9M2016 Interim Results Fubon Financial Holdings · 2017-03-15 · 4 Fubon Financial Holdings: Operation highlights Taipei Fubon Bank Stable market share across business lines Wealth

2016.11.23

9M2016 Interim Results Fubon Financial Holdings

2

Disclaimer

This meeting may contain forward-looking statements with respect to the financial condition, results of operations and business of the company. These forward-looking statements represent the company’s expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed. Certain statements, such as those that include the words “potential”, “estimated”, and similar expressions or variations on such expressions may be considered “forward-looking statements”. Financial numbers in this report may include preliminary unaudited numbers or management accounts.

3

Performance review by subsidiary

• Fubon Life

• Fubon Securities

Performance highlights of Fubon Financial Holdings

• Fubon Insurance

Agenda

• Taipei Fubon Bank

• Fubon Bank (China)

4

Fubon Financial Holdings: Operation highlights

Taipei Fubon Bank

Stable market share across business lines

Wealth management business development, aiming to be regional ETF market leader

Fubon Life

Fubon Insurance

Fubon Securities

Net profits NT$40,334 million in 9M16, down 30.6% yoy, due to higher hedging costs and higher first year strain on the back of insurance policy mix change

Sound investment performance from recurring and capital gains. Recurring return well above breakeven point

First year premium up 11.1% yoy with 16.4% market share. Contribution from regular-paid premium continue growing

Net interest revenue and net fee revenue maintain steady growth

Net interest margin maintains stable

Leading position in premium income with 22.9% market share

Earnings impacted by natural disasters

5

Net profits

Earning per share (EPS)

NT$

NT$bn

5

Fubon Financial Holdings: Profitability

58.1

40.3

9M15 9M16

5.68

3.94

9M15 9M16

16.1 14.9 16.6

3Q15 2Q16 3Q16

1.57 1.46 1.62

3Q15 2Q16 3Q16

Taipei Fubon

Bank, 12.6 , 30.0%

Fubon Life, 23.5 , 55.7%

Fubon P&C, 2.5 ,

5.9%

Fubon Securities, 1.6 , 3.9%

Fubon Bank (HK), 1.9 ,

4.5%

6

Fubon Financial Holdings: Net profits from major subsidiaries

Net profits from major subsidiaries Profit contribution from major subsidiaries

NT$bn NT$bn

58.1

15.1

38.8

2.6 0.8 2.3

40.3

12.6

23.5

2.5 1.6 1.9

FubonFHC

TaipeiFubonBank

Fubon Life FubonP&C

FubonSecurities

FubonBank (HK)

9M15 9M16

Note: (1) Profit contribution are based on the summation of five major subsidiaries; (2) Fubon Bank (China) contributed NT$1,107 mn net profits to the Company on the basis of 80% shareholding.

7 7

Total assets

Equity attributable to parent company

NT$bn

NT$bn

Fubon Financial Holdings: Asset and net worth

Note: Fubon adopted fair value method for investment property evaluation since September 2014.

4,597 5,438

5,987

2013 2014 2015

342 408

368

2013 2014 2015

5,861 6,219

3Q15 3Q16

356

465

3Q15 3Q16

8 8

ROA

ROE

Fubon Financial Holdings: ROA & ROE

1.15%

0.98%

1.09%

3Q15 2Q16 3Q16

1.38%

0.88%

9M15 9M16

20.31%

12.91%

9M15 9M16

16.86%

14.85%

15.97%

3Q15 2Q16 3Q16

9

Fubon Financial Holdings: Events Updates

Note: MOEAIC is the abbreviation of Investment Commission, Ministry of Economic Affairs.

• Fubon Financial has been recognized and included in Dow Jones Sustainability Indices

(DJSI) Emerging markets in 2016. The Company is the only Taiwan financial holding

company included under the “Diversified Financial Services and Capital Markets” category.

• Fubon Financial completed the acquisition of 20% stake in Fubon Bank (China) from

Shanghai Pudong Development Bank on October 20, 2016 . Fubon Bank (China) has

been 100% owned subsidiary of Fubon Financial .

• Fubon Bank (China) has obtained approval from China Banking Regulatory Commission

(CBRC) Shanghai Bureau on November 8, 2016 to offer Renminbi services to Chinese

citizens. After completing the preparation work within four months and the inspection of

CBRC Shanghai Bureau, Fubon Bank (China) will officially roll out Renminbi services to

local residents and would be the first Taiwanese bank to have full Renminbi services

license.

