T.C.C.B. — Annual Report 2025

Apr 28, 2026

Taichung Commercial Bank Co., Ltd.

Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Taichung Commercial Bank Co., Ltd.

Opinion

We have audited the accompanying financial statements of Taichung Commercial Bank Co., Ltd. (the “Bank”), which comprise the balance sheets as of December 31, 2025 and 2024, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the financial statements, including material accounting policy information (collectively referred to as the “financial statements”).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Bank as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Public Banks.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Bank in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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The following were the descriptions of the key audit matters in the audit of the financial statements of the Bank for the year ended December 31, 2025:

Expected Credit Losses of Notes Discounted and Loans, Net

As described in Notes 13 and 29(g) to the financial statements, notes discounted and loans amounted to $631,638,849 thousand, which accounted for 64% of total assets at December 31, 2025 and the expected credit losses of the notes discounted and loans amounted to $397,746 thousand, which accounted for 2% of total net revenue for the year ended December 31, 2025. Due to the large amount, such accounts have a significant effect on the financial statements of the Bank. In addition, the measurement of expected credit losses of notes discounted and loans involved various financial factors, such as probability of default and loss given default, which were determined by the management’s critical estimations and judgments, and also required compliance with relevant laws and regulations, and then recognized at the higher of the amount. Therefore, the expected credit loss of notes discounted and loans were identified as a key audit matter.

The relevant accounting policies, estimates, assumptions and other information are referred to in Notes 4(l), 5, 13 and 29(g) to the financial statements.

The main audit procedures performed for the expected credit losses of notes discounted and loans were as follows:

• We obtained an understanding of internal controls for the expected credit losses of notes discounted and loans of the Bank. We also tested whether notes discounted and loans were categorized in accordance with the relevant laws and regulations issued by the competent authorities.

• We obtained an understanding of and recalculated the key parameters (such as the probability of default and loss given default) for the expected credit losses of notes discounted and loans assessed by the Bank to evaluate the reasonableness of expected credit losses. In addition, we examined whether the amount of expected credit losses compiled with relevant laws and regulations issued by authorities.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Public Banks, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Bank’s financial reporting process.

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Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Bank to express an opinion on the financial statements. We are responsible for the direction, supervision, and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Shu-Lin Liu and Pan-Fa Wang.

Deloitte & Touche Taipei, Taiwan Republic of China

March 9, 2026

Notice to Readers

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

For the convenience of readers, the independent auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and financial statements shall prevail.

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TAICHUNG COMMERCIAL BANK CO., LTD.

BALANCE SHEETS DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

ASSETS CASH AND CASH EQUIVALENTS (Notes 4 and 6) DUE FROM THE CENTRAL BANK AND CALL LOANS TO OTHER BANKS (Notes 4, 7 and 34) FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Notes 4 and 8) FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (Notes 4 and 9) INVESTMENTS IN DEBT INSTRUMENTS AT AMORTIZED COST (Notes 4, 10 and 34) SECURITIES PURCHASED UNDER RESALE AGREEMENT (Notes 4 and 11) RECEIVABLES, NET (Notes 4, 12 and 33) NOTES DISCOUNTED AND LOANS, NET (Notes 4, 13 and 33) INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD, NET (Notes 4 and 14) OTHER FINANCIAL ASSETS, NET (Notes 4 and 15) PROPERTIES AND EQUIPMENT, NET (Notes 4 and 16) RIGHT-OF-USE ASSETS, NET (Notes 4, 17 and 33) INTANGIBLE ASSETS, NET (Notes 4 and 18) DEFERRED TAX ASSETS (Notes 4 and 30) OTHER ASSETS (Notes 19, 33 and 34) TOTAL LIABILITIES AND EQUITY DUE TO THE CENTRAL BANK AND OTHER BANKS (Note 20) FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Notes 4 and 8) SECURITIES SOLD UNDER REPURCHASE AGREEMENTS (Notes 4 and 21) PAYABLES (Notes 22 and 33) CURRENT TAX LIABILITIES (Notes 4 and 30) DEPOSITS AND REMITTANCES (Notes 23 and 33) BANK DEBENTURES (Notes 24 and 33) OTHER FINANCIAL LIABILITIES (Note 25) PROVISIONS (Notes 4 and 26) LEASE LIABILITIES (Notes 4, 17 and 33) DEFERRED TAX LIABILITIES (Notes 4 and 30) OTHER LIABILITIES (Notes 27 and 33) Total liabilities EQUITY (Note 28) Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Other equity Total equity TOTAL		2025 Amount % $ 12,689,843 1 52,557,909 5 41,897,662 4 100,276,211 10 103,257,320 10 16,180,210 2 4,698,838 1 631,638,849 64 7,374,388 1 3,888 - 20,450,213 2 916,471 - 493,354 - 667,036 - 3,060,869 - $ 996,163,061 100 $ 14,856,943 1 2,682,542 - 10,168,693 1 6,135,732 1 439,265 - 845,288,669 85 15,150,000 2 6,190,692 1 1,391,983 - 952,627 - 109,486 - 1,046,978 - 904,413,610 91 60,216,258 6 2,467,906 - 18,487,896 2 146,956 - 9,122,619 1 1,307,816 - 91,749,451 9 $ 996,163,061 100		2024
				Amount % $ 15,727,753 2 49,941,583 5 35,682,788 4 99,441,484 10 107,707,280 11 8,241,776 1 4,815,747 1 601,677,785 63 6,941,526 1 3,517 - 18,732,397 2 1,117,038 - 258,672 - 781,763 - 2,697,111 - $ 953,768,220 100 $ 19,651,215 2 2,821,648 - 12,844,223 1 5,806,593 1 626,628 - 808,728,342 85 13,500,000 1 4,131,841 1 1,269,467 - 1,145,320 - 109,486 - 1,042,073 - 871,676,836 91 55,187,566 6 1,528,256 - 15,840,362 2 147,742 - 8,848,877 1 538,581 - 82,091,384 9 $ 953,768,220 100

The accompanying notes are an integral part of the financial statements.

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TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

INTEREST REVENUE (Notes 4, 29 and 33) INTEREST EXPENSE (Notes 29 and 33) NET INTEREST NET INCOME OTHER THAN INTEREST Service fee income, net (Notes 4, 29 and 33) (Losses) gains on financial assets and liabilities at fair value through profit or loss (Note 29) Realized gains on financial assets at fair value through other comprehensive income (Notes 4 and 29) Foreign exchange gains (losses), net (Note 4) Reversal of impairment losses (impairment losses) on financial assets (Notes 4, 9, 10 and 29) Share of profit of subsidiaries and associates for using the equity method (Notes 4 and 14) Other non-interest gains, net (Notes 4, 29 and 33) TOTAL NET REVENUE PROVISION FOR BAD DEBTS EXPENSE, COMMITMENTS AND GUARANTEES (Notes 4, 12, 13, 15, 26 and 29)		2025 Amount % $ 26,153,521 135 (13,623,671) (70) 12,529,850 65 3,890,998 20 (57,836) - 640,150 3 1,528,428 8 2,120 - 856,270 4 27,050 - 19,417,030 100 (545,693) (3)		2024 Amount % $ 23,874,370 133 (12,408,156) (69) 11,466,214 64 3,558,735 20 3,198,987 18 549,458 3 (1,866,340) (10) (8,077) - 972,242 5 34,231 - 17,905,450 100 (953,373) (5)	Percentage Increase (Decrease)
					% 10 10 9 9 (102) 17 182 126 (12) (21) 8 (43) (Continued)

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TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING EXPENSES Employee benefits expenses (Notes 4, 26 and 29) Depreciation and amortization expenses (Notes 4 and 29) Other selling and administrative expenses (Notes 29 and 33) Total operating expenses PROFIT BEFORE INCOME TAX FROM CONTINUING OPERATIONS INCOME TAX EXPENSE (Notes 4 and 30) NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans (Notes 4 and 26) Unrealized gains on investments in equity instruments at fair value through other comprehensive income (Note 4) Share of the other comprehensive income of subsidiaries and associates accounted for using the equity method Income tax relating to items that will not be reclassified subsequently to profit or loss (Notes 4 and 30) Items that will not be reclassified subsequently to profit or loss, net of income tax		2025 Amount % $ (5,148,455) (26) (529,111) (3) (2,552,906) (13) (8,230,472) (42) 10,640,865 55 (1,583,372) (8) 9,057,493 47 (151,612) (1) 423,722 2 (9,500) - 22,662 - 285,272 1		2024 Amount % $ (4,464,090) (25) (461,787) (3) (2,346,630) (13) (7,272,507) (41) 9,679,570 54 (1,387,707) (8) 8,291,863 46 34,083 - 1,009,858 6 67,195 - (31,057) - 1,080,079 6	Percentage Increase (Decrease)
					% 15 15 9 13 10 14 9 (545) (58) (114) 173 (74) (Continued)

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TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Items that may be reclassified subsequently to profit or loss: Exchange differences on the translation of financial statements of foreign operations (Note 4) Share of the other comprehensive income of subsidiaries and associates accounted for using the equity method Unrealized gains (losses) on investments in debt instruments designated as at fair value through other comprehensive income Items that may be reclassified subsequently to profit or (loss), net of income tax Other comprehensive income (loss) for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 31) Basic Diluted		2025 Amount % $ (32,705) - 2,552 - 558,120 3 527,967 3 813,239 4 $ 9,870,732 51 $1.53 $1.53		2024 Amount % $ 47,720 1 36,017 - (1,788,841) (10) (1,705,104) (9) (625,025) (3) $ 7,666,838 43 $1.40 $1.40	Percentage Increase (Decrease)
					% (169) (93) 131 131 230 29

The accompanying notes are an integral part of the financial statements.

