FEIB — Interim / Quarterly Report 2021

Aug 18, 2021

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Investor Conference

2Q’2021

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8/18’2021

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

 Assets

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(NT$Bn)
YoY YoY
+3.8% +7.0%
680 700
655 654
36
36
36 35 36
40
36 29
211
198 221 196
385 383 393 416 +9%
2019 2020 2Q'20 2Q'21
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• Loan  Investment  Cash & Deposit  AR & Others

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 Net Worth

(NT$Bn)

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YoY YoY
+3.1% +2.3%
49
49 48 0
47
1
0 1
13
13 12
13
34 35 35 36
2019 2020 2Q'20 2Q'21
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• Capital + Capital Surplus  Retain Earnings & Others

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 OCI

Source: :Consolidated number

Loans & Deposit

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77 70 27 37 59 50 128 129 99 102 2019 2020 390 389 Gross Loan +5.7% YoY (NT$Bn) 399 422 -7% +17% -0.3% YoY  Local Corp  Consumer Finance  Overseas  Mortgage (Home purchase)  Local SME 74 89 37 41 59 55 127 134 101 103 2Q'2020 2Q'2021 +5%	+5.7% YoY 399 422 -7% +17% 74 89 37 41 59 55 127 134 101 103 2Q'2020 2Q'2021 +5%	122 136 321 329 32 71 64 46 2019 2020 537 582 Deposit (NT$Bn) +8.3% YoY	130 150 294 321 60 66 52 47 2Q'2020 2Q'2021  FCY T.D.  FCY D.D. +9.0% YoY 536 584 +15% +11%
		 LCY D.D.  LCY T.D.

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Source: :Consolidated number / Management report

Asset Quality

 NPL Ratio

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0.51%
0.41%
0.38%
0.28%
0.25%
0.22% 0.22% 0.21%
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YE’19 2Q’20 YE’20 2Q’21
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 Loan Coverage Ratio

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1.46%
1.42%
1.39%
1.38%
1.40%
1.37%
1.37%
1.34%
YE’19 Dec'19 May'202Q’20 YE’20 Dec'20 May'212Q’21
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Source: Consolidated number / FSC report Industry: 36 Commercial Banks (excluding EX-IM Bk)

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 Industry
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 NPL Coverage Ratio

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649% 621% 645%
547%
513%
341% 366%
286%
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Dec'19YE’19 2Q’20 YE’20 2Q’21May'20 Dec'20 May'21

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 Gross provision Cost YoY
(NT$Bn)
+14.6%
1.88
0.80
0.4 0.70
0.21
0.92 0.19
0.4 1.5
0.59
0.51
0.5
2019 2020 2Q'201H’20 2Q'1H’ 21
 Net Provision cost  Recovery 6
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 FEIB
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Liquidity

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 Demand Deposit ratio

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 Gross loan-to-deposit ratio 36.58% 36.99%
35.43%
74.91% 74.78% 29.51%
72.96%
72.23%
74.48%
72.62%
2019 2Q'20 2020 2Q'21
69.77%
 Liquidity coverage ratio
66.81%
142.42%
128.51%
124.91% 123.59%
2019 2Q'20 2020 2Q'21
 By balance  By average balance
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2019 2Q'20 2020 2Q'21
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Source: :Consolidated number / FEIB website / Management report

Profitability

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 Revenue

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YoY
(NT$Bn)
-1.0%
11.7 11.2
5.6 5.6
0.3
0.4 0.2 0.2
2.5 1.3 0.7 0.6
3.5 1.8 1.6
3.5
5.5 6.0 3.0 3.2 +9%
2019 2020 2Q'1H’ 20 1H’2Q' 21
 NII  Fee  Trading  Other
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 Trading Breakdown

YoY

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(NT$MM)
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-19.1%

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399
(24%)
303
172 6%
162
125 38 (70%)
52 184%
(62)
2Q'201H’20 1H’21 2Q'21
 Stock  Bond  Credit Derivative  Other Derivative
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 PPOP  IBT
YoY YoY
(NT$Bn) (NT$Bn)
-4.2%
-9.6%
4.3
4.8
4.4
2.3 2.2 2.9
1.8 1.6
2019 2020 2Q'201H’20 2Q'1H’ 21 2019 2020 1H’20 2Q'20 2Q'211H’21
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Source: :Consolidated number

Profitability

 NIM

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1.04%
1.03%
1.02%
0.99%
2019 1H’202Q'20 2020 1H’212Q'21
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 Loan Yield* & Avg. Loan Balance

