Stock Code:2834

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Nine Months Ended September 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
9. Segment information of Security Division Page

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110～114
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114～115
116
116
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125～126
126～130
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134〜135

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 9. Segment information of Security Division	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 September 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2025 and 2024, as well as the changes in equity and cash flows for the nine months ended September 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, the Regulations Governing the Preparation of Financial Reports by Securities Firms 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 September 30, 2025 and 2024, and of its consolidated financial performance for the three months and nine months ended September 30, 2025 and 2024,, as well as its consolidated cash flows for the nine months ended September 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Public Held Banks, the Regulations Governing the Preparation of Financial Reports by Securities Firms 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

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) November 5, 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

September 30, 2025, December 31, 2024 and September 30, 2024

(Expressed in Thousands of New Taiwan Dollars)

September 30, 2025	December 31, 2024	December 31, 2024	September 30, 2024
Amount % $ 222,446,774 9 1,583,053 - 9,527,144 - 1,321,195 - 30,430,960 1 85,704 - 1,985,408,984 81 51,910,000 2 1,667,065 - 2,440,693 - 1,044,497 - 895,136 - 8,333,306 - 2,317,094,511 93 97,180,618 5 816,129 - 27,728,853 1 185,128 - 13,425,322 1 3,921,604 - 143,257,654 7 $ 2,460,352,165 100	Amount	%	Amount % 174,458,639 8 1,438,140 - 9,836,377 - 2,648,104 - 22,374,480 1 532,176 - 1,913,264,084 83 53,460,000 2 3,370,702 - 2,630,282 - 1,234,973 - 907,905 - 3,891,606 - 2,190,047,468 94 91,679,828 4 816,129 - 23,647,983 1 185,128 - 12,251,107 1 1,792,987 - 130,373,162 6 2,320,420,630 100
	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 nine months ended September 30, 2025 and 2024

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

For the nine months ended September 30, 2025 2024 Amount % Amount % 42,424,676 158 41,194,163 156 (27,327,435) (101) (26,963,583) (102) 15,097,241 57 14,230,580 54 5,483,685 20 5,230,620 20 4,402,779 16 5,031,984 19 1,435,736 5 1,135,903 4 99 - 105 - 163,381 1 335,851 1 3,530 - 16,066 - 100,703 - 116,938 - 340,055 1 403,741 2 27,027,209 100 26,501,788 100 (2,125,946) (8) (3,198,550) (12) (7,835,375) (29) (7,499,310) (29) (1,043,395) (4) (1,031,742) (4) (4,090,743) (15) (3,782,625) (14) (12,969,513) (48) (12,313,677) (47) 11,931,750 44 10,989,561 41 2,145,850 8 2,122,703 8 9,785,900 36 8,866,858 33 1,076,859 4 2,108,576 8 - - - - 1,076,859 4 2,108,576 8 (1,291,034) (5) 638,535 2 3,839,347 14 429,112 2 (246,397) (1) 147,952 - 2,794,710 10 919,695 4 3,871,569 14 3,028,271 12 13,657,469 50 11,895,129 45 1.01 0.91 1.00 0.91	For the nine months ended September 30, 2025 2024 Amount % Amount % 42,424,676 158 41,194,163 156 (27,327,435) (101) (26,963,583) (102) 15,097,241 57 14,230,580 54 5,483,685 20 5,230,620 20 4,402,779 16 5,031,984 19 1,435,736 5 1,135,903 4 99 - 105 - 163,381 1 335,851 1 3,530 - 16,066 - 100,703 - 116,938 - 340,055 1 403,741 2 27,027,209 100 26,501,788 100 (2,125,946) (8) (3,198,550) (12) (7,835,375) (29) (7,499,310) (29) (1,043,395) (4) (1,031,742) (4) (4,090,743) (15) (3,782,625) (14) (12,969,513) (48) (12,313,677) (47) 11,931,750 44 10,989,561 41 2,145,850 8 2,122,703 8 9,785,900 36 8,866,858 33 1,076,859 4 2,108,576 8 - - - - 1,076,859 4 2,108,576 8 (1,291,034) (5) 638,535 2 3,839,347 14 429,112 2 (246,397) (1) 147,952 - 2,794,710 10 919,695 4 3,871,569 14 3,028,271 12 13,657,469 50 11,895,129 45 1.01 0.91 1.00 0.91	For the nine months ended September 30, 2025 2024 Amount % Amount % 42,424,676 158 41,194,163 156 (27,327,435) (101) (26,963,583) (102) 15,097,241 57 14,230,580 54 5,483,685 20 5,230,620 20 4,402,779 16 5,031,984 19 1,435,736 5 1,135,903 4 99 - 105 - 163,381 1 335,851 1 3,530 - 16,066 - 100,703 - 116,938 - 340,055 1 403,741 2 27,027,209 100 26,501,788 100 (2,125,946) (8) (3,198,550) (12) (7,835,375) (29) (7,499,310) (29) (1,043,395) (4) (1,031,742) (4) (4,090,743) (15) (3,782,625) (14) (12,969,513) (48) (12,313,677) (47) 11,931,750 44 10,989,561 41 2,145,850 8 2,122,703 8 9,785,900 36 8,866,858 33 1,076,859 4 2,108,576 8 - - - - 1,076,859 4 2,108,576 8 (1,291,034) (5) 638,535 2 3,839,347 14 429,112 2 (246,397) (1) 147,952 - 2,794,710 10 919,695 4 3,871,569 14 3,028,271 12 13,657,469 50 11,895,129 45 1.01 0.91 1.00 0.91
2025	% 158 (101) 57 20 16 5 - 1 - - 1 100 (8) (29) (4) (15) (48) 44 8 36 4 - 4 (5) 14 (1) 10 14 50 1.01 1.00	2024 Amount 41,194,163 (26,963,583) 14,230,580 5,230,620 5,031,984 1,135,903 105 335,851 16,066 116,938 403,741 26,501,788 (3,198,550) (7,499,310) (1,031,742) (3,782,625) (12,313,677) 10,989,561 2,122,703 8,866,858 2,108,576 - 2,108,576 638,535 429,112 147,952 919,695 3,028,271 11,895,129
Amount 42,424,676 (27,327,435) 15,097,241 5,483,685 4,402,779 1,435,736 99 163,381 3,530 100,703 340,055 27,027,209 (2,125,946) (7,835,375) (1,043,395) (4,090,743) (12,969,513) 11,931,750 2,145,850 9,785,900 1,076,859 - 1,076,859 (1,291,034) 3,839,347 (246,397) 2,794,710 3,871,569 13,657,469

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 nine months ended September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

			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 - - 510,828 2,517,443 510,828 2,517,443 - - - - - - - - - - - (2,219,878) (118,330) 1,911,317 200,058 137,384 - - (1,032,827) 4,904,396 (1,032,827) 4,904,396 - - - - - - - (287,407) (832,769) 4,754,373	Total
Share capital Common stock $ 82,224,061 - - - - - - 9,455,767 - - $ 91,679,828 $ 91,679,828 - - - - - 5,500,790 - $ 97,180,618	Capital surplus 815,900 - - - - - - - 229 - 816,129 816,129 - - - - - - - 816,129		Retained earnings
		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 8,866,858 - 8,866,858 (3,619,118) 3,769,675 (1,644,481) (9,455,767) - 2,219,878 12,251,107 14,767,272 9,785,900 - 9,785,900 (4,080,870) (1,833,597) (5,500,790) 287,407 13,425,322	Total 36,097,730 8,866,858 - 8,866,858 - - (1,644,481) (9,455,767) - 2,219,878 36,084,218 38,600,383 9,785,900 - 9,785,900 - (1,833,597) (5,500,790) 287,407 41,339,303	Exchange differences on translation of foreign financial statements (629,158) - 510,828 510,828 - - - - - - (118,330) 200,058 - (1,032,827) (1,032,827) - - - - (832,769)
							120,122,285 8,866,858 3,028,271 11,895,129 - - (1,644,481) - 229 - 130,373,162 131,433,782 9,785,900 3,871,569 13,657,469 - (1,833,597) - - 143,257,654

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 nine months ended September 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 (gains) 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 Reversal of impairment loss on financial assets Other items Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Changes in operating assets: Increase in due from the central bank and call loans to banks Increase in financial assets at fair value through profit or loss Increase in securities purchased under resell agreements Increase in receivables Increase in discounts and loans (Increase) decrease in other financial assets Increase in other assets Total changes in operating assets Changes in operating liabilities: (Decrease) increase in deposits from the central bank and banks Decrease in financial liabilities at fair value through profit or loss (Decrease) increase in notes and bonds issued under repurchase agreement Increase (decrease) in payable Increase in deposits and remittances (Decrease) increase 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 outflow generated from operations Interest received Interest paid Income taxes paid Net cash flows from (used in) operating activities Cash flows from (used in) investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal 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) from investing activities Cash flows from (used in) 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 Cash dividends paid Other financing activities 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 nine months ended September 30, 2025 2024 $ 11,931,750 10,989,561 699,652 762,021 343,743 269,721 2,090,990 3,171,466 (267,395) 629,219 27,327,435 26,963,583 (99) (105) (42,424,676) (41,194,163) 46,055 60,159 (10,531) (32,493) 4,634 1,574 (3,530) (16,066) (6) (8) (12,193,728) (9,385,092) (8,246,479) (23,914,184) (16,405,068) (5,874,472) (19,517,317) (5,632,984) (243,693) (749,272) (38,063,536) (85,337,560) (3,396) 1,925 (314,293) (6,656,293) (82,793,782) (128,162,840) (18,250,898) 11,296,083 (1,091,472) (132,833) (689,913) 861,389 8,612,987 (4,336,229) 81,567,132 89,850,850 (861,067) 1,234,300 22,191 (301,841) 10,677,723 - 79,986,683 98,471,719 (2,807,099) (29,691,121) (15,000,827) (39,076,213) (3,069,077) (28,086,652) 42,743,863 41,010,333 (25,590,018) (24,581,998) (3,052,561) (1,741,995) 11,032,207 (13,400,312) (4,064,518) - - 8,598,199 (163,219,382) (175,296,228) 152,714,899 177,941,087 (363,622) (285,780) 31 79 (432,056) 1,032,804 (345,010) (434,603) (15,709,658) 11,555,558 139,547 6,300 (1,550,000) (390,000) (1,969,207) 586,058 (349,076) (349,480) (42,087) (1,667,411) (1,833,597) (1,644,481) - 229 (5,604,420) (3,458,785) (58,815) 480 (10,340,686) (5,303,059) 35,663,893 34,356,881 $ 25,323,207 29,053,822
	2025 $ 11,931,750 699,652 343,743 2,090,990 (267,395) 27,327,435 (99) (42,424,676) 46,055 (10,531) 4,634 (3,530) (6) (12,193,728) (8,246,479) (16,405,068) (19,517,317) (243,693) (38,063,536) (3,396) (314,293) (82,793,782) (18,250,898) (1,091,472) (689,913) 8,612,987 81,567,132 (861,067) 22,191 10,677,723 79,986,683 (2,807,099) (15,000,827) (3,069,077) 42,743,863 (25,590,018) (3,052,561) 11,032,207 (4,064,518) - (163,219,382) 152,714,899 (363,622) 31 (432,056) (345,010) (15,709,658) 139,547 (1,550,000) (1,969,207) (349,076) (42,087) (1,833,597) - (5,604,420) (58,815) (10,340,686) 35,663,893 $ 25,323,207

Cash flows from operating activities:
Net income before tax
Adjustments:
Income and expences items:
Depreciation expense
Amortization expense
Provision for bad debt expense
Net (gains) 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
Reversal of impairment loss on financial assets
Other items
Total adjustments to reconcile profit (loss)
Changes in operating assets and liabilities:
Changes in operating assets:
Increase in due from the central bank and call loans to banks
Increase in financial assets at fair value through profit or loss
Increase in securities purchased under resell agreements
Increase in receivables
Increase in discounts and loans
(Increase) decrease in other financial assets
Increase in other assets
Total changes in operating assets
Changes in operating liabilities:
(Decrease) increase in deposits from the central bank and banks
Decrease in financial liabilities at fair value through profit or loss
(Decrease) increase in notes and bonds issued under repurchase agreement
Increase (decrease) in payable
Increase in deposits and remittances
(Decrease) increase 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 outflow generated from operations
Interest received
Interest paid
Income taxes paid
Net cash flows from (used in) operating activities
Cash flows from (used in) investing activities:
Acquisition of financial assets at fair value through other comprehensive income
Proceeds from disposal 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) from investing activities
Cash flows from (used in) 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
Cash dividends paid
Other financing activities
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 nine months ended September 30,
2025
2024
$ 11,931,750
10,989,561
699,652
762,021
343,743
269,721
2,090,990
3,171,466
(267,395)
629,219
27,327,435
26,963,583
(99)
(105)
(42,424,676)
(41,194,163)
46,055
60,159
(10,531)
(32,493)
4,634
1,574
(3,530)
(16,066)
(6)
(8)
(12,193,728)
(9,385,092)
(8,246,479)
(23,914,184)
(16,405,068)
(5,874,472)
(19,517,317)
(5,632,984)
(243,693)
(749,272)
(38,063,536)
(85,337,560)
(3,396)
1,925
(314,293)
(6,656,293)
(82,793,782)
(128,162,840)
(18,250,898)
11,296,083
(1,091,472)
(132,833)
(689,913)
861,389
8,612,987
(4,336,229)
81,567,132
89,850,850
(861,067)
1,234,300
22,191
(301,841)
10,677,723
-
79,986,683
98,471,719
(2,807,099)
(29,691,121)
(15,000,827)
(39,076,213)
(3,069,077)
(28,086,652)
42,743,863
41,010,333
(25,590,018)
(24,581,998)
(3,052,561)
(1,741,995)
11,032,207
(13,400,312)
(4,064,518)
-
-
8,598,199
(163,219,382)
(175,296,228)
152,714,899
177,941,087
(363,622)
(285,780)
31
79
(432,056)
1,032,804
(345,010)
(434,603)
(15,709,658)
11,555,558
139,547
6,300
(1,550,000)
(390,000)
(1,969,207)
586,058
(349,076)
(349,480)
(42,087)
(1,667,411)
(1,833,597)
(1,644,481)
-
229
(5,604,420)
(3,458,785)
(58,815)
480
(10,340,686)
(5,303,059)
35,663,893
34,356,881
$
25,323,207
29,053,822

2025
$ 11,931,750
699,652
343,743
2,090,990
(267,395)
27,327,435
(99)
(42,424,676)
46,055
(10,531)
4,634
(3,530)
(6)
(12,193,728)
(8,246,479)
(16,405,068)
(19,517,317)
(243,693)
(38,063,536)
(3,396)
(314,293)
(82,793,782)
(18,250,898)
(1,091,472)
(689,913)
8,612,987
81,567,132
(861,067)
22,191
10,677,723
79,986,683
(2,807,099)
(15,000,827)
(3,069,077)
42,743,863
(25,590,018)
(3,052,561)
11,032,207
(4,064,518)
-
(163,219,382)
152,714,899
(363,622)
31
(432,056)
(345,010)
(15,709,658)
139,547
(1,550,000)
(1,969,207)
(349,076)
(42,087)
(1,833,597)
-
(5,604,420)
(58,815)
(10,340,686)
35,663,893
$
25,323,207

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 September 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 September 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 September 30, 2025, December 31 and September 30, 2024, the Bank and subsidiaries have 5,923, 5,740 and 5,782 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 November 5, 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 have 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 are 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 and subsidiaries are permitted to deem the financial liability (or part of it) to be discharged before the settlement date only if, and only if, the Bank and subsidiaries have initiated a payment instruction that results in all of the following: (a) the Bank and subsidiaries having no practical ability to withdraw, stop or cancel the payment instruction; (b) the Bank and subsidiaries 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 are 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 and subsidiaries, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Effective date per Interpretations Content of amendment IASB IFRS 18 “Presentation and The new standard introduces three January 1, 2027 Disclosure in Financial categories of income and expenses, two Note: On September Statements” income statement subtotals and one single 25, 2025, the FSC note on management performance issued a press release measures. The three amendments, announcing that combined with enhanced guidance on how Taiwan will adopt to disaggregate information, set the stage IFRS 18 beginning in for better and more consistent information 2028. Entities that for users, and will affect all the entities. need to adopt the new ●A more structured income statement: standard earlier may under current standards, companies use do with the different formats to present their results, endorsement of the making it difficult for investors to FSC. 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 are 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 and subsidiaries complete its evaluation.

