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CTBC HOLDING Call Transcript 2016

May 18, 2016

52221_rns_2016-05-18_58e425a4-1cf3-4f8a-bcf5-d1b1265463c0.pdf

Call Transcript

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CTBC Holding Analyst Meeting Financial Review of 4Q15/2015

March 29[th] , 2016 Investor Relations

DISCLAIMER

THE FINANCIAL INFORMATION IN THESE MATERIALS AS OF AND FOR THE TWELVE MONTHS ENDED DECEMBER 31[st] , 2015 ARE PRELIMINARY. CTBC HOLDING EXPECTS TO FILE ITS UNAUDITED FINANCIAL STATEMENTS, WHICH ARE SUBJECT TO REVIEW BY ITS AUDITORS, WITH THE ROC SECURITIES AND FUTURES BUREAU ON OR ABOUT MARCH 31[st] , 2016.

These materials are not an offer for sale of securities in the United States. Securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.

2

CTBC Holding’s highlight in 2015

Holding • Strong earnings with ROE at 14.0%, ROA at 0.86%, EPS is $2.10 and net profit grew
14.7% YoY excluding one-off1
• Well capitalized with CAR at 142.4% and DLR at 112.8%
Bank • High NII attributing to robust loan growth in NTD corporate, mortgage & FCY loan
• Strong fee momentum in WM and corporate businesses
• TRF reserve was increased in Dec 2015 in accordance to IFRS 13 for credit valuation
adjustment
• Benign asset quality with low credit cost; fully complied with 1.5% reserve on China-
related loans
• Strong capitalization with CAR at 13.0% and Tier 1 at 11.0%
Insurance • Acquired Taiwan Life in Oct. 2015 and integrated around 5,700 tied agents
• Post merger:
- FYP market share was 7.9% with #4 in ranking
- TP market share was 6.5% with #5 in ranking
• CTBC Holding injected NT$12bn into Taiwan Life in Dec 2015; Taiwan Life and CTBC
Life combined pro-forma RBC reached 320%
Others • Completed sale of Xinyi Headquarter and booked disposal gain of NT$7.2 billion
• CTBC Insurance Brokers merged into CTBC Bank on Nov. 30th, 2015
  1. One-off: 2014- bargain purchase gain of NT$14.8 bn 2015- HQ disposal gain of NT$7.2 bn © CTBC Financial Holding .

3

CTBC Holding’s strategic focus and deals updates

1 2 3 Extend business to nonStrengthen home base Expand presence in Asia bank

  • Tokyo Star Bank merger was completed on June 5[th] , 2014

  • Taiwan Life merger was completed on October 15[th] , 2015

  • • ABC Life equity participation

  • Contract had expired and renegotiating contract with sellers

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  • China CITIC Bank to invest 3.8% in CTBC Holding & Acquisition of CITIC International China

  • China CITIC Bank: Received CBRC’s approval on December 21[st] , 2015, under FSC’s preview process

  • CITIC International China: Received FSC’s approval on August 25[th] , 2015, under CRBC’s preview process

  • Securities JV in Fujian Province

  • Preparing application for regulatory approval

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  • Consumer finance JV

  • BOD terminated Consumer Finance JV in Anhui Province and approved a new Consumer Finance JV with GOME Group & Jinyuan Group in Xiaman City, Fujian Province, on February 24[th] , 2016

  • Thailand

  • CTBC Bank and LH Financial Group Public Company Ltd. (LHFG) have signed MOU on March 29[th] , 2016 to acquire 35.6% of LHFG through private placement of new share issuance at THB2.2 per share. Total estimated consideration is THB16.6bn or NT$15.4 bn with P/B at 1.67x of December 2015 book value. This is still subject to the approval of the competent authorities in Taiwan and Thailand

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4

© CTBC Financial Holding

CTBC Holding’s profitability

Excl. one-off

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Consolidated net profit EPS
NT$ mm NT$
Retroactively adjusted EPS Reported EPS
YoY +14.7%
2.39
2.10
YoY -10.2% 1.24 1.38 1.34
0.94
1.61 1.68
39,437
35,398
2.58
2.10
21,182 21,503 1.61 1.65
18,290 1.50
1.32
14,134
2010 2011 2012 2013 2014 1 2015 1,2 2010 2011 2012 2013 2014 1 20151,2
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Consolidated net profit NT$ mm

CTBC Holding’s numbers are presented on a consolidate basis.

  1. 2014 include the one-off bargain purchase gain of NT$14.8 bn and 4Q15/ 2015 include the one-off HQ disposal gain of NT$7.2 bn

  2. 2015 numbers are preliminary

5

© CTBC Financial Holding

.

CTBC Holding’s ROE & ROA

Excl. one-off

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ROE ROA
% %
CTBC Holding TW FHCs avg. CTBC Holding TW FHCs avg.
ROC GAAP IFRS ROC GAAP IFRS
11.67% 11.14% 0.81% 0.68%
18.69%
1.30%
13.97% 1.03%
12.76% 13.02% 11.93% 0.95% 0.95% 0.86%
10.53% 0.79%
2010 2011 2012 2013 2014 1 2015 1,2 2010 2011 2012 2013 2014 1 2015 1,2
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CTBC Holding’s numbers are presented on a consolidate basis.

  1. 2014 include the one-off bargain purchase gain of NT$14.8 bn and 4Q15/ 2015 include the one-off HQ disposal gain of NT$7.2 bn

  2. 2015 number is preliminary

6

© CTBC Financial Holding

Excl. one-off

CTBC Holding’s net profit breakdown by entity

Incl. one-off

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CTBC Holding’s net profit breakdown
NT$ mm
YoY +22.8% YoY +14.7%
YoY-7.1% YoY -10.2%
2015 [1 ] 2015 [1 ]
Breakdown % Breakdown %
excl. one-off excl. one-off
241 830 (855) 35,398
34,240 941
Bank (incl.
Insurance 96% Taiwan 57%
Brokers)
Overseas [6] 43%
Life [3 ] 3%
Others [4 ] 1%
Bank Life 3 Securities Other Holding 5 CTBC Holding
2015 1,2 Subsidiaries 4 2015 1,2
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CTBC Holding’s numbers are presented on a consolidated basis.

  1. 2015 numbers are preliminary. 2015 includes the one-off HQ disposal gain of NT$7.2 bn while 2014 includes the one-off bargain purchase gain of NT$14.8 bn

  2. CTBC Insurance Brokers was merged into CTBC Bank on Nov. 30, 2015. YoY comparison includes Insurance Brokers in both 2014 and 2015. 3. Life includes CTBC Life & Taiwan Life

  3. © CTBC Financial Holding Other subsidiaries include CTBC Venture Capital, Asset Management, Taiwan Lottery, Securities and Investment Trust 5. Holding (on a non-consolidated basis) is an adjustment item for compiling consolidated statement.

  4. Overseas include OBU, overseas branches and subsidiaries

7

CTBC Holding’s net profit movements

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Excl. one-off
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Incl. one-off

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CTBC Holding’s net profit movements
NT$ mm , %
CTBC Holding excl. Insurance Insurance one-off
YoY +14.7%
YoY +10.1% YoY -62.6% YoY +13.0% YoY -43.0% YoY + 11.7 %
YoY -10.2%
NT$14,814mn
of bargain
purchase gain
45,161 +2,217 -6,038 +7,157 -5,653
+7,977
-683
33,893 35,398
30,347
2014 Profit Operating Provision Expense Life Insurance 2015 Profit HQ disposal Tax 2015 Net Profit 1
before tax Revenue net profit before tax excl. gain after tax 1
before tax one-off 1
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CTBC Holding’s numbers are presented on a consolidated basis.

1 2015 numbers are preliminary

8

© CTBC Financial Holding

CTBC Holding’s strong capitalization

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CTBC Holding’s CAR
%
156.6% 156.4%
147.2% 142.4%
117.6% 118.2%
2010 2011 2012 2013 2014 2015 1
CTBC Life RBC
%
500-550% Pro-forma [3 ]
400-450%
300-350% 320%
200-250%
CFHC’s numbers are presented on a consolidated basis. 1
2011 2012 2013 2014 2015
1. 2011 numbers are preliminary.
2. 2011 industry BIS ratio is as of Sep. 11
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CTBC Bank’s CAR ratio
%
Basel II Basel III [2 ]
14.7% 14.0% 14.3% 13.5% 13.0%
11.8%
1
2010 2011 2012 2013 2014 2015
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CTBC Bank’s Tier I ratio
%
Basel II Basel III [2 ]
11.6% 11.4% 11.9% 11.0%
10.5%
9.7%
2010 2011 2012 2013 2014 2015 1
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CTBC Holding’s numbers are presented on a consolidated basis.

  1. 2015 number is preliminary

  2. CTBC Bank adopted Basel III since 2013

  3. Pro-forma is CTBC Life & Taiwan Life combined © CTBC Financial Holding

9

CTBC Holding’s revenue breakdown (excl. Life)

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CTBC Holding’s revenue breakdown (excl. one-off )
NT$ mm, %
QoQ +2.6% QoQ +1.5% QoQ -95.4% QoQ +123.0% QoQ -139.8% NII
YoY +12.9% YoY +9.3% YoY +38.4% YoY -52.7% YoY +58.5%
11,437
11,145 Include one-off: QoQ +1603% 49% 50%
10,520 10,516 2014: NT$14.8 bn YoY - 50.7% Fee
10,387 10,161
bargain purchase gain
2015: NT$7.2 bn HQ 4Q14
8,471
8,348 disposal gain 1Q15
8,238 Derivatives
7,678
2Q15 & FX
3Q15
4Q15 1 41% 41% Trading
3,430
2,588 6% LT
1,884 7% investment
7%
1,272 1,297 1,621 -2% -1% 3% & Others
412
159 324 2014 2015 1
(41) (294) (134) (164) Revenue excl. one-off % (excl. % (incl.
(1,406) (828) (NT$ mm) one-off) one-off)
Net Interest Fee Income Derivatives & FX Trading Gains LT investment &
Income Others 2014: 78,593 2015 [1] : 86,569 +10.1% +0.4%
3Q15: 21,928 4Q15 [1] : 20,227 -7.8% +25.0%
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CTBC Holding’s numbers are presented on a consolidated basis.

