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First Financial Holding 20191Q Earnings Result

May 31, 2019

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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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1Q19 Snapshot

 1Q19 Group Posted a bottom-line growth by +4.8% YoY: Bank’s earnings grew by +3.5% YoY in 1Q19, in which fee income & trading gains remained decent path, First-Life also turned positive since inception post one-year merging anniversary.

• 1Q19 Loan growth remained solid by +6.5% YoY, driven by F/X and

• mortgage; 1Q19 deposit grew by +10.2%, driven by NTD (+13.5%): F/X loan grew by +11.4% YoY, especially from overseas loan book. Mortgage also grew by +7.3% YoY, both pillars delivered loan expansion in 1Q19; ample liquidity inflow also made 1Q19 bancassurance fee grew by +19.8% YoY.

• Treasury gains continued to blossom (+75.9% YoY) in 1Q19, mainly driven

• by bullish capital markets & fixed-income trading given SWAP gap shrank. Surging market boosted 1Q19 treasury gains despite US paused ratehike and SWAP gap narrowed.

• Dividend payout at NTD 1.0 cash and NTD 0.1 stock:

A proposal of NTD 1.0 cash dividend and NTD 0.1 stock dividend under 1.40 EPS in 2018 is subject to AGM approval.

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1Q19 Financial Highlight

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1Q19 Key Figures

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. Preliminary data for 1Q19.

4. Double Leverage = Equity Investment / Shareholder Equity

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Net Income & Comprehensive Income

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1Q19 Consolidated Net Income & Comprehensive Income (in NT$ mn)
↑ 3.5%
15,621
(1,393)
(2,722) ↑ 4.8% ↑175.26 %
(5,696)
8,891
(1,000) 4,810
Net Revenue Credit Charge Insurance Operating Income Tax Net Income Comprehensive
Reserves Expense Income
1Q18 Consolidated Net Income & Comprehensive Income (in NT$ mn)
15,098
(1,289)
(3,259)
(5,391)
(567)
4,592
3,230
Net Revenue Credit Charge Insurance Operating Income Tax Net Income Comprehensive
Reserves Expense Income
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Net Income Breakdown by Subsidiaries*

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1Q19 FFHC Net Income Breakdown (in NT$ mn)
↑ 4.8%
↑ 3.4%
4,810
4,715
53 21 43 39
First Bank First Securities FSITC First Life AMC FFHC
1Q18 FFHC Net Income Breakdown (in NT$ mn)
4,592
4,562
83 23 46
(67)
First Bank First Securities FSITC First Life AMC FFHC
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• Major 5 subsidiaries were listed.

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1Q19 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
8.92% 10.14% 10.29% 8.04% 9.16% 9.66% 9.49% 8.58% 9.16%
17,332
14,832 15,432 14,304
9,608 9,580
4,309 4,592 4,810
3M 17 6M 17 9M 17 2017 3M18 6M18 9M18 2018 3M 19
First Bank Net Income & ROAE (in NT$ mn & %)
Cumulative Net Income Annualized ROAE
9.00% 10.00% 10.15% 7.91% 9.16% 9.34% 9.39% 8.71% 9.00%
17,531
14,565 15,142 14,106
9,442 9,203
4,320 4,562 4,715
3M 17 6M 17 9M 17 2017 3M 18 6M 18 9M 18 2018 3M 19
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FB 1Q19 Pre-tax Profit