The Bank and subsidiaries do 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” and amendments to 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.	Established location Main business scope	Shareholding (Holding %)	Shareholding (Holding %)
		September 30, 2025	December 31, 2024 September 30, 2024 100 100 100 100 100 100 100 100
	Taiwan Leasing business China Leasing business Cambodia Financial company Taiwan Investing business	100 100 100 100

(Continued)

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

TBB Consulting Co., Ltd.	Established location Main business scope	Shareholding (Holding %)	Shareholding (Holding %)
		September 30, 2025	December 31, 2024 September 30, 2024 100 100
	Taiwan Consulting business	100

(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

Petty cash and revolving funds Foreign currencies on hand Checks for clearing Due from other banks Total	September 30, 2025 $ 10,500,536 939,786 2,416,587 11,466,298 $ 25,323,207	December 31, 2024 16,244,131 1,028,938 2,406,858 15,983,966 35,663,893	September 30, 2024
			10,293,759 970,302 1,979,595 15,810,166
			29,053,822

(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	September 30, 2025 $ 85,999,680 51,536 89,943,217 140,000 (140,000) $ 175,994,433	December 31, 2024 117,075,985 49,318 50,630,445 120,000 (120,000) 167,755,748	September 30, 2024 82,601,986 58,099 61,186,669 120,000 (120,000) 143,846,754

As of September 30, 2025, December 31 and September 30, 2024, in accordance with the Banking Law and the Central Bank Law, the required reserve deposited by the Bank and subsidiaries with the Central Bank amounted to $85,302,421, $116,625,097 and $82,158,564 of which $62,679,002, $58,351,432 and $57,305,148 respectively, were restricted and such restriction may only be lifted when the required reserve is adjusted to a lower amount.

As of September 30, 2025, December 31 and September 30, 2024, the Bank’ s subsidiaries and overseas branches, in compliance with the Central Bank’ s reserve requirement set by local authorities, deposited $344,325, $129,995 and $122,156 and in reserve, of which $87,631, $63,880 and $50,872 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 September 30, 2025, December 31 and September 30, 2024, the required reserve with the Central Bank amounted to $352,934, $320,893 and $321,266 respectively, and its use was unrestricted.

As of September 30, 2025, December 31 and September 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 Deapartment of Foreign Exchange, the Central Bank of the Republic of China, the Bank and subsidiaries comply 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 September 30, 2025, December 31 and September 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	September 30, 2025 $ 7,936 3,313,214 6,549 24,101 151,380 94,431,843 952,323 583,551 211,029 201,702 $ 99,883,628	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	September 30, 2024
			16,571 3,166,048 8,855 26,691 - 74,241,175 779,843 481,881 265,288 200,000
			79,186,352

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	September 30, 2025 $ 239,975,842 21,006,488 2,472,671 2,472,671 894,213	December 31, 2024 September 30, 2024 212,126,990 208,347,213 12,985,786 12,318,561 1,229,438 1,706,400 1,229,438 1,706,400 1,472,936 1,511,474

(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	September 30, 2025 $ 29,769,682 $ 29,840,800 2025.10.01~2025.10.27 1.45%~1.47% $ 29,798,448	December 31, 2024 10,252,365 10,287,300 2025.01.06~2025.01.17 1.64%~1.65% 10,259,976	September 30, 2024 12,743,469
			12,772,600
			2024.10.01~2024.10.17
			1.57%~1.59% 12,752,440

(e) Receivables, net

Interest receivable Acceptances receivable Accrued income Accounts receivable Spot exchange receivable-foreign currencies Credit cards accounts receivable Receivable price of securities purchased for customers Installment receivables and leases Other receivables Sub-total Less: Allowance for bad debts Total	September 30, 2025 $ 5,710,618 942,227 581,137 1,095,340 7,924 1,333,338 892,285 2,198,055 445,408 13,206,332 (157,460) $ 13,048,872	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	September 30, 2024
			5,664,546 989,034 524,562 1,303,636 113,597 1,241,156 567,099 2,204,594 356,635
			12,964,859 (127,613)
			12,837,246

The outstanding contract amount of financial assets that have been written off and still have recourse as of September 30, 2025, December 31 and September 30, 2024 were $87,333,987, $85,862,421 and $86,111,284 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 Write-off 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	September 30, 2025 $ 128,613 780,468 1,205 824,505 162,155,529 248,054,891 3,083,424 216,894,097 321,036,652 47,747,324 675,494,717 1,193,056 1,677,394,481 (241,684) (22,012,903) $ 1,655,139,894	For the nine months ended September 30, 2025 2024 $ 133,030 121,512 24,898 11,331 - (6,558) (468) 1,328 $ 157,460 127,613 December 31, 2024 September 30, 2024 220,924 122,577 634,680 662,328 19,228 19,485 835,678 2,781,851 180,131,363 168,668,611 233,140,541 222,823,286 4,072,823 3,763,427 219,030,813 216,481,114 329,201,296 330,274,599 41,693,266 39,087,942 630,763,210 609,043,263 1,440,665 1,282,942 1,641,184,487 1,595,011,425 (273,170) (289,661) (21,874,983) (21,257,229) 1,619,036,334 1,573,464,535
		2025 $ 133,030 24,898 - (468) $ 157,460 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

(Continued)

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

The change in allowance for bad debts was as follows:

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 nine months ended September 30,
	2025 $ 21,874,983 2,069,767 (15,659) (4,161,520) 2,307,978 (62,646) $ 22,012,903	2024
		19,602,842 3,177,070 (14,542) (3,417,346) 1,880,892 28,313 21,257,229

(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	September 30, 2025 $ 55,987,457 89,196,555 27,727,634 612,899 173,524,545 10,652,844 9,738,037 100,500 20,491,381 $ 194,015,926	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	September 30, 2024
			55,836,681 73,388,896 36,281,047 627,456
			166,134,080
			9,580,798 7,525,758 126,708 17,233,264 183,367,344

(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 $591,159, $681,875, $1,434,405 and $1,135,725, respectively as dividend revenue for the three months and nine months ended September 30, 2025 and 2024.

In which, the disposal of equity instruments were recognized $610,133, $532,861, $683,644 and $627,699 as dividend revenue for the three months and nine months ended September 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 $15,540,323, $14,439,867, $18,147,032 and $18,695,507, and gains on disposal are $210,173, $2,103,202, $287,407 and $2,219,878 for the three months and nine months ended September 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	September 30, 2025 $ 138,900	December 31, 2024 226,900	September 30, 2024
			169,400

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

The changes in the allowance for credit losses attributed	to the FVOCI were as follows:
Beginning balance Reversal Foreign exchange Ending balance	For the nine months ended September 30, 2025 2024 $ 87,728 100,349 (12,900) (12,508) (1,342) 577 $ 73,486 88,418
	2025 $ 87,728 (12,900) (1,342) $ 73,486

(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	September 30, 2025 $ 171,770,000 18,401,761 30,898,490 19,684,940 64,124 240,819,315 (81,190) $ 240,738,125	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	September 30, 2024
			174,715,000 27,159,924 30,465,324 17,924,400 66,360
			250,331,008 (77,139)
			250,253,869

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 as 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	September 30, 2025 $ 1,266,100 64,124 2,000,000 29,000,000 200,000 $ 32,530,224	December 31, 2024 850,600 68,849 2,000,000 29,000,000 200,000 32,119,449	September 30, 2024
			2,118,000 561,096 2,000,000 29,000,000 200,000
			33,879,096

(Continued)

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

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

amortized cost were as follows:
Beginning balance Provision (reversal) Foreign exchange Ending balance	For the nine months ended September 30,
	2025 $ 72,325 9,370 (505) $ 81,190	2024 80,620 (3,558) 77
		77,139

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

For the three months ended September 30, 2025	For the three months ended September 30, 2025	For the nine months ended September 30, 2025	For the nine months ended September 30, 2025
The carrying amount at the date of derecognition Gain (Loss) on disposal $ 2,007 17 For the three months ended September 30, 2024	Gain (Loss) on disposal	The carrying amount at the date of derecognition Gain (Loss) on disposal 9,286 99 For the nine months ended September 30, 2024	Gain (Loss) on disposal
	17		99
The carrying amount at the date of derecognition $ 4,440	Gain (Loss) on disposal	The carrying amount at the date of derecognition 9,663	Gain (Loss) on disposal
	49		105

For the three months and nine months ended September 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 $2,000 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	September 30, 2025 $ 15,495 (9,306) $ 6,189	December 31, 2024 15,380 (8,543) 6,837	September 30, 2024
			16,569 (9,157) 7,412

The change in allowance for bad debts was as follows:

Beginning balance Reversal Transfer in Write-off Written-off recovered Ending balance	For the nine months ended September 30,	For the nine months ended September 30,
	2025 $ 8,543 (11,615) 15,659 (16,697) 13,416 $ 9,306	2024
		11,490 (15,652) 14,542 (14,686) 13,463
		9,157

(k) Property and equipment, net

September 30, 2025	Cost $ 6,746,952 8,301,074 2,863,782 255,306 724,884 205,231 13,940 184,911 $ 19,296,080 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 - 5,341,363 2,238,425 219,414 568,908 145,515 - - 8,513,625 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 2,976,141 625,357 35,892 155,976 59,716 13,940 184,911
Land Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Leasehold improvements Construction in progress Prepayment for equipment Total December 31, 2024
					13,769,475
					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

September 30, 2024	Cost $ 6,746,952 8,191,065 2,951,613 270,986 692,849 205,944 14,852 187,852 $ 19,262,113	Revaluation increment 2,984,621 31,184 - - - - - - 3,015,805	Accumulated depreciation - 5,122,647 2,348,127 234,840 570,917 128,703 - - 8,405,234	Accumulated impairment 14,031 14,754 - - - - - - 28,785	Total 9,717,542 3,084,848 603,486 36,146 121,932 77,241 14,852 187,852
Land Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Leasehold improvements Construction in progress Prepayment for equipment Total
					13,843,899

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 - 59,593 155,900 8,230 49,968 13,320 22,648 83,983 393,642 Increase - 47,376 198,690 15,962 44,646 18,451 1,452 66,714 393,291	Decrease - - 305,464 24,057 30,646 8,925 10,520 118,414 498,026 Decrease - - 59,250 10,424 24,435 17,268 48,337 99,915 259,629	Foreign Exchange - - (4,773) (770) (2,455) (3,173) - 177 (10,994) Foreign Exchange - - 2,218 532 1,220 1,623 - 248 5,841	September 30, 2025
					9,731,573 8,332,258 2,863,782 255,306 724,884 205,231 13,940 184,911
					22,311,885
					September 30, 2024 9,731,573 8,222,249 2,951,613 270,986 692,849 205,944 14,852 187,852
					22,277,918

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 155,774 157,882 8,629 26,929 24,080 373,294	Decrease - 301,047 23,944 30,511 8,925 364,427	Foreign Exchange - (4,113) (533) (2,246) (3,020) (9,912)	September 30, 2025 5,341,363 2,238,425 219,414 568,908 145,515
					8,513,625

(Continued)

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

Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Leasehold improvements Total	January 1, 2024 $ 4,979,561 2,170,544 227,359 565,428 119,859 $ 8,062,751	Increase 143,086 233,414 17,563 28,569 24,770 447,402	Decrease - 57,913 10,362 24,181 17,268 109,724	Foreign Exchange - 2,082 280 1,101 1,342 4,805	September 30, 2024 5,122,647 2,348,127 234,840 570,917 128,703
					8,405,234

Accumulated impairment

Land Buildings Total Land Buildings Total	January 1, 2025 $ 14,031 14,754 $ 28,785 January 1, 2024 $ 14,031 14,754 $ 28,785	Increase - - - Increase - - -	Decrease - - - Decrease - - -	Foreign Exchange - - - Foreign Exchange - - -	September 30, 2025 14,031 14,754
					28,785
					September 30, 2024 14,031 14,754
					28,785

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 September 30, 2025, December 31 and September 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 September 30, 2025, December 31 and September 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:

September 30, 2025	Cost $ 2,048,090 98,966 13,105 $ 2,160,161	Accumulated depreciation 1,080,000 56,992 7,304 1,144,296	Accumulated impairment - - - -	Total 968,090 41,974 5,801
Buildings Transportation equipment Miscellaneous equipment Total
				1,015,865

(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 $ 2,086,890 13,200 95,757 13,911 $ 2,209,758	Accumulated depreciation 901,041 53,951 6,500 961,492 Accumulated depreciation 929,925 13,200 52,314 6,645 1,002,084	Accumulated impairment - - - - Accumulated impairment - - - - -	Total 1,221,414 38,845 6,771
Buildings Transportation equipment Miscellaneous equipment Total September 30, 2024
				1,267,030
				Total 1,156,965 - 43,443 7,266
Buildings Machinery and equipment Transportation equipment Miscellaneous equipment Total
				1,207,674

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 64,811 24,542 1,280 90,633 Increase 220,052 - 20,200 3,256 243,508	Decrease 119,990 17,840 1,446 139,276 Decrease 170,354 12,978 4,954 829 189,115	Foreign Exchange (19,186) (532) - (19,718) Foreign Exchange 11,180 - 114 - 11,294	September 30, 2025 2,048,090 98,966 13,105
					2,160,161
					September 30, 2024 2,086,890 13,200 95,757 13,911
					2,209,758

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 303,864 20,244 2,250 326,358 Increase 305,206 3 20,131 2,256 327,596	Decrease 118,620 16,986 1,446 137,052 Decrease 168,534 12,977 4,954 829 187,294	Foreign Exchange (6,285) (217) - (6,502) Foreign Exchange 2,095 - 65 - 2,160	September 30, 2025 1,080,000 56,992 7,304
					1,144,296
					September 30, 2024 929,925 13,200 52,314 6,645
					1,002,084

