Stock Code:2834

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Six Months Ended June 30, 2025 and 2024

ADDRESS: NO. 30, Ta-Cheng Street, Taipei, Taiwan, R.O.C. TELEPHONE: 02-2559-7171

The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail.

Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Review Report
4. Consolidated Balance Sheets
5. Consolidated Statements of Comprehensive Income
6. Consolidated Statements of Changes in Equity
7. Consolidated Statements of Cash Flows
8. Notes to the Consolidated Financial Statements
(1)
Company history
(2)
Approval date and procedures of the consolidated financial statements
(3)
New standards, amendments and interpretations adopted
(4)
Summary of material accounting policies
(5)
Significant accounting assumptions and judgments, and major sources
of estimation uncertainty
(6)
Explanation of significant accounts
(7)
Related-party transactions
(8)
Pledged assets
(9)
Commitments and contingencies
(10) Losses from disasters
(11) Subsequent Events
(12) Others
(13) Other disclosures
(a) Information on significant transactions
(b) Information on investees
(c) Information on investments in Mainland China
(d) Information of major shareholders
(14) Segment information Page

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129～130
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134～135
135
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Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of material accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Commitments and contingencies (10) Losses from disasters (11) Subsequent Events (12) Others (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investments in Mainland China (d) Information of major shareholders (14) Segment information	Page
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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網址 Web kpmg.com/tw

Independent Auditors’ Review Report

To the Board of Directors of Taiwan Business Bank, Ltd.:

Introduction

We have reviewed the accompanying consolidated balance sheets of Taiwan Business Bank, Ltd. and subsidiaries as of June 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2025 and 2024, as well as the changes in equity and cash flows for the six months ended June 30, 2025 and 2024, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Public Held Banks and International Accounting Standards (“IASs”) 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Taiwan Business Bank, Ltd. and subsidiaries as of June 30, 2025 and 2024, and of its consolidated financial performance for the three months and six months ended June 30, 2025 and 2024, as well as its consolidated cash flows for the six months ended June 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Public Held Banks and International Accounting Standards (“ IASs” ) 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

Other Matter

Taiwan Business Bank has prepared its parent-company-only financial statements as of and for the six months ended June 30, 2025 and 2024, on which we have issued an unmodified opinion.

The engagement partners on the reviews resulting in this independent auditors’ review report are Lee, Feng-Hui and Tsai, Pei-Ju.

KPMG

Taipei, Taiwan (Republic of China) August 13, 2025

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and its cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language auditors’ report and consolidated financial statements, the Chinese version shall prevail.

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Consolidated Balance Sheets

June 30, 2025, December 31, 2024 and June 30, 2024

(Expressed in Thousands of New Taiwan Dollars)

June 30, 2025	December 31, 2024	December 31, 2024	June 30, 2024
Amount % $ 244,133,403 10 1,690,022 - 9,000,666 - 1,241,536 - 25,855,208 1 1,029,105 - 1,907,881,438 80 53,210,000 2 1,930,742 - 2,427,165 - 1,143,347 - 895,336 - 16,860,454 1 2,267,298,422 94 91,679,828 5 5,500,790 - 816,129 - 27,728,853 1 185,128 - 9,852,467 - 299,703 - 136,062,898 6 $ 2,403,361,320 100	Amount	%	Amount % 141,199,959 7 1,547,685 - 9,796,473 - 2,822,816 - 27,470,503 1 959,427 - 1,893,676,862 84 53,460,000 3 2,095,988 - 2,620,899 - 1,310,855 - 933,046 - 2,896,906 - 2,140,791,419 95 82,224,061 4 9,455,767 - 815,900 - 23,647,983 1 185,128 - 7,525,126 - 1,780,544 - 125,634,509 5 2,266,425,928 100
	240,697,672 1,443,506 10,213,236 2,011,108 20,092,502 865,240 1,903,841,852 53,460,000 2,528,132 2,384,421 1,307,295 933,342 3,543,962	10 - - - 1 - 81 2 - - - - - 94 4 - - 1 - 1 - 6 100
	2,243,322,268
	91,679,828 - 816,129 23,647,983 185,128 14,767,272 337,442
	131,433,782
	2,374,756,050

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and six months ended June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

For the six months ended June 30, 2025 2024 Amount % Amount % 28,085,538 158 26,877,085 158 (18,273,031) (103) (17,630,312) (104) 9,812,507 55 9,246,773 54 3,730,163 21 3,777,587 22 3,024,343 17 2,924,811 17 843,771 5 453,964 3 82 - 56 - 74,782 - 223,635 1 (1,586) - (4,878) - 92,048 1 103,737 1 199,940 1 262,700 2 17,776,050 100 16,988,385 100 (1,543,170) (9) (1,215,289) (7) (4,928,417) (28) (4,790,061) (28) (691,585) (4) (688,080) (4) (2,682,276) (15) (2,416,890) (14) (8,302,278) (47) (7,895,031) (46) 7,930,602 44 7,878,065 47 1,507,384 8 1,633,986 10 6,423,218 36 6,244,079 37 (553,842) (3) 2,679,817 16 - - - - (553,842) (3) 2,679,817 16 (2,392,010) (14) 1,058,554 6 2,518,955 14 (2,611,790) (15) (466,392) (3) 213,955 1 593,337 3 (1,767,191) (10) 39,495 - 912,626 6 6,462,713 36 7,156,705 43 0.66 0.64 0.66 0.64	For the six months ended June 30, 2025 2024 Amount % Amount % 28,085,538 158 26,877,085 158 (18,273,031) (103) (17,630,312) (104) 9,812,507 55 9,246,773 54 3,730,163 21 3,777,587 22 3,024,343 17 2,924,811 17 843,771 5 453,964 3 82 - 56 - 74,782 - 223,635 1 (1,586) - (4,878) - 92,048 1 103,737 1 199,940 1 262,700 2 17,776,050 100 16,988,385 100 (1,543,170) (9) (1,215,289) (7) (4,928,417) (28) (4,790,061) (28) (691,585) (4) (688,080) (4) (2,682,276) (15) (2,416,890) (14) (8,302,278) (47) (7,895,031) (46) 7,930,602 44 7,878,065 47 1,507,384 8 1,633,986 10 6,423,218 36 6,244,079 37 (553,842) (3) 2,679,817 16 - - - - (553,842) (3) 2,679,817 16 (2,392,010) (14) 1,058,554 6 2,518,955 14 (2,611,790) (15) (466,392) (3) 213,955 1 593,337 3 (1,767,191) (10) 39,495 - 912,626 6 6,462,713 36 7,156,705 43 0.66 0.64 0.66 0.64	For the six months ended June 30, 2025 2024 Amount % Amount % 28,085,538 158 26,877,085 158 (18,273,031) (103) (17,630,312) (104) 9,812,507 55 9,246,773 54 3,730,163 21 3,777,587 22 3,024,343 17 2,924,811 17 843,771 5 453,964 3 82 - 56 - 74,782 - 223,635 1 (1,586) - (4,878) - 92,048 1 103,737 1 199,940 1 262,700 2 17,776,050 100 16,988,385 100 (1,543,170) (9) (1,215,289) (7) (4,928,417) (28) (4,790,061) (28) (691,585) (4) (688,080) (4) (2,682,276) (15) (2,416,890) (14) (8,302,278) (47) (7,895,031) (46) 7,930,602 44 7,878,065 47 1,507,384 8 1,633,986 10 6,423,218 36 6,244,079 37 (553,842) (3) 2,679,817 16 - - - - (553,842) (3) 2,679,817 16 (2,392,010) (14) 1,058,554 6 2,518,955 14 (2,611,790) (15) (466,392) (3) 213,955 1 593,337 3 (1,767,191) (10) 39,495 - 912,626 6 6,462,713 36 7,156,705 43 0.66 0.64 0.66 0.64
2025	% 158 (103) 55 21 17 5 - - - 1 1 100 (9) (28) (4) (15) (47) 44 8 36 (3) - (3) (14) 14 (3) 3 - 36 0.66 0.66	2024 Amount 26,877,085 (17,630,312) 9,246,773 3,777,587 2,924,811 453,964 56 223,635 (4,878) 103,737 262,700 16,988,385 (1,215,289) (4,790,061) (688,080) (2,416,890) (7,895,031) 7,878,065 1,633,986 6,244,079 2,679,817 - 2,679,817 1,058,554 (2,611,790) 213,955 (1,767,191) 912,626 7,156,705
Amount 28,085,538 (18,273,031) 9,812,507 3,730,163 3,024,343 843,771 82 74,782 (1,586) 92,048 199,940 17,776,050 (1,543,170) (4,928,417) (691,585) (2,682,276) (8,302,278) 7,930,602 1,507,384 6,423,218 (553,842) - (553,842) (2,392,010) 2,518,955 (466,392) 593,337 39,495 6,462,713

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the six months ended June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

		Attributable to owners of parent	Attributable to owners of parent	Attributable to owners of parent		Other equity interest Unrealized gains Exchange differences on translation of foreign financial statements (losses) on financial assets measured at fair value through other comprehensive income (629,158) 1,613,752 - - 846,843 65,783 846,843 65,783 - - - - - - - - - (116,676) 217,685 1,562,859 200,058 137,384 - - (1,913,608) 1,953,103 (1,913,608) 1,953,103 - - - - - - - (77,234) (1,713,550) 2,013,253	Total
Share capital Common stock Stock dividend to be distributed $ 82,224,061 - - - - - - - - - - - - - - 9,455,767 - - $ 82,224,061 9,455,767 $ 91,679,828 - - - - - - - - - - - - 5,500,790 - - $ 91,679,828 5,500,790	Capital surplus 815,900 - - - - - - - - 815,900 816,129 - - - - - - - 816,129		Retained earnings
Common stock $ 82,224,061 - - - - - - - - $ 82,224,061 $ 91,679,828 - - - - - - - $ 91,679,828		Legal reserve 20,028,865 - - - 3,619,118 - - - - 23,647,983 23,647,983 - - - 4,080,870 - - - 27,728,853	Special reserve 3,954,803 - - - - (3,769,675) - - - 185,128 185,128 - - - - - - - 185,128	Unappropriated retained earnings 12,114,062 6,244,079 - 6,244,079 (3,619,118) 3,769,675 (1,644,481) (9,455,767) 116,676 7,525,126 14,767,272 6,423,218 - 6,423,218 (4,080,870) (1,833,597) (5,500,790) 77,234 9,852,467	Total 36,097,730 6,244,079 - 6,244,079 - - (1,644,481) (9,455,767) 116,676 31,358,237 38,600,383 6,423,218 - 6,423,218 - (1,833,597) (5,500,790) 77,234 37,766,448	Exchange differences on translation of foreign financial statements (629,158) - 846,843 846,843 - - - - - 217,685 200,058 - (1,913,608) (1,913,608) - - - - (1,713,550)
							120,122,285 6,244,079 912,626 7,156,705 - - (1,644,481) - - 125,634,509 131,433,782 6,423,218 39,495 6,462,713 - (1,833,597) - - 136,062,898

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the six months ended June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Net income before tax Adjustments: Income and expences items: Depreciation expense Amortization expense Provision for bad debt expense Net losses on financial assets or liabilities at fair value through profit or loss Interest expenses Net gain arising from derecognition of financial assets measured at amortised cost Interest income Net change in provisions for guarantee liabilities Net change in other provisions Loss on disposal of property and equipment Impairment loss on financial assets Other items Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Changes in operating assets: Decrease in due from the central bank and call loans to banks Increase in financial assets at fair value through profit or loss (Increase) decrease in securities purchased under resell agreements Increase in receivables Increase in discounts and loans (Increase) decrease in other financial assets Decrease (increase) in other assets Total changes in operating assets Changes in operating liabilities: Increase (decrease) in deposits from the central bank and banks (Decrease) increase in financial liabilities at fair value through profit or loss (Decrease) increase in notes and bonds issued under repurchase agreement Increase in payable Increase in deposits and remittances Decrease in other financial liabilities Increase (decrease) in provisions for employee benefits Increase in other liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Interest paid Income taxes paid Net cash flows from operating activities Cash flows from (used in) investing activities: Acquisition of financial assets at fair value through other comprehensive income Acquisition of financial assets at amortised cost Proceeds from repayments of financial assets at amortised cost Acquisition of property and equipment Proceeds from disposal of property and equipment (Increase) decrease in refundable deposits Acquisition of intangible assets Net cash flows used in investing activities Cash flows (used in) from financing activities: Increase in due to the central bank and banks Repayments of bank notes payable (Decrease) increase in guarantee deposits received Payment of lease liabilities Decrease in other liabilities Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the six months ended June 30, 2025 2024 $ 7,930,602 7,878,065 468,135 513,097 223,450 174,983 1,513,575 1,208,816 (315,326) 664,972 18,273,031 17,630,312 (82) (56) (28,085,538) (26,877,085) 46,400 35,217 (16,419) (28,356) 2,835 1,535 1,586 4,878 6 (7) (7,888,347) (6,671,694) 43,586,804 1,507,228 (10,299,808) (3,331,457) (5,057,805) 2,468,485 (375,132) (1,191,244) (16,844,093) (42,398,227) (6,190) 1,849 2,525,688 (1,411,902) 13,529,464 (44,355,268) 3,435,731 (21,962,597) (1,393,372) 299,767 (769,572) 1,036,101 4,238,857 892,377 4,039,586 70,263,628 (597,390) (40,414) 14,917 (291,136) 15,437,350 - 24,406,107 50,197,726 37,935,571 5,842,458 30,047,224 (829,236) 37,977,826 7,048,829 28,406,957 26,372,954 (18,574,518) (17,030,044) (1,437,177) (623,665) 46,373,088 15,768,074 (10,688,011) (13,328,015) (178,616,440) (164,724,634) 138,088,382 163,945,424 (233,999) (169,785) 21 75 (3,004,828) 162,107 (258,146) (292,505) (54,713,021) (14,407,333) 246,516 115,845 (250,000) (390,000) (2,086,300) 964,776 (227,869) (227,551) (34,558) (3,040,829) (2,352,211) (2,577,759) (107,426) 34,411 (10,799,570) (1,182,607) 35,663,893 34,356,881 $ 24,864,323 33,174,274
	2025 $ 7,930,602 468,135 223,450 1,513,575 (315,326) 18,273,031 (82) (28,085,538) 46,400 (16,419) 2,835 1,586 6 (7,888,347) 43,586,804 (10,299,808) (5,057,805) (375,132) (16,844,093) (6,190) 2,525,688 13,529,464 3,435,731 (1,393,372) (769,572) 4,238,857 4,039,586 (597,390) 14,917 15,437,350 24,406,107 37,935,571 30,047,224 37,977,826 28,406,957 (18,574,518) (1,437,177) 46,373,088 (10,688,011) (178,616,440) 138,088,382 (233,999) 21 (3,004,828) (258,146) (54,713,021) 246,516 (250,000) (2,086,300) (227,869) (34,558) (2,352,211) (107,426) (10,799,570) 35,663,893 $ 24,864,323

Cash flows from operating activities:
Net income before tax
Adjustments:
Income and expences items:
Depreciation expense
Amortization expense
Provision for bad debt expense
Net losses on financial assets or liabilities at fair value through profit or loss
Interest expenses
Net gain arising from derecognition of financial assets measured at amortised cost
Interest income
Net change in provisions for guarantee liabilities
Net change in other provisions
Loss on disposal of property and equipment
Impairment loss on financial assets
Other items
Total adjustments to reconcile profit (loss)
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease in due from the central bank and call loans to banks
Increase in financial assets at fair value through profit or loss
(Increase) decrease in securities purchased under resell agreements
Increase in receivables
Increase in discounts and loans
(Increase) decrease in other financial assets
Decrease (increase) in other assets
Total changes in operating assets
Changes in operating liabilities:
Increase (decrease) in deposits from the central bank and banks
(Decrease) increase in financial liabilities at fair value through profit or loss
(Decrease) increase in notes and bonds issued under repurchase agreement
Increase in payable
Increase in deposits and remittances
Decrease in other financial liabilities
Increase (decrease) in provisions for employee benefits
Increase in other liabilities
Total changes in operating liabilities
Total changes in operating assets and liabilities
Total adjustments
Cash inflow generated from operations
Interest received
Interest paid
Income taxes paid
Net cash flows from operating activities
Cash flows from (used in) investing activities:
Acquisition of financial assets at fair value through other comprehensive income
Acquisition of financial assets at amortised cost
Proceeds from repayments of financial assets at amortised cost
Acquisition of property and equipment
Proceeds from disposal of property and equipment
(Increase) decrease in refundable deposits
Acquisition of intangible assets
Net cash flows used in investing activities
Cash flows (used in) from financing activities:
Increase in due to the central bank and banks
Repayments of bank notes payable
(Decrease) increase in guarantee deposits received
Payment of lease liabilities
Decrease in other liabilities
Net cash flows used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

For the six months ended June 30,
2025
2024
$ 7,930,602
7,878,065
468,135
513,097
223,450
174,983
1,513,575
1,208,816
(315,326)
664,972
18,273,031
17,630,312
(82)
(56)
(28,085,538)
(26,877,085)
46,400
35,217
(16,419)
(28,356)
2,835
1,535
1,586
4,878
6
(7)
(7,888,347)
(6,671,694)
43,586,804
1,507,228
(10,299,808)
(3,331,457)
(5,057,805)
2,468,485
(375,132)
(1,191,244)
(16,844,093)
(42,398,227)
(6,190)
1,849
2,525,688
(1,411,902)
13,529,464
(44,355,268)
3,435,731
(21,962,597)
(1,393,372)
299,767
(769,572)
1,036,101
4,238,857
892,377
4,039,586
70,263,628
(597,390)
(40,414)
14,917
(291,136)
15,437,350
-
24,406,107
50,197,726
37,935,571
5,842,458
30,047,224
(829,236)
37,977,826
7,048,829
28,406,957
26,372,954
(18,574,518)
(17,030,044)
(1,437,177)
(623,665)
46,373,088
15,768,074
(10,688,011)
(13,328,015)
(178,616,440)
(164,724,634)
138,088,382
163,945,424
(233,999)
(169,785)
21
75
(3,004,828)
162,107
(258,146)
(292,505)
(54,713,021)
(14,407,333)
246,516
115,845
(250,000)
(390,000)
(2,086,300)
964,776
(227,869)
(227,551)
(34,558)
(3,040,829)
(2,352,211)
(2,577,759)
(107,426)
34,411
(10,799,570)
(1,182,607)
35,663,893
34,356,881
$
24,864,323
33,174,274

2025
$ 7,930,602
468,135
223,450
1,513,575
(315,326)
18,273,031
(82)
(28,085,538)
46,400
(16,419)
2,835
1,586
6
(7,888,347)
43,586,804
(10,299,808)
(5,057,805)
(375,132)
(16,844,093)
(6,190)
2,525,688
13,529,464
3,435,731
(1,393,372)
(769,572)
4,238,857
4,039,586
(597,390)
14,917
15,437,350
24,406,107
37,935,571
30,047,224
37,977,826
28,406,957
(18,574,518)
(1,437,177)
46,373,088
(10,688,011)
(178,616,440)
138,088,382
(233,999)
21
(3,004,828)
(258,146)
(54,713,021)
246,516
(250,000)
(2,086,300)
(227,869)
(34,558)
(2,352,211)
(107,426)
(10,799,570)
35,663,893
$
24,864,323

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

TAIWAN BUSINESS BANK, LTD. (the “ Bank” ) was formerly a general savings union known as “Taiwan Mutual Financing Bank” or “Tai-Shio Mutual Financing Bank” when it was established in 1915. After several mergers and acquisitions, it was renamed as Taiwan Business Bank, Ltd. in order to finance and provide banking assistance to small and medium-size businesses on July 1, 1976. The Bank’s major lines of business are the following:

(a) As prescribed by the Banking Law, provides professional services tailored to the needs of small and medium-size businesses;
(b) Trust and securities brokerage businesses as approved by the relevant authority;
(c) International banking business; and
(d) Other relevant businesses as authorized by the relevant authority in-charge.

As of June 30, 2025, the Bank not only sets up the business dept., international dept., securities dept. and trust dept. under head office but also has 124 domestic branches, 1 offshore banking unit, 8 overseas branches, 1 oversea representative office and 16 securities brokerage locations.

The Bank became listed on the Taiwan Stock Exchange on January 3, 1998.

Under the ” Statute for Privatization of State Enterprises” and upon the approval of Taiwan Province Government, the shares of the Bank owned by the provincial government were sold to the public. In line with privatization of the three other major Taiwan province government owned run commercial banks, the Bank had completed its own privatization on January 22, 1998.

As of June 30, 2025, December 31 and June 30, 2024, the Bank and subsidiaries has 5,883, 5,740 and 5,674 employees, respectively.

(2) Approval date and procedures of the consolidated financial statements:

The consolidated financial statements were authorized for issuance by the board of directors on August 13, 2025.

(3) New standards, amendments and interpretations adopted:

(a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Bank and subsidiaries has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025:

●Amendments to IAS21 “Lack of Exchangeability”

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

The Bank and subsidiaries anticipated adoption of the new amendments beginning on January 1, 2026, are expected to have the following impacts:

(i) Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”

For financial assets with contingent features that are not related directly to a change in basic lending risks or costs (e.g. where the cash flows change depending on whether the borrower meets an ESG target specified in the loan contract), the amendments introduce an additional test to assess the “ solely payments of principal and interest on the principal amount outstanding” criterion.

The Bank and subsidiaries invested in ESG-linked bonds and may need to change the classification due to the amendments. The Bank and subsidiaries is continually evaluating the impact of its initial adoption of the amendments on its consolidated financial statements.

In addition, these amendments clarify that financial assets and financial liabilities can only be derecognized upon settlement and introduce specific requirements for the derecognition of financial liabilities settled through electronic payment systems. When settling a financial liability (or part of a financial liability) in cash using an electronic payment system, the Bank is permitted to deem the financial liability (or part of it) to be discharged before the settlement date only if, and only if, the Bank has initiated a payment instruction that results in all of the following:(a) the Bank having no practical ability to withdraw, stop or cancel the payment instruction;(b) the Bank having no practical ability to access the cash to be used for settlement as a result of the payment instruction; and (c) the settlement risk associated with the electronic payment system being insignificant. The Bank and subsidiaries shall apply this derecognition exception consistently to all settlements made through the same electronic payment system.

The Bank and subsidiaries is required to reassess the timing of derecognition of financial assets and financial liabilities and is continually evaluating the impact of its initial adoption of the amendments on its consolidated financial statements.

(ii) Other amendments

The following amendments are not expected to have a significant impact on the Bank’ s consolidated financial statements.

●IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
●Annual Improvements to IFRS Accounting Standards—Volume 11
●Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The following new and amended standards, which may be relevant to the Bank, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or
Interpretations
IFRS 18 “Presentation and
Disclosure in Financial
Statements”

Content of amendment
Effective date per
IASB
The
new
standard
introduces
three
categories of income and expenses, two
income statement subtotals and one single
note
on
management
performance
measures.
The
three
amendments,
combined with enhanced guidance on how
to disaggregate information, set the stage
for better and more consistent information
for users, and will affect all the entities.
January 1, 2027

●A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’ s main business activities.
●Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.
●Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Bank and subsidiaries is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Bank completes its evaluation.

The Bank and subsidiaries does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

(4) Summary of material accounting policies:

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Public Held Banks and the preparation and guidelines of IAS 34 "Interim Financial Reporting" which are endorsed and issued into effect by FSC and do not include all of the information required by the Regulations and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission (hereinafter referred to IFRS Accounting Standards endorsed by the FSC) for a complete set of annual consolidated financial statements.

Except as described below, the significant accounting policies adopted in the accompanying consolidated financial statements are the same as those in the consolidated financial statements for the year ended December 31, 2024. Please refer to Note 4 of the consolidated financial statements as of and for the year ended December 31, 2024 for the detail disclosures of significant accounting policies.

(b) Basis of consolidation

List of subsidiaries in the consolidated financial statements:

TBB International Leasing Co., Ltd. Taiwan Business Bank International Leasing Co., Ltd. TBB (Cambodia) Microfinance Institution Plc TBB Venture Capital Co., Ltd. TBB Consulting Co., Ltd.	Established location Main business scope	Shareholding (Holding %)	Shareholding (Holding %)
		June 30, 2025	December 31, 2024 June 30, 2024 100 100 100 100 100 100 100 100 100 100
	Taiwan Leasing business China Leasing business Cambodia Financial company Taiwan Investing business Taiwan Consulting business	100 100 100 100 100

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of IAS 34 “Interim Financial Reporting”.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period by the effective annual tax rate as forecasted by the management. Income tax expenses for the period and deferred income tax expenses are apportioned based on the proportion of expected income tax expenses for the year and deferred income tax expense. Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

The preparation of the consolidated financial statements in conformity with the Regulations and IFRS Accounting Standards (in accordance with IAS 34 "Interim Financial Reporting" and endorsed by the FSC) requires management to make judgments, and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Except for the following, the preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis in conformity with the consolidated financial statements for the year ended December 31, 2024. For related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2024.

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

Cash and cash equivalents
Petty cash and revolving funds Foreign currencies on hand Checks for clearing Due from other banks Total	June 30, 2025 $ 10,347,659 849,306 1,963,130 11,704,228 $ 24,864,323	December 31, 2024 16,244,131 1,028,938 2,406,858 15,983,966 35,663,893	June 30, 2024
			10,770,819 946,575 10,842,213 10,614,667
			33,174,274

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Due from the Central Bank and call loans to banks

Due from the Central Bank Deposits transferred to Central Bank Call loans to banks Trust fund indemnity reserve deposited Securities serving as trust fund indemnity reserve deposited Total	June 30, 2025 $ 89,861,498 54,257 34,251,363 140,000 (140,000) $ 124,167,118	December 31, 2024 117,075,985 49,318 50,630,445 120,000 (120,000) 167,755,748	June 30, 2024 76,511,253 55,788 41,857,165 120,000 (120,000) 118,424,206

As of June 30, 2025, December 31 and June 30, 2024, in accordance with the Banking Law and the Central Bank Law, the required reserve deposited by the Bank with the Central Bank amounted to $89,274,257, $116,625,097 and $76,003,441 of which $61,168,427, $58,351,432 and $53,824,624 respectively, were restricted and such restriction may only be lifted when the required reserve is adjusted to a lower amount.

As of June 30, 2025, December 31 and June 30, 2024, the Bank’s subsidiaries and overseas branches, in compliance with the Central Bank’ s reserve requirement set by local authorities, deposited $302,581, $129,995 and $159,970 and in reserve, of which $67,013, $63,880 and $46,889 were restricted.

Effective December 2000, in accordance with the amended “Regulations Governing the Audit and Adjustment of Deposit and Other Liability Reserves of Financial Institutions”, the Bank provides the required additional reserve on foreign currency deposits. As of June 30, 2025, December 31 and June 30, 2024, the required reserve with the Central Bank amounted to $284,660, $320,893 and $347,842 respectively, and its use was unrestricted.

As of June 30, 2025, December 31 and June 30, 2024, deposits transferred to the Central Bank collected from the armed forces, prisons, and other treasury deposits were restricted.

Effective January 20, 2001, in accordance with the requirement of the Central Bank of China, the Bank complies with Clause 34 of the Trust Law to treat the discretionary trust of investments in overseas marketable securities as a default loss reserve. As of June 30, 2025, December 31 and June 30, 2024, the Bank deposited marketable securities of $140,000, $120,000 and $120,000 as trust fund reserves.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets at fair value through profit or loss, mandatorily measured at fair value : Derivative instruments not used for hedging: Foreign exchange forward contracts Currency swap contracts Foreign currency options-buy Stock index futures Interest rate swap Non-derivative financial assets Commercial paper Listed stocks Unlisted stocks Beneficiary certificates Financial debentures Total	June 30, 2025 $ 44,263 3,174,282 3,614 24,245 225,983 88,363,163 821,651 536,658 207,861 200,000 $ 93,601,720	December 31, 2024 10,004 2,882,743 11,352 27,320 - 78,181,124 794,532 493,166 205,544 200,000 82,805,785	June 30, 2024
			7,103 2,597,207 9,257 26,997 - 70,839,461 1,504,964 535,275 414,816 200,000
			76,135,080

Derivative financial instruments are used for hedging foreign exchange risk and interest rate risk arising from operating, financing and investing activities. The Bank and subsidiaries held derivative financial instruments which did not apply to hedge accounting are as follows (reported as financial assets mandatorily measured at fair value through profit or loss and financial liabilities held for trading)

Currency swaps contract Interest rate swaps contract Option contract - buy Option contract - sell Forward foreign exchange contract	June 30, 2025 $ 186,454,791 20,105,733 2,240,876 2,240,876 1,074,244	December 31, 2024 June 30, 2024 212,126,990 202,806,710 12,985,786 12,350,019 1,229,438 2,051,910 1,229,438 2,051,910 1,472,936 1,484,303

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Securities purchased under resell agreements

Securities under resell agreements Face amount Resell period Range of resell interest rate Resell price	June 30, 2025 $ 15,310,170 $ 15,322,500 2025.07.01~2025.07.17 1.47%~1.50% $ 15,322,180	December 31, 2024 10,252,365 10,287,300 2025.01.06~2025.01.17 1.64%~1.65% 10,259,976	June 30, 2024
			4,642,000
			4,650,000
			2024.07.03~2024.07.12
			1.55%
			4,644,894

(e) Receivables, net

Interest receivable Acceptances receivable Accrued income Accounts receivable Spot exchange receivable-foreign currencies Refinancing guaranty deposits Guaranteed proceeds receivable from refinacing Credit cards accounts receivable Receivable price of securities purchased for customers Settlement price Installment receivables and leases Other receivables Sub-total Less: Allowance for bad debts Total	June 30, 2025 $ 5,702,048 868,640 1,150,430 1,195,693 39,729 954 794 1,160,509 270,312 131,851 2,311,225 497,015 13,329,200 (146,390) $ 13,182,810	December 31, 2024 6,061,292 1,245,377 384,262 1,211,887 27,414 - - 1,283,650 499,128 - 2,268,953 331,349 13,313,312 (133,030) 13,180,282	June 30, 2024
			5,989,877 1,117,015 944,236 1,286,883 19,894 184 153 1,489,698 516,658 - 2,191,793 169,088
			13,725,479 (137,317)
			13,588,162

The outstanding contract amount of financial assets that have been written off and still have recourse as of June 30, 2025, December 31 and June 30, 2024 were $86,128,836, $85,862,421 and $85,883,475 respectively.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The change in allowance for bad debts was as follows:

Beginning balance Provision Foreign exchange Ending balance (f) Discounts and loans, net Import/export bills negotiated Bills and notes discounted Overdrafts Secured overdrafts Short-term loans Short-term secured loans Margin loans receivable Medium-term loans Medium-term secured loans Long-term loans Long-term secured loans Overdue loans Sub-total Less: Adjustment of discount and premium Less: Allowance for bad debts Total	June 30, 2025 $ 120,418 596,409 3,077 815,291 165,648,222 237,712,091 2,954,457 213,974,609 325,261,331 42,696,852 665,526,176 1,902,299 1,657,211,232 (235,345) (22,442,131) $ 1,634,533,756	For the six months	ended June 30,
		2025 $ 133,030 15,395 (2,035) $ 146,390 December 31, 2024 220,924 634,680 19,228 835,678 180,131,363 233,140,541 4,072,823 219,030,813 329,201,296 41,693,266 630,763,210 1,440,665 1,641,184,487 (273,170) (21,874,983) 1,619,036,334	2024
			121,512 13,920 1,885
			137,317
			June 30, 2024 49,445 430,383 18,067 1,366,596 168,175,040 219,651,033 3,697,368 211,932,950 329,390,708 39,098,635 577,166,442 1,464,987 1,552,441,654 (294,691) (19,667,041) 1,532,479,922

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The change in allowance for bad debts was as follows:

Beginning balance Provision Transfer out Write-off Write-off recovered Foreign exchange Ending balance	For the six months ended June 30,	For the six months ended June 30,
	2025 $ 21,874,983 1,502,902 (10,081) (2,423,843) 1,606,495 (108,325) $ 22,442,131	2024
		19,602,842 1,205,678 (8,923) (2,429,213) 1,262,320 34,337 19,667,041

(g) Financial asset at fair value through other comprehensive income

Investment in debt instruments measured at fair value through other comprehensive income`：` Government bonds Corporate bonds Financial debentures Negotiable certificates of deposit Subtotal Investment in equity instruments measured at fair value through other comprehensive income`：` Listed stocks Unlisted stocks Real Estate Investment Trust Subtotal Total	June 30, 2025 $ 54,890,434 79,568,293 29,302,435 585,364 164,346,526 23,968,638 9,271,946 100,100 33,340,684 $ 197,687,210	December 31, 2024 55,187,459 75,901,236 35,671,677 652,513 167,412,885 10,012,278 7,476,886 118,912 17,608,076 185,020,961	June 30, 2024
			57,776,313 76,960,785 35,939,184 646,169
			171,322,451
			24,423,127 6,928,516 140,043 31,491,686 202,814,137

(i) Investment in debt instruments measured at fair value through other comprehensive income

The Bank and subsidiaries assessed that the above bond investments were held within a business model whose objective was achieved by both collecting contractual cash flows and selling financial assets. The bond investments have been classified as the financial asset measured at fair value through other comprehensive income. Some of the investment in debt instruments measured at fair value through other comprehensive income are used as resell condition. Please refer to Note 6 (q) for more details.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Investment in equity instruments measured at fair value through other comprehensive income

The Bank and subsidiaries designated the investments shown above as equity securities as at fair value through other comprehensive income because these equity securities represent those investments intending to hold for long-term for strategic purpose.

