%
+8.8%
14,309
3,428
2,904
9,342
14,271
3,620
4,393
4,106
9,594
2,265
1,734
1,494
Provision Exp.1
Recovery
20,887
22,733
1H17
1H18		 1H17
1H18
1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18
Cumulative Net Revenue
1H18 Cumulative Net Revenue(in NT$ mn or %)
% of FB Net Revenue(in %)
↓32.8%
z
Item
1H17
1H18
Change
NII
68.5%
62.8%
-5.7%
Net Fee
16.4%
15.9%
-0.5%
Gain on ST Invest.
0.5%
-0.2%
-0.7%
Gain on LT invest.
0.7%
0.8%
+0.1%
Gain on fin. Products
12.7%
18.7%
+6.0%
Others
1.2%
2.0%
+0.8%
Total Revenue
100.0%
100.0%
Provision Expense (net)
-2.5%
-11.5%
+9.0%
Operating Expense
-44.7%
-42.2%
-2.5%
Income Before Tax
52.8%
46.3%
-6.5%
Net Interest Income
Net Fee Income
Gains on
investment
Operating Expense
FB Revenue/Expense Comparison(in NT$ mn )
↓0.3%
↑ 5.6%
↑ 51.3%
+8.8%
14,309
3,428
2,904
9,342
14,271
3,620
4,393
4,106
9,594
2,265
1,734
1,494
Provision Exp.1
Recovery
20,887
22,733
1H17
1H18		 1H17
1H18
1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18
Cumulative Net Revenue
1H18 Cumulative Net Revenue(in NT$ mn or %)
% of FB Net Revenue(in %)
↓32.8%
z
Item
1H17
1H18
Change
NII
68.5%
62.8%
-5.7%
Net Fee
16.4%
15.9%
-0.5%
Gain on ST Invest.
0.5%
-0.2%
-0.7%
Gain on LT invest.
0.7%
0.8%
+0.1%
Gain on fin. Products
12.7%
18.7%
+6.0%
Others
1.2%
2.0%
+0.8%
Total Revenue
100.0%
100.0%
Provision Expense (net)
-2.5%
-11.5%
+9.0%
Operating Expense
-44.7%
-42.2%
-2.5%
Income Before Tax
52.8%
46.3%
-6.5%
Net Interest Income
Net Fee Income
Gains on
investment
Operating Expense
FB Revenue/Expense Comparison(in NT$ mn )
↓0.3%
↑ 5.6%
↑ 51.3%
+8.8%
14,309
3,428
2,904
9,342
14,271
3,620
4,393
4,106
9,594
2,265
1,734
1,494
Provision Exp.1
Recovery
20,887
22,733
1H17
1H18
Cumulative Net Revenue
+8.8%
20,887
22,733
1H17
1H18
Item
1H17		 1H18 Change
NII
68.5%		 62.8% -5.7%
Net Fee
16.4%		 15.9% -0.5%
Gain on ST Invest.
0.5%		 -0.2% -0.7%
Gain on LT invest.
0.7%		 0.8% +0.1%
Gain on fin. Products
12.7%		 18.7% +6.0%
Others
1.2%		 2.0% +0.8%
z
Total Revenue
100.0%		 100.0%
Provision Expense (net)
-2.5%		 -11.5% +9.0%
Operating Expense
-44.7%		 -42.2% -2.5%
FB Revenue/Expense Comparison(in NT$ mn ) Income Before Tax
52.8%		 46.3% -6.5%
  1. Gross Provision expense.

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FB 1H18 Loan Book Mix

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% of Loan Book [1]
1H18 Loan Book [1] (in NT$ bn or %)
Item 1H17 1H18 Change
Consumer 27.8% 28.4% +0.6%
1,630.6 Mortgage 26.0% 26.4% +0.4%
Other Consumer Loan 1.8% 2.0% +0.2%
Corporate Banking 72.2% 71.6% -0.6%
1,553.0 Commercial Loan 50.3% 48.2% -2.1%
+5.0%
--- SME 41.7% 40.8% -0.9%
Gov./SOE Loan 0.2% 0.2% -0.0%
F/X/ Loan 21.7% 23.2% +1.5%
1H17 1H18
Loan Book [1] --- Overseas 13.0% 14.1% +1.1%
Loan Book [1] 100.0% 100.0%
1H18 Loan Book [1] Breakdown (in NT$ bn ) 780.4 785.3 ↑ 0.6%
SME↑2.8%
↑ 6.8%
431.1 F/X ↑ 12.5%
378.9
SME [2] 336.8
SME [2]
665.9
647.8
403.6
Overseas Overseas
Overseas
28.7 32.3 3.4 3.0 201.2 230.7 ↑ 14.7%
1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18
Mortgage Other Consumer Gov./SOE Commercial Loan F/X Loan
Loan Loan
----- End of picture text -----

  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

15

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FB Loan Breakdown

-QoQ Comparison

FB Loan Growth(in NT$ bn) FB Loan Growth(in NT$ bn) FB Loan Growth(in NT$ bn) FB Loan Growth(in NT$ bn) FB Loan Growth(in NT$ bn) FB Loan Growth(in NT$ bn) QoQ%
+2.3%
+3.9%
+1.9%
+1.4%
-83.3%
+4.1%
↑1.6%		 QoQ%
+2.3%
+3.9%
+1.9%
+1.4%
-83.3%
+4.1%
↑1.6%
SME
Mortgage
Commercial
Loan