(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	September 30, 2025 $ 29,730 4,234,371 30,935 3,251,485 280 - 7,780 203,683 $ 7,758,264	December 31, 2024 29,855 5,143,289 32,866 2,819,429 237 3,877,085 100,889 176,431 12,180,081	September 30, 2024
			29,770 15,251,862 32,866 1,374,993 251 - 284,766 176,431
			17,150,939

(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	September 30, 2025 $ 237,442 14,962,150 204,937 36,303,900 639,010 170,099,335 $ 222,446,774	December 31, 2024 171,214 16,064,650 328,917 36,436,700 596,856 187,099,335 240,697,672	September 30, 2024
			230,181 15,484,000 345,398 26,003,586 296,139 132,099,335
			174,458,639

(Continued)

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

(o) Due to the Central Bank and banks

		September 30, 2025
Currency TWD TWD TWD TWD TWD USD CNY CNY	Interest Rate 2.000% 2.048% 1.950% 1.875% 1.875% 5.220%~5.520% 3.550% 3.400%	Maturity Date 2025.10.27 2025.11.20 2025.11.26~2026.02.13 2026.02.21 2026.01.02~2026.09.24 2026.07.18 2026.05.23 2026.09.18 December 31, 2024	Original Amount NTD Amount 320,000 $ 320,000 30,000 30,000 300,000 300,000 60,000 60,000 270,000 270,000 14,700 448,865 16,000 68,528 20,000 85,660 $ 1,583,053 $ 1,762,770

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	NTD Amount

(Continued)

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

Agricultural Bank of Taiwan Hua Nan Commercial Bank, Ltd Mega International Commercial Bank First Commercial Bank Sunny Commerical Bank (OBU) First Commercial Bank (Shanghai) Bank SinoPac (Shanghai) Taiwan Cooperative Bank (Suzhou) Total Unused credit lines			September 30, 2024
	Currency TWD TWD TWD TWD USD CNY CNY CNY	Interest Rate 1.75%~1.95% 1.864%~2.018% 1.75%~1.95% 1.825%~1.95% 6.29%~6.59% 4.00% 3.90% 4.00%	Maturity Date 2025.09.27 2025.01.02 2025.06.16 2024.11.30~2025.03.09 2025.07.08 2025.05.23 2025.03.15 2025.05.16	Original Amount NTD Amount 385,000 $ 385,000 30,000 30,000 190,000 190,000 220,000 220,000 16,900 534,040 5,000 22,600 9,500 42,940 3,000 13,560 $ 1,438,140 $ 2,143,140

(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	September 30, 2025 $ 9,183,831 10,838 200,115 6,559 125,801 $ 9,527,144	December 31, 2024 9,927,272 18,220 256,384 11,360 - 10,213,236	September 30, 2024
			9,474,141 4,436 348,937 8,863 -
			9,836,377

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

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

(Continued)

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

(q) Notes and bonds issued under repurchase agreement

Assets	September 30, 2025	September 30, 2025	September 30, 2025	September 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	$ 1,368,480	1,321,195	1,325,836	2025/10/3~2026/3/31

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

Assets	September 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	$ 2,845,110	2,648,104	2,671,269	2024/10/1~2025/4/29

(Continued)

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

(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	September 30, 2025 $ 10,381,603 2,432,987 954,262 4,078,631 10,686,670 33,804 35,570 8,351 931,073 297,477 2,997 581,507 6,028 $ 30,430,960 September 30, 2025 $ 812,984,723 637,329,942 512,782,650 21,909,209 402,460 $ 1,985,408,984	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	September 30, 2024
			9,634,435 2,012,287 998,332 3,351,592 4,405,463 79,773 99,061 120,156 1,111,998 421,625 2,917 132,985 3,856
			22,374,480
			September 30, 2024
			780,482,915 646,908,191 463,325,902 22,182,450 364,626
			1,913,264,084

(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	September 30, 2025 $ - - 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 - $ 51,910,000	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	September 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	September 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	September 30, 2025 $ 3,664,200 5,496,300 23,331 $ 9,183,831	December 31, 2024 3,934,200 5,901,300 91,772 9,927,272
							3,792,000 5,688,000 (5,859)
							9,474,141

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	September 30, 2025 $ 9,183,831 713,429 23,331	December 31, 2024 September 30, 2024 9,927,272 9,474,141 695,984 544,788 91,772 (5,859)

(Continued)

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

(u) Other financial liabilities

Cumulative earnings on appropriated loans fund	September 30, 2025 $ 1,667,065	December 31, 2024 2,528,132	September 30, 2024
			3,370,702

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	September 30, 2025 $ 392,724 52,480 76,719 1,918,770 $ 2,440,693	December 31, 2024 347,009 64,682 76,151 1,896,579 2,384,421	September 30, 2024
			344,676 60,591 75,954 2,149,061
			2,630,282

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 46,055 - 568 131,742 178,365 Increase 60,159 - 582 143,184 203,925	Decrease - 11,099 - 88,370 99,469 Decrease - 33,075 - 405,166 438,241	Use - - - 21,181 21,181 Use - - - 39,859 39,859	Foreign exchange (340) (1,103) - - (1,443) Foreign exchange 105 977 - - 1,082	September 30, 2025
						392,724 52,480 76,719 1,918,770
						2,440,693
						September 30, 2024
						344,676 60,591 75,954 2,149,061
						2,630,282

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	September 30, 2025 $ 376,047 $ 668,450	December 31, 2024 431,412 875,883	September 30, 2024
			405,543
			829,430

The amounts recognized in profit or loss were as follows:

For the three months ended September 30, 2025 2024 $ 3,685 4,253 $ 3,741 5,828 $ 5,516 5,045	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ 3,685 $ 3,741 $ 5,516	2025 11,946 12,475 14,714	2024
		13,171
		15,675
		13,972

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

Total cash outflow for leases	For the nine months ended September 30,	For the nine months ended September 30,
	2025 $ 376,265	2024
		379,127

(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	September 30, 2025 $ 3,446 418,585 69,139 998,872 6,800,638 42,626 $ 8,333,306	December 31, 2024 4,193 457,394 71,964 2,968,079 - 42,332 3,543,962	September 30, 2024
			5,334 490,313 63,539 1,973,848 1,316,965 41,607
			3,891,606

(y) Equity

(i) Common stock

As of September 30, 2025, December 31 and September 30, 2024, the Bank’ s authorized capital were all $100,000,000, and the paid-in capital for common shares of the Bank were $97,180,618, $91,679,828 and $91,679,828, respectively, with a par value of $10 per share. The outstanding shares were 9,718,062, 9,167,983 and 9,167,983 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. The Bank has completed the alteration of the registered capital amount on September 2, 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	September 30, 2025 $ 815,900 229 $ 816,129	December 31, 2024 815,900 229 816,129	September 30, 2024
			815,900 229
			816,129

(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 September 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 September 30, 2024	Unrealized gains from financial assets measured at fair value through other comprehensive income $ 137,384 (268) 4,905,995 (1,331) - (287,407) $ 4,754,373 $ 1,613,752 379 2,517,242 (178) - (2,219,878) $ 1,911,317	Exchange differences on translation of foreign financial statements 200,058 (37,993) - - (994,834) - (832,769) (629,158) 34,821 - - 476,007 - (118,330)	Total 337,442 (38,261) 4,905,995 (1,331) (994,834) (287,407) 3,921,604 984,594 35,200 2,517,242 (178) 476,007 (2,219,878) 1,792,987

(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 September 30, 2025 2024 Current tax expense Current period $ 531,376 696,086 Adjustment for prior period 499 (1,581) Additional surtax on undistributed retained earnings - 11,345 Income Basic Tax - 1,329 531,875 707,179 Deferred tax expense Origination and reversal of temporary different 108,634 (201,899) Changes in unrecognized deductible temporary different (2,043) (16,563) Income tax expenses $ 638,466 488,717	For the nine months ended September 30,	For the nine months ended September 30,
	2025 1,943,979 70,413 109,401 - 2,123,793 19,704 2,353 2,145,850	2024
		2,203,622 (69,306) 53,524 2,558
		2,190,398 (48,142) (19,553)
		2,122,703

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

For the three months ended September 30, 2025 2024 $ 220,195 (84,004) (200) 18,001 $ 219,995 (66,003)	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ 220,195 (200) $ 219,995	2025 (258,207) 11,810 (246,397)	2024
		127,707 20,245
		147,952

(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 has 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 September 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 September 30, 2025, December 31 and September 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	September 30, 2025 $ 815,225 1,103,545 $ 1,918,770	December 31, 2024 823,657 1,072,922 1,896,579	September 30, 2024
			994,589 1,154,472
			2,149,061

(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.

(Continued)

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

The Bank and subsidiaries recognized the expenses amounting to $33,699, $37,056, $101,107 and $111,175 for the three months and nine months ended September 30, 2025 and 2024, respectively.

(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 $57,640, $51,721, $169,970 and $154,520 for the three months and nine months ended September 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 $66,550, $65,823, $198,563 and $197,430 for the three months and nine months ended September 30, 2025 and 2024, respectively.

(ab) Earnings per share

For the three months ended September 30, 2025 2024 $ 3,362,682 2,622,779 9,718,062 9,718,062 $ 0.35 0.27 21,705 17,567 9,739,767 9,735,629 $ 0.35 0.27	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ 3,362,682 9,718,062 $ 0.35 21,705 9,739,767 $ 0.35	2025 9,785,900 9,718,062 1.01 48,583 9,766,645 1.00	2024
		8,866,858
		9,718,062
		0.91
		44,545
		9,762,607
		0.91

Note 1: The retroactive adjustment was applied to earnings per share for the periods from January 1 to September 30, 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 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% should be allocated as employee remuneration and no more than 0.6% as remunerations for directors and supervisors.

For the three months and nine months ended September 30, 2025 and 2024, the estimated employee remuneration were $341,856, $264,337, $765,188 and $670,278, and the estimated directors’ remuneration were $34,186, $26,434, $76,519 and $67,028, 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 September 30, 2025 2024 $ 3,765,484 3,944,351 7,756,085 7,322,919 1,072 1,274 7,591 7,461 10,085 9,777 585,437 552,322 162,467 161,149 283,914 434,584 1,428,975 1,475,154 8,898 8,940 46,707 148,082 86,117 51,639 56,263 70,592 140,043 128,834 14,339,138 14,317,078 8,229,251 8,484,472 121 844 596,901 581,463 200,605 202,138 7,411 22,512 20,115 41,842 9,054,404 9,333,271 $ 5,284,734 4,983,807	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ 3,765,484 7,756,085 1,072 7,591 10,085 585,437 162,467 283,914 1,428,975 8,898 46,707 86,117 56,263 140,043 14,339,138 8,229,251 121 596,901 200,605 7,411 20,115 9,054,404 $ 5,284,734	2025 11,307,033 22,904,648 3,153 23,398 29,846 1,611,247 479,747 821,946 4,272,235 26,368 170,781 220,205 174,171 379,898 42,424,676 24,886,905 352 1,707,093 597,582 57,251 78,252 27,327,435 15,097,241	2024
		11,344,555 21,179,885 4,298 21,321 23,151 1,597,269 441,600 1,213,913 4,412,179 26,100 236,772 115,674 215,211 362,235
		41,194,163
		24,404,635 6,142 1,786,868 602,840 42,797 120,301
		26,963,583
		14,230,580

(Continued)

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

(ae) Net service fee revenue

For the three months ended September 30, 2025 2024 $ 16,061 17,137 10,190 10,096 1,938 2,146 2,393 1,366 243 255 807 608 207,145 211,842 106,489 91,932 5,171 6,729 32,307 30,791 42,603 50,034 833,547 580,818 53,985 50,297 20,174 19,554 564 758 497,438 387,856 49,484 108,923 1,880,539 1,571,142 8,372 8,034 55,188 50,753 1,422 930 393 364 35,345 32,653 1,778 1,835 2,527 2,140 14,842 14,657 851 509 13 2 6,286 6,232 127,017 118,109 $ 1,753,522 1,453,033	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ 16,061 10,190 1,938 2,393 243 807 207,145 106,489 5,171 32,307 42,603 833,547 53,985 20,174 564 497,438 49,484 1,880,539 8,372 55,188 1,422 393 35,345 1,778 2,527 14,842 851 13 6,286 127,017 $ 1,753,522	2025 47,896 33,755 6,182 5,254 1,733 2,187 557,284 319,645 15,550 96,307 126,961 2,854,820 162,918 59,497 1,762 1,410,728 156,596 5,859,075 24,317 163,244 3,247 1,244 103,988 5,462 6,588 46,151 1,803 13 19,333 375,390 5,483,685	2024
		49,913 28,886 6,510 4,360 1,470 1,844 538,378 235,366 19,394 90,807 136,823 2,330,061 145,748 59,193 2,289 1,670,609 261,825
		5,583,476
		22,560 154,592 2,820 1,068 94,247 5,847 4,662 44,604 4,211 2 18,243
		352,856
		5,230,620

(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 September 30, 2025 2024 $ (326,145) (333,820) 115,237 (64,045) 46,893 (11,820) - (9,050) (1,722) 10,342 (6,301) (508) 124,107 444,654 (47,931) 35,753 21,927 (13,583) - 6,000 (4,503) (1,883) 1,013,342 1,751,927 1,030,766 1,742,461 10,447 9,956 385,154 319,003 $ 1,378,436 2,107,173	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ (326,145) 115,237 46,893 - (1,722) (6,301) 124,107 (47,931) 21,927 - (4,503) 1,013,342 1,030,766 10,447 385,154 $ 1,378,436	2025 (317,448) 59,142 63,885 - (4,729) (27,672) 494,217 267,395 7,690 - (9,758) 3,004,622 3,002,554 12,318 1,120,512 4,402,779	2024
		(438,930) (35,709) 19,887 1,556 377 5,616 (182,016)
		(629,219)
		52,905 6,000 (3,418) 4,727,407
		4,782,894
		17,503 860,806
		5,031,984

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

For the three months ended September 30, 2025 2024 $ - - 806 64 591,159 681,875 $ 591,965 681,939	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ - 806 591,159 $ 591,965	2025 339 992 1,434,405 1,435,736	2024
		- 178 1,135,725
		1,135,903

(Continued)

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

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

For the three months ended September 30, 2025 2024 $ 1,987 9,233 3,129 11,711 $ 5,116 20,944	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ 1,987 3,129 $ 5,116	2025 12,900 (9,370) 3,530	2024
		12,508 3,558
		16,066

(ai) Net other revenue other than interest income

For the three months ended September 30, 2025 2024 $ 3,020 2,680 - - (1,799) (37) (11) (11) 885 903 (9,688) (4,641) 16,248 14,307 $ 8,655 13,201	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ 3,020 - (1,799) (11) 885 (9,688) 16,248 $ 8,655	2025 8,704 (465) (4,634) (35) 6,556 (46,555) 137,132 100,703	2024
		7,665 (396) (1,574) (43) 2,483 (46,929) 155,732
		116,938

