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FEIB — AGM Information 2026
Jun 1, 2026
52204_rns_2026-06-01_43d7f990-2862-4b89-889b-12c9e8fb3e0a.pdf
AGM Information
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遠東國際商業銀行
Far Eastern Int'l Bank
Far Eastern International Bank (FEIB)
2026 Annual General Shareholders’ Meeting Minutes
Date: Friday, May 22, 2026
Time: 9:00 a.m. Taipei time
Place: GIS MOTC Convention Center, 5F, No. 24, Section 1, Hangzhou South Road, Taipei, Taiwan
Convening method: The meeting is held hybrid and simultaneously at a physical location and through video conference.
The video conferencing platform is provided by Taiwan Depository & Clearing Corporation. (https://stockservices.tdcc.com.tw)
Shareholders present:
Total outstanding shares of FEIB: 4,865,284,731 shares
Total shares represented by shareholders present: 3,108,460,114 shares (including 2,854,582,862 shares of electronic votes and via video conference, 239,319,787 shares in person, 14,557,465 shares by proxy)
Percentage of shares held by shareholders present: 63.89%
Person in attendance:
Ms. Yu-Ching Yeh (Attorney-at-Law)
Mr. Chia-Huang Hu (CPA)
Directors at present:
Mr. Thomas Chou, Representative of Yue Ding Industry Co., Ltd.
Mr. Shaw Y. Wang, Representative of Far Eastern New Century Corp.
Mr. Humphrey Cheng, Representative of Far Eastern New Century Corp.
Mr. Jeff Hsu, Representative of U-Ming Marine Transport Corp.
Ms. Hsiao-Hui Wang, Independent Director (Chairperson of the Audit Committee)
Mr. Chia-Juch Chang, Independent Director
Ms. Chiu-Ling Lu, Independent Director
Total attended directors exceeded 50% of 11 seats in the Board.
Chairman: Thomas Chou
Recorder: Chia Lin Chu
A. Reporting Items (Non-Voting Items)
- 2025 Business Report
The 2025 business report is detailed in the meeting handbook from page 15 to 19.
- 2025 Financial Statements
The 2025 financial statements and the independent auditors' report by Deloitte & Touche are detailed in Attachment I. (The 2025 financial statements are available for access at http://mops.twse.com.tw)
遠東國際商業銀行
Far Eastern Int'l Bank
2
- The Audit Committee's Review Report for 2025 Business Report and Financial Statements
The Audit Committee's review report is detailed in Attachment II.
- Summary of 2025 Employees' Compensation and Directors' Remuneration
The 2025 summary of employees' compensation and directors' remuneration is on page 4 of the meeting handbook.
- Summary of Financial Debentures Issued in 2025
The 2025 summary of financial debentures issued is on page 5 of the meeting handbook.
- Reminder of Article 25 of the Banking Act
Reminder of Article 25 of The Banking Act is detailed on page 6-7 of the meeting handbook.
- Summary of the Bank's acquisition of real estate right-of-use assets from the related party, Yuan Ding Co., Ltd. in 2025
The Summary of the Bank's acquisition of real estate right-of-use assets from the related party, Yuan Ding Co., Ltd. in 2025 is detailed on page 42 of the meeting handbook.
No questions from shareholders.
遠東國際商業銀行
Far Eastern Int'l Bank
^{}[]
B. Approval Items (Voting Items)
1. 2025 Business Report and Financial Statements
The Board of Directors recommends shareholders vote FOR 2025 business report and financial statements.
Explanatory Notes:
i. The Audit Committee has reviewed the business report and the audited financial statements (certified by Chia-Huang Hu, CPA, and Chen-Hsiu Yang, CPA, of Deloitte & Touche) of the Bank for the year ended Dec. 31, 2025 and found the reports acceptable.
ii. The 2025 business report, the independent auditors' report & 2025 financial statements, and Audit Committee's review report are detailed in Attachment I, II, and III.
iii. Please vote FOR.
Resolutions: The total number of eligible votes represented by the shareholders present at the time of voting (including e-voting and via video conference) was 3,108,460,114 (1 share for 1 vote), where 3,011,817,832 votes were FOR the proposal, or 96.89% of the total votes; 6,041,615 votes were AGAINST the proposal, or 0.19% of the total votes; 0 vote was INVALID, or 0.00% of the total votes; and 90,600,667 votes were ABSTAINED, or 2.92% of the total votes; The proposal hereby is approved.
No questions from shareholders on this proposal.
2. 2025 Earnings Distribution
The Board of Directors recommends shareholders vote FOR 2025 earnings distribution.
Explanatory Notes:
i. The Bank's 2025 earnings distribution is as follows: (Unit: NT$)
| Net income | 4,171,414,765 |
|---|---|
| Adjustment to retained earnings for revaluation of defined benefit plans | 9,266,592 |
| Adjustment to retained earnings, for disposal income/loss of equity instruments at fair value through other comprehensive income | 110,035,302 |
| Provision for legal reserve | (1,287,214,998) |
| Reversal of special reserve | 78,331,916 |
| Unappropriated earnings - beginning | 163,949,958 |
| Distributable earnings | 3,245,783,535 |
Earnings distribution:
遠東國際商業銀行
Far Eastern Int'l Bank
Shareholder dividends
Unappropriated earnings - ending
3,082,157,872
163,625,663
ii. Shareholder dividends are allocated as follows: (Unit: NT$)
| Per share | Total amount | |
|---|---|---|
| Cash dividends | 0.5140 | 2,500,756,352 |
| Stock dividends | 0.1195 | 581,401,520 |
| Total | 0.6335 | 3,082,157,872 |
iii. Dividend per share as referred above is calculated based on the number of shares outstanding on December 31, 2025. The Board of Directors is authorized to adjust cash and stock dividends payout ratio within the total dividends amount, if the actual number of shares outstanding on the ex-dividend (ex-right) date differs from the estimated number of shares. Dividends will be distributed on the ex-dividend (ex-right) date which is to be determined by Board of Directors after 2026 annual shareholders' meeting. The cash dividends to each and every shareholder shall be paid in a whole amount of New Taiwan Dollars and any fraction of one New Taiwan Dollar shall be discarded. The total unpaid odd amount will be included in "other revenues" of the Bank.
iv. Please vote FOR.