1. Gross Provision expense.

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FB 1Q19 Loan Book Mix

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% of Loan Book [1]
1Q19 Loan Book [1] (in NT$ bn or %)
Item 1Q18 1Q19 Change
Consumer 28.2% 28.6% +0.4%
1,709.5
Mortgage 26.3% 26.5% +0.2%
Other Consumer Loan 1.9% 2.1% +0.2%
Corporate Banking 71.8% 71.4% -0.4%
1,605.6 Commercial Loan 48.0% 47.5% -0.5%
+6.5%
--- SME 40.7% 39.2% -1.5%
Gov./SOE Loan 1.1% 0.2% -0.9%
F/X/ Loan 22.7% 23.7% +1.0%
1Q18 1Q19
Loan Book [1] --- Overseas 13.8% 14.3% +0.5%
Loan Book [1] 100.0%
1Q19 Loan Book [1] Breakdown (in NT$ bn ) 811.3 ↑ 5.2%
771.0
SME↑2.5%
↑ 7.3%
F/X ↑ 11.4%
452.4
421.5 405.6
364.1
SME [2]
SME [2]
669.7
653.2
Overseas Overseas
Overseas
31.1 36.2 18.0 4.1 221.3 244.6 ↑ 10.5%
1Q18 1Q19 1Q18 1Q19 1Q18 1Q19 1Q18 1Q19 1Q18 1Q19
Mortgage Other Consumer Gov./SOE Commercial Loan F/X Loan
Loan Loan
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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

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FB 1Q19 LDR, SPREAD &NIM

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Total Loan & LDR (in NT$ bn or % ) Total Loan [1] LDR
80.48% 79.92% 78.89% 79.28% 80.00% 78.71% NTD 79.0%
76.62% 76.58% 77.28% F/X 71.4%
1,552.3 1,557.1 1,568.0 1,589.8 1,612.1 1,637.2 1,663.5 1,703.2 1,715.6
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 2018 1Q19
△
Loan-Deposit Spread / NIM ( in % ) Spread [2] NIM [2]
1.63% 1.63% 1.64% 1.65% 1.63% 1.63% 1.64% 1.64% 1.62%
1.26% 1.26% 1.26% 1.26%
1.22% 1.21% 1.20% 1.18%
1.08%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 2018 1Q19
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1. Total Loan = loan + import/export negotiation + NALs

2. Annual cumulative Average Spread and NIM

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FB 1Q19 Loan Yields

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FB NTD Yields & Costs Overview ( in % ) Interest Spread (NTD)
Deposit Rate (NTD) Lending Rate (NTD)
1.47%
1.45%
1.44%
1.42%
1.40%
1.88% 1.87% 1.86% 1.84% 1.82%
0.41% 0.42% 0.42% 0.42% 0.42%
1Q18 2Q18 3Q18 4Q18 1Q19
FB FX Yields & Costs Overview ( in % ) Deposit Rate (FX) Lending Rate (FX)
Interest Spread (FX)
2.43% 2.46% 2.44% 2.44%
2.35%
3.83% 3.92% 4.05%
3.41% 3.66%
1.61%
1.37% 1.47%
1.23%
1.06%
1Q18 2Q18 3Q18 4Q18 1Q19
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All rates are QUARTERLY* average rates.

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FB 1Q19 Deposit Mix

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FB Deposit Structure (in NT$ bn ) FB Deposit CASA Rate (in %)
NTD Deposit F/X deposit
NTD CASA rate
568.1
+1.6%
559.0 69.16%
68.30% 67.87% 68.07%
67.12%
△
1Q19 Total
Deposit
$2,219.5 bn
+10.2% YoY
+13.5% 1,651.4
1,455.5
1H17 2017 1H18 2018 1Q19
1Q18 1Q19
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Major Exposures Breakdown

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End of 1Q19 - % of Loan to Industries
4.65%
11.36%
4.32%
4.74%
10.29%
4.78%
Manufacturing; 25.73%
1Q19 3.97%
Petro.
9.92%
Total Exposures Tech.
$1,811.0 bn 5.76% Machinery
Metal
Other manufacturing
6.48% Individual(Mortgage included)
Real Estate
Wholesale/Retail
Transportation&Warehousing
33.73% Banking & Insurance
Others
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1. Total exposures does not includes NALs and investment.