10


• Fubon Life



• Fubon Insurance

Agenda



13.4 13.5

8.7 9.2

6.1 4.9

4.1 4.4

9M15 9M16

Fubon Bank (China)

Treasury & others

Net fee income

Net interest income

15.8 17.3 17.9

8.4 10.6 11.1

9.5

11.0 7.4

5.2 6.0

2013 2014 2015

11

Taipei Fubon Bank: Revenue

Revenue composition of Taipei Fubon Bank NT$bn

Steadily growth from net interest income and net fees

33.7

Note: Consolidated basis; Fubon Bank (China) accounted starting from Jan. 7th, 2014

44.1 42.4

32.2 32.0

41.5%

28.8%

42.2%

12.7%

19.0%

26.9%

13.6%

15.4% 28.2%

42.2% 39.3%

24.0%

25.0%

11.7%

46.8%

25.0%

14.1%

17.5%

26.3%

53.3%

74.7%

1.7%

1.7%

33.6%

15.5% 11.4%

8.1%

9M15 9M16

structured andequity product

Mutual funds

Custodian andtrust

Insurancecommission

78.0% 79.6%

11.2% 10.5% 6.2% 5.1% 4.7% 4.7%

9M15 9M16

Others

SyndicationloanCredit card

Wealthmanagement

12

Taipei Fubon Bank: Fee and wealth management revenue

Sources of fee revenue(1) Wealth management fee(2) NT$mn NT$mn

Note: (1) Wealth management revenue includes fee in the chart and other income (9M16: NT$232mn; 9M15: NT$316mn)

(2) Data are stand-alone basis in page 11-16

8,650 9,216 7,339

6,745

Net fee revenue up 6.5% yoy

Wealth management business continues growing with increasing insurance contribution

7.7% 5.6%

51.5% 48.3%

36.6% 41.6%

3.7% 4.0%

0.6% 0.6%

Sep-15 Sep-16

Credit card revolving

Other consumer loans

Mortgage loan

Corporate loan

Government loan

Loans by type

13

Taipei Fubon Bank: Loan composition

NT$bn 1,131.6 YoY -3.3%

YoY -9.1%

YoY +5.6%

YoY +10.0%

YoY -9.3%

YoY -29.8%

Contribution from mortgage and consumer loans increase

Loan growth excluding government loans was down 1.1%. Slower foreign currency corporate loans due to Renminbi depreciation

1,169.7

Note: Ending balance

211 207

211

218 219

32.4% 33.5%

36.0% 36.8%

38.9%

3Q15 4Q15 1Q16 2Q16 3Q16

SME SME as % of corporate credit

14

Taipei Fubon Bank: Corporate credit

Corporate loan by currency SME credit and as % of corporate credit NT$bn

SME credit accounts for 38.9% of corporate credit

NT$bn

Note: SME credit and corporate credit include loan and trade finance Note: Ending balance

346.4 353.9 346.8 357.4 344.6

255.9 247.1 230.7 217.1

201.7

3Q15 4Q15 1Q16 2Q16 3Q16

NTD Non-NTD

15

Taipei Fubon Bank: Interest yield and margin

NIM and loan-to-deposit spread

Loan yield and deposit yield

Note: Loan rate calculation inclusive of credit card revolving

1.10% 1.07% 1.10% 1.08% 1.04% 1.01% 1.01% 1.00%

1.27% 1.24% 1.28% 1.31% 1.32% 1.31% 1.32% 1.34%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

NIM Loan-to-deposit spread

2.08% 2.05% 2.05% 2.05% 2.03% 2.00% 1.92% 1.91%

0.81% 0.81% 0.77% 0.74% 0.70% 0.69% 0.60% 0.57%

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Loan rate Deposit rate

42.2% 45.7%

57.8% 54.3%

Sep-15 Sep-16

TimeDemand

52.3% 54.3%

47.7% 45.7%

Sep-15 Sep-16

TimeDemand

16

Taipei Fubon Bank: Deposit mix and LDR

NTD loan-to-deposit ratio (LDR) Deposit mix in NTD

Deposit mix in foreign currency

NT$bn

NT$bn

Foreign currency LDR

1,068 1,115

440 505

Note: Ending balance

85.0% 82.9%

Sep-15 Sep-16

59.4% 40.7%

Sep-15 Sep-16

0.0%

0.2%

0.4%

0.6%

0.8%

Sep-13 Sep-14 Sep-15 Sep-16

Corporate loan Mortgage loan

0.12% 0.15% 0.18% 0.18% 0.19%

Sep-15 Dec-15 Mar-16 Jun-16 Sep-16

17

Taipei Fubon Bank: Asset quality NPL ratio

NPL ratio by business Net provision

Coverage ratio

0.30%

0.06%

NT$mn

Net recovery

0.29% Market average

1033.47% 816.37%

716.80% 678.90% 663.16%


(1,027)