Resolutions : The total number of eligible votes represented by the shareholders present at the time of voting (including e-voting and via video conference) was 3,108,460,114 (1 share for 1 vote), where 3,013,295,588 votes were FOR the proposal, or 96.94% of the total votes; 7,146,321 votes were AGAINST the proposal, or 0.23% of the total votes; 0 vote was INVALID, or 0.00% of the total votes; and 88,018,205 votes were ABSTAINED, or 2.83% of the total votes; The proposal hereby is approved.
No questions from shareholders on this proposal.
C. Proposed Resolutions (Voting Items)
- Proposal of Issuing New Shares - to Capitalize Shareholder Dividends
The Board of Directors recommends shareholders vote FOR capitalization of 2025 stock dividends.
i. Capitalization purpose and funding sources: In order to support business needs, enhance operational capital and improve capital structure, capitalization of NT$581,401,520 shareholder dividends from 2025 earnings distribution is proposed by
issuing 58,140,152 new shares at par of NT$10 per share.
ii. Allotment method: The 58,140,152 new shares are distributed in accordance with the shareholding record in the shareholder registrar on the dividend ex-right date, for 11.95 shares per 1,000 shares. The rights and obligations of new shares are the same as those of existing shares. Fractional shares may be pooled by two shareholders or more into one full share of a named shareholder. For the fractional share which cannot be pooled, the distribution will be made in the form of cash in dollar amount calculated at par value, for shareholders whose share allotment is made through central depository system, the cash amount of the fractional share will be offset by the remittance fee. Such fractional shares will be purchased by the Bank's employee shareholding trust at par value.
iii. The distributable number of dividend shares as referred to above is estimated based on the number of shares outstanding on Dec. 31, 2025. The Board of Directors is authorized to adjust stock dividend payout ratio within the total dividend amount if the actual number of shares outstanding on the ex-right date differs from the estimated number of shares.
iv. The ex-right date of stock dividends (same as the effective date of issuing new shares) will be determined by the Board of Directors after 2026 annual shareholders' meeting.
v. Please vote FOR.
Resolutions: The total number of eligible votes represented by the shareholders present at the time of voting (including e-voting and via video conference) was 3,108,460,114 (1 share for 1 vote), where 3,013,508,920 votes were FOR the proposal, or 96.95% of the total votes; 7,391,181 votes were AGAINST the proposal, or 0.24% of the total votes; 0 vote was INVALID, or 0.00% of the total votes; and 87,560,013 votes were ABSTAINED, or 2.81% of the total votes; The proposal hereby is approved.
- Proposal of Private Placement - to Issue Common Shares, Preferred Shares, Convertible Bonds or a Combination of Above Securities to Specific Parties.
The Board of Directors recommends shareholders vote FOR issuing of common shares, preferred shares, convertible bonds or a combination of above securities to specific parties.
i. The Bank's Board of Directors was authorized in annual shareholders' meeting on May 22, 2025 to proceed private placement for a total amount of not exceeding NT$10 billion or
equivalent in foreign currencies. This proposal herein is to request extension of last shareholders' meeting resolution for another year.
ii. The purpose of private placement is to seek alliance opportunities with domestic or foreign strategic investors, to enhance the Bank's competitiveness and financial structure, and to facilitate the Bank's long-term development, the aggregate number of shares represented by the privately placed shares, preferred shares, or shares issuable upon conversion of privately placed convertible bonds, in any combination, shall not exceed an authorized limit of one billion common shares; and the aggregate offering amount shall not exceed NT$10 billion or equivalent in other currencies. The preferred shares, if any, are to be issued according to Article 4-1 of the Bank's Articles of Incorporation.
iii. According to Article 43-6 of the Securities and Exchange Act, the disclosure of private placement shall include:
(i) The basis and justification of the pricing:
- The issuing price of common shares shall be no less than 80% of the reference price, which is the higher of the following two prices:
(1) The simple averaged closing price of 1, 3 or 5 business days prior to the pricing date, minus dividends, and added back price discounted for capital reduction.
(2) The simple averaged closing price of 30 business days prior to the pricing date, minus dividends, and added back price discounted for capital reduction.
-
The issuing price of preferred shares and convertible bonds shall be no less than 80% of the theoretical price, which is the price determined by an applicable pricing model considering all the terms in the issuing.
-
The pricing date and actual issuing price, as reference above, will be determined subject to market conditions and terms, and discussion with specific parties. If the issuing price is below the par value of common shares and results in cumulative losses to the Bank, the Bank may, subject to operation status then, decapitalize capital base, reverse retained earnings or capital surplus to make up the losses.
-
The pricing of private placement, pursuant to government regulation, based on the reference price or theoretical price as above, and by taking into account of 3-year lock-up period promulgated by the Securities and Exchange Act, is deemed reasonable.
(ii) The selection, purpose, necessity and benefits of allying with the specific parties:
-
Selection of the specific parties and purpose: The strategic investors are selected based on qualification criteria specified in Article 43-6 of the Securities and Exchange Act, for those who are able to assist the Bank expanding sales channels, growing customer base, improving service quality, and reducing operation costs.
-
Necessity: In responding to global trend of increased financial supervision for increased risk-taking capital, the Bank needs to increase Basel III capital adequacy from investment of the specific parties, for support of the Bank's long-term development.
-
Benefits: The Bank's competitiveness and profitability will be enhanced via management
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participation of the strategic investors.
(iii) The justification of private placement:
-
The justification of no public offering: In considering the transaction timing, cost, and needs from allying with the strategic investors, public offering is less feasible. Plus, the long-term business cooperation relationship with the partners would be secured by the 3-year lock-up period of investment per private placement regulation.
-
The amount of private placement: The aggregate number of shares represented by the privately placed shares, preferred shares, or shares issuable upon conversion of privately placed convertible bonds, in any combination, shall not exceed an authorized limit of one billion common shares; and the aggregate offering amount shall not exceed NT$10 billion or equivalent in other currencies. The amount of private placement could be raised by one or two tranches, within the period of 1 year from the shareholders' meeting resolution date, subject to market conditions and transaction progress with the specific parties.
-
Capital usage plan and anticipated benefits: The capital amount raised by each tranche of private placement will be used for expanding the Bank's business scale and digital innovation. The anticipated benefits will include strengthening the Bank's competitiveness, profitability, capital adequacy, and shareholders' equity. If convertible bonds are issued in foreign currency, the bond proceed will remain at the issuing currency until FX conversion is approved.
iv. Per authorization of shareholders' meeting, the major terms of private placement, including total number, pricing and terms of new shares, selection of specific parties, the effective date of new capital, fund usage plan, expected benefit and other related matters, will be determined by the Board of Directors after approval of Audit Committee. The Board of Directors is also authorized to make any necessary adjustment on the issuing terms, due to changes of laws, competent authorities' instruction, or changes of market conditions, after approval of Audit Committee.
v. Please vote FOR.