The Bank and subsidiaries designated the investments shown above as equity instrument as at fair value through other comprehensive income; therefore, the Bank and subsidiaries recognized $696,056, $375,700, $843,246 and $453,850, respectively as dividend revenue for the three months and six months ended June 30, 2025 and 2024.

In which, the disposal equity instruments were recognized $45,519, $94,838, $73,511 and $94,838 as dividend revenue for the three months and six months ended June 30, 2025 and 2024.

The Bank and subsidiaries sold the investments which were measured as at fair value through other comprehensive income due to assets allocation. The fair value of disposed investments are $1,116,484, $4,255,640, $2,606,709 and $4,255,640. And (losses) gains on disposal are $(121,070), $116,676, $77,234 and $116,676 for the three months and six months ended June 30, 2025 and 2024. Therefore, accumulated gains on disposal were transferred from other equity to retained earnings.

(iii) Please refer to Note 6(ao) for the credit risk (including the impairment in debt instruments) and market risk information.)
(iv) Reserve for provisional seizure by the court:

Court provisional seizure	June 30, 2025 $ 279,400	December 31, 2024 226,900	June 30, 2024
			68,300

(v) The changes in the allowance for credit losses attribute to the FVOCI were as follows:

Beginning balance Reversal Foreign exchange Ending balance	For the six months ended June 30, 2025 2024 $ 87,728 100,349 (10,913) (3,275) (2,212) 1,104 $ 74,603 98,178
	2025 $ 87,728 (10,913) (2,212) $ 74,603

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(h) Investment in debt instruments at amortized cost

Certificates of deposit with the Central Bank Government bonds Corporate bonds Financial debentures Negotiable certificates of deposit Subtotal Less: Accumulated impairment Total	June 30, 2025 $ 197,455,000 24,104,597 31,027,644 18,194,480 61,152 270,842,873 (83,982) $ 270,758,891	December 31, 2024 154,215,000 25,405,650 31,241,169 19,384,065 68,849 230,314,733 (72,325) 230,242,408	June 30, 2024
			176,440,000 29,639,737 29,928,564 17,678,330 68,397
			253,755,028 (89,042)
			253,665,986

The Bank and subsidiaries assessed that these financial assets were held to collect the contractual cash flows, which consisted solely of payments of principal and interest on principal amount outstanding. Therefore, these investments were classified as financial assets measured at amortized cost.

(i) Please refer to Note 6(ao) for credit risk.

(ii) The pledged assets provided by the above investment in debt instruments at amortized cost were shown follows:

Reserve for provisional seizure by the court, international card payment reserve, trust claim reserve and operating guaranty funds Overseas branches required reserve of overdraft guarantee Daylight overdraft guarantee Guarantee for borrowing US dollars Guarantee for borrowing JPY dollars Total	June 30, 2025 $ 1,004,300 61,152 2,000,000 29,000,000 200,000 $ 32,265,452	December 31, 2024 850,600 68,849 2,000,000 29,000,000 200,000 32,119,449	June 30, 2024
			1,158,400 68,397 2,000,000 29,000,000 200,000
			32,426,797

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) The changes in the allowance for credit losses attribute to investment in debt instruments at amortized cost were as follows:

amortized cost were as follows:
Beginning balance Provision Foreign exchange Ending balance	For the six months ended June 30,
	2025 $ 72,325 12,499 (842) $ 83,982	2024
		80,620 8,153 269
		89,042

(iv) Disposal gain (loss) on disposal investment in assets at amortized cost ：

For the three months ended June 30, 2025	For the three months ended June 30, 2025	For the six months ended June 30, 2025	For the six months ended June 30, 2025
The carrying amount at the date of derecognition Gain (Loss) on disposal $ 3,161 39 For the three months ended June 30, 2024	Gain (Loss) on disposal	The carrying amount at the date of derecognition Gain (Loss) on disposal 7,279 82 For the six months ended June 30, 2024	Gain (Loss) on disposal
	39		82
	Gain (Loss) on disposal	The carrying amount at the date of derecognition 5,223	Gain (Loss) on disposal
	30		56

For the three months and six months ended June 30, 2025 and 2024, it is due to the advanced redemption of the issuer.

(i) Investments accounted for using equity method
(i) Associates

The Bank and subsidiaries had significant influence on Media Talk Consultants Co., Ltd. by investing 2 million dollars on December 22, 2021 and holding 20% equity on it. In addition, since Media Fund 1, which was planned to be raised, was not as well funded as expected and the accumulated losses of Media Talk Consultants Co., Ltd. had exceeded 70% of the paid-in capital at the end of 2022, it has ceased its operation with effect from May 1, 2023, after prudent assessment.

(ii) Guarantee

The Bank and subsidiaries did not provide any investments accounted for using the equity method as collateral for its loans.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(j) Other financial assets, net

Overdue receivable Less: Allowance for bad debts, overdue receivable Total	June 30, 2025 $ 19,874 (9,951) $ 9,923	December 31, 2024 15,380 (8,543) 6,837	June 30, 2024
			17,408 (9,587) 7,821

The change in allowance for bad debts was as follows:

Beginning balance Reversal Transfer in Write-off Written-off recovered Ending balance	For the six months ended June 30,	For the six months ended June 30,
	2025 $ 8,543 (6,977) 10,081 (11,080) 9,384 $ 9,951	2024
		11,490 (10,366) 8,923 (9,116) 8,656
		9,587

(k) Property and equipment, net

June 30, 2025	Cost $ 6,746,952 8,291,260 3,023,971 268,257 707,247 199,598 3,224 247,084 $ 19,487,593 Cost $ 6,746,952 8,241,481 3,018,119 271,903 708,017 204,009 1,812 219,165 $ 19,411,458	Revaluation increment 2,984,621 31,184 - - - - - - 3,015,805 Revaluation increment 2,984,621 31,184 - - - - - - 3,015,805	Accumulated depreciation - 5,289,179 2,393,830 233,224 569,205 143,719 - - 8,629,157 Accumulated depreciation - 5,185,589 2,385,703 235,262 574,736 133,380 - - 8,514,670	Accumulated impairment 14,031 14,754 - - - - - - 28,785 Accumulated impairment 14,031 14,754 - - - - - - 28,785	Total 9,717,542 3,018,511 630,141 35,033 138,042 55,879 3,224 247,084
Land Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Leasehold improvements Construction in progress Prepayment for equipment Total December 31, 2024
					13,845,456
					Total 9,717,542 3,072,322 632,416 36,641 133,281 70,629 1,812 219,165
Land Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Leasehold improvements Construction in progress Prepayment for equipment Total
					13,883,808

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

June 30, 2024	Cost $ 6,746,952 8,180,998 2,895,648 269,437 674,015 198,173 33,076 187,721 $ 19,186,020	Revaluation increment 2,984,621 31,184 - - - - - - 3,015,805	Accumulated depreciation - 5,075,081 2,281,042 232,705 563,518 129,507 - - 8,281,853	Accumulated impairment 14,031 14,754 - - - - - - 28,785	Total 9,717,542 3,122,347 614,606 36,732 110,497 68,666 33,076 187,721
Land Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Leasehold improvements Construction in progress Prepayment for equipment Total
					13,891,187

Change of cost

Land Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Leasehold improvements Construction in progress Prepayment for equipment Total Land Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Leasehold improvements Construction in progress Prepayment for equipment Total	January 1, 2025 $ 9,731,573 8,272,665 3,018,119 271,903 708,017 204,009 1,812 219,165 $ 22,427,263 January 1, 2024 $ 9,731,573 8,174,873 2,809,955 264,916 671,418 203,138 61,737 220,805 $ 22,138,415	Increase - 49,779 108,122 4,562 22,625 1,849 11,232 60,950 259,119 Increase - 37,309 135,637 13,485 24,555 1,236 924 38,033 251,179	Decrease - - 93,572 6,929 19,161 938 9,820 32,817 163,237 Decrease - - 54,524 9,586 24,066 6,929 29,585 71,438 196,128	Foreign Exchange - - (8,698) (1,279) (4,234) (5,322) - (214) (19,747) Foreign Exchange - - 4,580 622 2,108 728 - 321 8,359	June 30, 2025
					9,731,573 8,322,444 3,023,971 268,257 707,247 199,598 3,224 247,084
					22,503,398
					June 30, 2024 9,731,573 8,212,182 2,895,648 269,437 674,015 198,173 33,076 187,721
					22,201,825

Change of depreciation

Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Leasehold improvements Total	January 1, 2025 $ 5,185,589 2,385,703 235,262 574,736 133,380 $ 8,514,670	Increase 103,590 106,464 5,818 17,513 16,406 249,791	Decrease - 90,829 6,867 19,110 938 117,744	Foreign Exchange - (7,508) (989) (3,934) (5,129) (17,560)	June 30, 2025 5,289,179 2,393,830 233,224 569,205 143,719
					8,629,157

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

January 1, 2024 Buildings $ 4,979,561 Machinery and equipment 2,170,544 Transportation equipment 227,359 Miscellaneous equipment 565,428 Leasehold improvements 119,859 Total $ 8,062,751 Accumulated impairment January 1, 2025 Land $ 14,031 Buildings 14,754 Total $ 28,785 January 1, 2024 Land $ 14,031 Buildings 14,754 Total $ 28,785	Increase 95,520 160,771 14,485 20,515 16,283 307,574 Increase - - - Increase - - -	Decrease - 53,220 9,526 23,820 6,929 93,495 Decrease - - - Decrease - - -	Foreign Exchange - 2,947 387 1,395 294 5,023 Foreign Exchange - - - Foreign Exchange - - -	June 30, 2024 5,075,081 2,281,042 232,705 563,518 129,507
				8,281,853
				June 30, 2025 14,031 14,754
				28,785
				June 30, 2024 14,031 14,754
				28,785

Accumulated impairment

When the Bank and subsidiaries first adopted IFRSs, it elected to apply the revaluation amount calculated per the regulation of GAAP of R.O.C as the original cost on the transition date.

As of June 30, 2025, December 31, 2024 and June 30, 2024, the appreciation from revaluation of properties all amounted to $3,015,805. Reserve for land incremental tax all amounted to $878,623 (Recognized under deferred tax liabilities).

As of June 30, 2025, December 31 and June 30, 2024, land which was occupied amounted to $348, $5,496 and $5,496 thousands separately. Except for a portion of the land that had been negotiated with the occupant to collect the rent; the Bank intends to participate in land auction, urban renewal or by other appropriate means in due course.

(l) Right-of-use assets

The Bank and subsidiaries leases many assets including buildings, machinery and transportation equipment. Information about leases on costs, depreciation and impairment for which the Bank and subsidiaries as a lessee is presented below:

June 30, 2025	Cost $ 2,094,437 99,459 13,766 $ 2,207,662	Accumulated depreciation 1,041,088 53,146 7,366 1,101,600	Accumulated impairment - - - -	Total 1,053,349 46,313 6,400
Buildings Transportation equipment Miscellaneous equipment Total
				1,106,062

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2024	Cost $ 2,122,455 92,796 13,271 $ 2,228,522 Cost $ 2,100,589 13,200 94,801 14,070 $ 2,222,660	Accumulated depreciation 901,041 53,951 6,500 961,492 Accumulated depreciation 880,814 13,200 45,691 6,320 946,025	Accumulated impairment - - - - Accumulated impairment - - - - -	Total 1,221,414 38,845 6,771
Buildings Transportation equipment Miscellaneous equipment Total June 30, 2024
				1,267,030
				Total 1,219,775 - 49,110 7,750
Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Total
				1,276,635

Change of cost

Buildings Transportation equipment Miscellaneous equipment Total Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Total	January 1, 2025 $ 2,122,455 92,796 13,271 $ 2,228,522 January 1, 2024 $ 2,026,012 26,178 80,397 11,484 $ 2,144,071	Increase 57,685 21,656 1,138 80,479 Increase 175,763 - 19,084 2,972 197,819	Decrease 49,942 14,081 643 64,666 Decrease 119,021 12,978 4,954 386 137,339	Foreign Exchange (35,761) (912) - (36,673) Foreign Exchange 17,835 - 274 - 18,109	June 30, 2025 2,094,437 99,459 13,766
					2,207,662
					June 30, 2024 2,100,589 13,200 94,801 14,070
					2,222,660

Change of depreciation

Buildings Transportation equipment Miscellaneous equipment Total Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Total	January 1, 2025 $ 901,041 53,951 6,500 $ 961,492 January 1, 2024 $ 791,158 26,174 37,072 5,218 $ 859,622	Increase 203,089 13,746 1,509 218,344 Increase 203,560 3 13,449 1,488 218,500	Decrease 49,222 14,097 643 63,962 Decrease 117,502 12,977 4,954 386 135,819	Foreign Exchange (13,820) (454) - (14,274) Foreign Exchange 3,598 - 124 - 3,722	June 30, 2025 1,041,088 53,146 7,366
					1,101,600
					June 30, 2024 880,814 13,200 45,691 6,320
					946,025

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(m) Other assets, net

Office supplies Prepayments Operating guarantee deposits and settlement fund Guarantee deposits paid Deferred assets Temporary payments and suspense accounts Proceeds of settlement and margin trading Other assets Total	June 30, 2025 $ 29,999 4,180,600 34,417 5,824,257 292 - 928 196,682 $ 10,267,175	December 31, 2024 29,855 5,143,289 32,866 2,819,429 237 3,877,085 100,889 176,431 12,180,081	June 30, 2024
			29,602 7,110,036 32,866 2,245,691 299 3,598,355 4,032 176,431
			13,197,312

(n) Deposits from the Central Bank and banks

Deposits from the Central Bank Due from the Central Bank Deposits from banks Call loans from banks Overdrafts on banks Deposits transferred from Chunghwa Post Co., Ltd. Total	June 30, 2025 $ 196,470 14,268,800 84,318 39,059,889 424,591 190,099,335 $ 244,133,403	December 31, 2024 171,214 16,064,650 328,917 36,436,700 596,856 187,099,335 240,697,672	June 30, 2024
			194,979 15,959,300 323,570 32,085,153 537,622 92,099,335
			141,199,959

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) Due to the Central Bank and banks

Agricultural Bank of Taiwan Hua Nan Commercial Bank, Ltd Mega International Commercial Bank First Commercial Bank Taiwan Cooperative Bank Sunny Commercial Bank (OBU) Mega International Commercial Bank Chang Hwa Bank (Kunshan) Bank SinoPac (Shanghai) Taiwan Cooperative Bank (Suzhou) Total Unused credit lines			June 30, 2025
	Currency TWD TWD TWD TWD TWD USD USD CNY CNY CNY	Interest Rate 2.00% 2.046%~2.048% 1.95% 1.875% 1.875% 5.33%~5.63% 6.70% 3.55%~3.65% 3.65% 3.75%~4.00%	Maturity Date 2025.07.10 2025.07.22~2025.11.20 2025.08.11~2025.11.26 2025.08.21~2025.11.29 2025.12.31 2025.07.08 2026.03.28 2026.04.29~2026.05.23 2026.02.18 2026.09.28~2027.03.21	Original Amount NTD Amount 400,000 $ 400,000 90,000 90,000 300,000 300,000 60,000 60,000 200,000 200,000 15,000 436,800 500 14,560 24,000 97,584 10,000 40,660 12,400 50,418 $ 1,690,022 $ 1,750,608

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Agricultural Bank of Taiwan Mega International Commercial Bank First Commercial Bank Sunny Commercial Bank (OBU) First Commercial Bank (Shanghai) Bank SinoPac (Shanghai) Taiwan cooperative Bank (Suzhou) Total Unused credit lines			December 31, 2024
	Currency TWD TWD TWD USD CNY CNY CNY	Interest Rate 1.75%~1.95% 1.75%~1.95% 1.875% 5.50%~5.80% 3.75% 3.65% 3.75%	Maturity Date 2025.09.27 2025.06.16 2025.03.09~2025.05.15 2025.07.08 2025.05.23 2025.03.15 2025.05.16	Original Amount NTD Amount 400,000 $ 400,000 240,000 240,000 200,000 200,000 16,100 527,839 4,375 19,618 9,500 42,598 3,000 13,452 $ 1,443,506 $ 2,187,905

Agricultural Bank of Taiwan Hua Nan Commercial Bank, Ltd Mega International Commercial Bank First Commercial Bank Sunny Commerical Bank (OBU) Bank of Panshin Total Unused credit lines			June 30, 2024
	Currency TWD TWD TWD TWD USD USD	Interest Rate 1.85% 1.99% 1.88%~1.89% 1.875%~1.950% 6.32%~6.62% 7.00%	Maturity Date 2024.10.13 2025.01.02 2024.09.09~2024.09.15 2024.11.30~2025.01.05 2024.07.05 2024.11.14	Original Amount NTD Amount 385,000 $ 385,000 60,000 60,000 275,000 275,000 160,000 160,000 20,000 651,400 500 16,285 $ 1,547,685 $ 1,590,983

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Financial liabilities at fair value through profit or loss

Financial liabilities designated at fair value through profit or loss`：` Financial debentures Financial liabilities held for trading`：` Derivative instruments not used for hedging Foreign exchange forward contracts Currency swap contracts Foreign currency option-sell Interest rate contract Total	June 30, 2025 $ 8,565,654 6,359 224,695 3,624 200,334 $ 9,000,666	December 31, 2024 9,927,272 18,220 256,384 11,360 - 10,213,236	June 30, 2024
			9,566,928 14,272 206,002 9,271 - 9,796,473

Please refer to 6(t) for the information of financial liabilities designated at fair value through profit and loss.

Please refer to 6(c) for the nominal amount of unsettled financial derivatives instrument contracts of June 30, 2025, December 31 and June 30, 2024.

(q) Notes and bonds issued under repurchase agreement

Assets	June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025
	Par value	Selling Price (Recognized in securities sold under repurchase agreements)	Designated repurchase amount	Designated repurchase date
Financial assets at fair value through other comprehensive income	$ 1,286,785	1,241,536	1,246,060	2025/7/2~2026/1/13

Assets	December 31, 2024
	Par value	Selling Price (Recognized in securities sold under repurchase agreements)	Designated repurchase amount	Designated repurchase date
Financial assets at fair value through other comprehensive income	$ 2,121,000	2,011,108	2,022,769	2025/1/2~2025/7/10

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Assets	June 30, 2024	June 30, 2024	June 30, 2024	June 30, 2024
	Par value	Selling Price (Recognized in securities sold under repurchase agreements)	Designated repurchase amount	Designated repurchase date
Financial assets at fair value through other comprehensive income	$ 3,056,748	2,822,816	2,840,293	2024/7/1~2025/4/29

(r) Payables

Accrued interest Accounts payable Acceptances Accrued expenses Collection payable Deposits received from securities borrowers Guaranteed price deposits received from securities borrowers Spot exchange payable, foreign currencies Other payables Prices payable of securities sold for customers Dividends payable Settlement payable Other Total (s) Deposits and remittances Savings deposits Time deposits Demand deposits Checking account deposits Remittances Total	June 30, 2025 $ 8,346,384 1,983,077 894,963 4,014,688 7,317,442 65,155 63,842 46,345 890,775 391,880 1,836,500 - 4,157 $ 25,855,208 June 30, 2025 $ 793,588,592 588,085,366 505,150,411 20,761,471 295,598 $ 1,907,881,438	December 31, 2024 8,656,132 2,619,710 1,261,717 4,233,683 1,699,210 57,578 74,701 27,110 965,374 198,804 2,908 291,302 4,273 20,092,502 December 31, 2024 794,086,046 604,049,106 473,683,397 31,275,032 748,271 1,903,841,852	June 30, 2024
			7,857,371 11,137,882 1,126,816 3,374,660 962,246 23,757 35,728 20,077 776,727 380,564 1,647,289 122,714 4,672
			27,470,503
			June 30, 2024
			780,762,330 637,822,049 448,582,243 26,157,725 352,515
			1,893,676,862

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(t) Bank notes payable

Bonds		T	erms of Transactions		Bond I	ssued
	Issue date	Maturity date	Interest Rate & repayment	Type		Amount
2015-2B 2017-1B 2017-1C 2017-2 2018-2 2019-1A 2019-1B 2020-1 2020-2 2021-1 2023-1 2023-2	08/31/2015 03/28/2017 03/28/2017 05/23/2017 08/20/2018 03/21/2019 03/21/2019 03/25/2020 08/13/2020 11/17/2021 06/20/2023 09/27/2023	08/31/2025 03/28/2025 03/28/2027 05/23/2027 08/20/2028 03/21/2026 03/21/2029 03/25/2030 None None 06/20/2030 09/27/2025	The debentures bear an annual interest rate of 2.10%. Simple interest is accrued and paid annually. The principal will be repaid in full at maturity. The debentures bear an annual interest rate of 1.60%. Simple interest is accrued and paid annually. The principal will be repaid in full at maturity. The debentures bear an annual interest rate of 1.85%. Simple interest is accrued and paid annually. The principal will be repaid in full at maturity. The debentures bear an annual interest rate of 1.85%. Simple interest is accrued and paid annually. The principal will be repaid in full at maturity. The debentures bear an annual interest rate of 1.45%. Simple interest is accrued and paid annually. The principal will be repaid in full at maturity. The debentures bear an annual interest rate of 1.20%. Simple interest is accrued and paid annually. The principal will be repaid in full at maturity. The debentures bear an annual interest rate of 1.30%. Simple interest is accrued and paid annually. The principal will be repaid in full at maturity. The debentures bear an annual interest rate of 0.80%. Simple interest is accrued and paid annually. The principal will be repaid in full at maturity. The debentures bear an annual interest rate of 1.62%. Simple interest is accrued and paid annually. After calculating the early redeemable bond is in line with the capital adequacy ratio under the consent of the competent authority, the debentures are redeemable per face value plus accrued interest at the interest payment date after five years and a month from the issue date. The debentures bear an annual interest rate of 1.60%. Simple interest is accrued and paid annually. After calculating the early redeemable bond is in line with the capital adequacy ratio under the consent of the competent authority, the debentures are redeemable per face value plus accrued interest at the interest payment date after five years and a month from the issue date. The debentures bear an annual interest rate of 2.10%. Simple interest is accrued and paid annually. The principal will be repaid in full at maturity. The debentures bear an annual interest rate of 1.47%. Simple interest is accrued and paid annually. The principal will be repaid in full at maturity.	Unsecured subordinated long-term financial debentures `〞` `〞` `〞` `〞` `〞` `〞` `〞` Perpetual non- accumulated subordinated financial debentures `〞` Unsecured subordinated long-term financial debentures Unsecured senior financial debentures	June 30, 2025 $ 300,000 - 3,360,000 1,300,000 5,450,000 1,000,000 4,800,000 10,000,000 10,000,000 8,000,000 8,000,000 1,000,000 $ 53,210,000	December 31, 2024 300,000 250,000 3,360,000 1,300,000 5,450,000 1,000,000 4,800,000 10,000,000 10,000,000 8,000,000 8,000,000 1,000,000 53,460,000	June 30, 2024
							300,000 250,000 3,360,000 1,300,000 5,450,000 1,000,000 4,800,000 10,000,000 10,000,000 8,000,000 8,000,000 1,000,000
							53,460,000

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Bank and subsidiaries issued $120,000 thousand and $180,000 thousand dollar-denominated debentures with call option that can be executed on strike price after five years from the issued date. Without executing call options during the periods of debentures, the principal will be repaid in full at maturity. In order to avoid interest risk, the Bank and subsidiaries buys interest rate swap contracts that are classified as financial assets at fair value through profit or loss. To eliminate the measurement or recognition inconsistency between IRSs and debentures, the Bank and subsidiaries classified the debentures into financial liabilities at fair value through profit or loss. In addition, the Bank and subsidiaries considers that the designated economic relationship is evaluated by the SLMM model method, if the amount of changes in the fair value of the corporate bonds attributable to changes in credit risk is listed in other comprehensive gains and losses, it will trigger or aggravate the accounting ratio of gains and losses. Therefore, the amount is reported in the profit and loss. The debentures are as follows:

Bonds		T	erms of Transactions		Bond Is	sued	June 30, 2024
	Issue date	Maturity date	Interest Rate & repayment	Type		Amount
2017-3 2018-3	10/27/2017 09/27/2018	10/27/2047 09/27/2048	The zero-coupon debentures with call options can be executed on strike price after five years from the issued date. Without executing call options during the periods of debentures, the principal will be repaid in full at maturity. The zero-coupon debentures with call options can be executed on strike price after five years from the issued date. Without executing call options during the periods of debentures, the principal will be repaid in full at maturity.	Unsecured dollar- denominated senior financial debentures `〞` Valuation adjustment	June 30, 2025 $ 3,494,400 5,241,600 (170,346) $ 8,565,654	December 31, 2024 3,934,200 5,901,300 91,772 9,927,272
							3,908,400 5,862,600 (204,072)
							9,566,928

The increase (decrease) in fair value of the financial liabilities that are attributable to changes in credit risk are as follows:

Fair value of corporate bonds Fair value increase not attributable to changes in market conditions that give rise to market risk Difference between the carrying value and the amount payable at the end of the contract term	June 30, 2025 $ 8,565,654 669,495 (170,346)	December 31, 2024 June 30, 2024 9,927,272 9,566,928 695,984 593,618 91,772 (204,072)

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(u) Other financial liabilities

Cumulative earnings on appropriated loans fund	June 30, 2025 $ 1,930,742	December 31, 2024 2,528,132	June 30, 2024
			2,095,988

Cumulative earnings on appropriated loan fund is the project contract signed by National Development Fund, Executive Yuan, Small and Medium Enterprise Administration, Ministry of Economic Affairs, and the Bank. The Bank appropriates the fund to the companies which meet the conditions for loans. The fund is classified as principal account, interest yielding account, loaned account and un-loaned account. These accounts are used for transferring accounts and paying the deposit interests for each project contract.

(v) Provisions

Provision for guarantee liabilities Provision for loan commitments Indeterminate indemnity provisions Provision for employee benefits Total	June 30, 2025 $ 392,830 46,302 76,537 1,911,496 $ 2,427,165	December 31, 2024 347,009 64,682 76,151 1,896,579 2,384,421	June 30, 2024
			319,818 65,555 75,760 2,159,766
			2,620,899

Change of provision

Provision for guarantee liabilities Provision for loan commitments Indeterminate indemnity provisions Provision for employee benefits Total Provision for guarantee liabilities Provision for loan commitments Indeterminate indemnity provisions Provision for employee benefits Total	January 1, 2025 $ 347,009 64,682 76,151 1,896,579 $ 2,384,421 January 1, 2024 $ 284,412 92,689 75,372 2,450,902 $ 2,903,375	Increase 46,400 - 386 87,828 134,614 Increase 35,217 - 388 95,455 131,060	Decrease - 16,805 - 57,321 74,126 Decrease - 28,744 - 373,187 401,931	Use - - - 15,590 15,590 Use - - - 13,404 13,404	Foreign exchange (579) (1,575) - - (2,154) Foreign exchange 189 1,610 - - 1,799	June 30, 2025
						392,830 46,302 76,537 1,911,496
						2,427,165
						June 30, 2024
						319,818 65,555 75,760 2,159,766
						2,620,899

Please refer to Note 6(aa) for the information with regard to provision for employee benefits shown above.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(w) Lease liabilities

Lease liabilities as follows:

Lease liabilities as follows:
Less than one year More than one year	June 30, 2025 $ 404,348 $ 738,999	December 31, 2024 431,412 875,883	June 30, 2024
			413,678
			897,177

The amounts recognized in profit or loss were as follows:

For the three months ended June 30, 2025 2024 $ 4,002 4,425 $ 3,168 4,462 $ 4,732 4,466	For the six months ended June 30,	For the six months ended June 30,
2025 $ 4,002 $ 3,168 $ 4,732	2025 8,261 8,734 9,198	2024
		8,918
		9,847
		8,927

The amounts recognized in the statement of cash flows were as follows ：

Total cash outflow for leases	For the six months ended June 30,	For the six months ended June 30,
	2025 $ 245,801	2024
		246,325

(i) Real estate leases

The Bank and subsidiaries leased buildings for its office space. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some leases provide for additional rent payments that are based on changes in local price indices. Some also require the Bank and subsidiaries to make payments that relate to the property taxes levied on the lessor and insurance payments made by the lessor; these amounts are generally determined monthly.

(ii) Other leases

The Bank and subsidiaries leased machinery and transportation equipment with lease terms of one to four years. In some cases, the Bank and subsidiaries has options to purchase the assets at the end of the contract term; in other cases, it guarantees the residual value of the leased assets at the end of the contract term.

The Bank and subsidiaries has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short term.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(x) Other liabilities

Advance interest receipts Unearned revenue Other advance receipts Guarantee deposits received Temporary receipts and suspense accounts Others Total	June 30, 2025 $ 3,923 399,109 96,481 881,779 15,437,350 41,812 $ 16,860,454	December 31, 2024 4,193 457,394 71,964 2,968,079 - 42,332 3,543,962	June 30, 2024
			5,001 443,810 55,266 2,352,566 - 40,263
			2,896,906

(y) Equity

(i) Common stock

As of June 30, 2025, December 31 and June 30, 2024, the Bank’s authorized capital were all $100,000,000, and the paid-in capital for common shares of the Bank were $91,679,828, $91,679,828 and $82,224,061, respectively, with a par value of $10 per share. The outstanding shares were 9,167,983, 9,167,983 and 8,222,406 thousand shares, respectively.

Pursuant to the resolution approved by the regular stockholders’ meeting of the Bank on June 20, 2025, the Bank increased its capital from the retained earnings by $5,500,790 and issued 550,079 thousand shares. The capital increase has been approved by the Financial Supervisory Commission and came into effect on July 14, 2025. The base date of the capital increase was August 11, 2025.

Pursuant to the resolution approved by the regular stockholders’ meeting of the Bank on June 21, 2024, the Bank increased its capital from the retained earnings by $9,455,767 and issued 945,577 thousand shares. The capital increase has been approved by the Financial Supervisory Commission and came into effect on July 15, 2024. The base date of the capital increase was August 16, 2024. The Bank has completed the alteration of the registered capital amount on September 5, 2024.

(ii) Capital surplus

Sources and statement of the Bank's capital surplus were as follows:

Additional paid-in capital Donation from shareholders Total	June 30, 2025 $ 815,900 229 $ 816,129	December 31, 2024 815,900 229 816,129	June 30, 2024
			815,900 -
			815,900

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends based on the shareholder's initial number of shares. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

(iii) Earnings distribution and dividend policy

Under the Bank’s Articles of Incorporation, earnings are used initially to pay for income taxes and restore cumulative losses, and 30% of the remaining earnings is set aside as legal reserve. Special reserve is appropriated from or reversed to earnings per other regulations. The accumulated retained earnings from prior periods are added back as part of the distributable dividends, 30 to 100% of the aggregated retained earnings are available to be distributed and will be resolved by the annual stockholders’ meeting according to the proposal submitted by the Board of Directors.