(Concluded)

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TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

BALANCE AT JANUARY 1, 2024 Appropriation of 2023 earnings Legal reserve Reversal of special reserve Cash dividends Share dividends Net profit for the year ended December 31, 2024 Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax Total comprehensive income (loss) for the year ended December 31, 2024 Disposals of investments in equity instruments designated as at fair value through other comprehensive income BALANCE AT DECEMBER 31, 2024 Appropriation of 2024 earnings Legal reserve Reversal of special reserve Cash dividends Share dividends Net profit for the year ended December 31, 2025 Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax Total comprehensive income (loss) for the year ended December 31, 2025 Issuance of ordinary shares for cash (Note 28) Share-based payment transaction (Note 32) Disposals of investments in equity instruments designated as at fair value through other comprehensive income BALANCE AT DECEMBER 31, 2025	Share Capital Ordinary Shares Capital Surplus $ 52,260,953 $ 1,528,256 - - - - - - 2,926,613 - - - - - - - - - 55,187,566 1,528,256 - - - - - - 4,028,692 - - - - - - - 1,000,000 890,000 - 49,650 - - $ 60,216,258 $ 2,467,906	Retained Earnings Unappropriated Legal Reserve Special Reserve Earnings $ 13,760,327 $ 308,196 $ 6,960,395 2,080,035 - (2,080,035) - (160,454) 160,454 - - (2,090,438) - - (2,926,613) - - 8,291,863 - - 29,112 - - 8,320,975 - - 504,139 15,840,362 147,742 8,848,877 2,647,534 - (2,647,534) - (786) 786 - - (2,152,315) - - (4,028,692) - - 9,057,493 - - (131,633) - - 8,925,860 - - - - - - - - 175,637 $ 18,487,896 $ 146,956 $ 9,122,619	Other Equity Exchange Differences on Translation of Financial Statements of Unrealized (Losses) Gains on Financial Assets at Fair Value Through Other Foreign Comprehensive Operations Income $ (91,150) $ 1,788,007 - - - - - - - - - - 83,737 (737,874) 83,737 (737,874) - (504,139) (7,413) 545,994 - - - - - - - - - - (30,153) 975,025 (30,153) 975,025 - - - - - (175,637) $ (37,566) $ 1,345,382	Total Equity $ 76,514,984 - - (2,090,438) - 8,291,863 (625,025) 7,666,838 - 82,091,384 - - (2,152,315) - 9,057,493 813,239 9,870,732 1,890,000 49,650 - $ 91,749,451

The accompanying notes are an integral part of the financial statements.

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TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expense Amortization expense Provision for bad debts expense, commitments and guarantees liabilities Losses (gains) on financial assets and liabilities at fair value through profit or loss Gains on disposal of properties and equipment Interest expense Interest revenue Dividend income Compensation cost of employee share options Share of profit of subsidiaries and associates for using the equity method Gains on disposal of investments in debt instruments at fair value through other comprehensive income Impairment losses on financial assets Unrealized losses (gains) on foreign currency exchange Gain on lease suspension Total adjustment Net changes in operating assets and liabilities Due from the Central Bank and call loans to other banks Financial assets at fair value through profit or loss Receivables Notes discounted and loans Other financial assets Other assets Due to the Central Bank and other banks Financial liabilities at fair value through profit or loss Securities sold under repurchase agreements Payables Deposits and remittances Other financial liabilities Provision for employee benefits Other liabilities Changes in operating assets and liabilities Cash (used in) generated from operations Interest received Dividend received Interest paid Income tax paid Net cash generated from operating activities	2025 $ 10,640,865 394,873 134,238 545,693 57,836 (1,539) 13,623,671 (26,153,521) (239,056) 49,650 (856,270) (401,094) (2,120) 942,780 (2,636) (11,907,495) (1,550,333) (6,532,679) 267,905 (30,308,790) (34,745) 200,066 (4,794,272) 120,863 (2,675,530) 232,292 36,560,327 2,058,851 (136,902) 78,148 (6,514,799) (7,781,429) 25,769,712 653,901 (13,521,824) (1,633,346) 3,487,014	2024 $ 9,679,570 381,751 80,036 953,373 (3,198,987) (2,809) 12,408,156 (23,874,370) (194,843) - (972,242) (354,615) 8,077 (1,091,813) (9,364) (15,867,650) (3,536,200) (2,413,220) (358,076) (62,069,858) 301,934 (151,861) 8,035,747 137,506 7,087,668 (2,994,783) 77,063,491 291,890 (103,530) (67,139) 21,223,569 15,035,489 23,270,434 685,995 (12,165,902) (1,567,564) 25,258,452

(Continued)

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TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Purchase of financial assets at amortized cost Proceeds from redemption of financial assets at amortized cost Acquisition of investments accounted for using equity method Proceeds from capital reduction of investments accounted for using equity method Payments for properties and equipment Proceeds from disposal of properties and equipment Increase in refundable deposits Payments for intangible assets Net cash generated from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuing bank debentures Repayment of financial debentures (Refund of) proceeds from guarantee deposits received Repayment of the principal portion of lease liabilities Cash dividends distributed Cash capital increase Net cash generated from (used in) financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT THE END OF YEAR	2025 $ (25,716,128) 25,921,219 (592,980,779) 596,977,002 - - (1,939,628) 1,603 (533,824) (368,924) 1,360,541 5,000,000 (3,350,000) (73,243) (162,775) (2,152,315) 1,890,000 1,151,667 (32,705) 5,966,517 46,933,494 $ 52,900,011	2024 $ (56,461,199) 21,234,376 (605,038,468) 610,529,462 (600,000) 786,000 (1,054,090) 2,919 (84,669) (141,020) (30,826,689) - (3,000,000) 201,356 (161,012) (2,090,438) - (5,050,094) 47,720 (10,570,611) 57,504,105 $ 46,933,494 (Continued)

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TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

RECONCILIATIONS OF THE AMOUNTS IN THE STATEMENTS OF CASH FLOWS WITH THE EQUIVALENT ITEMS REPORTED IN THE BALANCE SHEETS AT DECEMBER 31, 2025 AND 2024 Cash and cash equivalents in the balance sheets Due from the central bank and call loans to other banks in accordance with cash and cash equivalents under IAS 7 “Statement of Cash Flows” Securities purchased under resale agreements in accordance with cash and cash equivalents under IAS 7 “Statement of Cash Flows” Cash and cash equivalents at the end of the year The accompanying notes are an integral part of the financial statements.		**December 31 **	**December 31 **
		2025 $ 12,689,843 24,029,958 16,180,210 $ 52,900,011	2024 $ 15,727,753 22,963,965 8,241,776 $ 46,933,494 (Concluded)

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NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

TAICHUNG COMMERCIAL BANK CO., LTD.

1. GENERAL INFORMATION

Taichung Commercial Bank Co., Ltd. (the “Bank”), formerly known as Taichung District Association Saving Co., Ltd. It was established in April 1953 and started operations in August of the same year. In July 1975, the Banking Act of the Republic of China was revised and implemented. On January 1, 1978, the Taichung District Association Saving Co., Ltd. was restructured into Taichung SME Bank Co., Ltd. (“Taichung SME Bank”) and its shares were listed on May 15, 1984.

In line with the national financial policy to provide public and social financial services and support the economic construction as well as the development of industrial and commercial, Taichung SME Bank was renamed as Taichung Commercial Bank Co., Ltd. in December 1998. As of December 31, 2025, the Bank had a business department, a trust department, an international banking department, 85 domestic branches, a Malaysia Labuan branch, an offshore banking unit (OBU) and Vietnam Ho Chi Minh Representative Office. The operations of the Bank consist of planning, managing, operating a trust business and overseas financial business. These operations are regulated under the Bank Law of the Republic of China (ROC).

At the time of the establishment, the amount of capital invested by the Bank was $500 thousand. In line with the government degree, in order to improve the capital structure and cooperate with the government decree, the Bank has successively applied for increase and decrease of capital. As of December 31, 2025, the Bank’s capital amount was $60,216,258 thousand.

The financial statements are presented in the Bank’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Bank’s board of directors on March 5, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

• a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

Amendments to IAS 21 “Lack of Exchangeability”

The initial application of the Amendments to IAS 21 “Lack of Exchangeability” did not have a material impact on the Bank’s accounting policies.

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• b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” Annual Improvements to IFRS Accounting Standards - Volume 11 IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	Effective Date Announced by IASB
	January 1, 2026 January 1, 2026 January 1, 2026 January 1, 2023

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

• 1) The amendments to the application guidance of classification of financial assets

The amendments mainly amend the requirements for the classification of financial assets, including:

• a) If a financial asset contains a contingent feature that could change the timing or amount of contractual cash flows and the contingent event itself does not relate directly to changes in basic lending risks and costs (e.g., whether the debtor achieves a contractually specified reduction in carbon emissions), the financial asset has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding if, and only if,

  • In all possible scenarios (before and after the occurrence of a contingent event), the contractual cash flows are solely payments of principal and interest on the principal amount outstanding; and

  • In all possible scenarios, the contractual cash flows would not be significantly different from the contractual cash flows on a financial instrument with identical contractual terms, but without such a contingent feature.

• b) To clarify that a financial asset has non-recourse features if an entity’s ultimate right to receive cash flows is contractually limited to the cash flows generated by specified assets.

• c) To clarify that the characteristics of contractually linked instruments include a prioritization of payments to the holders of financial assets using multiple contractually linked instruments (tranches) established through a waterfall payment structure, resulting in concentrations of credit risk and a disproportionate allocation of cash shortfalls from the underlying pool between the tranches.

• 2) The amendments to the application guidance of derecognition of financial liabilities

The amendments mainly stipulate that a financial liability is derecognized on the settlement date. However, when settling a financial liability in cash using an electronic payment system, the Bank can choose to derecognize the financial liability before the settlement date if, and only if, the Bank has initiated a payment instruction that resulted in:

• The Bank having no practical ability to withdraw, stop or cancel the payment instruction;

• The Bank having no practical ability to access the cash to be used for settlement as a result of the payment instruction; and

• The settlement risk associated with the electronic payment system being insignificant.

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An entity shall apply the amendments retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance at the date of initial application. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight.

Except for the above impact, as of the date the financial statements were authorized for issue, the Bank has assessed that the application of other standards and interpretations will not have a material impact on the Bank’s financial position and financial performance.

