T.C.C.B. — Annual Report 2014

Mar 19, 2015

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2015.3.20

Disclaimer

Financial numbers in this report may include preliminary unaudited numbers or management accounts.

1

(NT$ Million, NT$,%) Profitability

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Net Profit
YoY +22%
3,719
3,060
2,804
2012(IFRS) 2013 2014
ROE(after tax)
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ROC GAAP IFRS
10.38% 10.55% 10.38% [11.11% ]
6.48%
2.37%
2010 2011 2012 2012 2013 2014
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Retroactively adjusted EPS
1.32
1.06 1.16
EPS(after tax)
1.32
1.23
1.20
2012 2013 2014
ROA(after tax)
ROC GAAP IFRS
0.73%
0.67% 0.68%
0.65%
0.40%
0.13%
2010 2011 2012 2012 2013 2014
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2

(%) Capital adequacy

Consolidated

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Tier 1 Capital Ratio (=Common Equity Tier 1 Ratio)

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10.86%
2.15
8.71
2012
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11.91%
3.26
8.65
2013
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11.64%
2.54
9.10
2014
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Individual
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Tier 1 Capital Ratio (=Common Equity Tier 1 Ratio)

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11.37%
10.84%
10.54%
1.97 2.95 2.06
8.57 8.42 8.78
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2012

2013

2014

3

Revenue breakdown(NT$ Million, %)

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YoY YoY YoY YoY
+13.5% +17.0% +15.1% +56.6%
Net
interest
1,879 income
1,854
1,740
1,689 68% 67%
1,675 Net fee
4Q/13
income
1Q/14
Gain on
2Q/14 reversal of
impairmen
19% 19% t loss
3Q/14
Others
10% 10%
506 518 503 482 574 464 518 4Q/14 3% 4%
2013 2014
164 175 65
134 Revenue %
53 84 74
2013: 9,264 2014: 10,715 +15.7%
(7)
Net interest income Net fee income Gain on reversal of Others
impairment loss
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4

Loan breakdown(NT$ Hundred Million, %)

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YoY YoY YoY YoY YoY YoY
+8.1% +9.3% +0.4% -5.0% +8.1% -5.9%
Other personal
loan
1,612 30% 31%
1,560 1,578 Consumption
1,491 1,495 4Q/13 loan
9% 8%
Corporate
1Q/14
1,214
1,172
1,148
1,111 1,112 2Q/14 SME
41% 42%
3Q/14
OBU
4Q/14 5% 5%
555 562 559 559 557 Mortgage
15% 14%
309 2013 2014
321 308 308 305
189 188
172 187 186 Total Loan %
17 17 17 16 16
2013: 3,667 2014: 3,890 +6.08%
SME Other personal loan Mortgage Corporate OBU Consumer loan
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5

Deposit breakdown(NT$ Hundred Million,%)

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Time
Loan-to-deposit ratio
deposits(forei
gn currency)
86.68% 86.75%
85.47% 85.49%
84.51% 4.67%
YoY
+6.1%
Time deposits
(foreign currency)
4,560
4,297 4,364 4,368 4,415 213 56.62%
136 164 170 201 123 Demand deposits
103 99 114 113 (foreign currency)
Checking &
19.42% demand
Time &
deposits(local
Time & saving deposits saving
2,135 (local currency) deposits(local currency)
2,131 2,149 2,090 2,090 45.81%
0.19% currency)
46.82%
Demand
deposits(forei
Checking & demand deposits
(local currency) gn currency)
2.70%
8.41%
1,927 1,952 1,994 2,011 2,089
(Dec 14)
Dec 13 Mar 14 Jun 14 Sep 14 Dec 14
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【 Note 】 At the end of Dec. 2014, the proportion of checking and demand deposits of local currency to 。 total deposit of local currency was 49.46%

6

Net interest margin and interest-bearing asset (NT$ Hundred Million,%)

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NIM NIM
1.34
1.33% 1.34% 1.30 %
1.31%
1.30% %
Average interest-bearing
Average interest-bearing asset
asset
Loan +323
QoQ +0.7%
YoY +9.3%
NCD +41
4,952 CP +37
4,952
4,917
4,531
4,884
4,827
2013 2014
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Average interest-bearing
Average interest-bearing asset
asset
QoQ +0.7%
YoY +9.3%
4,952
4,917
4,531
4,884
4,827
1Q/14 2Q/14 3Q/14 4Q/14 2013 2014
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7