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

For the three months ended September 30, 2025 2024 $ 566,865 1,971,392 5,685 (868) 4,865 (7,874) 577,415 1,962,650 (345) 24,942 5,706 (4,331) $ 582,776 1,983,261	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ 566,865 5,685 4,865 577,415 (345) 5,706 $ 582,776	2025 2,069,767 7,940 13,283 2,090,990 46,055 (11,099) 2,125,946	2024
		3,177,070 (1,283) (4,321)
		3,171,466 60,159 (33,075)
		3,198,550

(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 September 30, 2025 2024 $ 2,442,283 2,264,074 161,907 153,183 91,128 88,566 35,764 30,349 175,876 173,077 $ 2,906,958 2,709,249	For the nine months ended September 30,
	2025 $ 2,442,283 161,907 91,128 35,764 175,876 $ 2,906,958	2025 6,468,112 473,246 270,513 80,786 542,718 7,835,375	2024
			6,178,287 443,727 265,060 78,862 533,374
			7,499,310

(al) Depreciation and amortization expense

For the three months ended September 30, 2025 2024 $ 123,503 139,828 108,014 109,096 120,282 94,690 11 48 $ 351,810 343,662	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ 123,503 108,014 120,282 11 $ 351,810	2025 373,294 326,358 343,696 47 1,043,395	2024
		434,425 327,596 269,644 77
		1,031,742

(Continued)

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

(am) Other general and administrative expense

For the three months ended September 30, 2025 2024 $ 132 44 37,839 35,930 63,300 93,189 13,127 11,655 108,729 79,493 86,847 81,279 101,893 101,524 61,167 91,556 53,136 29,647 9,257 10,873 646,379 596,772 180,931 181,768 14,258 12,920 16,180 15,350 15,292 23,735 $ 1,408,467 1,365,735	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ 132 37,839 63,300 13,127 108,729 86,847 101,893 61,167 53,136 9,257 646,379 180,931 14,258 16,180 15,292 $ 1,408,467	2025 298 80,351 188,867 30,960 353,369 240,781 303,926 208,698 145,976 27,189 1,879,262 497,832 41,824 48,197 43,213 4,090,743	2024
		47 83,539 218,402 28,923 224,144 234,938 301,065 197,488 80,042 29,647 1,734,018 502,117 37,583 48,165 62,507
		3,782,625

(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, the beneficiary certificates, and the derivative financial instruments with public quote inactive market possessed 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 such as government bonds, corporate bonds, financial debentures, convertible corporate bonds and derivative instruments, including financial debentures which the Bank and subsidiaries issued belong to Level 2.

c) Level 3

The input is unobservable for the asset or liability in market or counterparty prices. (Unobservable inputs is like: Option pricing model using the historical volatility. That is 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		September 30, 2025	September 30, 2025
	Total $ 1,535,874 201,702 94,642,872 20,390,881 172,911,646 713,399 9,183,831 $ 3,503,180 343,313	Level 1 952,323 - 5,580 10,652,844 - 100,500 - 24,101 -	Level 2 Level 3 - 583,551 201,702 - 94,431,843 205,449 - 9,738,037 172,911,646 - 612,899 - 9,183,831 - 3,479,079 - 343,313 -

(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 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		September 30, 2024	September 30, 2024
	Total $ 1,261,724 200,000 74,506,463 17,106,556 165,506,624 754,164 9,474,141 $ 3,218,165 362,236	Level 1 779,843 - 51,043 9,580,798 97,601,920 126,708 - 26,691 -	Level 2 Level 3 - 481,881 200,000 - 74,241,175 214,245 - 7,525,758 67,904,704 - 627,456 - 9,474,141 - 3,191,474 - 362,236 -

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

For the nine months ended September 30, 2025 and 2024, financial assets measured at fair value with a carrying amount of $107,090,090 were transferred from Level 1 to Level 2 due to the fact that the fair value is not measured directly by quoted market prices.

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		For th	For th	e nine months en	ded September 30, 2025	ded September 30, 2025
	Beginning balance	Valuation profit and loss		Incr	ease	Decr	ease Transfer out from Level 3 (Note) Ending balance - 789,000 - 9,738,037
		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 Name	$ 698,710 7,476,886	59,156 -	- 754,594 For th	35,500 1,506,558 e nine months en
	Beginning balance	Valuation profit and loss		Incr	ease	Decr	ease Transfer out from Level 3 (Note) Ending balance 65,304 696,126 - 7,525,758
		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	20,264 -	- 1,271,972	110,412 428,150	- -	- -

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:

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 nine months ended September 30,
	2025 2024 $ 59,156 (2,170) 754,594 1,271,972

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 three months ended September 30,
	2025 2024 $ 45,171 (3,098) 466,092 597,242

(Continued)

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

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 take professional financial information vendors which is 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 Financial assets at fair value through profit or loss Private fund Unlisted stocks Financial assets at fair value through other comprehensive income Unlisted stocks			September 30, 2025
	fair value $ 205,449 583,551 9,738,037	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 December 31, 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%-40.09% The higher market liquidity discount, the lower fair value. 0.00%-26.62% The higher market liquidity discount, the lower fair value. 0.00%-1.56% The higher sustainable growth rate, the higher fair value. 10.31%-12.22% The higher rate of cost of equity, the lower fair value.
	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	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.

(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			September 30, 2024
	fair value $ 214,245 481,881 7,525,758	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. 15.93%-28.07% The higher market liquidity discount, the lower fair value. 0.00%-1.59% The higher sustainable growth rate, the higher fair value. 10.90%-12.33% The higher rate of cost of equity, the lower fair value.

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:

September 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	the effects to the net income and other comprehensive income Favorable changes (-5%) Unfavorable changes (5%) $ 50,298 (50,298) 567,958 (567,958)

(Continued)

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

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
September 30, 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
ii)
Income approach

the effects to the net income and
other comprehensive income
Favorable
changes (-5%)
Unfavorable
changes (5%)
$ 42,442
(42,442)
433,274
(433,274)
the effects to the net income and
other comprehensive income
Favorable
changes (-5%)
Unfavorable
changes (5%)
$ 40,688
(40,688)
442,536
(442,536)

The Bank and subsidiaries adopt the income approach to evaluate Level 3 financial instruments, and 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

September 30, 2025 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%) $ 5,085 (4,715)

(Continued)

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

December 31, 2024
Financial assets at fair value through other
comprehensive income
Unlisted stocks
September 30, 2024
Financial assets at fair value through other
comprehensive income
Unlisted stocks
2.
cost of equity
September 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
September 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%)
$ 3,699
(3,531)
the effects to other comprehensive
income
Favorable
changes (0.3%)
Unfavorable
changes (-0.3%)
$ 3,107
(2,848)
the effects to other comprehensive
income
Favorable
changes (-3%)
Unfavorable
changes (3%)
$ 68,797
(33,663)
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%)
$ 62,332
(29,914)

(Continued)

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

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.

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 cost-net	September	30, 2025
	Book value $ 240,738,125 December	Fair value
		241,867,847 31, 2024
	Book value $ 230,242,408 September	Fair value
		230,751,781 30, 2024
	Book value $ 250,253,869	Fair value
		251,106,591

b) The fair value hierarchy of information

Assets and Liabilities		September	30, 2025
	Total $ 241,867,847	Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) - 241,867,847 - 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) - September	Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) 230,751,781 - 30, 2024
Debt instruments measured at amortized cost Assets and Liabilities
	Total $ 251,106,591	Quoted prices in active markets for identical assets (Level 1) -	Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) 251,106,591 -
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/Nonaccrual 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 are 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 are divided into the following combinations depending on the credit risk characteristics such as the identity of borrowers, products, and type of collateral:

collateral:
Corporate banking	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:

September 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 September 30, 2024 Impairment financial assets: Receivables Accounts receivables Interest receivable Discounts and loans Overdue receivable Total impairment financial assets	Carrying amount $ 167,734 66,308 21,138,756 15,495 $ 21,388,293 Carrying amount $ 160,100 53,196 18,943,078 15,380 $ 19,171,754 Carrying amount $ 149,272 60,615 19,058,161 16,569 $ 19,284,617	Allowance impairment 22,510 13,571 5,417,563 7,756 5,461,400 Allowance impairment 20,195 12,036 5,032,126 7,946 5,072,303 Allowance impairment 17,296 13,004 5,192,029 8,538 5,230,867	Exposure (measured at amortized cost) 133,897 52,737 15,721,193 7,739 15,915,566 Exposure (measured at amortized cost) 139,905 41,160 13,910,952 7,434 14,099,451 Exposure (measured at amortized cost) 131,976 47,611 13,866,133 8,031 14,053,751	Value of collateral
				1,556,170 - 23,907,729 -
				25,463,899
				Value of collateral
				154,660 - 23,074,264 -
				23,228,924
				Value of collateral
				149,272 - 23,473,257 -
				23,622,529

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	September 30	, 2025 % % 58.40 % 1.11 % 1.73 % 0.17 % 30.00 % 0.61 % 7.90 % 0.08 % 100.00	December 31	, 2024 % % 60.59 % 1.44 % 2.67 % 0.16 % 28.30 % 0.66 % 6.07 % 0.11 % 100.00	September 30, 2024	September 30, 2024
	Amount $ 979,569,834 18,598,556 28,997,264 2,781,644 503,313,124 10,165,948 132,643,881 1,324,230 $ 1,677,394,481		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 980,468,080 12,144,423 45,238,000 2,656,570 443,383,627 10,409,031 98,785,218 1,926,476 1,595,011,425	% % 61.47 % 0.76 % 2.84 % 0.17 % 27.80 % 0.65 % 6.19 % 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	September 30	, 2025 % % 91.41 % 8.59 % 100.00	December 31	, 2024 % % 93.17 % 6.83 % 100.00	September 30, 2024	September 30, 2024
	Amount $ 1,533,260,422 144,134,059 $ 1,677,394,481		Amount 1,529,031,154 112,153,333 1,641,184,487		Amount 1,483,890,700 111,120,725 1,595,011,425	% % 93.03 % 6.97 % 100.00
Domestic Foreign Total

c) By collateral

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

Collateral	September 30	, 2025 % % 16.85 % 0.63 % 1.02 % 64.46 % 0.95 % 0.11 % 15.27 % 0.71 % 100.00	December 31	, 2024 % % 17.71 % 0.70 % 1.08 % 62.87 % 1.02 % 0.14 % 15.87 % 0.61 % 100.00	September 30, 2024	September 30, 2024
	Amount $ 282,644,039 10,534,269 17,141,756 1,081,207,949 15,988,941 1,830,441 256,059,156 11,987,930 $ 1,677,394,481		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 279,414,500 11,098,252 20,093,843 1,008,584,884 15,911,911 2,341,252 248,885,334 8,681,449 1,595,011,425	% % 17.52 % 0.70 % 1.26 % 63.23 % 1.00 % 0.15 % 15.60 % 0.54 % 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
	September 30, 2025 $ 94,395,215 18,755,507 7,571,902 32,550,127 $ 153,272,751	December 31, 2024 82,622,791 17,974,642 8,268,607 33,893,522 142,759,562	September 30, 2024
Issued and irrevocable loan commitments Irrevocable credit card loan commitments Letters of credit issued yet unused Various guarantee proceeds Total			83,799,294 17,758,735 8,420,212 33,561,728
			143,539,969

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

September 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	$ 474,048	255,651	146,453	-	966	448,715	1,325,833	1,235	4,224	1,924	-	1	121	7,505	-	1,573	1,331,765
Acceptances receivable	311,027	485,947	101,293	464	-	43,496	942,227	-	-	-	-	-	-	-	-	9,422	932,805
Other receivables	710,998	3,051,889	599,031	55,698	30,719	4,028,350	8,476,685	589	2,914	4,641	5,936	2,109	28,891	45,080	234,042	146,465	8,609,342
Discounts and loans
Private banking	262,299,164	168,080,993	61,370,208	2,727,292	1,081,431	4,352,833	499,911,921	106,051	191,228	289,379	123,678	172,618	6,617	889,571	3,835,862	6,444,575	498,192,779
Corporate banking	336,975,786	424,188,607	263,613,652	39,073,658	14,700,497	70,369,535	1,148,921,735	302,370	1,780,785	1,357,694	1,038,907	600,956	1,451,786	6,532,498	17,302,894	15,568,328	1,157,188,799
Other financial assets
Overdue receivable	-	-	-	-	-	-	-	-	-	-	-	-	-	-	15,495	9,306	6,189
Total	$ 600,771,023	596,063,087	325,830,637	41,857,112	15,813,613	79,242,929	1,659,578,401	410,245	1,979,151	1,653,638	1,168,521	775,684	1,487,415	7,474,654	21,388,293	22,179,669	1,666,261,679
Guarantee and commitments	$ 28,010,077	19,941,089	9,281,176	323,884	45,057	95,430,247	153,031,530	70,997	19,426	8,113	-	6,616	418	105,570	135,651	445,204	152,827,547

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

September 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	$ 443,065	234,337	157,051	1	1,352	397,294	1,233,100	1,578	2,956	3,023	-	341	158	8,056	-	1,385	1,239,771
Acceptances receivable	357,274	366,465	118,765	1,269	-	145,261	989,034	-	-	-	-	-	-	-	-	9,890	979,144
Other receivables	578,421	3,007,924	608,575	90,038	27,365	4,255,655	8,567,978	360	1,016	3,941	2,305	8,977	87,090	103,689	209,887	116,338	8,765,216
Discounts and loans
Private banking	228,904,849	149,609,613	53,739,487	2,454,937	1,419,069	4,520,430	440,648,385	30,232	73,166	347,474	68,274	175,641	9,098	703,885	3,957,833	5,708,732	439,601,371
Corporate banking	291,880,113	421,959,560	269,344,641	44,211,161	16,566,730	84,535,937	1,128,498,142	271,248	553,828	1,257,877	1,127,468	1,883,379	1,009,052	6,102,852	15,100,328	15,548,497	1,134,152,825
Other financial assets
Overdue receivable	-	-	-	-	-	-	-	-	-	-	-	-	-	-	16,569	9,157	7,412
Total	$ 522,163,722	575,177,899	323,968,519	46,757,406	18,014,516	93,854,577	1,579,936,639	303,418	630,966	1,612,315	1,198,047	2,068,338	1,105,398	6,918,482	19,284,617	21,393,999	1,584,745,739
Guarantee and commitments	$ 27,132,868	20,420,988	10,137,475	324,247	266,537	84,946,199	143,228,314	16,901	148,512	8,579	1,245	802	170	176,209	135,446	405,267	143,134,702

(Continued)

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

ii) Debt instruments

September 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	$ 65,821,556	-	-	-	65,821,556	-	-	-	-	-	-	65,821,556	18,285
NT bonds	107,090,090	-	-	-	107,090,090	-	-	-	-	-	-	107,090,090	54,973
Negotiable certificates of deposit	612,899	-	-	-	612,899	-	-	-	-	-	-	612,899	228
Investment in debt instruments at amortized cost
Overseas bonds	24,193,003	-	-	-	24,193,003	-	-	-	-	-	-	24,193,003	7,562
NT bonds and treasury bills	44,792,188	-	-	-	44,792,188	-	-	-	-	-	-	44,792,188	30,937
Certificates of deposit with the Central Bank	171,770,000	-	-	-	171,770,000	-	-	-	-	-	-	171,770,000	42,668
Negotiable certificates of deposit	64,124	-	-	-	64,124	-	-	-	-	-	-	64,124	23
Total	$ 414,343,860	-	-	-	414,343,860	-	-	-	-	-	-	414,343,860	154,676