• c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

Effective Date New, Amended and Revised Standards and Interpretations Announced by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between an investor and its Associate or Joint Venture” IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 (Note 2) IFRS 19 “Subsidiaries without Public Accountability: Disclosures” January 1, 2027 (including the 2025 amendments to IFRS 19) Amendments to IAS 21 “Translation to a Hyperinflationary January 1, 2027 Presentation Currency”

• Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

• Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

• To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Bank shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.

• The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.

• Provides guidance to enhance the requirements of aggregation and disaggregation: The Bank shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Bank shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Bank labels items as “other” only if it cannot find a more informative label.

• Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Bank as a whole, the Bank shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

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In addition, the following consequential amendments have been made to IAS 7 “Statement of Cash Flows”:

• The Bank shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.

• Interest and dividends received by the Bank shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Bank has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the financial statements were authorized for issue, the Bank is continuously assessing the other impacts of the above amended standards and interpretations on the Bank’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

• a. Statement of compliance

The financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Public Banks.

b. Basis of preparation

The financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

• 1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

• 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

• 3) Level 3 inputs are unobservable inputs for the asset or liability.

• c. Classification of current and non-current assets and liabilities

Accounts included in the Bank’s financial statements are not classified as current or non-current but are stated in the order of their liquidity. Refer to Note 37 for the maturity analysis of assets and liabilities.

• d. Foreign currencies

In preparing the Bank’s financial statements, transactions in currencies other than the Bank’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

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At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

For the purpose of presenting financial statements, the functional currencies of the entities included in the report are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

• e. Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand deposits, time deposits that can be readily terminated without the deduction of principal, and highly liquid investments that are readily convertible to a known amount of cash and which are subject to an insignificant risk of changes in value. For the statements of cash flows, cash and cash equivalents include cash and cash equivalents on the balance sheets, due from the Central Bank and call loans to other banks and securities purchased under resale agreements that are in conformity with the definition of cash and cash equivalents in IAS 7 “Statement of Cash Flows”, as endorsed and issued into effect by the FSC.

• f. Bonds purchased under resale/notes issued under repurchase agreements

A bond purchased under resell/a note issued under repurchase agreements is considered as a financing transaction if the risk and reward are attributed to the dealer. When a bond is purchased under a resale agreement, its purchase price is listed as “bonds purchased under resale agreements”, an asset account. For a note issued under repurchase agreement, the selling price is listed as “notes issued under repurchase agreements”, a liability account. The difference between purchase (sale) price under the agreement and actual sale (purchase) price is recorded as interest income (expense).

• g. Investments in subsidiaries

The Bank uses the equity method to account for its investments in subsidiaries. A subsidiary is an entity (including a structured entity) that is controlled by the Bank.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Bank’s share of the profit or loss and other comprehensive income of the subsidiary. The Bank also recognizes the changes in the Bank’s share of equity of subsidiaries.

The Bank assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Bank recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years.

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Profits or losses resulting from downstream transactions are eliminated in full in the Bank’s financial statements. Profits and losses resulting from upstream transactions and transactions between subsidiaries are recognized in the Bank’s financial statements only to the extent of interests in the subsidiaries that are not related to the Bank.

• h. Investments in associates

An associate is an entity over which the Bank has significant influence and which is neither a subsidiary nor an interest in a joint venture.

The Bank uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Bank’s share of the profit or loss and other comprehensive income of the associate. The Bank also recognizes the changes in the Bank’s share of the equity of associates attributable to the Bank.

The entire carrying amount of an investment is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

When the Bank transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Bank’s financial statements only to the extent that interests in the associate are not related to the Bank.

• i. Property and equipment

Property and equipment are measured at cost less accumulated depreciation and accumulated impairment loss.

Depreciation of property and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

• j. Intangible assets

• 1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

• 2) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

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• k. Impairment of property, plant and equipment, right-of-use asset, intangible assets other than goodwill

At the end of each reporting period, the Bank reviews the carrying amounts of its property, plant and equipment, right-of-use asset and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Bank estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to the individual cash-generating units; otherwise they are allocated to the smallest Bank of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

1. Financial instruments

Financial assets and financial liabilities are recognized when the Bank becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

• a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in debt instruments and equity instruments at FVTOCI.

i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such a financial asset is mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

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Financial assets at FVTPL are subsequently measured at fair value, and any dividends, interest earned and remeasurement gains or losses on such financial assets are recognized in gains on financial assets and liabilities at fair value through profit or loss. Fair value is determined in the manner described in Note 36.

• ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

• i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

• ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, due from the Central Bank and call loans to other banks, securities purchased under resale agreements, notes discounted and loans, trade receivables at amortized cost, other financial assets and refundable deposits, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

• i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and

• ii) Financial assets that are not credit-impaired on purchase or origination but have subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A financial asset is credit impaired when one or more of the following events have occurred:

• i) Significant financial difficulty of the issuer or the borrower;

• ii) Breach of contract, such as a default;

• iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or

• iv) The disappearance of an active market for that financial asset because of financial difficulties.

• iii. Investments in debt instruments at FVTOCI

Debt instruments that meet the following conditions are subsequently measured at FVTOCI:

• i) The debt instrument is held within a business model whose objective is achieved by both the collecting of contractual cash flows and the selling of such financial assets; and

• ii) The contractual terms of the debt instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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Investments in debt instruments at FVTOCI are subsequently measured at fair value. Changes in the carrying amounts of these debt instruments relating to changes in foreign currency exchange rates, interest income calculated using the effective interest method and impairment losses or reversals are recognized in profit or loss. Other changes in the carrying amount of these debt instruments are recognized in other comprehensive income and will be reclassified to profit or loss when the investment is disposed of.

iv. Investments in equity instruments at FVTOCI

On initial recognition, the Bank may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Bank’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

• b) Impairment of financial assets

The Bank recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables), investments in debt instruments that are measured at FVTOCI.

The Bank always recognizes lifetime expected credit losses (ECLs) for notes discounted and loans, trade receivables. For all other financial instruments, the Bank recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Bank measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Bank determines that the following situations indicate that a financial asset is in default (without taking into account any collateral held by the Bank):

• i. Internal or external information show that the debtor is unlikely to pay its creditors.

• ii. When a financial asset is more than 90 days past due unless the Bank has reasonable and corroborative information to support a more lagged default criterion.

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According to the Regulations, the Bank determines the allowance for credit losses by evaluating the recoverability of the outstanding balances of various loans at the balance sheet date. The allowances for doubtful accounts are determined based on management’s evaluation of the collectability of individual accounts, the borrowers’/clients’ financial condition and payment history. Such doubtful accounts are categorized into: Normal loans, need attention, less likely to be collectible in full, difficult to collect, and uncollectible accounts; and the allowance should be provided at 1%, 2%, 10%, 50% and 100%, respectively, of the loan amount to meet the minimum requirement for each category. Under the rule No. 10010006830 issued by the Banking Bureau of the FSC, additional allowance for doubtful accounts should be provided at 1% of the total loans. Under the rule No. 10300329440 issued by the Banking Bureau of the FSC, allowance for doubtful accounts should be provided at 1.5% or more of the loans for real estate.

The Bank recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of such a financial asset.

• c) Derecognition of financial assets

The Bank derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss which had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Equity instruments

Debt and equity instruments issued by the Bank are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments issued by the Bank are recognized at the proceeds received, net of direct issue costs.

3) Financial liabilities

• a) Subsequent measurement

Except the following situations, all financial liabilities are measured at amortized cost using the effective interest method:

• i. Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when such financial liabilities are held for trading at FVTPL.

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Financial liabilities held for trading are stated at fair value, and any dividends, interest earned and remeasurement gains or losses on such financial assets are recognized in gains on financial assets and liabilities at fair value through profit or loss. Fair value is determined in the manner described in Note 36.

• ii. Financial guarantee contracts

Financial guarantee contracts issued by the Bank, if not designated as at FVTPL, are subsequently measured at the higher of:

• i) The amount of the loss allowance reflecting expected credit losses; and

• ii) The amount initially recognized less, where appropriate, the cumulative amount of income recognized in accordance with the revenue recognition policies.

• b) Derecognition of financial liabilities

The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

• 4) Derivative financial instruments

The Bank enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts, cross-currency swap contracts, cross-currency option contracts, interest structured instrument contracts, non-deliverable forward contracts and asset swap contracts.

Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument; in which event, the timing of the recognition in profit or loss depends on the nature of the hedging relationship. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.

Derivatives embedded in hybrid contracts that contain financial asset host that is within the scope of IFRS 9 are not separated; instead, the classification is determined in accordance with the entire hybrid contract. Derivatives embedded in non-derivative host contracts that are not financial assets that is within the scope of IFRS 9 (e.g. financial liabilities) are treated as separate derivatives when they meet the definition of a derivative; their risks and characteristics are not closely related to those of the host contracts; and the host contracts are not measured at FVTPL.

• 5) Modification of financial instruments

When a financial instrument is modified, the Bank assesses whether the modification will result in derecognition. If modification of a financial instrument results in derecognition, it is accounted for as derecognition of financial assets or liabilities. If the modification does not result in derecognition, the Bank recalculates the gross carrying amount of the financial asset or the amortized cost of the financial liability based on the modified cash flows discounted at the original effective interest rate with any modification gain or loss recognized in profit or loss. The cost incurred is adjusted to the carrying amount of the modified financial asset or financial liability and amortized over the modified remaining period.

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For the changes in the basis for determining contractual cash flows of financial assets or financial liabilities resulting from the interest rate benchmark reform, the Bank elects to apply the practical expedient in which the changes are accounted for by updating the effective interest rate at the time the basis is changed, provided the changes are necessary as a direct consequence of the reform and the new basis is economically equivalent to the previous basis. When multiple changes are made to a financial asset or a financial liability, the Bank first applies the practical expedient to those changes required by interest rate benchmark reform, and then applies the requirements of modification of financial instruments to the other changes that cannot apply the practical expedient.