683

9M15 9M16

18


• Fubon Life



• Fubon Insurance

Agenda



143.2 159.0

198.1 215.8

9M15 9M16

212.9 191.0 205.3

207.2 234.0 269.1

2013 2014 2015

Renewal premium

FYP

10% yoy growth in total premium income

19 19

NT$bn

Fubon Life: Total premium

420.1 425.0

474.4

56.7%

43.3%

55.1%

44.9%

49.3%

50.7%

341.3

374.8

57.6%

42.4%

58.1%

41.9%

FYP composition

20

Fubon Life: First year premium (FYP) 11% yoy growth in FYP mainly came from tradition regular-paid policies, up 82.7% yoy

Traditional regular-paid policies contribution increased from 26.3% to 43.3%

NT$bn 1Q16 2Q16 3Q16 9M16 % 9M15 % YoY growth

Traditional life: Regular-paid 24.9 23.9 20.0 68.8 43.3% 37.7 26.3% 82.7%

Traditional life: Single-paid 22.9 18.9 17.4 59.2 37.2% 74.9 52.3% -21.0%

Interest-sensitive annuity 7.4 6.5 0.3 14.2 8.9% 11.8 8.2% 20.4%

Investment-linked 2.5 3.1 2.7 8.3 5.2% 13.1 9.1% -36.4%

Health, accidents and others 2.0 3.9 2.6 8.5 5.4% 5.7 4.0% 49.3%

Total 59.7 56.3 43.0 159.0 100.0% 143.2 100.0% 11.1%

12.0% 10.6% 2.5% 1.7% 2.9% 1.1% 15.6% 7.3%

67.0%

79.3%

9M15 9M16

Traditional life:Regular-paidTraditional life:Single-paidInvestment-linked

Interest-sensitiveannuityHealth, accidentsand others

FYPE growth 70% yoy led to improvement in FYPE/FYP ratio

VNB grew 75% in 9M16 yoy

21

Fubon Life: Value of new business (VNB) & First year premium equivalent (FYPE)

FYPE/FYP

NT$bn

47.8

81.2

33.4% 51.0%

VNB

FYPE

NT$bn

Note: 9M16 VNB is based on 2015 EV actuarial assumptions

FYPE by channel

VNB/FYP 17.8% 28.0%

35.1% 35.6%

33.0% 32.5%

19.0% 20.4% 12.9% 11.5%

9M15 9M16

Other

Bancassurance:through Taipei FubonbankBancassurance:through external banks

Tied agents

25.4

44.5

9M15 9M16

22 22

Fubon Life: Composition of investment income

Note: *2013 data is on pro forma basis to reflect fair value method for investment property evaluation.

NT$bn 9M15 9M16 YoY growth 2013* 2014 2015

Recurring investment income 75.7 81.6 7.8% 75.2 88.7 101.0

Cash dividend income from equity investment 15.0 13.8 -8.0% 9.9 12.6 16.5

Realized gains from fixed income investment 8.4 20.9 149.5% 8.0 12.1 9.9

Realized gains from equity investment 23.2 6.4 -72.3% 4.0 14.0 22.6

FX and others -3.2 -14.5 354.3% -6.3 -6.4 -3.6

Investment property fair value movement -0.2 -0.3 47.5% 5.4 1.4 0.4

Investment income 103.9 94.1 -9.4% 86.3 109.9 130.3

Total investment assets 2,747.7 3,047.7 10.9% 2,227.2 2,588.0 2,814.0

Investment income mainly came from recurring revenue

Steady contributions from realized gains

FX losses due to strong NT dollar in 3Q16, with improving trend into 4Q16

23 23

Investment assets grew steadily

Investment portfolio repositioned in response to market volatility

Fubon Life: Investment portfolio

Note: *Including OTC-listed international bond, the international bonds investment reached 11.2% of total investment assets as of 2016/09/30.