F/X loan
Total loan
Consumer Loan
Large Corp.
Gov./SOE		 336.8
350.2
352.8
364.1
378.9
~~3.4~~
0.4
0.0
18.0
~~3.0~~
132.7
124.0
125.7
117.8
119.4
647.8
655.4
657.8
653.2
665.9
29.0
30.9
31.1
32.3
403.6
405.0
414.7
421.5
431.1
28.7
1553.0
1564.1
1582.0
1605.6
1630.6		 QoQ%
+2.3%
+3.9%
+1.9%
+1.4%
-83.3%
+4.1%
↑1.6%
1553.0 1564.1 1582.0 1605.6 1630.6
336.8
350.2
352.8
364.1
~~3.4~~
0.4
0.0
18.0
132.7
124.0
125.7
117.8
647.8
655.4
657.8
653.2
29.0
30.9
31.1
403.6
405.0
414.7
421.5
28.7
+2.3%
+3.9%
+1.9%
+1.4%
-83.3%
378.9
~~.~~
+4.1%
2Q17
3Q17
4Q17
1Q18		 2Q18

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FB 1H18 LDR, SPREAD &NIM

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Total Loan & LDR (in NT$ bn or % ) Total Loan [1] LDR
78.56% 79.15% 79.04% 80.48% 79.92% 78.89% 79.28% 80.00%
76.62%
NTD 80.1%
F/X 66.1%
1,497.3 1,517.3 1,550.8 1,552.3 1,557.1 1,568.0 1,589.8 1,612.1 1,637.2
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
△
Loan-Deposit Spread / NIM ( in % ) Spread [2] NIM [2]
1.64% 1.64% 1.65% 1.63% 1.63% 1.64% 1.65% 1.63% 1.63%
1.26% 1.26% 1.26% 1.26% 1.26% 1.26% 1.26%
1.22%
1.21%
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
----- End of picture text -----

  1. Total Loan = loan + import/export negotiation + NALs

  2. Annual cumulative Average Spread and NIM

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FB 1H18 Loan Yields

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FB NTD Yields & Costs Overview ( in % ) Interest Spread (NTD)
Deposit Rate (NTD) Lending Rate (NTD)
1.48% 1.49% 1.49%
1.47%
1.45%
1.90% 1.91% 1.91% 1.88% 1.87%
0.42% 0.42% 0.42% 0.41% 0.42%
2Q17 3Q17 4Q17 1Q18 2Q18
FB FX Yields & Costs Overview ( in % ) Deposit Rate (FX) Lending Rate (FX)
Interest Spread (FX) 2.50% 2.43%
2.33% 2.35%
2.25%
3.51% 3.41% 3.66%
3.09% 3.25%
1.23%
0.84% 0.92% 1.01% 1.06%
2Q17 3Q17 4Q17 1Q18 2Q18
----- End of picture text -----

All rates are QUARTERLY* average rates.

18

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FB 1H18 Deposit Mix

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

FB Deposit Structure (in NT$ bn ) FB Deposit CASA Rate (in %)
NTD Deposit F/X deposit
NTD CASA rate
573.0 1H18 Total
518.4 Deposit
$2,136.2 bn △
69.16%
68.30%
67.12%
66.21%
65.31%
+9.7%
1,563.2
1,429.3
1H16 2016 1H17 2017 1H18
1H17 1H18
----- End of picture text -----

19

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Major Exposures Breakdown

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

End of 1H18 - % of Loan to Industries
4.55%
11.22%
4.42%
4.87%
10.74%
4.76%
Manufacturing; 25.62%
1H18
3.99%
Petro.
10.07% Total Exposures Tech.
$1,742.0 bn 5.42% Machinery
Metal
Other manufacturing
6.58% Individual(Mortgage included)
Real Estate
Wholesale/Retail
Transportation&Warehousing
33.38% Banking & Insurance
Others
----- End of picture text -----*

  1. Total exposures does not includes NALs and investment.

20

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FB 1H18 Mortgage Book

1H18 Mortgage by Location(in %)
Location
Loan%
NPL Ratio
TPE Metro
50%
0.22%
Taoyuan/Hsinchu
18%
0.23%
Taichung Area
11%
0.33%
Tainan Area
9%
0.20%
Kaohsiung Area
8%
0.08%
Eastern Area
4%
0.07%
Total
100.00%
0.21%
Location
Loan%
NPL Ratio
TPE Metro
50%
0.22%
Taoyuan/Hsinchu
18%
0.23%
Taichung Area
11%
0.33%
Tainan Area
9%
0.20%
Kaohsiung Area
8%
0.08%
Eastern Area
4%
0.07%
Total
100.00%
0.21%
↑4.3%
↑17.2%
SME2
317.0
SME2
305.0
Monthly New Mortgage Lending
Monthly New Mortgage Lending(in NT$mn)
5,278
6,536
7,235
6,965
8,879
10,322
9,205
5,977
9,357
8,473
10,071
8,274
7M17
8M17
9M17
10M17
11M17
12M17
1M18
2M18
3M18
4M18
5M18
6M18

21

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FB 1H18 Fee Income Breakdown

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

1H18 Cumulative Net Fee Income (in NT$ mn or %) % of Cumulative Net Fee
3,620 Item 1H17 1H18 Change
WM [1 ] 55.0% 58.0% +3.0%
Loan-related 17.1% 15.4% -1.7%
3,428 +5.6%
F/X 12.4% 11.8% -0.6%
Credit Card 5.6% 5.2% -0.4%
Other [2] 9.9% 9.6% -0.3%
1H17 1H18
Net Fee Income Cumulative Net Fee 100.0% 100.0%
1H18 Cumulative Net Fee Breakdown ( in NT$ mn )
↑ 11.5%
2,099
1,882 ↓5.1%
↓ 23.7%
557
587
425 426 189 342 349
192
↑3.0%
1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18
WM Fee [1] Loan-related F/X Credit Card Other [2]
----- End of picture text -----