In order to continuously expand scale and increase profitability, the Bank based on the future capital budget plan, adopts residual dividend policy and primarily distributes stock dividend to ensure the capital is sufficient. When there is surplus of capital, the remaining capital can be distributed by cash dividend. Cash dividend shall not be lower than 10% of the total dividend distributed. If the cash dividend distributed per share is lower than NTD$ 0.1, except for otherwise resolved by the shareholder’s meeting, it is not distributed. If there is any situation conforms to that is regulated in article 44 item 1 of the Banking Act of The Republic of China, the Bank is not allowed to distribute earnings by cash or purchase shares outstanding. The maximum cash earning distribution is not allowed to be over 15% of the total paid in capital unless the legal reserve reaches the total paid-in capital.

In compliance with the Company Act, if the Company incurs no loss, under the consent of the shareholder’ s meeting, the Company is allowed to distribute new shares or cash dividends from legal reserve to the extent that the legal reserve issued is the surplus exceeding 25% of the paid in capital.

Under the Ruling No. 1010012865 issued on April 6, 2012 by the FSC, special reserve is appropriated from retained earnings based on the equivalent amounts of the contra accounts in equity. This special reserve may not be distributed as dividends to stockholders until the balances of these contra accounts in equity are reversed.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Bank resolved the earning distribution for the earnings of 2024 and 2023 in the shareholders' meeting on June 20, 2025 and June 21, 2024, respectively. The dividends distributed were as follows:

Dividends to common shareholders Stock dividends Cash dividends Total	2024 Distribution rate (NT dollar) Amount $ 0.60 5,500,790 0.20 1,833,597 $ 7,334,387	2023	2023
		Distribution rate (NT dollar) 1.15 0.20	Amount
			9,455,767 1,644,481
			11,100,248

(iv) Other equity interest

January 1, 2025 Share of other comprehensive income of associates and joint ventures accounted for using equity method Investment in financial assets measured at fair value through other comprehensive income -Unrealized amount -Realized amount Foreign currency translation difference`－`Exchange difference Disposal of investments in equity instruments measured at fair value through other comprehensive income June 30, 2025 January 1, 2024 Share of other comprehensive income of associates and joint ventures accounted for using equity method Investment in financial assets measured at fair value through other comprehensive income -Unrealized amount -Realized amount Foreign currency translation difference`－`Exchange difference Disposal of investments in equity instruments measured at fair value through other comprehensive income June 30, 2024	Unrealized gains from financial assets measured at fair value through other comprehensive income $ 137,384 173 1,953,455 (525) - (77,234) $ 2,013,253 $ 1,613,752 (146) 66,043 (114) - (116,676) $ 1,562,859	Exchange differences on translation of foreign financial statements 200,058 (79,645) - - (1,833,963) - (1,713,550) (629,158) 24,191 - - 822,652 - 217,685	Total 337,442 (79,472) 1,953,455 (525) (1,833,963) (77,234) 299,703 984,594 24,045 66,043 (114) 822,652 (116,676) 1,780,544

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(z) Income taxes

(i) The income tax expenses were as follows:

For the three months ended June 30, 2025 2024 Current tax expense Current period $ 649,607 874,015 Adjustment for prior period 69,914 (29,929) Additional surtax on undistributed retained earnings 109,401 42,179 Income Basic Tax - 1,229 828,922 887,494 Deferred tax expense Origination and reversal of temporary different (147,631) 94,548 Changes in unrecognized deductible temporary different 4,401 (3,256) Income tax expenses $ 685,692 978,786	For the six months ended June 30,	For the six months ended June 30,
	2025 1,412,603 69,914 109,401 - 1,591,918 (88,930) 4,396 1,507,384	2024
		1,507,536 (67,725) 42,179 1,229
		1,483,219 153,757 (2,990)
		1,633,986

(ii) The income tax expenses (income) recognized under other comprehensive income were as follows:

For the three months ended June 30, 2025 2024 $ (527,545) 80,169 4,969 499 $ (522,576) 80,668	For the six months ended June 30,	For the six months ended June 30,
2025 $ (527,545) 4,969 $ (522,576)	2025 (478,402) 12,010 (466,392)	2024
		211,711 2,244
		213,955

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Uncertainty over income tax treatments

For tax returns that have not yet been assessed, the Bank and subsidiaries has assessed relevant factors, including relevant IFRIC interpretations and historical experience, and believe that sufficient income tax liabilities have been estimated.

(iv) The Bank's income tax have been approved by the tax authorities to the year 2023. However, for the years 2020 and 2022 are still pending approval. Due to differing interpretations between the Bank and the tax authority regarding the 2023 corporate income tax, the Bank disagreed with the examination results and requested a reexamination.
(v) The income tax returns of the subsidiaries TBB Venture Capital Co., Ltd., TBB Consulting Co., Ltd., and TBB International Leasing Co., Ltd. have been assessed until 2023 by the Tax Authority.
(vi) Global minimum top-up tax

The Bank and subsidiaries has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.

Some of the overseas branches have enacted new legislation to implement the global minimum top-up tax, with Australia effective from January 1, 2024, Japan effective from April 1, 2024 and Hong Kong effective from January 1, 2025. Preliminary assessments indicate that various tax jurisdictions can pass the global minimum top-up tax safe harbor test, and it is expecetd that don't need to be subject to the top-up tax in relation to its operations. However, as of June 30, 2025, the Bank and subsidiaries has not yet obtained sufficient information to determine the quantitative impact and the taxpayer status brought about by Global minimum top-up tax.

(aa) Provision for employee benefit

As of June 30, 2025, December 31 and June 30, 2024, the balance of provision for employee benefit of the Bank and subsidiaries was as follows:

Defined benefit plan Employee deposits with favorable rate	June 30, 2025 $ 818,159 1,093,337 $ 1,911,496	December 31, 2024 823,657 1,072,922 1,896,579	June 30, 2024
			1,015,964 1,143,802
			2,159,766

(i) Defined benefit plan

In 2024, there is apparently no evidence of any material market volatility, material curtailment, reimbursement and settlement or other material one-time events. Therefore, the pension cost for the interim periods are assessed and discovered at the actuarial costs that were determined on December 31, 2024 and 2023 by the Bank and subsidiaries.

The Bank and subsidiaries recognized the expenses amounting to $33,703, $37,060, $67,408 and $74,119 for the three months and six months ended June 30, 2025 and 2024, respectively.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Defined contribution plan

The pension costs incurred from the contributions to the Bureau of the Labor Insurance, oversea branches, and local authorities responsible for the Bank’s subsidiaries amounted to $58,567, $53,513, $112,330 and $102,799 for the three months and six months ended June 30, 2025 and 2024, respectively.

(iii) Employee deposit with favorable rate

In 2024, there is apparently no evidence of any material market volatility, material curtailment, reimbursement and settlement or other material one-time events. Therefore, the interest cost for the interim periods are assessed and disclosed at the actuarial costs that were determined on December 31, 2024 and 2023 by the Bank and subsidiaries.

The Bank and subsidiaries recognized expenses amounting to $66,312, $65,967, $132,013 and $131,607 for the three months and six months ended June 30, 2025 and 2024, respectively.

(ab) Earnings per share

For the three months ended June 30, 2025 2024 $ 3,487,843 3,399,606 9,718,062 9,718,062 $ 0.36 0.35 14,616 13,181 9,732,678 9,731,243 $ 0.36 0.35	For the six months ended June 30,	For the six months ended June 30,
2025 $ 3,487,843 9,718,062 $ 0.36 14,616 9,732,678 $ 0.36	2025 6,423,218 9,718,062 0.66 29,234 9,747,296 0.66	2024
		6,244,079
		9,718,062
		0.64
		26,361
		9,744,423
		0.64

Note 1: Pursuant to the resolution approved by the regular stockholders' meeting of the Bank on June 20, 2025, the Bank increased its capital from the retained earnings and the base date of the capital increase was August 11, 2025. This allotment occurred before the approval and release of the financial statements, and a retroactive adjustment was applied to earnings per share for the periods from January 1 to June 30, 2025 and 2024.

Note 2: The shares were calculated based on the stock price on the balance sheet date.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ac) Employees and directors' remuneration

On June 20, 2025, the Bank resolved at the shareholders’ meeting to amend its Articles of Incorporation. According to the amended Articles, if the Bank has profit in a given fiscal year, the profit shall be used to offset against any accumulated losses incurred by the Bank. The remainder, if any, 1%-6% shall be allocated as employee remuneration (including a minimum of 20% to those base-level employees) and a maximum of 0.6% as remunerations for directors and supervisors. Prior to the amendment, the Articles of Incorporation stipulated that, if the Bankhas profit in a given fiscal year, the profit shall be used to offset against any accumulated losses incurred by the Bank. The remainder, if any, 1%-6% should be allocated as employee remuneration and no more than 0.6% as remunerations for directors and supervisors.

For the three months and six months ended June 30, 2025 and 2024, the estimated employee remuneration were $211,666, $202,971, $423,332 and $405,941, and the estimated directors' remuneration were $21,166, $20,297, $42,333 and $40,594, the estimates are based on pre-tax net profit for the period, before deducting employees and directors' remuneration, multiplied by the elaboration of the Bank's Articles of Association of employees and the directors remuneration ratio, and recognized as operating cost. If the board’ s meeting decides to release stock dividends as employees' bonuses, the total number of employees bonus stocks to be issued shall be determined by the common stock closing price of the day before the meeting date.

For the years ended December 31, 2024 and 2023, the employees' remuneration was accrued at $901,323 and $723,563 and the directors' remuneration was accrued at $90,132 and $79,237, respectively.

There is no difference with actual distribution for 2024 and 2023 remuneration. The information is available at the Market Observation Post System website.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ad) Net interest revenue

For the three months ended June 30, 2025 2024 $ 3,734,544 3,808,936 7,630,220 7,126,785 990 1,471 6,965 7,598 12,131 7,066 564,087 528,141 156,924 155,276 228,416 341,979 1,390,682 1,486,597 8,754 8,534 51,251 48,363 67,510 29,639 52,728 70,328 122,572 118,267 14,027,774 13,738,980 8,242,111 8,121,954 116 1,428 558,695 630,066 199,110 199,737 35,982 14,120 23,961 41,429 9,059,975 9,008,734 $ 4,967,799 4,730,246	For the six months ended June 30,	For the six months ended June 30,
2025 $ 3,734,544 7,630,220 990 6,965 12,131 564,087 156,924 228,416 1,390,682 8,754 51,251 67,510 52,728 122,572 14,027,774 8,242,111 116 558,695 199,110 35,982 23,961 9,059,975 $ 4,967,799	2025 7,541,549 15,148,563 2,081 15,807 19,761 1,025,810 317,280 538,032 2,843,260 17,470 124,074 134,088 117,908 239,855 28,085,538 16,657,654 231 1,110,192 396,977 49,840 58,137 18,273,031 9,812,507	2024
		7,400,204 13,856,966 3,024 13,860 13,374 1,044,947 280,451 779,329 2,937,025 17,160 88,690 64,035 144,619 233,401
		26,877,085
		15,920,163 5,298 1,205,405 400,702 20,285 78,459
		17,630,312
		9,246,773

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ae) Net service fee revenue

For the three months ended June 30, 2025 2024 $ 16,127 16,557 12,527 9,981 2,063 2,101 1,455 1,667 940 640 671 652 184,030 164,531 116,220 70,157 5,231 6,553 31,283 29,854 38,389 36,422 909,449 800,203 53,080 46,790 19,855 20,869 703 902 474,618 432,310 56,291 54,896 1,922,932 1,695,085 8,153 6,982 51,905 51,016 956 894 451 320 34,135 30,999 1,961 1,864 2,102 1,235 14,191 14,367 481 561 6,017 5,677 120,352 113,915 $ 1,802,580 1,581,170	For the six months ended June 30,	For the six months ended June 30,
2025 $ 16,127 12,527 2,063 1,455 940 671 184,030 116,220 5,231 31,283 38,389 909,449 53,080 19,855 703 474,618 56,291 1,922,932 8,153 51,905 956 451 34,135 1,961 2,102 14,191 481 6,017 120,352 $ 1,802,580	2025 31,835 23,565 4,244 2,861 1,490 1,380 350,139 213,156 10,379 64,000 84,358 2,021,273 108,933 39,323 1,198 913,290 107,112 3,978,536 15,945 108,056 1,825 851 68,643 3,684 4,061 31,309 952 13,047 248,373 3,730,163	2024
		32,776 18,790 4,364 2,994 1,215 1,236 326,536 143,434 12,665 60,016 86,789 1,749,243 95,451 39,639 1,531 1,282,753 152,902
		4,012,334
		14,526 103,839 1,890 704 61,594 4,012 2,522 29,947 3,702 12,011
		234,747
		3,777,587

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(af) Gain (loss) on financial assets or liabilities measured at fair value through profit or loss

For the three months ended June 30, 2025 2024 $ (63,980) (87,799) (52,409) 43,402 8,353 66,005 - (239) (5,098) (4,698) (15,286) 17,768 995,500 (563,559) 867,080 (529,120) (1,092) 19,908 (2,912) (694) 421,319 1,671,688 417,315 1,690,902 1,464 7,453 377,229 284,160 $ 1,663,088 1,453,395	For the six months ended June 30,	For the six months ended June 30,
2025 $ (63,980) (52,409) 8,353 - (5,098) (15,286) 995,500 867,080 (1,092) (2,912) 421,319 417,315 1,464 377,229 $ 1,663,088	2025 8,697 (56,095) 16,992 - (3,007) (21,371) 370,110 315,326 (14,237) (5,255) 1,991,280 1,971,788 1,871 735,358 3,024,343	2024
		(105,110) 28,336 31,707 10,606 (9,965) 6,124 (626,670)
		(664,972)
		66,488 (1,535) 2,975,480
		3,040,433
		7,547 541,803
		2,924,811

(ag) Realized gain on financial assets at fair value through other comprehensive income

For the three months ended June 30, 2025 2024 $ 339 - 131 52 696,056 375,700 $ 696,526 375,752	For the six months ended June 30,	For the six months ended June 30,
2025 $ 339 131 696,056 $ 696,526	2025 339 186 843,246 843,771	2024
		- 114 453,850
		453,964

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ah) Impairment (loss) reversal of impairment loss on assets

Investment in debt instrument measured at fair value through other comprehensive income Investment in debt instrument measured at amortized cost Total	For the three months ended June 30, 2025 2024 $ 4,052 5,861 (8,978) (6,563) $ (4,926) (702)	For the six months ended June 30, 2025 2024 10,913 3,275 (12,499) (8,153) (1,586) (4,878)
	2025 $ 4,052 (8,978) $ (4,926)	2025 10,913 (12,499) (1,586)

(ai) Net other revenue other than interest income

Rental revenue of operating assets Rental expense of operating assets Loss on disposal and retirement of property and equipment Loss of account error Gold deposit book Other operating expense Other miscellaneous income Total	For the three months ended June 30, 2025 2024 $ 2,828 2,464 (465) (396) (1,182) (241) (5) (25) 3,946 1,230 (26,991) (35,459) 56,259 16,774 $ 34,390 (15,653)	For the six months ended June 30, 2025 2024 5,684 4,985 (465) (396) (2,835) (1,537) (24) (32) 5,671 1,580 (36,867) (42,288) 120,884 141,425 92,048 103,737
	2025 $ 2,828 (465) (1,182) (5) 3,946 (26,991) 56,259 $ 34,390	2025 5,684 (465) (2,835) (24) 5,671 (36,867) 120,884 92,048

(aj) Bad debts expenses, commitment and guarantee liability provision

Discounted and loans Call loans to banks Receivables and other financial assets Subtotal Provisions for guarantee liabilities Provisions for loan commitments Total	For the three months ended June 30, 2025 2024 $ 726,252 (6,802) (769) 614 8,485 8,965 733,968 2,777 36,540 33,690 (15,627) (24,130) $ 754,881 12,337	For the six months ended June 30, 2025 2024 1,502,902 1,205,678 2,255 (415) 8,418 3,553 1,513,575 1,208,816 46,400 35,217 (16,805) (28,744) 1,543,170 1,215,289
	2025 $ 726,252 (769) 8,485 733,968 36,540 (15,627) $ 754,881	2025 1,502,902 2,255 8,418 1,513,575 46,400 (16,805) 1,543,170

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ak) Employee benefits expenses

Employee benefits expenses
Salary expense Labor and health insurance Pension expense Directors' remuneration Other employee benefits Total	For the three months ended June 30, 2025 2024 $ 2,097,957 1,998,425 164,757 150,916 92,058 90,361 20,794 24,269 175,736 171,227 $ 2,551,302 2,435,198	For the six months ended June 30,
	2025 $ 2,097,957 164,757 92,058 20,794 175,736 $ 2,551,302	2025 4,025,829 311,339 179,385 45,022 366,842 4,928,417	2024
			3,914,213 290,544 176,494 48,513 360,297
			4,790,061

(al) Depreciation and amortization expense

For the three months ended June 30, 2025 2024 $ 123,697 149,356 108,766 109,516 114,142 90,812 12 15 $ 346,617 349,699	For the six months ended June 30,	For the six months ended June 30,
2025 $ 123,697 108,766 114,142 12 $ 346,617	2025 249,791 218,344 223,414 36 691,585	2024
		294,597 218,500 174,954 29
		688,080

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(am) Other general and administrative expense

For the three months ended June 30, 2025 2024 $ 130 - 22,172 27,211 65,900 65,191 11,167 10,045 128,653 64,887 62,558 67,372 100,745 99,869 90,559 55,347 49,239 24,999 7,900 8,928 621,283 570,907 155,850 160,357 14,176 12,662 14,517 15,645 15,181 18,777 $ 1,360,030 1,202,197	For the six months ended June 30,	For the six months ended June 30,
2025 $ 130 22,172 65,900 11,167 128,653 62,558 100,745 90,559 49,239 7,900 621,283 155,850 14,176 14,517 15,181 $ 1,360,030	2025 166 42,512 125,567 17,833 244,640 153,934 202,033 147,531 92,840 17,932 1,232,883 316,901 27,566 32,017 27,921 2,682,276	2024
		3 47,609 125,213 17,268 144,651 153,659 199,541 105,932 50,395 18,774 1,137,246 320,349 24,663 32,815 38,772
		2,416,890

(an) Financial Instruments

(i) Fair value information

1) General description

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The financial instruments are record as fair value when original recognizing, usually refer to the transaction price in many circumstances. Except some amortized cost financial instruments, the financial instruments are measured in fair value. A quoted market price in an active market provides the most reliable evidence of fair value. If financial instruments are without active market, the Bank and subsidiaries adopted the value technique, refer to Bloomberg, Reuters or the price at which the asset could be bought or sold in a current transaction between willing parties.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) The definition of fair value hierarchy

a) Level 1

The input of this level is quoted prices in active markets for identical financial instruments. The active market is a market in which transactions for the homogenous assets or liabilities take place with sufficient frequency and volume to provide pricing information. The stock of listed company and the beneficiary certificates, government bonds and the derivative financial instruments with public quote inactive market processed by the Bank and subsidiaries belong to Level 1.

b) Level 2

The input of this level is other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The investments with lower trade volume such as government bonds, corporate bonds, financial debentures, convertible corporate bonds and derivative instruments, including financial debentures the Bank and subsidiaries issued are belong to Level 2.

c) Level 3

The input is unobservable for the asset or liability in market or counterparty prices. Unobservable inputs like: Option pricing model using the historical volatility. Because the historical volatility cannot represent the future volatility expected value of whole market participants. The input parameter used to measure the fair value of this level is not based on data that can be obtained in the market but using a combination of complex market prices to estimate their values. The assets have been categorized as a Level 3, due to their fair market value cannot be directly calculated. The equity instruments with no active market which the Bank and subsidiaries invested are Level 3.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Based on fair value measurement
a) The fair value hierarchy of information

The financial instruments which are record as fair value measure on an ongoing basis, the fair value hierarchy of information were as follows:

Assets and Liabilities Instruments measured at fair value on a recurring basis Non-derivative financial assets and liabilities: Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss, mandatorily measure at fair value Security Investments Bond Investments Others Financial assets at fair value through other comprehensive income Security Investments Bond Investments Others Financial liabilities at fair value through profit or loss Financial liabilities designated at fair value through profit or loss Derivative financial assets and liabilities Assets: Financial assets at fair value through profit or loss Liabilities: Financial liabilities at fair value through profit or loss		June 30,	2025
	Total $ 1,358,309 200,000 88,571,024 33,240,584 163,761,162 685,464 8,565,654 $ 3,472,387 435,012	Level 1 821,651 - - 23,968,638 100,361,065 100,100 - 24,245 -	Level 2 Level 3 - 536,658 200,000 - 88,363,163 207,861 - 9,271,946 63,400,097 - 585,364 - 8,565,654 - 3,448,142 - 435,012 -

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Assets and Liabilities	December 31, 2024	December 31, 2024
	Level 1 794,532 - - 10,012,278 97,980,180 118,912 - 27,320 -	Level 2 Level 3 - 493,166 200,000 - 78,181,124 205,544 - 7,476,886 68,780,192 - 652,513 - 9,927,272 - 2,904,099 - 285,964 -
Instruments measured at fair value on a recurring basis
Non-derivative financial assets and liabilities:

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Assets and Liabilities Instruments measured at fair value on a recurring basis Non-derivative financial assets and liabilities: Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss, mandatorily measure at fair value Security Investments Bond Investments Others Financial assets at fair value through other comprehensive income Security Investments Bond Investments Other Financial liabilities at fair value through profit or loss Financial liabilities designated at fair value through profit or loss Derivative financial assets and liabilities Assets: Financial assets at fair value through profit or loss Liabilities: Financial liabilities at fair value through profit or loss		June 30,	2024
	Total $ 2,040,239 200,000 71,254,277 31,351,643 170,676,282 786,212 9,566,928 $ 2,640,564 229,545	Level 1 1,504,964 - 210,913 24,423,127 102,766,360 140,043 - 26,997 -	Level 2 Level 3 - 535,275 200,000 - 70,839,461 203,903 - 6,928,516 67,909,922 - 646,169 - 9,566,928 - 2,613,567 - 229,545 -

b) Valuation techniques used in estimating the fair values of financial instruments

If the financial instruments have quoted price in an active market, the quoted price is regarded as its fair value.

If the financial instruments of quoted price, which are from the Stock Exchange, Brokers, Pricing service agencies or Government institutions, are timely and frequently, and reflects the actual price, then the financial instruments have a quoted price in an active market. If the above conditions are not fulfilled, the market is inactive.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Except for the above financial instruments of quoted price in an active market, there is no quoted price in an active market for the financial asset, its fair value is estimated on the basis of the result of a valuation technique that refers to quoted prices considered the identical financial instrument with same characteristics and essential terms of transaction, Discounted-Cash-Flow model and other valuation techniques including the model using market information to be made of the calculation at the balance sheet date (e.g. Taipei Exchange reference yield curve, Reuters quoted the average commercial paper rate, the Taipei Financial industry call loan rate fixing TAIBOR).

The financial asset's fair value is estimated on the basis of the result of a valuation technique, the Bank and subsidiaries adopted that refers to quoted prices provided by financial institutions. Ask (bid) is used to evaluate the selling (buying) position by the Bank and subsidiaries if the quoted price include ask and bid price. If there is not a quoted price for the financial asset, transaction price close to the balance sheet date is the fair value.

Fair value of financial derivatives is the amount of cash to be paid or to be received by the Bank and subsidiaries, assuming that the contract will be terminated on the balance sheet date. The Bank and subsidiaries adopts mark-to-model prices which are usually adopted among the banking industry, such as Discounted-Cash-Flow model and Black-Scholes model. The Bank and subsidiaries adopts the price data from Reuters and Bloomberg to calculate the fair value of the holding position. The aforesaid price data is based upon the middle price and used consistently by the Bank. Furthermore, the fair value of the embedded financial derivatives is calculated based upon the quote from the counterparty, and separately calculated in accordance with the contracts.

c) Adjustment for fair value
i) The restraint of evaluation model and uncertain inputs

The estimates of output-based value using the evaluation model, which may not reflect the Bank's all related factors. Therefore, the estimated value of the evaluation model will be appropriately adjusted according to the extra parameters such as model risk or liquidity risk. Information and price parameters used in the evaluation process after careful assessment, and appropriately adjusted according to the current market situation.

ii) Credit risk value adjustment

The Bank and subsidiaries credit risk value adjustment of OTC transaction derivative instruments can be divided to Credit value adjustments (CVA) and debit value adjustments (DVA). To reflect the fair value of the counterparty or the default, and the Bank and subsidiaries may not be received or paid full market value of trading possibilities.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Bank and subsidiaries would calculate credit valuation adjustment (CVA) by assessing probability of default (PD) and loss given default (LGD) of the counterparty before multiplying exposure at default (EAD) of the counterparty. On the contrary, debit valuation adjustment (DVA).

The Bank and subsidiaries assesses the probability of default on the assumption of 60%, but at the risk of the nature and circumstances of available data, we may use other loss given default assumptions.

d) Transfers between Level 1 and Level 2

There were no transfers between Level 1 and 2 for the six months ended June 30, 2025 and 2024.

e) Changes in financial assets which were classified to Level 3 based on fair value measurement

Changes of financial assets categorized in Level 3 :

Name		Fo	Fo	r the six months	ended June 30, 2	025
	Beginning balance	Valuation profit and loss		Incr	ease	Decr	ease Transfer out from Level 3 (Note) Ending balance - 744,519 - 9,271,946
		Recognized in profit or loss	Recognized in other comprehensive income	Purchase or issue	Transfer into Level 3	Sale Disposition or Settlement
Financial assets at fair value through profit or loss Investments in equity instruments measured at fair value through other comprehensive income	$ 698,710 7,476,886	13,985 -	- 288,502	35,500 1,506,558	- -	3,676 -

Name		Fo	Fo	r the six months	ended June 30, 2	024
	Beginning balance	Valuation profit and loss		Incr	ease	Decr	ease Transfer out from Level 3 (Note) Ending balance 24,162 739,178 - 6,928,516
		Recognized in profit or loss	Recognized in other comprehensive income	Purchase or issue	Transfer into Level 3	Sale Disposition or Settlement
Financial assets at fair value through profit or loss Investments in equity instruments measured at fair value through other comprehensive income	$ 630,754 5,825,636	21,742 -	- 674,730	110,844 428,150	- -	- -

Note: The invested stock is registered in the emerging market. Therefore, the measurement of fair value was transferred out from Level 3.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

f) Profit and loss information of Level 3

Current gain (loss) and other comprehensive income of holding assets are as follow:

Recognized on profit and loss (reported as unrealized gain (loss) from investments instruments measured at fair value through profit and loss) Recognized on other comprehensive income (reported as unrealized gain (loss) from investments instruments measured at fair value through other comprehensive income)	For the six months ended June 30,
	2025 2024 $ 13,985 928 288,502 674,730

g) Quantified information of the fair value measurement of significant unobservable inputs (Level 3)

The Bank and subsidiaries financial instruments that use Level 3 inputs to measure fair value include financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. Without active market quotation, the Bank and subsidiaries takes professional financial information vendors and widely used by market participants for evaluation or counterparty quotation as reference. The unobservable inputs are as follows :

Financial asset at fair value through profit or loss Private fund Unlisted stocks Financial assets at fair value through other comprehensive income Unlisted stocks			June 30, 2025
	fair value $ 207,861 536,658 9,271,946	valuation methods assets approach market approach market approach assets approach income approach income approach	significant unobservable inputs liquidity discount liquidity discount liquidity discount sustainable growth rate cost of equity	range inter-relationship between significant unobservable inputs and fair value measurement 0.00%~10.00% The higher market liquidity discount, the lower fair value. 0.00%-40.09% The higher market liquidity discount, the lower fair value. 0.00%-26.67% The higher market liquidity discount, the lower fair value. 0.00%-1.56% The higher sustainable growth rate, the higher fair value. 10.54%-12.18% The higher rate of cost of equity, the lower fair value.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets at fair value through profit or loss Private fund Unlisted stocks Financial assets at fair value through other comprehensive income Unlisted stocks Financial assets at fair value through profit or loss Private fund Unlisted stocks Financial assets at fair value through other comprehensive income Unlisted stocks			December 31, 2024
	fair value $ 205,544 493,166 7,476,886	valuation methods assets approach market approach market approach assets approach income approach income approach	significant unobservable inputs liquidity discount liquidity discount liquidity discount sustainable growth rate cost of equity June 30, 2024	range inter-relationship between significant unobservable inputs and fair value measurement 0.00%~10.00% The higher market liquidity discount, the lower fair value. 0.00%~40.40% The higher market liquidity discount, the lower fair value. 0.00%-26.92% The higher market liquidity discount, the lower fair value. 0.00%-1.53% The higher sustainable growth rate, the higher fair value. 11.14%-12.57% The higher rate of cost of equity, the lower fair value.
	fair value $ 203,903 535,275 6,928,516	valuation methods assets approach market approach market approach assets approach income approach income approach	significant unobservable inputs liquidity discount liquidity discount liquidity discount sustainable growth rate cost of equity	range inter-relationship between significant unobservable inputs and fair value measurement 0.00%~10.00% The higher market liquidity discount, the lower fair value. 0.00%~68.83% The higher market liquidity discount, the lower fair value. 15.84%-28.07% The higher market liquidity discount, the lower fair value. 0.00%-1.59% The higher sustainable growth rate, the higher fair value. 11.01%-12.44% The higher rate of cost of equity, the lower fair value.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

h) Sensitivity analysis of reasonably possible alternative assumptions for fair value measurement in Level 3.

Valuation techniques used by the Bank and subsidiaries for fair value measurements of financial instruments are appropriate. However, the use of different valuation models or inputs could lead to different outcomes of fair value measurements. The following are the impact on the other comprehensive income if using alternative assumptions and inputs:

i) Assets approach/ Market approach

The evaluation methods of Level 3 financial instruments of the Bank and subsidiaries are mainly based on the market approach or the assets approach. If the liquidity discount changes by 5% upwards or downwards, the impact on the other comprehensive income is as follows:

June 30, 2025 Financial assets at fair value through profit or loss Unlisted stocks and private fund Financial assets at fair value through other comprehensive income Unlisted stocks December 31, 2024 Financial assets at fair value through profit or loss Unlisted stocks and private fund Financial assets at fair value through other comprehensive income Unlisted stocks	the effects to the net income and other comprehensive income Favorable changes (-5%) Unfavorable changes (5%) $ 42,953 (42,953) 541,531 (541,531) the effects to the net income and other comprehensive income Favorable changes (-5%) Unfavorable changes (5%) $ 42,442 (42,442) 433,274 (433,274)

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

				the effects to the net income and	the effects to the net income and
				other comprehensive income
				Favorable	Unfavorable
				changes (-5%)	changes (5%)
June 30, 2024
Financial assets at fair value through profit
	or loss
	Unlisted stocks and private	fund	$	42,754	(42,754)
Financial assets at fair value through other
	comprehensive income
	Unlisted stocks			404,691	(404,691)
Inc	ome approach
Ad	opting the income approach to evaluate Level 3 financial instruments of
the	Bank and subsidiaries. The evaluation parameters				are divided into
sus	tainable growth rate and cost of equity capital. The effects of the two
eva	luation parameters on the other comprehensive profit and loss are as
foll	ows:
1.	sustainable growth rate
				the effects to other comprehensive
				income
				Favorable	Unfavorable
				changes (0.3%)	changes (-0.3%)
June 30, 2025
Financial assets at fair value through other
	comprehensive income
	Unlisted stocks		$	4,370	(4,034)
				the effects to other comprehensive
				income
				Favorable	Unfavorable
				changes (0.3%)	changes (-0.3%)
December 31, 2024
Financial assets at fair value through other
	comprehensive income
	Unlisted stocks		$	3,699	(3,531)

ii) Income approach

Adopting the income approach to evaluate Level 3 financial instruments of the Bank and subsidiaries. The evaluation parameters are divided into sustainable growth rate and cost of equity capital. The effects of the two evaluation parameters on the other comprehensive profit and loss are as follows:

sustainable growth rate

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

June 30, 2024
Financial assets at fair value through other
comprehensive income
Unlisted stocks
2.
cost of equity
June 30, 2025
Financial assets at fair value through other
comprehensive income
Unlisted stocks
December 31, 2024
Financial assets at fair value through other
comprehensive income
Unlisted stocks
June 30, 2024
Financial assets at fair value through other
comprehensive income
Unlisted stocks

the effects to other comprehensive
income
Favorable
changes (0.3%)
Unfavorable
changes (-0.3%)
$ 2,978
(2,783)
the effects to other comprehensive
income
Favorable
changes (-3%)
Unfavorable
changes (3%)
$ 57,845
(28,842)
the effects to other comprehensive
income
Favorable
changes (-3%)
Unfavorable
changes (3%)
$ 74,568
(36,659)
the effects to other comprehensive
income
Favorable
changes (-3%)
Unfavorable
changes (3%)
$ 61,689
(30,433)

The favorable and unfavorable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) Not based on fair value measurement
a) Fair value information

The following chart presents the financial instruments not based on fair value measurement of the Bank and subsidiaries. Except those items, others' fair value is reasonably approximate value, the Bank and subsidiaries does not disclosure their fair value.