  1. 4Q15 & 2015 numbers are preliminary. 2015 includes the one-off HQ disposal gain of NT$7.2 bn while 2014 includes the one-off bargain purchase gain of © CTBC Financial Holding NT$14.8 bn.

10

CTBC Bank’s lending portfolio breakdown

Loan breakdown[1 ] (incl. Credit card revolving balance) NT$ bn, %

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QoQ -2.5% QoQ -0.6% QoQ +8.1% QoQ +1.4% QoQ +1.4% QoQ +4.1%
YoY +10.2% YoY +6.7% YoY +23.7% YoY +3.7% YoY -7.0% YoY +40.0%
Corporate
NTD Loan
26% 26%
4Q14 FCY Loan
935 930
1Q15
872 866 872
2Q15 Mortgage
3Q15
4Q15 2 2 47% 45%
Unsecured
Consumer
523 541 527
487
478 450 Credit Card
393 416 Revolving
364 372
20% 22%
Others
6% 5%
1% 1%
1% 1%
102 102 103 104 106 2014 2015 2
15 14 14 14 14 16 18 19 22 22
Total Lending [3] portfolio (NT$ bn) %
Corporate NTD FCY Loan Mortgages Unsecured Credit Card Others
Loan Consumer Revolving 2014: 1,863 2015 [2] : 2,053 +10.2%
Sep 15: 2,046 Dec 15 [2] : 2,053 +0.3%
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These numbers are presented on CTBC Bank consolidated basis.

  1. Loan breakdown is presented on performing loan basis, excluding non-accrual loans.

  2. 4Q15 and 2015 numbers are preliminary.

11

  1. Total lending portfolio includes performing loans, non-accrual loans and credit card revolving balance. © CTBC Financial Holding

CTBC Bank’s FCY loan breakdown

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FCY loan breakdown 1 FCY loan growth
% NT$ bn, %
Dec 2014 Dec 2015 2
DBU
1.7% YoY YoY YoY YoY
+8.1% +9.1% -13.8% -9.1%
OBU
11.0%
554
512
Tokyo Star
Overseas
Bank
Branches
48.3%
27.8% 258
237
118
Overseas 102
Subsidiaries
59.6%
17 16
1 Total: NT$930bn 1
Overseas Overseas OBU DBU
Subsidiaries Branches
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These numbers are presented on CTBC Bank’s consolidated basis.

  1. Loan breakdown is presented on performing loan basis, including non-accrual loans.

  2. Dec 2015 number is preliminary

12

© CTBC Financial Holding

CTBC Bank’s deposit mix

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NTD Deposit FCY Deposit
NT$ bn, % NT$ bn, %
As of Dec
Time Savings YoY +13.4% Time Savings 2015, total YoY +12.3%
RMB deposits
1,400 1,400
was RMB
22.9 bn
1,200 1,200
44.4%
1,000 1,000
48.1%
800 800
600 600
400 400
55.6%
51.9%
200 200
0 0
Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 1 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 1
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These numbers are presented on CTBC Bank’s consolidated basis. 1. Dec 15 number is preliminary

13

© CTBC Financial Holding

CTBC Bank’s LDR

Overall LDR[1 ] NT$ bn, %

NTD LDR[1 ] NT$ bn, %

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Overall LDR
78.77% 78.73%
77.20% 76.68%
76.44%
Loan & Credit card receivables 2
Deposits 3
2,734
2,707
2,504 2,528
2,421
2,090 2,096
1,990
1,907 1,914
Dec 14 Mar 15 Jun 15 Sep 15 Dec 154
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NTD Loan & credit card receivable NTD Deposit NTD LDR
82.19%
81.83% 81.91%
79.10%
76.88%
1,348 1,351 1,444 1,417
1,249
1,022 1,036 1,107 1,142 1,165
Dec 14 Mar 15 Jun 15 Sep 15 Dec 154
FCY LDR
NT$ bn, %
FCY Loan FCY Deposit FCY LDR
75.50% 75.92% 75.09% 75.04%
70.76%
1,172 1,156 1,176 1,263 1,317
885 877 883 948 932
Dec 14 Mar 15 Jun 15 Sep 15 Dec 154
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These numbers are presented on CTBC Bank consolidated basis.

  1. Credit card account receivables are included in the calculation of CTBC Bank’s LDR 2. Loans include both performing and non-accrual loans

  2. Deposit is adjusted to exclude structured deposits and remittances © CTBC Financial Holding 4. Dec 15 number is preliminary

14

CTBC Bank’s NIM and spreads

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Quarterly NIM & Interest earning assets Overall, NTD & FX spread vs. Industry
NT$ bn, % %
NIM Overall spread NTD spread
FCY spread Industry average
1.42% 1.40% 1.42% 1.42%
1.39%
Avg. interest earning assets
2.25% 2.28%
2.14%
2.08%
1.96%
1.87% 1.86% 1.90% 1.91%
2,925 2,985 3,007 3,090 3,171 1.79%
1.68%
1.64% 1.63% 1.60% 1.59%
1.44% 1.42% 1.43% 1.46% 1.44%
1
4Q14 1Q15 2Q15 3Q15 4Q15 1 4Q14 1Q15 2Q15 3Q15 4Q15 1
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These numbers are presented on CTBC Bank consolidated basis.

  1. 4Q15 number is preliminary

15

© CTBC Financial Holding

CTBC Holding’s fee breakdown

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CTBC Holding’s fee income breakdown
NT$ mm, %
QoQ +4.3% QoQ +9.3% QoQ +3.1% QoQ -4.1% QoQ +8.5% QoQ -17,7%
YoY +5.7% YoY +7.2% YoY +6.5% YoY +18.0% YoY +42.8% YoY +5.8%
Wealth
mgmt
4,436 4Q14
48% 47% Credit Cards
4,118
3,983 1Q15
3,947
3,759
2Q15
Retail
Business
3Q15
14%
4Q15 2 14% Corporate
6% Business
6%
2,407
11% 12% Overseas
Subsidiaries
5% 7%
1,336 Lottery
1,230 1,223 1,242 15% 15%
1,207 1,068
1,144 825 1,025 984 943 680 875 887 880 2014 2015 2
467 478 474 500 515 522 672 445 626
Total Fees (NT$ mm) %
Wealth Mgmt Credit Cards Retail Business Corporate Overseas Lottery 2014: 32,228 2015 [2] : 35,219 +9.3%
Business 1 Subsidiaries
3Q15: 8,348 4Q15 [2] : 8,471 +1.5%
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CTBC Holding’s numbers are presented on a consolidated basis.

  1. Corporate business excludes overseas subsidiaries

  2. 4Q15 & 12M15 numbers are preliminary. . © CTBC Financial Holding

16

© CTBC Financial Holding

CTBC Bank’s wealth management fee

Wealth mgmt. fee breakdown NT$ mm

Wealth mgmt. fee breakdown %

Wealth mgmt. fee breakdown
NT$ mm		 Wealth mgmt. fee breakdown
NT$ mm		 Wealth mgmt. fee breakdown
NT$ mm		 Wealth mgmt. fee breakdown
NT$ mm		 Wealth mgmt. fee breakdown
NT$ mm		 Wealth mgmt. fee breakdown
NT$ mm		 Wealth mgmt. fee breakdown
%		 Wealth mgmt. fee breakdown
%		 Wealth mgmt. fee breakdown
%
2,384
2,693
1,299
1,663
~~76~~
76
~~1~~
~~4~~
Structured & Others
Custodian & Trust
Mutual Fund
Bancassurance
3,759
4,436		 2,303
2,599
2,876
1,601
1,230
1,116
77
72
72
~~2~~
45
53
2Q15
3Q15
4Q15
4,118
3,983
3,947
1		 1
63%
61%
58%
66%
70%
35%
37%
40%
31%
27%
~~2%~~
~~2%~~
2%
2%
2%
~~1%~~
~~1%~~
Structured & Others
Custodian & Trust
Mutual Fund
Bancassurance

1,663
76
1,601
77
~~76~~
1,299
1
63%
2,693
2,384
2,303
4Q14 1Q15 4Q14
1Q15
2Q15
3Q15
4Q15
1

CTBC Holding’s numbers are presented on a consolidated basis.

  1. 4Q15 number is preliminary

17

© CTBC Financial Holding

CTBC Holding’s cost to income ratio (excl. Iife & one-off)

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CTBC Holding’s Cost-to-Income ratio [1] and Revenue & Non-Interest Expense
NT$ mm, %
CIR
68.7%
62.1% 66.1%
56.4%
52.0%
Revenue Non-Interest Expense
22,615
21,800 21,928
20,451 20,227
14,971
13,370
12,699 12,745
11,403
2
4Q14 1Q15 2Q15 3Q15 4Q15
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  • CTBC Holding’s numbers are presented on a consolidated basis.

  • Cost-to-Income ratio is derived by dividing Total Non-interest Expense by Pre-provision Operating Revenue 2. 4Q15 number is preliminary and excludes HQ disposal gain © CTBC Financial Holding

.

18

CTBC Holding’s expense & CIR (excl. life & oneoff)

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12M15 normalized expense growth rate [1 ] Normalized Cost-to-Income Ratio [1]
% %
YoY
Normalized CIR
Headline growth Normalized growth
13.0% +6.6%
56.4% 57.2%
13.0%
Revenue Non-Interest Expense
73,129
-8.0% 69,628
6.6%
-1.0%
+2.6%
41,817
39,244
12M15 YoY TSB ESOP Sales Tax 12M15 YoY
expense Impact normalized 12M14 12M15
growth rate expense
growth rate
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CTBC Holding’s numbers are presented on a consolidated basis.

