B.O.K — Interim / Quarterly Report 2021

Sep 16, 2021

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Financial Review of 2021 Q2

2021.09.16

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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 2021 Q2

➢ Financial Performance of 2021 Q2

➢ Prospects

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Operations Review of 2021 Q2

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	4 Operations Review of 2021 Q2 Items 2021.H1 2020.H1 Increase (Decrease) Amount or Ratio Net income before tax 5.14 4.60 0.54 Net income 4.60 3.94 0.66 EPS after-tax(in NT dollar) 0.41 0.35 0.06 ROA (after-tax)(%) 0.16 0.15 0.01 ROE (after tax)(%) 2.74 2.52 0.22 (in NT 100mn)

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Financial Performance of 2021 Q2

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Assets and Liabilities

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(in NT 100mn)
Assets Liabilities
2,841
2,762
2,715
2,668
2,599
2,556
2020/6/30 2020/12/31 2021/6/30
Date 2021/6/30 to 2020/6/30
2021/6/30 2020/12/31 2020/6/30
Variation (%)
Items
Assets 2,841 2,762 2,715 4.64
Liabilities 2,668 2,599 2,556 4.38
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	Shareholders’ Equity Date Items 2021/6/30 2020/12/31 2020/6/30 2021/6/30 to 2020/6/30 Variation (%) Shareholders' Equity 173.27 162.15 158.91 9.04 Common Stock 120.34 112.96 108.09 11.33Note1 BVPS (in NT$) 14.45 15.00 14.70 (1.70)Note2 158.91 162.15 173.27 108.09 112.96 120.34 14.70 15.00 14.45 2020/6/30 2020/12/31 2021/6/30 Shareholders' Equity Common Stock BVPS (in NT$) (in NT 100mn)	Shareholders’ Equity Date Items 2021/6/30 2020/12/31 2020/6/30 2021/6/30 to 2020/6/30 Variation (%) Shareholders' Equity 173.27 162.15 158.91 9.04 Common Stock 120.34 112.96 108.09 11.33Note1 BVPS (in NT$) 14.45 15.00 14.70 (1.70)Note2 158.91 162.15 173.27 108.09 112.96 120.34 14.70 15.00 14.45 2020/6/30 2020/12/31 2021/6/30 Shareholders' Equity Common Stock BVPS (in NT$) (in NT 100mn)	Shareholders’ Equity Date Items 2021/6/30 2020/12/31 2020/6/30 2021/6/30 to 2020/6/30 Variation (%) Shareholders' Equity 173.27 162.15 158.91 9.04 Common Stock 120.34 112.96 108.09 11.33Note1 BVPS (in NT$) 14.45 15.00 14.70 (1.70)Note2 158.91 162.15 173.27 108.09 112.96 120.34 14.70 15.00 14.45 2020/6/30 2020/12/31 2021/6/30 Shareholders' Equity Common Stock BVPS (in NT$) (in NT 100mn)	Shareholders’ Equity Date Items 2021/6/30 2020/12/31 2020/6/30 2021/6/30 to 2020/6/30 Variation (%) Shareholders' Equity 173.27 162.15 158.91 9.04 Common Stock 120.34 112.96 108.09 11.33Note1 BVPS (in NT$) 14.45 15.00 14.70 (1.70)Note2 158.91 162.15 173.27 108.09 112.96 120.34 14.70 15.00 14.45 2020/6/30 2020/12/31 2021/6/30 Shareholders' Equity Common Stock BVPS (in NT$) (in NT 100mn)	Shareholders’ Equity Date Items 2021/6/30 2020/12/31 2020/6/30 2021/6/30 to 2020/6/30 Variation (%) Shareholders' Equity 173.27 162.15 158.91 9.04 Common Stock 120.34 112.96 108.09 11.33Note1 BVPS (in NT$) 14.45 15.00 14.70 (1.70)Note2 158.91 162.15 173.27 108.09 112.96 120.34 14.70 15.00 14.45 2020/6/30 2020/12/31 2021/6/30 Shareholders' Equity Common Stock BVPS (in NT$) (in NT 100mn)
	Date Items	2021/6/30	2020/12/31	2020/6/30	2021/6/30 to 2020/6/30 Variation (%)
	Shareholders' Equity	173.27	162.15	158.91	9.04
	Common Stock	120.34	112.96	108.09	11.33Note1
	BVPS (in NT$)	14.45	15.00	14.70	(1.70)Note2

Note1: Our equity share capital dated 2021.6.30 includes NTD 400 million preferred stock capital and NTD 338 million capital raising reserve ; while equity share capital dated 2020.12.31 includes NTD 487 million capital raising reserve .