Debt instruments measured at amortized cost-net Debt instruments measured at amortized cost-net Debt instruments measured at amortized	June 30, 2025	June 30, 2025
	Book value $ 270,758,891 December	Fair value
		271,669,530 31, 2024
	Book value Fair value $ 230,242,408 230,751,781 June 30, 2024	Fair value
	Book value $ 253,665,986	Fair value
		253,805,091

Debt instruments measured at amortized cost-net

b) The fair value hierarchy of information

Assets and Liabilities		June 30, 2025	June 30, 2025
	Total $ 271,669,530	Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) 48,341,556 223,327,974 - December 31, 2024
Debt instruments measured at amortized cost Assets and Liabilities
	Total $ 230,751,781	Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) 53,478,375 177,273,406 - June 30, 2024
Debt instruments measured at amortized cost Assets and Liabilities
	Total $ 253,805,091	Quoted prices in active markets for identical assets (Level 1) 54,821,149	Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) 198,983,942 -
Debt instruments measured at amortized cost

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

c) Valuation techniques

Methods and assumptions used by the Bank and subsidiaries for fair value evaluation of financial instruments were as follows:

i) Cash and cash equivalents, due from Central Bank and call loans to banks, securities purchased under resell agreements, receivables, overdue receivables, exchange bills negotiated guarantee deposits paid, temporary payments and suspense accounts, proceeds of settlement and credit transaction, deposits from Central Bank and other banks, securities sold under repurchase agreements, payables, other financial liabilities, guarantee deposits received and temporary receipts and suspense accounts: since these instruments have short maturities, the book value is adopted as a reasonable basis in estimating the fair value.
ii) Discounts and loans (including non-performing loans): the interest rate of bank loans, dependent on the benchmark interest rate which plus or minus the input value (i.e. motorized interest rate), said market rates, therefore, the book value of financial assets is equivalent to their fair value. Among the case of fixed interest rate, the estimated fair value of long-term loans using the discounted value of its expected cash flows, but this is minority, so the book value of financial assets is equivalent to their fair value.
iii) Investment in debt instruments at amortized cost: the quoted price is regarded as its fair value. If there is no quoted price in an active market for the financial asset, its fair value is estimated on the basis of the result of a valuation technique.
Central Government Securities (NTD): using the comment of “Bonds a fair price for each of times” from Taipei Exchange.
Corporate bonds and bank debentures (NTD): the present value or fair price of Taipei Exchange determined using the future cash flow of yield curve discounting evaluation.
iv) Deposits and remittance: to determine the fair value, considered Banking industry characteristics, the market interest rates (i.e. market price) is the fair value. And deposits are mostly due within one year, the carrying amounts is the fair value of reasonable basis. The fixed interest rate of long-term deposits should be estimated by the discounted value of its expected cash flows at fair value, and its maturity date no longer than three years, so its estimated fair value of the carrying amount is considered reasonable.
v) Bank debentures payable: The bank debentures payable, issued by the Bank and subsidiaries, whose stated rate was equal the effective rate, using discounted cash flow projections to estimate the fair value, equivalent to its book value.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ao) Financial Risk Information
(i) General description

The goal of the financial risk management of the Bank is to effectively diversify, transfer and avoid risks by taking customer service, financial business operating target, overall risk tolerance and external limitation of laws into consideration and provide benefit to customers, shareholders and employees.

The Bank's Financial Risk Management policy is to establish a risk management mechanism in terms of risk identification, risk measurement, risk monitoring, and risk control and to construct the overall risk management system. It is to facilitate the business model with appropriate risk management and to control the rationality between risks and rewards under the premise of legal capital ratio in order to achieve operating targets and increase the value of the Bank for the shareholders. The scope covers the management of credit risk, market risk, operation risk, banking book interest rate risk, capital liquidity risk, and capital adequacy.

(ii) Risk management organization structure
1) Risk Management Committee

The chairperson of the Risk Management Committee is appointed by the president. The chairpersons include general manager, deputy general manager of the non-regulatory compliance in head office and department directors of head office (excluding the director of audit department in the Board). This Committee is set up for the purpose of establishing a sound risk management system, strengthening risk management and the implementation of the Bank's risk management and monitoring. The meeting will be held once a month in principle. The meeting can be held by the chairman of the Committee when it necessary. The duties are as follows:

a) Conduct Analysis and response project when significant domestic and foreign economic, financial and industrial risk management occur.
b) Risk management report of various risk exposure and agenda processing.
c) The processing of examination of the risk management relevant policy of the Bank and limitations, management indices and the response project when the risk exceeds the limitations.
d) Supervise the Bank and subsidiaries capital adequacy management.
e) Conduct or supervise the issues that have to report to Risk Management Committee according to the regulations drawn by the competent authority at home and abroad.
f) Conduct or supervise other risk management related issues.

Risk Management Department is the assistant unit of the Risk Management Committee. The responsibility of the Risk Management Department is to execute preparing sittings agenda, convening sittings, agenda processing, taking meeting minutes and tracking resolution and regularly report the important resolution and various risk exposure to the board of (executive) directors.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Assets and Liabilities Management Committee

The chairperson of the Assets and Liabilities Management Committee is the general manager, and the members are formed by the vice assistant general manager and the department heads of deposit, loan, financial transaction, capital deployment and risk management units. The responsibility of the Assets and Liabilities Management Committee is to monitor and manage the banking book interest rate risk and capital liquidity risk and convenes meetings regularly, to approve the analyzing and measurement methods of the capital liquidity risk and banking book interest rate risk exposure, to examine the capital liquidity risk and banking book interest rate risk management policy as well as the relevant limitations and management indices, to receive interest rate risk and capital liquidity risk exposure reports and adjust the assets and liabilities interest rate duration structure and capital maturity structure.

3) Credit Examination Committee

The convener of the Credit Examination Committee is the assistant general manager supervising Risk Management Center. The Committee in principle convenes weekly to examine the modification and establishment of the regulations (including main points, measures and procedures) for significant loans, foreign exchange and guarantee cases.

4) Overdue Loans Clearing Committee

The convener of the Overdue Loans Clearing Committee is the supervising vice president. The convener holds meetings as needed to discuss measures on reducing nonperforming loans and approaches to handle overdue loans.

5) Cyber Security Management Committee

The Cyber Security Management Committee is convened by the supervising vice president who oversees the implementation and coordination of the Bank's cyber security policies. The committee holds meetings as needed to examine matters related to cyber security.

(iii) Credit risk
1) Source and definition of credit risk

Credit risk refers to the default risk resulted from the inability to fulfill the contract obligations due to deteriorating financial status of trade counterparties, pessimistic external economic situation or other factors. The primary source of the credit risk of the Bank is the loan business, such as loans of various terms, guarantees and letters of credit, loan commitments, etc., in addition, other sources of credit risk include call loans from banks, securities investments, derivative financial instrument transactions, etc.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Credit risk management policy

In order to control the credit risk to a tolerable scope, the Bank continuously conduct below operations:

a) Fully understand the credit status and ratings of loan customers and trade counterparties as well as the purposes and payments of loans.
b) Prudently evaluates the credit risk status of loan customers and trade counterparties and consider the adequacy of collaterals and guarantees to assess risk and profit.
c) Establish credit rating mechanism for loan customers or apply the ratings from outside credit rating institutions as the reference for undertaking credit cases or interest rate determination.
d) Modify relevant regulations to control the credit risk to a tolerable extent for the Bank.

The credit risk management procedure and measurement methods of the Bank's major business are as follows:

a) Credit Business (Including loan commitments and guarantees)

The categorization and credit quality rating of credit assets are as follows:

i) Categorization of credit assets

The credit assets are classified into 5 categories. Except for normal credit assets which are classified as the first category, others are classified, based on the assurance status and the time overdue, as second category (need attention), third category (possible to recover), fourth category (difficult to retrieve) and the fifth category (unable to retrieve). In order to manage creditor's rights, the Bank established “Regulations Governing the Procedures to Evaluate Assets and Deal with Non-performing/Non-accrual Loans” , “ Regulations Governing the Reconciliation of Non-performing/Non-accrual Loans” and its operating procedure “ Operating procedure Governing the Collection of Non-performing/Non-accrual Loans” and “Code of Conduct to Deal With Non-Performing Loans” to serve as the guidelines for dealing with non-performing credit and overdue loans collection.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

ii) Categorization of credit quality

Based on historical default data, the Bank established internal credit rating model and completed internal rating system to serve as a reference to credit risk control.

In order to develop an appropriate credit rating model for the Bank to evaluate the credit risk for corporate banking customers and private banking customers, it applied statistical methods, professional expert judgments and relevant customer information to fulfill the requirements. The Bank examined whether the internal credit rating model is in conformity with the actual scenario based on practical default data quarterly and adjusted all parameters to optimize the estimated results.

b) Due from other banks and call loans to banks

The Bank evaluates the credit status of counterparties before transaction and takes the rating information from domestic and foreign credit rating institutions into consideration to determine various credit risk facilities for the counterparties.

c) Debt instrument investments and derivative financial instruments

The Bank manages credit risk of debt instruments through credit rating data of external institutions, credit quality of bonds, geographic situations and counterparties’ risk so as to identify credit risk.

The financial institutions which the Bank conducts derivative instruments are mostly investment quality and are controlled based on the trade amount (including loans at call). Counterparties which do not have credit rating or which are of low quality shall be examined individually. For counterparties which are general customers, the Bank controls the credit risk exposure based on the derivative instrument risk facilities and conditions approved by general credit procedures.

3) Determining the credit risk has increased significantly since initial recognition

At each reporting date, the Bank and subsidiaries shall assess the change in the risk of a default occurring over the expected life of the various credit assets and financial assets to determine whether the credit risk has increased significantly since initial recognition. To make that assessment, the Bank and subsidiaries considers reasonable and supportable information (including forward-looking information) that is indicative of significant increases in credit risk since initial recognition. The main considerations include:

a) credit assets
i) The borrowers failed to pay the principal and interest overdue for more than 30 days, less than 90 days;

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

  - ii) When the Bank and subsidiaries conduct review or follow-up review of the relevant management procedures after loan, it knows that the financial report of the borrowers have been issued by the accountant and it has issued opinions of the significant doubt on the ability to continue as a going concern;

  - iii) The deposits and assets of borrowers are compulsorily executed, besides, the deposits are compulsorily executed because of tax arrears. However, the borrowers that have enough deposit to bear the cost that assessed by the Bank and subsidiaries is except;

  - iv) The bank knows (if it has received the notice from court) that the collaterals are compulsory executed by other banks;

  - v) Borrowers were notified the refund by the Bank and did not conduct refund notice;

  - vi) The letter of credit insurance fund notice due to the related company's overdue debt in other bank, the creditor to stop the delivery;

  - vii) Because the borrowers have been involved in litigation and unfavorable judgments, their ability of credit performance is affected;

  - viii) The customer is classified as an early warning account by the Bank or has bad credit that aware by others.

b) Debt instrument investments
- i) The latest credit rating on the report date was non-investment grade and fell more than two levels than the original rating, or;
- ii) Investment target evaluation loss is up to 30% of investment cost.
4) The credit risk has not increased significantly or judged as low credit risk on the report date

On each report date, the Bank and subsidiaries assessed that there was no significant increase in the risk of default for any credit asset during the expected duration of existence or a low credit risk. The amount of expected credit losses was not taken as the change of credit risk, if the credit risk of the credit asset was low on the report date, it also assumes that the credit risk of the credit asset has not increased significantly since the initial recognition. The credit assets with low credit risk refer to the low default risk and the borrower’s ability to perform its contractual cash flow obligations in the near term. No significant increase in risk relates to the borrower. The absence of economic, operational, and adverse changes in financial conditions and other bad debt conditions did not affect their ability to fulfill their contractual cash flow obligations. Financial assets on investment-grade or not on investment-grade but the ratings are not significantly reduced are also considered to be low-risk areas.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

5) Definitions of default and credit-impaired financial assets

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired not only the borrower defaults the loan more than 90 days, it also includes observable data as follows:

a) Credit assets
- i) Significant financial difficulty of the issuer or the borrower;
- ii) A breach of contract, such as a default or past due event ;
- iii) The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’ s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;
- iv) It is becoming probable that the borrower will enter bankruptcy or other financial reorganization;
- v) The disappearance of an active market for that financial asset because of financial difficulties;
- vi) The purchase or origination of a financial asset at a considerable amount of discount that reflects the incurred credit losses;
b) Debt instrument investments
- i) Significant financial difficulty of the issuer;
- ii) The disappearance of an active market for that financial asset because of financial difficulties;
- iii) The purchase or origination of a financial asset at a considerable amount of discount that reflects the incurred credit losses.
- iv) Counterparty defaulting on agreement of other financial instruments (e.g. transactions settlement failure, a bank decide to execute early termination of transactions, or loans originated from derivatives settlement failure).
6) Write-off policy

The integral part or the portion of the credit assets that needs to be written-off should first be approved during the board of directors’ meeting; particularly, the portion that is deemed uncollectible.

The following are indicators that the financial assets are uncollectible:

a) The borrowers fail to recover all or part of the debt due to dissolution, escape, settlement, bankruptcy or other reasons.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

b) After the collateral and the assets of the principal and subordinate debtors have been priced low or deducted from the first-order mortgage, they cannot be repaid, the execution costs are close or may exceed the Bank’s reimbursable amount, and the implementation is not beneficial.
c) The collateral and the property of the principal and subordinate debtors were auctioned off at no cost and were not bought by anyone, and there was no one have substantial benefits.
d) Overdue loan and non-accrual loan have exceeded the liquidation period for two years.

The Bank and subsidiaries, whose written-off claims may still have ongoing recourse, continues to follow laws and regulations to pursue the proceedings.

7) Modification of contractual cash flow of financial assets

The Bank and subsidiaries may revise the contractual cash flow of the credit asset due to the borrower's financial difficulties in negotiating, increasing the recovery rate of the borrowers that have problems, or maintaining the customer relationship. The modification of the contractual terms of the credit asset may include extending the contract period, modifying the payment time of interest, and modifying agreement rate and so on. If the contractual cash flow modification of the credit asset is due to the financial difficulty of the borrower, it is deemed as an impairment of the financial asset. If the contractual cash flow modification is not due to the financial difficulties of the borrower, the existing or projected unfavorable changes in the operating, financial or economic conditions under the borrower's performance or the borrower's ability to make the borrower's ability to perform its debt obligations vary significantly. The cause of anomalies or other bad debts is supplemented by an assessment of whether the credit risk of financial assets has increased significantly.

8) Measuring the expected credit losses
a) Adoption of methods and assumptions

After considering the attributes of financial assets and credit assets and the adequacy of default experience, internal historical data or the information from external credit rating agency is used to estimate the Probability of default (PD), Loss given default (LGD), Exposure at default (EAD) and other credit risk components.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

In order to assess the expected credit losses of credit assets, the Bank and subsidiaries is divided into the following combinations depending on the credit risk characteristics such as the identity of borrowers, products, and type of collateral:

Corporate banking	Government and public institution	Government and public institution
	Financial institution (including banks, ticket companies, securities finance companies)
	Large Enterprise	The guarantee of the credit guarantee mechanism
		Secured
		Non-secured
	Medium and small enterprises	The guarantee of the credit guarantee mechanism
		Secured
		Non-secured
Private banking	Mortgage
	Microcredit
	Other-Secured
	Other-Non-secured
Entrepreneurship	The guarantee of the credit guarantee mechanism
	Secured
	Non-secured

If the credit risk on a credit asset has not increased significantly since initial recognition or the credit asset has low credit risk at the reporting date, the Bank and subsidiaries shall measure the allowance for impairment using the 12-month expected credit losses; if the credit risk on a financial instrument has increased significantly or credit-impaired since initial recognition, the Bank and subsidiaries shall measure the allowance for impairment using the lifetime expected credit losses.

In order to measure expected credit losses, the Bank and subsidiaries considers the default probability (Probability of default, "PD") of borrowers, and loss given default rate ("LGD") multiplying the exposure at default (“ EAD” ), taking into account the time value of money as well evaluate 12-month and lifetime loss.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Default probability is the default probability of the borrower (default and credit impairment of financial assets), and the loss given default rate is the rate of loss caused by default by the borrower. The default probability and default loss rate used in the impairment assessment of the credit business are based on internal historical information of each group, and adjusted based on current observable information and forward-looking general economic information.

The Bank and subsidiaries measures the EAD based on the book value of loans at reporting date. When estimating the 12-month and lifetime expected credit losses of the loan commitments and financial guarantee contracts, the definition of the credit risk increasing significantly and the credit-impaired assets are based on the rules mentioned above. Additionally, in order to determine the EAD used to calculate expected credit loss of off-balance sheet items, the Bank and subsidiaries adopts the credit conversion factor (CCF) of standardized approach in credit risk which is legislated in the regulation of Proprietary Capital and Risk Capital of Banks.

b) Consideration of forward-looking information

The Bank and subsidiaries obtains forward-looking information which it takes into consideration when determining whether the credit risk of financial instruments has increased significantly since initial recognition and assessing the expected credit losses. The Bank and subsidiaries identified the relevant macroeconomic factors for credit risk of each portfolio by analyzing the historically data. These macroeconomic factors include Taiwan GDP (not seasonally adjusted), Taiwan's actual industrial production index, Taiwan's annual growth rate of retail sales, Taiwan's real sales price index, unemployment rate (seasonally adjusted), Cathay National Real Estate Index (national), Taiwan's real consumer price index (Not seasonally adjusted) and Taiwan's annual growth in retail sales or other factors. The various economic factors and their impacts on Probability of Default (“PD”) are different depending on the type of financial instruments.

In order to determine the credit risk of investment in debt instruments at amortized cost and at fair value through other comprehensive income has increased significantly, the Bank and subsidiaries uses the changes of external ratings published by international credit rating agencies as the quantitative indicators, while the assessment of expected credit losses are calculated by using the external ratings, as well as PD and Loss Given Default (“LGD”), published by Moody’s. Since the international credit rating agencies have already considered the forwardlooking information while evaluating the credit ratings, which the Bank and subsidiaries considered to be appropriate after its assessment, the credit ratings will be included in the Bank and subsidiaries assessment of related expected credit losses.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

9) Credit risk hedging or diminishing.
a) Collaterals

The Bank adopts a series of policies and procedures to mitigate credit risk and enhance credit risk tolerance. The method applied most is to request customers to provide collaterals. The Bank established collateral accreditation code of conduct in term of collateral management and total loan amount to regulate the scope of collaterals and the accreditation method and regularly inspects the collaterals. When the collaterals devaluate or the concern of devaluation occurs, the Bank shall increase collaterals or retrieve part of the loans to ensure the creditor’ s right is intact.

b) Limit of credit risk and the control of credit risk concentration
i) In order to avoid the situation that the credit risk of single customer being too high, the credit limit of an individual, a related party or a related enterprise shall be in conformity with “Authorization method for subsection 3 of Article 33 of the Banking Act of the Republic of China” and the credit limit authorization steps are regulated in the Key Points of Credit Engagement Authorization and the Key Points of Credit Engagement Authorization for Overseas Branches of the Bank.
ii) To enhance the risk concentration management, the Bank established regulations in terms of countries, financial institutions, industries and group enterprises. The relevant limits are reviewed and approved annually and the usage of the credit is monitored on a daily basis. In addition, the results are reported regularly.

c) General agreement of net amount settlement

The transactions of the Bank are mostly settled with gross amount. Part of the transactions agreed on net amount settlement. When a default occurs, the Bank terminates all the transactions with the counterparty and settles by net amount to further lower credit risk.

d) Enhancement of other credit

The assessment of credit business applies to credit 5P principles, credit risk is offset by dividing self-liquidating loan commitments as the main, and set the accounts to master the repayment of cash flow. Also, in terms of the credit agreement stipulates the offset. (i.e. all kinds of deposits, except prohibition of low or the party's agreement, the Bank can set off all the debts), thus to reduce the loan amount, shorter loan repayment period or are considered part or all of expiration of acceleration clauses. To strengthen the protection of creditor and reduce credit risk, using qualified and effective enhancement, such as the requirement of real property, personal property, demand deposits, time deposits, securities and the guarantee of financial institution or the credit guarantee mechanism approved by government. (e.g. R.O.C SMEG, Agricultural Credit Guarantee Fund, Overseas Credit Guarantee Fund)

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

10) Information on the financial assets of the Bank and subsidiaries that has been credit derogated and the collateral for mitigating potential losses are as follows:

June 30, 2025 Impairment financial assets`：` Receivables Accounts receivables Interest receivable Discounts and loans Overdue receivable Total impairment financial assets December 31, 2024 Impairment financial assets`：` Receivables Accounts receivables Interest receivable Discounts and loans Overdue receivable Total impairment financial assets June 30, 2024 Impairment financial assets`：` Receivables Acceptances receivables Interest receivable Discounts and loans Overdue receivable Total impairment financial assets	Carrying amount $ 142,648 63,177 21,873,781 19,874 $ 22,099,480 Carrying amount $ 160,100 53,196 18,943,078 15,380 $ 19,171,754 Carrying amount $ 178,150 65,677 19,540,275 17,408 $ 19,801,510	Allowance impairment 19,702 13,737 5,740,319 9,371 5,783,129 Allowance impairment 20,195 12,036 5,032,126 7,946 5,072,303 Allowance impairment 12,566 13,955 5,470,466 9,012 5,505,999	Exposure (measured at amortized cost) 122,859 49,440 16,133,462 10,503 16,316,264 Exposure (measured at amortized cost) 139,905 41,160 13,910,952 7,434 14,099,451 Exposure (measured at amortized cost) 165,584 51,722 14,069,809 8,396 14,295,511	Value of collateral
				142,648 - 24,643,311 -
				24,785,959
				Value of collateral
				154,660 - 23,074,264 -
				23,228,924
				Value of collateral
				170,813 - 23,264,492 -
				23,435,305

Note: The value of collateral is the real estate appraisal information and credit guarantee agency guarantee amount levied by the Bank and subsidiaries credit assets.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

11) Credit risk concentration

The Bank and subsidiaries does not conduct significant transaction with single customer or single trade counterparty. The total amount of discounts and loans, overdue loans in terms of individual customer or individual trade counterparty is not significant. The information of credit risk concentration of the Bank’s discounts and loans and overdue loans are divided by industries, geographic areas and collaterals and listed as follows:

a) By industry

Distribution of discounts and loans, overdue loans based on industries.

Industry	June 30, 20	25 % % 59.99 % 1.06 % 2.29 % 0.16 % 30.01 % 0.59 % 5.79 % 0.11 % 100.00	December 31	, 2024 % % 60.59 % 1.44 % 2.67 % 0.16 % 28.30 % 0.66 % 6.07 % 0.11 % 100.00	June 30, 2	024
	Amount $ 994,167,340 17,598,555 37,982,224 2,678,821 497,382,358 9,710,902 96,028,637 1,662,395 $ 1,657,211,232		Amount 994,458,590 23,659,672 43,788,000 2,672,117 464,452,775 10,829,982 99,622,258 1,701,093 1,641,184,487		Amount 954,872,945 22,724,140 44,790,000 2,705,307 415,556,936 10,207,952 99,742,302 1,842,072 1,552,441,654	% % 61.51 % 1.46 % 2.89 % 0.17 % 26.77 % 0.66 % 6.42 % 0.12 % 100.00
Private business Public business Government institution Nonprofit organization Individual Foreign financial institution Foreign non-financial institution Foreign individual Total

b) By geographic area

Distribution of discounts and loans, overdue loans based on geographic area.

Area	June 30, 20	25 % % 93.52 % 6.48 % 100.00	December 31	, 2024 % % 93.17 % 6.83 % 100.00	June 30, 2	024
	Amount $ 1,549,809,298 107,401,934 $ 1,657,211,232		Amount 1,529,031,154 112,153,333 1,641,184,487		Amount 1,440,649,328 111,792,326 1,552,441,654	% % 92.80 % 7.20 % 100.00
Domestic Foreign Total

c) By collateral

Distribution of discounts and loans, overdue loans based on collateral.

Collateral	June 30, 20	25 % % 16.88 % 0.61 % 0.97 % 64.50 % 0.98 % 0.11 % 15.26 % 0.69 % 100.00	December 31	, 2024 % % 17.71 % 0.70 % 1.08 % 62.87 % 1.02 % 0.14 % 15.87 % 0.61 % 100.00	June 30, 2	024
	Amount $ 279,809,840 10,158,937 16,052,566 1,068,895,081 16,279,330 1,821,448 252,910,382 11,283,648 $ 1,657,211,232		Amount 290,659,153 11,434,500 17,754,711 1,031,845,127 16,679,073 2,357,604 260,374,328 10,079,991 1,641,184,487		Amount 264,492,962 10,105,268 20,147,044 975,089,844 14,347,627 2,608,292 256,688,335 8,962,282 1,552,441,654	% % 17.04 % 0.65 % 1.30 % 62.81 % 0.92 % 0.17 % 16.53 % 0.58 % 100.00
Unsecured Stocks Bonds Real estate Chattel Notes receivable Guarantees Others Total

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

  - Note: Secured credit are categorized in its respective item per the type of the collaterals. Non-secured credit (no collateral provided) is classified in unsecured. If the credit amount is higher than the accreditation value, the credit amount within the accreditation is classified in the respective item, the credit amount exceeds the accreditation value is classified in unsecured. The accreditation value is the value calculated per the accreditation regulations of the Bank and subsidiaries, not the discounted value of the signed contract.

12) Maximum credit risk exposure
a) The maximum credit exposure of the assets in the consolidated financial statement is approximately the book value when not considering collaterals or other credit enhancement instruments. The maximum credit exposure off the consolidated balance sheet (when not considering collaterals or other credit enhancement instruments and not revocable) was as follows:

Off balance sheet items	Maximum credit risk exposure	Maximum credit risk exposure	Maximum credit risk exposure
	June 30, 2025 $ 81,446,778 18,717,628 8,154,486 32,586,975 $ 140,905,867	December 31, 2024 82,622,791 17,974,642 8,268,607 33,893,522 142,759,562	June 30, 2024
Issued and irrevocable loan commitments Irrevocable credit card loan commitments Letters of credit issued yet unused Various guarantee proceeds Total			89,706,208 17,532,436 10,162,658 30,879,722
			148,281,024

The Management of the Bank and subsidiaries evaluated the credit risk exposure and believed that it is able to continuously control and minimize the off-balance sheet credit risk exposure due to its strict appraisal process and regular subsequent examination.

(Continued)

TAIWAN BUSINESS BANK, LTD. Notes to the Consolidated Financial Statements

b) The credit quality analyses of the financial assets

i) Credit quality analysis of discounts and loans, receivables, guarantee and commitments

June 30, 2025	12-month ECL	12-month ECL	12-month ECL	12-month ECL	12-month ECL	12-month ECL	12-month ECL	Lifetime ECL`－`not impaired	Lifetime ECL`－`not impaired	Lifetime ECL`－`not impaired	Lifetime ECL`－`not impaired	Lifetime ECL`－`not impaired	Lifetime ECL`－`not impaired	Lifetime ECL`－`not impaired	Lifetime ECL`－` impaired
	Excellent	Good	Medium	Acceptable	Under standard	No rating	Subtotal	Excellent	Good	Medium	Acceptable	Under standard	No rating	Subtotal	High risk	Allowance impairment	Total
Receivable
Credit card	$ 496,325	257,715	147,822	-	1,397	248,095	1,151,354	1,942	4,263	2,852	-	93	5	9,155	-	1,323	1,159,186
Acceptances receivable	270,744	351,662	123,936	1,334	-	120,964	868,640	-	-	-	-	-	-	-	-	8,686	859,954
Other receivables	653,623	3,195,104	523,411	58,694	27,128	4,518,522	8,976,482	333	2,488	5,355	1,584	2,808	35,157	47,725	205,825	136,381	9,093,651
Discounts and loans
Private banking	258,665,488	167,620,603	60,048,336	2,664,209	1,181,674	3,953,168	494,133,478	43,285	120,986	351,089	102,119	180,389	7,863	805,731	4,105,544	6,555,276	492,489,477
Corporate banking	315,471,606	416,941,442	265,327,766	41,395,069	16,527,885	78,932,746	1,134,596,514	233,097	1,614,189	1,141,767	957,840	992,033	862,802	5,801,728	17,768,237	15,886,855	1,142,279,624
Other financial assets
Overdue receivable	-	-	-	-	-	-	-	-	-	-	-	-	-	-	19,874	9,951	9,923
Total	$ 575,557,786	588,366,526	326,171,271	44,119,306	17,738,084	87,773,495	1,639,726,468	278,657	1,741,926	1,501,063	1,061,543	1,175,323	905,827	6,664,339	22,099,480	22,598,472	1,645,891,815
Guarantee and commitments	$ 28,214,253	22,537,008	7,034,688	281,659	264,957	82,360,986	140,693,551	61,104	8,590	6,466	2,140	7,409	56	85,765	126,551	439,132	140,466,735

December 31, 2024	12-month ECL							Lifetime ECL`－`not impaired							Lifetime ECL`－` impaired
	Excellent	Good	Medium	Acceptable	Under standard	No rating	Subtotal	Excellent	Good	Medium	Acceptable	Under standard	No rating	Subtotal	High risk	Allowance impairment	Total
Receivable
Credit card	$ 490,011	255,117	153,914	5	1,545	373,399	1,273,991	2,276	2,311	3,223	-	127	1,722	9,659	-	1,441	1,282,209
Acceptances receivable	544,890	508,851	148,854	3,541	-	39,241	1,245,377	-	-	-	-	-	-	-	-	12,454	1,232,923
Other receivables	619,261	3,116,993	612,121	73,713	28,975	4,575,283	9,026,346	508	2,603	3,405	802	8,895	96,868	113,081	213,296	119,135	9,233,588
Discounts and loans
Private banking	239,613,287	157,115,714	55,738,686	2,859,702	1,405,153	4,839,886	461,572,428	22,854	191,234	288,800	32,373	157,949	3,074	696,284	3,885,156	6,008,481	460,145,387
Corporate banking	305,590,576	428,717,976	268,220,823	48,161,526	17,209,210	86,877,154	1,154,777,265	262,024	913,207	883,441	348,776	1,631,473	1,156,511	5,195,432	15,057,922	15,866,502	1,159,164,117
Other financial assets
Overdue receivable	-	-	-	-	-	-	-	-	-	-	-	-	-	-	15,380	8,543	6,837
Total	$ 546,858,025	589,714,651	324,874,398	51,098,487	18,644,883	96,704,963	1,627,895,407	287,662	1,109,355	1,178,869	381,951	1,798,444	1,258,175	6,014,456	19,171,754	22,016,556	1,631,065,061
Guarantee and commitments	$ 26,589,388	21,419,459	9,901,075	417,465	262,871	83,936,364	142,526,622	19,442	78,236	5,935	2,140	183	358	106,294	126,646	411,691	142,347,871