  1. Normalized expense growth rate and cost-to-income ratio excludes TSB, ESOP, sales tax impact, bargain purchase gain & HQ disposal gain

.

19

© CTBC Financial Holding

CTBC Bank’s asset quality remained benign

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NPL Ratio [ 1]
%
Total NPL
0.96%
0.86%
0.77% 0.78% 0.78%
Corporate 2 Retail Subsidiaries
2.84%
2.43% 2.42%
2.22%
2.10%
0.41%
0.29% 0.34% 0.33%
0.23%
0.13% 0.12% 0.12% 0.12% 0.12%
Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 3
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NPL Coverage Ratio
NT$ bn, %
CTBC Reserve NPL coverage ratio
170.6%
166.1% 168.4% 168.8%
153.7%
NT$812mn for
1.5% on China-
NT$1,871mn for 1.5% related
on property related
27.1 26.4 26.8 27.0
25.3
Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 3
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These numbers are presented on CTBC Bank consolidated basis. 1. NPL refers to loans over 90 days overdue © CTBC Financial Holding 2. Excludes overseas subsidiaries 3. Dec 15 number is preliminary

20

CTBC Bank’s credit cost trend

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Provisioning Ratios & Provision Costs
NT$ mm, %
Headline Normalized
0.68%
0.26%
0.10%
-0.06% -0.08%
0.29%
0.10%
1.5% GP
for
property-
1.5% GP
1,871 related for
China-
related
812
1,409
537 513
(301) (402)
4Q14 1Q15 2Q15 3Q15 4Q15 1
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These numbers are presented on CTBC Bank consolidated basis. 1. 4Q15 number is preliminary

21

© CTBC Financial Holding

Life - Total Premium (TP) breakdown

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Total Premium (TP) Total Premium (TP) mix
NT$ mm, % %
% CTBC Life Industry
YoY +5.3% +5.6%
Pro forma
191,488
22%
29%
33%
51% RP
Taiwan
55,274 Life 64%
129,366
CTBC
Life
78% FYP
74,009 71%
67%
136,215
44,483 49%
36%
16,388
1 1
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
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  1. 2015 pro-forma number includes CTBC Life and Taiwan Life

22

© CTBC Financial Holding

Life - First Year Premium (FYP) overview

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First Year Premium (FYP) Renewal Premium (RP) grew rapidly
NT$ mm, % NT$ mm, %
% CTBC Life Industry % CTBC Life Industry
YoY -11.3% +1.4% YoY +39.7% +8.7%
Pro-forma Pro-forma
93,738 97,751
16,376
Taiwan
Life
38,897
Taiwan
Life
CTBC
87,246 Life
77,361
CTBC
52,773 58,853 Life
34,582 42,121
21,236
5,909 10,479 9,900
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
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Data resource: Life insurance association and Taiwan Insurance Institution

23

© CTBC Financial Holding

Life - FYP breakdown by channels

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Year 2015 FYP breakdown by channels _ CTBC Life Year 2015 FYP breakdown by channels _ Pro-forma [1 ]
% %
Others, Others,
0.3% 0.2%
Tied
Brokers, Agent,
10.7% 8.6% Tied
Bank-
Agent,
15.7% CTBC,
39.2%
Tele- Brokers,
Bank-
marketing 8.9%
CTBC,
2.2%
47.4%
Tele-
marketing
1.9%
Bank-
External,
30.8% Bank-
External,
34.0%
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  1. 2015 pro-forma number includes CTBC Life and Taiwan Life

24

© CTBC Financial Holding

Life - FYP breakdown by products

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Year 2015 FYP breakdown by products _ CTBC Life Year 2015 FYP breakdown by products _ Pro-forma [1]
% %
Traditional Traditional
Life- Life-
Investment- Others, Others, Investment- Others, Others,
Linked, 0.7% 6.6% Linked, 2.2% 8.0%
14.2%
13.1%
Interest Interest
crediting crediting
annuity, annuity,
0.2% 0.2%
Traditional Traditional
Life- Life-
Interest Interest
crediting, crediting,
78.2% 76.6%
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  1. 2015 pro-forma number includes CTBC Life and Taiwan Life

25

© CTBC Financial Holding

Life - First Year Premium Equivalent (FYPE) overview

First Year Premium Equivalent (FYPE) NT$ mm, %

Year 2015 FYPE breakdown by channels %

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% CTBC Life Industry
8% 3% Others
YoY -18.7% +18.0% 10% 23%
9% Tied Agent
7%
28% 7% Brokers
Pro-forma
27%
26,503 Tel-marketing
Bank-External
45%
33%
Taiwan Bank-CTBC
6,935 Life CTBC Life Pro-forma 1
Year 2015 FYPE breakdown by products
%
CTBC
3% 4% Others
Life 6% 5%
24,060 Investment-
Linked
19,568 59%
65% Traditional Life-
15,730
Interest crediting
13,166
Interest crediting
0%
0% annuity
25% 32% Traditional Life-
1,865 Others
2011 2012 2013 2014 2015 CTBC Life Pro-forma 1
----- End of picture text -----

  1. 2015 pro-forma number includes CTBC Life and Taiwan Life

26

© CTBC Financial Holding

Life - Investment portfolio breakdown

==> picture [625 x 371] intentionally omitted <==

----- Start of picture text -----

CTBC Life’s total investment assets Year 2015 total investment portfolio breakdown
NT$bn %
4.4% 0.5% 2.3% 2.3%
3.1% 3.0% Mutual fund
3.8% 2.3%
1.5% 6.0%
4.9%
3.6%
Pro forma
8.0%
10.5% 9.2% Real Estate
956.9
Policy loan
499.9 Mortgage
51.9%
50.8%
49.6%
Taiwan
Life Equities
Overseas fixed
income
CTBC
Life
18.0%
426.1 457.0 20.1% Domestic fixed
347.3 376.5 394.1 22.3% income
10.2% 7.4% Deposit and
4.3%
cash equivalents
Dec14 Mar15 Jun15 Sep15 Dec15 CTBC Life Taiwan Life Pro-forma
----- End of picture text -----

  1. 2015 pro-forma number includes CTBC Life and Taiwan Life

27

© CTBC Financial Holding

Life – Profit trend and breakdown

==> picture [640 x 371] intentionally omitted <==

----- Start of picture text -----

CTBC Life’s net profit before tax CTBC Life’s total Investment Return [3] & Cost of Liabilities [3]
NT$mm %
CTBC Life
6.0%
Total Investment Return
Taiwan Life 2 Cost of Liabilities
5.5%
Taiwan Life
impaired loss 2 5.0%
2,121
1,590
4.5%
4.01%
4.0%
229
135
2012 1 2013 2014 2015 3.5%
(467) 3.56%
Taiwan Life recognized 3.0%
impaired loss of NT$748mm
(748)
(~61%) in Brazil Samarco
Mineracao S.A. corporate
2.5%
bond 2012 1 2013 2014 2015
(1,215)
----- End of picture text -----

  1. 2012 is based on ROC GAAP

  2. Taiwan Life ‘s earnings is from Oct 15[th] to Dec 31[st] , 2015

28

© CTBC Financial Holding 3. Cost of Liabilities is reserve- based and total investment return is after FX and hedging

Life –Post-merger overview

Year 2015 Total Asset & others Year 2015 Total Asset & others Year 2015 Total Asset & others Year 2015 Total Asset & others Year 2015 Total Asset & others Year 2015 Total Asset & others Year 2015 Total Asset & others
Year 2015 Asset (NT$bn) # of
Policyholder
(‘000)		 # of Agents FYP
MS%, Rank No		 TP
MS%, Rank No		 RBC %
CTBC Life 500.2 730 2,230 6.5%, (6) 4.7%, (8) 284%
Taiwan Life 553.6 710 6,195 1.4%, (14) 1.9%, (12) 324%
Pro-forma 1,053.8 1,440 8,425 7.9%, (4) 6.5%, (5) 320%

29

© CTBC Financial Holding

CTBC Bank’s Equity investment in Thailand

30

© CTBC Financial Holding

Transaction Overview

==> picture [109 x 36] intentionally omitted <==

  • CTBC Bank Co., Ltd. (“CTBC”) and LH Financial Group Public Company Ltd. (“LHFG”) sign the Memorandum of Understanding (“MOU”) in relation to new share issuance in Share Subscription Agreement. The Transaction is still subject to regulatory approvals in Taiwan and Thailand.

  • Equal footing with the major shareholders : CTBC will obtain 35.6% of the shares of LHFG; both CTBC and LH Group are the largest shareholders of LHFG after the Transaction.

Transaction Terms

  • Board Seats : CTBC shall have the right to nominate 2 directors and 1 independent director among the current 9 members of LHFG board of directors. After the New Business is launched by CTBC, the members of LFHG board of director shall increase to 11 and CTBC shall be entitled to nominate in total 3 directors and 2 independent directors of LHFG.

  • Shared management control : LHFG agrees that CTBC’s investment in LHFG is solely for the banking business (LH Bank). CTBC will have the right to nominate three key management and LHFG will collaborate on banking businesses including trade finance, wealth management, digital banking, etc.

New Shares Issued

  • LHFG agrees to issue 7,545 million new common shares (“Shares”) through private placement to be subscribed by CTBC.

Transaction Price*

  • The issuing price is THB 2.2 per share (approximately implied 1.67x of LHFG’s shareholders' equity at December 31, 2015). Total estimated Transaction amount is approximately THB 16.6 billion (TWD 15.4 billion[**] ).

