FEIB — Interim / Quarterly Report 2021

May 27, 2021

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Investor Conference

1Q’2021

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5/27’2021

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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

2021 rating results

 ‘FEIB’s ratings are affirmed (DD: 5/7’21) :

Viability Rating bbb Foreign LT IDR BBB Foreign ST IDR F3 National LT A+(twn) Rating

National ST F1(twn) Rating Support 4 Outlook Stable

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 Rating are supported by:

• Taiwan banking outlook

 ‘a‘ / negative  ‘a’ /stable

 FEIB’s stable operations  Moderate risk appetite  Adequate loss absorption buffer

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Assets & Net worth

 Assets

(NT$Bn)

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YoY
+0.3%
680 678 680
655
36 36 36
36
40 44 36
36
198 221 199 209 +5%
385 383 400 399
2019 2020 1Q'20 1Q'21
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• Loan  Investment  Cash & Deposit  AR & Others

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 Net Worth

(NT$Bn)

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YoY
+4.2%
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50
49 47 1
47
0
0 1
14
13
13
13
34 35 34 35
2019 2020 1Q'20 1Q'21
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• Capital + Capital Surplus  Retain Earnings & Others

Source: :Consolidated audited financial report

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 OCI

Loans & Deposit

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 Gross Loan

(NT$Bn)

 Deposit

(NT$Bn)

77 70 27 37 59 50 128 129 99 102 2019 2020 390 389 -0.2% YoY  Local Corp  Overseas  Local SME 74 73 35 39 62 53 137 139 97 101 Q1'2020 Q1'2021 405 405 +2% 1Q’20 1Q’21 -15% +11%	-0.2% YoY 74 73 35 39 62 53 137 139 97 101 Q1'2020 Q1'2021 405 405 +2% 1Q’20 1Q’21 -15% +11%	122 136 321 329 32 71 64 46 2019 2020 537 582
 Consumer Finance  Mortgage (Home purchase)

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Source: :Consolidated audited financial report / Management report

Liquidity

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 Demand Deposit ratio

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 Gross loan-to-deposit ratio
74.62%
72.62%
73.18% 71.20%
67.54%
67.54%
66.81%
2019 1Q'20 2020 1Q'21
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36.58% 37.37%
29.95%
29.51%
2019 1Q'20 2020 1Q'21
 Liquidity coverage ratio
142.42%
136.89%
124.91%
118.99%
2019 1Q'20 2020 1Q'21
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Source: :Consolidated audited financial report / FEIB website / / Management report

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Asset Quality

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NPL ratio

NPL coverage ratio

Loan coverage ratio

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0.51% 0.52% 649%
567% 596% 1.46%
621% 1.42%
513% 1.38%
1.38%
0.31% 424% 1.40%
1.37%
0.28%
1.35%
286%
265%
1.32%
0.22% 0.24% 0.22% [0.23%]
YE’19 1Q’20 YE’20 1Q’21Dec'19 Mar'20 Dec'20 Mar'21 Dec'19YE’19 1Q’Mar' 20 YE’20 1Q’21Dec'20 Mar'21 Dec'19YE’19 1Q’20 YE’Mar'20 Dec' 20 1Q’21Mar'21
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 Industry  FEIB

Source: Consolidated audited financial reports / FSC report Industry: 35 Commercial Banks (excluding EX-IM Bk)

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Profitability

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 Revenue  Trading Breakdown
YoY YoY
(NT$Bn) (NT$MM)
39%
+23.1% 182
11.7 11.2 2.7 131 120%
2.2
0.3 78 (103%)
0.4 0.1 0.3 222% 72 (2)
2.5 1.3 0.1 28 128%
(99)
3.5 1.0 0.9
3.5
(386)
5.5 6.0 1.5 1.6
-0.2
2019 2020 1Q'20 1Q'21
1Q'20 1Q'21
 NII  Fee  Trading  Other  Stock  Bond  Credit Derivative  Other Derivative
 Gross provision Cost YoY  IBT YoY
(NT$Bn) (NT$Bn)
1.88
-23.4% +129%
3.5
0.34
0.4
0.26 2.5 0.9
0.1
0.92
0.1
0.4 1.5 0.4
0.2
0.5 0.1
2019 2020 1Q'20 1Q'21 2019 2020 1Q'20 1Q'21
 Net Provision cost  Recovery 9
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Source: :Consolidated audited financial report