June 30, 2024	12-month ECL							Lifetime ECL`－`not impaired							Lifetime ECL`－` impaired
	Excellent	Good	Medium	Acceptable	Under standard	No rating	Subtotal	Excellent	Good	Medium	Acceptable	Under standard	No rating	Subtotal	High risk	Allowance impairment	Total
Receivable
Credit card	$ 637,204	248,130	162,957	13	1,968	430,724	1,480,996	1,230	2,656	4,173	-	538	105	8,702	-	1,493	1,488,205
Acceptances receivable	415,923	541,904	108,220	8,831	-	42,137	1,117,015	-	-	-	-	-	-	-	-	11,170	1,105,845
Other receivables	637,452	3,028,446	592,211	66,605	30,662	4,577,315	8,932,691	587	3,264	4,114	2,097	4,599	71,259	85,920	243,827	124,654	9,137,784
Discounts and loans
Private banking	211,127,706	140,364,353	52,812,287	2,303,336	1,347,470	4,600,092	412,555,244	120,905	149,221	340,834	23,440	180,959	9,804	825,163	4,018,601	5,079,861	412,319,147
Corporate banking	287,925,522	417,119,661	266,252,706	40,740,728	17,198,714	84,168,803	1,113,406,134	252,358	1,189,116	1,016,476	1,112,798	1,473,223	1,070,867	6,114,838	15,521,674	14,587,180	1,120,455,466
Other financial assets
Overdue receivable	-	-	-	-	-	-	-	-	-	-	-	-	-	-	17,408	9,587	7,821
Total	$ 500,743,807	561,302,494	319,928,381	43,119,513	18,578,814	93,819,071	1,537,492,080	375,080	1,344,257	1,365,597	1,138,335	1,659,319	1,152,035	7,034,623	19,801,510	19,813,945	1,544,514,268
Guarantee and commitments	$ 28,012,066	17,157,413	11,343,670	327,073	264,022	90,824,604	147,928,848	1,442	209,522	642	-	1,427	122	213,155	139,021	385,373	147,895,651

(Continued)

TAIWAN BUSINESS BANK, LTD. Notes to the Consolidated Financial Statements

ii) Debt instruments

June 30, 2025	12-month ECL	12-month ECL	12-month ECL	12-month ECL	12-month ECL	Lifetime ECL`－`not impaired	Lifetime ECL`－`not impaired	Lifetime ECL`－`not impaired	Lifetime ECL`－`not impaired	Lifetime ECL`－`not impaired	Lifetime ECL`－` impaired
	Investment	Sub investment	High risk	No rating	Subtotal	Investment	Sub investment	High risk	No rating	Subtotal	High risk	Total	Accumulated impairment(Note)
Investment in debt instruments measured at fair value through other comprehensive income
Overseas bonds	$ 63,400,097	-	-	-	63,400,097	-	-	-	-	-	-	63,400,097	17,736
NT bonds	100,361,065	-	-	-	100,361,065	-	-	-	-	-	-	100,361,065	56,650
Negotiable certificates of deposit	585,364	-	-	-	585,364	-	-	-	-	-	-	585,364	217
Investment in debt instruments at amortized cost
Overseas bonds	22,191,839	-	-	-	22,191,839	-	-	-	-	-	-	22,191,839	6,918
NT bonds and treasury bills	51,134,882	-	-	-	51,134,882	-	-	-	-	-	-	51,134,882	27,993
Certificates of deposit with the Central Bank	197,455,000	-	-	-	197,455,000	-	-	-	-	-	-	197,455,000	49,048
Negotiable certificates of deposit	61,152	-	-	-	61,152	-	-	-	-	-	-	61,152	23
Total	$ 435,189,399	-	-	-	435,189,399	-	-	-	-	-	-	435,189,399	158,585

December 31, 2024	12-month ECL					Lifetime ECL`－`not impaired					Lifetime ECL`－` impaired
	Investment	Sub investment	High risk	No rating	Subtotal	Investment	Sub investment	High risk	No rating	Subtotal	High risk	Total	Accumulated impairment(Note)
Investment in debt instruments measured at fair value through other comprehensive income
Overseas bonds	$ 68,780,192	-	-	-	68,780,192	-	-	-	-	-	-	68,780,192	20,900
NT bonds	97,980,180	-	-	-	97,980,180	-	-	-	-	-	-	97,980,180	66,583
Negotiable certificates of deposit	652,513	-	-	-	652,513	-	-	-	-	-	-	652,513	245
Investment in debt instruments at amortized cost
Overseas bonds	27,143,649	-	-	-	27,143,649	-	-	-	-	-	-	27,143,649	6,963
NT bonds and treasury bills	48,887,235	-	-	-	48,887,235	-	-	-	-	-	-	48,887,235	26,844
Certificates of deposit with the Central Bank	154,215,000	-	-	-	154,215,000	-	-	-	-	-	-	154,215,000	38,492
Negotiable certificates of deposit	68,849	-	-	-	68,849	-	-	-	-	-	-	68,849	26
Total	$ 397,727,618	-	-	-	397,727,618	-	-	-	-	-	-	397,727,618	160,053

June 30, 2024	12-month ECL					Lifetime ECL`－`not impaired					Lifetime ECL`－` impaired
	Investment	Sub investment	High risk	No rating	Subtotal	Investment	Sub investment	High risk	No rating	Subtotal	High risk	Total	Accumulated impairment(Note)
Investment in debt instruments measured at fair value through other comprehensive income
Overseas bonds	$ 67,909,922	-	-	-	67,909,922	-	-	-	-	-	-	67,909,922	19,424
NT bonds	102,766,360	-	-	-	102,766,360	-	-	-	-	-	-	102,766,360	78,510
Negotiable certificates of deposit	646,169	-	-	-	646,169	-	-	-	-	-	-	646,169	244
Investment in debt instruments at amortized cost
Overseas bonds	27,025,596	-	-	-	27,025,596	-	-	-	-	-	-	27,025,596	6,260
NT bonds and treasury bills	50,221,035	-	-	-	50,221,035	-	-	-	-	-	-	50,221,035	30,651
Certificates of deposit with the Central Bank	176,440,000	-	-	-	176,440,000	-	-	-	-	-	-	176,440,000	52,105
Negotiable certificates of deposit	68,397	-	-	-	68,397	-	-	-	-	-	-	68,397	26
Total	$ 425,077,479	-	-	-	425,077,479	-	-	-	-	-	-	425,077,479	187,220

Note: The cumulative impairment of the bond which measured at fair value through other comprehensive profit or loss is recognized as other equity.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

iii) The Maximum credit risk exposure for financial instruments are not subject to impairment regulations are as follows:

June 30, 2025	Maximum credit risk exposure $ 200,000 88,363,163 821,651 536,658 207,861 3,472,387 Maximum credit risk exposure $ 200,000 78,181,124 794,532 493,166 205,544 2,931,419 Maximum credit risk exposure $ 200,000 70,839,461 1,504,964 535,275 414,816 2,640,564	Collateral Enhancement of other credit - - - - - - - - - - 102,395 637,972 Collateral Enhancement of other credit - - - - - - - - - - 2,074,252 612,147 Collateral Enhancement of other credit - - - - - - - - - - 1,602,025 729,632
Financial assets at fair value through profit or loss `－`Debt investments `－`Commercial paper `－`Listed stocks `－`Unlisted stocks `－`Beneficiary certificates `－`Derivative instrument December 31, 2024
Financial assets at fair value through profit or loss `－`Debt investments `－`Commercial paper `－`Listed stocks `－`Unlisted stocks `－`Beneficiary certificates `－`Derivative instruments June 30, 2024
Financial assets at fair value through profit or loss `－`Debit investments `－`Commercial paper `－`Listed stocks `－`Unlisted stocks `－`Beneficiary certificates `－`Derivative instrument

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

13) Changes in the expected credit losses of the Bank and subsidiaries
a) Receivables

		For the six mont	hs ended June 30, 2025	hs ended June 30, 2025	Total
12-month ECL $ 41,523 409 (39) (42) (12,679) 21,064 (6,499) - $ 43,737	Lifetime ECL`－`not impaired 9,170 (288) 69 (461) (142) 168 645 - 9,161	Lifetime ECL`－` impaired 32,231 (121) (30) 503 (9,371) 12,777 (2,550) - 33,439	Impaired (IFRS9) 82,924 - - - (22,192) 34,009 (8,404) - 86,337	Impairment difference of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non- Performing and Non- Accrual Loans" 50,106 - - - - - - 9,947 60,053
					133,030 - - - (22,192) 34,009 (8,404) 9,947
					146,390

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		For the six mont	hs ended June 30, 2024	hs ended June 30, 2024	Total
12-month ECL $ 39,104 165 (15) (26) (11,300) 18,840 (3,371) - $ 43,397	Lifetime ECL`－`not impaired 7,043 (21) 70 (35) (80) 163 10,777 - 17,917	Lifetime ECL`－` impaired 30,542 (144) (55) 61 (4,338) 10,894 (10,439) - 26,521	Impaired (IFRS9) 76,689 - - - (15,718) 29,897 (3,033) - 87,835	Impairment difference of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non- Performing and Non- Accrual Loans" 44,823 - - - - - - 4,659 49,482
					121,512 - - - (15,718) 29,897 (3,033) 4,659
					137,317

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

b) Discounts and loans

		For the six mont	hs ended June 30, 2025	hs ended June 30, 2025	Total
12-month ECL $ 5,678,500 73,431 (16,321) (28,784) (1,892,428) 2,096,809 - (122,814) - $ 5,788,393	Lifetime ECL`－`not impaired 407,406 (20,611) 27,344 (21,935) (60,822) 78,633 - 119,994 - 530,009	Lifetime ECL`－` impaired 5,032,126 (52,820) (11,023) 50,719 (391,732) 212,425 (2,354,027) 3,254,651 - 5,740,319	Impaired (IFRS9) 11,118,032 - - - (2,344,982) 2,387,867 (2,354,027) 3,251,831 - 12,058,721	Impairment difference of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non- Performing and Non- Accrual Loans" 10,756,951 - - - - - - - (373,541) 10,383,410
					21,874,983 - - - (2,344,982) 2,387,867 (2,354,027) 3,251,831 (373,541)
					22,442,131

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the six months ended June 30, 2024

Beginning balance Changes in financial instruments that have been identified at the beginning of the period`：` `－`Transferred to 12-months ECL `－`Transferred to lifetime ECL `－`Transferred to the credit- impaired financial assets `－`The financial assets that have been derecognized New financial assets originated or purchased Write-off Other changes Impairment difference of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non-Performing and Non-Accrual Loans " Ending balance	12-month ECL $ 5,120,615 108,172 (9,638) (17,546) (1,777,525) 1,946,904 - 73,148 - $ 5,444,130	Lifetime ECL`－`not impaired 317,996 (7,645) 17,824 (8,436) (10,593) 4,212 - 360,528 - 673,886	Lifetime ECL`－` impaired 4,196,783 (100,527) (8,186) 25,982 (848,264) 188,335 (2,192,362) 4,208,705 - 5,470,466	Impaired (IFRS9) 9,635,394 - - - (2,636,382) 2,139,451 (2,192,362) 4,642,381 - 11,588,482	Impairment difference of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non- Performing and Non- Accrual Loans" 9,967,448 - - - - - - - (1,888,889) 8,078,559	Total
						19,602,842 - - - (2,636,382) 2,139,451 (2,192,362) 4,642,381 (1,888,889)
						19,667,041

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

c) Other financial assets

		For the six mont	hs ended June 30, 2025	hs ended June 30, 2025	Total
12-month ECL $ - - - - - $ -	Lifetime ECL`－`not impaired - - - - - -	Lifetime ECL`－` impaired 7,946 (9) 12,514 (11,080) - 9,371 For the six mont	Impaired (IFRS9) Impairment difference of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non- Performing and Non- Accrual Loans" 7,946 597 (9) - 12,514 - (11,080) - - (17) 9,371 580 hs ended June 30, 2024
					8,543 (9) 12,514 (11,080) (17)
					9,951
					Total
	Lifetime ECL`－`not impaired - - - - - - -	Lifetime ECL`－` impaired 10,891 (6) 7,063 (9,116) 180 - 9,012	Impaired (IFRS9) 10,891 (6) 7,063 (9,116) 180 - 9,012	Impairment difference of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non- Performing and Non- Accrual Loans" 599 - - - - (24) 575
					11,490 (6) 7,063 (9,116) 180 (24)
					9,587

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

d) Guarantee and commitments

		For the six mont	hs ended June 30, 2025	hs ended June 30, 2025	Total
12-month ECL $ 134,318 (34,172) 23,794 (22,987) - $ 100,953	Lifetime ECL`－`not impaired 511 (17) 21 (293) - 222	Lifetime ECL`－` impaired 47,096 (35) - 4,184 - 51,245 For the six mont	Impaired (IFRS9) Impairment difference of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non- Performing and Non- Accrual Loans" 181,925 229,766 (34,224) - 23,815 - (19,096) - - 56,946 152,420 286,712 hs ended June 30, 2024
					411,691 (34,224) 23,815 (19,096) 56,946
					439,132
					Total
	Lifetime ECL`－`not impaired 1,117 (149) 476 (378) - 1,066	Lifetime ECL`－` impaired 42,703 (850) - 7,034 - 48,887	Impaired (IFRS9) 203,068 (44,546) 41,141 (19,388) - 180,275	Impairment difference of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non- Performing and Non- Accrual Loans" 174,033 - - - 31,065 205,098
					377,101 (44,546) 41,141 (19,388) 31,065
					385,373

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

e) Debts investments

Beginning balance Additions Derecognition Other changes Ending balance Beginning balance Additions Derecognition Other changes Ending balance	For the six months ended June 30, 2025 12-month ECL Lifetime ECL `－`not impaired Lifetime ECL `－`impaired Total $ 160,053 - - 160,053 51,697 - - 51,697 (38,793) - - (38,793) (14,372) - - (14,372) $ 158,585 - - 158,585 For the six months ended June 30, 2024 12-month ECL Lifetime ECL `－`not impaired Lifetime ECL `－`impaired Total $ 180,969 - - 180,969 61,633 - - 61,633 (57,050) - - (57,050) 1,668 - - 1,668 $ 187,220 - - 187,220	For the six months ended June 30, 2025 12-month ECL Lifetime ECL `－`not impaired Lifetime ECL `－`impaired Total $ 160,053 - - 160,053 51,697 - - 51,697 (38,793) - - (38,793) (14,372) - - (14,372) $ 158,585 - - 158,585 For the six months ended June 30, 2024 12-month ECL Lifetime ECL `－`not impaired Lifetime ECL `－`impaired Total $ 180,969 - - 180,969 61,633 - - 61,633 (57,050) - - (57,050) 1,668 - - 1,668 $ 187,220 - - 187,220	For the six months ended June 30, 2025 12-month ECL Lifetime ECL `－`not impaired Lifetime ECL `－`impaired Total $ 160,053 - - 160,053 51,697 - - 51,697 (38,793) - - (38,793) (14,372) - - (14,372) $ 158,585 - - 158,585 For the six months ended June 30, 2024 12-month ECL Lifetime ECL `－`not impaired Lifetime ECL `－`impaired Total $ 180,969 - - 180,969 61,633 - - 61,633 (57,050) - - (57,050) 1,668 - - 1,668 $ 187,220 - - 187,220
	12-month ECL $ 180,969 61,633 (57,050) 1,668 $ 187,220	Lifetime ECL `－`not impaired - - - - -	Lifetime ECL `－`impaired - - - - -

14) Collateral management policy
a) Collaterals are recognized under the account of other assets per the rules of “Regulations Governing the Preparation of Financial Reports by Public Banks”.
b) Details were as follows:

Collaterals refer to the collaterals provided by clients as guarantee which are undertaken through public auction when the debtor is not able to fulfill its obligation. The collaterals assumed are recognized using the prices undertaken per the rules of “Regulations Governing the Preparation of Financial Reports by Public Banks” and measured by the book value or the fair value deducted by cost of sale, whichever is lower, at the end of the period. Collaterals will be sold when they are available to be sold and the proceeds received will be used to reduce the book amount of collaterals.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Liquidity risk

1) The origin and definition of liquidity risk

Liquidity risk refers to the potential financial loss results from the inability to liquidate assets or obtain finance to fulfill the financial obligation which is going to mature with sufficient fund, such as early rescind of time deposits, the channels and terms to call loan from other bank are deteriorated due to the influence of specific markets and the default of loan customers worsen and it is harder for the Bank to receive payments and liquidate financial instruments. The abovementioned situations may diminish the source of cash for the Bank to undertake loan business, trades and investment activities. Under some extreme circumstances, the lack of liquidity may increase the potential possibility of reduction of the overall position of consolidated financial statement, sale of assets and inability to fulfill loan obligation. Liquidity risk is an inherent risk of bank operations and is influenced by specific or overall events in various markets. Those events include but not limited to: Credit event, merger or buyout, systematic strike and natural disaster.

2) The management policy, process and measurement of liquidity risk
a) Policy
- i) In accordance with the target and limit for liquidity risk management approved by the board of directors and monitor all liquidity risk positions.
- ii) Established “Directions Governing the Capital Liquidity Risk Management of Taiwan Business Bank” and “Remarks Governing the Capital Liquidity Risk Management of Taiwan Business Bank” to serve as guidance to effectively control capital liquidity risk.
- iii) Overseas branches shall regulate the code of conduct for liquidity risk management based on business characteristics and the regulations of local authorities. After being approved by the general manager, the Risk Management Department will be in charge of monitoring liquidity risk.
b) Process
- i) Finance Department is in charge of daily capital deployment to ensure that the capital is sufficient to cope with various demands for capital.
- ii) Risk Management Department is in charge of the identification, measurement, supervision and control of capital liquidity risk to establish a firm operation process and structure.
- iii) Risk Management Department reports the result of capital liquidity risk measurement to the Assets and Liabilities Management Committee on a monthly basis and reports the results of capital liquidity risk and pressure test to the board of directors quarterly.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

c) Measurement
- i) Maturity gap: To place the inflows and outflows of capital into various time zones accordingly based on the remaining days to maturity and calculate the gap of capital of each time zone in order to measure the capital deficiency of each time zone.
- ii) Loan-deposit ratio: To calculate the deposits the Bank received which are used to conduct loan business. In other words, the percentage of the total loan amount accounts for the total deposit amount.
- iii) Capital concentration and stability: In order to prevent the Bank from overrelying on single trade counterparty, product or market, the Bank observes several aspects such as the changes in large time deposit customers, the percentage of demand deposits and the continuity of deposits.
- iv) Pressure test: Except for monitoring the capital demand under normal circumstances, the Bank conducts pressure test regularly in order to evaluate the capital liquidity under abnormal circumstances and ensure that the Bank is equipped with sufficient capital.
3) Financial assets possessed for managing liquidity risk and maturity analysis for nonderivative financial liability
a) Financial assets possessed for managing liquidity risk

The Bank and subsidiaries possesses cash and other high liquidity interest yielding assets to cope with payment obligations and potential emergent capital demands in the market. The assets possessed for managing liquidity risk include cash and cash equivalent, due from the Central Bank and call loans to banks, financial assets at fair value through profit or loss, discounts and loans, financial assets measured at fair value through other comprehensive income and investment in debt instruments at amortized cost.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

b) Maturity analysis for non-derivative financial liabilities

The table below shows the cash outflows from the non-derivative financial liabilities which are possessed by the Bank and subsidiaries based on the remaining days from the consolidated financial statement date to the contract maturity date. The amount disclosed is based on the cash flows of the contracts.

Major matured cash outflow Deposits from the Central Bank and banks Overdrafts on banks Call loans from the Central Bank and banks Due to the Central Bank and banks Financial liabilities designated at fair value through profit or loss Notes and bonds issued under repurchase agreement Interest payable Deposits transferred from Chunghwa Post Co., Ltd. Demand deposits Time deposits Remittance Bank notes payable Cumulative earnings on appropriated loan fund Lease liabilities Major matured cash outflow Deposits from the Central Bank and banks Overdrafts on banks Call loans from the Central Bank and banks Due to the Central Bank and banks Financial liabilities designated at fair value through profit or loss Notes and bonds issued under repurchase agreement Interest payable Deposits transferred from Chunghwa Post Co., Ltd. Demand deposits Time deposits Remittance Bank notes payable Cumulative earnings on appropriated loan fund Lease liabilities			June 30,	2025
	0-30 days $ 1,192,441,516 280,788 424,591 38,285,986 736,800 - 444,896 1,942,872 10,000,000 987,280,031 152,699,300 295,598 - 1,250 49,404	31-90 days 262,467,090 - - 11,402,754 400,000 - 136,367 2,547,100 30,000,000 - 216,601,521 - 1,300,000 250 79,098	91 days-1 year 1-5 years 665,537,673 79,889,497 - - - - 3,639,949 - 553,222 - - - 660,273 - 3,724,217 132,153 150,099,335 - - - 505,521,831 45,475,895 - - 1,000,000 32,910,000 63,000 759,750 275,846 611,699 December 31, 2024		Over 5 years Total 27,806,750 2,228,142,526 - 280,788 - 424,591 - 53,328,689 - 1,690,022 8,565,654 8,565,654 - 1,241,536 42 8,346,384 - 190,099,335 - 987,280,031 7,262 920,305,809 - 295,598 18,000,000 53,210,000 1,106,492 1,930,742 127,300 1,143,347
	0-30 days $ 1,200,253,116 500,131 596,856 35,229,219 - - 861,942 1,402,758 21,000,000 977,409,931 162,428,286 748,271 - 4,501 71,221	31-90 days 240,489,084 - - 15,629,951 142,598 - 399,202 2,256,680 18,099,335 - 203,639,278 - 250,000 3,250 68,790	91 days-1 year 638,697,624 - - 1,642,180 1,300,908 - 749,964 4,858,961 113,000,000 - 515,474,960 - 1,300,000 79,250 291,401	1-5 years 96,711,654 - - - - - - 137,701 35,000,000 - 44,137,180 - 15,910,000 804,000 722,773	Over 5 years Total 47,721,491 2,223,872,969 - 500,131 - 596,856 - 52,501,350 - 1,443,506 9,927,272 9,927,272 - 2,011,108 32 8,656,132 - 187,099,335 - 977,409,931 3,946 925,683,650 - 748,271 36,000,000 53,460,000 1,637,131 2,528,132 153,110 1,307,295

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Major matured cash outflow Deposits from the Central Bank and banks Overdrafts on banks Call loans from the Central Bank and banks Due to the Central Bank and banks Financial liabilities designated at fair value through profit or loss Notes and bonds issued under repurchase agreement Interest payable Deposits transferred from Chunghwa Post Co., Ltd. Demand deposits Time deposits Remittance Bank notes payable Cumulative earnings on appropriated loan fund Lease liabilities			June 30,	2024
	0-30 days $ 1,133,856,844 518,549 537,622 38,063,891 651,400 - 1,854,132 1,389,293 - 940,322,945 150,111,034 352,515 - 250 55,213	31-90 days 231,917,568 - - 9,329,162 275,000 - 299,056 1,796,065 15,000,000 - 205,134,708 - - 4,750 78,827	91 days-1 year 636,034,005 - - 651,400 621,285 - 669,628 4,553,606 77,099,335 - 551,849,783 - 250,000 59,330 279,638	1-5 years 64,896,815 - - - - - - 118,378 - - 45,902,616 - 17,210,000 923,080 742,741	Over 5 years Total 46,833,232 2,113,538,464 - 518,549 - 537,622 - 48,044,453 - 1,547,685 9,566,928 9,566,928 - 2,822,816 29 7,857,371 - 92,099,335 - 940,322,945 3,261 953,001,402 - 352,515 36,000,000 53,460,000 1,108,578 2,095,988 154,436 1,310,855

4) Derivative financial liabilities maturity analysis
a) Derivative financial instruments settled by net amount

The derivative instruments of the Bank and subsidiaries whose possession are settled by net amount include foreign derivative instruments, such as non-delivery forward contracts and net-delivery foreign exchange option. After evaluation the Bank concluded that the maturity date is the basic element to comprehend all the derivative financial instruments listed in the consolidated financial statement. The amount disclosed is based on the cash flows of the contracts and thus part of the amount disclosed may not correspond to the amount disclosed in the consolidated financial statement. As of June 30, 2025, December 31 and June 30, 2024, maturity analysis for the derivative financial liabilities settled by net amount is as follows:

		June 30,	2025
0-30 days $ -	31-90 days -	91-180 days -	181 days to 1 year 2,176	Over 1 year 70,633	Total
					72,809

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

==> picture [436 x 162] intentionally omitted <==

----- Start of picture text -----

December 31, 2024
181 days Over
0-30 days 31-90 days 91-180 days to 1 year 1 year Total
Derivative financial
liabilities at fair value
through profit or loss
－ Foreign exchange $ - 1,340 - 470 - 1,810
derivative instrument
June 30, 2024
181 days Over
0-30 days 31-90 days 91-180 days to 1 year 1 year Total
Derivative financial
liabilities at fair value
through profit or loss
－ Foreign exchange $ 2,265 1,140 570 - - 3,975
derivative instrument
----- End of picture text -----

b) Derivative financial instruments settled by gross amount

The derivative instruments of the Bank’ s possession settled by gross amount include the following:

i) Foreign exchange derivative financial instrument: Foreign exchange options settled by gross amount, foreign exchange forward contracts and currency swap contracts.
ii) Interest rate derivative financial instruments: interest rate swap contracts.

The table below shows the derivative financial instruments of the Bank and subsidiaries whose possession are settled by gross amount based on the remaining days from the consolidated financial statement date to the contract maturity date. The amount disclosed is based on the cash flow of the contracts and thus part of the amount disclosed may not correspond to the amount disclosed in the consolidated financial statement.

The maturity analysis for derivative financial liabilities settled by gross amount is as follows:

June 30, 2025 Derivative financial instruments at fair value through profit or loss `－`Foreign exchange derivative instruments `－`Cash outflow `－`Cash inflow Total cash outflow Total cash inflow Net cash flow	0-30 days $ 36,283,315 36,636,144 36,283,315 36,636,144 $ (352,829)	31-90 days 12,340,627 12,303,950 12,340,627 12,303,950 36,677	91-180 days 1,591,450 1,657,069 1,591,450 1,657,069 (65,619)	181 days to 1 year 5,544,638 5,465,693 5,544,638 5,465,693 78,945	Over 1 year - - - - -	Total 55,760,030 56,062,856 55,760,030 56,062,856 (302,826)

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2024 Derivative financial instruments at fair value through profit or loss `－`Foreign exchange derivative instruments `－`Cash outflow `－`Cash inflow Total cash outflow Total cash inflow Net cash flow June 30, 2024 Derivative financial instruments at fair value through profit or loss `－`Foreign exchange derivative instruments `－`Cash outflow `－`Cash inflow Total cash outflow Total cash inflow Net cash flow	0-30 days $ 40,045,263 39,427,193 40,045,263 39,427,193 $ 618,070 0-30 days $ 38,177,884 37,870,705 38,177,884 37,870,705 $ 307,179	31-90 days 13,620,759 13,508,692 13,620,759 13,508,692 112,067 31-90 days 13,798,651 13,530,297 13,798,651 13,530,297 268,354	91-180 days 6,163,409 5,944,896 6,163,409 5,944,896 218,513 91-180 days 15,415,968 14,822,744 15,415,968 14,822,744 593,224	181 days to 1 year 5,708,876 5,382,052 5,708,876 5,382,052 326,824 181 days to 1 year 8,921,866 8,615,663 8,921,866 8,615,663 306,203	Over 1 year - - - - - Over 1 year - - - - -	Total 65,538,307 64,262,833
						65,538,307
						64,262,833
						1,275,474
						Total 76,314,369 74,839,409
						76,314,369
						74,839,409
						1,474,960

5) Maturity analysis of off-balance sheet items

31-90 days	91-180 days	181 days to 1 year	Total 81,446,778 18,717,628 8,154,486 32,586,975
472,772 42,158 5,248,125 2,316,152 8,079,207 31-90 days	4,116,638 23,670 945,663 1,406,197 6,492,168 91-180 days	25,811,363 95,801 353,897 3,555,859 29,816,920 181 days to 1 year
			140,905,867
			Total 82,622,791 17,974,642 8,268,607 33,893,522
939,928 76,833 4,773,597 2,002,498 7,792,856	23,097,633 54,394 881,706 1,380,366 25,414,099	4,678,031 95,299 200,717 4,709,858 9,683,905
			142,759,562

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

June 30, 2024 Issued and irrevocable loan commitments Irrevocable credit card loan commitments Letters of credit issued yet unused Other guarantees Total	0-30 days $ 32,072 2,864 2,103,210 2,620,605 $ 4,758,751		31-90 days		91-180 days		181 days to 1 year		Over 1 year 58,933,423 17,039,408 155,002 22,559,620 98,687,453	Total 89,706,208 17,532,436 10,162,658 30,879,722
			2,586,991 188,708 7,296,169 1,312,383 11,384,251		2,558,617 88,402 398,665 1,227,080 4,272,764		25,595,105 213,054 209,612 3,160,034 29,177,805
										148,281,024

6) Maturity analysis of lease contract commitments

The Bank and subsidiaries only has operating lease contract, operating lease commitment refers to, when the Bank and subsidiaries is the lessor and under the irrevocable operating lease conditions, the minimum total future rent payment. Below tables show the maturity analysis of the Bank and subsidiaries operating lease contract commitments:

June 30, 2025 Operating lease income (lessor) December 31, 2024 Operating lease income (lessor) June 30, 2024 Operating lease income (lessor)	Below 1 year $ 2,116 Below 1 year $ 2,299 Below 1 year $ 2,141	1-5 years 6,770 1-5 years 8,033 1-5 years 2,560	Over 5 years Total 5,271 14,157 Over 5 years Total 6,267 16,599 Over 5 years Total 312 5,013

The capital expenditure commitment of the Bank and subsidiaries refers to the contract signed to obtain buildings and equipment. The maturity analysis of the capital expenditure commitment of the Bank and subsidiaries is as follows:

June 30, 2025 Machinery and equipment Transportation equipment Miscellaneous equipment Total December 31, 2024 Machinery and equipment Transportation equipment Miscellaneous equipment Total	Below 1 year $ 1,063,903 2,661 2,852 $ 1,069,416 Below 1 year $ 1,320,333 5,542 6,924 $ 1,332,799	1-5 years - - - - 1-5 years - - - -	Over 5 years - - - - Over 5 years - - - -	Total
				1,063,903 2,661 2,852
				1,069,416
				Total
				1,320,333 5,542 6,924
				1,332,799

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

June 30, 2024 Machinery and equipment Transportation equipment Miscellaneous equipment Total	Below 1 year $ 2,710,542 597 6,838 $ 2,717,977	1-5 years - - - -	Over 5 years - - - -	Total
				2,710,542 597 6,838
				2,717,977

(v) Market risk

1) Definition of market risk

Market risk refers to the possible loss of the Bank’s business in or off the balance sheet results from the disadvantageous fluctuation in market price in terms of interest rates, stock prices, foreign exchange rates and commodity prices.

