FEIB — Interim / Quarterly Report 2021

Nov 12, 2021

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Investor Conference

3Q’2021

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11/12’2021

Far Eastern Group

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• Established in 1937

• Span over 10 major industries

• 9 public listed companies in Taiwan and HK

• Total Asset of NT$2,848 Bn (YE2020)

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Petrochemical & energy

• 11 companies in operation across Taiwan and China

• – Oriental Petrochemical has manufacturing lines in Taiwan and mainland China with over 2.75 million tons annual PTA capacity

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Polyester & synthetic fiber

• 38 companies in operation across Taiwan, China, Vietnam and USA

• – and Group’s polyester capacity over 2.72 million tons, one of the world's 3 largest manufacturers

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Cement & building material

• 30subsidiaries integrating Taiwan and China markets

• Main operation unit Asia Cement to achieved 41 m tons of annual capacity, ranking up to Top 10 in China

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Retail & department store

• Together owns 46 stores across both sides of Strait

• Total sales surpassed NT$ 115 billion

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Financial services

• 14 companies in operation across multiple financial service fields, in Taiwan and China

• FEIB is the flagship operating entity

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Sea/Land transportation

• 14 subsidiaries in operation

• Flagship U-Ming Marine Transport has 48 vessels and a shipping capacity of 6.71 million DWT

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Communications and Internet

• The only one pure mobile operator in Taiwan

• FET obtained 3.5Ghz and 28Ghz 5G license

• Invested in FETC, more than 7 million vehicles have installed OBUs and over 1.8 billion tolls collected.

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Construction

• 4 subsidiaries in operation

• Projects in development such as "Far Eastern Telecom Park" and Yilan Resort

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Hotel services

• Shangri-La's Far Eastern Plaza Hotel Taipei

• Far Eastern Plaza Hotel Tainan

• Awarded "The 500 Best Hotels in the World"

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Philanthropic organizations

• Established Yuan Ze University

• Oriental Institute of Technology

• Founded Far Eastern memorial Hospital

• Far Eastern Polyclinic

• Yu Chang Technical & Commercial Vocational Senior High School

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Contents

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Financial Highlights

Key Strategies

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Assets & Net worth

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 Assets

 Net Worth

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(NT$Bn) (NT$Bn)
YoY YoY YoY YoY
+3.8% +5.4% +3.1% +1.9%
680 704
655 668 49
36 34 47 49 48 0
36 40 34 53 0 1 1
36 45
13
13
13
13
190
198 221 189
34 35 35 36
427 +7%
385 383 400
2019 2020 3Q'20 3Q'21 2019 2020 3Q'20 3Q'21
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• Loan  Investment  Cash & Deposit  AR & Others

• Capital + Capital Surplus  Retain Earnings  OCI

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Source: Consolidated statement

Loans & Deposit

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80 97 38 45 59 55 138 144 92 93 3Q'2020 3Q'2021 77 70 27 37 59 50 128 129 99 102 2019 2020 390 389 Gross Loan +6.6% YoY (NT$Bn) 406 433 -7% +21% -0.3% YoY  Local Corp  Consumer Finance  Overseas  Mortgage (Home purchase)  Local SME +4% 3Q’20 3Q’21	80 97 38 45 59 55 138 144 92 93 3Q'2020 3Q'2021 +6.6% YoY 406 433 -7% +21% +4% 3Q’20 3Q’21	122 136 321 329 32 71 64 46 2019 2020 537 582 Deposit (NT$Bn) +8.3% YoY	128 154 312 314 74 75 45 51 3Q'2020 3Q'2021  FCY T.D.  FCY D.D. +6.5% YoY 558 594 +21% +13% 3Q’20 3Q’21
		 LCY D.D.  LCY T.D.