3. Waiver of Non-Competition Binding to Directors
The Board of Directors recommends shareholders vote FOR waiver of non-competition binding to Directors.
i. According to Paragraph I of Article 209 of the "Company Act", a director who does anything for himself or on behalf of another person that is within the scope of the company's business, shall explain to the meeting of shareholders the essential contents of such an act and secure its approval.
ii. In considering the newly elected directors may act as directors or managers of companies of business similar to the Bank, the waiver of non-competition binding to those directors is suggested to appoint those directors for their professionalism contribution to the Bank pursuant to Article 209 of the "Company Act".
| Position in the Bank | Name | Related company | Position in the company | Major business of the company |
|---|---|---|---|---|
| Chairman | Representative of Yue Ding Industry Co., Ltd.: Mr. Thomas Chou | Da Chung Bills Finance Corp. | Director | Bills Finance |
| Far Eastern Asset Management Corp. | Director | AMC | ||
| Cosmos Foreign Exchange International Co., Ltd. | Director | FX Broker |
iii. Please vote FOR.
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D. Summary of Shareholders' inquiries and the Company's responses:
- Shareholder's Inquiry: Account No. 0391220
The shareholder expressed that the reception services, venue arrangements (such as the speaker's podium and refreshments) at this AGM, and the absence of shareholder souvenirs, among other matters, could be improved, suggesting an enhancement in the quality of shareholder services. Nevertheless, the shareholder recognized and commended the Bank's recent operational and financial performance, noting the year-on-year earnings growth for the first four months of this year. Additionally, the shareholder expressed concern regarding the continuous net selling by foreign institutional investors and inquired about the Bank's strategies in response to capital market trends and share price performance.
Chairman's Response:
The Bank always attaches great importance to shareholders' opinions. We will continue to enhance internal management and strengthen the Bank's profitability. We appreciate the valuable feedback provided by the shareholder.
- Shareholder's Inquiry: Account No. 0389976 (Inquiry submitted via the virtual meeting platform)
The shareholder inquired whether the Bank has any plans for a merger or acquisition (M&A) with other financial institutions.
Chairman's Response:
Given the Bank's relatively smaller scale, expansion through both internal growth and external channels is necessary. However, mergers and acquisitions must be evaluated with prudence, and the Bank will continue to seek favorable opportunities to formulate such plans.
E. Extemporary Motions (Voting Items): None
F. Meeting adjourned: at 9:42 a.m. Taipei time
Attachment I.
Independent Auditors' Report & 2024 Financial Statements
(English Translation of a Report Originally Issued in Chinese)
Deloitte.
勤業眾信
勤業眾信聯合會計師事務所
110016 台北市信義區松仁路100號20樓
Deloitte & Touche
20F, Taipei Nan Shan Plaza
No. 100, Songren Rd.,
Xinyi Dist., Taipei 110016, Taiwan
Tel: +886 (2) 2725-9988
Fax: +886 (2) 4051-6888
www.deloitte.com.tw
INDEPENDENT AUDITORS' REPORT
The Board of Directors and the Shareholders
Far Eastern International Bank Ltd.
Opinion
We have audited the accompanying consolidated financial statements of Far Eastern International Bank Ltd. (the "Bank") and its subsidiaries, which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements including material accounting policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Bank and its subsidiaries as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Public Banks and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China (FSC).
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Bank and its subsidiaries in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matters related to the Bank and its subsidiaries’ consolidated financial statements for the year ended December 31, 2025 for the Bank and its subsidiaries, which are described as follows:
Allowance for Expected Credit Losses on Loans
As of December 31, 2025, the balance of loans in the aggregate amounted to NT$506,589,988 thousand, which accounted for 58% of the total assets of the consolidated financial statements; an amount that is deemed to be significant to the consolidated financial statements. Besides assessing expected credit losses on loans in accordance with IFRS 9 “Financial Instruments”, the Bank complies with the Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non-performing/Non-accrual Loans and related regulations when assessing classification of credit assets and recognizing allowance for possible losses, and the higher amount of allowance for expected credit losses on loans is recognized. As the assessment on the impairment of loans involved the management’s critical judgments in accounting estimation and the underlying assumptions, we deemed the allowance for expected credit losses on loans as a key audit matter. Refer to Note 5 to the consolidated financial statements for the critical accounting judgments and estimation uncertainty.
Refer to Notes 4, 5, 14 and 44 to the consolidated financial statements for disclosures related to impairment on loans.
The main audit procedures we performed in response to certain aspects of the key audit matter described above are as follows:
- Understand and perform tests on the Bank’s internal controls relevant to loans impairment assessment.
- Verify whether the methodology, main assumptions and parameters (consider the probability of default, probability of loss given default and exposure at default on forward-looking information) adopted by the impairment model of expected credit losses adequately reflect the actual position and compliance with IFRS 9, and recalculate the amount of impairment.
- Sample and review credit files to evaluate whether the loans are reasonably categorized per regulatory stipulation and recalculate for the correctness of the allowance.
Other Matter
We have also audited the parent company only financial statements of the Bank as of and for the years ended December 31, 2025 and 2024 on which we have issued an unmodified opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Public Banks and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the FSC, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
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In preparing the consolidated financial statements, management is responsible for assessing the Bank and its subsidiaries' ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank and its subsidiaries or to cease operations, or has no realistic alternative but to do so.
Those charged with governance, including the audit committee, are responsible for overseeing the Bank and its subsidiaries' financial reporting process.
Auditors' Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank and its subsidiaries' internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank and its subsidiaries' ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Bank and its subsidiaries to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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- Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Bank and its subsidiaries to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the Bank and its subsidiaries audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audit resulting in this independent auditors' report are Chia-Huang Hu and Chen-Hsiu Yang.
Deloitte & Touche
Taipei, Taiwan
Republic of China
March 12, 2026
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors' report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' report and consolidated financial statements shall prevail.