  1. WM Fee = Custodian Fee + Trust-related Fee + Bancassurance Fee

  2. Other represents network service fee, including overseas branches

22

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FB Fee Income Breakdown

-QoQ Comparison

Wealth
MGT.*		 Fee Income(in NT$ mn) Fee Income(in NT$ mn)
342
528
681
474
429
493
94
94
95
94
94
97
285
302
355
284
252
305
211
214
223
209
217
85
107
100
118
93
96
164
178
197
156
172
177
525
512
520
466
378
446
215
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
Loan Related
Credit Card
F/X Related
Quarterly
fee income
Others
*
1,559
1,869
2,168
1,861
1,769
1,851
Mutual Fund
Custodian

Bacassurance**
  • Wealth Management Fee = Fund sales + Bancassurance + Custodian

*Other represents network service fee, including overseas branches

23

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FB 1H18 Cost-to-Income Ratio

9,341
9,594
1H17
1H18
Operating Expense
Cumulative Operating Expense (in NT$ mn )
2.7%		 Cost-to-Income Ratio Analysis( in NT$ mn) Cost-to-Income Ratio Analysis( in NT$ mn) Cost-to-Income Ratio Analysis( in NT$ mn)
1H18
Item
1H17
1H18
Net Revenue
20,887
22,733
Operating Expense
(9,342)		 (9,594)
Provision(Net)
(531)		 (2,612)
Income Tax
(1,572)		 (1,323)
Net Income
9,442
9,203

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

Quarterly Operating Expense & Cumulated Cost-to-Income Ratio ( in NT$ mn or % )
Net Revenue Operating Expense Cumulated Cost-to-Income Ratio
45.34%
44.73%
43.55% 43.03%
42.09% 42.20%
10,861 11,447 10,580 11,049 11,684
10,026
4,546 4,796 4,739 4,385 4,650 4,944
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
----- End of picture text -----

24

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FB 1H18 Asset Quality

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

NPL Amount, Reserve, Coverage (in NT$ mn or % )
Coverage Ratio LLR ratio (loan loss reserve/total loan, excluding gov.loan)
6 2 5 .1 4 %
5 3 7 .8 2 %
4 9 8 .4 4 % 5 0 0 .0 9 %
3 5 8 .5 6 %
3 2 1 .5 4 %
2 9 7 .7 3 %
1.38%
1.22% 1.18% 1.20% 1.20% 1.19% 1.20%
NPL Ratio NPL NPL Reserve
0.38% 0.40% 0.37%
0.22% 0.24% 0.24%
0.20%
21,922
18,973 18,205 18,561 18,762 19,030 19,626
6,114 6,392 6,104
3,035 3,385 3,724 3,752
2016 3M17 6M17 9M17 2017 3M18 6M18
----- End of picture text -----*

  • NTD 2,141 mn was recategorized from “allowance for loan losses” to “reserve for loan commitments” and other provision referring to IFRS9 since 2018.

25

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FB NPL Migration by Sectors

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

1
Individual & Mortgage NPL Ratios (in %) Large Corp. & SME NPL Ratios (in %)
Individual
Large Corp.
Mortagge
SME
0.39%
0.75% 0.70%
0.33% 0.32% 0.60%
0.29% 0.36%
0.38% 0.35%
0.31%
0.56% 0.48%
0.29% 0.22%
0.26% 0.37%
0.00% 0.00%
0.21%
2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18
Domestic NPL Ratio (in %) Overseas NPL Ratio (in %)
Domestic Overseas
0.47%
0.46%
0.45%
0.27% 0.28%
0.10%
0.07% 0.08%
0.05% 0.05%
2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18
----- End of picture text -----

  1. Individual: mortgage and non-mortgage loan included

  2. bad-debt recovery not included.

26

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FB New NPL Influx Breakdown
Breakdown of New NPL Influx(in NT$ mn）
Quarterly
NPL Influx
3Q17
4Q17
1Q18
2Q18
--- Domestic
880
3,159
2,660
1,444
--- Overseas
28
79
162
38
Total NPL Influx
908
3,238
2,822
1,482		 Quarterly Recovery Mix (in NT$ mn)
Quarterly
Recovery
3Q17
4Q17
1Q18
2Q18
--- Domestic
496
499
636
788
--- Overseas
1
25
33
13
--- Credit Card
14
13
12
12
Total Recovery
511
537
681
813
Quarterly
NPL Influx
3Q17
4Q17
1Q18
2Q18
--- Domestic
880
3,159
2,660
1,444
--- Overseas
28
79
162
38		 Quarterly
Recovery
3Q17
4Q17
1Q18
2Q18
--- Domestic
496
499
636
788
--- Overseas
1
25
33
13
--- Credit Card
14
13
12
12
Total NPL Influx
908
3,238
2,822
1,482		 Total Recovery
511
537
681
813
1,447
988
1,350
1,040
880
876
2,544
1,770
1,628
918
908
3,238
2,822
1,482
1,938
1,700
1,983
1,379
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
Quarterly New NPL Influx & Write-offs ( in NT$ mn)
Write-off
New NPL Influx

