Financial Review of 2020Q2

2020.08.28

Disclaimer

This presentation is provided by Taiwan Business Bank Co., Ltd. (‘TBB’).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 TBB. While we endeavor to provide accurate, complete and consistent information herein, TBB 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.

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Assets and Liabilities

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Asset Liability

2015 2016 2017 2018 2019 2Q20

Asset 1,475,892 1,498,729 1,584,094 1,619,040 1,746,153 1,664,290

Liability 1,408,233 1,427,859 1,508,276 1,534,187 1,650,636 1,567,865

In NT mn

Equity BVPS

Equity

In NT mn

2015 2016 2017 2018 2019 2Q20

Equity 67,659 70,870 75,818 84,853 95,517 96,425

Common Stock 56,847 59,689 61,480 63,939 71,320 71,320

BVPS 11.9 11.87 12.33 13.27 13.39 13.52

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2018 Assets 2019 Assets 2020 Q2 Assets

單位：新臺幣百萬元In NT mnAssets Breakdown

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2018 Liabilities 2019 Liabilities 2020 Q2 Liabilities

單位：新臺幣百萬元In NT mnLiabilities Breakdown

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2018 Equity 2019 Equity 2020 Q2 Equity

單位：新臺幣百萬元In NT mnEquity Breakdown

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Net Income before tax

EPS before tax (NTD) In NT mn

2015 2016 2017 2018 2019 2Q20 2Q19

Net Income before tax 6,196 6,359 5,871 9,198 8,066 2,501 4,070

Net income 5,113 5,196 5,040 7,641 6,734 2,258 3,401

EPS before Tax (NTD) 1.09 1.07 0.95 1.44 1.18 0.33 0.64

EPS (NTD) 0.90 0.87 0.82 1.19 0.98 0.30 0.53

ROE before tax 9.50% 9.18% 8.00% 11.45% 8.94% 5.21% 9.42%

ROA before tax 0.43% 0.43% 0.38% 0.57% 0.48% 0.29% 0.48%

Employee productivity 1.24 1.28 1.15 1.75 1.50 0.47 0.77

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Income Growth

Monthly Net Income before Tax ( Individual)In NT 100mn

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Bad debts expense, commitment and guarantee liability provision In NT 100mn

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Net Revenue BreakdownIn NT mn

Net Revenue Breakdown

2020 H1

2019 H1

Net Revenue Breakdown

2020 Q22019 Q2

In NT mnOverseas Income

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Operating Expense Ratio

In NT mn

2015 2016 2017 2018 2019 2Q20 2Q19

Net revenue 20,162 20,657 20,863 23,027 23,210 10,639 12,046

Operating expense 11,557 11,793 11,963 13,034 12,727 6,183 6,300

Percentage(%) 57.32% 57.09% 57.34% 56.60% 54.83% 58.12% 52.30%

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In NT mn

2015 2016 2017 2018 2019 2Q20

Deposit 1,198,627 1,259,305 1,310,328 1,388,764 1,436,285 1,430,308

Loan 1,012,708 1,010,824 1,063,179 1,101,759 1,129,913 1,148,302

FX volume(In USD mn) 65,106 63,257 70,846 69,688 56,698 24,306

Loan, Deposit, and FX volume

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2020 Q2 by Currency 2020 Q2 by Period

2019 Q2 by Currency 2019 Q2 by Period

In NT 100mnDeposit Breakdown

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2020 Q2 by Currency2018 by Currency 2019 by Currency

In NT 100mn

Loan

9,966.38

88%

Foreign

Currency

Loan

1,332.75

12%

Loan

10,127.87

88%

Foreign

Currency

Loan

1,355.15

12%

Loan Breakdown

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2020 Q2 NTD Loan by Business

2018 NTD Loan by Business

2019 NTD Loan by Business

In NT 100mnLoan Breakdown

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2020 Q2 Foreign Currency Loan by Region

2018 Foreign Currency Loan by Region

2019 Foreign Currency Loan by Region

In NT 100mnLoan Breakdown

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In NT 100mn

2015 2016 2017 2018 2019 2Q20

Loans to Small and

Medium Enterprises4,579.10 4,328.30 4,675.70 4,990.40 5,339.33 5,637.56

Account for total

loans48.58% 44.46% 45.42% 50.50% 51.81% 53.13%

Loans to Small and Medium Enterprises

By the end of June 2020, there was a total of 46,060 of loans to Small and Medium Enterprises, increased by 12,163 compared with last year; loan balance was NT$563.8 billion, increased by NT$29.9 billion compared with last year.