• m. Provisions (excluding amounts in provision for employee benefits)

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

• n. Revenue recognition

The Bank identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

• 1) Interest income

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Bank and the amount of income can be measured reliably. The interest income generated by all interest-bearing financial instruments is recognized on an accrual basis at the effective interest rate in accordance with relevant regulations.

• 2) Service fee and commissions income

The Bank identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied. Service fee income and expenses are recognized when loans or other services are provided. If the contract between the labor service and the collection of consideration is within one year, the major financial components of the contract will not be adjusted.

• 3) Dividend income

Dividend income from investments is recognized when a shareholder’s right to receive payment has been established and provided that it is probable that the economic benefits will flow to the Bank and that the amount of income can be measured reliably.

o. Leases

At the inception of a contract, the Bank assesses whether the contract is, or contains, a lease.

1) The Bank as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

• 24 -

When a lease includes both land and building elements, the Bank assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee. The lease payments are allocated between the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of a contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably between the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

• 2) The Bank as lessee

The Bank recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the Bank’s financial statements.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments, in-substance fixed payments, variable lease payments which depend on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Bank uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Bank remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line on the balance sheets.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

• p. Employee benefits

• 1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

• 2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

• 25 -

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost and net interest on the net defined benefit liabilities are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities represent the actual deficit in the Bank’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

• 3) Employee benefit - employees’ preferential deposits

The Bank has granted a preferential interest rate to its current employees and retired employees for their deposits within a prescribed amount. The preferential interest rate in excess of market interest rate is considered employee benefits.

Under the “Regulations Governing the Preparation of Financial Reports by Public Bank”, if the Bank’s preferential deposit interest rate for an employee as stated in the employment contract exceeds the market interest rate, the excess will be subject to IAS 19 “Employee Benefits” upon the employee’s retirement. The actuarial valuation assumptions and parameters are based on the guidelines announced by authority.

• 4) Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plans except that remeasurement is recognized in profit or loss.

• q. Share-based payment arrangements

Employee share options granted to employees

The fair value at the grant date of the employee share options is expensed on a straight-line basis over the vesting period, based on the Bank’s best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in capital surplus - employee share options. The expense is recognized in full at the grant date if the grants are vested immediately. The grant date of issued ordinary shares for cash which are reserved for employees is the date on which the board of directors approves the transaction.

At the end of each reporting period, the Bank revises its estimate of the number of employee share options that are expected to vest. The impact of the revision of the original estimates is recognized in profit or loss such that the cumulative expenses reflect the revised estimate, with a corresponding adjustment to capital surplus - employee share options.

• r. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

• 1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

• 26 -

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for as income tax in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

• 2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused loss carryforwards to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates except where the Bank is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Bank expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

• 3) Current and deferred taxes for the year

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Bank’s accounting policies, the Bank’s management is required to make judgments, estimates, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

• 27 -

Key Sources of Estimation Uncertainty

Estimated impairment of financial assets and financial guarantee contracts

The provision for impairment of loans, notes discounted, trade receivables, investments in debt instruments, and financial guarantee contracts is based on probability of default and loss given default. The Bank uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Bank’s historical experience, existing market conditions as well as forward looking estimates as of the end of each reporting period. For details of the key assumptions and inputs used, see Notes 36 and 37. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checks for clearing Due from banks		December 31	December 31
		2025 $ 5,712,263 961,600 6,015,980 $ 12,689,843	2024 $ 7,547,444 905,423 7,274,886 $ 15,727,753

• a. The loss allowance is measured at an amount equal to 12-month ECLs per historical experience and forward-looking information; there was no loss allowance on cash and cash equivalents as of December 31, 2025 and 2024.

• b. Reconciliations of cash and cash equivalents between the statements of cash flows and the balance sheets as of December 31, 2025 and 2024 were shown in the statements of cash flows.

7. DUE FROM THE CENTRAL BANK AND CALL LOANS TO OTHER BANKS

Deposit reserves Deposit reserves for checking accounts Deposit reserves for demand accounts Inter-bank clearing account Deposit reserves for foreign currency deposits Due from banks Deposit reserves for trust compensation		**December 31 **	**December 31 **
		2025 $ 20,513,070 28,192,316 2,998,516 125,716 608,291 120,000 $ 52,557,909	2024 $ 18,617,683 26,676,753 4,083,630 121,305 352,212 90,000 $ 49,941,583

• a. The loss allowance is measured at an amount equal to 12-month ECLs per historical experience and forward-looking information; there was no loss allowance on due from the Central Bank and call loans to other banks as of December 31, 2025 and 2024.

• b. The monthly depositary reserves to be deposited in the Central Bank of the Republic of China are calculated by applying the legally required reserve ratio to the monthly average balance of the reserve accounts. These reserve accounts can be used any time but the demand accounts can only be used for monthly deposit reserve adjustments.

• 28 -

• c. The Bank deposited the reserves for trust compensation on government bonds measured at amortized cost on December 31, 2025 and 2024, with a nominal amount of $120,000 thousand and $90,000 thousand, respectively. Refer to Note 34.

8. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at FVTPL Commercial papers Domestic listed shares Corporate bonds PEM Group policy assets Beneficiary certificates Asset swap contracts Cross-currency swap contracts Foreign exchange forward contracts Cross-currency option contracts Interest rate-linked structured instruments Interest rate futures Financial liabilities at FVTPL Cross-currency swap contracts Foreign exchange forward contracts Cross-currency option contracts Interest rate-linked structured instruments		December 31	December 31
		2025 $ 29,713,055 375,409 15,713 417,206 536,709 7,872,697 1,635,247 12,764 725,401 582,852 10,609 $ 41,897,662 $ 1,348,784 17,910 732,996 582,852 $ 2,682,542	2024 $ 21,024,344 335,604 31,742 537,893 1,146,137 7,375,317 3,825,317 72,218 642,594 676,182 15,440 $ 35,682,788 $ 1,484,499 10,604 650,363 676,182 $ 2,821,648

• a. The Bank engages in exchange rate related derivative financial contracts, mainly to provide customers and the Bank with hedging instruments for foreign exchange positions from transactions such as import/export and currency exchange, to avoid the risks from the business and to flatten the demand for foreign exchange funds from non-transactional operations.

• b. The nominal principal amounts of outstanding derivative contracts as of December 31, 2025 and 2024 were as follows:

Asset swap contracts Cross-currency swap contracts Foreign exchange forward contracts Cross-currency option contracts Interest rate futures contracts Interest rate-linked structured instrument contracts	December 31	December 31
	2025	2024 Contract Amount Interest Rate Range $ 7,329,600 0.90%-5.50% 172,426,239 - 2,998,221 - 59,719,723 - 990,869 - 4,131,841 0.00%-10.20%
	Contract Amount Interest Rate Range $ 7,842,900 2.15%-5.50% 155,975,502 - 1,341,968 - 65,229,721 - 451,973 - 6,190,692 0.00%-10.20%

• 29 -

9. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Investments in equity instruments at FVTOCI Investments in debt instruments at FVTOCI		December 31	December 31
		2025 $ 6,194,914 94,081,297 $ 100,276,211	2024 $ 5,384,471 94,057,013 $ 99,441,484

a. Investments in equity instruments at FVTOCI

Domestic listed shares Domestic unlisted shares Foreign listed shares		**December 31 **	**December 31 **
		2025 $ 4,239,411 1,390,743 564,760 $ 6,194,914	2024 $ 3,587,795 1,266,606 530,070 $ 5,384,471

These investments in equity instruments are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Bank’s strategy of holding these investments for long-term purposes.

The ordinary shares sold had a fair value of $565,475 thousand and $1,423,474 thousand and the accumulated unrealized valuation gains of $175,637 thousand and $504,139 thousand were transferred from other equity to retained earnings in 2025 and 2024, respectively.

Dividend income of $239,056 thousand and $194,843 thousand was recognized in profit or loss for the years ended December 31, 2025 and 2024, respectively.

• b. Investments in debt instruments at FVTOCI

Corporate bonds Government bonds Foreign bonds Bank debentures		December 31	December 31
		2025 $ 40,250,809 11,812,950 40,003,794 2,013,744 $ 94,081,297	2024 $ 37,784,331 12,381,475 42,401,938 1,489,269 $ 94,057,013

• 30 -

Foreign bonds denominated in foreign currency details were as follows:

USD AUD EUR GBP NZD	December 31
	2025 2024 $ 491,000 $ 592,300 561,000 587,000 90,000 60,000 170,000 165,000 445,000 495,000

• 1) As of December 31, 2025 and 2024, foreign bonds at FVTOCI amounted to $10,074,382 thousand (US$140,000 thousand and AUD270,000 thousand) and $10,338,994 thousand (US$228,300 thousand and AUD140,000 thousand) which had been sold under repurchase agreements. Refer to Note 38 for information relating to their carrying amount.

• 2) The Bank recognized reversal of impairment losses (impairment losses) of $1,409 thousand and $(11,138) thousand in 2025 and 2024, respectively, after assessing the expected credit losses of the investments in debt instruments at FVTOCI.

• 3) Refer to Note 37 for information relating to their credit risk management and impairment.

10. INVESTMENTS IN DEBT INSTRUMENTS AT AMORTIZED COST

Foreign bonds Government bonds NCDs issued by the CBC Corporate bonds Bank debentures Treasury bills Securitization commodity Less: Allowance for impairment loss Less: Withdrawal of reserves for trust compensation and refundable deposits		**December 31 **	**December 31 **
		2025 $ 20,985,127 8,924,759 50,790,000 22,254,708 - 378,344 622,868 103,955,806 (27,986) (670,500) $ 103,257,320	2024 $ 25,647,005 10,055,255 47,830,000 24,028,177 100,000 725,321 - 108,385,758 (37,978) (640,500) $ 107,707,280

• a. The foreign bonds denominated in foreign currencies were as follows:

USD CNY AUD ZAR	December 31
	2025 2024 $ 509,100 $ 602,997 110,000 440,000 154,000 137,500 680,000 680,000

• b. As of December 31, 2025 and 2024, the government bonds and the foreign bonds at amortized cost amounted to $500,000 thousand and $880,012 thousand (US$28,000 thousand), $810,000 thousand and $3,049,005 thousand (US$93,000 thousand), respectively, which had been sold under repurchase agreements. Refer to Note 38 for information relating to their carrying amount.