Estimated Closing Day

  • by the end of third quarter of 2016

Confidential * The transaction price is still subject to due diligence results. ** Per 2016/3/29 exchange rate: 1 THB = 0.93 NTD

31

Transaction Overview (Con’t)

==> picture [109 x 36] intentionally omitted <==

==> picture [114 x 394] intentionally omitted <==

----- Start of picture text -----

Shareholding
Structure
----- End of picture text -----

==> picture [439 x 178] intentionally omitted <==

----- Start of picture text -----

Land & Ownership
Houses -
(Pre investment)
Quality
Others
Houses
21.3% 34.0% 44.7%
LHFG
----- End of picture text -----

==> picture [439 x 180] intentionally omitted <==

----- Start of picture text -----

Land & CTBC Bank Ownership
Houses -
(Post investment)
25.0%
Quality
Others
Houses
13.7% 21.9% 35.6% 28.8%
Land & Houses
Group 35.6%
LHFG
----- End of picture text -----

Confidential

32

Business and Financial Summary

==> picture [109 x 36] intentionally omitted <==

==> picture [320 x 30] intentionally omitted <==

----- Start of picture text -----

Business Network
----- End of picture text -----

  • At the end of 2015, there were 126 branches and 1,733 employees in LH Bank

  • • Scattered network of branches around the country- 64% of network located outside of Bangkok

  • • Ranked as No. 13 in terms of total assets; No. 9 in terms of the number of branches among industry and No. 2 among small bank peers Loan Compositions LHFG

  • 99.99% 99.99% 99.79%

  • LH Bank LH Fund LH Securities

==> picture [320 x 30] intentionally omitted <==

----- Start of picture text -----

Financial Highlight
----- End of picture text -----

THB in millions FY2013 FY2014 FY2015
Income Statement
Revenue 3,315 4,247
5,543
Profit before Tax 1,100 1,492
2,054
Profit after Tax 893 1,201
1,652
Balance Sheet
Total Assets 149,099 164,970 199,667
Total Liabilities 134,078 148,684 181,716
Total Owners’ Equity 15,021 16,286
17,951
Key Ratios FY2015
Net Interest Margin 2.42%
NPL Ratio(1) 1.89%
Cost to Income Ratio 43.28%
Return on Asset（ROA） 0.91%
Return on Equity（ROE） 9.65%
Tier 1 Capital Adequacy Ratio
（Tier 1）(1)		 10.18%
Capital Adequacy Ratio
(CAR）(1)		 14.01%

Confidenti 機密 Note al 1. LH Bank only

33

CTBC Holding

Financial Review of 4Q15/2015

Appendix

March 29[th] , 2016 Investor Relations

DISCLAIMER

THE FINANCIAL INFORMATION IN THESE MATERIALS AS OF AND FOR THE TWLEVE MONTHS ENDED DECEMBER 31[st] , 2015 ARE PRELIMINARY. CTBC HOLDING EXPECTS TO FILE ITS UNAUDITED FINANCIAL STATEMENTS, WHICH ARE SUBJECT TO REVIEW BY ITS AUDITORS, WITH THE ROC SECURITIES AND FUTURES BUREAU ON OR ABOUT MARCH 31[st] , 2016.

These materials are not an offer for sale of securities in the United States. Securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.

35

CTBC Holding’s Summary Ratios

Yearly Results Yearly Results Yearly Results Quarterly results Quarterly results Quarterly results YTD Results
2012 2013 2014 4Q14 1Q15 2Q15 3Q15 4Q151 12M151
Per Share Data (Reported)
EPS (after-tax) (NT$) 1.65
1.50
2.58		 0.13 0.59 0.45 0.47 0.62 2.10
DPS (NT$) 1.41
0.75
1.62		 - - - - - -
BVPS (NT$) 13.66
13.10
15.03		 15.03 15.67 15.00 14.47 15.39 15.39
Common shares outstanding
(million share)		 12,417
14,713
15,257		 15,257 15,257 15,257 16,466 18,028 18,028
DuPont Analysis
ROAA (after-tax)
(%,annualized YTD earnings)		 1.03% 0.95% 1.30% 0.24% 1.06% 0.80% 0.79% 0.97% 0.86%
ROAE (after-tax)
(%,annualized YTD earnings)		 13.02% 11.93% 18.69% 3.80% 16.69% 12.74% 13.23% 16.21% 13.97%
Leverage & Solvency Ratios
Double Leverage Ratio (%) 100.4% 96.5% 105.3% 105.3% 105.2% 109.2% 109.6% 112.8% 112.8%
Avg. Equity / Avg. Assets (%) 8.27% 8.01% 6.29% 6.29% 6.34% 6.25% 6.01% 5.98% 6.20%
CAR - FHC (%) 156.6% 147.2% 156.4% 156.4% 150.0% 150.9% 150.9% 142.4% 142.4%
CAR - Bank (%) 14.29% 11.82% 13.46% 13.46% 12.90% 13.09% 12.89% 12.98% 12.98%
Tier 1 Ratio - Bank (%) 11.88% 9.66% 10.60% 10.60% 10.70% 10.98% 10.93% 11.02% 11.02%
CET1 Ratio - Bank (%) - 9.01% 9.14% 9.14% 9.32% 9.07% 9.10% 9.61% 9.61%

  1. 4Q15 and 12M15 numbers are preliminary.

  2. Numbers before 2012 (inclusive) are based on ROC GAAP.

36

CTBC Bank’s Summary Ratios (Consolidated)

Yearly Results Yearly Results Yearly Results Quarterly Results Quarterly Results Quarterly Results Quarterly Results Quarterly Results YoY Results YoY Results
2012 2013 2014 4Q14 1Q15 2Q15 3Q15 4Q151,2 12M151,2
Bank Growth Ratios 4.84%
2.95%
35.16%
5.96%
7.63%
12.31%
9.10%
1.23%
82.39%		 -5.58%
-1.48%
1.23%
6.36%
2.22%
-10.75%
37.23%
-19.82%
1.25%
50.70%
-72.17% 264.41%
-20.64%
22.37% 112.17%		 12.58%
24.45%
-0.06%
NII growth
Fee growth
Net profit growth
Bank Performance Ratios
Loan growth 6.74%
13.38%
43.26%
4.49%
13.51%
39.94%
78.49%
77.93%
78.77%		 0.36%
0.61%
3.49%
5.66%
0.30%
1.07%
3.37%
0.97%
7.12%
0.95%
78.77%
76.44%
78.73%
77.20%
76.68%		 10.35%
12.87%
76.68%
Deposit growth
Loan-to-Deposit Ratio
NIM 1.57%
1.53%
1.50%
50.0%
46.6%
43.7%
41.4%
40.4%
31.8%
59.6%
59.1%
51.5%		 1.42%
1.40%
1.39%
1.42%
1.42%
54.3%
48.9%
50.6%
52.8%
37.8%
34.3%
43.0%
35.3%
35.0%
37.0%
64.5%
61.3%
69.2%
53.5%
44.1%		 1.41%
46.6%
37.5%
55.7%
NII / Operating income
Fee / Operating income
Cost-to-income ratio
Asset Quality Ratios
NPLs / Total Loans 0.41%
0.38%
0.96%		 0.96%
0.86%
0.77%
0.78%
0.78%		 0.78%
Reserve / Total Loans3 1.18%
1.47%
1.58%		 1.58%
1.52%
1.41%
1.42%
1.42%		 1.42%
Reserve / NPLs 253.55% 344.52% 153.66%
0.04%
0.49%
0.18%		 153.66% 166.15% 170.56% 168.40% 168.80%
0.68%
-0.06%
-0.08%
0.26%
0.10%		 168.80%
0.08%
Provision/Avg. Loans &
Revolv. Bal.

  1. 4Q15 and 12M15 numbers are preliminary.

  2. CTBC Insurance Brokers merged into CTBC Bank in Nov. 2015

  3. Effective 4Q11, calculation excluding government loan by regulatory definition. 4. Numbers before 2012 (inclusive) are based on ROC GAAP.

37

Balance Sheet of CTBC Holding and its major subsidiaries as of December 31, 2015[1 ]

NT$ million CTBC Bank
(consolidated)
CTBC Life
Taiwan Life
CTBC
Securities
CTBC AMC
CTBC
Capital
Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others2&
Adjustment
Items
CTBC Holding
(consolidated)		 CTBC Bank
(consolidated)
CTBC Life
Taiwan Life
CTBC
Securities
CTBC AMC
CTBC
Capital
Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others2&
Adjustment
Items
CTBC Holding
(consolidated)		 CTBC Bank
(consolidated)
CTBC Life
Taiwan Life
CTBC
Securities
CTBC AMC
CTBC
Capital
Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others2&
Adjustment
Items
CTBC Holding
(consolidated)		 CTBC Bank
(consolidated)
CTBC Life
Taiwan Life
CTBC
Securities
CTBC AMC
CTBC
Capital
Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others2&
Adjustment
Items
CTBC Holding
(consolidated)		 CTBC Bank
(consolidated)
CTBC Life
Taiwan Life
CTBC
Securities
CTBC AMC
CTBC
Capital
Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others2&
Adjustment
Items
CTBC Holding
(consolidated)		 CTBC Bank
(consolidated)
CTBC Life
Taiwan Life
CTBC
Securities
CTBC AMC
CTBC
Capital
Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others2&
Adjustment
Items
CTBC Holding
(consolidated)		 CTBC Bank
(consolidated)
CTBC Life
Taiwan Life
CTBC
Securities
CTBC AMC
CTBC
Capital
Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others2&
Adjustment
Items
CTBC Holding
(consolidated)		 CTBC Bank
(consolidated)
CTBC Life
Taiwan Life
CTBC
Securities
CTBC AMC
CTBC
Capital
Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others2&
Adjustment
Items
CTBC Holding
(consolidated)		 CTBC Bank
(consolidated)
CTBC Life
Taiwan Life
CTBC
Securities
CTBC AMC
CTBC
Capital
Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others2&
Adjustment
Items
CTBC Holding
(consolidated)		 CTBC Bank
(consolidated)
CTBC Life
Taiwan Life
CTBC
Securities
CTBC AMC
CTBC
Capital
Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others2&
Adjustment
Items
CTBC Holding
(consolidated)
Assets:
Cash and due from banks
Securities, net
483,210		 14,790 44,647 1,109 3,013 258 422 1,855 (33,023) 516,280
677,071 384,254 398,266 13,154 1,896 2,914 2,171 905 1,480,631
Loans, net
A/R, net
LT investments, net
Land, premises and
equipments, net
Others		 2,011,474 23,111 45,576 - - - - - - 2,080,162
147,663 5,858 7,900 2,871 6,214 40 1,087 211 (1,548) 170,296
2,220 13,265 783 - - - - 312,624 (312,572) 16,321
49,744 189 9,614 190 14 6 158 94 4,487 64,495
147,835 58,761 46,832 2,833 2,049 1,733 153 414 7,433 268,042
Total assets 3,519,218 500,228 553,618 20,157 13,185 4,950 1,820 317,369 (334,319) 4,596,227
Liabilities:
Deposits
Other liabilities
2,734,384 - - - - - - - (34,581) 2,699,802
551,342 474,345 529,582 12,705 7,754 37 294 39,862 2,910 1,618,830
Total liabilities 3,285,726 474,345 529,582 12,705 7,754 37 294 39,862 (31,672) 4,318,633
Minority interests 81 - - - - - - - 6 87
Total stockholders' equity 233,411 25,883 24,036 7,452 5,431 4,914 1,526 277,507 (302,653) 277,507
Total liabilities and
stockholders' equity		 3,519,218 500,228 553,618 20,157 13,185 4,950 1,820 317,369 (334,319) 4,596,227