27

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FB 1H18 Overseas Profits

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

1H18 FB Total Pre-Tax Profit Mix ( in NT$ mn or %) 1H18 FB Total Pre-Tax Profit Mix ( in NT$ mn or %)
Total Pre-Tax
20.33% 41.22% Profit
$10,526 mn
OBU Taiwan Domestic Market;
HK 59.85%
1H18
North America
10.29% Overseas
Asean
$4,226 mn Others
14.62%
13.54% Other Overseas ; Greater China (including OBU) ;
13.93% 26.22%
Quarterly Overseas & Total PTP (in NT$ mn or %)
Overseas Total Cumulative Overseas PTP to FB Total PTP
36.16% 35.88% 36.77% 48.36% 40.15%
31.57%
5,984 5,965
5,030
5,420
5,106
630
1,818 2,134 2,292 2,272 1,612 2,614
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
----- End of picture text -----

28

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CAR & Core Capital

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

FFHC Group CAR(in %)
Re-cap.
153.43%
139.14% CAR
132.75% 131.84% 131.31%
125.34%
121.35%
115.66%
statutory CAR 100%
FB CAR & Core Capital(in %)
Re-cap. CAR
13.67% 13.46% 13.27% 12.82% 13.42% 13.21%
12.27%
11.50%
Tier 1
10.93% 10.86% 10.95% 10.64% 11.25% 11.08%
9.45%
9.02%
2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18
2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18
----- End of picture text -----

  • Leverage ceiling for holding companies in Taiwan: Double Leverage < 125% ; Debt Ratio < 30% •Updated semi-annually.

29

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Shareholder Return

2013
2014
2015
2016
2017
Cash dividend
0.50
0.70
0.95
1.20
0.90
Stock dividend
0.70
0.65
0.45
0.20
0.10
Total dividend
1.20
1.35
1.40
1.40
1.00
CASH Payout
ratio
42.4%
49.0%
64.2%
82.8%
70.9%
1.20
1.35
1.40
1.40
1.00
1.18
1.42
1.43
1.48
1.271
2013
2014
2015
2016
2017
FFHC Earnings Per Share ( in NT$ dollar )
EPS
Dividend
FFHC Dividend History( in NT$ dollar )
2013
2014
2015
2016
2017
Cash dividend
0.50
0.70
0.95
1.20
0.90
Stock dividend
0.70
0.65
0.45
0.20
0.10
Total dividend
1.20
1.35
1.40
1.40
1.00
CASH Payout
ratio
42.4%
49.0%
64.2%
82.8%
70.9%
  1. EPS is adjusted retroactively for stock dividends

30

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Appendix

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FFHC Consolidated Statement of Comprehensive Income

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FFHC Consolidated Statement of Comprehensive Income FFHC Consolidated Statement of Comprehensive Income FFHC Consolidated Statement of Comprehensive Income FFHC Consolidated Statement of Comprehensive Income FFHC Consolidated Statement of Comprehensive Income
FFHC Consolidated Statement of Comprehensive Income (in NT$ million or %)
Full Year Results Year-over-Year Comparison
2015
2016
2017
28,452
28,801
29,993
8,502
8,723
8,341
121
1,351
5,130
1,152
2,569
5,550
146
163
93
541
951
1,052		 1H17 1H18 Change
1.2%
7.3%
219.9%
-20.1%
26.8%
-100.0%
#DIV/0!
-23.8%
-700.8%
-38.2%
8.9%
28.5%
385.1%
247.8%
3.8%
-3.5%
-21.8%
-0.3%
-228.1%
11.5%
-0.6%
-100.0%
11.7%
0.0%
Net interest income
Net service fee & commission
Net Insurance revenue
Gain on financial assets meas.
at fair value through P/L
Real estate investment gain
Gain on AFS financial assets		 14,838
3,793
2,239
2,996
41
262		 15,010
4,069
7,162
2,394
52
0
Gain on financial assets at fair value
through other compre. income 0 740
Income from equity invest.
Net gain on F/X
Assets impairment loss
Others
Net Revenue
Net Provision for credit losses
Recovered(provided) for insurance res.
Operating Expense
Income from continued op. before tax
Income tax expenses
Consolidated net income		 (588)
(75)
138
1,707
935
(170)
(10)
(39)
(46)
825
1,712
746
40,848
45,091
50,827
(518)
(2,244)
(6,772)
540
(871)
(4,560)
(21,893)
(21,779)
(21,347)
18,976
20,197
18,148
(3,014)
(2,913)
(2,716)
15,962
17,284
15,432
413
(2,354)
(1,038)
16,375
14,930
14,394
16,006
17,356
15,483
(44)
(72)
(51)
16,461
15,023
14,380
(86)
(93)
14
1.48
1.42
1.27		 84
(239)
(34)
526
24,506
(545)
(1,961)
(10,723)
11,277
(1,669)
9,608		 64
1,436
(21)
573
31,479
(2,644)
(6,821)
(11,129)
10,885
(1,305)
9,580
Other Items
Comprehensive Income		 (474)
9,134		 607
10,187
Net Income attributed to:
Parent
Minorityinterests		 9,636
(28)		 9,580
0
Comprehensive Income attributed to:
Parent
Minorityinterests		 9,122
12		 10,187
0
EPS1(NT$)
0.78 0.78

32

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FFHC Non-consolidated Income Statement