• 31 -

• c. The Bank recognized reversal of impairment of $711 thousand and $3,061 thousand in 2025 and 2024, respectively, after assessing the expected credit losses of the investments in debt instruments at amortized cost.

• d. Refer to Note 37 for information relating to their credit risk management and impairment.

11. SECURITIES PURCHASED UNDER RESALE AGREEMENTS

Securities purchased under resale agreements in the amounts of $16,180,210 thousand and $8,241,776 thousand as of December 31, 2025 and 2024 would be subsequently resold for $16,189,089 thousand and $8,244,707 thousand, respectively, with interest rate ranging from 1.44%-1.46% and 1.61%-1.63%, respectively.

12. RECEIVABLES, NET

Receivables on credit cards Accounts receivable factored without recourse Acceptances Interest receivables Receivables on foreign currency settlement Receivables from related parties Other receivables Less:Allowance for doubtful accounts		**December 31 **	**December 31 **
		2025 $ 764,224 164,976 509,546 3,060,871 14,124 42,964 264,668 4,821,373 (122,535) $ 4,698,838	2024 $ 810,366 215,200 721,108 2,902,582 15,434 29,392 245,670 4,939,752 (124,005) $ 4,815,747

• a. Movements in the total carrying amount of receivables for the years ended December 31, 2025 and 2024 were as follows:

2025

	12-month ECLs	12-month ECLs		Lifetime ECL	Credit- impaired Financial Assets	Credit- impaired Financial Assets		Total
Balance at January 1, 2025 Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs New receivables purchased or originated Write-offs Derecognition Foreign exchange differences and other changes Balance at December 31, 2025		$ 72,431,980 (16,784) (39,220) 12,169 13,706,235 - (4,108,809) 150,330 $ 82,135,901		$ 62,780 18,404 (5,335) (11,481) 12,623 - (31,373) 16,907 $ 62,525		$ 149,947 (1,620) 44,555 (688) 49,916 (26,045) (15,116) 22,686 $ 223,635		$ 72,644,707 - - - 13,768,774 (26,045) (4,155,298) 189,923 $ 82,422,061

• 32 -

2024

	12-month ECLs	12-month ECLs		Lifetime ECL	Credit- impaired Financial Assets	Credit- impaired Financial Assets		Total
Balance at January 1, 2024 Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs New receivables purchased or originated Write-offs Derecognition Foreign exchange differences and other changes Balance at December 31, 2024		$ 78,584,302 (18,838) (4,417) 9,274 9,900,287 - (16,284,874) 246,246 $ 72,431,980		$ 58,279 19,024 (1,202) (8,942) 8,447 - (15,829) 3,003 $ 62,780		$ 475,084 (186) 5,619 (332) 5,816 (326,112) (49,525) 39,583 $ 149,947		$ 79,117,665 - - - 9,914,550 (326,112) (16,350,228) 288,832 $ 72,644,707

The above-mentioned carrying amount of receivables include due from banks, due from the Central Banks and call loans to other banks, securities purchased under resale agreements, receivables on credit cards, accounts receivable factored without recourse, acceptances, interest receivables, other receivables, other financial assets (including delinquent receivables not from loans) and refundable deposits.

• b. Movements in the allowance for doubtful accounts of receivables for the years ended December 31, 2025 and 2024 were as follows:

2025

		12-month ECLs		Lifetime ECL		Credit- impaired Financial Assets	Impairment Loss Assessed under IFRS 9	Impairment Loss Assessed under IFRS 9	Difference of Impairment Loss under Regulations	Difference of Impairment Loss under Regulations		Total
Balance at January 1, 2025 Reconciliation from financial instruments recognized at the beginning of the year: Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs Derecognition of financial assets in current period New financial assets purchased or originated Difference of impairment loss under regulations Write-offs Recovery of written-offs Foreign exchange differences and other changes Balance at December 31, 2025		$ 23,403 (50) (450) 1,779 (14,826) 12,330 - - - (2,431) $ 19,755		$ 5,722 278 (930) (1,567) (2,210) 830 - - - 2,302 $ 4,425		$ 75,844 (228) 1,380 (212) (4,590) 14,161 - (16,930) - 35,191 $ 104,616		$ 104,969 - - - (21,626) 27,321 - (16,930) - 35,062 $ 128,796		$ 20,818 - - - - - 2,525 (9,115) 15,667 - $ 29,895		$ 125,787 - - - (21,626) 27,321 2,525 (26,045) 15,667 35,062 $ 158,691

• 33 -

2024

		12-month ECLs		Lifetime ECL		Credit- impaired Financial Assets	Impairment Loss Assessed under IFRS 9	Impairment Loss Assessed under IFRS 9	Difference of Impairment Loss under Regulations	Difference of Impairment Loss under Regulations		Total
Balance at January 1, 2024 Reconciliation from financial instruments recognized at the beginning of the year: Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs Derecognition of financial assets in current period New financial assets purchased or originated Difference of impairment loss under regulations Write-offs Recovery of written-offs Foreign exchange differences and other changes Balance at December 31, 2024		$ 20,491 (58) (14) 1,496 (13,629) 17,057 - - - (1,940) $ 23,403		$ 4,583 94 (142) (1,274) (1,720) 934 - - - 3,247 $ 5,722		$ 113,453 (36) 156 (222) (6,693) 1,474 - (62,451) - 30,163 $ 75,844		$ 138,527 - - - (22,042) 19,465 - (62,451) - 31,470 $ 104,969		$ 97,865 - - - - - 172,235 (263,661) 14,379 - $ 20,818		$ 236,392 - - - (22,042) 19,465 172,235 (326,112) 14,379 31,470 $ 125,787

The allowance for doubtful accounts of the abovementioned receivables includes allowances for delinquent receivables not from loans, refer to Note 15.

13. NOTES DISCOUNTED AND LOANS, NET

Bills negotiated Secured overdrafts Accounts receivable financing Short-term unsecured loans Short-term secured loans Medium-term unsecured loans Medium-term secured loans Long-term unsecured loans Long-term secured loans Delinquent loans Add: Adjustment of premium or discount Less: Allowance for doubtful accounts		December 31	December 31
		2025 $ 56,001 6,169 31,230 43,569,240 111,639,203 118,425,127 156,838,000 19,052,407 188,926,786 1,092,218 639,636,381 (1,551) (7,995,981) $ 631,638,849	2024 $ 138,036 5,427 30,780 49,242,188 110,586,385 105,755,811 146,310,330 16,713,870 180,148,209 116,663 609,047,699 4,339 (7,374,253) $ 601,677,785

• 34 -

• a. As of December 31, 2025 and 2024, the delinquent loans on which interest ceased to accrue amounted to $1,092,218 thousand and $116,663 thousand, respectively. The unrecognized interest revenues on these loans were $31,378 thousand and $3,175 thousand for the years ended December 31, 2025 and 2024, respectively.

• b. There was no credit loan written off without a lawsuit for the years ended December 31, 2025 and 2024.

• c. Movements in the total carrying amount of notes discounted and loans for the years ended December 31, 2025 and 2024 were as follows:

2025

	12-month ECLs	12-month ECLs		Lifetime ECL	Credit- impaired Financial Assets	Credit- impaired Financial Assets		Total
Balance at January 1, 2025 Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs New notes discounted and loans purchased or originated Write-offs Derecognition Foreign exchange differences and other changes Balance at December 31, 2025		$ 586,580,536 (8,379,934) (1,104,144) 5,113,975 275,541,518 - (215,345,016) (26,521,396) $ 615,885,539		$ 16,195,394 9,090,110 (1,053,806) (4,726,466) 3,157,243 - (3,875,094) (939,577) $ 17,847,804		$ 6,276,108 (710,176) 2,157,950 (387,509) 180,828 (1,066,002) (208,528) (341,184) $ 5,901,487		$ 609,052,038 - - - 278,879,589 (1,066,002) (219,428,638) (27,802,157) $ 639,634,830

2024

	12-month ECLs	12-month ECLs		Lifetime ECL	Credit- impaired Financial Assets	Credit- impaired Financial Assets		Total
Balance at January 1, 2024 Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs New notes discounted and loans purchased or originated Write-offs Derecognition Foreign exchange differences and other changes Balance at December 31, 2024		$ 524,983,114 (6,030,970) (428,272) 2,125,034 299,460,687 - (211,163,604) (22,365,453) $ 586,580,536		$ 15,147,713 6,045,874 (492,753) (2,090,823) 2,749,609 - (4,162,847) (1,001,379) $ 16,195,394		$ 7,473,198 (14,904) 921,025 (34,211) 184,012 (1,613,510) (792,770) 153,268 $ 6,276,108		$ 547,604,025 - - - 302,394,308 (1,613,510) (216,119,221) (23,213,564) $ 609,052,038

• 35 -

• d. Movements in the allowance for doubtful accounts of notes discounted and loans for the years ended December 31, 2025 and 2024 were as follows:

2025

		12-month ECLs	Lifetime ECL	Lifetime ECL		Credit- impaired Financial Assets	Impairment Loss Assessed under IFRS 9	Impairment Loss Assessed under IFRS 9	Difference of Impairment Loss under Regulations	Difference of Impairment Loss under Regulations		Total
Balance at January 1, 2025 Reconciliation from financial instruments recognized at the beginning of the year: Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs Derecognition of financial assets in current period New financial assets purchased or originated Difference of impairment loss under regulations Write-offs Recovery of written-offs Foreign exchange differences and other changes Balance at December 31, 2025		$ 2,430,196 (18,238) (3,803) 450,082 (1,061,634) 1,291,071 - - - (580,448) $ 2,507,226		$ 1,042,766 113,544 (126,203) (384,387) (161,864) 138,075 - - - 242,928 $ 864,859		$ 1,272,189 (95,306) 130,006 (65,695) (45,630) 109,133 - (172,302) - 43,145 $ 1,175,540		$ 4,745,151 - - - (1,269,128) 1,538,279 - (172,302) - (294,375) $ 4,547,625		$ 2,629,102 - - - - - 372,950 (893,700) 1,340,004 - $ 3,448,356		$ 7,374,253 - - - (1,269,128) 1,538,279 372,950 (1,066,002) 1,340,004 (294,375) $ 7,995,981