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

September 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	$ 67,904,704	-	-	-	67,904,704	-	-	-	-	-	-	67,904,704	19,335
NT bonds	97,601,920	-	-	-	97,601,920	-	-	-	-	-	-	97,601,920	68,846
Negotiable certificates of deposit	627,456	-	-	-	627,456	-	-	-	-	-	-	627,456	237
Investment in debt instruments at amortized cost
Overseas bonds	27,003,165	-	-	-	27,003,165	-	-	-	-	-	-	27,003,165	6,409
NT bonds and treasury bills	48,546,483	-	-	-	48,546,483	-	-	-	-	-	-	48,546,483	27,097
Certificates of deposit with the Central Bank	174,715,000	-	-	-	174,715,000	-	-	-	-	-	-	174,715,000	43,609
Negotiable certificates of deposit	66,360	-	-	-	66,360	-	-	-	-	-	-	66,360	24
Total	$ 416,465,088	-	-	-	416,465,088	-	-	-	-	-	-	416,465,088	165,557

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 which are not subject to impairment regulations are as follows:

September 30, 2025	Maximum credit risk exposure $ 201,702 94,431,843 952,323 583,551 211,029 3,503,180 Maximum credit risk exposure $ 200,000 78,181,124 794,532 493,166 205,544 2,931,419 Maximum credit risk exposure $ 200,000 74,241,175 779,843 481,881 265,288 3,218,165	Collateral Enhancement of other credit - - - - - - - - - - 116,425 673,541 Collateral Enhancement of other credit - - - - - - - - - - 2,074,252 612,147 Collateral Enhancement of other credit - - - - - - - - - - 1,244,287 660,792
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 September 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 nine months	ended September 30, 2025	ended September 30, 2025	Total
12-month ECL $ 41,523 438 (56) (58) (15,363) 21,472 (1,154) - $ 46,802	Lifetime ECL`－`not impaired 9,170 (247) 62 (384) (110) 518 (7,709) - 1,300	Lifetime ECL`－` impaired 32,231 (191) (6) 442 (8,924) 6,864 5,665 - 36,081	Impaired (IFRS9) 82,924 - - - (24,397) 28,854 (3,198) - 84,183	Impairment difference of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non- Performing and Non- Accrual Loans" 50,106 - - - - - - 23,171 73,277
					133,030 - - - (24,397) 28,854 (3,198) 23,171
					157,460

(Continued)

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

	For	the nine months	ended September 30, 2024	ended September 30, 2024	Total
12-month ECL $ 39,104 327 (17) (32) (12,958) 22,832 - (5,614) - $ 43,642	Lifetime ECL`－`not impaired 7,043 (143) 90 (35) (115) 260 - 257 - 7,357	Lifetime ECL`－` impaired 30,542 (184) (73) 67 (4,691) 12,426 (6,558) (1,229) - 30,300	Impaired (IFRS9) 76,689 - - - (17,764) 35,518 (6,558) (6,586) - 81,299	Impairment difference of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non- Performing and Non- Accrual Loans" 44,823 - - - - - - - 1,491 46,314
					121,512 - - - (17,764) 35,518 (6,558) (6,586) 1,491
					127,613

(Continued)

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

b) Discounts and loans

	For	the nine months	ended September 30, 2025	ended September 30, 2025	Total
12-month ECL $ 5,678,500 165,719 (24,268) (37,021) (2,201,782) 2,465,705 - (159,088) - $ 5,887,765	Lifetime ECL`－`not impaired 407,406 (50,458) 25,371 (12,896) (85,103) 88,585 - 100,646 - 473,551	Lifetime ECL`－` impaired 5,032,126 (115,261) (1,103) 49,917 (808,561) 494,939 (3,903,394) 4,668,900 - 5,417,563	Impaired (IFRS9) 11,118,032 - - - (3,095,446) 3,049,229 (3,903,394) 4,610,458 - 11,778,879	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 - - - - - - - (522,927) 10,234,024
					21,874,983 - - - (3,095,446) 3,049,229 (3,903,394) 4,610,458 (522,927)
					22,012,903

(Continued)

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

	For	the nine months	ended September 30, 2024	ended September 30, 2024	Total
12-month ECL $ 5,120,615 281,523 (13,028) (21,299) (2,048,864) 2,397,185 - (143,442) - $ 5,572,690	Lifetime ECL`－`not impaired 317,996 (137,562) 26,665 (9,175) (37,761) 12,997 - 345,686 - 518,846	Lifetime ECL`－` impaired 4,196,783 (143,961) (13,637) 30,474 (611,443) 249,858 (3,066,339) 4,550,294 - 5,192,029	Impaired (IFRS9) 9,635,394 - - - (2,698,068) 2,660,040 (3,066,339) 4,752,538 - 11,283,565	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 - - - - - - - 6,216 9,973,664
					19,602,842 - - - (2,698,068) 2,660,040 (3,066,339) 4,752,538 6,216
					21,257,229

(Continued)

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

c) Other financial assets

			For	the nine months	ended September	30, 2025
						Impairment difference
						of "Regulations
						Governing the
						Procedures for
						Banking
						Institutions to
						Evaluate Assets and
			Lifetime	Lifetime		Deal with Non-
		12-month	ECL`－`not	ECL`－`	Impaired	Performing and Non-
		ECL	impaired	impaired	(IFRS9)	Accrual Loans"	Total
Beginning balance	$	-	-	7,946	7,946	597	8,543
Changes in financial instruments
that have been identified at the
beginning of the period:
`－`The financial assets that		-	-	(12)	(12)	-	(12)
have been derecognized
New financial assets originated or		-	-	16,519	16,519	-	16,519
purchased
Write-off		-	-	(16,697)	(16,697)	-	(16,697)
Impairment difference of		-	-	-	-	953	953
"Regulations Governing the
Procedures for Banking
Institutions to Evaluate Assets
and Deal with Non-Performing
and Non-Accrual Loans"
Ending balance	$	-	-	7,756	7,756	1,550	9,306
			For	the nine months	ended September	30, 2024

						Impairment difference
						of "Regulations
						Governing the
						Procedures for
						Banking
						Institutions to
						Evaluate Assets and
			Lifetime	Lifetime		Deal with Non-
		12-month	ECL`－`not	ECL`－`	Impaired	Performing and Non-
		ECL	impaired	impaired	(IFRS9)	Accrual Loans"	Total
Beginning balance	$	-	-	10,891	10,891	599	11,490
Changes in financial instruments
that have been identified at the
beginning of the period:
`－`The financial assets that		-	-	(2)	(2)	-	(2)
have been derecognized
New financial assets originated or		-	-	12,155	12,155	-	12,155
purchased
Write-off		-	-	(14,686)	(14,686)	-	(14,686)
Other changes		-	-	180	180	-	180
Impairment difference of		-	-	-	-	20	20
"Regulations Governing the
Procedures for Banking
Institutions to Evaluate Assets
and Deal with Non-Performing
and Non-Accrual Loans"
Ending balance	$	-	-	8,538	8,538	619	9,157

(Continued)

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

d) Guarantee and commitments

	For	the nine months	ended September 30, 2025	ended September 30, 2025	Total
12-month ECL $ 134,318 (7) (1) (41,434) 34,098 (21,343) - $ 105,631	Lifetime ECL`－`not impaired 511 7 - (2) 55 (291) - 280 For	Lifetime ECL`－` impaired 47,096 - 1 (35) 3,246 4,426 - 54,734 the nine months	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 - - - - (41,471) - 37,399 - (17,208) - - 54,793 160,645 284,559 ended September 30, 2024
					411,691 - - (41,471) 37,399 (17,208) 54,793
					445,204
					Total
	Lifetime ECL`－`not impaired 1,117 10 - (628) 511 (187) - 823	Lifetime ECL`－` impaired 42,703 - 20 (850) - 6,501 - 48,374	Impaired (IFRS9) 203,068 - - (53,671) 46,890 (16,140) - 180,147	Impairment difference of "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non- Performing and Non- Accrual Loans" 174,033 - - - - - 51,087 225,120
					377,101 - - (53,671) 46,890 (16,140) 51,087
					405,267

(Continued)

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

e) Debts investments

For the nine months ended September 30, 2025

	For the nine months ended September 30,	For the nine months ended September 30,	For the nine months ended September 30,	2025
Beginning balance Additions Derecognition Other changes Ending balance Beginning balance Additions Derecognition Other changes Ending balance	12-month ECL Lifetime ECL `－`not impaired Lifetime ECL `－`impaired $ 160,053 - - 95,298 - - (49,351) - - (51,324) - - $ 154,676 - - For the nine months ended September 30,			Total 160,053 95,298 (49,351) (51,324) 154,676 2024 Total 180,969 50,776 (67,551) 1,363 165,557
	12-month ECL $ 180,969 50,776 (67,551) 1,363 $ 165,557	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			September 30, 2025	September 30, 2025
	0-30 days $ 1,212,410,012 442,379 639,010 30,344,692 320,000 - 999,952 1,975,614 15,000,000 1,011,403,212 150,835,952 402,460 - - 46,741	31-90 days 295,312,126 - - 18,753,373 30,000 - 246,350 4,211,382 38,000,000 - 234,004,016 - - 8,000 59,005	91 days-1 year 1-5 years 668,355,012 80,655,484 - - - - 2,167,985 - 1,233,053 - - - 74,893 - 4,058,520 136,034 117,099,335 - - - 542,418,675 46,336,155 - - 1,000,000 32,910,000 32,250 724,170 270,301 549,125 December 31, 2024		Over 5 years Total 28,214,368 2,284,947,002 - 442,379 - 639,010 - 51,266,050 - 1,583,053 9,183,831 9,183,831 - 1,321,195 53 10,381,603 - 170,099,335 - 1,011,403,212 8,514 973,603,312 - 402,460 18,000,000 51,910,000 902,645 1,667,065 119,325 1,044,497
	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			September 30, 2024	September 30, 2024
	0-30 days $ 1,149,711,964 575,579 296,139 30,377,820 - - 1,497,953 1,166,821 - 947,713,713 167,667,505 364,626 - 3,500 48,308	31-90 days 232,495,780 - - 9,687,766 150,000 - 538,293 4,054,441 18,000,000 - 200,003,147 - - 4,250 57,883	91 days-1 year 663,465,236 - - 1,422,000 1,288,140 - 611,858 4,287,517 99,099,335 - 554,867,284 - 1,550,000 39,750 299,352	1-5 years 75,304,450 - - - - - - 125,624 15,000,000 - 42,643,638 - 15,910,000 940,340 684,848	Over 5 years Total 48,005,788 2,168,983,218 - 575,579 - 296,139 - 41,487,586 - 1,438,140 9,474,141 9,474,141 - 2,648,104 32 9,634,435 - 132,099,335 - 947,713,713 4,171 965,185,745 - 364,626 36,000,000 53,460,000 2,382,862 3,370,702 144,582 1,234,973

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 September 30, 2025, December 31 and September 30, 2024, maturity analysis for the derivative financial liabilities settled by net amount is as follows:

		September	30, 2025
0-30 days $ - - $ -	31-90 days 35 - 35	91-180 days - 98 98	181 days to 1 year - 5,071 5,071	Over 1 year - 67,642 67,642	Total
					35 72,811
					72,846

(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
September 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 $ - 1,989 - - - 1,989
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:

September 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 $ 67,101,047 66,708,972 67,101,047 66,708,972 $ 392,075	31-90 days 14,457,379 14,378,577 14,457,379 14,378,577 78,802	91-180 days 6,046,740 5,940,991 6,046,740 5,940,991 105,749	181 days to 1 year 8,148,232 7,886,538 8,148,232 7,886,538 261,694	Over 1 year - - - - -	Total 95,753,398 94,915,078
						95,753,398
						94,915,078
						838,320

(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 September 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 $ 43,165,171 44,057,301 43,165,171 44,057,301 $ (892,130)	31-90 days 13,620,759 13,508,692 13,620,759 13,508,692 112,067 31-90 days 24,740,974 25,229,930 24,740,974 25,229,930 (488,956)	91-180 days 6,163,409 5,944,896 6,163,409 5,944,896 218,513 91-180 days 8,986,702 8,797,459 8,986,702 8,797,459 189,243	181 days to 1 year 5,708,876 5,382,052 5,708,876 5,382,052 326,824 181 days to 1 year 10,940,457 10,995,102 10,940,457 10,995,102 (54,645)	Over 1 year - - - - - Over 1 year 358,168 - 358,168 - 358,168	Total 65,538,307 64,262,833
						65,538,307
						64,262,833
						1,275,474
						Total 88,191,472 89,079,792
						88,191,472
						89,079,792
						(888,320)

5) Maturity analysis of off-balance sheet items

31-90 days	91-180 days	181 days to 1 year	Total 94,395,215 18,755,507 7,571,902 32,550,127
2,959,388 23,811 5,261,550 3,073,289 11,318,038 31-90 days	2,437,736 54,429 453,994 1,416,618 4,362,777 91-180 days	36,687,682 76,670 441,886 4,067,772 41,274,010 181 days to 1 year
			153,272,751
			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

September 30, 2024 Issued and irrevocable loan commitments Irrevocable credit card loan commitments Letters of credit issued yet unused Other guarantees Total	0-30 days $ 117,454 2,729 2,092,554 1,666,401 $ 3,879,138		31-90 days		91-180 days		181 days to 1 year		Over 1 year 56,186,848 17,458,457 206,791 24,463,557 98,315,653	Total 83,799,294 17,758,735 8,420,212 33,561,728
			1,935,878 76,300 5,340,360 2,179,478 9,532,016		1,096,652 68,774 493,145 1,272,842 2,931,413		24,462,462 152,475 287,362 3,979,450 28,881,749
										143,539,969

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 are 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:

September 30, 2025 Operating lease income (lessor) December 31, 2024 Operating lease income (lessor) September 30, 2024 Operating lease income (lessor)	Below 1 year $ 2,144 Below 1 year $ 2,299 Below 1 year $ 2,478	1-5 years 6,545 1-5 years 8,033 1-5 years 7,198	Over 5 years Total 4,961 13,650 Over 5 years Total 6,267 16,599 Over 5 years Total 6,742 16,418

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 are as follows:

September 30, 2025 Machinery and equipment Transportation equipment Miscellaneous equipment Total December 31, 2024 Machinery and equipment Transportation equipment Miscellaneous equipment Total	Below 1 year $ 1,159,712 2,806 3,150 $ 1,165,668 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
				1,159,712 2,806 3,150
				1,165,668
				Total
				1,320,333 5,542 6,924
				1,332,799

(Continued)

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

September 30, 2024 Machinery and equipment Transportation equipment Miscellaneous equipment Total	Below 1 year $ 1,310,280 2,162 10,331 $ 1,322,773	1-5 years - - - -	Over 5 years - - - -	Total
				1,310,280 2,162 10,331
				1,322,773