2015/9/30 2016/06/30 2016/9/30

（NT$bn）

Deposit and cash equivalent 172.5 6.3% 228.8 7.6% 189.7 6.2% Domestic fixed income 564.3 20.5% 465.5 15.6% 502.8 16.5% Overseas fixed income* 1,304.0 47.5% 1,543.4 51.6% 1,556.4 51.1% Domestic equity 213.0 7.8% 223.1 7.5% 259.6 8.5% Overseas equity 172.0 6.3% 174.7 5.8% 174.9 5.8% Mortgage loans 82.9 3.0% 91.9 3.1% 98.8 3.2% Policy loans 53.4 1.9% 56.6 1.9% 57.4 1.9% Real estate 185.7 6.8% 208.1 7.0% 208.1 6.8% Total Investments 2,747.7 100.0% 2,992.1 100.0% 3,047.7 100.0% Domestic 1,197.0 43.6% 1,202.6 40.2% 1,252.0 41.1% Overseas* 1,550.8 56.4% 1,789.5 59.8% 1,795.7 58.9%

24

Fubon Life: Portfolio of overseas fixed income

Overseas fixed income by region Overseas fixed income by asset type

3.5% 2.6%

40.6% 41.3%

52.1% 52.8%

3.8% 3.3%

Sep-15 Sep-16

Others

Corporatecredit

Financialbond

Government bond

17.5% 22.6%

58.7% 58.5%

23.8% 18.9%

Sep-15 Sep-16

Asia & OtherNorth AmericaEurope

-28 -45 0

-64

9M15 9M16CS cost

FX gain/loss &net provision ofFX reserve

25 25

Hedging cost & FX gain/loss FX position of financial assets

Recurring return

Fubon Life: Hedging composition

-28bps -109bps

3.92% 3.79% 3.77% 3.52%

9M15 9M16

Beforehedge

Afterhedge

Currency swap,

NDF, FX Policy, 81.7%

Naked USD, 5.4%

Equities/ mutual funds , 11.3%

Other currencies, 1.6 %

26 26

Fubon Life: Investment spread Cost of liability improvement continues

Higher breakeven point (net underwriting cost) due to insurance policy mix change

Breakeven point = (Profit before tax – Investment income) / Average investment assets

Investment spread Recurring return and breakeven point

3.86% 3.79%

5.36%

4.40%

Sep-15 Sep-16

Cost of liabilities Investment return

2.88% 3.19%

3.77% 3.52%

Sep-15 Sep-16

Breakeven point Recurring return

7.4 16.9 31.7

33.9

55.9 52.8

Mar-16 Jun-16 Sep-16

AFS HTM+Inactive*

16.9

31.7

18.0

3.16

Jun-16 Sep-16

27 27

Net Worth

Unrealized outstanding

Fubon Life: Investment performance Improvement in unrealized position

NT$bn NT$bn Realized

gains Dividend income

& MTM

Movement of unrealized gains from AFS assets

Note: *before tax basis

172.5 182.8 206.5 225.2

249.2


NT$bn

28


• Fubon Life



• Fubon Insurance

Agenda



53.9% 55.9%

35.7% 36.0%

9M15 9M16

Net expense ratioNet claim ratio

48.3% 49.7%

17.5% 17.7% 6.2% 5.2% 3.4% 2.5% 14.9%

14.8% 9.7%

10.1%

9M15 9M16

Others

Health/Injury

Engineering

Marine

Fire

Auto

29

Net combined ratio

29

NT$bn

Premium growth outperformed industry. Top 1 position in premium market share

Net combined ratio increased 2.3% due to natural disaster (Tainan earthquake, typhoon Meranti and Magi) this year

Note: Standalone basis Note: Exclusive of auto compulsory due to the claims are reimbursed

Fubon Insurance: Operating snapshot

Direct written premium by product

22.8

25.0 91.9% 89.6%

30


• Fubon Life



• Fubon Insurance

Agenda



31

Fubon Securities: Financial highlights Market share & ranking

Operating revenue NT$mn

Stable market position in major business lines

Market leader in overseas ETF with AUM up by 80% yoy

Net profits NT$mn

2016Q3 Ranking 2015Q3 Ranking

AUM of overseas ETF (NT$mn) 59,200 #2 32,800 #2

Brokerage per branch* 0.095% #2 0.092% #2

Emerging stock trading 20.72% #2 16.42% #2

SPO amount 15.29% #2 11.16% #3

Brokerage 5.19% #3 5.13% #3 Note: *Ranking among top 10 brokers

4,229 4,940

9M15 9M16

788

1,622

9M15 9M16

32


• Fubon Life



• Fubon Insurance

Agenda



22,996 20,088

6,817 8,454

Sep-15 Sep-16

Rediscount Loans (excluding rediscount)

