TBB — Interim / Quarterly Report 2020

Mar 29, 2021

Financial Review of 2020Q4

• This presentation is provided by Taiwan Business Bank Co., Ltd. ('TBB').The information contained within is not reviewed or reviewed by any accountant or any independent third party. Users should read this material in conjunction with all other public financial and operational information filed to the competent authorities by TBB. While we endeavor to provide accurate, complete and consistent information herein, TBB makes no guarantee or warranties as to the accuracy or correctness of all the material contained. After this presentation is released to the public, we undertake no obligation to update any relevant data to reflect any change hereafter.
• Users should also notice that this presentation may contain forward-looking statements. Statements that are not historical facts, including statements relating to the implementation of strategic initiatives, future business development and economic performance are forward-looking statements. By their nature, forward-looking statements involve uncertainties, risks, assumptions and other factors that could cause actual developments and results to differ materially from our statement in this presentation. These factors include, but not limited to, regulatory developments, competitive conditions, technological developments, general economic conditions and management changes.
• The information, statements or opinions in this presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. TBB and its affiliates representatives, no matter for their negligence or any other reasons, should not be liable for any loss or damages arising from the use of or interpretation by others of information contained within this presentation or any matter related to this document.

2020 Year in Review: The impact of COVID-19

	2019(1)	2020(2)	(3)=(2)-(1)
Net Income before tax	80.66	53.85	(26.81)
	2019(1)	2020(2)	(3)=(2)-(1)
Loan Balance	11,299	11,685	386
Deposit Balance	14,363	14,397	34
Loan Interest Rate	2.06%	1.74%	(0.32%)
Deposit Interest Rate	0.71%	0.50%	(0.21%)
Interest Spread	1.35%	1.24%	(0.11%)
NPL	36.28	61.33	25.05
NPL Ratio	0.32%	0.50%	0.18%
Coverage Ratio	367.77%	233.60%	(134.17%)

In NT mn

Net Interest Spread (Monthly)

	202001	202002	202003	202004	202005	202006	202007	202008	202009	202010	202011	202012
Loan Interest Rate	2.04	2.01	1.94	1.75	1.70	1.63	1.63	1.63	1.61	1.62	1.66	1.64
Deposit Interest Rate	0.68	0.67	0.63	0.55	0.53	0.49	0.46	0.44	0.42	0.40	0.39	0.37
Net Interest Spread	1.36	1.34	1.31	1.20	1.17	1.14	1.17	1.19	1.19	1.22	1.27	1.27

%

	2018	2019	1Q20	2Q20	3Q20	4Q20
NIM	0.97	0.95	0.97	0.91	0.90	0.91

25,000	23,210 1.93%				2019 (1)	2020 (2)	(2)-(1)
20,000	9.45%	21,869	2.63% 10.43%	Net Revenue	23,210	21,869	(1,341)
	15.24%		12.90%	Net Interest Revenue	17,031	16,192	(839)
15,000 10,000	73.38%		74.04%	Net Interest revenue (Loan Deposit & Margin Loans Interest)	13,015	13,066	51
5,000				others	4,016	3,126	(890)
				Net Service Fee Revenue	3,537	2,821	(716)
0	2019年 Net Interest Revenue 利息淨收益 金融商品淨收益及兌換損益 Net Treasury Income &	2020年 Net Service Fee Revenue 手續費淨收益 其他淨收益		Net Treasury Income & Foreign Exchange Gain and Loss	2,194	2,282	88
	Foreign Exchange Gain and Loss	Net Other Revenue		Net Other Revenue	448	574	126

	2018	2019	Q20	2Q20	3Q20	4Q20
Demand Deposit Ratio	50.83%	49.91%	49.88%	75% 50.	51.12%	51.60%

In NT mn

2018	2019	1Q20	∠Q20	:Q20	IQ20

$\rightarrow$ Asset $\leftarrow$ Liability

	2018	2019 T)	1020	2020	3Q20	4Q20 (2)	$(2)-(1)$
Asset	1,619,040	1,746,153	1,666,252	1,664,290	1, 755, 288	1, 791, 635	45, 482
Liability	1,534,187	1,650,636		$1, 570, 769$ 1, 567, 865 1, 657, 932		1, 692, 976	42, 340

In NT mn

	2018	2019	1Q20	2Q20	3Q20	4Q20
Equity	84, 853	95, 517	95, 483	96, 425	97, 356	98, 659
Common Stock	63, 939	71, 320	71, 320	71, 320	74,886	74,886
BVPS	13.27	13.39	13.39	13.52	13.00	13.17

2018	2019	1Q20	2Q20	3Q20	4Q20

	2018	2019	1Q20	2Q20	3Q20	4Q20 (2)	$(2)-(1)$
Net Revenue	23, 027	23, 210	5,504	10,639	16, 355	21,869	$-1, 341$
Operating Expense	13,034	12, 727	3,092	6,183	9,299	12, 429	$-298$
Percentage	56.60%	54.83%	56.18%	58.12%	56.86%	56.83%	2.00%

year	institution	Outcome		Outlook
		Long term	Short term
2018	Taiwan Ratings	twAA-	twA-1+	Stable
	S&P	BBB+	A-2	Stable
	Taiwan Ratings	twAA-	twA-1+	Stable
2019	S&P	BBB+	A-2	Stable
2020	Taiwan Ratings	twAA-	twA-1+
	S&P	BBB+	A-2	Stable

Digital Banking Businesses in 2020

• Improve the independence and diversity of the board of directors

• Improve the governance of digital finance

• Prepare to sign TCFD

• Energy saving and carbon reduction
• Green procurement

Corporate Social Responsibility(CSR)

Employee rights

Continue strengthening digital finance services to meet Customer needs. Fulfill CSR to enhance financial performance and shareholder value.