(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) September 30, 2025

Currency USD JPY AUD CNY HKD	Foreign currency amount (in thousands) NT$ amount $ 354,020 10,810,001 2,029,788 416,715 18,342 368,307 31,386 134,426 9,205 36,111

Significant net positions of foreign currencies (Market risk)	Significant net positions of foreign currencies (Market risk)
December 31, 2024
Currency Foreign currency amount (in thousands) NT$ amount USD $ 363,838 11,928,429 JPY 2,214,548 464,169 AUD 15,708 320,757 CNY 66,303 297,303 ZAR 64,162 111,899 Significant net positions of foreign currencies (Market risk)
September 30, 2024
Currency USD JPY AUD ZAR EUR	Foreign currency amount (in thousands) NT$ amount $ 334,305 10,564,038 1,827,460 405,331 18,415 402,736 40,982 75,653 1,759 62,058

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

	September 30, 2025	September 30, 2025
Currency	Monetary financial assets Foreign currency amount (in thousands) Spot rate NTD amount $ 15,541,019 30.5350 474,545,019 5,566,628 20.0800 111,777,890 9,452,029 4.2830 40,483,040 153,567,357 0.2053 31,527,378 8,186,933 3.9230 32,117,338 195,947 35.7800 7,010,984 6,879,523 1.7670 12,156,117 18,998 41.0100 779,108 45,419 17.6500 801,645 16,463 21.9400 361,198 26,469 23.6600 626,257 346,024 0.9506 328,930 - - 66,601		Monetary financial liabilities
	Foreign currency amount (in thousands) $ 15,541,019 5,566,628 9,452,029 153,567,357 8,186,933 195,947 6,879,523 18,998 45,419 16,463 26,469 346,024 -	Spot rate 30.5350 20.0800 4.2830 0.2053 3.9230 35.7800 1.7670 41.0100 17.6500 21.9400 23.6600 0.9506 -	Foreign currency amount (in thousands) 15,291,909 5,414,352 7,134,083 151,567,701 7,521,088 195,849 6,877,167 19,060 45,448 16,488 26,539 347,901 -	Spot rate NTD amount 30.5350 466,938,453 20.0800 108,720,188 4.2830 30,555,278 0.2053 31,116,849 3.9230 29,505,228 35.7800 7,007,477 1.7670 12,151,954 41.0100 781,651 17.6500 802,157 21.9400 361,747 23.6600 627,913 0.9506 330,715 - 69,729
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.

	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

	September 30, 2024	September 30, 2024
Currency	Monetary financial assets Foreign currency amount (in thousands) Spot rate NTD amount $ 15,109,693 31.6000 477,466,303 6,411,321 21.8700 140,215,590 5,053,520 4.5200 22,841,911 163,815,187 0.2218 36,334,208 6,167,748 4.0650 25,071,896 238,281 35.2800 8,406,554 5,077,899 1.8460 9,373,802 38,654 42.3000 1,635,064 38,608 20.1100 776,407 14,166 23.3900 331,343 10,206 24.6800 251,884 210,756 3.1400 661,774 177,857 0.9819 174,638 - - 59,403		Monetary financial liabilities
	Foreign currency amount (in thousands) $ 15,109,693 6,411,321 5,053,520 163,815,187 6,167,748 238,281 5,077,899 38,654 38,608 14,166 10,206 210,756 177,857 -	Spot rate 31.6000 21.8700 4.5200 0.2218 4.0650 35.2800 1.8460 42.3000 20.1100 23.3900 24.6800 3.1400 0.9819 -	Foreign currency amount (in thousands) 14,652,922 6,279,155 4,811,947 161,881,789 5,538,921 238,330 5,076,176 37,652 38,366 14,262 10,244 210,699 178,779 -	Spot rate NTD amount 31.6000 463,032,338 21.8700 137,325,120 4.5200 21,749,999 0.2218 35,905,381 4.0650 22,515,714 35.2800 8,408,282 1.8460 9,370,621 42.3000 1,592,680 20.1100 771,540 23.3900 333,588 24.6800 252,822 3.1400 661,595 0.9819 175,543 - 63,169
USD AUD CNY JPY HKD EUR ZAR GBP NZD CAD SGD SEK THB Others (Note)

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

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

Foreign exchange risk sensitivity analysis analyzes the influence on profit or loss and equity, given other conditions remain the same, when each respective currency depreciates or appreciates by 1%.

	September 30, 2025	September 30, 2025	September 30, 2025
Depreciate	by 1% Equity (72,410) (34,450) (30,433) (3,678) - - - - - - - - - - (140,971)	Appreciate by 1%
Income $ (19,379) 3,982 4,573 (314) 9 12 (43) (18) 31 6 18 (31) (6) (66,840) $ (78,000)		Income 19,379 (3,982) (4,573) 314 (9) (12) 43 18 (31) (6) (18) 31 6 66,840 78,000	Equity 72,410 34,450 30,433 3,678 - - - - - - - - - -
			140,971

(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)	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	Equity 82,652 32,046 29,741 3,441 - - - - - - - - -
			147,880

	September 30, 2024	September 30, 2024	September 30, 2024
Depreciate	by 1% Equity (78,386) (33,230) (28,283) (3,687) - - - - - - - - - - (143,586)	Appreciate by 1%
Income $ (2,065) 4,376 3,141 (604) (428) 5 (33) (2) 38 23 9 19 (61) (59,435) $ (55,017)		Income 2,065 (4,376) (3,141) 604 428 (5) 33 2 (38) (23) (9) (19) 61 59,435 55,017	Equity 78,386 33,230 28,283 3,687 - - - - - - - - - -
			143,586

(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

Interest rate sensitivity analysis analyzes the influence on profit or loss and equity is, assuming other conditions remain the same, when the yield of the market increases or decreases by 1 basis point (1 bp).

September 30, 2025	September 30, 2025	September 30, 2025
Interest rate increases by 1 bp Income Equity $ (1,603) (1,224) - (82,639) - (40,276) - (1,653) - (87) - (495) - (811) - (59) $ (1,603) (127,244)	Interest rate decreases by 1 bp
Income $ (1,603) - - - - - - - $ (1,603)	Income 1,603 - - - - - - - 1,603	Equity 1,224 82,639 40,276 1,653 87 495 811 59
		127,244

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

September 30, 2024	September 30, 2024	September 30, 2024
Interest rate increases by 1 bp Income Equity $ (1,596) (1,710) - (81,063) - (26,872) - (1,877) - (125) - (193) - (1,138) - (99) $ (1,596) (113,077)	Interest rate decreases by 1 bp
Income $ (1,596) - - - - - - - $ (1,596)	Income 1,596 - - - - - - - 1,596	Equity 1,710 81,063 26,872 1,877 125 193 1,138 99
		113,077

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		September 30, 2025 in 1 year Effect on EVE USD TWD USD (24,076) (6,105,749) (166,156) 17,469 14,469,851 161,553 December 31, 2024 in 1 year Effect on EVE USD TWD USD (25,222) (5,345,546) (128,314) 20,755 13,044,638 114,999 September 30, 2024 in 1 year Effect on EVE USD TWD USD (25,009) (6,345,642) (124,045) 24,052 14,004,508 111,638
	Effect on NII
	TWD 1,778,326 (2,643,192)
	Effect on NII
	TWD 1,732,841 (2,529,293)
	Effect on NII	in 1 year USD (25,009) 24,052
	TWD 1,778,508 (2,610,616)

(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%)

Equity security sensitivity analysis analzyes the influence on profit or loss and equity, assuming other conditions remain the same, when the price of equity security increases or decreases 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		September 30, 2025
			Income Equity 505 - (505) - September 30, 2024

			Income Equity 1,040 - (1,040) -

b) Value at Risk of equity security

Value at Risk	From October 1, 2024 to September 30, 2025	From October 1, 2024 to September 30, 2025	From October 1, 2024 to September 30, 2025
	Average	Maximum	Minimum
Equity security risk	3,243	14,193	-

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

Value at Risk	From October 1, 2023 to September 30, 2024
	Average	Maximum	Minimum
Equity security risk	13,129	28,200	316

(vi) Transferred financial assets that are not fully derecognized

The transactions, relating to transferred financial assets not qualifying for full derecognition, that the Bank and subsidiaries conduct 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’ s 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, but the Bank and subsidiaries has interest rate risk and credit risk; therefore, the said transferred assets are not fully derecognized.

As of September 30, 2025, December 31 and September 30, 2024, there were no 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:

			September 30, 2025	September 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 116,425
						Financial instruments (Note)
Derivative financial instruments	$ 1,140,724		-	1,140,724		673,541

			September 30, 2025	September 30, 2025	September 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 3,041,395
							Financial instrument (Note)
Derivative financial instruments	$ 78,870		-		78,870		-

			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							-
											Net amount (e)=(c)-(d) (523,383)
		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 1,244,287
								Financial instruments (Note)
Derivative financial instruments	$ 1,381,696			-		1,381,696		660,792

(Continued)

107

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

			September 30, 2024	September 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 1,145,908
						Financial instruments (Note)
Derivative financial instruments	$ 156,288		-	156,288		-

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.

(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 September 30, 2025 and 2024 were carried out to acquire right-ofuse 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 (675,000) (68,441) - - - - (14,071) - 100,349 (689,071) (68,441) 100,349	Non-cash changes Foreign exchange rate movement Fair value changes Other changes (675,000) (68,441) - - - - (14,071) - 100,349 (689,071) (68,441) 100,349	September 30, 2025 9,183,831 51,910,000 1,044,497
Foreign exchange rate movement (675,000) - (14,071) (689,071)	Fair value changes (68,441) - - (68,441)
		62,138,328

Non-cash changes Foreign exchange rate movement Fair value changes Other changes 268,500 30,081 - - - - 10,493 - 254,852 278,993 30,081 254,852	Non-cash changes Foreign exchange rate movement Fair value changes Other changes 268,500 30,081 - - - - 10,493 - 254,852 278,993 30,081 254,852	September 30, 2024 9,474,141 53,460,000 1,234,973
Foreign exchange rate movement 268,500 - 10,493 278,993	Fair value changes 30,081 - - 30,081
		64,169,114

(Continued)

109

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	September 30, 2025 $ 205,449 5,767,436 $ 5,972,885	December 31, 2024 205,544 480,013 685,557	September 30, 2024
			214,245 501,439
			715,684

(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	September 30, 2025 $ 205,449 5,720,949 46,487 $ 5,972,885	December 31, 2024 205,544 420,142 59,871 685,557	September 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			214,245 440,000 61,439
			715,684

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 September 30, 2025, December 31 and September 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)

110

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	September 30, 2025	September 30, 2025
	Amount % $ 175,383 1.53 December 31, 2024	%
		1.53
		%
		0.98

Interest rates are the same as those with regular clients.

(Continued)

111

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 $ 5,195,560 Highest balance $ 1,714,404		Interest Income
		For the three months ended September 30, 2025 5,987	For the nine months ended September 30, 2025 Annual interest rate 6,869 0.350%~4.530% Interest income
		For the three months ended September 30, 2024 (2)	For the nine months ended September 30, 2024 Annual interest rate 1,265 1.627%~5.570%

Interest rates are the same as those with regular clients.

(iii) Call loans from banks

			September 30,	September 30,	December 31,	September 30,
				2025	2024	2024
Bank of Taiwan			$	1,221,400	1,279,090	767,600
					Interest Expense
				For the three	For the nine
				months ended	months ended
				September 30,	September 30,	Annual
	Highest balance			2025	2025	interest rate
Bank of Taiwan	$	7,387,968		46,977	86,449	0.90%~4.93%
					Interest Expense
				For the three	For the nine
				months ended	months ended
				September 30,	September 30,	Annual
	Highest balance			2024	2024	interest rate
Bank of Taiwan	$	17,236,250		21,545	84,274	0.60%~5.87%

Interest rates are the same as those with regular clients.

(iv) Deposits

Others	September 30, 2025	September 30, 2025
	Amount $ 1,555,036	%
		0.08

(Continued)

112

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

		December	31,	2024
		Amount		%
Others	$	1,557,190			0.08
		September	30,	2024
		Amount		%
Others	$	1,556,377			0.08

Interest rates are the same as those with regular clients.

(v) Credit

Credit	Credit	Credit	Credit	Credit	Credit	Credit	Credit
September 30, 2025
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	15	8,611	7,729	7,729	-	none	none
Self-use home mortgages loans	80	508,802	485,476	485,476	-	real estate	none
Others	Natural person	443,990	428,937	428,937	-	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

September 30, 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	17	14,362	5,316	5,316	-	none	none
Self-use home mortgages loans	66	583,070	332,375	332,375	-	real estate	none
Others	Natural person	595,978	363,757	363,757	-	real estate	none

(vi) Donation:

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

(Continued)

113

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

(vii) Receivables from related parties

National Development Fund, Excutive Yuan	September 30, 2025 $ 616	December 31, 2024 707	September 30, 2024
			3

(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 nine months ended September 30, 2024	For the nine months ended September 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	September 30, 2025 $ 4,262	December 31, 2024 -	September 30, 2024
			4,262

(xv) Other revenue:

For the three months ended September 30, 2025 2024 $ 4,262 4,262 - 3 $ 4,262 4,265	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ 4,262 - $ 4,262	2025 12,786 - 12,786	2024
		12,786 3
		12,789

(Continued)

114

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

For the three months ended September 30 2025 2024 $ 52,023 44,824 779 748 $ 52,802 45,572	For the nine months ended September 30,	For the nine months ended September 30,
2025 $ 52,023 779 $ 52,802	2025 128,368 2,309 130,677	2024
		122,997 2,171
		125,168

(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	September 30, 2025 $ 4,789,846 34,830,355 43,081,683 40,122,029 293,550,204 773,045 67,474,000 3,077,992 32,605,000	December 31, 2024 September 30, 2024 5,185,261 4,975,873 38,732,548 38,013,178 39,588,139 42,340,093 42,162,129 41,981,940 299,620,745 273,987,271 737,404 678,631 71,430,200 71,045,200 4,425,334 4,491,088 32,277,500 33,487,400

(b) Unrecognized contractual commitments:

As of September 30, 2025, December 31 and September 30, 2024, major constructions in progress and purchases amounted to $973,101, $1,143,904 and $804,088 respectively, of which $787,973, $919,362 and $653,614 respectively, remained unpaid.

(Continued)

115

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

(c) 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. On April 4, 2025, the appointed attorney confimed that I.C.C.I did not file an appeal to the Federal Court of Justice. Consequently, this judgment in favor of our bank is now conslusive and binding.

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 $76,719 has been made in 2021. Please refer to Note 6(v) for more details. As of September 30, 2025, the Bank has accrued the compensation of $261,735 and EUR9,660.