33

Fubon Bank (China): Key balance sheet items

Assets Net worth

Deposits Loans RMB$m

28,542 29,813

RMB$m RMB$m

RMB$m

69,033 70,460

Sep-15 Sep-16

4,791 5,267

Sep-15 Sep-16

41,222 43,314

Sep-15 Sep-16

34

Fubon Bank (China): Financial highlight

ROAA & ROAE

NIM Net Profits

NPL ratio & Coverage ratio

RMB$m

1.13% 1.85% 1.92%

228.8% 161.4% 161.8%

Sep-15 Jun-16 Sep-16

NPL Coverage ratio

331 336

9M15 9M16

1.52% 1.45%

9M15 9M16

0.68% 0.62%

9.46% 8.82%

9M15 9M16

ROAA ROAE

Thank you

Fubon Financial - Financial summary

NT$ millions, except for percentages 9M16 9M15 YoY 3Q16 2Q16 1Q16 2015 2014 YoY

Income Statement DataNet interest income 78,483 69,521 12.9% 26,280 26,422 25,781 94,965 89,315 6.3%Insurance income 233,562 186,741 25.1% 75,704 79,434 78,425 264,088 230,938 14.4%Net gains (losses) on FX and financial assets 26,214 64,887 -59.6% 5,443 14,594 6,177 73,991 59,719 23.9%Others 1,632 (2,610) N.M. 4,782 (1,473) (1,677) (2,801) 1,863 N.M.Net revenue 339,891 318,539 6.7% 112,208 118,977 108,705 430,243 381,835 12.7%Bad debt expense and reserve for guarantee (1,815) 522 N.M. (514) (970) (330) (1,212) (2,988) -59.4%Net change in insurance reserve (250,888) (209,840) 19.6% (80,733) (86,057) (84,098) (296,913) (257,599) 15.3%Operating expense (42,004) (38,935) 7.9% (13,911) (14,154) (13,939) (54,300) (49,305) 10.1%Income before tax 45,185 70,286 -35.7% 17,051 17,796 10,339 77,818 71,943 8.2%Net income 40,498 58,347 -30.6% 16,605 15,006 8,887 63,806 60,478 5.5%Net income to parent company 40,334 58,143 -30.6% 16,623 14,936 8,774 63,593 60,244 5.6%

Balance Sheet DataTotal assets 6,219,483 5,860,919 6.1% 6,219,483 6,160,793 5,985,183 5,987,468 5,438,358 10.1%Equity attributable to parent company 465,323 355,526 30.9% 465,323 437,032 398,582 367,622 408,057 -9.9%Outstanding common shares (million shares) 10,234 10,234 0.0% 10,234 10,234 10,234 10,234 10,234 0.0%

Key MetricsROA 0.88% 1.38% 1.09% 0.98% 0.59% 1.12% 1.21%ROE 12.91% 20.31% 15.97% 14.85% 9.16% 16.40% 16.07%Equity / assets 7.61% 6.21% 7.61% 7.23% 6.80% 6.28% 7.65%Double leverage 111.99% 121.01% 111.99% 112.60% 119.11% 120.55% 114.01%Capital adequacy ratio 127.00% 124.83% 137.36%Cash dividend per share 2.00 3.00

Taipei Fubon Bank - Financial summary


Income statement dataInterest income 32,423 34,919 -7.1% 10,382 10,818 11,223 46,647 45,231 3.1%Interest expense (15,097) (17,710) -14.8% (4,758) (4,962) (5,377) (23,294) (22,964) 1.4%Net interest income 17,326 17,209 0.7% 5,624 5,857 5,846 23,352 22,268 4.9%Net fee income 9,611 9,058 6.1% 3,164 3,056 3,390 11,649 11,080 5.1%Other income 5,045 5,935 -15.0% 1,543 1,238 2,264 7,367 10,727 -31.3%Total net revenue 31,982 32,202 -0.7% 10,331 10,151 11,500 42,369 44,075 -3.9%Operating expenses (15,501) (15,153) 2.3% (5,219) (5,095) (5,188) (20,690) (19,293) 7.2%Pre-provision profits 16,481 17,049 -3.3% 5,113 5,056 6,312 21,679 24,782 -12.5%Provision for credit losses (838) 1,102 N.M. (244) (408) (186) (177) (2,261) -92.2%Income before tax 15,643 18,151 -13.8% 4,869 4,648 6,126 21,502 22,521 -4.5%Net income 13,318 15,764 -15.5% 4,109 3,941 5,268 18,606 19,131 -2.7%Net income to parent company 12,640 15,051 -16.0% 3,992 3,714 4,933 17,783 18,237 -2.5%

