B.O.K — Annual Report 2021

Mar 24, 2021

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Financial Review of 2020 Q4

2021.3.24

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Disclaimer

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• ➢ This presentation is provided by Bank of Kaohsiung Co., Ltd. (‘BOK’).The information contained within is not 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 BOK. While we endeavor to provide accurate, complete and consistent information herein, BOK makes no guarantee or warranties to the accuracy or correctness of all the information 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 with respect to such securities or other financial instruments. BOK and 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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Summary

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➢ Operations Review of 2020

➢ Financial Performance of 2020

➢ Prospects

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Operations Review of 2020

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Operations Review of 2020

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• Pre-Tax Income remains unchanged, Net Income dropped slightly.

• Credit rating remains unchanged, and credit outlook remains stable.

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• Awarded third place in the amount group for "Rewarding domestic banks for accelerating the implementation of the relief and revitalization loan program" by FSC.

• Awarded "Information Security Quality Excellence Award" by BSI.

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• Awarded "Taiwan Corporate Sustainability Awards Financial and Insurance Group - Bronze Award“- by TCSA.

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Financial Performance of 2020

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Operating Result

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FY ITEMS	2020	2019	2018	2017	2016
Pre-tax income (NT$ 100mn)	8.87	8.87	4.88	4.99	6.91
Net income (NT$ 100mn)	7.63	7.74	4.80	4.52	6.48
EPS after-tax (NT$ dollar)	0.68	0.69	0.44	0.45	0.79
ROA(%) (After-tax)	0.28	0.29	0.18	0.17	0.25
ROE(%) (After-tax)	4.82	5.18	3.35	3.39	5.32
FY ITEMS	**2020.12.31 **	**2019.12.31 **	**2018.12.31 **	**2017.12.31 **	2016.12.31
Assets (NT$ 100mn)	2,762	2,707	2,680	2,634	2,563

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Profit Trend

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10 3.2
8.87 8.87
8 6.91 7.74 7.63
6.48
6 4.88
4.99
4.52 4.80 1.7
4
0.79
0.68
2 0.69
0.45 0.44
0 0.2
2016 2017 2018 2019 2020
Pre-tax income Net income EPS after-tax
FY
2020 2019 2018 2017 2016
ITEMS
Pre-tax income (in NT 100mn) 8.87 8.87 4.88 4.99 6.91
Net income (in NT 100mn) 7.63 7.74 4.80 4.52 6.48
EPS after-tax (in NT$ dollar) 0.68 0.69 0.44 0.45 0.79
Unit: in NT$ 100mn
Unit: in NT$ dollar
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Unit: in NT$ 100mn
0%
-1.42%
8.87 8.87
7.74 7.63
Pre-tax Net income
income
2019 2020
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-1.45%
0.69 0.68
2019 2020
EPS after-tax
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Net Revenue Breakdown

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40 37.19 37.25 16.00
35.00 Unit: in NT$ 100mn
33.10 32.92
0.16%
27.64
25.35 26.32 26.05 12.00 37.25 -5.75%
25.22 37.19
27.64
26.05
20 6.55 8.00
4.84
4.58 5.04 4.88
-11.27%
4.00
4.51 4.33 4.88
4.33
3.45
2.09
1.58
0 0.00
2016 2017 2018 2019 2020 Net Revenue Net Interest Net Fee
Income Income
Net Revenue
Net Interest Income 2019 2020
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FY ITEMS	2020	2019	2018	2017	2016
Net Revenue	37.25	37.19	35.00	32.92	33.10
Net Interest Income	26.05	27.64	26.32	25.35	25.22
Net Fee Income	4.33	4.88	5.04	4.58	4.84
Net Income from Financial Instruments	6.55	4.51	3.45	2.09	1.58