Fee breakdown(NT$ Million,%)

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2,484
83
Security
YoY YoY YoY YoY YoY YoY
Brokerage
+32.3% +26.0% +9.4% +2.5% +2.4% +45.6%
2,019
57 Insurance
Brokerage
1,139
318
Trust
861
283 274 4Q/13
264
1Q/14 Loans
230
605
2Q/14 480
Others
158 155 151 3Q/14
134 141 297 325
4Q/14 Foreign
198 203
exchange
89
83 82 126 129 business
75 71
56 47 49 50 57 2013 2014
31 30 32 34 33
15 17 19 24 23 Fee income %
Insurance Brokerage Trust 【 note 】 Loans Others 【 note 】 Foreign exchange Security Brokerage 2013: 2,019 2014: 2,484 +23.03%
business
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【 note 】 Trust business includes mutual fund business and other trust business.

、 。 Others business includes deposits and remittance business credit card business and leasing business

8

Cost-to-income ratio(NT$ Million,%)

Cost-to-income ratio

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40.4% 38.8% 47.6% 43.5% 38.1% Operating income Operating expenses 926 1,105 1,030 1,167 1,230 2,429 2,845 2,370 2,454 3,045 4Q/13 1Q/14 2Q/14 3Q/14 4Q/14

9

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(NT$ Million,%) Asset quality

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Reserve/Total Loans
NPLs/Total Loans
1.42%
1.32%
1.27%
1.22% 1.23%
0.58%
0.44% 0.46%
0.40%
0.34%
Reserve/NPLs
423.62%
316.16%
298.55%
265.67%
209.71%
NPLs
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2,126
1,767
1,630
1,516
1,305
Dec 13 Mar 14 Jun 14 Sep 14 Dec 14
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Loan Reserve

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5,526
4,868 4,794 4,694
4,458
Dec 13 Mar 14 Jun 14 Sep 14 Dec 14
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10

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Summary ratios

			YearlyResults	YearlyResults	YearlyResults		YoY (2014 V.S. 2013)
			2012(ROC)	2013	2014
Per Share Data
	EPS(after-tax) (NT$)		1.20	1.23	1.32		7.32%
	DPS(NT$)		0.825	0.777	0.89 【note】		14.54%
	BVPS(NT$)		12.11	12.25	12.59		2.78%
	Common shares outstanding(million share)		2,319	2,535	2,852		12.50%
Profitability
	ROA(after-tax)(%)		0.67%	0.65%	0.73%		0.08%
	ROE(after-tax)(%)		10.38%	10.38%	11.11%		0.73%
Capital Adequacy(Individual)
	Capital adequacyratio(%)		10.54%	11.37%	10.84%		-0.53%
	Tier 1 ratio(%)		8.57%	8.42%	8.78%		0.36%
	Common equity Tier 1 ratio(%)		-	8.42%	8.78%		0.36%

【note】 Not recognized by meeting of shareholders.

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Summary ratios (continued)

			YearlyResults	YearlyResults	YearlyResults		YoY (2014 V.S. 2013)
			2012(ROC)	2013	2014
Bank Growth Ratios
	NII Growth		10.84%	15.09%	13.50%		-1.59%
	Feegrowth		34.25%	27.87%	17.03%		-10.84%
	Netprofitgrowth		91.06%	9.13%	21.53%		12.40%
Bank Performance Ratios
	Loangrowth		16.60%	12.22%	6.13%		-6.09%
	Depositgrowth		15.53%	11.46%	6.11%		-5.35%
	Loan-to-Deposit Ratio		84.90%	85.47%	85.49%		0.02%
	NIM		1.28%	1.30%	1.34%		0.04%
	NII/Operation income		77.85%	68.11%	66.84%		-1.27%
	Fee/Operatingincome		19.71%	19.16%	19.39%		0.23%
	Cost-to-income ratio		49.24%	41.70%	42.30%		0.60%
AssetQualityRatios
	NPLs/Total Loans		0.37%	0.58%	0.34%		-0.24%
	Reserve / Total Loans		1.01%	1.22%	1.42%		0.20%
	Reserve / NPLs		275.39%	209.71%	423.62%		213.91%

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Balance sheet (Consolidated)