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

in NT$ million, NT$, or %
Full Year Results Year-over-Year Comparison
2015 2016 2017 1H17 **1H18 ** Change
Operating revenues
Income from long-term investment 16,431 17,857 15,693 9,717 9,556 -1.7%
Other income1 213 242 246 203 175 -13.8%
Total revenues 16,644 18,099 15,939 9,920 9,731 -1.9%
Loss from long-term investment (114) (304) (53) (29) (49) 69.0%
Operating expenses (373) (338) (334) (177) (176) -0.6%
Other expenses and losses (192) (145) (118) (78) (41) -47.4%
Income from continued op. before tax 15,965 17,312 15,434 9,636 9,465 -1.8%
Income from continued op. after tax 16,006 17,356 15,483 9,636 9,580 -0.6%
Income from discontinued op., net of tax 0 0 0 0 0 --
Net income 16,006 17,356 15,483 9,636 9,580 -0.6%
EPS2(NT$) 1.48 1.42 1.27 0.78 0.78 0.0%

  1. Including income other than long-term investment

  2. EPS is adjusted retroactively for stock dividends

33

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FFHC Balance Sheet
~~FFHC Balance Sheet Summary~~
in NT$ million or million shares
1H17
1H18 Change
200,616
209,560
4.5%
214,941
217,806
1.3%
28,416
20,065
-29.4%
186,525
197,741
6.0%
2,556,132
2,869,642
12.3%
2,369,341
2,671,902
12.8%
186,791
197,741
5.9%
186,525
197,741
6.0%
266
0
-100.0%
119,769
122,164
2.0%
~~Year-over-Year Comparison~~
1H17 **1H18 ** Change
200,616
214,941
28,416
186,525
2,556,132
2,369,341
186,791
186,525
266
119,769		 209,560
217,806
20,065
197,741
2,869,642
2,671,902
197,741
197,741
0
122,164		 4.5%
1.3%
-29.4%
6.0%
12.3%
12.8%
5.9%
6.0%
-100.0%
2.0%

34

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FFHC Key Ratios

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

FFHC Key Ratios

FFHC Key Ratios
Full Year Results
2015
2016
2017
1H17
1H18 Change
0.66%
0.69%
0.60%
0.76%
0.70%
-7.9%
9.32%
9.10%
8.04%
10.14%
9.66%
-4.7%
16.37
16.01
15.70
15.58
16.03
2.9%
114,611
119,769
122,164
122,164
123,386
1.0%
105.23%
106.29%
107.40%
107.55%
105.98%
-1.5%
153.43%
139.14%
131.31%
115.67%
121.35%
4.9%
7.07%
6.53%
8.24%
13.22%
9.21%
-30.3%
Year-over-Year Comparison
1H17 **1H18 ** Change
After-tax ROAA (Annualized ratio)
After-tax ROAE (Annualized ratio)
Book Per Share
Capital Stock
Double leverage1
Group CAR2
Debt Ratio3		 0.76%
10.14%
15.58
122,164
107.55%
115.67%
13.22%		 0.70%
9.66%
16.03
123,386
105.98%
121.35%
9.21%		 -7.9%
-4.7%
2.9%
1.0%
-1.5%
4.9%
-30.3%
  1. Double leverage ratio = Long-term investment / Equity 2. Updated semi-annually. 3. Non-consolidated basis.

35

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FB Income Statement

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

2015
2016
2017
Net interest income
27,496
27,797
28,843
Net fee income
7,790
8,035
7,457
Net gain on ST invest.
(49)
274
398
Net gain on LT invest.
177
433
719
Net gain on other fin. products
2,823
4,344
5,256
Other net income
349
654
241
Net revenue
38,586
41,537
42,914
Operating expenses
(18,997)
(18,963)
(18,466)
Pre-provisiion pre-tax profit
19,589
22,574
24,448
Provision expense
(3,027)
(4,396)
(9,621)
Adjustment: bad-debt recovery
2,554
2,346
2,782
Income before tax
19,115
20,524
17,609
Income tax
(3,015)
(2,825)
(2,467)
Netincome
16,100
17,699
15,142
Other items
995
(2,100)
(1,214)
Comprehensiveincome
17,095
15,599
13,928
EPS
1.93
1.99
1.70
Full Year Results		 Year-over-Year Comparison Year-over-Year Comparison Year-over-Year Comparison
1H17 1H18 Change
14,309
3,428
104
150
2,650
246
20,887
(9,342)
11,545
(2,265)
1,734
11,014
(1,572)
9,442		 14,271
3,620
(46)
187
4,252
449
22,733
(9,594)
13,139
(4,106)
1,494
10,526
(1,323)
9,203		 -0.3%
5.6%
------
24.7%
60.5%
82.5%
8.8%
2.7%
13.8%
81.3%
-13.8%
-4.4%
-15.8%
-2.5%
(616)
8,825		 626
9,829		 -201.6%
11.4%
1.06 1.03 (0.03)

36

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FB Key Ratios

FB Key Ratios FB Key Ratios FB Key Ratios
FB Key Ratios
Full Year Results Year-over-Year Comarison
p
2015
2016
2017
1.63%
1.65%
1.65%
1.26%
1.26%
1.26%
45.53%
45.65%
43.03%
79.04%
79.04%
79.28%
0.19%
0.20%
0.38%
1.19%
1.16%
1.29%
1.40%
1.22%
1.38%
751.03%
625.14%
358.56%		 1H17 1H18
Loan to deposit spread
Net Interest Margin
Cost to income ratio3
Loan to deposit ratio1
NPL ratio
Gross Provision ratio
LLR ratio (excluding gov. loan)
Coverage ratio		 1.63%
1.26%
44.73%
79.92%
0.24%
1.14%
1.20%
498.44%		 1.63%
1.21%
42.20%
76.62%
0.37%
1.19%
1.20%
321.54%
CAR
Tier-1		 13.67%
13.27%
13.42%
10.93%
10.95%
11.25%		 12.82%
10.64%		 13.21%
11.08%
ROAA2
ROAE2
1. Loan to depoist ratio = total loan /
2. Annualized figures.		 0.69%
0.72%
0.60%
9.56%
9.46%
7.91%
total deposit		 0.76%
10.00%		 0.68%
9.34%