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45.23%
6.55
4.51
2019 2020
Net Income from Financial Instruments
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8
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Stockholders’ Equity
Unit: in NT$ 100mn
180
162.15
154.30 5.09%
141.87 144.45 23
124.65 162.15 圖表標題 4.51%
154.30
112.96
108.09
100.32 104.03 112.96
108.09
90 82.32
15.14 15.00
14.14 14.27 Stockholders’ Equity Common Stock
13.88
2019.12.31 2020.12.31
0 13
2016.12.31 2017.12.31 2018.12.31 2019.12.31 2020.12.31
Stockholders’ Equity Common Stock BVPS
5.12%
15.00
FY
2020.12.31 2019.12.31 2018.12.31 2017.12.31 2016.12.31
14.27
ITEMS
Stockholders’ Equity 162.15 154.30 144.45 141.87 124.65
Common Stock 112.96 108.09 104.03 100.32 82.32
BVPS (in NT$ dollar) 15.00 14.27 13.88 14.14 15.14 2019.12.31 2020.12.31
BVPS(in NT$ dollar)
Unit: in NT$ 100mn
Unit: in NT$ dollar
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Note: Common Stock in 2020 includes 486 million reserves for seasonal equity offering.

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Capital Adequacy Ratio

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Unit:%
14
BIS Ratio
12.42
12.11
12
11.05
10.61
10.49
10.04
9.74
10
Tier 1 Capital
8.45 8.51 Ratio
8
7.25
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2016.12.31 2017.12.31 2018.12.31 2019.12.31 2020.12.31

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10
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6

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、 Assets Liabilities and Stockholders’ Equity

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Assets Liabilities

Unit: in NT$ 100mn Stockholders’ Equity

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Financial
Other assets Other
liabilities
27 Financial liabilities
82
1% debentures 45
3%
55 2%
2%
Due to
Financial
Premises Central
assets
and Bank and
804
equipment other
31 29% Loans banks
1% 1,762 116
64%
4% Deposits and
remittances
Cash and cash
2,302
equivalents
89%
31
1%
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Capital Other
Surplus items in
11 equity
7% 6
3%
Retained
Earnings
32
20%
Common
stock
113
70%
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Due from Central Bank and other banks 107 4%

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Net Revenue Breakdown

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Net Income

Unit: in NT$ 100mn Net Revenue

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Other
Net Income Income
from Financial 0.32
Pre-tax Instruments 1%
Income 6.55
8.87 Net Fee 17%
24% Income
4.33
12%
Net Revenue
Operating
Expenses 37.25 Net
24.87 100% Interest
67% Income
26.05
70%
Provisions
3.51
9%
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Fee Income Breakdown

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2020 Fee income

Unit: in NT$ 100mn

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-51.32%
Deposit and 28.89% 5.97%
others
0.67 1.74 1.42 1.89 11.67%
1.35
14% -22.73% 1.34
0.92
Trust 0.67
1.74 0.22 0.60
35% 0.17
Trust FX Loan Insurance fee Deposit and
income others
Insurance fee
2019 2020
income
0.92 FY
2020 2019
19% ITEMS
Trust 1.74 1.35
FX 0.17 0.22
Loan 1.42 1.34
FX
0.17 Insurance fee income 0.92 1.89
Loan 3%
Deposit and others 0.67 0.60
1.42
29% Total 4.92 5.40
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Operating Expenses
Unit: in NT$ 100mn
40 37.19 37.25 90.00
0.16%
35.00
33.10 32.92
37.25 2.81%
37.19
30 24.87
24.18 24.87
22.54 22.94 24.19
22.03
20
68.10
66.92 66.77
10 65.54 65.02
Net Revenue Operating Expenses
2019 2020
0 60.00
2016 2017 2018 2019 2020
1.73%
Net Revenue Operating Expenses Percentage(%) 66.77
FY 65.04
2020 2019 2018 2017 2016
ITEMS
Net Revenue 37.25 37.19 35.00 32.92 33.10
Operating Expenses 24.87 24.19 22.94 22.03 22.54
2019 2020
Percentage(%) of Op.
Percentage(%) of
expenses over net 66.77 65.04 65.54 66.92 68.10
Op. expenses over net revenue
revenue
14
Unit: %
Unit: in NT$ 100mn
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、 Loan Deposit and FX Volumes