(Continued)

116

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	September 30, 2025	September 30, 2025	September 30, 2025	September 30, 2025	September 30, 2025
			Non-performing loans (Note1)	Total loans	Non-performing loan ratio (Note2)	Allowance for credit losses	Coverage ratio (Note3)
Corporate finance	Secured		1,743,085	795,097,193	0.22 %	10,385,229	595.80 %
	Unsecured		275,530	389,876,683	0.07 %	5,183,099	1,881.14 %
Consumer finance	Residence mortgages(Note 4)		134,259	308,875,001	0.04 %	4,021,465	2,995.30 %
	Cash cards		-	-	- %	-	- %
	Microcredit(Note 5)		5,002	469,203	1.07 %	9,456	189.04 %
	Others (Note 6)	Secured	131,554	171,923,904	0.08 %	2,240,430	1,703.05 %
		Unsecured	263,741	11,152,497	2.36 %	173,224	65.68 %
Total loan busin	ess		2,553,171	1,677,394,481	0.15 %	22,012,903	862.18 %
			Overdue receivables	Total receivables	Delinquency ratio	Allowance for credit losses	Coverage ratio
Credit cards bus	iness		763	1,346,625	0.06 %	8,671	1,136.44 %
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)

117

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

Items	Month/Year	Month/Year	September 30, 2024	September 30, 2024	September 30, 2024	September 30, 2024	September 30, 2024
			Non-performing loans (Note1)	Total loans	Non-performing loan ratio (Note2)	Allowance for credit losses	Coverage ratio (Note3)
Corporate finance	Secured		1,994,218	775,715,574	0.26 %	10,280,941	515.54 %
	Unsecured		333,148	387,398,855	0.09 %	5,267,556	1,581.15 %
Consumer finance	Residence mortgages(Note 4)		71,195	259,044,485	0.03 %	3,419,510	4,803.02 %
	Cash cards		-	-	- %	-	- %
	Microcredit(Note 5)		3,863	398,403	0.97 %	7,037	182.16 %
	Others (Note 6)	Secured	181,429	158,836,640	0.11 %	2,099,831	1,157.38 %
		Unsecured	4,393	13,617,468	0.03 %	182,354	4,151.01 %
Total loan busin	ess		2,588,246	1,595,011,425	0.16 %	21,257,229	821.30 %
			Overdue receivables	Total receivables	Delinquency ratio	Allowance for credit losses	Coverage ratio
Credit cards bus	iness		801	1,256,910	0.06 %	9,790	1,222.22 %
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)

118

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

Overdue loans and receivables exempted from reporting

September 30, 2025	September 30, 2025	December	31, 2024	September 30, 2024	September 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
	366 12,158 12,524	95 79,064 79,159	463 13,300 13,763	115 75,675 75,790	544 14,409
					14,953

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
September 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)	24,306,982	% 16.97
2	B company. (Railway transportation)	20,228,474	% 14.12
3	C group. (Other holding)	16,250,167	% 11.34
4	D group. (Steel rolling and extruding)	12,691,093	% 8.86
5	E group. (Computers manufacturing)	7,639,846	% 5.33
6	F group. (Real estate development)	7,382,010	% 5.15
7	G group. (Real estate development)	7,316,335	% 5.11
8	H group. (Liquid crystal panel and components manufacturing)	6,966,518	% 4.86
9	I group. (Construction of other civil engineering projects)	6,794,316	% 4.74
10	J group. (Real estate development)	6,511,751	% 4.55

(Continued)

119

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	H 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	G group. (Real estate development)	6,987,484	% 5.32
10	L group. (Financial leasing)	6,979,217	% 5.31

September 30, 2024	September 30, 2024	September 30, 2024	September 30, 2024
Ranking	Group enterprise	Credit amount	Credit amount to equity ratio (%)
1	B company. (Railway transportation)	20,233,311	% 15.52
2	A group. (Real estate for sale and rental with own or leased property)	20,047,926	% 15.38
3	C group. (Other holding)	12,463,674	% 9.56
4	D group. (Steel rolling and extruding)	9,733,870	% 7.47
5	F group. (Real estate development)	7,416,677	% 5.69
6	E group. (Computers manufacturing)	7,312,110	% 5.61
7	H group. (Liquid crystal panel and components manufacturing)	7,043,487	% 5.40
8	K group. (Real estate development)	7,014,289	% 5.38
9	G group. (Real estate development)	6,907,350	% 5.30
10	L group. (Financial Leasing)	6,496,824	% 4.98

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)

120

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: %

September 30, 2025	September 30, 2025	September 30, 2025	September 30, 2025	September 30, 2025	September 30, 2025
Item	1~90 days	91~180 days	181days~1year	over 1 year	total
Interest rate-sensitive assets	$ 1,800,258,067	55,629,972	38,879,415	144,323,823	2,039,091,277
Interest rate-sensitive liabilities	1,506,091,456	121,643,503	123,932,259	54,140,410	1,805,807,628
Interest rate sensitivity gap	294,166,611	(66,013,531)	(85,052,844)	90,183,413	233,283,649
Net worth					143,257,654
Ratio of interest rate-sensitive assets to liabilities (%)					112.92
Ratio of interest rate-sensitive gap to net worth (%)					162.84

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

September 30, 2024
Item	1~90 days	91~180 days	181days~1year	over 1 year	total
Interest rate-sensitive assets	$ 1,663,612,423	59,373,535	46,889,124	151,583,212	1,921,458,294
Interest rate-sensitive liabilities	1,390,895,534	113,757,810	135,313,694	52,329,230	1,692,296,268
Interest rate sensitivity gap	272,716,889	(54,384,275)	(88,424,570)	99,253,982	229,162,026
Net worth					130,373,162
Ratio of interest rate-sensitive assets to liabilities (%)					113.54
Ratio of interest rate-sensitive gap to net worth (%)					175.77

(Continued)

121

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, %

September 30, 2025	September 30, 2025	September 30, 2025	September 30, 2025	September 30, 2025	September 30, 2025
Item	1~90 days	91~180 days	181days~1year	over 1 year	total
Interest rate-sensitive assets	$ 5,263,575	624,305	364,975	1,884,407	8,137,262
Interest rate-sensitive liabilities	7,593,482	1,975,318	2,191,432	-	11,760,232
Interest rate sensitivity gap	(2,329,907)	(1,351,013)	(1,826,457)	1,884,407	(3,622,970)
Net worth					4,691,588
Ratio of interest rate-sensitive assets to liabilities (%)					69.19
Ratio of interest rate-sensitive gap to net worth (%)					(77.22)

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)

September 30, 2024
Item	1~90 days	91~180 days	181days~1year	over 1 year	total
Interest rate-sensitive assets	$ 4,366,262	643,802	148,345	1,899,689	7,058,098
Interest rate-sensitive liabilities	7,178,991	1,575,407	2,868,089	-	11,622,487
Interest rate sensitivity gap	(2,812,729)	(931,605)	(2,719,744)	1,899,689	(4,564,389)
Net worth					4,125,733
Ratio of interest rate-sensitive assets to liabilities (%)					60.73
Ratio of interest rate-sensitive gap to net worth (%)					(110.63)

(Continued)

122

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		September 30, 2025	September 30, 2024
The ratio of return on assets	Before income tax	0.49	0.49
	After income tax	0.40	0.39
The ratio of return on equity	Before income tax	8.69	8.77
	After income tax	7.13	7.08
Net income ratio		36.21	33.46

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)

123

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

		September 30, 2025	September 30, 2025	September 30, 2025	September 30, 2025	September 30, 2025	September 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	$ 2,164,007,322	274,191,107	185,022,527	200,070,698	212,325,875	145,125,127	1,147,271,988
Major maturity capital outflow	2,629,656,573	78,653,662	135,488,464	277,646,026	339,262,414	503,484,455	1,295,121,552
Gap	(465,649,251)	195,537,445	49,534,063	(77,575,328)	(126,936,539)	(358,359,328)	(147,849,564)

Note: Listed amounts are denominated in New Taiwan dollars of the Bank and subsidiaries, including loan commitments of credit agreement and estimates to outflow $471,994,537.

		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.

		September 30, 2024	September 30, 2024	September 30, 2024	September 30, 2024	September 30, 2024	September 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	$ 2,007,234,089	239,793,479	135,760,058	178,625,179	188,100,587	174,917,531	1,090,037,255
Major maturity capital outflow	2,473,817,977	77,274,965	118,463,244	222,740,413	330,197,321	492,580,685	1,232,561,349
Gap	(466,583,888)	162,518,514	17,296,814	(44,115,234)	(142,096,734)	(317,663,154)	(142,524,094)

Note: Listed amounts are denominated in New Taiwan dollars of the Bank and subsidiaries, including loan commitments of credit agreement and estimates to outflow $461,060,259.

(Continued)

124

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

2) Maturity analysis in US dollars

Unit : In Thousands of US Dollars

		September 30, 2025	September 30, 2025	September 30, 2025	September 30, 2025	September 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	$ 14,182,611	4,447,688	1,807,441	1,699,408	2,787,838	3,440,236
Major maturity capital outflow	14,692,315	4,406,291	3,051,441	2,406,166	2,939,430	1,888,987
Gap	(509,704)	41,397	(1,244,000)	(706,758)	(151,592)	1,551,249

Note: Listed amounts are denominated in US dollars of the Bank and subsidiaries, including loan commitments of credit agreement and estimates to outflow USD $525,232.

	$525,232.
		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.
		September 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	$ 13,527,001	4,327,265	2,217,442	2,176,364	1,786,082	3,019,848
Major maturity capital outflow	14,168,300	3,626,482	3,059,342	1,948,226	3,612,349	1,921,901
Gap	(641,299)	700,783	(841,900)	228,138	(1,826,267)	1,097,947

Note: Listed amounts are denominated in US dollars of the Bank and subsidiaries, including loan commitments of credit agreement and estimates to outflow USD $615,561.

(Continued)

125

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 nine months ended September 30, 2025	Transaction status for the nine months ended September 30, 2025	Transaction status for the nine months ended September 30, 2025	Transaction status for the nine months ended September 30, 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	39,208	No difference with non- related parties	- %
1	TBB International Leasing Co., Ltd.	Taiwan Business Bank, Ltd.	2	Right-of-use assets	2,184	No difference with non- related parties	- %
1	TBB International Leasing Co., Ltd.	Taiwan Business Bank, Ltd.	2	Lease liabilities	2,226	No difference with non- related parties	- %
0	Taiwan Business Bank, Ltd.	TBB International Leasing Co., Ltd.	1	Net revenue other than interest	680	No difference with non- related parties	- %
0	Taiwan Business Bank, Ltd.	TBB Venture Capital Co., Ltd.	1	Deposits and remittances	33,827	No difference with non- related parties	- %
2	TBB Venture Capital Co., Ltd.	Taiwan Business Bank, Ltd.	2	Right-of-use assets	188	No difference with non- related parties	- %
2	TBB Venture Capital Co., Ltd.	Taiwan Business Bank, Ltd.	2	Lease liabilities	194	No difference with non- related parties	- %
0	Taiwan Business Bank, Ltd.	TBB Venture Capital Co., Ltd.	1	Net revenue other than interest	135	No difference with non- related parties	- %
0	Taiwan Business Bank, Ltd.	Taiwan Business Bank International Leasing Co., Ltd.	1	Deposits and remittances	86,337	No difference with non- related parties	- %
0	Taiwan Business Bank, Ltd.	TBB Consulting Co., Ltd.	1	Deposits and remittances	122,495	No difference with non- related parties	- %
0	Taiwan Business Bank, Ltd.	TBB Consulting Co., Ltd.	1	Net revenue other than interest	748	No difference with non- related parties	- %
3	TBB Consulting Co., Ltd.	Taiwan Business Bank, Ltd.	2	Right-to-use assets	1,047	No difference with non- related parties	- %
3	TBB Consulting Co., Ltd.	Taiwan Business Bank, Ltd.	2	Lease liabilities	1,073	No difference with non- related parties	- %
2	TBB Venture Capital Co., Ltd.	TBB Consulting Co., Ltd.	3	Business expenses	23,559	No difference with non- related parties	0.09 %
3	TBB Consulting Co., Ltd.	Taiwan Business Bank, Ltd.	2	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)

126

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 %	1,672,545	55,592	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 %	621,013	5,187	20	-	20	100.00 %	`〞`
TBB Venture Capital Co., Ltd.	Taiwan	Investing business	100.00 %	1,537,609	124,217	133,181	-	133,181	100.00 %	`〞`
TBB Consulting Co., Ltd.	Taiwan	Consulting business	100.00 %	69,699	8,232	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	37,766	100,000	2%-10%	2	-	To the lender for buying goods	378	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Xi Quan Restaurant Co., Ltd.	Financial receivables	No	98,827	80,614	100,000	2%-10%	2	-	To the lender for buying goods	806	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Maw Shing Top Co., Ltd.	Financial receivables	No	15,758	9,757	15,000	2%-10%	2	-	To the lender for buying goods	98	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Yu Ding Investment Co., Ltd.	Financial receivables	No	47,762	29,546	50,000	2%-10%	2	-	To the lender for buying goods	295	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Qing Rui Construction Co., Ltd.	Financial receivables	No	17,872	4,560	20,000	2%-10%	2	-	To the lender for buying goods	46	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Li Cheng Construction Co., Ltd.	Financial receivables	No	15,071	3,072	18,000	2%-10%	2	-	To the lender for buying goods	31	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	99 Bottles Co. Ltd.	Financial receivables	No	10,000	3,401	10,000	2%-10%	2	-	To the lender for buying goods	34	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	V-Optech Inc.	Financial receivables	No	9,731	7,530	10,000	2%-10%	2	-	To the lender for buying goods	75	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	193	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Shye Yao Steel Co., Ltd.	Financial receivables	No	30,000	10,177	30,000	2%-10%	2	-	To the lender for buying goods	102	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Flagship Square Enterprise Co Ltd.	Financial receivables	No	25,000	20,377	25,000	2%-10%	2	-	To the lender for buying goods	204	None	-	413,727	1,654,907

(Continued)

127

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	6,810	8,000	2%-10%	2	-	To the lender for buying goods	68	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Liang-wei Tobacco&Liq uor Co., Ltd.	Financial receivables	No	10,000	4,244	10,000	2%-10%	2	-	To the lender for buying goods	42	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Good Appetite Co., Ltd.	Financial receivables	No	8,000	5,832	8,000	2%-10%	2	-	To the lender for buying goods	58	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Yousing Enterprise Co Ltd.	Financial receivables	No	30,000	27,309	30,000	2%-10%	2	-	To the lender for buying goods	273	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Yung Yuan Co., Ltd.	Financial receivables	No	15,088	5,068	10,000	2%-10%	2	-	To the lender for buying goods	51	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Wisdom International Pet Science Co., Ltd.	Financial receivables	No	2,000	1,838	2,000	2%-10%	2	-	To the lender for buying goods	18	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Mr. Mick Co., Ltd.	Financial receivables	No	10,095	-	12,000	2%-10%	2	-	To the lender for buying goods	-	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Yong Da Long Construction Ltd.	Financial receivables	No	6,706	1,373	8,000	2%-10%	2	-	To the lender for buying goods	14	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Beef Traden Co., Ltd.	Financial receivables	No	4,000	2,549	4,000	2%-10%	2	-	To the lender for buying goods	25	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Chi Hong Co., Ltd.	Financial receivables	No	20,000	10,820	20,000	2%-10%	2	-	To the lender for buying goods	108	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Master Builde Construction Co., Ltd.	Financial receivables	No	5,000	3,648	5,000	2%-10%	2	-	To the lender for buying goods	36	None	-	413,727	1,654,907
1	TBB International Leasing Co., Ltd.	Kuan Lin Electrical Engineering Co., Ltd.	Financial receivables	No	15,000	8,864	15,000	2%-10%	2	-	To the lender for buying goods	89	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)