37

==> picture [181 x 31] intentionally omitted <==

FB Loan Quality

==> picture [74 x 399] intentionally omitted <==

~~FB NPL Migration~~ in NT$ million or %

~~F~~
i		 ~~NPL Migration~~
NT$ million or %
2016
2017
Q1
Q2
1H17
1H18
Change
L- beginning
2,761
3,035
6,114
6,392
3,035
6,114
101.4%
Net new NPL influx
6,166
7,225
2,822
1,482
3,079
4,304
39.8%
Domestic
4,611
6,744
2,660
1,444
2,705
4,104
51.7%
Overseas
1,555
481
162
38
374
200
-46.5%
Net write-offs
(5,892)
(4,146)
(2,544)
(1,770)
(2,390)
(4,314)
80.5%
L- ending balance
3,035
6,114
6,392
6,104
3,724
6,104
63.9%
owance for loan loss- beginning
20,738
18,973
19781
19,030
18,973
19,781
4.3%
Provisions for loan loss
4,238
7,429
1,832
2,020
2,149
3,852
79.2%
Net write-offs
(5,892)
(4,146)
(2,544)
(1,770)
(2,390)
(4,314)
80.5%
Others
(111)
(334)
(39)
346
(171)
307
--
owance for loan loss- ending
18,973
21,922
19,030
19,626
18,561
19,626
5.7%
covery from bad debt
2,346
2,782
681
813
1,734
1,494
-13.8%
Domestic
2,075
2,533
636
788
1,538
1424
-7.4%
Overseas
214
197
33
13
171
46
-73.1%
Credit card
57
52
12
12
25
24
-4.0%
Non-consolidated basis
NTD 2,141 mn was recategorized from “allowance for loan losses” to “reserve for loan commitments” and otherprovision referringto IFRS9 since 2018
Year-over-Year Comparison
2018 Quarterly
Full Year Results		 ~~NPL Migration~~
NT$ million or %
2016
2017
Q1
Q2
1H17
1H18
Change
L- beginning
2,761
3,035
6,114
6,392
3,035
6,114
101.4%
Net new NPL influx
6,166
7,225
2,822
1,482
3,079
4,304
39.8%
Domestic
4,611
6,744
2,660
1,444
2,705
4,104
51.7%
Overseas
1,555
481
162
38
374
200
-46.5%
Net write-offs
(5,892)
(4,146)
(2,544)
(1,770)
(2,390)
(4,314)
80.5%
L- ending balance
3,035
6,114
6,392
6,104
3,724
6,104
63.9%
owance for loan loss- beginning
20,738
18,973
19781
19,030
18,973
19,781
4.3%
Provisions for loan loss
4,238
7,429
1,832
2,020
2,149
3,852
79.2%
Net write-offs
(5,892)
(4,146)
(2,544)
(1,770)
(2,390)
(4,314)
80.5%
Others
(111)
(334)
(39)
346
(171)
307
--
owance for loan loss- ending
18,973
21,922
19,030
19,626
18,561
19,626
5.7%
covery from bad debt
2,346
2,782
681
813
1,734
1,494
-13.8%
Domestic
2,075
2,533
636
788
1,538
1424
-7.4%
Overseas
214
197
33
13
171
46
-73.1%
Credit card
57
52
12
12
25
24
-4.0%
Non-consolidated basis
NTD 2,141 mn was recategorized from “allowance for loan losses” to “reserve for loan commitments” and otherprovision referringto IFRS9 since 2018
Year-over-Year Comparison
2018 Quarterly
Full Year Results		 ~~NPL Migration~~
NT$ million or %
2016
2017
Q1
Q2
1H17
1H18
Change
L- beginning
2,761
3,035
6,114
6,392
3,035
6,114
101.4%
Net new NPL influx
6,166
7,225
2,822
1,482
3,079
4,304
39.8%
Domestic
4,611
6,744
2,660
1,444
2,705
4,104
51.7%
Overseas
1,555
481
162
38
374
200
-46.5%
Net write-offs
(5,892)
(4,146)
(2,544)
(1,770)
(2,390)
(4,314)
80.5%
L- ending balance
3,035
6,114
6,392
6,104
3,724
6,104
63.9%
owance for loan loss- beginning
20,738
18,973
19781
19,030
18,973
19,781
4.3%
Provisions for loan loss
4,238
7,429
1,832
2,020
2,149
3,852
79.2%
Net write-offs
(5,892)
(4,146)
(2,544)
(1,770)
(2,390)
(4,314)
80.5%
Others
(111)
(334)
(39)
346
(171)
307
--
owance for loan loss- ending
18,973
21,922
19,030
19,626
18,561
19,626
5.7%
covery from bad debt
2,346
2,782
681
813
1,734
1,494
-13.8%
Domestic
2,075
2,533
636
788
1,538
1424
-7.4%
Overseas
214
197
33
13
171
46
-73.1%
Credit card
57
52
12
12
25
24
-4.0%
Non-consolidated basis
NTD 2,141 mn was recategorized from “allowance for loan losses” to “reserve for loan commitments” and otherprovision referringto IFRS9 since 2018
Year-over-Year Comparison
2018 Quarterly
Full Year Results		 ~~NPL Migration~~
NT$ million or %
2016
2017
Q1
Q2
1H17
1H18
Change
L- beginning
2,761
3,035
6,114
6,392
3,035
6,114
101.4%
Net new NPL influx