			YearlyResults	YearlyResults	YearlyResults		YoY (2014 V.S. 2013)
NT$million			2012(ROC)	2013	2014
Assets：
	Cash and due from banks		77,017	81,087	91,867		13.29%
	Financial investment, net		33,848	39,284	36,687		-6.61%
	Loans, net		324,029	362,917	384,382		5.91%
	A/R, net		3,565	6,486	8,119		25.18%
	LT investments, net		127	143	140		-2.10%
	Land, premises and equipments, net		3,350	3,416	5,104		49.41%
	Others		2,737	2,880	3,724		29.31%
Total assets			444,673	496,213	530,023		6.81%
Liabilities:
	Deposits		385,511	429,704	455,966		6.11%
	Other liabilities		31,081	35,471	38,166		7.60%
Total liabilities			416,592	465,175	494,132		6.22%
Total stockholders' equity			28,081	31,038	35,891		15.64%
Total liabilities andstockholders' equity			444,673	496,213	530,023		6.81%

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P&L (Consolidated)

			YearlyResults	YearlyResults	YearlyResults	YoY (2014 V.S. 2013)
NT$ million			2012(ROC)	2013	2014
Operating income
	Net interest income		5,480	6,310	7,162	13.5%
	Net fee income		1,388	1,775	2,077	17.0%
	LT investment income		(1)	10	0	-96.0%
	Net trading income/(loss)		265	151	97	-35.8%
	Asset impairment loss or reversalprofit		(2)	893	1,028	15.1%
	Others		(90)	125	351	180.8%
Total operating income			7,040	9,264	10,715	15.7%
Non interest expenses
	Operatingexpenses		(3,466)	(3,863)	(4,532)	17.3%
Pre-provision Profit			3,574	5,401	6,183	14.5%
Credit Loss Provisions, net			(249)	(1,864)	(1,983)	6.4%
Profit Before Income Tax			3,325	3,537	4,200	18.8%
Net Profit After Income Tax			2,778	3,060	3,719	21.5%

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Credit risk analysis

			YearlyResults	YearlyResults	YearlyResults	YoY (2014 V.S. 2013)
NT$ million			2012	2013	2014
By Industry
	Personal loans		149,241	169,346	180,027	6.31%
	Manufacturer		73,539	79,562	79,373	-0.24%
	Commerce		51,880	58,154	58,571	0.72%
	Real estate		25,538	34,927	47,367	35.62%
	Construction industry		11,427	11,626	13,580	16.81%
	Others		25,300	27,783	28,454	2.42%
Total			336,925	381,398	407,372	6.81%
By collateral
	Non-secured loans		77,135	75,354	76,836	1.97%
	Secured loans
	By property		226,112	266,693	291,663	9.36%
	By letter of guarantee		19,900	21,368	20,467	-4.22%
	Others		13,778	17,983	18,406	2.35%
Total			336,925	381,398	407,372	6.81%

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Deposit breakdown

			YearlyResults	YearlyResults	YearlyResults		YoY (2014 V.S. 2013)
NT$ million			2012	2013	2014
Checking、demand & savings
	Checking & demand deposits		75,617	95,990	105,617		10.03%
	Saving deposits		88,448	96,755	103,339		6.80%
Sub-total			164,065	192,745	208,956		8.41%
Time & savings
	Time deposits (incl. CD)		75,073	80,390	79,680		-0.88%
	Time saving deposits		125,933	132,697	133,803		0.83%
Sub-total			201,006	213,087	213,483		0.19%
Foreign currency deposits			20,437	23,864	33,527		40.49%
Remittances			2	9	-		-100.00%
Total deposits			385,511	429,704	455,966		6.11%

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Net interest income & fee income

NII Breakdown	NII Breakdown	NII Breakdown	NII Breakdown	NII Breakdown	NII Breakdown	NII Breakdown
			YearlyResults			YoY (2014 V.S. 2013)
NT$ million			2012(ROC)	2013	2014
Loan interest			7,771	8,765	9,655	10.15%
Other interest			856	1,152	1,461	26.82%
Interest expense			(3,147)	(3,607)	(3,954)	9.62%
Net interest income			5,480	6,310	7,162	13.50%
Fee Breakdown
			YearlyResults			YoY (2014 V.S. 2013)
NT$ million			2012(ROC)	2013	2014
Trust fee			317	480	604	25.83%
Brokerage fee			809	918	1,223	33.22%
Loan fee			190	248	268	8.06%
Other fee			309	373	389	4.29%
Total fee income			1,625	2,019	2,484	23.03%

17