2) Policies and procedures of market risk management
a) Strategy
- i) To carry out market risk management, achieve operation target and maintain healthy capital adequacy by following “ Directions Governing the Market Risk Management of Taiwan Business Bank” and other relevant regulations.
- ii) Under the risk tolerance approved by the board of directors or board of executive directors, the Bank applies various risk control mechanism to effectively deploy and manage capital in order to maintain the market risk exposure within the tolerable extent and achieve earning target.

b) Policies and procedures

In order to establish the market risk management mechanism and ensure that the market risk is within the tolerable extent, the Bank set up directions governing the market risk management, remarks governing the limit of market risk and financial product valuation procedures as the primary management guidance. Other than what is stated above, the Bank also establish limit control mechanism in terms of trade positions, stop-limit, suspensions and lines of alert based on the operation notices and procedures of different financial instruments, including fix income instruments, equity securities, foreign exchange transaction and derivative financial instruments.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Process for market risk management
a) Risk identification

In accordance with the rules of “ Directions Governing the Market Risk Management of Taiwan Business Bank” , the Bank shall conduct appropriate market risk evaluation and document the process for later review before financial instruments are promoted. The content of evaluation includes risk factors identification, evaluation methods, cost-benefit analysis, market liquidity, risk strategy, adequacy of risk management mechanism and the influence on the Bank for undertaking market risk.

b) Risk measurement
i) Annually based on the business development of transaction units and submit to the board of directors or board of executive directors for approval. For the units which the positions and limits remain unchanged after evaluation, they can put the positions and limits into practice after receiving the approval from the general manager.
ii) The risk measurements (or evaluations) of the financial instruments of the Bank are conducted through different information systems. For the market data and parameters of the models applied for evaluation, they shall be random inspected regularly to determine the rationality.
c) Risk monitoring
i) Valuation reports of various financial instruments are prepared regularly for executives to review and serve as the guidance for daily risk management operation.
ii) All financial transactions are equipped with different regulations in terms of limit of loss and stop-limit. Provided that the valuation loss amount is over the limit, a stop-limit, suspension and subsequent risk control will be executed.
d) Risk report

Risk management department report current market risk management status of the Bank to directors, executive directors and executives to facilitate them to control the risk exposure status and adjust management procedures properly.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) Scope and method of market risk management
a) Foreign exchange risk management
- i) Definition of foreign exchange risk management

Foreign exchange risk refers to the potential profit or loss of the foreign currency financial instruments which results from the transition among fluctuating currencies.

ii) Applicable scope

All the financial instruments which apply to trading book position and banking book position and involve in foreign currencies.

iii) Purpose for foreign exchange risk management

To avoid loss of earnings or deterioration of financial status due to intensive fluctuation of foreign exchange and to increase capital deployment efficiency and business operation integrity.

iv) Procedures of foreign exchange risk management
In order to control foreign exchange transaction risk, the Bank established trade position authorization standard for financial transaction operations, trade units and traders in current regulations. In addition, for non-commercial business foreign exchange operation, all trade units submit the required amounts of position annually based on operation status. Risk management department will evaluated the requirement and submit to the board of directors’ (executive directors) for approval. The demand will be executed after the board of directors approved. For the units which the positions remain unchanged after evaluation, they can put the positions into practice after receiving the approval from the general manager.
The trade units conduct various foreign financial product business, they shall fully understand the content of commodities, the risk tolerance and trade purpose. Trade units shall establish financial products trading strategies based on market status in the meeting every morning and submit the risk-benefit evaluation in the meeting minutes for the department heads to review. The trading shall follow the relevant authorization rules of the Bank and the stop-limit of all trade positions shall be executed reliably.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

v) Process of foreign exchange risk management
Identification and measurement
- a. Risk Management department established risk factor chart based on different financial transactions to effectively identify risk factors and market risk resources. In addition, the financial transactions which the Bank and subsidiaries conducts deal with simple type financial products. For complex financial products, the Bank and subsidiaries conducts back-to-back hedge covering to effectively avoid market risk.
- b. Risk Management department uses Greeks to measure the influence level of exchange rate for held-for-trading spot exchange and exchange rate derivative and setup Greek's sensitivity allowance, according to the yearly demand of trade units, the state of utilization, and monitor the load of fluctuation of exchange rate in each acceptable range.
- c. Positions of the trading book shall be evaluated daily where the positions of the banking book shall be evaluated monthly. When there are public quotes for financial instruments, the quotes shall be the prior evaluation prices. If the financial instruments are evaluated by models, then they shall be evaluated by mathematic models prudently and the assumptions and parameters of the models shall be reviewed regularly.
Monitoring and report
- a. When the evaluation loss of non-commercial foreign exchange transactions is over the limit, the trade units shall execute a stoplimit per the regulations. If the loss amount reaches the suspension warning line or suspension limit of the financial transaction, risk management units shall report to the general manager. Provided that the loss amount reaches the annual suspension line, risk management department shall report to the board of directors or executive directors.
- b. Reports of operation results shall be prepared and submitted to the department heads for approval on a daily basis.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

b) Equity security risk management
i) Definition of equity security risk

The market risks of the equity securities possessed by the Bank include the individual risk results from the market price fluctuation of individual equity security and the general market risk results from overall market price fluctuation.

ii) Applicable scope

Financial instruments similar to equity security in all trading books.

iii) Purpose of equity security risk management

To avoid loss of earnings or deterioration of financial status due to intensive fluctuation of equity securities and to increase capital deployment efficiency and business operation integrity.

iv) Procedures of equity security risk management
All trade units submit the required amounts of position annually base on operation status. Risk management department will evaluate the requirement and submit to the board of directors or executive directors. The demand will be executed after approved by the board of directors.
The trade units shall predict the possible trend of domestic stock market based on the information of foreign and domestic security markets so as to set up the operation strategies and directions. The traders shall pay close attention to the market trend when the market opens so as to conduct security transactions and the operations as well as the meeting minutes shall be submitted to the department heads to review.
v) Process of equity security risk management
Identification and measurement
- a. The risk management department apply Value at Risk models to measure the market risk of equity security investment. Furthermore, based on the trade units’ operation demand and the risk limit established by the Bank’ s risk tolerance, the risk management units effectively control the variation of risk factors under an acceptable extent.
- b. Trading book position shall be evaluated daily. When there is a public quote in the market, the quote shall be adopted as the prior evaluation price. If the transaction is in secondary market and the liquidity is high, the closing price can be adopted as the evaluation price. If the financial instruments are evaluated by models, then they shall be evaluated by mathematic models prudently and the assumptions and parameters of the models shall be reviewed regularly.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

  2. Monitoring and report

     - a. When the evaluation loss of equity security investment is over the limit, the trade units shall execute a stop-limit per regulations. If the loss amount reaches the suspension warning line or suspension limit of the financial transaction, risk management units shall report to the general manager. Provided that the loss amount reaches the annual suspension line, risk management department shall report to the board of directors or executive directors.

     - b. Transaction reports shall be prepared and submitted to the department heads for approval on a daily basis. And the investment gains or losses shall report to the board of directors or executive directors regularly for future reference.

c) Interest rate risk management
i) Definition of interest rate risk

Interest rate risk refers to the price decline of the Bank’s financial products which contain interest risk factors due to the disadvantageous changes in interest rate.

ii) Applicable scope

Financial instruments which contain interest rate factors in all trading books.

iii) Purpose of interest rate risk management

To avoid loss of earnings or deterioration of financial status due to intensive fluctuation of interest rate and to increase capital deployment efficiency and business operation integrity.

iv) Procedures of interest rate risk management
In order to control interest rate risk, the Bank established trade position authorization standard for financial transaction operations, trade units and trade counterparties in current regulations. In addition, for the positions held for trading, all trade units submit the required amounts of position annually based on operation status. Risk management department will evaluate the requirement and submit to the board of directors or executive directors for approval. The demand will be executed after the board of directors approved.
The trade units shall consider safety, liquidity and profitability and gather market information to assess the potential risk and benefit. In additional, the trade units shall choose investment target prudently through analyzing the issuers’ credit, financial status, country risks and interest rate trends.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

v) Process of interest rate risk management
1. Identification and measurement
  - a. The risk management department establish risk factor charts base on different financial transaction to effectively identify risk factors and market risk resources. In addition, the financial transactions which the Bank conducts deal with simple type financial products. For complex financial products, the Bank conducts back-to-back hedge covering to effectively avoid market risk.
  - b. Position of the trading book shall be evaluated daily. When there are public quotes for financial instruments, the quotes shall be the prior evaluation prices. If the financial instruments are evaluated by models, then they shall be evaluated by mathematic models prudently and the assumptions and parameters of the models shall be reviewed regularly.
2. Monitoring and report
  - a. The risk management department apply DV01 to measure to what extent the trading book bond positions are influenced by the interest rate risk and set up interest rate sensitivity limit base on the requirements of the trade units and the risk tolerance of the Bank annually.
  - b. The trade units shall prepare the income assessment tables of trade positions and traders for the department heads to review. In addition, when the evaluation loss of the position is over the limit, the trade units shall execute a stop-limit per the regulations. If the loss amount reaches the suspension warning line or suspension limit of the financial transaction, risk management department shall report to the general manager. Provided that the loss amount reaches the annual suspension line, risk management units shall report to the board of directors or executive directors.
d) Concentration management
i) The trade counterparties of the Bank are mostly financial institutions. To avoid the risk being over concentrated and enhance credit risk management, the Bank established financial institution credit risk limit based on the world ranking of Level 1 capital and credit ratings from The Banker. The trade units shall also pay attention to the changes of the credit status of individual financial institution as well as the changes of the national credit rating to conduct the transaction prudently.
ii) For equity security investments, the Bank set up limits for single institution and single related party.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

5) Interest rate risk management of the banking book
a) The definition and management purpose for the interest rate risk of the banking book
- i) The interest rate risk of the banking book refers to the negative effect towards the future net interest income or economic value of equity results from the fluctuation of interest rate. Net Interest Income (hereafter NII) is the total amount of interest revenue deducted by the total amount of interest expense; Economic Value of Equity (hereafter EVE) is the total discounted future cash inflow from assets deducted by the total discounted future cash outflow from liabilities.
- ii) The management purpose of the interest rate risk management of the banking book is to control the negative effect from the interest rate risk fluctuation towards NII or EVE within the approved limit extent.
b) The process for the interest rate risk management of the banking book
- i) Identification and measurement

When the Bank conducts interest rate related products, it identifies the reprising risk, yield curve risk, basis risk and option characteristic risk and measures the possible influence on the earnings and economic value results from interest rate fluctuation.

ii) Monitoring and report

The Bank established limits of the ratio between interest-rate-sensitivity assets and interest-rate-sensitivity liabilities, the effect to NII in 1 year when the market interest rate parallel changes 1 BP and the effect to EVE when the market interest rate changes in the six interest rate stress scenarios set by the Bank Association of the Republic of China (IRRBB) to control the banking book interest rate risk. The results of interest rate risk measurement are reported to the Assets and Liabilities Management Committee monthly and to the board of directors or executive directors quarterly. When the measurement result is over the limit, relevant units shall be convened to establish responding plan and the plan shall be submitted to the Assets and Liabilities Management Committee for discussion. After the plan is approved by the general manager, it shall be executed by the relevant business units and report to the board of directors or executive directors.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

6) Value at Risk
a) Description of Value at Risk

Value at Risk (VaR) is a statistical amount used to evaluate the maximum possible loss of portfolio results from the changes of market risk factors within a certain period of time and a fixed confidence interval.

b) Value at Risk models and assumptions

In order to enhance the market risk control operation, the Bank established quantified indices of market risk for the equity security position of the trading book. Based on the historical information of the last 1 year and applies Historical Simulation Method (with the confidence interval being 99% and the duration of possession being 1 day), the Bank calculates and monitors the trend of Value at Risk.

c) The limit of Value at Risk model

Value at Risk is a tool to measure market risk under normal circumstance. The limits of the model are listed below:

i) Value at Risk cannot reflect the losses result from other type of risks, such as credit risk and liquidity risk.
ii) Value at Risk measures the possible loss of the position on hand at the end of the transaction day, but it cannot reflect the distribution of the part which actual loss exceeds Value at Risk.
iii) Value at Risk model is based on historical data to evaluate the amount, and therefore it may not be able to predict the future changes of risk factors, especially for those exceptions result from significant market fluctuation.

(Continued)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

7) Foreign exchange risk disclosure and sensitivity analysis
a) Foreign exchange risk exposure
- i) Significant net positions of foreign currencies (Market risk)

Significant net positions of foreign currencies (Market risk)

June 30, 2025

Currency USD JPY AUD CNY GBP	Foreign currency amount (in thousands) NT$ amount $ 358,772 10,447,441 2,050,990 413,890 17,919 340,819 13,149 53,464 521 20,824

Significant net positions of foreign currencies (Market risk)	Significant net positions of foreign currencies (Market risk)
December 31, 2024
Currency USD JPY AUD CNY ZAR	Foreign currency amount (in thousands) NT$ amount $ 363,838 11,928,429 2,214,548 464,169 15,708 320,757 66,303 297,303 64,162 111,899

Significant net positions of foreign currencies (Market risk)	Significant net positions of foreign currencies (Market risk)
June 30, 2024
Currency USD JPY AUD CNY ZAR	Foreign currency amount (in thousands) NT$ amount $ 361,939 11,788,353 1,873,362 378,981 17,360 374,455 67,733 302,225 51,925 91,284

Note 1: Main foreign currencies are the top five foreign currencies ranked in NTD value.

Note 2: Net foreign currency is the absolute value of the net positions of each foreign currency.

(Continued)

100

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

ii) Assets and liabilities of foreign currency

June 30, 2025

	June 30, 2025	June 30, 2025
Currency	Monetary financial assets Foreign currency amount (in thousands) Spot rate NTD amount $ 14,275,826 29.1200 415,712,060 5,217,403 19.0200 99,235,005 8,963,671 4.0660 36,446,288 152,790,147 0.2018 30,833,052 7,455,730 3.7090 27,653,303 220,567 34.1400 7,530,157 5,606,064 1.6350 9,165,915 29,815 39.9700 1,191,706 46,266 17.6800 817,983 16,286 21.2700 346,403 26,093 22.8500 596,225 3,610 36.4450 131,566 352,019 0.8998 316,747 - - 32,149		Monetary financial liabilities
	Foreign currency amount (in thousands) $ 14,275,826 5,217,403 8,963,671 152,790,147 7,455,730 220,567 5,606,064 29,815 46,266 16,286 26,093 3,610 352,019 -	Spot rate 29.1200 19.0200 4.0660 0.2018 3.7090 34.1400 1.6350 39.9700 17.6800 21.2700 22.8500 36.4450 0.8998 -	Foreign currency amount (in thousands) 14,043,358 5,070,911 6,647,000 151,047,774 6,773,028 220,589 5,606,371 29,817 46,227 16,293 26,208 3,697 354,425 -	Spot rate NTD amount 29.1200 408,942,571 19.0200 96,448,727 4.0660 27,026,704 0.2018 30,481,441 3.7090 25,121,161 34.1400 7,530,908 1.6350 9,166,417 39.9700 1,191,785 17.6800 817,293 21.2700 346,552 22.8500 598,853 36.4450 134,737 0.8998 318,912 - 32,530
USD AUD CNY JPY HKD EUR ZAR GBP NZD CAD SGD CHF THB Others (Note)

Note: Consolidated disclosure is applied for other currencies not over $100,000.

	December 31, 2024	December 31, 2024
Currency	Monetary financial assets Foreign currency amount (in thousands) Spot rate NTD amount $ 14,283,789 32.7850 468,294,030 5,825,840 20.4200 118,963,653 7,626,537 4.4840 34,197,393 152,960,726 0.2096 32,060,568 6,923,917 4.2220 29,232,778 299,583 34.1400 10,227,764 6,435,608 1.7440 11,223,700 24,948 41.1800 1,027,359 42,106 18.5000 778,961 16,029 22.8600 366,423 12,582 24.1400 303,729 179,829 0.9637 173,301 - - 126,472		Monetary financial liabilities
	Foreign currency amount (in thousands) $ 14,283,789 5,825,840 7,626,537 152,960,726 6,923,917 299,583 6,435,608 24,948 42,106 16,029 12,582 179,829 -	Spot rate 32.7850 20.4200 4.4840 0.2096 4.2220 34.1400 1.7440 41.1800 18.5000 22.8600 24.1400 0.9637 -	Foreign currency amount (in thousands) 13,819,421 5,688,882 7,371,945 151,370,493 6,294,779 299,590 6,434,227 24,862 42,052 16,014 12,623 179,037 -	Spot rate NTD amount 32.7850 453,069,731 20.4200 116,166,970 4.4840 33,055,801 0.2096 31,727,255 4.2220 26,576,557 34.1400 10,228,003 1.7440 11,221,292 41.1800 1,023,817 18.5000 777,962 22.8600 366,080 24.1400 304,719 0.9637 172,538 - 129,117
USD AUD CNY JPY HKD EUR ZAR GBP NZD CAD SGD THB Others (Note)

Note: Consolidated disclosure is applied for other currencies not over $100,000.

(Continued)

101

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

June 30, 2024

	June 30, 2024	June 30, 2024
Currency	Monetary financial assets Foreign currency amount (in thousands) Spot rate NTD amount $ 14,034,240 32.5700 457,095,202 5,596,818 21.5700 120,723,364 4,780,487 4.4620 21,330,534 164,523,292 0.2023 33,283,062 5,880,789 4.1710 24,528,771 272,596 34.8300 9,494,519 4,732,451 1.7580 8,319,649 46,623 41.1500 1,918,536 39,176 19.7500 773,726 14,007 23.7300 332,386 13,999 23.9700 335,556 2,804 36.1850 101,463 46,726 3.0600 142,982 181,442 0.8877 161,066		Monetary financial liabilities
	Foreign currency amount (in thousands) $ 14,034,240 5,596,818 4,780,487 164,523,292 5,880,789 272,596 4,732,451 46,623 39,176 14,007 13,999 2,804 46,726 181,442	Spot rate 32.5700 21.5700 4.4620 0.2023 4.1710 34.8300 1.7580 41.1500 19.7500 23.7300 23.9700 36.1850 3.0600 0.8877	Foreign currency amount (in thousands) 13,602,413 5,470,256 4,543,001 162,809,147 5,294,564 272,457 4,731,059 46,608 38,860 14,048 13,835 2,834 46,635 183,447	Spot rate NTD amount 32.5700 443,030,608 21.5700 117,993,422 4.4620 20,270,869 0.2023 32,936,290 4.1710 22,083,626 34.8300 9,489,677 1.7580 8,317,202 41.1500 1,917,919 19.7500 767,485 23.7300 333,359 23.9700 331,625 36.1850 102,548 3.0600 142,703 0.8877 162,846
USD AUD CNY JPY HKD EUR ZAR GBP NZD CAD SGD CHF SEK THB

b) Foreign exchange risk sensitivity analysis (Change by 1%)

Foreign exchange risk sensitivity analysis is the analysis that given other conditions remain the same, the influence on profit or loss and equity when each respective currency depreciate or appreciate by 1%.

June 30, 2025

		June 30,	2025	2025
Currency USD AUD HKD JPY GBP SGD ZAR SEK CHF CAD THB EUR NZD CNY Total	Depreciate	by 1% Equity (67,672) (31,623) (28,474) (3,574) - - - - - - - - - - (131,343)	Appreciate by 1%
	Income $ (14,221) 3,817 2,916 49 (14) 22 4 4 32 2 22 7 (18) (63,053) $ (70,431)		Income 14,221 (3,817) (2,916) (49) 14 (22) (4) (4) (32) (2) (22) (7) 18 63,053 70,431	Equity 67,672 31,623 28,474 3,574 - - - - - - - - - -
				131,343

(Continued)

102

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		December 31, 2024	December 31, 2024	December 31, 2024
Depreciate		by 1% Equity (82,652) (32,046) (29,741) (3,441) - - - - - - - - - (147,880) June 30,	Appreciate by 1%
Income $ (3,581) 4,119 3,301 51 (36) 6 (25) 26 (3) (8) 2 (21) (59,714) $ (55,883)			Income 3,581 (4,119) (3,301) (51) 36 (6) 25 (26) 3 8 (2) 21 59,714 55,883 2024	Equity 82,652 32,046 29,741 3,441 - - - - - - - - -
				147,880

	Depreciate	by 1% Equity (77,393) (31,664) (27,215) (3,175) - - - - - - - - - - (139,447)	Appreciate by 1%
			Income (2,467) (4,377) (3,278) 295 6 44 26 3 (11) (10) (18) 64 70 59,501 49,848	Equity 77,393 31,664 27,215 3,175 - - - - - - - - - -
				139,447

(Continued)

103

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

8) Interest rate risk disclosure and sensitivity analysis
a) Interest rate sensitivity analysis

The assumption of interest rate sensitivity analysis is, under the circumstance that other conditions remain the same, the yield of the market increase or decrease by 1 basis point (1 bp).

June 30,	2025	2025
Interest rate increases by 1 bp Income Equity $ (1,943) (1,334) - (79,178) - (34,005) - (1,638) - (103) - (309) - (854) - (61) $ (1,943) (117,482)	Interest rate decreases by 1 bp
Income $ (1,943) - - - - - - - $ (1,943)	Income 1,943 - - - - - - - 1,943	Equity 1,334 79,178 34,005 1,638 103 309 854 61
		117,482

December 31, 2024	December 31, 2024	December 31, 2024
Interest rate increases by 1 bp Income Equity $ (1,808) (1,563) - (79,763) - (28,514) - (1,754) - (129) - (215) - (964) - (83) $ (1,808) (112,985)	Interest rate decreases by 1 bp
Income $ (1,808) - - - - - - - $ (1,808)	Income 1,808 - - - - - - - 1,808	Equity 1,563 79,763 28,514 1,754 129 215 964 83
		112,985

(Continued)

104

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

June 30,	2024	2024
Interest rate increases by 1 bp Income Equity $ (1,125) (1,812) - (79,285) - (27,803) - (1,873) - (169) - (245) - (1,125) - (102) $ (1,125) (112,414)	Interest rate decreases by 1 bp
Income $ (1,125) - - - - - - - $ (1,125)	Income 1,125 - - - - - - - 1,125	Equity 1,812 79,285 27,803 1,873 169 245 1,125 102
		112,414

b) Sensitivity analysis of expected net revenue/Sensitivity of equity in terms of interest rate fluctuation

Scenario Interest rate increases by 100 bp Interest rate decreases by 100 bp Scenario Interest rate increases by 100 bp Interest rate decreases by 100 bp Scenario Interest rate increases by 100 bp Interest rate decreases by 100 bp		June 30,
	Effect on NII
	TWD 1,632,740 (2,507,052)
	Effect on NII	in 1 year USD (25,222) 20,755 June 30,
	TWD 1,732,841 (2,529,293)
	Effect on NII	in 1 year USD (21,927) 20,860
	TWD 1,775,349 (2,635,704)

(Continued)

105

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

9) Equity security risk disclosure and sensitivity analysis
a) Equity security sensitivity analysis (Changes by 1%)

The assumption of equity security sensitivity analysis is, under the circumstance that other conditions remain the same, the price of equity security increased or decreased by 1%.

Change Equity security price increases by 1 % Equity security price decreases by 1 % Change Equity security price increases by 1 % Equity security price decreases by 1 %	Currency TWD TWD Currency TWD TWD		June 30, 2025
			Income Equity 468 - (468) - June 30, 2024

			Income Equity 10,030 - (10,030) -

b) Value at Risk of equity security

Value at Risk	From July 1, 2024 to June 30, 2025	From July 1, 2024 to June 30, 2025	From July 1, 2024 to June 30, 2025
	Average	Maximum	Minimum
Equity security risk	3,616	26,623	-

Value at Risk	For the year ended December 31, 2024
	Average	Maximum	Minimum
Equity security risk	11,128	28,200	-

Value at Risk	From July 1, 2023 to June 30, 2024
	Average	Maximum	Minimum
Equity security risk	14,600	28,200	6,614

(vi) Transferred financial assets that are not fully derecognized

The transactions, relating to transferred financial assets not qualifying for full derecognition, the Bank and subsidiaries conducts during daily operation mostly involve securities lending in accordance to repurchase agreements. Since the right to receive contractual cash flow has been transferred to others and the Bank and subsidiaries obligation to repurchase the transferred assets for a fixed price at a future date is recognized under liability, for these transactions, the Bank and subsidiaries cannot use, sell or pledge those transferred financial assets in availability period, the Bank and subsidiaries has interest rate risk and credit risk, the said transferred assets are not fully derecognized.

As of June 30, 2025, December 31 and June 30, 2024, there were not any financial assets of the Bank that are not fully derecognized.

(Continued)

106

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(vii) Offsetting financial assets and financial liabilities

The Bank and subsidiaries has an exercisable master netting arrangement or similar agreement in place with counterparties. When both parties reach a consensus regarding net settlement, the aforesaid exercisable master netting arrangement or similar agreement can be net settled by offsetting financial assets and financial liabilities. If not, the transaction can be settled at total amount. In the event of default involving one of the parties, the other party can have the transaction net settled.

The following tables present the aforementioned offsetting financial assets and financial liabilities:

			June 30, 2025	June 30, 2025
	Financial assets un	de	r offsetting or general agreement of ne		t	amount settlement	o	r similar norm
Item	Gross amounts of recognized financial assets (a)	f	Gross amounts of inancial liabilities offset in the balance sheet (b)	Net amount of financial assets presented in the balance sheet (c)=(a)-(b)		Amounts not balance	s s	et off in the heet (d) Cash collateral received 102,395
						Financial instruments (Note)
Derivative financial instruments	$ 1,150,264		-	1,150,264		637,972

			June 30, 2025	June 30, 2025	June 30, 2025
F	inancial liabilities u	n	der offsetting or general agreement of n			e	t amount settlemen	t	or similar norm
Item	Gross amounts of recognized financial liabilities (a)		Gross amounts of financial assets offset in the balance sheet (b)	f	Net amount of inancial liabilities presented in the balance sheet (c)=(a)-(b)		Amounts not balance	s s	et off in the heet (d) Cash collateral pledged 5,619,844
							Financial instrument (Note)
Derivative financial instruments	$ 76,462		-		76,462		-

			December 31, 2024	December 31, 2024
	Financial assets un	de	r offsetting or general agreement of ne		t	amount settlement	or similar norm
Item	Gross amounts of recognized financial assets (a)	f	Gross amounts of inancial liabilities offset in the balance sheet (b)	Net amount of financial assets presented in the balance sheet (c)=(a)-(b)		Amounts not balance	set off in the sheet(d) Cash collateral received 2,074,252
					i	Financial nstruments (Note)
Derivative financial instruments	$ 1,235,990		-	1,235,990		612,147

				December 31, 2024	December 31, 2024	December 31, 2024					Net amount (e)=(c)-(d) (2,467,540)
F	inancial liabilities u		n	der offsetting or general agreement of n			e	t amount settlemen	t or similar norm
Item	Gross amounts of recognized financial liabilities (a)			Gross amounts of financial assets offset in the balance sheet (b)	f	Net amount of inancial liabilities presented in the balance sheet (c)=(a)-(b)		Amounts not balance	set off in the sheet(d) Cash collateral pledged 2,577,622
								Financial instruments (Note)
Derivative financial instruments	$ 110,082			-		110,082 June 30, 2024		-
											Net amount (e)=(c)-(d) (1,258,767)
		Financial assets un	de	r offsetting or general agreement of ne			t	amount settlement	o	r similar norm
Item		Gross amounts of recognized financial assets (a)	f	Gross amounts of inancial liabilities offset in the balance sheet (b)		Net amount of financial assets presented in the balance sheet (c)=(a)-(b)		Amounts not balance	s s	et off in the heet (d) Cash collateral received 1,602,025
								Financial instruments (Note)
Derivative financial instruments	$ 1,072,890			-		1,072,890		729,632

(Continued)

107

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

			June 30, 2024	June 30, 2024
F	inancial liabilities u	n	der offsetting or general agreement of n		e	t amount settlemen	t	or similar norm
Item	Gross amounts of recognized financial liabilities (a)		Gross amounts of financial assets offset in the balance sheet (b)	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b)		Amounts not balance	s s	et off in the heet (d) Cash collateral pledged 2,016,954
						Financial instruments (Note)
Derivative financial instruments	$ 99,279		-	99,279		-

Note: Master netting arrangements and non-cash financial collaterals are included.

(ap) Capital Management

(i) The Bank takes business development and risk control into consideration and calculates capital adequacy per “ Regulations Governing the Capital Adequacy Ratio and Capital Category of Banks” and “ Calculation Methods and Forms of Proprietary Capital and Risk Capital of Banks”. The ratio between proprietary capital and risk capital shall remain above the regulated minimum ratio.
(ii) In order to maintain adequate capital and reach a balance between risk control and business development, the Bank established “Directions Governing Capital Adequacy” as the guidance for controlling capital adequacy. The scope of the directions includes, except for the least capital requirements for credit risk, market risk and operation risk, significant risk such as banking book interest rate risk, liquidity risk and concentration risk. In addition, in order to link business strategies, capital and risk management, the Bank sets up capital management plan annually for the president’s approval and reports to Risk Management Committee and the board of directors quarterly about relevant risks and capital control status.
(iii) The Bank identifies, measures, monitors and reports various risks based on the directions, notices and relevant rules of competent authority regarding credit risk, market risk, operation risk, interest rate risk of the banking book, and liquidity risk so as to be familiar with current business environment and monitors and adjusts capital adequacy effectively.
(iv) To cope with the implementation of new Basel Accord, the Bank set up complete risk management system, risk management operation tracking procedures to provide the management with appropriate risk management information for making decisions. Therefore, the Bank is able to maintain adequate capital within the tolerable extent and to ensure the provision of proprietary capital of the Bank corresponds with the overall operating risk characteristics of the Bank.
1) Tier 1 capital
- a) Common stock equity: The item includes common stock deducted by treasury stock, goodwill and other intangible assets, deferred tax assets based on future profit status of the Bank, unrealized gain on financial assets measured at fair value through other comprehensive income, operating reserve and deficiency of allowance for bad debts, real estate retained earning increment arising from applying the fair value or the revaluation reserve as the deemed cost when first adopting IFRSs, and 25% of the major investment on financial related business.

(Continued)

108

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

b) Other Tier 1 capital: 25% of the perpetual non-accumulated subordinated financial debentures deducted by the major investment on financial related business.
2) Tier 2 capital

The item includes perpetual accumulated subordinated financial debentures, long term subordinated debenture, real estate retained earning increment arising from applying the fair value or the revaluation reserve as the deemed cost when first adopting IFRSs, 45% of unrealized gain on financial assets measured at fair value through other comprehensive income, and 50% of the major investment on financial related business.

Item	Month/Year	Month/Year	June 30, 2025	December 31, 2024	June 30, 2024
Eligible capital	Common stock equity		130,779,507	126,589,902	117,983,304
	Other tier 1 capital		18,000,000	18,000,000	18,000,000
	Tier 2 capital		39,965,414	45,576,621	45,578,601
	Eligible Capital		188,744,921	190,166,523	181,561,905
Risk- weighted assets	Credit risk	Standardized approach	1,315,507,609	1,323,138,665	1,280,357,167
		Internal ratings-based approach	-	-	-
		Securitization	62,599	72,220	75,908
	Operational risk	Basic indicator approach	-	-	-
		Standardized approach/selective standardized approach	47,357,583	55,776,422	50,031,661
		Advanced measurement approach	-	-	-
	Market risk	Standardized approach	45,776,750	47,441,638	45,856,825
		Internal model approach	-	-	-
	Total risk-weighted assets		1,408,704,541	1,426,428,945	1,376,321,561
Capital adequacy ratio			% 13.40	% 13.33	% 13.19
Common stock equity/ Risk-weighted assets ratio			% 9.28	% 8.87	% 8.57
Tier 1 capital / Risk-weighted assets ratio			% 10.56	% 10.14	% 9.88
Leverage ratio			% 6.04	% 5.83	% 5.73

The formulas of the table are listed as follows:

a) The eligible capital, risk-weighted assets and exposure are calculated per “Regulations Governing the Capital Adequacy and Capital Category of Banks” and “The Calculation and Forms of Eligible Capital and Risk Assets of Banks”.
b) The Bank shall fill out the capital adequacy of this period and last period. For the semi-annual report, the Bank shall disclose the capital adequacy of this period and last period and additionally disclose the capital adequacy of the previous period ended December 31.

(Continued)

109

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

c) Note 1. Eligible Capital = Common stock equity ＋ Other Tier 1 Capital ＋ Tier 2 Capital
- Note 2. Total risk-weighted assets = Credit risk weighted asset ＋ (operational risk charge ＋ market risk charge) × 12.5
- Note 3. Capital adequacy ratio= Eligible Capital ÷ Risk weighted asset.
- Note 4. Common stock equity / Risk-weighted assets ratio= Common stock equity / total risk weighted assets
- Note 5. Tier 1 capital / Risk-weighted assets ratio = (Common stock equity ＋ other tier 1 capital)/ Risk-weighted assets
- Note 6. Leverage ratio = Net Tier 1 capital / Total risk exposure.
d) Above table is not required to be disclosed when preparing the financial reports of the first quarter and third quarter.
(aq) Investing and financing activities not affecting current cash flow

The Bank and subsidiaries investing and financing activities which did not affect the current cash flow for the three months ended June 30, 2025 and 2024 were carried out to acquire right-of-use assets under leases. Please refer to Note 6(l).