128

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	-	1,037,103	100.00 %	1,037,103	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	-	101,702	- %	101,702	`〞`
TBB Venture Capital Co., Ltd.	Energenesis Biomedical Co., Ltd.	-	Financial assets at fair value through profit or loss	548	29,188	0.62 %	29,188	Listed Stocks
TBB Venture Capital Co., Ltd.	Lungteh Shipbuilding Co., Ltd.	-	Financial assets at fair value through profit or loss	479	71,144	0.42 %	71,144	`〞`
TBB Venture Capital Co., Ltd.	Tigerair Taiwan Co., Ltd.	-	Financial assets at fair value through profit or loss	212	16,352	0.05 %	16,352	`〞`
TBB Venture Capital Co., Ltd.	Starlux Airlines Co., Ltd.	-	Financial assets at fair value through profit or loss	5,532	136,643	0.18 %	136,643	`〞`
TBB Venture Capital Co., Ltd.	Eir Genix, Inc.	-	Financial assets at fair value through profit or loss	845	59,404	0.28 %	59,404	`〞`
TBB Venture Capital Co., Ltd.	Chenfull Precision Co., Ltd	-	Financial assets at fair value through profit or loss	147	18,302	0.25 %	18,302	OTC Stocks
TBB Venture Capital Co., Ltd.	Handa Pharmaceuticals, Inc.	-	Financial assets at fair value through profit or loss	1,539	200,012	0.97 %	200,012	Emerging Stocks
TBB Venture Capital Co., Ltd.	Locus Cell Co., Ltd.	-	Financial assets at fair value through profit or loss	1,338	46,429	0.67 %	46,429	`〞`
TBB Venture Capital Co., Ltd.	TFBS Bioscience, Inc.	-	Financial assets at fair value through profit or loss	260	6,812	0.74 %	6,812	`〞`
TBB Venture Capital Co., Ltd.	Iovtec Co., Ltd.	-	Financial assets at fair value through profit or loss	636	49,604	2.59 %	49,604	`〞`
TBB Venture Capital Co., Ltd.	MegaPro Biomedical Co., Ltd.	-	Financial assets at fair value through profit or loss	151	2,575	0.23 %	2,575	`〞`
TBB Venture Capital Co., Ltd.	Annji Pharmaceutical Co., Ltd.	-	Financial assets at fair value through profit or loss	400	18,880	0.43 %	18,880	`〞`
TBB Venture Capital Co., Ltd.	Ina Energy Corporation	-	Financial assets at fair value through profit or loss	2,179	68,189	0.98 %	68,189	`〞`
TBB Venture Capital Co., Ltd.	Song Chuan Precision Co., Ltd	-	Financial assets at fair value through profit or loss	665	99,744	0.92 %	99,744	`〞`
TBB Venture Capital Co., Ltd.	aetherAI Co., Ltd.	-	Financial assets at fair value through profit or loss	1,730	61,069	1.95 %	61,069	`〞`
TBB Venture Capital Co., Ltd.	ION Electronic Materials Co., LTD.	-	Financial assets at fair value through profit or loss	300	23,070	0.87 %	23,070	`〞`
TBB Venture Capital Co., Ltd.	Techplasma Technology Co., Ltd	-	Financial assets at fair value through profit or loss	944	60,962	2.84 %	60,962	Unlisted Stocks
TBB Venture Capital Co., Ltd.	Hephas Energy Corporation Ltd.	-	Financial assets at fair value through profit or loss	979	81,932	2.91 %	81,932	`〞`

(Continued)

129

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	31,249	2.99 %	31,249	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	11,786	1.87 %	11,786	`〞`
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	26,637	0.95 %	26,637	`〞`
TBB Venture Capital Co., Ltd.	Quants AI Inc.	-	Financial assets at fair value through profit or loss	1,600	6,000	8.89 %	6,000	`〞`
TBB Venture Capital Co., Ltd.	Honley Auto. Parts Co., Ltd	-	Financial assets at fair value through profit or loss	7,000	134,050	5.75 %	134,050	`〞`
TBB Venture Capital Co., Ltd.	Juncheng Technology Co., Ltd	-	Financial assets at fair value through profit or loss	600	10,602	1.53 %	10,602	`〞`
TBB Venture Capital Co., Ltd.	Asia Hydrogen Energy Corporation	-	Financial assets at fair value through profit or loss	490	32,666	3.34 %	32,666	`〞`
TBB Venture Capital Co., Ltd.	Eti Ca Battery Inc.	-	Financial assets at fair value through profit or loss	575	38,784	2.76 %	38,784	`〞`
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	16,143	2.87 %	16,143	`〞`
TBB Venture Capital Co., Ltd.	Maxima Biotech Inc.	-	Financial assets at fair value through profit or loss	1,425	32,576	4.76 %	32,576	`〞`
TBB Venture Capital Co., Ltd.	GoodLinker Co., Ltd.	-	Financial assets at fair value through profit or loss	100	3,000	1.67 %	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	16,808	0.53 %	16,808	`〞`
TBB Venture Capital Co., Ltd.	Taiwania Buffalo III Biotechnology Venture Capital LLP.	-	Financial assets at fair value through profit or loss	-	70,632	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	-	28,479	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	-	11,337	1.12 %	12,900	`〞`
TBB Venture Capital Co., Ltd.	Outstanding Capital Limited Partnership	-	Financial assets at fair value through profit or loss	-	28,833	4.86 %	27,924	`〞`

(Continued)

130

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 fair value through other comprehensive income	2,919	30,240	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	-	1,134	0.11 %	1,134	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	4,478,644	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	4,341,379	"
Taiwan Business Bank International Leasing Co., Ltd.	Leasing business	838,305 (CNY170 million) (Operating capital)	(1)	838,305 (CNY170 million)	-	-	838,305 (CNY170 million)	33,053 (2)c	100%	33,053 (2)c	1,037,103	"

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)

131

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)	85,954,592

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	1,575,653,636	% 16.21
National Development Fund, Executive Yuan	570,126,700	% 5.87

(Continued)

132

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 are 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 September 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 September 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 $ 5,208,509 2,858,975 8,067,484 (577,197) (4,443,757) $ 3,046,530 Banking Segment $ 4,891,396 3,713,544 8,604,940 (1,980,958) (4,208,780) $ 2,415,202	Securities, Trust, Insurance agent and Others 76,225 1,295,069 1,371,294 (5,579) (231,305) 1,134,410 Securities, Trust, Insurance agent and Others 92,411 837,912 930,323 (2,303) (217,634) 710,386	Adjustment and Elimination - (187,619) (187,619) - 7,827 (179,792) Adjustment and Elimination - (21,860) (21,860) - 7,768 (14,092)	Total 5,284,734 3,966,425 9,251,159 (582,776) (4,667,235) 4,001,148 Total 4,983,807 4,529,596 9,513,403 (1,983,261) (4,418,646) 3,111,496

(Continued)

133

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

For the nine months ended September 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 nine months ended September 30, 2024	Banking Segment $ 14,849,434 8,390,139 23,239,573 (2,130,495) (12,251,870) $ 8,857,208 $ 2,446,620,011 $ 2,306,729,919 Banking Segment $ 13,969,558 9,218,534 23,188,092 (3,181,734) (11,648,307) $ 8,358,051 $ 2,305,243,710 $ 2,177,990,154	Securities, Trust, Insurance agent and Others 247,807 3,756,616 4,004,423 4,549 (741,202) 3,267,770 17,962,695 10,694,267 Securities, Trust, Insurance agent and Others 261,022 3,176,385 3,437,407 (16,816) (687,109) 2,733,482 19,245,090 12,365,712	Adjustment and Elimination - (216,787) (216,787) - 23,559 (193,228) (4,230,541) (329,675) Adjustment and Elimination - (123,711) (123,711) - 21,739 (101,972) (4,068,170) (308,398)	Total 15,097,241 11,929,968 27,027,209 (2,125,946) (12,969,513) 11,931,750 2,460,352,165 2,317,094,511 Total 14,230,580 12,271,208 26,501,788 (3,198,550) (12,313,677) 10,989,561 2,320,420,630 2,190,047,468
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.

134

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

Reviewed only, not audited in accordance with generally standards as of September 30, 2025 and 2024. TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Consolidated Balance Sheets of Security Division

September 30, 2025, December 31, 2024 and September 30, 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets Current Assets`：` 113200 Current financial assets at fair value through other comprehensive income 114030 Margin loans receivable 114130 Accounts receivable 119000 Other current assets Total current assets Non-current Assets`：` 123200 Non-current financial assets at fair value through other comprehensive income 123300 Non-current financial assets at amortized cost 125000 Property and equipment, net 125800 Right-of-use assets, net 127000 Intangible assets 129000 Other non-current assets Total non-current assets Total assets	September 30, 2025 Amount `％` $ 1,944,780 23 3,052,590 35 962,199 11 14,030 - 5,973,599 69 2,310,374 27 299,225 4 30,804 - 91 - 23,924 - 31,630 - 2,696,048 31 $ 8,669,647 100	December 31, 2024 Amount `％` 1,098,288 11 4,032,095 38 590,132 6 108,446 1 5,828,961 56 4,301,380 41 299,067 3 34,469 - 113 - 26,362 - 33,613 - 4,695,004 44 10,523,965 100	September 30, 2024
			Amount `％` 1,098,417 10 3,725,793 36 650,319 6 291,694 3 5,766,223 55 4,316,102 41 299,042 3 36,042 1 121 - 23,269 - 33,625 - 4,708,201 45 10,474,424 100

Liabilities and equity Current Liabilities`：` 214010 Liabilities for bonds with attached repurchase agreements 214040 Securities financing refundable deposits 214050 Deposits payable for securities financing 214130 Accounts payable 216000 Current lease liabilities 219000 Other current liabilities Total current liabilities 229030 Guaranteed deposits received 226000 Non-current lease liabilities 229110 Inter-department accounts, credit Total non-current liabilities Total liabilities Equity parent company 301110 Assigned working capital 304020 Special reserve 304040 Unappropriated retained earnings 305290 Other equity, other Total equity Total liabilities and equity	September 30, 2025 Amount % $ 919,521 12 33,804 - 35,570 - 881,937 10 30 - 65,526 1 1,936,388 23 20 - 62 - 4,259,390 49 4,259,472 49 6,195,860 72 2,200,000 25 185,127 2 175,256 2 (86,596) (1) 2,473,787 28 $ 8,669,647 100	December 31, 2024		September 30, 2024 Amount % 810,493 8 79,773 1 99,061 1 557,087 5 30 - 334,494 3 1,880,938 18 20 - 92 - 6,112,831 58 6,112,943 58 7,993,881 76 2,200,000 21 185,127 2 229,555 2 (134,139) (1) 2,480,543 24 10,474,424 100

135

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

Reviewed only, not audited in accordance with auditing standards. TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income of Security Division

For the three and nine months ended September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Revenues`：` 401000 Brokerage handling fee revenue 401110 Handling fees from securities financing 421200 Interest revenue 424100 Future commission revenue 425300 Impairment loss (impairment gain and reversal of impairment loss) 428000 Other operating income Expenses`：` 501000 Brokerage handling fee expenses 503000 Refinancing processing fee expenses 521200 Financial costs 528000 Other operating expenditure 530000 Operating expenses 602000 Other losses Net income 805000 Other comprehensive income`：` 805615 Unrealized gains (losses) from investment in debt instruments measured at fair value through other comprehensive income 805000 Other comprehensive income (net amount after tax) Total comprehensive income	For the three months ended September 30, 2025 2024 Amount `％` Amount `％` $ 155,515 79 155,813 76 173 - 248 - 38,856 20 48,903 24 564 1 758 - 439 - 360 - 454 - 208 - 196,001 100 206,290 100 11,874 6 11,482 6 24 - - - 2,310 1 1,710 1 209 - 209 - 93,075 48 96,427 48 13,122 7 17,136 8 120,614 62 126,964 63 75,387 38 79,326 37 18,741 10 38,489 19 18,741 10 38,489 19 $ 94,128 48 117,815 56	For the three months ended September 30, 2025 2024 Amount `％` Amount `％` $ 155,515 79 155,813 76 173 - 248 - 38,856 20 48,903 24 564 1 758 - 439 - 360 - 454 - 208 - 196,001 100 206,290 100 11,874 6 11,482 6 24 - - - 2,310 1 1,710 1 209 - 209 - 93,075 48 96,427 48 13,122 7 17,136 8 120,614 62 126,964 63 75,387 38 79,326 37 18,741 10 38,489 19 18,741 10 38,489 19 $ 94,128 48 117,815 56	For the three months ended September 30, 2025 2024 Amount `％` Amount `％` $ 155,515 79 155,813 76 173 - 248 - 38,856 20 48,903 24 564 1 758 - 439 - 360 - 454 - 208 - 196,001 100 206,290 100 11,874 6 11,482 6 24 - - - 2,310 1 1,710 1 209 - 209 - 93,075 48 96,427 48 13,122 7 17,136 8 120,614 62 126,964 63 75,387 38 79,326 37 18,741 10 38,489 19 18,741 10 38,489 19 $ 94,128 48 117,815 56	For the nine months ended September 30, 2025 2024 Amount `％` Amount `％` 376,744 74 445,955 76 497 - 613 - 127,364 25 137,799 23 1,762 1 2,289 1 1,322 - 362 - 984 - 507 - 508,673 100 587,525 100 28,326 6 32,683 6 31 - 20 - 6,965 1 4,976 1 596 - 636 - 263,693 52 271,791 46 33,806 7 47,864 8 333,417 66 357,970 61 175,256 34 229,555 39 60,032 12 (22,332) (4) 60,032 12 (22,332) (4) 235,288 46 207,223 35
	2025	`％` 79 - 20 1 - - 100 6 - 1 - 48 7 62 38 10 10 48	2024	2025 Amount `％` 376,744 74 497 - 127,364 25 1,762 1 1,322 - 984 - 508,673 100 28,326 6 31 - 6,965 1 596 - 263,693 52 33,806 7 333,417 66 175,256 34 60,032 12 60,032 12 235,288 46
	Amount $ 155,515 173 38,856 564 439 454 196,001 11,874 24 2,310 209 93,075 13,122 120,614 75,387 18,741 18,741 $ 94,128		Amount 155,813 248 48,903 758 360 208 206,290 11,482 - 1,710 209 96,427 17,136 126,964 79,326 38,489 38,489 117,815

AI assistant

TBB — Interim / Quarterly Report 2025

52201_rns_2025-12-24_8fe083a8-9cd1-4566-92f2-8bed32bcc4aa.pdf

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Conclusion

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

September 30, 2025, December 31, 2024 and September 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 nine months ended September 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 nine months ended September 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 nine months ended September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

TAIWAN BUSINESS BANK, LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements September 30, 2025 and 2024

(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

(ii) Other amendments

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

(ii) Other leases

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

(x) Other liabilities

TBB Interim / Quarterly Report 2025