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Source: Consolidated statement / Management report

Asset Quality

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 NPL Ratio

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0.51%
0.40%
0.29%
0.28%
0.24%
0.22% 0.22%
0.20%
YE'19 Aug'20 * YE'20 Aug'21
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Write-off:
 PAJUN Aviation Leasing
 Pharmally International
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 NPL Coverage Ratio

 Loan Coverage Ratio

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678%
649% 621% 1.46%
1.43%
565%
1.42%
513% 467% 1.40% 1.38% 1.35%
1.37%
360%
286% 1.34%
YE'19 Aug'20 * YE'20 Aug'21 * YE'19 Aug'20 * YE'20 Aug'21
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*Note: FSC’s Sept. report is not available Source: FSC report Industry: 37 Commercial Banks (excluding EX-IM Bk)

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 Industry  FEIB
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Liquidity

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 Demand Deposit ratio

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38.68%
36.58%
 Gross loan-to-deposit ratio 36.16%
29.51%
72.99%
72.62% 72.87%
71.95%
72.38%
69.92%
70.02% 2019 3Q'20 2020 3Q'21
 Liquidity coverage ratio
66.81% 142.42%
124.91%
124.71% 125.50%
2019 3Q'20 2020 3Q'21
 FEIB  Industry
2019 3Q'20 2020 3Q'21
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Source: Consolidated statement / FEIB website / Management report /FSC Industry: 37 Commercial Banks (excluding EX-IM Bk)

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Profitability

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 Revenue

 Operating Expense as % of Revenue

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(NT$Bn)
YoY
61.2%
-4.3% 59.9%
YoY 59.3% 58.9%
11.7
11.2
-1.7%
0.3
0.4
2.5 1.3
8.5 8.4
0.2
0.3
1.2 0.9
3.5 2019 Y-T-Sep‘203Q'20 2020 Y-T-Sep‘213Q'21
3.5
2.3
2.7  IBT
(NT$Bn)
YoY YoY
6.0
5.5 5.0 +11% 4.3
4.5 -28.4%
-5.2%
2.9
2.6 2.5
2019 2020 Y-T-Sep‘203Q'20 Y-T-Sep‘213Q'21
 NII  Fee  Trading  Other 2019 2020 Y-T-Sep‘203Q'20 Y-T-Sep‘213Q'21
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Source: Consolidated statement

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Interest Margin

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 NIM  Gross Loan Rate & Avg. Loan Balance
2.39%
2.20%
2.04%
1.12% 1.79%
(NT$Bn)
1.03%
1.01%
0.99%
389 400 399 410
2019 3Q'20 2020 3Q'21 2019 3Q'20 2020 3Q'21
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 
Loan-to-Deposit Spread Deposit Rate & Avg. Deposit Balance
0.98%
1.49%
0.71%
0.65%
1.41% 0.42%
1.39%
1.37%
(NT$Bn)
519 537 547 584
2019 3Q'20 2020 3Q'21 2019 3Q'20 2020 3Q'21
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*annualized

Source: Consolidated statement / FEIB website

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Net Profitability

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 EPS

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 EPS 
ROA (after tax)
0.57%
0.47%
0.43%
0.38%
1.05
0.73
0.66
0.63
2019 3Q'20 2020 3Q'21

ROE (after tax)
7.89%
6.49%
2019 Y-T-Sep‘203Q'20 2020 Y-T-Sep‘213Q'21 6.03%
5.25%
2019 3Q'20 2020 3Q'21
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*annualized Source: Consolidated statement / FEIB website

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BIS

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 Net Worth & Risk Asset +8.1%
(NT$Bn)

CET1 (unconsolidated)
441
432
416
408
48 49 49
47
11.03%
2019 3Q'20 2020 3Q'21
 Net Worth  Risk Asset
10.53%
10.47%
10.34%  BIS (unconsolidated)
14.10%
13.60% 13.54%
13.07%
2019 3Q'20 2020 3Q'21
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14.10%
13.60% 13.54%
13.07%
10.99% 10.78% 11.49% 10.89%
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3Q'20

3Q'21

2019

2020

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 Tier1  Tier 2

Source: Consolidated statement / Management report

Rating Update

 FEIB’s ratings (10/26’21):

Viability Rating bbb Foreign LT IDR BBB Foreign ST IDR F3 National LT Rating A+(twn) National ST Rating F1(twn) Support Rating 4 Outlook Stable