6,166
7,225
2,822
1,482
3,079
4,304
39.8%
Domestic
4,611
6,744
2,660
1,444
2,705
4,104
51.7%
Overseas
1,555
481
162
38
374
200
-46.5%
Net write-offs
(5,892)
(4,146)
(2,544)
(1,770)
(2,390)
(4,314)
80.5%
L- ending balance
3,035
6,114
6,392
6,104
3,724
6,104
63.9%
owance for loan loss- beginning
20,738
18,973
19781
19,030
18,973
19,781
4.3%
Provisions for loan loss
4,238
7,429
1,832
2,020
2,149
3,852
79.2%
Net write-offs
(5,892)
(4,146)
(2,544)
(1,770)
(2,390)
(4,314)
80.5%
Others
(111)
(334)
(39)
346
(171)
307
--
owance for loan loss- ending
18,973
21,922
19,030
19,626
18,561
19,626
5.7%
covery from bad debt
2,346
2,782
681
813
1,734
1,494
-13.8%
Domestic
2,075
2,533
636
788
1,538
1424
-7.4%
Overseas
214
197
33
13
171
46
-73.1%
Credit card
57
52
12
12
25
24
-4.0%
Non-consolidated basis
NTD 2,141 mn was recategorized from “allowance for loan losses” to “reserve for loan commitments” and otherprovision referringto IFRS9 since 2018
Year-over-Year Comparison
2018 Quarterly
Full Year Results		 ~~NPL Migration~~
NT$ million or %
2016
2017
Q1
Q2
1H17
1H18
Change
L- beginning
2,761
3,035
6,114
6,392
3,035
6,114
101.4%
Net new NPL influx
6,166
7,225
2,822
1,482
3,079
4,304
39.8%
Domestic
4,611
6,744
2,660
1,444
2,705
4,104
51.7%
Overseas
1,555
481
162
38
374
200
-46.5%
Net write-offs
(5,892)
(4,146)
(2,544)
(1,770)
(2,390)
(4,314)
80.5%
L- ending balance
3,035
6,114
6,392
6,104
3,724
6,104
63.9%
owance for loan loss- beginning
20,738
18,973
19781
19,030
18,973
19,781
4.3%
Provisions for loan loss
4,238
7,429
1,832
2,020
2,149
3,852
79.2%
Net write-offs
(5,892)
(4,146)
(2,544)
(1,770)
(2,390)
(4,314)
80.5%
Others
(111)
(334)
(39)
346
(171)
307
--
owance for loan loss- ending
18,973
21,922
19,030
19,626
18,561
19,626
5.7%
covery from bad debt
2,346
2,782
681
813
1,734
1,494
-13.8%
Domestic
2,075
2,533
636
788
1,538
1424
-7.4%
Overseas
214
197
33
13
171
46
-73.1%
Credit card
57
52
12
12
25
24
-4.0%
Non-consolidated basis
NTD 2,141 mn was recategorized from “allowance for loan losses” to “reserve for loan commitments” and otherprovision referringto IFRS9 since 2018
Year-over-Year Comparison
2018 Quarterly
Full Year Results		 ~~NPL Migration~~
NT$ million or %
2016
2017
Q1
Q2
1H17
1H18
Change
L- beginning
2,761
3,035
6,114
6,392
3,035
6,114
101.4%
Net new NPL influx
6,166
7,225
2,822
1,482
3,079
4,304
39.8%
Domestic
4,611
6,744
2,660
1,444
2,705
4,104
51.7%
Overseas
1,555
481
162
38
374
200
-46.5%
Net write-offs
(5,892)
(4,146)
(2,544)
(1,770)
(2,390)
(4,314)
80.5%
L- ending balance
3,035
6,114
6,392
6,104
3,724
6,104
63.9%
owance for loan loss- beginning
20,738
18,973
19781
19,030
18,973
19,781
4.3%
Provisions for loan loss
4,238
7,429
1,832
2,020
2,149
3,852
79.2%
Net write-offs
(5,892)
(4,146)
(2,544)
(1,770)
(2,390)
(4,314)
80.5%
Others
(111)
(334)
(39)
346
(171)
307
--
owance for loan loss- ending
18,973
21,922
19,030
19,626
18,561
19,626
5.7%
covery from bad debt
2,346
2,782
681
813
1,734
1,494
-13.8%
Domestic
2,075
2,533
636
788
1,538
1424
-7.4%
Overseas
214
197
33
13
171
46
-73.1%
Credit card
57
52
12
12
25
24
-4.0%
Non-consolidated basis
NTD 2,141 mn was recategorized from “allowance for loan losses” to “reserve for loan commitments” and otherprovision referringto IFRS9 since 2018
Year-over-Year Comparison
2018 Quarterly
Full Year Results
n
2016
2017
2,761
3,035
6,166
7,225
4,611
6,744
1,555
481
(5,892)
(4,146)
3,035
6,114
20,738
18,973
4,238
7,429
(5,892)
(4,146)
(111)
(334)
18,973
21,922
2,346
2,782
2,075
2,533
214
197
57
52
Full Year Results		 Q1
Q2
6,114
6,392
2,822
1,482
2,660
1,444
162
38
(2,544)
(1,770)
6,392
6,104
19781
19,030
1,832
2,020
(2,544)
(1,770)
(39)
346
19,030
19,626
681
813
636
788
33
13
12
12
2018 Quarterly*		 Year-over-Year Comparison
1H17 1H18 Change
NP