FAR EASTERN INTERNATIONAL BANK LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |||
|---|---|---|---|---|
| ASSETS | Amount | % | Amount | % |
| ASSETS | ||||
| Cash and cash equivalents, net | $ 5,378,820 | 1 | $ 20,587,193 | 3 |
| Due from the Central Bank and other banks, net | 50,315,876 | 6 | 43,705,701 | 5 |
| Financial assets at fair value through profit or loss | 55,688,152 | 7 | 53,134,114 | 6 |
| Financial assets at fair value through other comprehensive income | 63,132,388 | 7 | 59,536,214 | 7 |
| Investment in debt instruments at amortized cost, net | 147,693,446 | 17 | 146,215,199 | 17 |
| Securities purchased under resale agreements, net | 2,703,167 | - | 3,434,968 | 1 |
| Receivables, net | 19,108,530 | 2 | 18,553,830 | 2 |
| Discounts and loans, net | 506,589,988 | 58 | 488,805,319 | 57 |
| Investments accounted for using equity method | 2,979,414 | - | 2,783,101 | - |
| Other financial assets, net | 11,222,142 | 1 | 8,636,128 | 1 |
| Property and equipment, net | 5,220,517 | 1 | 5,195,387 | 1 |
| Right-of-use assets, net | 1,435,267 | - | 903,588 | - |
| Intangible assets, net | 1,538,210 | - | 1,546,704 | - |
| Deferred tax assets | 121,612 | - | 71,137 | - |
| Other assets | 583,363 | - | 354,467 | - |
| TOTAL | $873,710,892 | 100 | $853,463,050 | 100 |
| LIABILITIES AND EQUITY | ||||
| LIABILITIES | ||||
| Due to the Central Bank and other banks | $ 966,213 | - | $ 2,851,990 | 1 |
| Funds borrowed from the Central Bank and other banks | 3,048,949 | - | 1,163,333 | - |
| Financial liabilities at fair value through profit or loss | 7,729,839 | 1 | 8,729,116 | 1 |
| Securities sold under repurchase agreements | 1,953,568 | - | 2,643,625 | - |
| Payables | 6,341,467 | 1 | 15,328,617 | 2 |
| Current tax liabilities | 236,153 | - | 138,082 | - |
| Deposits and remittances | 711,752,762 | 82 | 698,869,200 | 82 |
| Bank debentures | 25,301,720 | 3 | 16,901,900 | 2 |
| Principal received on structured products | 42,130,399 | 5 | 42,347,489 | 5 |
| Other financial liabilities | 1,842,970 | - | 1,229,329 | - |
| Provisions | 659,372 | - | 629,812 | - |
| Lease liabilities | 1,457,282 | - | 924,169 | - |
| Other liabilities | 441,532 | - | 456,599 | - |
| Total liabilities | 803,862,226 | 92 | 792,213,261 | 93 |
| EQUITY ATTRIBUTABLE TO OWNERS OF THE BANK | ||||
| Share capital | 48,652,847 | 6 | 42,753,997 | 5 |
| Capital surplus | 830,560 | - | 302,926 | - |
| Retained earnings | ||||
| Legal reserve | 14,816,444 | 2 | 13,510,272 | 2 |
| Special reserve | 84,254 | - | 164,485 | - |
| Unappropriated earnings | 4,454,667 | - | 4,596,441 | - |
| Total retained earnings | 19,355,365 | 2 | 18,271,198 | 2 |
| Other equity | 1,009,894 | - | (78,332) | - |
| Total equity | 69,848,666 | 8 | 61,249,789 | 7 |
| TOTAL | $873,710,892 | 100 | $853,463,050 | 100 |
遠東國際商業銀行
Far Eastern Int'l Bank
^{}[]
FAR EASTERN INTERNATIONAL BANK LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except Per Share Amounts)
| 2025 | 2024 | Percentage Increase (Decrease) | |||
|---|---|---|---|---|---|
| Amount | % | Amount | % | % | |
| INTEREST REVENUES | $20,246,156 | 157 | $19,845,562 | 154 | 2 |
| INTEREST EXPENSES | 13,442,547 | 104 | 13,924,519 | 108 | (3) |
| NET INTERESTS | 6,803,609 | 53 | 5,921,043 | 46 | 15 |
| NET REVENUES AND GAINS OTHER THAN INTEREST | |||||
| Net service fee income | 3,026,350 | 23 | 3,014,959 | 23 | - |
| Gain on financial assets and liabilities at fair value through profit or loss | 2,154,170 | 17 | 2,934,657 | 23 | (27) |
| Realized gain on financial assets at fair value through other comprehensive income | 216,325 | 2 | 209,789 | 2 | 3 |
| Net foreign exchange gain | 210,056 | 2 | 327,053 | 3 | (36) |
| Reversal of impairment loss (impairment loss) on assets | 4,478 | - | (1,997) | - | 324 |
| Share of profit of associates for using equity method | 170,735 | 1 | 152,484 | 1 | 12 |
| Others | 282,932 | 2 | 302,693 | 2 | (7) |
| Total net revenues and gains other than interest | 6,065,046 | 47 | 6,939,638 | 54 | (13) |
| NET REVENUES | 12,868,655 | 100 | 12,860,681 | 100 | - |
| NET PROVISION FOR POSSIBLE LOSS ON BAD DEBTS EXPENSE, COMMITMENT, GUARANTEE AND LETTERS OF CREDIT ISSUED | 253,010 | 2 | 142,536 | 1 | 78 |
| OPERATING EXPENSES | |||||
| Employee benefit expense | 4,761,065 | 37 | 4,685,075 | 36 | 2 |
| Depreciation and amortization | 747,440 | 5 | 751,687 | 6 | (1) |
| Other general and administrative expenses | 2,447,647 | 19 | 2,411,455 | 19 | 2 |
| Total operating expenses | 7,956,152 | 61 | 7,848,217 | 61 | 1 |
| INCOME BEFORE INCOME TAX | 4,659,493 | 37 | 4,869,928 | 38 | (4) |
| INCOME TAX EXPENSE | 488,078 | 4 | 572,738 | 5 | (15) |
| NET INCOME FOR THE YEAR | 4,171,415 | 33 | 4,297,190 | 33 | (3) |
(Continued)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except Per Share Amounts)
| 2025 | 2024 | Percentage Increase (Decrease) | |||
|---|---|---|---|---|---|
| Amount | % | Amount | % | % | |
| OTHER COMPREHENSIVE INCOME (LOSS) | |||||
| Items that will not be reclassified subsequently to profit or loss: | |||||
| Remeasurement of defined benefit plans | $ 20,432 | - | $ 33,915 | - | (40) |
| Gain (loss) on valuation of investments in equity instruments at fair value through other comprehensive income | 539,096 | 4 | (42,557) | - | 1,367 |
| Share of other comprehensive income (loss) of associates for using equity method | (2,911) | - | 5,273 | - | (155) |
| Income tax expense relating to items that will not be reclassified subsequently to profit or loss | (4,086) | - | (6,783) | - | 40 |
| 552,531 | 4 | (10,152) | - | 5,543 | |
| Items that may be reclassified subsequently to profit or loss | |||||
| Exchange differences on translating foreign operations | (50,920) | - | 109,147 | 1 | (147) |
| Share of other comprehensive income (loss) of associates for using equity method | 141,681 | 1 | (35,615) | - | 498 |
| Gain on investments in debt instruments measured at fair value through other comprehensive income | 565,427 | 4 | 80,685 | - | 601 |
| Income tax expense relating to items that may be reclassified subsequently to profit or loss | (1,191) | - | (7,119) | - | 83 |