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FB 1Q19 Mortgage Book

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FB 1Q19 Fee Income Breakdown

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1Q19 Cumulative Net Fee Income (in NT$ mn or %) % of Cumulative Net Fee
Item 1Q18 1Q19 Change
1,814 WM [1 ] 59.0% 54.6% -4.4%
Loan-related 14.2% 17.9% +3.7%
+2.5%
1,769 F/X 11.8% 11.0% -0.8%
Credit Card 5.3% 5.0% -0.3%
Other [2] 9.7% 11.5% +1.8%
1Q18 1Q19
Net Fee Income Cumulative Net Fee 100.0% 100.0%
1Q19 Cumulative Net Fee Breakdown ( in NT$ mn )
↓ 5.1%
1,043 990
↑ 29.0%
↓ 23.7%
325
252
209 200 172 209
↑3.0% 93 90
1Q18 1Q19 1Q18 1Q19 1Q18 1Q19 1Q18 1Q19 1Q18 1Q19
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

• Wealth Management Fee = Fund sales + Bancassurance + Custodian

*Other represents network service fee, including overseas branches

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FB 1Q19 Cost-to-Income Ratio

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|||||
|---|---|---|---|
|1Q19 Cumulative Operating Expense|(in NT$ mn )|Cost-to-Income Ratio Analysis( in NT$ mn)|
|Item|1Q18|1Q19|
|4,971|Net Revenue|11,049|12,004|
|Operating Expense|(4,650)|(4,971)|
|4,650|6.9%|
|Provision(Net)|(1,292)|(1,383)|
|Income Tax|(544)|(936)|
|1Q18|1Q19|
|Net Income|4,562|4,715|
|Operating Expense|

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|||||||
|---|---|---|---|---|---|
|Quarterly Operating Expense & Cumulated Cost-to-Income Ratio|( in NT$ mn or % )|
|Net Revenue|Operating Expense|Cumulated Cost-to-Income Ratio|
|43.03%|43.19%|
|42.09%|42.20%|41.85%|41.41%|
|11,684|12,330|12,004|
|10,580|11,049|10,928|
|4,385|4,650|4,944|5,080|5,189|4,971|
|4Q17|1Q18|2Q18|3Q18|2018|1Q19|

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FB 1Q19 Asset Quality

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NPL Amount, Reserve, Coverage (in NT$ mn or % )
Coverage Ratio LLR ratio (loan loss reserve/total loan, excluding gov.loan)
500.09%
417.74%
358.56% 389.64%
342.89%
321.54%
297.73%
1.38%
1.25% 1.28%
1.20% 1.19% 1.20% 1.21%
NPL Ratio NPL NPL Reserve
0.38% 0.40%
0.37% 0.35%
0.32% 0.31%
0.24%
18,762 21,922 19,030 19,626 20,030 21,229 21,892
6,114 6,392 6,104 5,841 5,449 5,241
3,752
9M17 2017 3M18 6M18 9M18 2018 3M19
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• NTD 2,141 mn was recategorized from “allowance for loan losses” to “reserve for loan commitments” and other provision referring to IFRS9 since 1Q19.

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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
0.39%
0.70%
0.60% 0.57%
0.36% 0.22% 0.22% 0.18% 0.52% 0.50%
0.17%
0.21% 0.22%
0.16% 0.17% 0.48% 0.37% 0.36% 0.34% 0.35%
1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19
Domestic NPL Ratio (in %) Overseas NPL Ratio (in %)
Domestic Overseas
0.47%
0.45%
0.38%
0.34%
0.33%
0.22% 0.23% 0.20%
0.07% 0.08%
1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19
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1. Individual: mortgage and non-mortgage loan included

2. bad-debt recovery not included.

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FB New NPL Influx Breakdown

• 1Q19 total new NPL influx was NT$ 6,098 mn, and Ching-Fu Shipbuilding occupied NT$ 1,727 mn. Excluding one-off Ching-Fu Shipbuilding NPL, other new NPL influx would be NT$ 4,371 mn.