NP
All



All
Re

 L- beginning
Net new NPL influx
Domestic
Overseas
Net write-offs
L- ending balance
owance for loan loss- beginning
Provisions for loan loss
Net write-offs
Others
owance for loan loss- ending
covery from bad debt
Domestic
Overseas
Credit card		 3,035
3,079
2,705
374
(2,390)
3,724
18,973
2,149
(2,390)
(171)
18,561
1,734
1,538
171
25		 6,114
4,304
4,104
200
(4,314)
6,104
19,781*
3,852
(4,314)
307
19,626
1,494
1424
46
24		 101.4%
39.8%
51.7%
-46.5%
80.5%
63.9%
4.3%
79.2%
80.5%
--
5.7%
-13.8%
-7.4%
-73.1%
-4.0%
1.
*

  1. Non-consolidated basis

  2. NTD 2,141 mn was recategorized from “allowance for loan losses” to “reserve for loan commitments” and other provision referring to IFRS9 since 2018

38

==> picture [181 x 31] intentionally omitted <==

First Sec. Operating Report
Fir
in		 st S
NT$		 ec Income Statement Summary
million or %		 First Sec Income Statement Summary
in NT$ million or %
2014
Full Yr		 2015
2016
2017
Full Year Results
1H17 1H18
B
N
U
P
O
T
Tot
No
Inc
Inc		 roker
et int
nder
ricipl
ther
otal o
al op
n-ope
ome
ome t		 age commission
erest income
writing commission
e transaction gains, net
operating income
perating income
erating expenses
rating income
before tax
ax		 803
335
38
187
63
1,426
(1,367)
54
114
(40)		 Brokerage commission
753
645
849
Net interest income
315
292
306
Underwriting commission
53
23
38
Transaction gains through F/V, net
217
(12)
227
Other operating income
125
93
107
Total operating income
1463
1,041
1,527
Total operating expenses
(1,363)
(1,288)
(1,301)
Non-operating income
64
42
72
Income before tax
164
(205)
298
Income tax
10
(24)
(26)		 357
143
27
165
28
720
(613)
31
138
(14)		 483
160
24
172
10
849
(645)
40
245
(36)
Cu
prin		 mmul
ciple		 ative effect of change in accounting
s		 0 Cummulative effect of change in
accounting principles
0
0
0		 0 0
Net inco me 74 Netincome
174
(229)
272		 124 208
Fir st S ec Key Ratios First Sec Key Ratios
RO
RO
Bro
Mar		 AE (
AA (A
kerag
gin lo		 Annualized)
nnualized)
e market share
an market share		 1.14%
0.40%
1.57%
2.41%		 ROAE (Annualized)
2.65%
-3.65%
4.41%
ROAA (Annualized)
0.92%
-1.30%
1.55%
Brokerage market share
1.58%
1.45%
1.48%
Margin loan market share
2.64%
2.99%
2.77%		 4.08%
1.46%
1.54%
2.95%		 6.55%
2.01%
1.45%
2.49%

39

==> picture [181 x 31] intentionally omitted <==

FSITC Operating Report

FSITC Income Statement Summary in NT$ million or %

Year-over-Year Comparison Year-over-Year Comparison Year-over-Year Comparison
1H17 1H18 Change
230
2
232
(202)
3
34
(6)
28
0		 314
4
318
(271)
5
51
(9)
42
0		 36.5%
100.0%
37.1%
34.2%
66.7%
50.0%
50.0%
50.0%
#DIV/0!
Netincome
102
64
70		 28 42 50.0%
y
FSITC Key Ratios
AUM
97,016
94,461
101,095
AUM Ranking
8
8
8		 104,703
6		 102,179 -2.4%
7
1. Non-consolidated basis

40

==> picture [181 x 31] intentionally omitted <==

First Life Operating Report

First Life Financial Results Summary in NT$ million or %

in NT$ million or %
1H17 1H18
6,051
5,634
131
286
(5,859)
(19)
(1,752)
(3,694)
(339)
(55)
(269)
(60)
(209)
0		 11,527
11,431
157
(61)
(11,259)
(23)
(7,217)
(3,432)
(500)
(87)
(325)
(93)
(232)
0
Profit/Loss of Operation
(89)
(150)
(129)
Non-Operating Profit
0
0
0		 (77)
0		 (56)
0
Profit/Loss Before Tax
(89)
(150)
(129)
(77)
Income tax
(1)
3
26
19
Net Income after tax
(90)
(147)
(103)
(58)
Key Ratios
ROAE(Annualized ratio)
-11.26%
-23.91%
-19.39%
-21.77%
ROAA(Annualized ratio)
-0.28%
-0.45%
-0.30%
-0.36%
* FFHC claims 51% of First-Aviva operating results in 2015,2016, and 2017.		 (56)
7
(49)
-8.44%
-0.24%

41

==> picture [720 x 7] intentionally omitted <==

==> picture [375 x 44] intentionally omitted <==

Q&A

==> picture [720 x 26] intentionally omitted <==

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