| 654,997 | 5 | 147,098 | 1 | 345 | |
| Other comprehensive income for the year | 1,207,528 | 9 | 136,946 | 1 | 782 |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | $ 5,378,943 | 42 | $ 4,434,136 | 34 | 21 |
| NET INCOME ATTRIBUTABLE TO: | |||||
| Owners of the Bank | $ 4,171,415 | 33 | $ 4,297,190 | 33 | (3) |
| TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: | |||||
| Owners of the Bank | $ 5,378,943 | 42 | $ 4,434,136 | 34 | 21 |
| EARNINGS PER SHARE | |||||
| Basic | $0.93 | $0.98 | |||
| Diluted | $0.92 | $0.98 |
(Concluded)
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| Equity Attributable to Shareholders of the Parent | ||||||||
|---|---|---|---|---|---|---|---|---|
| Share Capital | Capital Surplus | Retained Earnings | Exchange Differences on Translating Foreign Operations | Other | ||||
| Legal Reserve | Special Reserve | Unappropriated Earnings | Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income | Total Equity | ||||
| BALANCE AT JANUARY 1, 2024 | $40,694,838 | $302,926 | $12,304,518 | $1,711,795 | $4,019,297 | $(167,411) | $8,849 | $58,874,812 |
| Appropriation of the 2023 earnings | ||||||||
| Legal reserve | - | - | 1,205,754 | - | (1,205,754) | - | - | - |
| Special reserve | - | - | - | (1,547,310) | 1,547,310 | - | - | - |
| Cash dividends - NT$0.5060 per share | - | - | - | - | (2,059,159) | - | - | (2,059,159) |
| Share dividends - NT$0.5060 per share | 2,059,159 | - | - | - | (2,059,159) | - | - | - |
| 2,059,159 | - | 1,205,754 | (1,547,310) | (3,776,762) | - | - | (2,059,159) | |
| Net income for the year ended December 31, 2024 | - | - | - | - | 4,297,190 | - | - | 4,297,190 |
| Other comprehensive income for the year ended December 31, 2024 | - | - | - | - | 29,603 | 102,028 | 5,315 | 136,946 |
| Total comprehensive income for the year ended December 31, 2024 | - | - | - | - | 4,326,793 | 102,028 | 5,315 | 4,434,136 |
| Disposal of investments in equity instruments at fair value through other comprehensive income (loss) | - | - | - | - | 27,113 | - | (27,113) | - |
| BALANCE AT DECEMBER 31, 2024 | 42,753,997 | 302,926 | 13,510,272 | 164,485 | 4,596,441 | (65,383) | (12,949) | 61,249,789 |
| Appropriation of the 2024 earnings | ||||||||
| Legal reserve | - | - | 1,306,172 | - | (1,306,172) | - | - | - |
| Special reserve | - | - | - | (80,231) | 80,231 | - | - | - |
| Cash dividends - NT$0.5000 per share | - | - | - | - | (2,137,700) | - | - | (2,137,700) |
| Share dividends - NT$0.2500 per share | 1,068,850 | - | - | - | (1,068,850) | - | - | - |
| 1,068,850 | - | 1,306,172 | (80,231) | (4,432,491) | - | - | (2,137,700) | |
| Net income for the year ended December 31, 2025 | - | - | - | - | 4,171,415 | - | - | 4,171,415 |
| Other comprehensive income (loss) for the year ended December 31, 2025 | - | - | - | - | 9,267 | (52,111) | 1,250,372 | 1,207,528 |
| Total comprehensive income (loss) for the year ended December 31, 2025 | - | - | - | - | 4,180,682 | (52,111) | 1,250,372 | 5,378,943 |
| Issuance of ordinary shares for cash | 4,830,000 | 505,416 | - | - | - | - | - | 5,335,416 |
| Share-based payments | - | 22,218 | - | - | - | - | - | 22,218 |
| Disposal of investments in equity instruments at fair value through other comprehensive income (loss) | - | - | - | - | 110,035 | - | (110,035) | - |
| BALANCE AT DECEMBER 31, 2025 | $48,652,847 | $830,560 | $14,816,444 | $84,254 | $4,454,667 | $(117,494) | $1,127,388 | $69,848,666 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Income before income tax | $ 4,659,493 | $ 4,869,928 |
| Adjustments for: | ||
| Depreciation | 738,946 | 726,204 |
| Amortization | 8,494 | 25,483 |
| Provision for possible loss on bad debts expense, commitment, guarantee and letters of credit issued | 734,535 | 666,655 |
| Net valuation loss (gain) on financial assets and liabilities at fair value through profit or loss | 106,565 | (617,754) |
| Interest expenses | 13,442,547 | 13,924,519 |
| Interest revenues | (21,002,208) | (20,340,707) |
| Dividend revenue | (243,058) | (251,508) |
| Share-based payments | 22,218 | - |
| Shares of profit from associates | (170,735) | (152,484) |
| Impairment loss (reversal of impairment loss) on financial assets | (3,825) | 1,735 |
| Unrealized net foreign exchange loss (gain) on assets and liabilities other than foreign currency cash and cash equivalents | 46,227 | (53,237) |
| Other adjustments | 877 | (499) |
| Changes in operating assets and liabilities | ||
| Increase in due from the Central Bank and other banks | (1,178,245) | (2,540,438) |
| Increase in financial assets at fair value through profit or loss | (3,809,054) | (10,299,406) |
| Decrease (increase) in financial assets at fair value through other comprehensive income | (3,190,255) | 5,787,159 |
| Increase in investments in debt instruments at amortized cost | (2,234,152) | (12,729,253) |
| Decrease in receivables | 12,740 | 802,083 |
| Increase in discounts and loans | (20,799,339) | (17,811,377) |
| Increase in other financial assets - financial transaction margin | (2,611,078) | (1,234,464) |
| Increase (decrease) in due to the Central Bank and other banks | (1,755,917) | 1,239,186 |
| Increase (decrease) in financial liabilities at fair value through profit or loss | (893,390) | 189,064 |
| Increase (decrease) in payables | (9,272,681) | 9,174,570 |
| Increase in deposits and remittances | 17,628,839 | 30,895,373 |
| Increase in principal received on structured products | 48,455 | 7,794,101 |
| Increase (decrease) in other financial liabilities - financial transaction margin | 64,636 | (378,935) |
| Decrease in provisions for employee benefits | (35,404) | (63,304) |
| Decrease in other liabilities | (7,069) | (151,045) |
| Cash generated from (used in) operations | (29,691,838) | 9,471,649 |
| Interest received | 20,870,423 | 20,184,169 |
| Dividends received | 257,253 | 232,158 |
| Interest paid | (13,319,980) | (13,819,744) |
| Income tax paid | (444,936) | (506,596) |
| Net cash generated from (used in) operating activities | (22,329,078) | 15,561,636 |
(Continued)
18
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Acquisition of property and equipment | $ (363,976) | $ (371,663) |