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Net Interest Spread and NIM

%

2015 2016 2017 2018 2019 2Q20

Net Interest Spread 1.35 1.32 1.29 1.33 1.35 1.25

NTD Spread 1.33 1.26 1.23 1.24 1.28 1.24

FCY Spread 1.53 1.90 1.99 2.28 2.09 1.57

NIM 1.04 0.97 0.97 0.97 0.95 0.91

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Asset Quality

2015 2016 2017 2018 2019 2Q20

NPL 4,905 4,520 3,712 3,308 3,628 5,604

NPL Ratio 0.48% 0.43% 0.33% 0.30% 0.32% 0.48%

Allowance for bad debts 11,342 12,550 12,158 13,034 13,341 14,380

Coverage Ratio 231.22% 277.63% 327.57% 394.08% 367.77% 256.57%

Bad Loans Write-offs 3,095 2,884 3,950 2,659 3,330 1,415

In NT 100mn

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Award

Award

CommonWealth

Magazine

Ranked top 50 in “Large Enterprises Group” of Excellence in

Corporate Social Responsibility

Excellence

Magazine2020 Best Service of Innovative Industry

Taiwan Index

Plus

Corporation

Top 20% of Corporate Governance Evaluation of Listed Company

FSC, Taiwan

• 2020 Excellent Bank Award of Efficiency in Relief Loan procedures • Ranked top 20% in the financial services industry• 2016-2019 Excellent Bank Award of Property Trust Assessment for

Senior Citizens and People with Disabilities in the Trust Industry• Program to Encourage Lending by Domestic Banks to Small and

Medium Enterprises( Team A) – 2020 Superior award

• Program to Encourage Lending by Domestic Banks to Key

Innovative Industries( Team A) – 2020 Superior award

Ministry of

Economic

Affairs

Managers and Banks outstanding in implementing guarantee

Financing:

• Direct Guarantee Performance Award

• Policy Promotion Award

• Award of Loans to Small and Medium Enterprises

• Award of assisting in system establishment

Taiwan Index

Plus

Corporation

• Taiwan Employment Creation 99 Index(for eleven years in a row )

• FTSE4Good TIP Taiwan ESG Index(for six times in a row )

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Award

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Award

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優等銀行

甲等銀行

Corporate Social Responsibility

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Corporate Social Responsibility

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Innovative Finance

Project OfficeUrban

RegenerationGreen

Finance

Cultural and Creative Industry

Financing Trust Green Energy

Senior

SeedBank Preferential Loan

Green bond

Project Loans for Green Energy Sustainability

Corporate Social Responsibility

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The first Senior Learning Center we

sponsored in May 2018.

We have sponsored 4 more Senior Learning Center this year.

(Total number of Senior Learning Center we sponsored ：16)

13. Tainan Baihe (Jul 2020)

14. Chiayi Dongshi (Jul 2020)

15. Changhua Xihu (Aug 2020)

16. Taichung Qingshui (Aug 2020)

May 2018 - Now

Accumulated sponsorship amount：More than NT$ 14 million

Accumulated clients ：Nearly 290 thousands

Continue the promotion for the Silver Love Credit Card, in

which the Bank contributed 0.3‰ of the card consumption to

help seniors to dine and learn together.

In order to spread love across Taiwan, in the hope of calling upon

more people to join public welfare activities and generating the

power of love and warmth in Taiwan.

Jan - Jul 2020

The accumulated credit card trade volume has

mounted to more than 1.3 billion.

The cumulative contribution of public Non-profit fund

is about 2.66 million.

Senior Learning Center

Credit Ratings

Taiwan Ratings

S&P

Taiwan Ratings Long term Short term Outlook

2018 twAA- twA-1+ Stable

2019 twAA- twA-1+ Stable

2020 twAA- twA-1+ Stable

S&P Long term Short term Outlook

2018 BBB+ A-2 Stable

2019 BBB+ A-2 Stable

2020 BBB+ A-2 Stable

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