2024

		12-month ECLs	Lifetime ECL	Lifetime ECL		Credit- impaired Financial Assets	Impairment Loss Assessed under IFRS 9	Impairment Loss Assessed under IFRS 9	Difference of Impairment Loss under Regulations	Difference of Impairment Loss under Regulations		Total
Balance at January 1, 2024 Reconciliation from financial instruments recognized at the beginning of the year: Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs Derecognition of financial assets in current period New financial assets purchased or originated Difference of impairment loss under regulations Write-offs Recovery of written-offs Foreign exchange differences and other changes Balance at December 31, 2024		$ 2,144,409 (16,083) (1,943) 113,715 (1,030,459) 1,434,693 - - - (214,136) $ 2,430,196		$ 963,707 17,369 (82,389) (109,065) (194,522) 141,397 - - - 306,269 $ 1,042,766		$ 1,464,248 (1,286) 84,332 (4,650) (127,649) 25,287 - (240,318) - 72,225 $ 1,272,189		$ 4,572,364 - - - (1,352,630) 1,601,377 - (240,318) - 164,358 $ 4,745,151		$ 2,708,150 - - - - - 302,479 (1,373,192) 991,665 - $ 2,629,102		$ 7,280,514 - - - (1,352,630) 1,601,377 302,479 (1,613,510) 991,665 164,358 $ 7,374,253

• 36 -

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD, NET

Investments in subsidiaries Investments in associates		December 31	December 31
		2025 $ 7,182,117 192,271 $ 7,374,388	2024 $ 6,748,673 192,853 $ 6,941,526

a. Investments in subsidiaries

The following table shows the Bank’s proportion of ownership and voting right of subsidiaries at the end of reporting date:

Domestic non-listed (cabinet) companies Taichung Bank Leasing Corporation Limited Taichung Bank Insurance Brokers Co., Ltd. Taichung Bank Securities Co., Ltd.		December 31	December 31	December 31
		2025 Proportion of Ownership Amount (%) $ 3,519,903 100.00 1,417,246 100.00 2,244,968 100.00 $ 7,182,117		2024
				Proportion of Ownership Amount (%) $ 3,229,241 100.00 1,296,326 100.00 2,223,106 100.00 $ 6,748,673

Detail of share of profit of subsidiaries for using the equity method was as follows:

Investee Company Taichung Bank Leasing Corporation Limited Taichung Bank Insurance Brokers Co., Ltd. Taichung Bank Securities Co., Ltd.	For the Year Ended	For the Year Ended	December 31
		2025 $ 288,110 526,245 43,749 $ 858,104	2024 $ 223,711 437,024 314,347 $ 975,082

• 37 -

b. Investments in associates

The following table shows the Bank’s proportion of ownership and voting right of associates at the end of reporting date:

Associates that are not individually material Taichung Bank Securities Investment Trust Co. Ltd.		December 31	December 31	December 31
		2025 Proportion of Ownership Amount (%) $ 192,271 38.46		2024
				Proportion of Ownership Amount (%) $ 192,853 38.46

Detail of share of loss of associates for using the equity method was as follows:

Investee Company Taichung Bank Securities Investment Trust Co., Ltd.	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ (1,834)	2024 $ (2,840)

Investment was accounted for using the equity method and the share of profit (loss) of the investment was calculated based on financial statements which have been audited.

The Bank is the single largest shareholder of Taichung Bank Securities Investment Trust Co., Ltd. with 38.46% interest in the investee, in which the remaining interest is held by several other shareholders. The Bank considered the absolute size of its holding, and the relative size and dispersion of the other shareholdings in Taichung Bank Securities Investment Trust Co., Ltd. and concluded that it does not have control over Taichung Bank Securities Investment Trust Co., Ltd. The management of the Bank considered the Bank as exercising significant influence over Taichung Bank Securities Investment Trust Co., Ltd. and, therefore, classified Taichung Bank Securities Investment Trust Co., Ltd. as associate of the Bank.

15. OTHER FINANCIAL ASSETS, NET

Other delinquent receivables, net Other delinquent receivables, net were as follows: Delinquent receivables not from loans Less: Allowance for doubtful accounts (Note 12)		December	31
		2025 $ 3,888 December	2024 $ 3,517 31
		2025 $ 40,044 (36,156) $ 3,888	2024 $ 5,299 (1,782) $ 3,517

• 38 -

16. PROPERTIES AND EQUIPMENT, NET

Cost Balance at January 1, 2025 Additions Disposals Reclassifications Exchange differences, net Balance at December 31, 2025 Accumulated depreciation Balance at January 1, 2025 Additions Disposals Exchange differences, net Balance at December 31, 2025 Impairment Balance at January 1, 2025 Balance at December 31, 2025 Balance at December 31, 2025 Cost Balance at January 1, 2024 Additions Disposals Reclassifications Exchange differences, net Balance at December 31, 2024 Accumulated depreciation Balance at January 1, 2024 Additions Disposals Exchange differences, net Balance at December 31, 2024 Impairment Balance at January 1, 2024 Balance at December 31, 2024 Balance at December 31, 2024				2025
		Land $ 7,859,148 - - - - 7,859,148 - - - - - 77,000 77,000 $ 7,782,148	Building and Structures Transportation Equipment $ 2,281,781 $ 52,803 41,913 14,830 - (5,034 ) - - - (24) 2,323,694 62,575 1,434,567 43,171 69,077 6,056 - (5,028 ) - (17) 1,503,644 44,182 - - - - $ 820,050 $ 18,393	Miscellaneous Equipment $ 2,093,881 144,484 (198,850 ) 2,277 (539) 2,041,253 1,719,127 120,325 (198,792 ) (437) 1,640,223 - - $ 401,030 2024	Lease Improvements $ 108,239 53,299 - - (295) 161,243 39,107 26,100 - (232) 64,975 - - $ 96,268	Construction in Progress $ 9,649,517 1,685,102 - (2,277 ) (18) 11,332,324 - - - - - - - $ 11,332,324	Total $ 22,045,369 1,939,628 (203,884 ) - (876) 23,780,237 3,235,972 221,558 (203,820 ) (686) 3,253,024 77,000 77,000 $ 20,450,213
		Land $ 7,859,148 - - - - 7,859,148 - - - - - 77,000 77,000 $ 7,782,148	Building and Structures Transportation Equipment $ 2,232,409 $ 55,023 49,372 3,948 - (6,206 ) - - - 38 2,281,781 52,803 1,369,659 43,632 64,908 5,724 - (6,206 ) - 21 1,434,567 43,171 - - - - $ 847,214 $ 9,632	Miscellaneous Equipment $ 1,983,244 171,476 (72,388 ) 10,762 787 2,093,881 1,671,385 119,428 (72,278 ) 592 1,719,127 - - $ 374,754	Lease Improvements $ 88,929 18,966 - - 344 108,239 17,448 21,465 - 194 39,107 - - $ 69,132	Construction in Progress $ 8,851,587 810,328 - (12,398 ) - 9,649,517 - - - - - - - $ 9,649,517	Total $ 21,070,340 1,054,090 (78,594 ) (1,636 ) 1,169 22,045,369 3,102,124 211,525 (78,484 ) 807 3,235,972 77,000 77,000 $ 18,732,397

The above items of property and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Building and structures Building 30 to 60 years Renovation 5 to 20 years Transportation equipment 3 to 5 years Miscellaneous equipment 2 to 15 years Lease improvements 2 to 5 years

• 39 -

17. LEASE ARRANGEMENTS

a. Right-of-use assets, net

Carrying amount Land and buildings Transportation equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Land and buildings Transportation equipment Income from the subleasing of right-of-use assets (presented in other income)		**December 31 **	**December 31 **	**December 31 **
	2025 2024 $ 899,892 $ 1,093,341 16,579 23,697 $ 916,471 $ 1,117,038 For the Year Ended December 31
			2025 $ 29,539 $ 164,474 8,841 $ 173,315 $ 1,776	2024 $ 433,062 $ 155,132 15,094 $ 170,226 $ 1,581

The Bank suspended the leases of some land and buildings and transportation equipment before the leases expired. The amount of right-of-use assets derecognized was $57,282 thousand and $105,628 thousand for the years ended December 31, 2025 and 2024, respectively. The disposal gain of $2,636 thousand and $9,364 thousand was recognized for the years ended December 31, 2025 and 2024.

Except for the aforementioned suspension and addition and recognized depreciation, the Bank did not have significant sublease or impairment of right-of-use assets for the years ended December 31, 2025 and 2024.

b. Lease liabilities

Carrying amount Range of discount rates for lease liabilities was as follows:		**December 31 **	**December 31 **
		2025 $ 952,627	2024 $ 1,145,320

Land Buildings Transportation equipment	December 31
	2025 2024 1.20%-4.50% 1.20%-4.14% 1.20%-4.50% 1.20%-4.14% 1.20%-4.50% 1.20%

• 40 -

c. Material lease-in activities and terms

The Bank leases domestic offices, ATM sites and transportation equipment with lease terms of 1 to 15 years. The lease contract specifies that lease payments will be adjusted on the basis of changes in market rental rates. The Bank does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms.

d. Other lease information

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases	For the Year Ended	For the Year Ended	December 31
		2025 $ 1,304 $ 10,359 $ (191,153)	2024 $ 4,888 $ 10,082 $ (195,502)

The Bank leases certain office equipment under leases which qualify as short-term leases and certain computer equipment under leases which qualify as low-value asset leases. The Bank has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

18. INTANGIBLE ASSETS, NET

Computer software Patents and trademarks Balance at January 1 Additions Amortization Reclassification Exchange differences, net Balance at December 31		December 31	December 31
	2025 $ 492,726 628 $ 493,354 **For the Year Ended **		2024 $ 258,504 168 $ 258,672 **December 31 **
		2025 $ 258,672 368,924 (134,238) - (4) $ 493,354	2024 $ 196,045 141,020 (80,036) 1,636 7 $ 258,672

Computer software is amortized on a straight-line basis over its estimated useful lives as follows:

Computer software 3 to 5 years Patents and trademarks 10 years

• 41 -

19. OTHER ASSETS, NET

Refundable deposits Prepayments Others		December 31	December 31
		2025 $ 2,820,669 238,696 1,504 $ 3,060,869	2024 $ 2,256,845 405,998 34,268 $ 2,697,111

As of December 31, 2025 and 2024, the government bonds at amortized cost which amounted to $550,500 thousand, were pledged as collateral to the district court for litigation related to the overdraft of the U.S. dollar clearing account. These amounts were stated classified under refundable deposits. Refer to Note 34.