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Unit: in NT$ 100mn
2,302 1.95%
2,256 2,297 2,233 2,258 0.56%
2,302
110 2,258
2,000 1,835
1,783 1,782
1,777 1,772 1,782
1,772
88
77 77
80
1,000
66
53
Loans Deposits
0 50
2016.12.31 2017.12.31 2018.12.31 2019.12.31 2020.12.31 2019.12.31 2020.12.31
Loans Deposits FX Volumes
Unit: in US$ 100mn
0%
FY
2020.12.31 2019.12.31 2018.12.31 2017.12.31 2016.12.31
ITEMS 77 77
Loans
1,782 1,772 1,835 1,783 1,777
(include Collection)
Deposits 2,302 2,258 2,233 2,297 2,256
FX Volumes 77 77 88 66 53 2019 2020
FX Volumes
Unit: in US$ 100mn
Unit: in NT$ 100mn
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Loan Breakdown

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By customer

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-1.86%
968 950 6.88%
-6.25% 596
637
208
195
Government Corporates Consumers
2019.12.31 2020.12.31
2020.12.31 Government
195
11%
Consumers
637
36%
Corporates
950
53%
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By currency

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4.52% Unit: in NTS 100mn
1,620
1,550
-27.03%
222
162
NTD Loans FCY Loans
2019.12.31 2020.12.31
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FCY 2020.12.31
Loans
162
9%
NTD
Loans
1,620
91%
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Deposit Breakdown

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By terms of maturity
-6.73%
12.39%
1,233
1,152
1,150
1,025
4.65%
50.04
45.39
Demand Deposits Time Deposits Demand Deposits
Ratio
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2019.12.31 2020.12.31
2020.12.31
Time Demand
Deposits Deposits
1,150 1,152
50% 50%
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By currency

3.94%

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2,004
1,928
-9.70%
330
298
NTD Deposits FCY Deposits
2019.12.31 2020.12.31
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Unit: in NTS 100mn

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FCY 2020.12.31
Deposits
298
13%
NTD
Deposits
2,004
87%
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Interest Spread and NIM

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1.44
1.40 1.40
1.39
1.40
1.28
1.20
Interest Spread
1.06
1.03
1.02
0.99 0.99
1.00
NIM
0.80
2016 2017 2018 2019 2020
%
：
unit
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Assets Quality
20 382.6 400
Coverage Ratio
14.95
270.97 300
253.64
245.53
NPL
10 9.08 200
8.51
8.02
147.92
5.34
100
0.81 NPL Ratio
0.45 0.51 0.48 0.30
0 0
2016.12.31 2017.12.31 2018.12.31 2019.12.31 2020.12.31
FY
2020.12.31 2019.12.31 2018.12.31 2017.12.31 2016.12.31
ITEMS
NPL(in NT$ 100mn) 5.34 8.51 14.95 9.08 8.02
NPL Ratio(%) 0.30 0.48 0.81 0.51 0.45
Coverage Ratio(%) 382.60 245.53 147.92 270.97 253.64
19
unit:%
Unit : in NT$ 100mn ,%
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Credit Ratings

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Domestic Domestic Fitch Outlook Long-Term Short-Term 2018 AA-(twn) F1+(twn) Stable 2019 AA-(twn) F1+(twn) Stable 2020 AA-(twn) F1+(twn) Stable

Fitch Long-Term IDR Short-Term IDR Outlook 2018 BBB+ F2 Stable 2019 BBB+ F1 Stable 2020 BBB+ F1 Stable

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After-tax EPS and Dividend Policy

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1.00
EPS After-Tax 0.37 0.39 0.45 0.30
0.79
0.69 0.68
0.50 0.50 74% 78% 75% 50%
0.50 0.60 0.60
0.60
0.45 0.44
Dividend per share
100% 26% 22% 25% 50%
0.60 0.13 0.11 0.15 0.30
0.00 2016 2017 2018 2019 2020
2016 2017 2018 2019 2020
Cash dividend Stock dividend
Unit : in NT$ dollar
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FY ITEMS	2020	2019	2018	2017	2016
EPS After-Tax	0.68	0.69	0.44	0.45	0.79
Dividendper share	0.60	0.60	0.50	0.50	0.60
Cash dividend	0.30	0.15	0.11	0.13	0.60
Stock dividend	0.30	0.45	0.39	0.37	0.00

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Prospects

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Prospects

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Improve financial investment and trading performance.
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Cultivate SMEs long-term relationships and expand
niche markets
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Optimize the distribution of channels to maximize
synergy.
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Thanks for Listening

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