Balance sheet dataLoans and discounts 1,316,465 1,357,185 -3.0% 1,316,465 1,339,460 1,337,192 1,353,533 1,304,563 3.8%Deposits and remittances 1,859,512 1,751,102 6.2% 1,859,512 1,813,143 1,793,280 1,813,356 1,606,174 12.9%Allowance for loan losses* 14,331 13,965 2.6% 14,331 14,449 14,543 14,651 15,483 -5.4%Total assets 2,375,875 2,387,116 -0.5% 2,375,875 2,364,792 2,336,284 2,409,836 2,165,405 11.3%Equity attributable to parent company 173,537 163,712 6.0% 173,537 170,357 170,598 165,696 151,604 9.3%

Key metricsROA 0.74% 0.92% 0.69% 0.66% 0.89% 0.81% 0.97%ROE 9.94% 12.73% 9.41% 8.84% 11.74% 11.21% 12.76%Equity / assets 8.10% 7.70% 8.10% 8.02% 8.15% 7.69% 7.88%Cost / income ratio -48.47% -47.06% -50.51% -50.19% -45.11% -48.83% -43.77%NPL ratio* 0.19% 0.12% 0.19% 0.18% 0.18% 0.15% 0.17%Reserve / NPL* 663.16% 1033.47% 663.16% 678.90% 716.80% 816.37% 788.58%Tier 1 ratio* 11.86% 11.30% 10.43%BIS ratio* 13.91% 13.44% 13.11%

Note: Data mark with * are stand-alone basis

Fubon Life - Financial summary


Income statement dataFirst year premium 159,030 143,174 11.07% 42,966 56,342 59,722 205,282 190,974 7.5%Retained earned premium 358,014 317,418 12.79% 114,461 122,708 120,845 440,297 390,077 12.9%Total investment income 94,130 103,874 -9.38% 33,289 35,358 25,537 130,256 109,876 18.5% Recurring investment income 81,588 75,714 7.76% 31,674 26,858 23,110 101,040 88,695 13.9% Other investment income 12,542 28,160 -55.46% 1,615 8,500 2,427 29,216 21,181 37.9% Realized gains (losses) from fixed income 20,956 8,351 150.95% 7,370 9,982 3,603 9,870 12,127 -18.6% Realized gains (losses) from equity 6,419 23,234 -72.37% 2,767 514 3,138 22,622 14,021 61.3% FX and others (14,538) (3,209) 353.02% (7,589) (2,094) (4,855) (3,629) (6,413) -43.4% Investment property fair value movement (295) (216) 36.54% (933) 97 541 353 1,446 -75.6%Other income 1,465 1,511 -3.06% 280 559 626 2,159 2,006 7.6%Total operating revenue 453,609 422,803 7.29% 148,030 158,625 147,008 572,711 501,960 14.1%Retained claim payment 133,643 139,866 -4.45% 41,920 46,196 45,527 187,601 168,249 11.5%Net commission expense 26,335 18,992 38.66% 7,586 9,635 9,113 26,093 23,215 12.4%Net change in insurance liability 256,368 206,146 24.36% 84,241 86,502 85,625 292,665 254,691 14.9%General and administrative expense 12,741 10,854 17.39% 4,194 4,480 4,122 15,526 13,652 13.7%Other operating costs 1,433 1,491 -3.93% 491 479 462 1,932 1,078 79.2%Total operating costs and expenses 430,521 377,349 14.09% 138,433 147,293 144,850 523,816 460,885 13.7%Net non-operating income / (expenses) 396 377 4.89% 171 119 106 518 222 133.7%Income before tax 23,484 45,831 -48.76% 9,768 11,451 2,265 49,413 41,296 19.7%Net income 23,458 38,849 -39.62% 10,463 10,858 2,137 41,018 35,367 16.0%Net income to parent company 23,458 38,849 -39.62% 10,463 10,858 2,137 41,018 35,367 16.0%