Note2: Net value of each share on 2021.6.30 is calculated based on the number of issued shares of 1,129,558 shares (in thousand) at the end of June ; while

net value of each share on 2020.12.31 is calculated based on the number of issued shares of 1,080,916 shares (in thousand) at the end of December.

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Assets Breakdown(2021.6.30)

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(in NT 100mn; %)

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Other
Cash and cash
Assets
Premises and
equivalents Due from
27
equipment 27 Central Bank
1%
31 1% and other
1%
102
4%
Financial
assets and
investment
897
31%
Discounts
and loans-net
1,757
62%
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Liabilities and Shareholders’ Equity Breakdown(2021.6.30)

(in NT 100mn; %) Shareholders’ Equity

Liabilities

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Other items
In equity
Due to 5
Other liabilities Financial
Central Bank
8 liabilities 3%
and other
0% banks 77
Retained
119 3% Earnings
4% 32
Financial 19%
debentures
Accounts
43
Payable
2% Capital
42
Reserve
2%
16
9%
Deposits
and
remittances
2,379 Common
Stock
89%
120
69%
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Income Growth

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Date Items	2021.H1	2020.H1	2021.H1 to 2020.H1 Variation (%)
Net income before tax	5.14	4.60	11.74
Net income	4.60	3.94	16.75
EPS after-tax(in NT dollar)	0.41	0.35	17.14

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Net Revenue Growth

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	18.97 20.77 12.86 13.73 3.81 4.27 ~~2.09~~ ~~2.55~~ 2020.H1 2021.H1 Net Revenue Net Interest Income Net Financial operations Income Net Fee Income (in NT 100mn	18.97 20.77 12.86 13.73 3.81 4.27 ~~2.09~~ ~~2.55~~ 2020.H1 2021.H1 Net Revenue Net Interest Income Net Financial operations Income Net Fee Income (in NT 100mn	18.97 20.77 12.86 13.73 3.81 4.27 ~~2.09~~ ~~2.55~~ 2020.H1 2021.H1 Net Revenue Net Interest Income Net Financial operations Income Net Fee Income (in NT 100mn	18.97 20.77 12.86 13.73 3.81 4.27 ~~2.09~~ ~~2.55~~ 2020.H1 2021.H1 Net Revenue Net Interest Income Net Financial operations Income Net Fee Income (in NT 100mn
Date Items		2021.H1	2020.H1	2021.H1 to 2020.H1 Variation (%)
Net Revenue		20.77	18.97	9.49
Net Interest Income		13.73	12.86	6.77
Net Financial operations Income		4.27	3.81	12.07
Net Fee Income		2.55	2.09	22.01

(in NT 100mn)

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Net Revenue Breakdown(2021.H1)

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(in NT 100mn)
Net Net Financial
2021.H1
income operations Income Other
before tax 4.27 Income
5.14 0.22
21%
25% Net 1%
Revenue
Operating
Net Interest
Expenses 20.77
Income
12.64
100% Net Fee 13.73
Provisions 61% Income
66%
2.99 2.55
14% 12%
Net
Net
income 2020.H1 Financial Other Income
before tax operations Income 0.22
3.81
4.60 1%
20%
24% Net
Revenue
18.97 Net Interest
Operating
Provisions Expenses 100% Net Fee Income
Income 12.86
1.78 12.59
2.08 68%
10% 66%
11%
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Deposits and Loans