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FB 1Q19 Overseas Profits

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1Q19 FB Overseas Pre-Tax Profit Mix ( in NT$ mn or %) 1Q19 FB Total Pre-Tax Profit Mix ( in NT$ mn or %)
8.49% Total Pre-Tax
Profit
48.72%
11.65% $5,650 mn
OBU Taiwan Domestic Market;
51.68%
1Q19 HK
Overseas China
13.41%
$2,730 mn North America
3.52% Asean
Others
14.21% Other Overseas ; Greater China (including OBU) ;
16.21% 32.11%
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Quarterly Overseas & Total PTP (in NT$ mn or %)

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Overseas Total Cumulative Overseas PTP to FB Total PTP
36.77% 48.36% 40.15% 43.83% 44.34% 48.32%
31.57%
5,965 5,106 5,420 5,720 5,650
4,419
630
2,292 2,272 1,612 2,614 2,894 2,043 2,730
3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
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CAR & Core Capital

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FFHC Group CAR(in %)
139.14% CAR
131.84% 131.31% 131.70%
125.24%
121.35%
115.66%
statutory CAR 100%
FB CAR & Core Capital(in %)
CAR
13.46% 13.27% 12.82% 13.42% 13.21% 13.57% 13.68%
Tier 1
10.86% 10.95% 10.64% 11.25% 11.08% 11.58% 11.72%
1H16 2H16 1H17 2H17 1H18 2H18 1Q19
1H16 2H16 1H17 2H17 1H18 2H18 1Q19
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• •Preliminary data for 1Q19.

• •Leverage ceiling for holding companies in Taiwan: Double Leverage < 125% ; Debt Ratio < 30%

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Shareholder Return

1. EPS is adjusted retroactively for stock dividends

2. 2018’s dividend proposal is subject to final approval at 2019 AGM meeting on June 21.

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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 %)

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FFHC Non-consolidated Income Statement

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

1. Including income other than long-term investment

2. EPS is adjusted retroactively for stock dividends

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FFHC Balance Sheet

FFHC Balance Sheet Summary in NT$ million or million shares

*figures may not match due to rounding

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FFHC Key Ratios

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FFHC Key Ratios

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Full Year Results Year-over-Year Comparison
2016 2017 2018 1Q18 1Q19 Change
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1. Double leverage ratio = Long-term investment / Equity

2.Preliminary data for 1Q19

1. Non-consolidated basis.

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FB Income Statement

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

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FB Key Ratios

FB Key Ratios

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Full Year Results Year-over-Year Comparison
2016 2017 2018 1Q18 1Q19 Change
Loan to deposit spread 1.65% 1.65% 1.64% 1.63% 1.62% -0.61%
Net Interest Margin 1.26% 1.26% 1.18% 1.22% 1.08% -11.48%
Cost to income ratio3 45.65% 43.03% 43.19% 42.09% 41.41% -1.62%
Loan to deposit ratio1 79.04% 79.28% 78.71% 80.00% 77.28% -3.40%
NPL ratio 0.20% 0.38% 0.32% 0.40% 0.31% -22.50%
LLR ratio (excluding gov. loan) 1.22% 1.38% 1.25% 1.19% 1.28% 7.56%
Coverage ratio 625.14% 358.56% 389.64% 297.73% 417.74% 40.31%
CAR 13.27% 13.42% 13.57% 13.58% 13.68% 0.74%
Tier-1 10.95% 11.25% 11.58% 11.42% 11.72% 2.63%
ROAA2 0.72% 0.60% 0.65% 0.72% 0.64% -11.11%
ROAE2 9.46% 7.91% 8.71% 9.16% 9.00% -1.75%
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1. Loan to depoist ratio = total loan / total deposit

2. Annualized figures.

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FB Loan Quality

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FB NPL Migration in NT$ million or %

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

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First Sec. Operating Report

First Sec Income Statement Summary

in NT$ million or %

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FSITC Operating Report

FSITC Income Statement Summary in NT$ million or %

1. Non-consolidated basis

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First Life Operating Report

First Life Financial Results Summary in NT$ million or %

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Q&A

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