Balance sheet dataTotal assets 3,285,094 2,951,402 11.31% 3,285,094 3,223,464 3,117,105 3,035,563 2,790,427 8.8%Total assets (general account) 3,145,703 2,821,057 11.51% 3,145,703 3,086,914 2,982,282 2,900,201 2,653,199 9.3%Insurance liabilities 2,845,784 2,569,316 10.76% 2,845,784 2,813,256 2,728,570 2,656,145 2,346,722 13.2%Total liabilities 3,035,931 2,778,892 9.25% 3,035,931 2,998,289 2,910,646 2,852,781 2,566,830 11.1%Total liabilities (general account) 2,896,540 2,648,546 9.36% 2,896,540 2,861,739 2,775,823 2,717,419 2,429,603 11.8%Equity attributable to parent company 249,163 172,511 44.43% 249,163 225,175 206,459 182,782 223,597 -18.3%

Key matricesROA 0.99% 1.80% 1.32% 1.39% 0.28% 1.41% 1.35%ROE 14.48% 26.15% 19.38% 21.29% 4.39% 20.19% 17.96%Equity / Assets 7.58% 5.85% 7.58% 6.99% 6.62% 6.02% 8.01%Claims and benefits ratio 37.33% 44.06% 36.62% 37.65% 37.67% 42.61% 43.13%Expense ratio 3.56% 3.42% 3.66% 3.65% 3.41% 3.53% 3.50%Persistency ratio - 13th month 96.17% 94.57% 96.17% 95.93% 96.19% 96.66% 95.12%Persistency ratio - 25th month 93.65% 90.71% 93.65% 93.37% 92.92% 92.07% 89.67%

Fubon Insurance - Financial summary


Income statement dataDirect written premiums 28,788 26,142 10.1% 9,161 10,330 9,297 35,016 32,718 7.0%Retention of earned premiums 21,967 20,307 8.2% 7,451 7,286 7,230 27,139 24,653 10.1%Net income from investment 2,188 2,326 -5.9% 869 822 497 2,811 2,498 12.5%Other operating revenue 1,066 932 14.4% 332 390 345 1,295 1,082 19.7%Retained insurance payments 11,890 10,363 14.7% 3,994 4,063 3,833 14,250 13,128 8.5%Net change in liability reserve 441 985 -55.2% 370 (287) 358 656 626 4.7%Commission and operating expenses 10,194 9,266 10.0% 3,418 3,470 3,306 12,772 11,363 12.4%Non-Operating Income (94) (87) 8.4% (40) (32) (22) (96) (109) -12.2%Income before tax 2,603 2,865 -9.2% 831 1,219 553 3,472 3,007 15.5%Net income 2,127 2,354 -9.7% 676 1,007 444 2,839 2,420 17.3%Net income to parent company 2,467 2,619 -5.8% 874 1,077 516 3,213 2,816 14.1%

Balance sheet dataTotal assets 99,597 90,125 10.5% 99,597 97,868 94,323 89,213 83,349 7.0%Investment assets 65,653 64,278 2.1% 65,653 64,343 65,752 64,689 60,362 7.2%Policy reserve 54,404 48,059 13.2% 54,404 54,299 51,580 47,470 44,930 5.7%Equity attributable to parent company 30,646 28,099 9.1% 30,646 29,542 30,281 28,677 27,665 3.7%

Summary ratiosROA 3.00% 3.62% 2.86% 4.30% 1.94% 3.29% 2.99%ROE 11.09% 12.52% 11.78% 14.81% 7.00% 11.41% 10.06%Total investment return 4.48% 4.98% 5.34% 5.10% 3.05% 4.50% 4.21%Solvency margin (NWP/equity) 100.19% 99.39% 98.86% 107.27% 99.48% 97.95% 94.11%Retention ratio 74.17% 75.24% 76.56% 71.12% 75.19% 75.30% 76.11%