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(in NT 100mn)
Average deposit balance Average loan balance
2,337
2,249 2,256
1,735 1,750 1,773
2020.H1 2020 2021.H1
Date 2021.H1 to 2020.H1
2021.H1 2020 2020.H1
Items Variation (%)
Average deposit balance 2,337 2,256 2,249 3.91
Average loan balance 1,773 1,750 1,735 2.19
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Deposit Breakdown - Average balance By type By currency (in NT 100mn) Time Deposits NTD Deposits FCY Deposits

(in NT 100mn)

Demand Deposits Time Deposits NTD Deposits FCY Deposits 53.49 % 50.62% 49.38 % 1,203 87.89% 1,183 85.82% 1,154 2,054 46.51% 1,930 1,046 14.18% 12.11% 319 283 2020.H1 2021.H1 2020.H1 2021.H1

Demand Deposits Increase NT$13,700 million. Time Deposits Decrease NT$4,900 million.

NTD Deposits Increase NT$12,400 million. FCY Deposits Decrease NT$3,600 million.

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Loan Breakdown - Average balance

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(in NT 100mn)
By customer By currency
Consumers Corporates Government NTD Loans FCY Loans
54.93% 53.02% 91.09%
87.90%
1,615
953
940 1,525
36.49%
34.06%
647
591
11.01%
10.49%
12.10%
191 186 8.91%
210
158
2020.H1 2021.H1 2020.H1 2021.H1
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Consumers Loans Increase NT$5,600 million. Corporates Loans Decrease NT$1,300 million. Government Loans Decrease NT$500 million.

NTD Loans Increase NT$9,000 million. FCY Loans Decrease NT$5,200 million.

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Net Interest Spread and NIM

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(in %)
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Net Interest Spread NIM
1.32 1.31
1.28
0.99 1.01
0.99
2020.H1 2020 2021.H1
Date 2021.H1 to 2020.H1
2021.H1 2020 2020.H1
Items variation
Net Interest Spread 1.31 1.28 1.32 (0.01)
NIM 1.01 0.99 0.99 0.02
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Asset Quality

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(in %)
Coverage Ratio NPL Ratio
2
463.98
410.54
382.60
400
1
0.28 0.30 0.28
200 0
2020/6/30 2020/12/31 2021/6/30
Date 2021/6/30 to
2021/6/30 2020/12/31 2020/6/30
Items 2020/6/30 variation
Coverage Ratio 463.98 382.60 410.54 53.44
NPL Ratio 0.28 0.30 0.28 0
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Capital Adequacy Ratio

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(in %)
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Total CAR Tier1 CET1
13.03
12.44 12.42
11.27
10.50 10.49
9.48
9.30 9.31
2020/6/30 2020/12/31 2021/6/30
Date 2021/6/30 to
2021/6/30 2020/12/31 2020/6/30
Items 2020/6/30 Variation
Total CAR 13.03 12.42 12.44 0.59
Tier1 11.27 10.49 10.50 0.77
CET1 9.48 9.31 9.30 0.18
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Credit Ratings Long term Short term Fitch Ratings Outlook (Domestic) (Domestic) 2018 AA-(twn) F1+(twn) Stable 2019 AA-(twn) F1+(twn) Stable 2020 AA-(twn) F1+(twn) Stable

Long term Short term Fitch Ratings Outlook (IDR) (IDR) 2018 BBB+ F2 Stable 2019 BBB+ F1 Stable 2020 BBB+ F1 Stable

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Business Results in 2021 Q2

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Robust Performance with Steady Profit Growth.
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Net Revenue structure steadily optimized , and the proportion of
financial operation and fee income increased.
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Deposit structure improved , and the proportion of low-interest
demand deposits is higher than that of time deposits.
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Asset - debt structure’s optimization taking effect , NIM starting to
increase.
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，
Asset Quality Optimized Capital Adequacy Ratio Improved.
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Credit Rating remains unchanged with stable outlook.
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Prospects

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Prospects

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Improve credit quality of loans, expand deals guaranteed by
Taiwan SMEG.
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Continue to increase the proportion of demand deposit , and
reduce capital costs.
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Increase fee based revenue.
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Strengthen financial operations performance.
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Strengthen digital banking.
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Thanks for Listening

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