20. DUE TO THE CENTRAL BANK AND OTHER BANKS

Call loans from banks Due to Chunghwa Post Co., Ltd. Due to banks		**December 31 **	**December 31 **
		2025 $ 7,342,930 7,512,701 1,312 $ 14,856,943	2024 $ 19,637,260 12,700 1,255 $ 19,651,215

21. SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

Government bonds Foreign bonds		December 31	December 31
		2025 $ 500,254 9,668,439 $ 10,168,693	2024 $ 810,000 12,034,223 $ 12,844,223

Foreign bonds denominated in foreign currencies were as follows:

USD AUD	December 31
	2025 2024 $ 158,567 $ 295,537 222,917 115,027

• 42 -

The details of repurchase price and interest rate at the end of the period were as follows:

Government bonds Foreign bonds Government bonds Foreign bonds		December 31	December 31
		2025 $ 501,388 9,740,557 $ 10,241,945 1.34%-1.35% 3.71%-4.17%	2024 $ 811,062 12,160,479 $ 12,971,541 1.46%-1.48% 4.58%-5.46%

22. PAYABLES

Accrued expenses Interest payable Notes and checks in clearing Acceptances payables Collections payable Securities settlement payable Foreign currency settlement payable Factored accounts payable Other payables		**December 31 **	**December 31 **
		2025 $ 2,257,519 1,329,445 961,600 509,781 81,069 73,210 22,873 12,031 888,204 $ 6,135,732	2024 $ 2,063,917 1,232,598 905,423 721,255 78,823 - 17,233 19,398 767,946 $ 5,806,593

23. DEPOSITS AND REMITTANCES

Demand Demand savings Time Time savings Checking Remittances		December 31	December 31
		2025 $ 219,049,434 168,886,302 233,783,882 212,615,215 10,881,493 72,343 $ 845,288,669	2024 $ 212,302,891 168,444,319 195,426,833 222,072,094 10,451,323 30,882 $ 808,728,342

24. BANK DEBENTURES

Subordinated financial debenture		December 31	December 31
		2025 $ 15,150,000	2024 $ 13,500,000

• 43 -

• a. The Bank issued first subordinated financial debenture on December 28, 2015, which was approved under ruling reference No. 10400200460 issued by the Banking Bureau of the FSC on August 26, 2015. Details of the subordinated financial debenture’s issuance are summarized as follows:

• 1) Total approved principal: $1,500,000 thousand.

• 2) Principal issued: $1,500,000 thousand. The principal was recovered in full through a forced redemption on July 2, 2024.

• 3) Denomination: $10,000 thousand, issued at par.

• 4) Period: No due date.

• 5) Nominal interest rate: According to the interest rate of one-year time savings deposit of Chunghwa Post Co., Ltd., plus 3.08%.

• 6) Repayment: To be executed according to the issuance.

• 7) The interest will be paid annually from the issuance date.

• b. The Bank issued first no due date non-cumulative subordinated financial debenture, second no due date non-cumulative subordinated financial debenture, third no due date non-cumulative subordinated financial debenture and first no due date non-cumulative subordinated financial debenture on March 28, 2017, May 18, 2017, August 28, 2017 and December 28, 2016, respectively, which were approved under ruling reference No. 10500210950 issued by the Banking Bureau of the FSC on September 2, 2016. Details of the subordinated financial debenture’s issuance are summarized as follows:

• 1) Total approved principal: $3,500,000 thousand.

• 2) Principal issued:

  • a) Debenture I in 2016: $1,500,000 thousand. The principal was recovered in full through a forced redemption on July 2, 2024.

  • b) Debenture I in 2017: $1,000,000 thousand. The principal was recovered in full through a forced redemption on December 3, 2025.

  • c) Debenture II in 2017: $500,000 thousand. The principal was recovered in full through a forced redemption on December 3, 2025.

  • d) Debenture III in 2017: $500,000 thousand. The principal was recovered in full through a forced redemption on December 3, 2025.

3) Denomination:

• a) Debenture I in 2016: $10,000 thousand, issued at par.

• b) Debenture I in 2017: $10,000 thousand, issued at par.

• c) Debenture II in 2017: $10,000 thousand, issued at par.

• d) Debenture III in 2017: $10,000 thousand, issued at par.

• 4) Period: No due date.

• 44 -

• 5) Nominal interest rate: According to the interest rate of one-year time savings deposit of Chunghwa Post Co., Ltd., plus 3.08%.

• 6) Repayment: To be executed according to the issuance.

• 7) The interest will be paid annually from the issuance date.

• c. The Bank issued first no due date non-cumulative subordinated financial debenture, fourth no due date non-cumulative subordinated financial debenture and fifth no due date non-cumulative subordinated financial debenture on April 25, 2018, December 5, 2017 and December 27, 2017, respectively, which were approved under ruling reference No. 10600229120 issued by the Banking Bureau of the FSC on September 22, 2017. Details of the subordinated financial debenture’s issuance are summarized as follows:

• 1) Total approved principal: $5,000,000 thousand.

• 2) Principal issued:

  • a) Debenture IV in 2017: $1,350,000 thousand. The principal was recovered in full through a forced redemption on September 24, 2025.

  • b) Debenture V in 2017: $2,650,000 thousand.

  • c) Debenture I in 2018: $1,000,000 thousand.

• 3) Denomination:

  • a) Debenture IV in 2017: $10,000 thousand, issued at par.

  • b) Debenture V in 2017: $10,000 thousand, issued at par.

  • c) Debenture I in 2018: $10,000 thousand, issued at par.

• 4) Period: No due date.

• 5) Nominal interest rate: According to the interest rate of one-year time savings deposit of Chunghwa Post Co., Ltd., plus 3.08%.

• 6) Repayment: To be executed according to the issuance.

• 7) The interest will be paid annually from the issuance date.

• d. The Bank issued second no due date non-cumulative subordinated financial debenture on December 18, 2018, which was approved under ruling reference No. 10702156550 issued by the Banking Bureau of the FSC on August 23, 2018. Details of the subordinated financial debenture issuance is summarized as follows:

• 1) Total approved principal: $1,500,000 thousand.

• 2) Principal issued: $1,500,000 thousand.

• 3) Denomination: $10,000 thousand, issued at par.

• 4) Period: No due date.

• 45 -

• 5) Nominal interest rate: According to the interest rate of one-year time savings deposit of Chunghwa Post Co., Ltd., plus 3.08%.

• 6) Repayment: To be executed according to the issuance.

• 7) The interest will be paid annually from the issuance date.

• e. The Bank issued first subordinated financial debenture on December 27, 2021, which was approved under ruling reference No. 1100226929 issued by the Banking Bureau of the FSC on October 12, 2021. Detail of the subordinated financial debenture issuance is summarized as follows:

• 1) Total approved principal: $5,000,000 thousand.

• 2) Principal issued: $5,000,000 thousand.

• 3) Denomination: $10,000 thousand, issued at par.

• 4) Period: 7 years with maturities on December 27, 2028.

• 5) Nominal interest rate: Fixed interest, 1.2%.

• 6) Repayment: The subordinated financial debenture will be paid on the maturity date.

• 7) The interest will be paid annually from the issuance date.

• f. The Bank issued first no due date non-cumulative subordinated financial debenture and second no due date non-cumulative subordinated financial debenture on August 26, 2025 and October 29, 2025, respectively, which were approved under ruling reference No. 1140219594 issued by the Banking Bureau of the FSC on July 7, 2025. Details of the subordinated financial debenture’s issuance are summarized as follows:

• 1) Total approved principal: $5,000,000 thousand.

• 2) Principal issued:

  • a) Debenture I in 2025: $2,500,000 thousand.

  • b) Debenture II in 2025: $2,500,000 thousand.

• 3) Denomination:

  • a) Debenture I in 2025: $10,000 thousand, issued at par.

  • b) Debenture II in 2025: $10,000 thousand, issued at par.

• 4) Period: No due date.

• 5) Nominal interest rate: According to the interest rate of one-year time savings deposit of Chunghwa Post Co., Ltd., plus 2.815%.

• 6) Repayment: To be executed according to the issuance.

• 7) The interest will be paid annually July 1 and December 16 from the issuance date.

• 46 -

25. OTHER FINANCIAL LIABILITIES

Structured commodity principal		December 31	December 31
		2025 $ 6,190,692	2024 $ 4,131,841

26. PROVISIONS

Provision for employee benefits Provision for losses on guarantees Provision for loan commitments Provision for outstanding loss Other provision		December 31	December 31
		2025 $ 710,239 459,863 171,721 39,090 11,070 $ 1,391,983	2024 $ 695,529 385,263 141,430 34,090 13,155 $ 1,269,467

a. Details of provision for employee benefits were as follows:

Benefit plans Preferential interest on employees’ deposits Other long-term employee benefit liabilities		**December 31 **	**December 31 **
		2025 $ 510,768 179,462 20,009 $ 710,239	2024 $ 482,186 170,235 43,108 $ 695,529

1) Defined contribution plans

The Bank adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

The amounts of contributions paid by the Bank in 2025 and 2024 in accordance with the defined contribution plan and recognized in the statements of comprehensive income were $108,990 thousand and $105,695 thousand for the years ended December 31, 2025 and 2024, respectively.