  1. Others include Securities Investment Trust Co.

  2. These numbers are preliminary.

38

P&L of CTBC Holding and its subsidiaries for the year ended December 31, 2015[1]

~~N~~T$ million CTBC Bank
(consolidated)2
CTBC Life
Taiwan Life
CTBC
Securities CTBC AMC
CTBC
Capital		 CTBC Bank
(consolidated)2
CTBC Life
Taiwan Life
CTBC
Securities CTBC AMC
CTBC
Capital		 CTBC Bank
(consolidated)2
CTBC Life
Taiwan Life
CTBC
Securities CTBC AMC
CTBC
Capital		 CTBC Bank
(consolidated)2
CTBC Life
Taiwan Life
CTBC
Securities CTBC AMC
CTBC
Capital		 CTBC Bank
(consolidated)2
CTBC Life
Taiwan Life
CTBC
Securities CTBC AMC
CTBC
Capital		 CTBC Bank
(consolidated)2
CTBC Life
Taiwan Life
CTBC
Securities CTBC AMC
CTBC
Capital		 Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others3&
Adjustment
Items
CTBC Holding
(consolidated)		 Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others3&
Adjustment
Items
CTBC Holding
(consolidated)		 Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others3&
Adjustment
Items
CTBC Holding
(consolidated)		 Taiwan
Lottery
CTBC Holding
(non-
consolidated)
Others3&
Adjustment
Items
CTBC Holding
(consolidated)
Operating income
Net interest income
Fee income
Insurance business income, net
of reserves, claims, payments, etc.
4
LT investment income
Net trading income/(loss)
Derivatives & FX
Others5		 43,074 12,043 3,624 104 533 1 3 (287) 57 59,152
34,695 (9,563) (104) 427 - - 2,134 - (2,036) 25,552
- (1,723) (3,479) - - - - - 213 (4,989)
89 12 (15) - - - - 36,531 (36,542) 74
1,986 3,662 369 418 22 248 - 49 (300) 6,453
6,174 (174) (243) 236 (287) 3 - 3 29 5,740
6,432 161 (678) (4) 33 (70) 7 (35) 19 5,864
Total operating income 92,450 4,418 (527) 1,180 301 181 2,144 36,260 (38,561) 97,846
Operating costs
Business tax		 (48,021) (2,098) (563) (792) (288) (94) (1,088) (874) 2,268 (51,550)
(3,481) (130) (13) (101) (12) - - () (4) (3,741)
Total operating costs (51,502) (2,227) (575) (894) (301) (94) (1,088) (874) 2,264 (55,291)
Credit Loss Provisions, net (1,158) (70) (112) - (164) - - - - (1,505)
Profit Before Income Tax 39,789 2,121 (1,215) 286 (163) 87 1,056 35,387 (36,297) 41,050
Net Profit After Income Tax
6		 34,240 1,959 (1,018) 241 (113) 115 877 35,398 (36,302) 35,398

  1. These numbers are preliminary.

  2. CTBC Insurance Brokers merged into CTBC Bank in Nov. 2015.

  3. Others include Securities Investment Trust Co.

  4. Includes premium income, insurance claims & payment, insurance reserve, reinsurance expense, underwriting expense and other expense 5. Includes CTBC Life’s foreign exchange reserve

  5. Net profit after Income Tax is excluding Minority Interest Income.

39

CTBC Holding’s Balance Sheet (Consolidated)

NT$ million 2012
2013
2014
Yearly Results		 Dec 14
Mar 15
Jun 15
Sep 15
Dec 151
Quarterly Results
QoQ(%) YoY(%)
Assets:
Cash and due from banks
Securities, net
Loans, net
A/R, net
LT investments, net
Land, premises and
equipments, net
Others		 156,923
240,287
407,940
562,979
572,930
1,003,415
1,133,807
1,284,855
1,838,176
144,540
174,019
191,218
2,112
2,077
2,073
41,375
38,348
43,379
68,188
112,205
168,479
2,109,924
2,424,720
3,654,680		 407,940
352,114
390,882
433,716
516,280
1,003,415 1,132,084 1,053,742
1,125,251
1,480,631
1,838,176 1,851,903 1,918,113
2,028,596
2,080,162
191,218
186,505
189,582
163,252
170,296
2,073
2,096
1,815
2,557
16,321
43,379
44,382
46,325
49,831
64,495
168,479
166,934
151,605
221,889
268,042
3,654,680 3,736,018 3,752,064
4,025,091
4,596,227		 19.0%
26.6%
31.6%
47.6%
2.5%
13.2%
4.3%
-10.9%
538.2% 687.3%
29.4%
48.7%
20.8%
59.1%
Total assets 14.2%
25.8%
Liabilities:
Deposits
Other liabilities		 1,520,139
1,725,349
2,410,680
419,467
506,525
1,014,561
1,939,607
2,231,874
3,425,241
86
77
87
170,232
192,770
229,353
2,109,924
2,424,720
3,654,680		 2,410,680 2,494,314 2,517,494
2,693,046
2,699,802
1,014,561 1,002,536 1,005,664
1,093,629
1,618,830
3,425,241 3,496,850 3,523,158
3,786,675
4,318,633
87
84
83
83
87
229,353
239,084
228,824
238,333
277,507
3,654,680 3,736,018 3,752,064
4,025,091
4,596,227		 0.3%
12.0%
48.0%
59.6%
Total liabilities 14.0%
26.1%
Minority interests 5.1%
0.5%
Total stockholders' equity 16.4%
21.0%
Total liabilities and
stockholders' equity		 14.2%
25.8%

  1. Dec 15 number is preliminary.

  2. Numbers before 2012 (inclusive) are based on ROC GAAP.

40

CTBC Holding’s P&L (Consolidated)

NT$ million
Operating Income
Net interest income
Fee income
Insurance business income, net of
reserves, claims & payments, etc.2
Long term investment income
Trading income (loss) - equity, MTM
Trading income (loss) - FI , MTM
Derivatives & FX
Other income(loss)3
Operating Revenue
Non interest expenses
Operating expenses
Business tax
Total non-interest expenses
Credit loss provisions, net
Net profit before income tax
Net profit after income tax
4		 4Q14
1Q15
2Q15
3Q15
4Q151
QoQ %
12M14
12M151
YoY %
12,953
13,043
13,408
14,316
18,384
28.4%
46,561
59,152
27.0%
4,821
7,323
5,938
6,273
6,017
-4.1%
22,485
25,552
13.6%
102
429
(284)
(615)
(4,520)
-635.1%
1,590
(4,989)
-413.8%
15
15
(6)
39
26
-33.2%
(11)
74
749.0%
191
1,206
1,277
675
478
-29.1%
2,892
3,636
25.7%
2,636
2,114
2,182
(1,877)
399
121.2%
5,674
2,817
-50.3%
480
1,107
1,286
3,857
(511)
-113.2%
4,789
5,740
19.9%
(591)
(705)
54
27
6,489
24372.3%
13,384
5,864
-56.2%
20,607
24,532
23,857
22,695
26,763
17.9%
97,363
97,846
0.5%
(12,325) (12,278) (14,604) (10,898) (13,771)
26.4%
(45,533) (51,550)
13.2%
(1,022)
(1,007)
(869)
(944)
(922)
-2.4%
(3,024)
(3,741)
23.7%
(13,347) (13,284) (15,472) (11,842) (14,692)
24.1%
(48,557) (55,291)
13.9%
(3,512)
239
368
(1,445)
(667)
-53.8%
(3,645)
(1,505)
-58.7%
3,748
11,487
8,752
9,408
11,404
21.2%
45,161
41,050
-9.1%
2,149
9,774
7,449
7,723
10,452
35.3%
39,437
35,398
-10.2%
Quarterly Results
YTD Results

  1. 4Q15 and 12M15 number are preliminary.