| Proceeds from disposal of property and equipment | 86 | 55 |
| Increase in other financial assets | (121,800) | (391,528) |
| Decrease (increase) in other assets | (229,671) | 41,212 |
| Dividends received from associates | 113,192 | 74,192 |
| Net cash used in investing activities | (602,169) | (647,732) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Increase in funds borrowed from the Central Bank and other banks | 1,885,616 | 1,030,000 |
| Proceeds from the issuance of bank debentures | 8,400,000 | 6,000,000 |
| Repayments of bank debentures | (180) | (6,000,000) |
| Increase (decrease) in securities sold under repurchase agreements | (577,254) | 1,277,327 |
| Repayments of the principal portion of lease liabilities | (399,632) | (408,933) |
| Increase (decrease) in other financial liabilities | 542,399 | (523,666) |
| Cash dividends | (2,137,700) | (2,059,159) |
| Issuance of ordinary shares for cash | 5,335,416 | - |
| Net cash generated from (used in) financing activities | 13,048,665 | (684,431) |
| EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (625,662) | 849,869 |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (10,508,244) | 15,079,342 |
| CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR | 48,449,246 | 33,369,904 |
| CASH AND CASH EQUIVALENTS, END OF THE YEAR | $37,941,002 | $48,449,246 |
Reconciliation of the amounts in the consolidated statements of cash flows with the equivalent items reported in the consolidated balance sheets is as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Cash and cash equivalents in consolidated balance sheets | $ 5,378,820 | $20,587,193 |
| Due from the Central Bank and other banks that meet the IAS 7 definition of "cash and cash equivalents" | 29,859,015 | 24,427,085 |
| Securities purchased under resale agreements that meet the IAS 7 definition of "cash and cash equivalents" | 2,703,167 | 3,434,968 |
| Cash and cash equivalents in consolidated statements of cash flows | $37,941,002 | $48,449,246 |
(Concluded)
19
^{}[]
Deloitte.
勤業眾信
勤業眾信聯合會計師事務所
110016 台北市信義區松仁路100號20樓
Deloitte & Touche
20F, Taipei Nan Shan Plaza
No. 100, Songren Rd.,
Xinyi Dist., Taipei 110016, Taiwan
Tel: +886 (2) 2725-9988
Fax: +886 (2) 4051-6888
www.deloitte.com.tw
INDEPENDENT AUDITORS' REPORT
The Board of Directors and the Shareholders
Far Eastern International Bank Ltd.
Opinion
We have audited the accompanying parent company only financial statements of Far Eastern International Bank Ltd. (the "Bank"), which comprise the parent company only balance sheets as of December 31, 2025 and 2024, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parent company only financial statements, including material accounting policy information.
In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Bank as of December 31, 2025 and 2024, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Public Banks.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Bank in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
20
Key audit matters related to the Bank’s parent company only financial statements for the year ended December 31, 2025 for the Bank, which are described as follows:
Allowance for Expected Credit Losses on Loans
As of December 31, 2025, the balance of loans in the aggregate amounted to NT$506,589,988 thousand, which accounted for 58% of the total assets of the parent company only financial statements; an amount that is deemed to be significant to the parent company only financial statements. Besides assessing expected credit losses on loans in accordance with IFRS 9 “Financial Instruments”, the Bank complies with the Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non-performing/Non-accrual Loans and related regulations when assessing classification of credit assets and recognizing allowance for possible losses, and the higher amount of allowance for expected credit losses on loans is recognized. As the assessment on the impairment of loans involved the management’s critical judgments in accounting estimation and the underlying assumptions, we deemed the allowance for expected credit losses on loans as a key audit matter. Refer to Note 5 to the parent company only financial statements for the critical accounting judgments and estimation uncertainty.
Refer to Notes 4, 5, 14 and 43 to the parent company only financial statements for disclosures related to impairment on loans.
The main audit procedures we performed in response to certain aspects of the key audit matter described above are as follows:
- Understand and perform tests on the Bank’s internal controls relevant to loans impairment assessment.
- Verify whether the methodology, main assumptions and parameters (consider the probability of default, probability of loss given default and exposure at default on forward-looking information) adopted by the impairment model of expected credit losses adequately reflect the actual position and compliance with IFRS 9, and recalculate the amount of impairment.
- Sample and review credit files to evaluate whether the loans are reasonably categorized per regulatory stipulation and recalculate for the correctness of the allowance.
Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements
Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Public Banks and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the parent company only financial statements, management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
Those charged with governance, including the audit committee, are responsible for overseeing the Bank’s financial reporting process.
21
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Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements
Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Bank to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Bank to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision, and performance of the audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
22
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audit resulting in this independent auditors’ report are Chia-Huang Hu and Chen-Hsiu Yang.