Fubon Securities - Financial summary


Income statement dataBrokerage commissions 2,068 2,254 -8.2% 712 655 701 3,044 3,204 -5.0%Net interest income 683 723 -5.4% 224 244 215 942 932 1.0%Fee income 194 56 247.3% 81 74 39 298 157 89.7%Net principal transactions and financial products gains 549 (9) N.M. 227 100 222 324 575 -43.6%Other income 1,453 1,208 20.3% 736 509 208 1,419 1,089 30.3%Total operating revenue 4,940 4,229 16.8% 1,974 1,580 1,386 6,025 5,955 1.2%Total operating expense (3,879) (3,811) 1.8% (1,353) (1,297) (1,229) (5,216) (5,146) 1.4%Net non-operating income / (expenses) 632 501 26.1% 232 157 243 685 678 1.0%Income before tax 1,693 919 84.2% 852 442 399 1,494 1,488 0.4%Net income 1,622 788 105.7% 832 432 358 1,348 1,356 -0.6%Net income to parent company 1,622 788 105.7% 832 432 358 1,348 1,356 -0.6%

Balance sheet dataMargin loans 11,663 10,219 14.1% 11,663 11,108 11,613 11,950 16,338 -26.9%Total assets 98,326 81,215 21.1% 98,326 99,465 95,452 84,481 69,957 20.8%Equity attributable to parent company 33,200 31,064 6.9% 33,200 32,657 32,551 31,576 31,333 0.8%

Key metricsROA 2.37% 1.39% 3.64% 1.88% 1.59% 1.75% 2.12%ROE 6.68% 3.37% 10.27% 5.38% 4.47% 4.29% 4.39%Equity / assets 33.77% 38.25% 33.77% 32.83% 34.10% 37.38% 44.79%Expenses / revenues -78.52% -90.12% -78.52% -85.16% -88.73% -86.57% -86.41%Margin loans / total assets 11.86% 12.58% 11.86% 11.17% 12.17% 14.14% 23.35%Margin loans / shareholders' equity 35.13% 32.90% 35.13% 34.01% 35.68% 37.84% 52.14%

Fubon Bank (China) - Financial Summary

RMB millions, except for percentages 9M16 9M15 YoY 3Q16 2Q16 1Q16 2015 2014 YoY

Income Statement DataInterest income 1,538 1,680 -8.5% 492 555 491 2,232 2,425 -7.9%Interest expense (1,236) (1,476) -16.3% (401) (416) (418) (1,925) (1,846) 4.3%Net interest income 303 204 48.2% 91 139 73 307 579 -47.0%Net fee income 85 96 -11.4% 21 32 31 120 141 -14.8%Other income 465 447 4.2% 113 136 217 669 250 167.6%Operating expenses (394) (340) 15.8% (136) (132) (126) (519) (378) 37.1%Pre-provision profits 459 406 13.0% 88 175 195 577 591 -2.4%Provision for credit losses (32) 15 N.M. 0 (32) 0 (84) (59) 41.0%Income before tax 428 421 1.5% 88 144 195 493 532 -7.3%Net income 336 331 1.3% 71 113 152 390 422 -7.5%

Balance Sheet DataLoans 28,542 29,813 -4.3% 28,542 29,672 28,388 30,822 31,163 -1.1%Deposits 43,314 41,222 5.1% 43,314 42,209 43,387 46,013 42,063 9.4%Total assets 70,460 69,033 2.1% 70,460 68,640 67,367 73,647 61,604 19.5%Total equity 5,267 4,791 9.9% 5,267 5,140 5,033 4,879 4,547 7.3%

Key metricsROA 0.62% 0.68% 0.40% 0.63% 0.86% 0.58% 0.76%ROE 8.82% 9.46% 5.61% 8.99% 12.24% 8.28% 11.09%Equity / assets 7.48% 6.94% 7.48% 7.49% 7.47% 6.63% 7.38%Cost / income ratio -42.80% -41.70% -55.96% -39.91% -36.32% -43.72% -35.08%NPL ratio 1.92% 1.13% 1.92% 1.85% 1.91% 1.04% 0.89%Reserve / NPL 161.77% 228.81% 161.77% 161.43% 157.53% 265.11% 282.25%Loan to deposit ratio (Renminbi) 68.52% 69.32% 68.52% 68.65% 62.88% 74.91% 70.13%Tier 1 ratio 12.40% 12.72% 12.40% 12.81% 13.01% 12.59% 13.93%BIS ratio 13.20% 13.87% 13.20% 13.63% 13.82% 13.73% 15.08%

Documents

9M2016 Interim Results Fubon Financial Holdings · 2017-03-15 · 4 Fubon Financial Holdings: Operation highlights Taipei Fubon Bank Stable market share across business lines Wealth