  2. Includes premium income, insurance claims & payment, insurance reserve, reinsurance expense, underwriting expense and other expense 3. Includes CTBC Life’s foreign exchange reserve

  3. Net profit after Income Tax is excluding Minority Interest Income

41

CTBC Bank’s Balance Sheet (Consolidated)

Yearly Results Quarterly Results
NT$ million 2012
2013
2014		 Dec 14
Mar 15
Jun 15
Sep 15
Dec 151		 QoQ(%)
YoY(%)
Assets:
Cash and due from banks
Securities, net
Loans, net
A/R, net
LT investments, net
Land, premises and
equipments, net
Others
Total assets
Liabilities:
Deposits
Other liabilities
Total liabilities
Minority interests
Total stockholders' equity
Total liabilities and
stockholders' equity		 146,477
209,557
383,323
429,859
404,270
691,066
1,125,361
1,272,381
1,820,196
138,658
166,685
176,867
2,056
2,022
2,011
37,395
34,229
42,819
53,662
66,200
118,892
1,933,468
2,155,344
3,235,173
1,525,116
1,731,169
2,422,627
266,264
277,253
615,852
1,791,379
2,008,422
3,038,480
76
71
81
142,012
146,851
196,613
1,933,468
2,155,344
3,235,173		 383,323
330,104
376,574
415,375
483,210
691,066
784,068
681,516
739,114
677,071
1,820,196 1,832,223 1,898,165 2,005,504 2,011,474
176,867
167,972
173,020
148,435
147,663
2,011
2,048
1,765
1,821
2,220
42,819
43,765
45,674
49,159
49,744
118,892
114,803
96,635
157,151
147,835
3,235,173 3,274,983 3,273,350 3,516,560 3,519,218
2,422,627 2,504,352 2,528,532 2,708,672 2,734,384
615,852
567,108
537,379
588,169
551,342
3,038,480 3,071,460 3,065,912 3,296,841 3,285,726
81
78
77
77
81
196,613
203,445
207,362
219,643
233,411
3,235,173 3,274,983 3,273,350 3,516,560 3,519,218		 16.3%
26.1%
-8.4%
-2.0%
0.3%
10.5%
-0.5%
-16.5%
21.9%
10.4%
1.2%
16.2%
-5.9%
24.3%
0.1%
8.8%
0.9%
12.9%
-6.3%
-10.5%
-0.3%
8.1%
5.2%
0.4%
6.3%
18.7%
0.1%
8.8%

  1. Dec 15 number is preliminary.

  2. Numbers before 2012 (inclusive) are based on ROC GAAP.

42

CTBC Bank’s P&L (Consolidated)

NT$ million
Operating Income
Net interest income
Fee income
Long term investment income
Trading income (loss) -equity,MTM
Trading income (loss) - FI , MTM
Derivatives & FX
Other income (loss)
Operating Revenue
Non interest expenses
Operating expenses
Business tax
Total non-interest expenses
Pre-provision profit
Credit loss provisions, net
Net profit before income tax
Net profit after income tax
3		 4Q14
1Q15
2Q15
3Q15
4Q151,2
QoQ(%)
12M14
12M151,2
YoY (%)
10,435
10,281
10,407
11,070
11,316
2.2%
38,260
43,074
12.6%
6,589
9,042
7,250
7,341
11,062
50.7%
27,878
34,695
24.5%
14
29
(7)
41
25
-38.9%
(17)
89
618.7%
74
89
249
91
88
-4.2%
865
517
-40.3%
2,416
1,091
1,418
(1,352)
312
123.1%
3,407
1,470
-56.9%
(70)
1,294
1,290
3,395
194
-94.3%
4,298
6,174
43.6%
(256)
(812)
(38)
382
6,901
1708.2%
12,959
6,432
-50.4%
19,202
21,016
20,569
20,967
29,898
42.6%
87,650
92,450
5.5%
(11,621) (12,119) (13,441) (10,366) (12,096)
16.7% (42,856) (48,021)
12.1%
(760)
(758)
(801)
(843)
(1,079)
28.0%
(2,297)
(3,481)
51.5%
(12,380) (12,877) (14,242) (11,209) (13,175)
17.5% (45,154) (51,502)
14.1%
6,822
8,139
6,327
9,758
16,723
71.4%
42,496
40,948
-3.6%
(3,281)
301
402
(1,349)
(513)
-62.0%
(3,038)
(1,158)
-61.9%
3,541
8,440
6,730
8,409
16,211
92.8%
39,458
39,789
0.8%
1,947
7,096
5,632
6,891
14,621
112.2%
34,262
34,240
-0.1%
Quarterly Results
YTD Results		 4Q14
1Q15
2Q15
3Q15
4Q151,2
QoQ(%)
12M14
12M151,2
YoY (%)
10,435
10,281
10,407
11,070
11,316
2.2%
38,260
43,074
12.6%
6,589
9,042
7,250
7,341
11,062
50.7%
27,878
34,695
24.5%
14
29
(7)
41
25
-38.9%
(17)
89
618.7%
74
89
249
91
88
-4.2%
865
517
-40.3%
2,416
1,091
1,418
(1,352)
312
123.1%
3,407
1,470
-56.9%
(70)
1,294
1,290
3,395
194
-94.3%
4,298
6,174
43.6%
(256)
(812)
(38)
382
6,901
1708.2%
12,959
6,432
-50.4%
19,202
21,016
20,569
20,967
29,898
42.6%
87,650
92,450
5.5%
(11,621) (12,119) (13,441) (10,366) (12,096)
16.7% (42,856) (48,021)
12.1%
(760)
(758)
(801)
(843)
(1,079)
28.0%
(2,297)
(3,481)
51.5%
(12,380) (12,877) (14,242) (11,209) (13,175)
17.5% (45,154) (51,502)
14.1%
6,822
8,139
6,327
9,758
16,723
71.4%
42,496
40,948
-3.6%
(3,281)
301
402
(1,349)
(513)
-62.0%
(3,038)
(1,158)
-61.9%
3,541
8,440
6,730
8,409
16,211
92.8%
39,458
39,789
0.8%
1,947
7,096
5,632
6,891
14,621
112.2%
34,262
34,240
-0.1%
Quarterly Results
YTD Results
40,948
-3.6%
(1,158)
-61.9%
39,789
0.8%
34,240
-0.1%

  1. Dec 15 and 12M15 numbers are preliminary.

  2. CTBC Insurance Brokers merged into CTBC Bank in Nov. 2015.

  3. Net profit after Income Tax is excluding Minority Interest Income.

43

CTBC Bank’s Loan Breakdown (Consolidated)

NT$ million
Corporate NTD loans		 2012
2013
2014
Yearly Results		 Dec 14
Mar 15
Jun 15
Sep 15
Dec 151
QoQ (%)
YoY (%)
Quarterly Results
Manufacturing
Commerce & services
Government & Non-prof. Org.
Construction & real estate
Finance & insurance
Others
Sub-total
Foreign currency loans
Retail loans
Mortgages
Unsecured loans
Other loans2
Sub-total
Non-accrual account
Total loans		 124,721
127,894
141,609
35,496
35,014
52,541
123,974
133,443
125,975
35,701
41,867
43,371
29,168
31,076
33,912
76,889
78,077
80,701
425,949
447,371
478,110
284,906
370,245
871,758
324,255
360,320
363,754
89,345
95,717
102,023
8,773
11,152
16,069
422,373
467,189
481,846
4,088
4,678
15,618
1,137,316 1,289,482 1,847,332		 141,609
144,282
145,484
147,838
137,547
-7.0%
-2.9%
52,541
58,366
60,578
49,279
48,107
-2.4%
-8.4%
125,975
120,592
135,612
162,695
156,831
-3.6%
24.5%
43,371
45,195
51,620
51,588
54,873
6.4%
26.5%
33,912
34,139
36,907
36,667
36,607
-0.2%
7.9%
80,701
84,643
92,721
92,~~4~~51
92,938
0.5%
15.2%
478,110
487,218
522,920
540,518
526,904
-2.5%
10.2%
871,758
865,618
871,503
935,223
918,547
-1.8%
5.4%
363,754
371,577
393,213
416,181
449,872
8.1%
23.7%
102,023
101,559
103,095
104,323
105,776
1.4%
3.7%
16,069
18,495
19,358
21,616
22,492
4.1%
40.0%
481,846
491,630
515,666
542,121
578,140
6.6%
20.0%
15,618
14,205
13,412
14,459
14,910
3.1%
-4.5%
1,847,332 1,858,670 1,923,501 2,032,321 2,038,501
0.3%
10.3%

  1. Dec 15 number is preliminary.

  2. Other loans include car loans under repurchase agreement, car loans and small business loans.

44

CTBC Bank’s Deposit Breakdown (Consolidated)

NT$ million
Deposits		 2012
2013
2014
Yearly Results		 Dec 14
Mar 15
Jun 15
Sep 15
Dec 151
QoQ(%) YoY (%)
Quarterly Results
Checking & demand deposits
Saving deposits
Sub-total
Time & savings
Time deposits (incl. CD)
Time saving deposits
Sub-total
Remittances
Foreign currency deposits
Total deposits		 136,995
154,617
156,255
443,010
483,059
529,451
580,006
637,676
685,706
244,866
235,292
206,263
290,170
313,555
357,349
535,037
548,847
563,612
553
745
1,363
409,520
543,901
1,171,946
1,525,116
1,731,169
2,422,627		 156,255
158,351
162,881
186,033
197,951
6.4%
26.7%
529,451
555,362
568,640
586,829
590,650
0.7%
11.6%
685,706
713,713
731,521
772,862
788,601
2.0%
15.0%
206,263
258,027
234,864
270,296
217,214
-19.6%
5.3%
357,349
376,273
385,087
400,844
411,298
2.6%
15.1%
563,612
634,300
619,950
671,139
628,512
-6.4%
11.5%
1,363
836
911
1,645
749
-54.4%
-45.0%
1,171,946
1,155,503
1,176,150
1,263,025
1,316,521
4.2%
12.3%
2,422,627
2,504,352
2,528,532
2,708,672
2,734,384
0.9%
12.9%
  1. Dec 15 number is preliminary.