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 Taiwan Sovereign Rating

 Upgraded from

•  AA

• Foreign LT IDR: AA-

 FEIB’s credit strength

 Moderate risk appetite

 Adequate loss-absorption buffer

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Source: Fitch rating report

Contents

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Financial Highlights

Key Strategies

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Digital Acceleration

Process Automation

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BaaS / BaaP

Off - counter rate Acquisition rate 95% 54%4%%

54%4%%

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Digital Branding

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Bankee Customers #: 110,000 + 6 Bn.+ Deposit : NT$

APP %

30%

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Retail Banking

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Integration: One Team for One

Trust 2.0

High Margin Business

• Revolving mortgage

• Elderly Trust

• Employee Trust

• PI, high spending, HNW customers

Investment & Lending

• Fee income vs NII: 0.4:1 0.6:1

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Corporate Banking

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Picking up offshore lending

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Singapore rep. office -10/15’21

Cross-border syndication lead

 Fee Income (NT$MM)

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116
65
1H'21 2H'21 (F)
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Corporate lending geo profile

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(%) (%)
10 9
14 16
9’20 9’21
76 75
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Types: M&A, Share purchase

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 Taiwan  Offshore  China

ESG Strategies

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Social

Environmental

• ESG credit system

• ISO 50001 Energy

  • FEIB 2022 Calendar: Taiwan Art Museums

  • 2021 Taiwan i sports Corp. (MOE award)

  • Hybrid work model

• Management Systems

• YoY -5.37 % - electricity

consumption (3Q’21)

Governance

• Sustainability Committee

• BSI 2021 Sustainable and Resilient Outstanding Award

• Ethical corporate management committee

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Contents

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Appendix

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Key Financials

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(NT$ m, except percentages and per share data)

	As of or for 12 months ended	As of or for 12 months ended
(Consolidated)	December 31
	2019	2020	3Q'2020	3Q'2021	YoY
Key balance sheet items
Gross loans	390,200	388,857	406,129	433,101	6.6%
Total assets	654,888	680,291	668,201	704,149	5.4%
Deposits and remittances	537,396	582,153	557,348	593,837	6.5%
Total shareholders’ equity	47,284	48,744	48,423	49,352	1.9%
BVPS	14.09	14.14	14.04	14.04	0.0%
Key income statement items
Net interest income	5,458	6,037	4,477	4,952	10.6%
Net fee income	3,471	3,514	2,720	2,291	-15.8%
Earnings before Provision	4,769	4,353	3,512	3,370	-4.0%
Net income	3,633	2,519	2,331	2,215	-5.0%
EPS(Q3 unannualized)	1.05	0.73	0.66	0.63	-4.5%
Key ratios
NIM (unconsolidated)	0.99%	1.03%	1.12%	1.01%	-11 bp
Cost to income ratio	59.32%	61.19%	58.85%	59.85%	+1 Pctp
ROE (annualized)	7.89%	5.25%	6.49%	6.03%	-46 bp
ROA (annualized)	0.57%	0.38%	0.51%	0.43%	-8 bp
LDR(不含匯款)	72.62%	66.81%	72.87%	72.99%	+12 bp
NPL ratio	0.28%	0.51%	0.48%	0.25%	-23 bp
Coverage ratio	513%	286%	300%	538%	+238 PctP
CET 1 ratio (unconsolidated)	10.53%	11.03%	10.34%	10.47%	+13 bp
Tier 1 ratio (unconsolidated)	10.99%	11.49%	10.78%	10.89%	+11 bp
Total CAR (unconsolidated)	13.60%	14.10%	13.07%	13.54%	+47 bp

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THANK YOU

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Disclaimer

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This presentation has been prepared by Far Eastern International Bank (the “Company”). This presentation and the materials provided herewith do not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Any decision to purchase securities in a proposed offering should be made solely on the basis of the information contained in the offering circular published in relation to such proposed offering, if any.

The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. All of the information contained in this presentation is based on, or derived from publicly available information, including, among other things, the Company’s consolidated financial statements published, and the presentation does not contain any material non-public information. None of the Company nor any of its affiliates advisors or representatives will be liable (in negligence or otherwise) affiliates, for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

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