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1.20%
1.16% 1.14%
1.08%
(NT$Bn)
389 399 399 422
2019 2Q'1H’ 20 2020 2Q'211H’21
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• =(Avg. loan revenue – Avg. deposit cost) / Avg. loan balance

 ROA (after tax)

 ROE (after tax)

7.89%

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0.57%
0.50%
0.42%
0.38%
2019 2Q'1H’ 20 2020 1H’212Q'21
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6.80%
5.94%
5.25%
2019 2Q'1H’ 20 2020 1H’212Q'21
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*annualized Source: :Consolidated number / FEIB website

BIS

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 CET1 (unconsolidated)

 BIS (unconsolidated)

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11.03%
14.10% 14.00%
13.65%
13.60%
10.52%
10.53% 10.51%
10.99% 10.98% 11.49% 10.94%
2019 2Q'20 2020 2Q'21 2019 2Q'20 2020 2Q'21
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 Tier1  Tier 2
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Source: : Management report

Contents

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Financial Highlights

Key Strategies

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Advance Digital Transformation

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
Acquisition rate:
(2Q’21)
72
41
(%) 6 9
1’191'108 12 ’' 1 908 12'10912’20 6 ’2'1 1 0
 Off - counter rate: 95%
(%) (2Q’21)
98 97
84
75
Fintech 60
Trasnsfer Withdrawl Fund Exhange Deposit
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 Big Data

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 Smart RM
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Taiwan’s best digital bank  Social Banking

 Process Automation

• Robotic Process Automation

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Solidify Asset Growth

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Asset:

YE’21 Budget: NT$705 bn.

2Q’21: NT$700 bn.

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Deposit: YE’21 Budget: NT$576 bn.

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2Q’21 : NT$584 bn.

Loan:

. YE’21 Budget: NT$434 bn

2Q’21: NT$ 422 bn. Pipelines:  Big Corp. Loan

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Enhance Earnings Capability

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Retail Banking Corp. Banking
Industry:
Personal
Biotech IT Services
Loan
Financial Institution
Infrastructures
(Water, Gas, Power)
Conglomerate
(Car)
Types:
 M&A
Trusts Business 
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Industry:
Biotech IT Services
Financial Institution
Infrastructures
(Water, Gas, Power)
Conglomerate
(Car)
Types:
 M&A

Project finance
 CAPEX
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Investment
Personal
Loan
High Margin
Mortgage
Trusts Business
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ESG strategies

Environmental

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• Install solar panels in office building

 Purchase GREEN energy

Social

• 2021 Best Companies to Work

For in Asia - HR Asia

• Donate to World Vision Taiwan in every NT$1 spending of FE Family[+] card

Corporate Governance

• 2020 CSR report - 6’21

• Increase green finance

• TCFD advisory

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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

(Consolidated)	December	31
	2019	2020	2Q'2020	2Q'2021	YoY
Key balance sheet items
Gross loans	390,200	388,857	398,840	421,659	5.7%
Total assets	654,888	680,291	653,811	699,581	7.0%
Deposits and remittances	537,396	582,153	535,513	583,844	9.0%
Total shareholders’ equity	47,284	48,744	47,704	48,782	2.3%
BVPS(不含待發行股本)	14.09	14.14	14.22	14.15	-0.5%
BVPS(含待發行股本)	14.09	14.14	13.83	13.88	0.4%
Key income statement items
Net interest income	5,458	6,037	2,963	3,228	8.9%
Net fee income	3,471	3,514	1,800	1,585	-11.9%
Earnings before Provision	4,769	4,353	2,330	2,232	-4.2%
Net income	3,633	2,519	1,615	1,449	-10.3%
EPS	1.05	0.73	0.47	0.42	-10.6%
Key ratios
NIM (unconsolidated)	0.99%	1.03%	1.04%	1.02%	-2 bp
Cost to income ratio	59.32%	61.19%	58.70%	60.01%	+1.31 PCtp
ROE	7.89%	5.25%	6.80%	5.94%	-0.86 Pctp
ROA	0.57%	0.38%	0.50%	0.42%	-8 bp
LDR(不含匯款)	72.62%	66.81%	74.48%	72.23%	-2.25 PCtp
NPL ratio	0.28%	0.51%	0.41%	0.38%	-3 bp
Coverage ratio	513%	286%	341%	366%	+25 PCtp
CET 1 ratio (unconsolidated)	10.53%	11.03%	10.52%	10.51%	-1 bp
Tier 1 ratio (unconsolidated)	10.99%	11.49%	10.98%	10.94%	-4 bp
Total CAR (unconsolidated)	13.60%	14.10%	13.65%	14.00%	+35 bp	17

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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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