45

CTCB’s Spread (Consolidated)

CTCB’s Spread (Consolidated)
%
NTD
Lending rate
Deposit rate
NTD spread2
Foreign currency
Lending rate
Deposit rate
Foreign currencyspread2
NTD & foreign currency
Lending rate
Deposit rate
Overall spread2		 4Q14
1Q15
2Q15
3Q15
4Q151
12M14
12M151
2.29%
2.34%
2.29%
2.25%
2.20%
2.31%
2.27%
0.65%
0.66%
0.66%
0.65%
~~0~~.61%
0.64%
0.64%
1.64%
1.68%
1.63%
1.60%
1.59%
1.66%
1.62%
2.73%
2.78%
2.80%
2.83%
2.83%
2.96%
2.81%
0.77%
0.71%
0.66%
0.57%
0.56%
0.87%
0.62%
1.96%
2.08%
2.14%
2.25%
2.28%
2.10%
2.19%
2.50%
2.55%
2.52%
2.51%
2.49%
2.58%
2.52%
0.71%
0.68%
0.66%
0.61%
0.58%
0.74%
0.63%
1.79%
1.87%
1.86%
1.90%
1.91%
1.84%
1.88%
Quarterly Results
YTD Results
NIM 1.42%
1.40%
1.39%
1.42%
1.42%
1.50%
1.41%

  1. 4Q15 and 12M15 numbers are preliminary.

  2. Credit card receivables are excluded in the calculation of NTD, foreign currency, and overall loan spread, and is included in the calculation of NIM.

46

CTBC Bank’s Asset Quality (Consolidated)

(NT$mm) 2012
2013
2014
Yearly Results		 4Q14
1Q15
2Q15
3Q15
4Q151
QoQ(%)
12M14
12M151
YoY (%)
Quarterly Result~~s~~
YTD Results
90-days NPLs - beginning
New NPL influx, net of recovery
& others
Write-offs & other deductions
90-days NPLs - ending
Provisions for credit loss
Provision for loan loss, net
Provision for credit card loss, net
Others,net
Totalprovisions
Total reserves		 3,021
4,715
4,964
5,344
3,255
16,567
(3,650)
(3,006)
(3,871)
4,715
4,964
17,659
909
5,867
3,268
(787)
(673)
(519)
373
985
289
496
6,179
3,038
11,955
17,101
27,136		 18,507 17,659 15,918 14,854 15,924
7.2%
4,964
17,659
255.7%
270
(1,117)
454
733
560
-23.6%
16,567
630
-96.2%
(1,118)
(624) (1,517)
337
(473)
240.4%
(3,871)
(2,278)
-41.2%
17,659 15,918 14,854 15,924 16,011
0.5%
17,659
16,011
-9.3%
3,321
(141)
(406)
1,056
527
-50.1%
3,268
1,037
-68.3%
(86)
(155)
(77)
(85)
(41)
51.3%
(519)
(358)
31.1%
45
(6)
80
378
27
-92.9%
289
479
65.9%
3,280
(301)
(402)
1,349
513
-62.0%
3,038
1,158
-61.9%
27,136 26,447 25,336 26,817 27,027
0.8%
27,136
27,027
-0.4%
90-day NPL ratio 2012
2013
2014
Yearly Results		 Dec 14 Mar 15 Jun 15 Sep 15 Dec 151
QoQ
(bp;pp)
12M14
12M151
YoY
(bp;pp)
Quarterly Results
YTD Results
Corporate NPL ratio2
Retail NPL ratio
Overseas Subsidiaries NPL ratio
Total NPL ratio		 0.42%
0.46%
0.29%
0.26%
0.17%
0.13%
1.46%
1.01%
2.84%
0.41%
0.38%
0.96%		 0.29%
0.34%
0.23%
0.33%
0.41%
8bp
0.29%
0.41%
12bp
0.13%
0.12%
0.12%
0.12%
0.12%
0bp
0.13%
0.12%
-1bp
2.84%
2.43%
2.42%
2.22%
2.10%
-12bp
2.84%
2.10%
-74bp
0.96~~%~~
0.86%
0.77%
0.78%
0.78%
0bp
0.96%
0.78%
-18bp

  1. Dec 15 and 12M15 number is preliminary.

  2. Corporate NPL ratio excludes overseas subsidiaries NPL

47

Tokyo Star Bank’s Balance Sheet (based on J-GAAP)

JPY million YearlyResults Dec 14
Mar 15
Jun 15
Sep 15
Dec 15
QoQ(%) YoY(%)
355,697
224,760
423,991
368,598
475,402
29.0%
33.7%
891,696
867,606
674,194
673,787
565,887
-16.0%
-36.5%
1,561,680
1,577,403
1,569,094
1,598,553
1,604,576
0.4%
2.7%
6,100
6,035
6,011
6,017
5,917
-1.7%
-3.0%
114,360
102,922
111,487
109,123
116,358
6.6%
1.7%
2,929,533
2,778,726
2,784,776
2,756,078
2,768,141
0.4%
-5.5%
2,298,341
2,228,578
2,136,463
2,041,847
2,130,383
4.3%
-7.3%
517,143
432,376
529,592
591,971
512,347
-13.5%
-0.9%
2,815,484
2,660,953
2,666,055
2,633,818

2,642,729
0.3%
-6.1%
-
-
-
-
-
NA
NA
114,049
117,773
118,720
122,261
125,412
2.6%
10.0%
2,929,533
2,778,726
2,784,776
2,756,078
2,768,141
0.4%
-5.5%
QuarterlyResults
2012
2013
2014
Assets
Cash and due from banks
Securities, net
Loans, net
Land, premises and equipments, net
Others		 195,204
172,520
224,760
592,817
742,786
867,606
1,483,826
1,531,309
1,577,403
6,022
6,367
6,035
115,567
89,757
102,922
Total assets 2,393,436
2,542,739
2,778,726
Liabilities
Deposits
Other liabilities		 2,105,560
2,148,006
2,228,578
184,297
292,036
432,376
Total liabilities 2,289,857
2,440,042
2,660,953
Minorityinterests 150
-
-
Total stockholders' equity 103,429
102,696
117,773
Total liabilities and stockholders' equity 2,393,436
2,542,739
2,778,726

48

Tokyo Star Bank’s P&L (based on J-GAAP)

JPY million 2012
2013
2014
3Q14
4Q14
1Q15
2Q15
3Q15
QoQ(%)
YTD 3Q14
YTD 3Q15
YoY(%)
Apr12-Mar13 Apr13-Mar14 Apr14-Mar15
Oct-Dec14
Jan-Mar15
Apr-Jun15
Jul-Sep15
Oct-Dec15
31,676
32,132
32,686
8,247
7,992
8,208
8,556
8,865
3.6%
24,694
25,628
3.8%
7,236
7,480
7,959
1,610
2,049
1,192
1,869
1,996
6.8%
5,910
5,057
-14.4%
9,719
9,084
11,520
2,961
670
3,810
1,742
2,205
26.5%
10,850
7,757
-28.5%
48,631
48,696
52,165
12,818
10,711
13,210
12,167
13,066
7.4%
41,454
38,442
-7.3%
(29,677)
(30,920)
(33,678)
(8,248)
(8,780)
(9,037)
(9,111)
(8,686)
-4.7%
(24,898)
(26,834)
7.8%
18,954
17,776
18,487
4,570
1,931
4,172
3,057
4,380
43.3%
16,556
11,609
-29.9%
(8,471)
(2,907)
6,448
(799)
4,400
260
2,113
792
-62.5%
2,048
3,164
54.5%
10,483
14,869
24,935
3,771
6,331
4,432
5,169
5,171
0.0%
18,604
14,772
-20.6%
4,504
10,174
16,494
2,348
4,322
2,882
3,827
3,571
-6.7%
12,172
10,280
-15.5%
0.19%
0.41%
0.62%
4.48%
9.87%
14.96%
5,721
14,535
23,563
10.08%
10.22%
9.72%
YearlyResults
QuarterlyResults
YTD Results
Operating Income
Net interest income
Fee income
Others
OperatingRevenue
Total non-interest expenses
Pre-provision profit
Credit lossprovisions,net
Net profit before income tax
Netprofit after income tax
Others
ROAA (after-tax)
ROAE (after-tax)
EPS (after-tax) (JPY)
CAR ratio(%)

49

Tokyo Star Bank’s Loan & Deposit Breakdown (based on J-GAAP)

JPY million
Loan Breakdown		 2012
2013
2014
Dec 14
Mar 15
Jun 15
Sep 15
Dec 15
QoQ(%)
YoY(%)
750,743
773,962
817,346
798,817
817,346
810,201
847,631
851,933
0.5%
6.6%
778,615
792,922
784,853
792,293
784,853
783,434
772,916
772,962
0.0%
-2.4%
721,658
737,880
733,520
738,564
733,520
731,803
729,621
730,388
0.1%
-1.1%
56,957
55,042
51,333
53,729
51,333
51,631
43,295
42,575
-1.7%
-20.8%
1,529,358
1,566,884
1,602,199
1,591,110
1,602,199
1,593,636
1,620,547
1,624,895
0.3%
2.1%
2012
2013
2014
Dec 14
Mar 15
Jun 15
Sep 15
Dec 15
QoQ(%)
YoY(%)
1,829,498
1,823,903
1,950,622
1,931,072
1,950,622
1,888,500
1,810,651
1,870,571
3.3%
-3.1%
276,062
324,103
277,956
367,269
277,956
247,963
231,196
259,811
12.4%
-29.3%
2,105,560
2,148,006
2,228,578
2,298,341
2,228,578
2,136,463
2,041,847
2,130,383
4.3%
-7.3%
2012
2013
2014
Dec 14
Mar 15
Jun 15
Sep 15
Dec 15
QoQ(ppt)
YoY(ppt)
72.63%
72.95%
71.89%
69.23%
71.89%
74.59%
79.37%
76.27%
-3.09ppt
7.04ppt
2012
2013
2014
Dec 14
Mar 15
Jun 15
Sep 15
Dec 15
QoQ(ppt)
YoY(ppt)
4.94%
3.85%
2.73%
3.19%
2.73%
2.77%
2.51%
2.31%
-0.2ppt
-0.88ppt
75.76%
81.43%
83.20%
N/A
83.20%
N/A
86.36%
84.90%
-1.46ppt
-
YearlyResults
QuarterlyResults
Corporate Loan
Retail Loan
Secured Loan
Unsecured Loan
Total Loan
Deposit Breakdown
Retail
Corporate
Total Deposit
Loan-to-Deposit Ratio
Loan-to-Deposit Ratio
Asset Quality
NPLs/Total Loans
Reserve/NPLs