Reconciliation of liabilities arising from financing activities were as follows:

Non-cash changes Foreign exchange rate movement Fair value changes Other changes (1,099,500) (262,118) - - - - (24,120) - 88,041 (1,123,620) (262,118) 88,041	Non-cash changes Foreign exchange rate movement Fair value changes Other changes (1,099,500) (262,118) - - - - (24,120) - 88,041 (1,123,620) (262,118) 88,041	June 30, 2025 8,565,654 53,210,000 1,143,347
Foreign exchange rate movement (1,099,500) - (24,120) (1,123,620)	Fair value changes (262,118) - - (262,118)
		62,919,001

Non-cash changes Foreign exchange rate movement Fair value changes Other changes 559,500 (168,132) - - - - 14,084 - 205,214 573,584 (168,132) 205,214	Non-cash changes Foreign exchange rate movement Fair value changes Other changes 559,500 (168,132) - - - - 14,084 - 205,214 573,584 (168,132) 205,214	June 30, 2024 9,566,928 53,460,000 1,310,855
Foreign exchange rate movement 559,500 - 14,084 573,584	Fair value changes (168,132) - - (168,132)
		64,337,783

(Continued)

110

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ar) Structured entities that not included in consolidated financial reports

(i) The table below presents the types of structured entities that the Bank and subsidiaries does not include in consolidated financial reports but in which they hold an interest:

Types of structured entities	Nature and purpose Interests held by the Bank and subsidiaries Investing in funds that cannot be freely traded on the open market Investing in units or limited partnership interests issued by these funds. Investing in commercial real estate assets securitization products Investment in asset-backed securities issued by unconsolidated structured entities
Private fund Asset securitization product

(ii) The scales of structures entities not included in consolidated financial reports were as follow:

Private fund Asset securitization product Total	June 30, 2025 $ 207,861 3,819,484 $ 4,027,345	December 31, 2024 205,544 480,013 685,557	June 30, 2024
			203,903 519,584
			723,487

(iii) The carrying amounts of interests held by the Bank and subsidiaries in these structured entities were as follows:

Assets held by the Bank and subsidiaries	June 30, 2025 $ 207,861 3,773,578 45,906 $ 4,027,345	December 31, 2024 205,544 420,142 59,871 685,557	June 30, 2024
Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Investments in debt instruments at amortized cost Total			203,903 451,607 67,977
			723,487

The maximum amount of risk exposure to the Bank and subsidiaries endures to a loss incurred from special purpose entities that is not included in consolidated financial reports is the carrying amount of interests held by the Bank and subsidiaries.

(iv) As of June 30, 2025, December 31 and June 30, 2024, the Bank and subsidiaries has not provided any financial support to its special purpose entities that is not included in consolidated financial reports.

(Continued)

111

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(7) Related-party transactions

(a) Names and relationship with related parties

The followings are entities that have had transactions with related party during the periods covered in the consolidated financial statements.

in the consolidated financial statements.
Name of related party	Relationship with the Bank and subsidiaries
Bank of Taiwan	Corporate director of the Bank
Ministry of Finance, R.O.C	Corporate director of the Bank
National Development Fund, Executive	Corporate director of the Bank
Yuan
Taiwan Business Bank Guild	Corporate director of the Bank
Small and Medium Enterprise Credit	Substantive related parties
Guarantee Fund of Taiwan (Note)
TBB No. 1 Venture Capital Limited	Substantive related parties
Partnership
Fubon Securities Co., Ltd. (Note)	Substantive related parties
Media Talk Consulting Co., Ltd.	Associates
Others	Management and other related parties of the Bank

Note : No longer a related party commencing from the third quarter of 2024, the amounts disclosed below reflect only the transactions that occurred during the period in which the entity was considered a related party.

(b) Significant transactions with related parties
(i) Due from banks

Bank of Taiwan Bank of Taiwan Bank of Taiwan	June 30,	2025
	Amount % $ 153,434 1.31 December 31, 2024	%
		1.31
		%
		0.98
		2024
		%
		1.54

Interest rates are the same as those with regular clients.

(Continued)

112

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Call loans to banks

Bank of Taiwan Bank of Taiwan	Highest balance $ 2,169,480 Highest balance $ 1,714,404		Interest Income
		For the three months ended June 30, 2025 504	For the six months ended June 30, 2025 Annual interest rate 882 0.350%~4.530% Interest income
		For the three months ended June 30, 2024 945	For the six months ended June 30, 2024 Annual interest rate 1,267 1.627%~5.570%

Interest rates are the same as those with regular clients.

(iii) Call loans from banks

					December 31,
				June 30, 2025	2024	June 30, 2024
Bank of Taiwan			$	2,184,000	1,279,090	4,740,640
					Interest Expense
				For the three	For the six
				months ended	months ended	Annual
	Highest balance			June 30, 2025	June 30, 2025	interest rate
Bank of Taiwan	$	7,191,062		14,936	39,472	0.90%~4.93%
					Interest Expense
				For the three	For the six
				months ended	months ended	Annual
	Highest balance			June 30, 2024	June 30, 2024	interest rate
Bank of Taiwan	$	16,334,790		30,227	62,729	0.68%~5.87%

Interest rates are the same as those with regular clients.

(iv) Deposits

Deposits
Others	June 30,	2025
	Amount $ 1,588,920	%
		0.08

(Continued)

113

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		December 31, 2024	December 31, 2024
		Amount	%
Others	$	1,557,190		0.08
		June 30, 2024
		Amount	%
Others	$	2,318,710		0.12

Interest rates are the same as those with regular clients.

(v) Credit

Credit	Credit	Credit	Credit
June 30, 20				25
Category	Number of clients or name of relatedparty	Highest balance	Ending balance	Performing situations		Collaterals	Transaction terms are different to regular clients
				Performing loan	Non-performing Loans
Employee consumer loans	14	6,601	5,728	5,728	-	none	none
Self-use home mortgages loans	76	470,437	458,162	458,162	-	real estate	none
Others	Natural person	387,251	365,091	365,091	-	real estate	none

December 31, 2024
Category	Number of clients or name of relatedparty	Highest balance	Ending balance	Performing situations		Collaterals	Transaction terms are different to regular clients
				Performing loan	Non-performing Loans
Employee consumer loans	16	14,362	4,500	4,500	-	none	none
Self-use home mortgages loans	70	593,976	383,471	383,471	-	real estate	none
Others	Natural person	595,978	391,026	391,026	-	real estate	none

June 30, 20				24
Category	Number of clients or name of relatedparty	Highest balance	Ending balance	Performing situations		Collaterals	Transaction terms are different to regular clients
				Performing loan	Non-performing Loans
Employee consumer loans	35	14,362	11,667	11,667	-	none	none
Self-use home mortgages loans	117	583,070	552,251	552,251	-	real estate	none
Others	Natural person	595,978	573,098	573,098	-	real estate	none

(vi) Donation:

Small and Medium Enterprise Credit Guarantee Fund of Taiwan Taiwan Business Bank Guild Total	For the three months ended June 30, 2025 2024 $ - 81,790 - - $ - 81,790	For the six months ended June 30,	For the six months ended June 30,
	2025 $ - - $ -	2025 - 4,500 4,500	2024
			163,580 4,500 168,080

(Continued)

114

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(vii) Receivables from related parties

National Development Fund, Excutive Yuan	June 30, 2025 $ 587	December 31, 2024 707	June 30, 2024
			-

(viii) Property transaction ：

1) Acquisition of financial assets

The summary of financial assets obtained by the Bank and subsidiaries from relatedparty are as follows: ：

Related-party	Category	For the six months ended June 30, 2024	For the six months ended June 30, 2024
		Number of shares	Underlying Amount Taiwan Stock Exchange $ 428,150
Fubon Securities Co., Ltd.	Financial assets at fair value through other comprehensive income – stocks	5,000,000

(ix) Guarantees: None.

(x) Service fees: None.

(xi) Rental revenue: None.

(xii) Derivatives financial instrument transactions: None.

(xiii) Sales of Non–Performing Loans Transactions: None.

(xiv) Unearned revenue:

TBB No. 1 Venture Capital Limited Partnership	June 30, 2025 $ 8,524	December 31, 2024 -	June 30, 2024
			8,524

(xv) Other revenue:

For the three months ended June 30, 2025 2024 $ 4,262 4,262	For the six months ended June 30,	For the six months ended June 30,
2025 $ 4,262	2025 8,524	2024
		8,524

(Continued)

115

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three months ended June 30 2025 2024 $ 39,000 39,847 828 610 $ 39,828 40,457	For the six months ended June 30,	For the six months ended June 30,
2025 $ 39,000 828 $ 39,828	2025 76,345 1,530 77,875	2024
		78,173 1,423
		79,596

(8) Pledged assets:

Please refer to notes 6(g) and 6(h) for more details.

(9) Commitments and contingencies:

(a) Significant commitments and contingencies were as follows:

Marketable securities held for custody Bills collected for others Bills lent for others Guarantees and letters of credit Trust liabilities Items held for custody Registered government bonds for sale Registered short-term bills for sale Guarantee notes payable	June 30, 2025 $ 4,781,604 36,950,561 42,535,932 40,741,461 300,484,992 821,669 73,133,100 4,045,599 32,483,700	December 31, 2024 June 30, 2024 5,185,261 7,741,715 38,732,548 39,840,474 39,588,139 43,023,887 42,162,129 41,042,380 299,620,745 250,700,822 737,404 679,719 71,430,200 76,178,800 4,425,334 3,745,471 32,277,500 32,431,700

(b) Unrecognized contractual commitments:

As of June 30, 2025, December 31 and June 30, 2024, major constructions in progress and purchases amounted to $978,357, $1,143,904 and $980,431 respectively, of which $748,396, $919,362 and $793,494 respectively, remained unpaid.

(Continued)

116

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) The Bank’ s trust department plans, manages, and operates trust services in accordance with the Banking Law and Trust Law. Special purpose funds are used to invest in marketable securities and the Bank also manages trust funds. The trust information as of June 30, 2025, December 31 and June 30, 2024 is as follows:

Trust Balance Sheet

June 30, 2025, December 31 and June 30, 2024

Trust Assets	June 30, 2025 $ 6,163,227 1,414,669 62,451,635 10,568,524 32,298,191 187,283,798 304,948 $ 300,484,992 June 30, 2025 $ 187,283,798 113,092,460 (804,274) 913,008 $ 300,484,992	December 31, 2024 7,731,053 1,356,828 65,517,846 10,794,327 31,751,248 182,140,253 329,190 299,620,745 December 31, 2024 182,140,253 117,348,937 (2,239,813) 2,371,368 299,620,745	June 30, 2024 8,097,049 1,281,598 66,632,300 9,097,404 28,282,182 136,952,026 358,263 250,700,822 June 30, 2024 136,952,026 113,644,772 (1,125,409) 1,229,433 250,700,822
Cash in Bank Stocks Funds Bonds Real estate Securities custody Other assets Total trust assets Trust Liabilities
Securities held for custody Trust capital Accumulated loss Net income Total trust liabilities

(Continued)

117

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Trust Property Accounts

June 30, 2025, December 31 and June 30, 2024

Investment in	June 30, 2025 $ 6,163,227 1,414,669 62,451,635 10,568,524 18,910,083 63,057 13,325,051 187,283,798 304,948 $ 300,484,992	December 31, 2024 7,731,053 1,356,828 65,517,846 10,794,327 19,250,782 63,057 12,437,409 182,140,253 329,190 299,620,745	June 30, 2024
Cash in bank Stocks Funds Bonds Real estate Land Buildings Construction in progress Securities in custody Other assets Total			8,097,049 1,281,598 66,632,300 9,097,404 16,617,553 63,326 11,601,303 136,952,026 358,263
			250,700,822

Note: As of June 30, 2025, December 31 and June 30, 2024, the amounts above included OBU transaction on “ foreign currency designated trust funds investment in foreign negotiable securities business” amounting to $1,198,083, $1,458,123 and $1,531,734, respectively.

(Continued)

118

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Trust Income Statement

For the six months ended June 30, 2025 and 2024

Investment items Trust Revenue Interest income Realized capital gain-fund Realized gain-stocks Realized gain-bonds Dividend revenue Other revenues Sub-total Trust Expense Administrative expenses Postage and telecommunication expense Duties Realized loss-stocks Realized loss-bonds Loss on disposal of property Other expenses Other expenses Sub-total Income before income tax Income tax expense Net income	For the six months	ended June 30, 2024 197,921 797,995 4,049 1,868 1,086,373 3,763 2,091,969 46,524 860 16 796,155 14,442 52 - - 4,121 862,170 1,229,799 (366) 1,229,433
	2025 $ 249,264 391,459 10,803 3,503 1,107,491 2,430 1,764,950 41,826 1,529 115 775,314 28,268 - 945 127 3,665 851,789 913,161 (153) $ 913,008

(Continued)

119

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) In 1996, the Bank’ s World Trade Center Branch was sued for handling a letter of credit export collection from Chin Seen Industrial Ltd., which allegedly used a forged export document and failed to ship the goods to the importer, the International Comagnie de Commercialization et d’ Invertissement (I.C.C.I.) of the Republic of Zaire, who suffered a loss thereon. In November 1998, I.C.C.I. initiated a case with the Court of Commerce of Brussels in Belgium, requesting the L/C opening bank (Banque Bruxelles Lambert, or BBL) and the Bank to jointly pay compensation of USD7,830, plus interest, losses, and expenses for the L/C. On August 31, 2005, the Court of Commerce of Brussels ordered the Bank has to compensate for the damage of USD7,674, plus interest to I.C.C.I. Disatisfied with the decision made by the court, the Bank has engaged a local attorney in Belgium to formally file an appeal. In February 2011, Court of Appeal in Brussels had made an intermediate adjudication wherein both I.C.C.I and the Bank were responsible for the offense. Furthermore, on November 16, 2011, the court ruled that the Bank should be responsible for 90% of the negligence proportion. In terms of the decision made by the court on the second instance, the Bank has filed an appeal on November 3, 2011, in which the court ruled against the Bank on February 6, 2013. Since the Bank and I.C.C.I could not reach an agreement on the exchange rate and the calculation of the compensation, I.C.C.I filed an appeal to the Court of Frankfurt in Germany in October 2016, demanding for the Bank's account in Germany to be seized, in which the Bank lodged the guaranty amount of EUR13,200 to the court to rescind the order for attachment.

In July 2017, I.C.C.I applied for compulsory execution to the guaranty amount, which was transferred to I.C.C.I. by the court. The Bank then filed a lawsuit objecting to the debt through the attorney, in which the case was dismissed by the Court of Frankfurt in November 2018 and remanded back for reconsideration in November 2019 after the Bank's appeal was granted by the High Court of Frankfurt. On March 16, 2019, I.C.C.I. has filed a statement of grounds for objection and requested the Frankfurt High Court to revoke its ruling, wherein the Bank has appointed a lawyer to act as an attorney in the Federal Supreme Court of Justice to defend its case, which is currently being tried by the Regional Court of Frankfurt. The Federal Supreme Court of Justice has denied the I.C.C.I interlocutory appeal on May 20, 2021. The Frankfurt District Court ruled in favor of the Bank in the first instance on August 23, 2023. Moreover, I.C.C.I. was ordered to pay the Bank the amount of EUR1,046, plus interest, on November 17, 2017. wherein it disagreed with the ruling and filed an appeal on September 25, 2023. The High Court of Frankfurt dismissed the appeal on July 11, 2024.

Also, in October and November 2019, the Bank received subpoenas from the court of the Democratic Republic of Congo by a third person Star Marine, who demanded I.C.C.I to pay the damage of USD1,130, and held the Bank jointly liable. I.C.C.I, in turn, demanded the Bank to pay the amount of USD20,060, less its reimbursed amount, to make a security deposit of EUR14,000. In light of the above matter, the Bank has engaged local attorneys to represent itself in the Court of Congo, who will merge the two cases as one. In April 2021, the Court of Congo demanded the Bank to pay the approximate amount of EUR20,060 to I.C.C.I., who will have to compensate Star Marine the damage amounting to USD1,130, as well as make a security deposit of EUR14,000 in the domestic bank in Congo. According to the statement of plaintiff and considering that I.C.C.I has already received the amount of EUR14,860, an addition provision for lawsuit amounting to 76,537 has been made in 2021. Please refer to Note 6(v) for more details. As of June 30, 2025, the Bank has accrued the compensation of 261,553 and EUR9,660.

(Continued)

120

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(10) Losses from disasters: None

(11) Subsequent Events: None

(12) Others:

(a) Information on loan quality, concentration of credit extensions, interest rate-sensitivity, profitability and maturity analysis
(i) Loan quality:

Items	Month/Year	Month/Year	June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025
			Non-performing loans (Note1)	Total loans	Non-performing loan ratio (Note2)	Allowance for credit losses	Coverage ratio (Note3)
Corporate finance	Secured		1,755,841	785,474,035	0.22 %	10,591,024	603.19 %
	Unsecured		367,876	385,028,756	0.10 %	5,295,831	1,439.57 %
Consumer finance	Residence mortgages(Note 4)		250,419	307,695,922	0.08 %	4,137,789	1,652.35 %
	Cash cards		-	-	- %	-	- %
	Microcredit(Note 5)		5,595	433,881	1.29 %	9,396	167.94 %
	Others (Note 6)	Secured	260,750	166,311,677	0.16 %	2,240,026	859.07 %
		Unsecured	14,290	12,266,961	0.12 %	168,065	1,176.10 %
Total loan busin	ess		2,654,771	1,657,211,232	0.16 %	22,442,131	845.35 %
			Overdue receivables	Total receivables	Delinquency ratio	Allowance for credit losses	Coverage ratio
Credit cards bus	iness		779	1,174,200	0.07 %	8,652	1,110.65 %
Account receiva (Note 7)	ble factoring-without recourse		-	-	- %	-	- %

Items	Month/Year		December 31, 2024
			Non-performing loans (Note1)	Total loans	Non-performing loan ratio (Note2)	Allowance for credit losses	Coverage ratio (Note3)
Corporate finance	Secured		2,099,371	791,779,808	0.27 %	10,498,619	500.08 %
	Unsecured		336,268	395,200,885	0.09 %	5,367,883	1,596.31 %
Consumer finance	Residence mortgages(Note 4)		129,309	278,754,583	0.05 %	3,681,544	2,847.09 %
	Cash cards		-	-	- %	-	- %
	Microcredit(Note 5)		4,694	402,305	1.17 %	7,758	165.27 %
	Others (Note 6)	Secured	185,206	162,726,471	0.11 %	2,153,456	1,162.74 %
		Unsecured	11,190	12,320,435	0.09 %	165,723	1,480.99 %
Total loan busin	ess		2,766,038	1,641,184,487	0.17 %	21,874,983	790.84 %
			Overdue receivables	Total receivables	Delinquency ratio	Allowance for credit losses	Coverage ratio
Credit cards bus	iness		841	1,298,254	0.06 %	9,260	1,101.07 %
Account receiva (Note 7)	ble factoring-without recourse		-	-	- %	-	- %

(Continued)

121

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Items	Month/Year	Month/Year	June 30, 2024	June 30, 2024	June 30, 2024	June 30, 2024	June 30, 2024
			Non-performing loans (Note1)	Total loans	Non-performing loan ratio (Note2)	Allowance for credit losses	Coverage ratio (Note3)
Corporate finance	Secured		2,073,209	776,095,275	0.27 %	9,776,098	471.54 %
	Unsecured		345,099	371,922,039	0.09 %	4,811,082	1,394.12 %
Consumer finance	Residence mortgages(Note 4)		155,995	235,803,508	0.07 %	2,958,803	1,896.73 %
	Cash cards		-	-	- %	-	- %
	Microcredit(Note 5)		3,001	404,513	0.74 %	6,442	214.66 %
	Others (Note 6)	Secured	154,550	154,888,443	0.10 %	1,945,570	1,258.86 %
		Unsecured	4,952	13,327,876	0.04 %	169,046	3,413.69 %
Total loan busin	ess		2,736,806	1,552,441,654	0.18 %	19,667,041	718.61 %
			Overdue receivables	Total receivables	Delinquency ratio	Allowance for credit losses	Coverage ratio
Credit cards bus	iness		682	1,506,404	0.05 %	10,378	1,521.70 %
Account receiva (Note 7)	ble factoring-without recourse		-	-	- %	-	- %

Note 1 Non-performing loans represent the amount of overdue loans as reported in accordance with the "Regulations on the Procedures for Banking Institutions to Evaluate Assets and Deal with Past Due/Non-performing Loans". The credit card overdue loans represent the amount of overdue loans as reported in accordance with Jin-Kuan-Yin-(4)-Zi No. 0944000378, dated July 6, 2005.
Note 2 Non-performing loan ratio = Non-performing loans ÷ total loans; Credit card delinquency ratio = Overdue receivables÷ receivables
Note 3 Coverage ratio for loans = allowance for credit losses ÷ non-performing loans; Coverage ratio for credit card business = allowance for credit losses ÷ overdue receivables.
Note 4 For residential mortgage loans, a borrower provides his/her (or spouse’ s or minor child’ s) house as collateral in full and pledges it to the financial institution for the purpose of obtaining funds to purchase property and to construct or repair a house.
Note 5 Microcredit loans are defined by Jin-Kuan-Yin-(4)-Zi No. 09440010950, dated December 19, 2005, and do not include credit cards or cash cards.
Note 6 Others in consumer finance are secured and unsecured consumer loans other than residential mortgage loans, cash card loans, and microcredit loans, and do not include credit cards.
Note 7 In accordance with Jin-Kuan-Yin-(5)-Zi No. 0945000494, dated July 19, 2005, the amounts of without-recourse factoring will be classified as overdue receivables within three months from the date that suppliers or insurance companies resolve not to compensate the loss.

(Continued)

122

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Overdue loans and receivables exempted from reporting

June 30, 2025	June 30, 2025	December	31, 2024	June 30, 2024	June 30, 2024
Loans may be exempted from reporting as a non-performing loan	Receivables may be exempted from reporting as overdue receivables	Loans may be exempted from reporting as a non-performing loan	Receivables may be exempted from reporting as overdue receivables	Loans may be exempted from reporting as a non-performing loan	Receivables may be exempted from reporting as overdue receivables
	389 12,523 12,912	95 79,064 79,159	463 13,300 13,763	129 75,805 75,934	576 15,448
					16,024

Note 1: In accordance with Jin-Kuan-Yin-(1)-Zi No. 09510001270, dated April 25, 2006, a bank is required to make supplemental disclosure of credit information which was approved under the debt coordination mechanism of unsecured consumer debts by the Bankers Association of the R.O.C.
Note 2: In accordance with Jin-Kuan-Yin-(1)-Zi No. 09700318940, dated September 15, 2008 and Jin-Kuan-Yin-Fa-Zi No. 10500134790, dated September 20, 2016, a bank is required to make supplemental disclosure of credit information once debtors apply for pre-negotiation, pre-conciliation, relief and liquidation under the “ Consumer Debt Clearance Act.”
(ii) Concentration of credit extensions

Concentration of credit extensions	Concentration of credit extensions	Concentration of credit extensions	Concentration of credit extensions
June 30, 2025
Ranking	Group enterprise	Credit amount	Credit amount to equity ratio (%)
1	A group. (Real estate for sale and rental with own or leased property)	23,492,723	% 17.27
2	B company. (Railway transportation)	20,228,474	% 14.87
3	C group. (Other holding)	14,405,541	% 10.59
4	D group. (Steel rolling and extruding)	11,165,467	% 8.21
5	E group. (Computers manufacturing)	7,450,365	% 5.48
6	F group. (Real estate development)	7,392,510	% 5.43
7	G group. (Liquid crystal panel and components manufacturing)	7,247,448	% 5.33
8	H group. (Real estate development)	7,079,524	% 5.20
9	I group. (Construction of other civil engineering projects)	6,816,040	% 5.01
10	J group. (Real estate development)	6,596,583	% 4.85

(Continued)

123

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2024	December 31, 2024	December 31, 2024	December 31, 2024
Ranking	Group enterprise	Credit amount	Credit amount to equity ratio (%)
1	A group. (Real estate for sale and rental with own or leased property)	22,774,375	% 17.33
2	B company. (Railway transportation)	20,228,474	% 15.39
3	C group. (Other holding)	14,640,993	% 11.14
4	D group. (Steel rolling and extruding)	9,579,930	% 7.29
5	G group. (Liquid crystal panel and components manufacturing)	8,398,427	% 6.39
6	F group. (Real estate developmentg)	7,416,110	% 5.64
7	E group. (Computers manufacturing)	7,292,812	% 5.55
8	K group. (Real estate development)	7,027,987	% 5.35
9	H group. (Real estate development)	6,987,484	% 5.32
10	L group. (Financial leasing)	6,979,217	% 5.31

June 30, 2024	June 30, 2024	June 30, 2024	June 30, 2024
Ranking	Group enterprise	Credit amount	Credit amount to equity ratio (%)
1	B company. (Railway transportation)	20,248,040	% 16.12
2	A group. (Real estate for sale and rental with own or leased property)	17,796,142	% 14.17
3	C group. (Other holding)	11,657,986	% 9.28
4	D group. (Steel rolling and extruding)	9,915,794	% 7.89
5	F group. (Real estate development)	7,406,407	% 5.90
6	G group. (Liquid crystal panel and components manufacturing)	7,072,757	% 5.63
7	H group. (Real estate development)	6,874,923	% 5.47
8	K group. (Real estate development)	6,578,289	% 5.24
9	E group. (Computers manufacturing)	6,199,160	% 4.93
10	L group. (Financial Leasing)	5,905,573	% 4.70

Note 1 The top ten enterprise groups other than government or stated-owned enterprises are ranked according to their total outstanding credit amount. If the borrowers belong to an enterprise group, the aggregate credit balance of the enterprise should be calculated and disclosed as a code number for each such borrower together with an indication of the borrowers’ line of business. In addition, if the borrowers are enterprise groups, the enterprise group’s industry sector with the maximum exposure to credit risk in its main industry sector should be disclosed, along with the “ class” of the industry, in compliance with the Standard Industrial Classification System of the R.O.C. posted by the Directorate-General of Budget, Accounting and Statistics, Executive Yuan, R.O.C.

(Continued)

124

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Note 2 Enterprise group is as defined in Article 6 of the “Supplementary Provisions to the Taiwan Stock Exchange Corporation Rules for Review of Securities Listings”.
Note 3 Consists of loans (import/export bills negotiated, bills and notes discounted, overdrafts, short-term loans, short-term secured loans, margin loans receivable, medium-term loans, medium-term secured loans, long-term loans, long-term secured loans, overdue loans), exchange bills negotiated, accounts receivable factoring without recourse, bankers’ acceptance receivable, guarantees proceeds.
Note 4 In the calculation of Credit amount to equity ratio, the domestic bank should be calculated in the net value of head office. The Foreign bank should be calculated in the net value of Taiwan branch.
(iii) Interest rate-sensitivity information
1) Analysis of interest rate-sensitive assets and liabilities (New Taiwan dollars)

Unit : %

June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025
Item	1~90 days	91~180 days	181days~1year	over 1 year	total
Interest rate-sensitive assets	$ 1,766,226,015	70,345,398	38,145,378	138,368,718	2,013,085,509
Interest rate-sensitive liabilities	1,495,396,608	117,759,108	122,308,051	53,615,476	1,789,079,243
Interest rate sensitivity gap	270,829,407	(47,413,710)	(84,162,673)	84,753,242	224,006,266
Net worth					136,062,898
Ratio of interest rate-sensitive assets to liabilities (%)					112.52
Ratio of interest rate-sensitive gap to net worth (%)					164.63

December 31, 2024
Item	1~90 days	91~180 days	181days~1year	over 1 year	total
Interest rate-sensitive assets	$ 1,710,951,247	37,165,355	42,802,710	146,534,932	1,937,454,244
Interest rate-sensitive liabilities	1,464,813,013	94,762,368	111,936,395	53,379,521	1,724,891,297
Interest rate sensitivity gap	246,138,234	(57,597,013)	(69,133,685)	93,155,411	212,562,947
Net worth					131,433,782
Ratio of interest rate-sensitive assets to liabilities (%)					112.32
Ratio of interest rate-sensitive gap to net worth (%)					161.73

June 30, 2024
Item	1~90 days	91~180 days	181days~1year	over 1 year	total
Interest rate-sensitive assets	$ 1,588,133,998	69,132,222	38,071,323	159,244,650	1,854,582,193
Interest rate-sensitive liabilities	1,353,351,921	83,108,748	142,073,062	62,559,609	1,641,093,340
Interest rate sensitivity gap	234,782,077	(13,976,526)	(104,001,739)	96,685,041	213,488,853
Net worth					125,634,509
Ratio of interest rate-sensitive assets to liabilities (%)					113.01
Ratio of interest rate-sensitive gap to net worth (%)					169.93

(Continued)

125

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Note 1 Listed amount refers to the Bank's amount of N.T. dollars and does not include contingent assets or liabilities.
Note 2 Interest rate-sensitive assets and liabilities refer to revenues or costs of interest– yielding assets and interest–bearing liabilities, which are affected by interest rate fluctuations.
Note 3 Interest rate-sensitivity gap = Interest rate-sensitive assets - Interest-rate-sensitive liabilities.
Note 4 Ratio of interest rate-sensitive assets to liabilities=Interest rate-sensitive assets ÷ Interest rate-sensitive liabilities (New Taiwan dollars interest-rate-sensitive assets and New Taiwan dollars interest-rate-sensitive liabilities).
2) Analysis of the interest-sensitive assets and liabilities (US dollars)

Unit : In Thousands of US Dollars, %

June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025
Item	1~90 days	91~180 days	181days~1year	over 1 year	total
Interest rate-sensitive assets	$ 4,577,370	481,028	397,344	1,826,342	7,282,084
Interest rate-sensitive liabilities	7,868,147	1,759,571	1,743,813	-	11,371,531
Interest rate sensitivity gap	(3,290,777)	(1,278,543)	(1,346,469)	1,826,342	(4,089,447)
Net worth					4,672,490
Ratio of interest rate-sensitive assets to liabilities (%)					64.04
Ratio of interest rate-sensitive gap to net worth (%)					(87.52)

December 31, 2024	December 31, 2024	December 31, 2024	December 31, 2024	December 31, 2024	December 31, 2024
Item	1~90 days	91~180 days	181days~1year	over 1 year	total
Interest rate-sensitive assets	$ 4,299,171	368,321	171,449	1,976,057	6,814,998
Interest rate-sensitive liabilities	6,866,815	2,268,523	2,166,345	-	11,301,683
Interest rate sensitivity gap	(2,567,644)	(1,900,202)	(1,994,896)	1,976,057	(4,486,685)
Net worth					4,008,961
Ratio of interest rate-sensitive assets to liabilities (%)					60.30
Ratio of interest rate-sensitive gap to net worth (%)					(111.92)

June 30, 2024	June 30, 2024	June 30, 2024	June 30, 2024	June 30, 2024	June 30, 2024
Item	1~90 days	91~180 days	181days~1year	over 1 year	total
Interest rate-sensitive assets	$ 4,306,066	423,010	359,777	1,909,744	6,998,597
Interest rate-sensitive liabilities	6,502,710	1,754,278	2,812,588	-	11,069,576
Interest rate sensitivity gap	(2,196,644)	(1,331,268)	(2,452,811)	1,909,744	(4,070,979)
Net worth					3,857,369
Ratio of interest rate-sensitive assets to liabilities (%)					63.22
Ratio of interest rate-sensitive gap to net worth (%)					(105.54)

(Continued)

126

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Note 1 Listed amount refers to the Bank's amount of US dollars and does not include contingent assets or liabilities.
Note 2 Interest rate-sensitive assets and interest rate-sensitive liabilities refer to the interest yielding assets and interest-bearing liabilities which the revenue and cost are affected by interest rate fluctuation.
Note 3 Interest rate sensitivity gap = interest rate-sensitive assets-interest rate-sensitive liabilities.
Note 4 Ratio of interest rate-sensitive assets to liabilities=Interest rate-sensitive assets÷ Interest rate-sensitive liabilities (US dollars interest-rate-sensitive assets and US dollars interest-rate-sensitive liabilities).

(iv) Profitability

Unit: %

			Unit: %
Item		June 30, 2025	June 30, 2024
The ratio of return on assets	Before income tax	0.33	0.35
	After income tax	0.27	0.28
The ratio of return on equity	Before income tax	5.93	6.41
	After income tax	4.80	5.08
Net income ratio		36.13	36.75

Note 1 The ratio of return on assets = Income before (after) income tax expense ÷ average assets.
Note 2 The ratio of return on equity = Income before (after) income tax expense ÷ average equity.

Note 3 Net income ratio = Net income after income tax expense ÷ Net revenue.

Note 4 Income before (after) income tax expense refers to income accumulated from January of the current year to the current period end.

