FEIB — Investor Presentation 2015

May 25, 2015

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Business Presentation

May 2015

Private and confidential

FEIB overview

Key statistics[1 ]

31 March 2015

NT$31.2 bn Market capitalization (US$ 1Bn)

31 December 2014 $ / Ranking[2 ] Total assets NT$521.9 bn / 22th Gross loans NT$323.9 bn / 19[th ] Total deposits & remittances NT$423.2 bn / 22[nd] Net worth NT$36.3 bn / 22[nd] Tier 1 ratio 9.26%

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Long-term growth record

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Total assets (NT$ bn)
522
CAGR 7.3% 492
466 Industry
438
418 CAGR 5.1%
377
361 360
346
306
GDP
258
CAGR 3.3%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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Dividend payout ratio

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(NT$)
1.30 1.31
1.15 31%
20% 19%
0.40
0.23 0.25
2012 2013 2014
EPS (NT$) Cash dividend (NT$) Payout ratio (%)
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Source: Company data

1. Based on consolidated financials

2. Based on 36 commercial banks

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Strong earning track record

Net interest income

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NT$ mm
10.2%
17.8%
5,380
4,884
4,145
1,415
1,250
2012 2013 2014 2014Q1 2015Q1
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Pre-provision op. income

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NT$ mm
23.2%
33.4% 4,366
3,545
2,657
1,228
1,125
2012 2013 2014 2014Q1 2015Q1
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Pre-tax ROAA

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0.85%
0.74%
0.64%
0.23% 0.24%
2012 2013 2014 2014Q1 2015Q1
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Pre-tax ROAE

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12.87% 13.18%
11.45%
3.68% 3.40%
2012 2013 2014 2014Q1 2015Q1
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Source: Company data

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Key financial summary

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(NT$ mm)

As of or for 12 months ended December 31

As of or for 3 months ended March 31

Key balance sheet items	2012 2013 2014 2014Q1 2015Q1
Gross loans	283,801 296,781 323,935 314,155 338,566
Total assets	465,583 492,192 521,940 492,618 536,400
Deposits and remittances	391,909 398,289 423,198 384,409 429,257
Total shareholders’ equity	26,433 28,953 36,263 34,014 37,185
BVPS	11.79 12.26 12.67 12.47 12.99
Key income statement items
Net interest income	4,145 4,884 5,380 1,250 1,415
Net fee income	2,572 2,971 2,914 719 686
Earnings before Provision`	2,657 3,545 4,366 1,228 1,125
Net income	2,551 3,061 3,695 1,006 1,077
EPS	1.15 1.30 1.31 0.37 0.38
Key ratios
NIM	1.13% 1.20% 1.25% 1.24% 1.22%
Cost to income ratio	68.8% 62.8% 59.9% 55.3% 58.4%
ROE	10.02% 11.05% 11.33% 3.2% 2.94%
ROA	0.56% 0.64% 0.73% 0.20% 0.20%
LDR *	72.4% 74.5% 76.5% 81.7% 78.9%
NPL ratio	0.46% 0.37% 0.39% 0.34% 0.37%
Coverage ratio	272% 392% 372% 408% 379%
Tier 1 ratio	8.73% 8.34% 9.26% 9.14% 9.16%
Total CAR	12.71% 12.69% 13.16% 12.97% 12.54%

• LDR = Loans / Deposits

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Key strategies

Sustain leading positions in niche products

• High-margin consumer lending

• Cross-border corporate finance

• FX margin trading

• Local asset swap

Enhance infrastructure to improve client experience

• E & M Banking under Bank 3.0 initiatives

• Integrated consumer lending and WM investment by One-Bank strategy

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Penetrate new markets and customers

• Offshore market entrance with risk-adjusted target market focus

• Competitive treasury marketing to focused customer groups

• Diversified business partners for new consumer lending alliance

Grow business with FEG synergy

• Omni-channel payment solutions, including FETone, eTag, HappyGo

• Big-data technique for joint marketing inter-FEG

• High-net-worth individual relationship management by FEIB and subsidiaries

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