Deloitte & Touche
Taipei, Taiwan
Republic of China
March 12, 2026
Notice to Readers
The accompanying financial statements are intended only to present the financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards procedures and practices to audit such financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and financial statements shall prevail.
23
FAR EASTERN INTERNATIONAL BANK LTD.
PARENT COMPANY ONLY BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |||
|---|---|---|---|---|
| ASSETS | Amount | % | Amount | % |
| ASSETS | ||||
| Cash and cash equivalents, net | $ 5,118,377 | 1 | $ 20,282,242 | 2 |
| Due from the Central Bank and other banks, net | 50,315,876 | 6 | 43,705,701 | 5 |
| Financial assets at fair value through profit or loss | 55,688,152 | 6 | 53,134,114 | 6 |
| Financial assets at fair value through other comprehensive income | 63,132,388 | 7 | 59,536,214 | 7 |
| Investment in debt instruments at amortized cost, net | 147,693,446 | 17 | 146,215,199 | 17 |
| Securities purchased under resale agreements, net | 2,703,167 | - | 3,434,968 | 1 |
| Receivables, net | 16,638,170 | 2 | 16,510,313 | 2 |
| Discounts and loans, net | 506,589,988 | 58 | 488,805,319 | 57 |
| Investments accounted for using equity method | 5,061,326 | 1 | 4,922,713 | 1 |
| Other financial assets, net | 10,987,412 | 1 | 8,446,654 | 1 |
| Property and equipment, net | 5,212,424 | 1 | 5,184,848 | 1 |
| Right-of-use assets, net | 1,398,726 | - | 838,136 | - |
| Intangible assets, net | 1,538,210 | - | 1,546,704 | - |
| Deferred tax assets | 68,654 | - | 29,474 | - |
| Other assets | 300,776 | - | 347,795 | - |
| TOTAL | $872,447,092 | 100 | $852,940,394 | 100 |
| LIABILITIES AND EQUITY | ||||
| LIABILITIES | ||||
| Due to the Central Bank and other banks | $ 966,213 | - | $ 2,851,990 | 1 |
| Funds borrowed from the Central Bank and other banks | 3,048,949 | - | 1,163,333 | - |
| Financial liabilities at fair value through profit or loss | 7,729,839 | 1 | 8,729,116 | 1 |
| Securities sold under repurchase agreements | 1,953,568 | - | 2,643,625 | - |
| Payables | 6,286,842 | 1 | 15,258,485 | 2 |
| Current tax liabilities | 232,500 | - | 127,788 | - |
| Deposits and remittances | 712,034,508 | 82 | 699,393,542 | 82 |
| Bank debentures | 25,301,720 | 3 | 16,901,900 | 2 |
| Principal received on structured products | 42,130,399 | 5 | 42,347,489 | 5 |
| Other financial liabilities | 444,062 | - | 381,806 | - |
| Provisions | 659,372 | - | 629,812 | - |
| Lease liabilities | 1,421,420 | - | 859,161 | - |
| Other liabilities | 389,034 | - | 402,558 | - |
| Total liabilities | 802,598,426 | 92 | 791,690,605 | 93 |
| EQUITY | ||||
| Share capital | 48,652,847 | 6 | 42,753,997 | 5 |
| Capital surplus | 830,560 | - | 302,926 | - |
| Retained earnings | ||||
| Legal reserve | 14,816,444 | 2 | 13,510,272 | 2 |
| Special reserve | 84,254 | - | 164,485 | - |
| Unappropriated earnings | 4,454,667 | - | 4,596,441 | - |
| Total retained earnings | 19,355,365 | 2 | 18,271,198 | 2 |
| Other equity | 1,009,894 | - | (78,332) | - |
| Total equity | 69,848,666 | 8 | 61,249,789 | 7 |
| TOTAL | $872,447,092 | 100 | $852,940,394 | 100 |
FAR EASTERN INTERNATIONAL BANK LTD.
PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME
PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME
26
PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| Share Capital | Capital Surplus | Retained Earnings | Other Equity | Total Equity | ||||
|---|---|---|---|---|---|---|---|---|
| Legal Reserve | Special Reserve | Unappropriated Earnings | Exchange Differences on Translating Foreign Operations | Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income | ||||
| BALANCE AT JANUARY 1, 2024 | $40,694,838 | $ 302,926 | $12,304,518 | $ 1,711,795 | $ 4,019,297 | $(167,411) | $ 8,849 | $58,874,812 |
| Appropriation of the 2023 earnings | ||||||||
| Legal reserve | - | - | 1,205,754 | - | (1,205,754) | - | - | - |
| Special reserve | - | - | - | (1,547,310) | 1,547,310 | - | - | - |
| Cash dividends - NT$0.5060 per share | - | - | - | - | (2,059,159) | - | - | (2,059,159) |
| Share dividends - NT$0.5060 per share | 2,059,159 | - | - | - | (2,059,159) | - | - | - |
| 2,059,159 | - | 1,205,754 | (1,547,310) | (3,776,762) | - | - | (2,059,159) | |
| Net income for the year ended December 31, 2024 | - | - | - | - | 4,297,190 | - | - | 4,297,190 |
| Other comprehensive income for the year ended December 31, 2024 | - | - | - | - | 29,603 | 102,028 | 5,315 | 136,946 |
| Total comprehensive income for the year ended December 31, 2024 | - | - | - | - | 4,326,793 | 102,028 | 5,315 | 4,434,136 |
| Disposal of investments in equity instruments at fair value through other comprehensive income (loss) | - | - | - | - | 27,113 | - | (27,113) | - |
| BALANCE AT DECEMBER 31, 2024 | 42,753,997 | 302,926 | 13,510,272 | 164,485 | 4,596,441 | (65,383) | (12,949) | 61,249,789 |
| Appropriation of the 2024 earnings | ||||||||
| Legal reserve | - | - | 1,306,172 | - | (1,306,172) | - | - | - |
| Special reserve | - | - | - | (80,231) | 80,231 | - | - | - |
| Cash dividends - NT$0.5000 per share | - | - | - | - | (2,137,700) | - | - | (2,137,700) |
| Share dividends - NT$0.2500 per share | 1,068,850 | - | - | - | (1,068,850) | - | - | - |
| 1,068,850 | - | 1,306,172 | (80,231) | (4,432,491) | - | - | (2,137,700) | |
| Net income for the year ended December 31, 2025 | - | - | - | - | 4,171,415 | - | - | 4,171,415 |
| Other comprehensive income (loss) for the year ended December 31, 2025 | - | - | - | - | 9,267 | (52,111) | 1,250,372 | 1,207,528 |
| Total comprehensive income (loss) for the year ended December 31, 2025 | - | - | - | - | 4,180,682 | (52,111) | 1,250,372 | 5,378,943 |
| Issuance of ordinary shares for cash | 4,830,000 | 505,416 | - | - | - | - | - | 5,335,416 |
| Share-based payments | - | 22,218 | - | - | - | - | - | 22,218 |
| Disposal of investments in equity instruments at fair value through other comprehensive income (loss) | - | - | - | - | 110,035 | - | (110,035) | - |
| BALANCE AT DECEMBER 31, 2025 | $48,652,847 | $ 830,560 | $14,816,444 | $ 84,254 | $ 4,454,667 | $(117,494) | $ 1,127,388 | $69,848,666 |
27
FAR EASTERN INTERNATIONAL BANK LTD.