(Continued)

127

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Maturity analysis for assets and liabilities

1) Maturity analysis in New Taiwan dollars

		June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025
	Total	Amount during the maturity period from the balance sheet date to due date
		0-10days	11-30days	31-90days	91-180days	181days-1year	Over 1 year
Major maturity capital inflow	$ 2,133,741,798	255,679,385	180,635,223	200,796,636	207,000,478	151,298,300	1,138,331,776
Major maturity capital outflow	2,596,311,055	70,372,968	105,162,526	258,807,758	340,609,385	551,043,213	1,270,315,205
Gap	(462,569,257)	185,306,417	75,472,697	(58,011,122)	(133,608,907)	(399,744,913)	(131,983,429)

Note: Listed amounts are denominated in New Taiwan dollars of the Bank and subsidiaries, including loan commitments of credit agreement and estimates to outflow $474,716,880.

		December 31, 2024	December 31, 2024	December 31, 2024	December 31, 2024	December 31, 2024	December 31, 2024
	Total	Amount during the maturity period from the balance sheet date to due date
		0-10days	11-30days	31-90days	91-180days	181days-1year	Over 1 year
Major maturity capital inflow	$ 2,062,028,075	275,546,802	111,168,658	183,300,924	190,601,135	199,560,713	1,101,849,843
Major maturity capital outflow	2,500,180,857	54,039,652	141,896,057	224,242,889	254,965,444	553,220,800	1,271,816,015
Gap	(438,152,782)	221,507,150	(30,727,399)	(40,941,965)	(64,364,309)	(353,660,087)	(169,966,172)

Note: Listed amounts are denominated in New Taiwan dollars of the Bank and subsidiaries, including loan commitments of credit agreement and estimates to outflow $443,780,063.

		June 30, 2024	June 30, 2024	June 30, 2024	June 30, 2024	June 30, 2024	June 30, 2024
	Total	Amount during the maturity period from the balance sheet date to due date
		0-10days	11-30days	31-90days	91-180days	181days-1year	Over 1 year
Major maturity capital inflow	$ 1,962,139,572	196,743,606	153,529,335	185,382,157	193,522,467	157,809,827	1,075,152,180
Major maturity capital outflow	2,418,816,440	75,575,078	101,350,499	247,002,404	266,499,717	507,697,270	1,220,691,472
Gap	(456,676,868)	121,168,528	52,178,836	(61,620,247)	(72,977,250)	(349,887,443)	(145,539,292)

Note: Listed amounts are denominated in New Taiwan dollars of the Bank and subsidiaries, including loan commitments of credit agreement and estimates to outflow $458,103,384.

(Continued)

128

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Maturity analysis in US dollars

Unit : In Thousands of US Dollars

		June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025	June 30, 2025
	Total	Amount during the maturity period from the balance sheet date to due date
		0-30days	31-90days	91-180days	181days-1year	Over 1 year
Major maturity capital inflow	$ 12,869,328	2,928,090	1,567,621	2,531,075	2,399,967	3,442,575
Major maturity capital outflow	13,433,027	4,182,996	3,073,223	1,944,329	2,394,894	1,837,585
Gap	(563,699)	(1,254,906)	(1,505,602)	586,746	5,073	1,604,990

Note: Listed amounts are denominated in US dollars of the Bank and subsidiaries, including loan commitments of credit agreement and estimates to outflow USD $557,797.

	$557,797.
		December 31, 2024
	Total	Amount during the maturity period from the balance sheet date to due date
		0-30days	31-90days	91-180days	181days-1year	Over 1 year
Major maturity capital inflow	$ 12,714,577	3,371,963	1,991,120	793,677	3,412,664	3,145,153
Major maturity capital outflow	13,348,668	3,312,719	2,700,650	2,700,382	2,789,305	1,845,612
Gap	(634,091)	59,244	(709,530)	(1,906,705)	623,359	1,299,541

Note: Listed amounts are denominated in US dollars of the Bank and subsidiaries, including loan commitments of credit agreement and estimates to outflow USD $586,992.

	$586,992.
		June 30, 2024
	Total	Amount during the maturity period from the balance sheet date to due date
		0-30days	31-90days	91-180days	181days-1year	Over 1 year
Major maturity capital inflow	$ 12,417,120	3,491,784	1,906,282	1,785,079	2,322,289	2,911,686
Major maturity capital outflow	13,094,645	3,322,096	2,157,153	2,369,711	3,466,703	1,778,982
Gap	(677,525)	169,688	(250,871)	(584,632)	(1,144,414)	1,132,704

Note: Listed amounts are denominated in US dollars of the Bank and subsidiaries, including loan commitments of credit agreement and estimates to outflow USD $615,926.

(Continued)

129

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(13) Other disclosures:

(a) Information on significant transactions:
(i) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 10% of the capital stock: None.
(ii) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 10% of the capital stock: None.
(iii) Disposal of individual real estate with amount exceeding the lower of NT$300 million or 10% of the capital stock: None.
(iv) Service charge discounts on transactions with related parties in an aggregate amount of NT$5 million or more: None.
(v) Receivables from related parties with amounts exceeding the lower of NT$300 million or 10% of the capital stock: None.
(vi) Information on NPL disposal transaction: None.
(vii) Types of securitization instruments approved to be issued pursuant to financial assets securitization rules or real estate securitization rules and other relevant information: None.

(viii) Business relationships and significant intercompany transactions:

No (Note 1)	Trader	Counterparty	Relationship (Note 2)	Transaction status for the three months ended March 31, 2025	Transaction status for the three months ended March 31, 2025	Transaction status for the three months ended March 31, 2025	Transaction status for the three months ended March 31, 2025
				Account	Amount	Terms	Percentage accounted for consolidated net revenue or total assets
0	Taiwan Business Bank, Ltd.	TBB International Leasing Co., Ltd.	1	Deposits and remittances	84,142	No difference with non- related parties	- %
1	TBB International Leasing Co., Ltd.	Taiwan Business Bank, Ltd.	2	Right-of-use assets	2,402	No difference with non- related parties	- %
1	TBB International Leasing Co., Ltd.	Taiwan Business Bank, Ltd.	2	Lease liabilities	2,443	No difference with non- related parties	- %
0	Taiwan Business Bank, Ltd.	TBB International Leasing Co., Ltd.	1	Net revenue other than interest	454	No difference with non- related parties	- %
0	Taiwan Business Bank, Ltd.	TBB Venture Capital Co., Ltd.	1	Deposits and remittances	48,741	No difference with non- related parties	- %
2	TBB Venture Capital Co., Ltd.	Taiwan Business Bank, Ltd.	2	Right-of-use assets	231	No difference with non- related parties	- %
2	TBB Venture Capital Co., Ltd.	Taiwan Business Bank, Ltd.	2	Lease liabilities	238	No difference with non- related parties	- %
0	Taiwan Business Bank, Ltd.	TBB Venture Capital Co., Ltd.	1	Net revenue other than interest	90	No difference with non- related parties	- %
0	Taiwan Business Bank, Ltd.	Taiwan Business Bank International Leasing Co., Ltd.	1	Deposits and remittances	554	No difference with non- related parties	- %
0	Taiwan Business Bank, Ltd.	TBB Consulting Co., Ltd.	1	Deposits and remittances	103,934	No difference with non- related parties	- %
0	Taiwan Business Bank, Ltd.	TBB Consulting Co., Ltd.	1	Net revenue other than interest	499	No difference with non- related parties	- %
3	TBB Consulting Co., Ltd.	Taiwan Business Bank, Ltd.	2	Right-to-use assets	1,288	No difference with non- related parties	- %
3	TBB Consulting Co., Ltd.	Taiwan Business Bank, Ltd.	2	Lease liabilities	1,318	No difference with non- related parties	- %
2	TBB Venture Capital Co., Ltd.	TBB Consulting Co., Ltd.	3	Business expenses	15,732	No difference with non- related parties	0.09 %
2	TBB Venture Capital Co., Ltd.	TBB Consulting Co., Ltd.	3	Accounts payable	29,308	No difference with non- related parties	- %
3	TBB Consulting Co., Ltd.	Taiwan Business Bank, Ltd.	3	Accounts payable	44,316	No difference with non- related parties	- %

Note: 1. The meaning of the number is as follows.

(1) Zero stands for the parent company

(2) Subsidiaries are numbered in a sequence of Arabic numerals from 1 based on company category.
There are three kinds of relationships with counterparty
(1) Parent company to subsidiary
(2) Subsidiary to parent company
(3) Between subsidiaries

(Continued)

130

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ix) Other significant transactions that may have substantial influence upon the decisions made by financial report users: None.
(b) Information on investees:
(i) The following is the information on investees (excluding information on investees in Mainland China):

(Unit : thousand shares)

Name of investee	Location	Main business scope	Shareholding ratio	Book value	Investment gain (loss)	The cross holding of the B	The cross holding of the B	ank and its related parties	ank and its related parties	Note
						Number of shares	Number of proforma shares	Total
								Number of shares	Shareholding ratio
TBB International Leasing Co., Ltd.	Taiwan	Leasing business	100.00 %	1,615,199	39,899	162,000	-	162,000	100.00 %	Already written-off when preparing the consolidated financial statements
TBB (Cambodia) Microfinance Institution Plc	Cambodia	SMEs and personal finance business	100.00 %	593,167	6,274	20	-	20	100.00 %	`〞`
TBB Venture Capital Co., Ltd.	Taiwan	Investing business	100.00 %	1,375,551	(38,282)	133,181	-	133,181	100.00 %	`〞`
TBB Consulting Co., Ltd.	Taiwan	Consulting business	100.00 %	67,012	5,545	5,000	-	5,000	100.00 %	`〞`
Media Talk Consulting Co., Ltd.	Taiwan	Investing cultural and creative business	20.00 %	-	-	200	-	200	20.00 %

(ii) Loans to others:

NO.	Creditor	Debtor	Interaction Account	Related party	Highest Amount	Ending balance	Actual drawdown amount	Range of interest rate	Nature of the loan	Dealing amount	The necessary reason for short-term loans	Allowance for bad debts	Guarantee	Guarantee	Limited amount for individual object	Total limited amount for loan
													Name	Value
1	TBB International Leasing Co., Ltd.	Hsin Chuan Construction Co., Ltd.	Financial receivables	No	75,272	62,760	150,000	2%-10%	2	-	To the lender for buying goods	628	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Xi Quan Restaurant Co., Ltd.	Financial receivables	No	98,827	87,510	100,000	2%-10%	2	-	To the lender for buying goods	875	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Maw Shing Top Co., Ltd.	Financial receivables	No	15,758	15,758	30,000	2%-10%	2	-	To the lender for buying goods	158	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Yu Ding Investment Co., Ltd.	Financial receivables	No	47,762	36,443	50,000	2%-10%	2	-	To the lender for buying goods	364	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Qing Rui Construction Co., Ltd.	Financial receivables	No	17,872	11,324	20,000	2%-10%	2	-	To the lender for buying goods	113	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Li Cheng Construction Co., Ltd.	Financial receivables	No	15,071	7,625	18,000	2%-10%	2	-	To the lender for buying goods	76	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	99 Bottles Co. Ltd.	Financial receivables	No	10,000	5,907	10,000	2%-10%	2	-	To the lender for buying goods	59	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	V-Optech Inc.	Financial receivables	No	9,731	8,365	10,000	2%-10%	2	-	To the lender for buying goods	84	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Wen Ying International Logistics Co., Ltd.	Financial receivables	No	3,853	3,853	3,853	2%-10%	2	-	To the lender for buying goods	39	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Shye Yao Steel Co., Ltd.	Financial receivables	No	30,000	17,693	30,000	2%-10%	2	-	To the lender for buying goods	177	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Flagship Square Enterprise Co Ltd.	Financial receivables	No	25,000	22,127	25,000	2%-10%	2	-	To the lender for buying goods	221	None	-	413,727	1,654,907

(Continued)

131

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

NO.	Creditor	Debtor	Interaction Account	Related party	Highest Amount	Ending balance	Actual drawdown amount	Range of interest rate	Nature of the loan	Dealing amount	The necessary reason for short-term loans	Allowance for bad debts	Guarantee	Guarantee	Limited amount for individual object	Total limited amount for loan
													Name	Value
1	TBB International Leasing Co., Ltd.	Weineng Machinery Sheet Metal Co., Ltd.	Financial receivables	No	8,000	7,261	8,000	2%-10%	2	-	To the lender for buying goods	73	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Liang-wei Tobacco&Liq uor Co., Ltd.	Financial receivables	No	10,000	6,737	10,000	2%-10%	2	-	To the lender for buying goods	67	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Good Appetite Co., Ltd.	Financial receivables	No	8,000	6,923	8,000	2%-10%	2	-	To the lender for buying goods	69	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Yousing Enterprise Co Ltd.	Financial receivables	No	30,000	29,332	60,000	2%-10%	2	-	To the lender for buying goods	293	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Yung Yuan Co., Ltd.	Financial receivables	No	5,080	-	12,000	2%-10%	2	-	To the lender for buying goods	-	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Wisdom International Pet Science Co., Ltd.	Financial receivables	No	15,088	8,831	25,000	2%-10%	2	-	To the lender for buying goods	88	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Mr. Mick Co., Ltd.	Financial receivables	No	5,754	3,452	8,000	2%-10%	2	-	To the lender for buying goods	35	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Yong Da Long Construction Ltd.	Financial receivables	No	10,095	7,662	12,000	2%-10%	2	-	To the lender for buying goods	77	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Beef Traden Co., Ltd.	Financial receivables	No	6,706	3,402	8,000	2%-10%	2	-	To the lender for buying goods	34	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Chi Hong Co., Ltd.	Financial receivables	No	4,000	3,100	4,000	2%-10%	2	-	To the lender for buying goods	31	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Master Builde Construction Co., Ltd.	Financial receivables	No	20,000	15,440	20,000	2%-10%	2	-	To the lender for buying goods	154	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Kuan Lin Electrical Engineering Co., Ltd.	Financial receivables	No	5,000	4,329	5,000	2%-10%	2	-	To the lender for buying goods	43	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Hermit Crab Rental Co., Ltd.	Financial receivables	No	15,000	12,565	15,000	2%-10%	2	-	To the lender for buying goods	126	None	-	413,727	1,654,907

Note1: The meaning of the number is as follows.

(1) Zero stands for issuer.

(2) Investee companies are numbered in a sequence of Arabic numerals from 1 based on company category.

Note2: The amount of loans is still valid up to now.

Note3: The nature of the loan nature is as follows.

(1) 1 stands for business relation.

(2) 2 stands for the necessity for short-term loans.

Note4: Limited amount for individual object ： 25% net worth of the latest TBB International Leasing Co., Ltd.'s audited financial statements.

Note5: Total limited amount for loan ： 100% net worth of the latest TBB International Leasing Co., Ltd.'s audited financial statements.

(Continued)

132

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Endorsements and guarantee for others: None

(iv) Acquisition of securities:

Company acquired	Type and name of the security	Relationship with the security issuer	Account	At the end of the period	At the end of the period	At the end of the period	At the end of the period	Note
				Number of shares	Carrying amount	Share proportion	Market price
TBB International Leasing Co., Ltd.	Taiwan Business International Leasing Co., Ltd.	Parent company	Investment under equity method	-	973,854	100.00 %	973,854	The transaction has been written off when preparing the consolidated financial statements.
TBB International Leasing Co., Ltd.	G12245`、`G12246	-	Financial assets at fair value through profit or loss	-	100,000	- %	100,000	Financial debentures
TBB Venture Capital Co., Ltd.	G12245	-	Financial assets at fair value through profit or loss	-	100,000	- %	100,000	`〞`
TBB Venture Capital Co., Ltd.	Energenesis Biomedical Co., Ltd.	-	Financial assets at fair value through profit or loss	548	36,854	0.62 %	36,854	Listed Stocks
TBB Venture Capital Co., Ltd.	Lungteh Shipbuilding Co., Ltd.	-	Financial assets at fair value through profit or loss	479	47,285	0.42 %	47,285	`〞`
TBB Venture Capital Co., Ltd.	Evergreen Aviation Technologies Corporation	-	Financial assets at fair value through profit or loss	13	1,365	- %	1,365	`〞`
TBB Venture Capital Co., Ltd.	Tigerair Taiwan Co., Ltd.	-	Financial assets at fair value through profit or loss	212	18,370	0.05 %	18,370	`〞`
TBB Venture Capital Co., Ltd.	Starlux Airlines Co., Ltd.	-	Financial assets at fair value through profit or loss	5,532	142,175	0.18 %	142,175	`〞`
TBB Venture Capital Co., Ltd.	Eir Genix, Inc.	-	Financial assets at fair value through profit or loss	845	51,883	0.28 %	51,883	OTC Stocks
TBB Venture Capital Co., Ltd.	Chenfull Precision Co., Ltd	-	Financial assets at fair value through profit or loss	147	17,861	0.25 %	17,861	`〞`
TBB Venture Capital Co., Ltd.	Handa Pharmaceuticals, Inc.	-	Financial assets at fair value through profit or loss	1,535	128,596	0.97 %	128,596	Emerging Stocks
TBB Venture Capital Co., Ltd.	Locus Cell Co., Ltd.	-	Financial assets at fair value through profit or loss	1,338	27,964	0.67 %	27,964	`〞`
TBB Venture Capital Co., Ltd.	TFBS Bioscience, Inc.	-	Financial assets at fair value through profit or loss	260	5,889	0.74 %	5,889	`〞`
TBB Venture Capital Co., Ltd.	Iovtec Co., Ltd.	-	Financial assets at fair value through profit or loss	556	55,832	2.61 %	55,832	`〞`
TBB Venture Capital Co., Ltd.	MegaPro Biomedical Co., Ltd.	-	Financial assets at fair value through profit or loss	200	3,480	0.31 %	3,480	`〞`
TBB Venture Capital Co., Ltd.	Annji Pharmaceutical Co., Ltd.	-	Financial assets at fair value through profit or loss	400	8,960	0.43 %	8,960	`〞`
TBB Venture Capital Co., Ltd.	Ina Energy Corporation	-	Financial assets at fair value through profit or loss	2,179	72,111	0.98 %	72,111	`〞`
TBB Venture Capital Co., Ltd.	Song Chuan Precision Co., Ltd	-	Financial assets at fair value through profit or loss	665	100,076	0.92 %	100,076	`〞`
TBB Venture Capital Co., Ltd.	aetherAI Co., Ltd.	-	Financial assets at fair value through profit or loss	1,730	56,139	1.95 %	56,139	`〞`
TBB Venture Capital Co., Ltd.	Techplasma Technology Co., Ltd	-	Financial assets at fair value through profit or loss	944	37,191	2.84 %	37,191	Unlisted Stocks
TBB Venture Capital Co., Ltd.	Hephas Energy Corporation Ltd.	-	Financial assets at fair value through profit or loss	979	85,973	2.91 %	85,973	`〞`

(Continued)

133

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Company acquired	Type and name of the security	Relationship with the security issuer	Account	At the end of the period	At the end of the period	At the end of the period	At the end of the period	Note
				Number of shares	Carrying amount	Share proportion	Market price
TBB Venture Capital Co., Ltd.	Manford Machinery Co., Ltd	-	Financial assets at fair value through profit or loss	1,195	30,879	2.99 %	30,879	Unlisted Stocks
TBB Venture Capital Co., Ltd.	E-Fomula Technologies Inc.	-	Financial assets at fair value through profit or loss	760	30,400	2.84 %	30,400	`〞`
TBB Venture Capital Co., Ltd.	Amazing Cool Technology Co., Ltd	-	Financial assets at fair value through profit or loss	390	11,700	2.02 %	11,700	`〞`
TBB Venture Capital Co., Ltd.	Long-Shun Green Energy Technology Ltd	-	Financial assets at fair value through profit or loss	1,135	22,700	2.99 %	22,700	`〞`
TBB Venture Capital Co., Ltd.	Toyo Automation Co., Ltd	-	Financial assets at fair value through profit or loss	289	29,295	0.95 %	29,295	`〞`
TBB Venture Capital Co., Ltd.	Quants AI Inc.	-	Financial assets at fair value through profit or loss	1,600	8,432	8.89 %	8,432	`〞`
TBB Venture Capital Co., Ltd.	Honley Auto. Parts Co., Ltd	-	Financial assets at fair value through profit or loss	7,000	119,000	5.75 %	119,000	`〞`
TBB Venture Capital Co., Ltd.	Juncheng Technology Co., Ltd	-	Financial assets at fair value through profit or loss	600	10,896	1.53 %	10,896	`〞`
TBB Venture Capital Co., Ltd.	Asia Hydrogen Energy Corporation	-	Financial assets at fair value through profit or loss	490	19,959	3.34 %	19,959	`〞`
TBB Venture Capital Co., Ltd.	Eti Ca Battery Inc.	-	Financial assets at fair value through profit or loss	575	30,475	2.76 %	30,475	`〞`
TBB Venture Capital Co., Ltd.	Yi Chuan Technology Co., Ltd	-	Financial assets at fair value through profit or loss	1,189	19,020	0.98 %	19,020	`〞`
TBB Venture Capital Co., Ltd.	How Kan Entertainment Production Co., Ltd	-	Financial assets at fair value through profit or loss	580	16,103	2.87 %	16,103	`〞`
TBB Venture Capital Co., Ltd.	Maxima Biotech Inc.	-	Financial assets at fair value through profit or loss	1,425	37,506	4.76 %	37,506	`〞`
TBB Venture Capital Co., Ltd.	GoodLinker Co., Ltd.	-	Financial assets at fair value through profit or loss	100	3,000	2.86 %	3,000	`〞`
TBB Venture Capital Co., Ltd.	Yiyi Pictures Co., Ltd.	-	Financial assets at fair value through profit or loss	85	2,992	2.94 %	2,992	`〞`
TBB Venture Capital Co., Ltd.	Longwalk social enterprise, Co., Ltd.	-	Financial assets at fair value through profit or loss	120	707	12.77 %	707	`〞`
TBB Venture Capital Co., Ltd.	Carpost Co., Ltd.	-	Financial assets at fair value through profit or loss	330	3,614	2.84 %	3,614	`〞`
TBB Venture Capital Co., Ltd.	Rising FinTech Corp.	-	Financial assets at fair value through profit or loss	38	377	1.95 %	377	`〞`
TBB Venture Capital Co., Ltd.	Unoscope Technology Inc.	-	Financial assets at fair value through profit or loss	90	546	0.96 %	546	`〞`
TBB Venture Capital Co., Ltd.	Pinkoi Inc.	-	Financial assets at fair value through profit or loss	93	15,893	0.53 %	15,893	`〞`
TBB Venture Capital Co., Ltd.	Taiwania Buffalo III Biotechnology Venture Capital LLP.	-	Financial assets at fair value through profit or loss	-	72,713	4.57 %	72,713	Private Fund
TBB Venture Capital Co., Ltd.	Ju He Venture Capital LLP.	-	Financial assets at fair value through profit or loss	-	30,221	2.46 %	30,221	`〞`
TBB Venture Capital Co., Ltd.	TBB No.1 Venture Capital Limited Partnership	-	Financial assets at fair value through profit or loss	-	12,900	1.12 %	12,900	`〞`
TBB Venture Capital Co., Ltd.	Outstanding Capital Limited Partnership	-	Financial assets at fair value through profit or loss	-	27,924	4.86 %	27,924	`〞`

(Continued)

134

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Company acquired	Type and name of the security	Relationship with the security issuer	Account	At the end of the period	At the end of the period	At the end of the period	At the end of the period	Note
				Number of shares	Carrying amount	Share proportion	Market price
TBB Venture Capital Co., Ltd.	Jia Da International Development Co., Ltd.	-	Financial assets at fairvalue through other comprehensive income	2,919	30,681	8.52 %	30,681	Unlisted Stocks
TBB Consulting Co., Ltd.	Media Talk Consulting Co., Ltd	Associates	Investment under equity method	200	-	20.00 %	-
TBB Consulting Co., Ltd.	TBB No.1 Venture Capital Limited Partnership	-	Financial assets at fair value through profit or loss	-	1,190	0.11 %	1,190	Private Fund

(v) Accumulative purchases or sales of the same investee companies amounting to over $300,000 or 10% of paid-in capital: None.

(vi) Acquisition of real estate amounting to over $300,000 or 10% of paid-in capital: None.

(vii) Disposition of real estate amounting to over $300,000 or 10% of paid-in capital: None.

(viii) Discount of commissions and handling fees with related parties amounting to over $5,000: None.

(ix) Receivables from related parties amounting to over $300,000 or 10% of paid-in capital: None.
(x) Transactions of financial derivatives: None.
(xi) Sale of non-performing loans information: None.
(xii) Types of securitization instruments and related information approved by financial assets securitization rules or real estate securitization rules: None.
(xiii) Other significant transactions that might have substantial influence over the decision making of the financial statement users: None.
(c) Information on investments in Mainland China:
(i) The names of investees in Mainland China, the main businesses and products, and other information:

Name of investee company in Mainland China	Major business	Paid-in capital	Investment method (Note 1)	Accumulated amount transferred from Taiwan, beginning of the period	Investment transferred out or recovered	Investment transferred out or recovered	Accumulated amount transferred from Taiwan, end of the period	The current profit or loss of the investee (Note 2)	Shares directly or indirectly possessed by the Bank	Investment income for the period (Notes 2 and 4)	Ending carrying value of investment	Accumulated inward remittance of earnings as of the end of period
					Transferred out	Recovered
Taiwan Business Bank, Ltd. Shanghai branch	Banking business	3,910,537 (CNY800 million) (Operating capital)	(3)	3,910,537 (CNY800 million)	-	-	3,910,537 (CNY800 million)	-	Shanghai branch of the Bank, not an investee company	Note 4	4,235,319	None
Taiwan Business Bank, Ltd. Wuhan branch	Banking business	3,942,815 (CNY800 million) (Operating capital)	(3)	3,942,815 (CNY800 million)	-	-	3,942,815 (CNY800 million)	-	Wuhan branch of the Bank, not an investee company	Note 4	4,109,124	"
Taiwan Business Bank International Leasing Co., Ltd.	Leasing business	838,305 (CNY170 million) (Operating capital)	(1)	838,305 (CNY170 million)	-	-	838,305 (CNY170 million)	21,870 (2)c	100%	21,870 (2)c	973,854	"

Note 1: Investment method is divided into three categories and are listed as follows:

(1) Directly invest in Mainland China.
(2) Investment in Mainland China companies through a third region.
(3) Others: establishment of oversea branches

Note 2: The column of “Investment gains (losses)”:

(1) If the company is still in the preparation process, and does not have any investment gain or loss, please specify.
(2) The bases for recognition of investment income or loss have three methods, please specify.

a. The audited financial reports that are issued by an international accounting firm which is connected to an accounting firm in Taiwan. b The audited financial reports that are issued by the Taiwan parent company’s designated accounting firm. c. Others

(3) Please specify if information regarding current gains or losses of an investee is not retrievable.

(Continued)

135

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Note 3: The number is expressed in New Taiwan Dollars.

Note 4: The operating result of Shanghai and Wuhan branch have been included in the Bank.

(ii) Limitation on investment in Mainland China:

Name of Company	Accumulated outflow of investment from Taiwan to Mainland China, as of the end of period	Investment amount authorized by Investment Commission, MOEA	Upper limit on investment authorized by Investment Commission, MOEA
Taiwan Business Bank, Ltd. (Note)	8,691,657 (CNY 1,770 million)	8,691,657 (CNY 1,770 million)	81,637,739

Note: The investment amount in China of the subsidiary TBB International Leasing Co., Ltd. is included.

(d) Information of major shareholders:

Information of major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
Bank of Taiwan	1,486,465,695	% 16.21
National Development Fund, Executive Yuan	537,855,378	% 5.87

(Continued)

136

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(14) Segment information:

(a) General information

The chief operating decision maker is the general manager of the Bank and subsidiaries who is in charge of all major projects' approval, budget review and performance measurement. In order to express operating activities legitimately, the reportable segments of the Bank are Bank segment, Securities segment, Trust segment, Insurance agency segment and Others. Securities segment, Trust segment, Insurance agency segment and Other segments don't meet the quantitative thresholds, therefore regarded as the same reporting segment. The main operations of the banking segment are engaged in the deposits, remittance and loans in New Taiwanese Dollars or foreign currencies, as well as securities investments. The major operating activities of securities segment are securities brokerage, financing, ancillary business of futures trading and providing clients a platform for securities investment. The trust segment mainly provides customers relevant financial services, including securities under writing, custodian bank service, new type trust business and specific trust funds investing in domestic or foreign securities. Insurance agency segment primarily provides life and property insurance products to clients. Other segments include all the business of subsidiaries, which main operations are leasing, financing, consulting, and venture capital. The profit or loss of the operating segments of the Bank and subsidiaries is measured by income from continuing operation before tax. The reported amount is consistent with the financial statements which were provided to the chief operating decision maker in order to use it as the base of resource allocation and performance measurement.

(b) Segment information

For the three months ended June 30, 2025 Net interest revenue Net revenue other than interest Net revenue Bad debt expense, commitment and guarantee liability provision Operating expenses Income from continuing operation before tax For the three months ended June 30, 2024 Net interest revenue Net revenue other than interest Net revenue Bad debt expense, commitment and guarantee liability provision Operating expenses Income from continuing operation before tax	Banking Segment $ 4,887,007 3,103,938 7,990,945 (762,703) (4,026,754) $ 3,201,488 Banking Segment $ 4,644,110 2,580,688 7,224,798 (383) (3,767,687) $ 3,456,728	Securities, Trust, Insurance agent and Others 80,792 1,106,302 1,187,094 7,822 (239,088) 955,828 Securities, Trust, Insurance agent and Others 86,136 1,185,724 1,271,860 (11,954) (226,272) 1,033,634	Adjustment and Elimination - 8,326 8,326 - 7,893 16,219 Adjustment and Elimination - (118,835) (118,835) - 6,865 (111,970)	Total 4,967,799 4,218,566 9,186,365 (754,881) (4,257,949) 4,173,535 Total 4,730,246 3,647,577 8,377,823 (12,337) (3,987,094) 4,378,392

(Continued)

137

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the six months ended June 30, 2025 Net interest revenue Net revenue other than interest Net revenue Bad debt expense, commitment and guarantee liability provision Operating expenses Income from continuing operation before tax Total assets Total liabilities For the six months ended June 30, 2024	Banking Segment $ 9,640,925 5,531,164 15,172,089 (1,553,298) (7,808,113) $ 5,810,678 $ 2,388,290,087 $ 2,256,475,408 Banking Segment $ 9,078,162 5,504,990 14,583,152 (1,200,776) (7,439,527) $ 5,942,849 $ 2,250,687,327 $ 2,129,044,560	Securities, Trust, Insurance agent and Others 171,582 2,461,547 2,633,129 10,128 (509,897) 2,133,360 19,037,158 11,138,010 Securities, Trust, Insurance agent and Others 168,611 2,338,473 2,507,084 (14,513) (469,475) 2,023,096 19,740,935 11,995,182	Adjustment and Elimination - (29,168) (29,168) - 15,732 (13,436) (3,965,925) (314,996) Adjustment and Elimination - (101,851) (101,851) - 13,971 (87,880) (4,002,334) (248,323)	Total 9,812,507 7,963,543 17,776,050 (1,543,170) (8,302,278) 7,930,602 2,403,361,320 2,267,298,422 Total 9,246,773 7,741,612 16,988,385 (1,215,289) (7,895,031) 7,878,065 2,266,425,928 2,140,791,419
Net interest revenue Net revenue other than interest Net revenue Bad debt expense, commitment and guarantee liability provision Operating expenses Income from continuing operation before tax Total assets Total liabilities

No single customer represents 10% or more of the Bank and subsidiaries operating revenue. Therefore, no disclosure of major customer information is required.

AI assistant

TBB — Interim / Quarterly Report 2025

52201_rns_2025-12-24_10e23885-6cc9-48fd-9dfa-c6dbb88b453c.pdf

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Conclusion

Other Matter

KPMG

Notes to Readers

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Consolidated Balance Sheets

June 30, 2025, December 31, 2024 and June 30, 2024

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and six months ended June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the six months ended June 30, 2025 and 2024

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the six months ended June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

(2) Approval date and procedures of the consolidated financial statements:

(3) New standards, amendments and interpretations adopted:

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(4) Summary of material accounting policies:

(a) Statement of compliance

(b) Basis of consolidation

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Income taxes

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

(6) Explanation of significant accounts:

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Guarantee

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(l) Right-of-use assets

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(m) Other assets, net

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) Due to the Central Bank and banks

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(r) Payables

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(t) Bank notes payable

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(u) Other financial liabilities

(v) Provisions

Change of provision

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(w) Lease liabilities

(i) Real estate leases

TBB Interim / Quarterly Report 2025