50

Tokyo Star Bank’s Balance Sheet & P/L (based on IFRS)

Balance Sheet
NT$million		 Dec 14
Mar 15
Jun 15
Sep 15		 Dec 15 Income Statement
NT$million
4Q14
1Q15
2Q15
3Q15
4Q15
Operating Income
Net interest income
2,209
2,359
2,361
2,590
2,671
Fee income
432
563
331
522
556
Net Trading Income (loss)
447
4
686
209
45
Derivatives & FX
370
160
129
44
299
Other income(loss)
(3)
(37)
113
(77)
(88)
OperatingRevenue
3,455
3,049
3,621
3,288
3,482
Operating expenses
(~~2~~,176)
(2,031)
(2,356)
(2,290)
(2,250)
Business tax
(94)
(87)
(95)
(179)
(130)
Total non-interest expenses
(2,270)
(2,118)
(2,451)
(2,469)
(2,380)
Pre-provision profit
1,185
931
1,170
819
1,102
Credit lossprovisions,net
(215)
383
20
527
243
Net profit before income tax
970
1,315
1,191
1,346
1,344
Netprofit after income tax
625
759
914
944
939
Others
NIM
1.16%
1.31%
1.39%
1.48%
1.52%
Provision/Avg.Loans&Revolv.Bal.
0.20%
-0.37%
-0.02%
-0.49%
-0.22%
Assets
Cash and due from banks
Securities, net
Loans, net
A/R, net
Land, premises and equipments, net
Others		 104,765
65,547
113,054
106,963
222,087
228,087
172,843
186,656
416,367
413,811
399,764
443,875
-
-
-
-
1,618
1,593
2,306
2,414
29,624
12,805
16,333
17,723		 138,345
155,584
443,165

-
2,370
17,672
Total assets 774,462
721,843
704,299
757,631		 757,493
Liabilities
Deposits
Other liabilities		 506,442
478,623
481,363
524,253
238,553
213,237
193,411
200,372		 542,633
181,100
Total liabilities 744,995
691,860
674,774
724,625		 723,733
Total stockholders' equity 29,467
29,984
29,525
33,006		 33,761
Total liab. and s'holder's equity 774,462
721,843
704,299
757,631		 757,493

51

Tokyo Star Bank’s Loan & Deposit Breakdown (based on IFRS)

NT$ million
Loan Breakdown		 Dec 14
Mar 15
Jun 15
Sep 15
Dec 15
213,633
215,272
206,957
236,572
236,383
210,037
204,970
198,992
213,325
212,333
195,793
191,595
185,878
201,376
200,637
14,244
13,375
13,114
11,949
11,695
423,670
420,243
405,950
449,897
448,716
Dec 14
Mar 15
Jun 15
Sep 15
Dec 15
13,434
11,633
11,287
11,308
10,527
7,303
6,431
6,186
6,022
5,551
3.17%
2.77%
2.78%
2.51%
2.35%
54.36%
55.28%
54.81%
53.25%
52.73%
1.72%
1.53%
1.52%
1.34%
1.24%		 NT$ million
Deposit Breakdown
Dec 14
Mar 15
Jun 15
Sep 15
Dec 15
Corporate Loan
Retail Loan
Secured Loan
Unsecured Loan		 Corporate
Retail		 89,225
82,787
114,463
146,610
149,804
417,216
395,836
366,901
377,643
392,828
Total Deposit(excl SD
1)		 506,442
478,623
481,363
524,253
542,633
Total Loan Saving & Demand
Time deposit		 217,319
232,103
218,743
244,367
240,559
289,123
246,520
262,620
279,885
302,074
Asset Quality Total Deposit 506,442
478,623
481,363
524,253
542,633
NPL
Loan Reserve
NPLs/Total Loans
Reserve/NPLs
Reserve/Total Loans
Loan-to-Deposit Ratio 83.66%
87.80%
84.33%
85.82%
82.69%
  1. SD: structured deposit

52

CTBC Life’s P&L

Quarterly Results YTD Results
NT$mm, % 4Q14 1Q15 2Q15 3Q15 4Q15 QoQ % 12M14 12M15 YoY %
Retained earned premium 31,287 32,716 25,935 29,603 34,311 15.9% 114,067 122,565 7.4%
Retained claims and policyholders' benefits (2,489) (2,573) (4,010) (4,513) (5,786) -28.2% (8,743) (16,881) -93.1%
Changes in liabilities reserves (28,701) (29,691) (22,217) (25,727) (29,603) -15.1% (103,756) (107,238) -3.4%
Commission expense (3,144) (3,087) (2,589) (2,359) (2,595) -10.0% (10,847) (10,631) 2.0%
Total investment 2,914 4,321 4,662 3,443 3,276 -4.9% 11,897 15,702 32.0%
Interest income 2,433 2,656 2,893 3,171 3,323 4.8% 8,044 12,043 49.7%
Net trading income/(loss) (2,165) 2,856 2,577 (5,851) 356 106.1% 784 (62) -107.9%
FX 2,939 (1,162) (741) 6,446 (522) -108.1% 3,487 4,020 15.3%
FX Reserve (294) (33) (71) (327) 114 134.9% (423) (317) 25.2%
Rental from Real Estate 1 4 3 4 5 20.8% 5 16 236.2%
Others 245 213 236 254 198 -22.3% 1,183 901 -23.9%
Marketing, administrative and general expens (723) (569) (501) (481) (744) -54.5% (2,211) (2,296) -3.8%
Net profit before Tax (611) 1,331 1,515 218 (944) -532.1% 1,590 2,121 33.4%
Net profit after Tax (377) 1,167 1,339 250 (796) -418.6% 1,577 1,959 24.2%

53

CTBC Life’s Business Performance

NT$mm, %
Traditional1
Interest Crediting Annuity
Investment Linked
Health, PA and Others
Total premium
Traditional1
Interest Crediting Annuity
Investment Linked
Health, PA and Others
Total first year premium
First year premium equivalent
NT$mm, %
Deposit and cash equivalents
Domestic fixed income
Overseas fixed income
Equities
Mortgage
Policy loan
Real Estate
Mutual Fund
Total investment assets3		 4Q14
1Q15
2Q15
3Q15
4Q15
QoQ (%)
12M14
12M15
YoY (%)
30,429
31,780
25,067
28,520
33,216
16.5%
108,622
118,583
9.2%
0
17
10
14
132
8~~4~~5.8%
2,568
173
-93.3%
4,920
2,650
4,574
3,997
1,989
-50.2%
14,392
13,211
-8.2%
992
1,011
964
1,187
1,086
-8.5%
3,784
4,248
12.3%
36,341
35,458
30,615
33,718
36,424
8.0%
129,366
136,215
5.3%
17,331
16,898
13,856
14,576
20,257
39.0%
72,624
65,587
-9.7%
0
17
10
14
132
845.7%
2,568
173
-93.3%
4,095
2,101
4,037
3,362
1,523
-54.7%
11,701
11,023
-5.8%
115
137
144
163
134
-18.1%
352
578
64.1%
21,541
19,152
18,048
18,116
22,045
21.7%
87,246
77,361
-11.3%
6,274
5,795
4,887
4,180
4,706
12.6%
24,060
19,568
-18.7%
12M14
3M15
6M15
9M15
12M15
12M14
12M15
8.9%
6.5%
4.5%
6.8%
4.3%
8.9%
4.3%
28.5%
26.9%
26.2%
23.7%
22.3%
28.5%
22.3%
43.5%
46.7%
50.6%
51.0%
49.6%
43.5%
49.6%
5.8%
6.6%
6.1%
6.8%
10.5%
5.8%
10.5%
3.4%
3.6%
3.5%
3.8%
3.6%
3.4%
3.6%
1.7%
1.6%
1.6%
1.6%
1.5%
1.7%
1.5%
1.9%
1.8%
1.7%
3.7%
3.8%
1.9%
3.8%
6.2%
6.2%
5.9%
2.6%
4.4%
6.2%
4.4%
347,347
376,456
394,117
426,144
456,956
347,347
456,956
Quarterly Results
YTD Results
  1. Including Interest Credit Life Insurance.

54

  1. Calculation based on Total First Year Premium 3. Total investment assets based on IFRS

Taiwan Life’s Business Performance

1Q15
2Q15
3Q15
4Q15
11,698
11,726
9,532
11,674
-
-
-
0
756
646
425
353
1,827
1,971
2,115
2,550
14,281
14,343
12,072
14,577
5,251
4,597
2,083
1,775
-
-
-
-
502
407
180
126
361
354
378
361
6,114
5,358
2,641
2,263
Quarterly Results
YTD Results
NT$mm, % 12M15
Traditional1
Interest Crediting Annuity
Investment Linked
Health, PA and Others		 44,630
0
2,180
8,463
Total premium 55,273
Traditional1
Interest Crediting Annuity
Investment Linked
Health, PA and Others		 13,706
-
1,215
1,454
Total first year premium 16,376
First year premium equivalent 2,047
1,803
1,557
1,527
3M15
6M15
9M15
12M15
7.0%
5.5%
5.1%
10.2%
23.9%
22.8%
20.8%
18.0%
48.3%
50.2%
54.1%
51.9%
7.5%
8.7%
7.5%
8.0%
6.9%
6.6%
6.4%
6.0%
3.3%
3.3%
3.2%
3.1%
2.5%
2.5%
2.4%
2.3%
0.6%
0.5%
0.5%
0.5%
466,016
471,339
481,459
499,852		 6,934
NT$mm, % 12M15
Deposit and cash equivalents
Domestic fixed income
Overseas fixed income
Equities
Mortgage
Policy loan
Real Estate
Mutual Fund		 10.2%
18.0%
51.9%
8.0%
6.0%
3.1%
2.3%
0.5%
Total investment assets3 499,852
  1. Including Interest Credit Life Insurance.

55

  1. Calculation based on Total First Year Premium 3. Total investment assets based on IFRS

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