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Income before income tax | $ 4,660,799 | $ 4,853,208 |
| Adjustments for: | ||
| Depreciation | 705,744 | 690,885 |
| Amortization | 8,494 | 25,483 |
| Provision for possible loss on bad debts expense, commitment, guarantee and letters of credit issued | 717,440 | 635,009 |
| Net valuation loss (gain) on financial assets and liabilities at fair value through profit or loss | 106,565 | (617,754) |
| Interest expenses | 13,421,132 | 13,907,840 |
| Interest revenues | (20,961,059) | (20,287,997) |
| Dividend revenue | (243,058) | (251,508) |
| Share-based payments | 22,218 | - |
| Shares of profit from subsidiaries and associates | (153,638) | (207,481) |
| Impairment loss (reversal of impairment loss) on financial assets | (3,825) | 1,735 |
| Unrealized net foreign exchange loss (gain) on assets and liabilities other than foreign currency cash and cash equivalents | 40,271 | (88,834) |
| Other adjustments | 853 | (252) |
| Changes in operating assets and liabilities | ||
| Increase in due from the Central Bank and other banks | (1,178,245) | (2,540,438) |
| Increase in financial assets at fair value through profit or loss | (3,809,054) | (10,299,406) |
| Decrease (increase) in financial assets at fair value through other comprehensive income | (3,190,255) | 5,787,159 |
| Increase in investments in debt instruments at amortized cost | (2,234,152) | (12,729,253) |
| Decrease in receivables | 458,884 | 193,656 |
| Increase in discounts and loans | (20,799,339) | (17,811,377) |
| Increase in other financial assets - financial transaction margin | (2,611,078) | (1,234,464) |
| Increase (decrease) in due to the Central Bank and other banks | (1,755,917) | 1,239,186 |
| Increase (decrease) in financial liabilities at fair value through profit or loss | (893,390) | 189,064 |
| Increase (decrease) in payables | (9,256,369) | 9,180,032 |
| Increase in deposits and remittances | 17,386,243 | 31,141,548 |
| Increase in principal received on structured products | 48,455 | 7,794,101 |
| Increase (decrease) in other financial liabilities - financial transaction margin | 64,636 | (378,935) |
| Decrease in provisions for employee benefits | (35,404) | (63,304) |
| Decrease in other liabilities | (3,920) | (145,522) |
| Cash generated from (used in) operations | (29,486,969) | 8,982,381 |
| Interest received | 20,827,069 | 20,134,298 |
| Dividends received | 257,253 | 232,158 |
| Interest paid | (13,305,976) | (13,806,310) |
| Income tax paid | (428,674) | (488,448) |
| Net cash generated from (used in) operating activities | (22,137,297) | 15,054,079 |
FAR EASTERN INTERNATIONAL BANK LTD.
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
| 2025 | 2024 | |
|---|---|---|
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Acquisition of property and equipment | $ (362,044) | $ (369,485) |
| Proceeds from disposal of property and equipment | 86 | 55 |
| Increase in other financial assets | (76,544) | (293,383) |
| Decrease (increase) in other assets | 46,221 | (3,314) |
| Dividends received from subsidiaries and associates | 158,559 | 125,892 |
| Net cash used in investing activities | (233,722) | (540,235) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Increase in funds borrowed from the Central Bank and other banks | 1,885,616 | 1,030,000 |
| Proceeds from the issuance of bank debentures | 8,400,000 | 6,000,000 |
| Repayments of bank debentures | (180) | (6,000,000) |
| Increase (decrease) in securities sold under repurchase agreements | (577,254) | 1,277,327 |
| Repayments of the principal portion of lease liabilities | (370,573) | (380,409) |
| Decrease in other financial liabilities | (2,380) | (25,749) |
| Cash dividends distributed | (2,137,700) | (2,059,159) |
| Issuance of ordinary shares for cash | 5,335,416 | - |
| Net cash generated from (used in) financing activities | 12,532,945 | (157,990) |
| EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (625,662) | 849,869 |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (10,463,736) | 15,205,723 |
| CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR | 48,144,295 | 32,938,572 |
| CASH AND CASH EQUIVALENTS, END OF THE YEAR | $37,680,559 | $48,144,295 |
Reconciliation of the amounts in the statements of cash flows with the equivalent items reported in the balance sheets is as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Cash and cash equivalents in balance sheets | $ 5,118,377 | $20,282,242 |
| Due from the Central Bank and other banks that meet the IAS 7 definition of "cash and cash equivalents" | 29,859,015 | 24,427,085 |
| Securities purchased under resale agreements that meet the IAS 7 definition of "cash and cash equivalents" | 2,703,167 | 3,434,968 |
| Cash and cash equivalents in statements of cash flows | $37,680,559 | $48,144,295 |
30
Attachment II.
Audit Committee’s Review Report for 2025 Business Report and Financial Statements
To: 2026 Annual Shareholders’ Meeting of Far Eastern International Bank
The Board of Directors has submitted business report, audited financial statements (certified by Chia-Huang Hu CPA, and Chen-Hsiu Yang CPA, of Deloitte & Touche) and earnings distribution proposal of the Bank for the year ended Dec.31 2025 for the Committee’s review.
After reviewing, the Committee has found the above mentioned reports acceptable, and hence issued the review report herewith in accordance with Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act.
Hsiuo Hui Wang
Hsiuo-Hui Wang
Audit Committee Convener
Far Eastern International Bank