Profitability

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 Loan-Deposit-Spread

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2.39%
2.28%
2.04%
1.84%
0.98%
0.85%
0.66%
0.46%
2019 1Q'20 2020 1Q'201Q’21
 Deposit  Loan

ROA (after tax)
0.57%
0.48%
0.38%
0.24%
2019 1Q'20 2020 1Q'21
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 Loan Yield* & Avg. Loan Balance

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1.18%
1.15% 1.14%
1.08%
(NT$Bn)
389 398 399 398
2019 1Q'20 2020 1Q'21
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• =Net loan revenue / Avg. loan balance

 ROE (after tax)

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7.89%
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6.52%
5.25%
3.20%
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Source: :Consolidated audited financial report/ FEIB website

1Q'20

1Q'21

2019

2020

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*annualized

BIS

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 CET1 (unconsolidated)

 BIS (unconsolidated)

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11.03% 14.10%
13.60% 13.53%
13.25%
10.65%
10.53%
10.25%
10.99% 10.70% 11.49% 11.08%
2019 1Q'20 2020 1Q'21 2019 1Q'20 2020 1Q'21
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 Tier1  Tier 2
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Source: : Management report

Contents

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Financial Highlights Key Strategies

Retail banking

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Fund investment

• Fee income YoY +7% (1Q’21)

• Weight on multi-layer, high-yield investment post pandemic

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Insurance

• AGP YoY +25% (1Q’21)

• Weight on investment-linked policy post pandemic

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Credit cards

• Spending YoY +7% (1Q’21)

• Improve active card rate

• Focus on high spending

Consumer loans

• Outstanding YoY +2% (1Q’21)

• Focus on revolving and recovering mortgage & PL

• Lead niche B2B consumer loans

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Digital banking

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 Group synergy

 Acquisition rate

• Settlement account

58.4% (3’21) 80 % 50 32

Deposit Credit Card consumer loans

 BaaP / BaaS

• P2B Lending platform

 Rental management platform

 Off - counter rate

93.2% (3’21)

97 96 83 73 57 %

Transfer Withdraw Fund Exchange Deposit

• Mastercard

Send XB channel

 Social Banking - Personal loan

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Corporate banking

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Focus local market

• Increase SME loan +11% (1Q’21)

• Focus on real estate financing

• Increase TM customers

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Enhance asset quality

• Review default cases for lesson-learned early warning signals

• Tighten TM and risk assessment in China and overseas market

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Refocus offshore market

• Focus on syndicated loan

• & structured finance

• Open Singapore rep. office

• in 6’21

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ESG strategies

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Environmental

Social

Corporate Governance

• TCFD disclosure -

6’21

• ESG credit project

• Supplier evaluation

• 2020 corporate governance evaluation result

• Top 6~20% in listed com.

• Top 41~60% in FI

• 2020 CSR report

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Contents Appendix

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Key Financials

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

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(Consolidated) Key balance sheet items Gross loans Total assets Deposits and remittances Total shareholders’ equity BVPS	As of or for 12 months ended December 31
	2019 2020 1Q'2020 1Q'2021 YoY
	390,200 388,857 405,032 404,970 -0.02% 654,888 680,047 678,085 679,981 0.28% 537,396 582,153 542,827 568,807 4.79% 47,284 48,744 47,451 49,447 4.21% 14.09 14.14 14.14 14.34 0.20%
Key income statement items Net interest income Net fee income Earnings before Provision Net income EPS	5,458 6,037 1,474 1,594 8.14% 3,471 3,514 957 864 -9.72% 4,769 4,353 635 1,056 66.30% 3,633 2,519 379 799 110.82% 1.05 0.73 0.11 0.23 109.09%
Key ratios NIM (unconsolidated) Cost to income ratio ROE (annualized) ROA (annualized) LDR(不含匯款) NPL ratio Coverage ratio CET 1 ratio (unconsolidated) Tier 1 ratio (unconsolidated) Total CAR (unconsolidated)	1.01% 1.03% 1.05% 1.03% -2bp 59.32% 61.19% 72.36% 62.71% -9.65 Pctp 7.89% 5.25% 3.20% 6.52% +3.32 Pctp 0.57% 0.38% 0.24% 0.48% +24 bp 72.62% 66.81% 74.62% 71.20% -3.42 Pctp 0.28% 0.51% 0.31% 0.52% +21 bp 513% 286% 424% 265% -159 PctP 10.53% 11.03% 10.25% 10.65% +40 bp 10.99% 11.49% 10.70% 11.08% +38 bp 13.60% 14.10% 13.25% 13.53% +28 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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