2) Defined benefit plans

The defined benefit plan adopted of the Bank in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Bank contributes amounts equal to 10% of total monthly salaries and wages of general employees that applicable to old seniority personnel (excluding appointed managers) to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Bank assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Bank is required to fund the difference in one appropriation that should be made before the end of March of the next year.

• 47 -

The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Bank has no right to influence the investment policy and strategy.

The amounts included in the balance sheets in respect of the Bank’s defined benefit plans were as follows:

Present value of defined benefit obligation Fair value of plan assets Deficit Net defined benefit liabilities		**December 31 **	**December 31 **
		2025 $ 1,629,788 (1,119,020) 510,768 $ 510,768	2024 $ 1,518,860 (1,036,674) 482,186 $ 482,186

Movements in net defined benefit liabilities were as follows:

Present Value of the Defined Benefit Obligation Fair Value of the Plan Assets Balance at January 1, 2024 $ 1,563,251 $ (933,956) Service cost Current service cost 2,751 - Net interest expense (income) 19,541 (12,035) Recognized in profit or loss 22,292 (12,035) Remeasurement Return on plan assets (excluding amounts included in net interest) - (83,601) Actuarial gain - changes in financial assumptions (28,782) - Actuarial loss - experience adjustments 46,430 - Recognized in other comprehensive income 17,648 (83,601) Contributions from the employer - (53,957) Benefits paid (46,875) 46,875 Company paid (37,456) - Balance at December 31, 2024 1,518,860 (1,036,674) Service cost Current service cost 1,666 - Net interest expense (income) 22,783 (15,961) Recognized in profit or loss 24,449 (15,961) Remeasurement Return on plan assets (excluding amounts included in net interest) - (72,327) Actuarial loss - changes in financial assumptions 55,661 - Actuarial loss - experience adjustments 130,419 - Recognized in other comprehensive income 186,080 (72,327) Contributions from the employer - (51,589) Benefits paid (57,531) 57,531 Company paid (42,070) - Balance at December 31, 2025 $ 1,629,788 $ (1,119,020)

Net Defined Benefit Liabilities $ 629,295 2,751 7,506 10,257 (83,601) (28,782) 46,430 (65,953) (53,957) - (37,456) 482,186 1,666 6,822 8,488 (72,327) 55,661 130,419 113,753 (51,589) - (42,070) $ 510,768

• 48 -

An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans was as follows:

Operating expenses	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2025 $ 8,488	2024 $ 10,257

Through the defined benefit plans under the Labor Standards Act, the Bank is exposed to the following risks:

• a) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

• b) Interest risk: A decrease in the government or corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.

• c) Salary risk: The present value of the defined benefit obligation is calculated using the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

Discount rate(s) Expected rate(s) of salary increase	December 31
	2025 2024 1.25% 1.50% 1.75% 1.50%

If possible reasonable change in each of the significant actuarial assumptions occurs and all other assumptions remain constant, the present value of the defined benefit obligation will increase (decrease) as follows:

Discount rate(s) 0.25% increase 0.25% decrease Expected rate(s) of salary increase 0.25% increase 0.25% decrease		December	31
		2025 $ (28,391) $ 29,118 $ 28,473 $ (27,902)	2024 $ (29,058) $ 29,849 $ 29,306 $ (28,671)

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

• 49 -

Expected contributions to the plan for the next year Average duration of the defined benefit obligation		**December **	**31 **
		2025 $ 52,492 7.1 years	2024 $ 54,767 7.7 years

3) Preferential interest on employees’ deposits plan

The Bank had revised the interest rate of the employees’ savings deposit since December 21, 2014, in accordance with the regulations of the Financial Management Law No. 10110000850 and the Regulations Governing the Preparation of Financial Reports by Public Banks, and the preferential interest on employee’s deposit liabilities were carried out by qualified actuaries.

The amounts included in the balance sheets in respect of the preferential interest on employee’s deposit plan were as follows:

Present value of the preferential interest on deposits Fair value of plan assets Deficit Provision for preferential interest on deposits		**December 31 **	**December 31 **
		2025 $ 179,462 - 179,462 $ 179,462	2024 $ 170,235 - 170,235 $ 170,235

Movements in preferential interest on employees’ deposits obligation were as follows:

	Present Value
	of the
	Preferential			Net Preferential
	Interest on			Interest on
	Employees’			Employees’
	Deposits	Fair Value of		Deposits
	Obligation	the Plan Assets		Liabilities
Balance at January 1, 2024	$ 162,038	$	-	$ 162,038
Service cost
Past service cost	11,489		-	11,489
Net interest expense	5,724		-	5,724
Recognized in profit or loss	17,213		-	17,213
Remeasurement
Actuarial loss - experience adjustments	31,870		-	31,870
Recognized in other comprehensive
income	31,870		-	31,870
Company paid	(40,886)		-	(40,886)
Balance at December 31, 2024	170,235		-	170,235
Service cost
Past service cost	8,091		-	8,091
Net interest expense	5,992		-	5,992
Recognized in profit or loss	14,083		-	14,083
				(Continued)

• 50 -

	Present Value
	of the
	Preferential			Net	Preferential
	Interest on			Interest on
	Employees’			Employees’
	Deposits	Fair Value of		Deposits
	Obligation	the Plan Assets		Liabilities
Remeasurement
Actuarial loss - experience adjustments	$ 33,185	$	-	$	33,185
Actuarial loss - changes in
demographic assumptions	4,674		-		4,674
Recognized in other comprehensive
income	37,859		-		37,859
Company paid	(42,715)		-		(42,715)
Balance at December 31, 2025	$ 179,462	$	-	$	179,462
					(Concluded)

An analysis by function of the amounts recognized in profit or loss in respect of the preferential interest on employees’ deposits plan was as follows:

Operating expenses	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 14,083	2024 $ 17,213

The actuarial valuations of the present value of preferential interest on employees’ deposits obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

Discount rate(s) Expected return on employees’ deposits Excess interest rate Preferential deposit withdrawal rate	December 31
	2025 2024 4.00% 4.00% 2.00% 2.00% 2.00% 2.00% 3.00% 3.25%

If possible reasonable change in each of the significant actuarial assumptions occurs and all other assumptions remain constant, the present value of preferential interest on employees’ deposits obligation will increase (decrease) as follows:

Discount rate(s) 0.25% increase 0.25% decrease Preferential deposit withdrawal rate 0.25% increase 0.25% decrease		December	31
		2025 $ (4,355) $ 4,541 $ 4,674 $ (4,863)	2024 $ (4,115) $ 4,291 $ 4,427 $ (4,608)

• 51 -

The sensitivity analysis presented above may not be representative of the actual change in the present value of preferential interest on employees’ deposits obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Expected contributions to the plan for the next year Average duration of preferential interest on employees’ deposits obligation		December	31
		2025 $ - 10.3 years	2024 $ - 10.3 years

• 4) Other long-term employee benefit liabilities

Other long-term employee benefits of the Bank are long-term disability benefits. If the employee does not encounter any casualty due to occupational disaster or accidental death, the Bank will pay the pension according to the seniority.

The amounts of total (reversal of impairment losses) expense recognized by the Bank in the statements of comprehensive income for long-term employee benefits in 2025 and 2024 were $(22,715) thousand and $2,786 thousand, respectively. As of December 31, 2025 and 2024, other long-term employee benefit liabilities were $20,009 thousand and $43,108 thousand, respectively.

• b. Movements of the provision for losses on guarantees were as follows:

2025

		12-month ECLs	Lifetime ECL	Lifetime ECL		Credit- impaired Financial Assets	Impairment Loss Assessed under IFRS 9	Impairment Loss Assessed under IFRS 9	Difference of Impairment Loss under Regulations	Difference of Impairment Loss under Regulations		Total
Balance at January 1, 2025 Reconciliation from financial instruments recognized at the beginning of the year: Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs Derecognition of financial assets in current period New financial assets purchased or originated Difference of impairment loss under regulations Foreign exchange differences and other changes Balance at December 31, 2025		$ 311,902 (1,427) (18) 1,767 (133,416) 169,192 - (10,938) $ 337,062		$ 4,238 1,427 - (1,767) (2,275) 4,708 - 22,991 $ 29,322		$ 28,807 - 18 - (507) - - 2,105 $ 30,423		$ 344,947 - - - (136,198) 173,900 - 14,158 $ 396,807		$ 40,316 - - - - - 22,740 - $ 63,056		$ 385,263 - - - (136,198) 173,900 22,740 14,158 $ 459,863

• 52 -

2024

		12-month ECLs	Lifetime ECL	Lifetime ECL		Credit- impaired Financial Assets	Impairment Loss Assessed under IFRS 9	Impairment Loss Assessed under IFRS 9	Difference of Impairment Loss under Regulations	Difference of Impairment Loss under Regulations		Total
Balance at January 1, 2024 Reconciliation from financial instruments recognized at the beginning of the year: Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs Derecognition of financial assets in current period New financial assets purchased or originated Difference of impairment loss under regulations Foreign exchange differences and other changes Balance at December 31, 2024		$ 217,243 (142) - 1,438 (122,761) 230,166 - (14,042) $ 311,902		$ 5,638 142 - (1,438) (3,037) 1,576 - 1,357 $ 4,238		$ 37,095 - - - (8,114) - - (174) $ 28,807		$ 259,976 - - - (133,912) 231,742 - (12,859) $ 344,947		$ 47,287 - - - - - (6,971) - $ 40,316		$ 307,263 - - - (133,912) 231,742 (6,971) (12,859) $ 385,263

In 2025 and 2024, a provision was recognized for bad debts expense, commitments and guarantees.

• c. Movements of the other provision were as follows:

2025

		12-month ECLs	Lifetime ECL	Lifetime ECL		Credit- impaired Financial Assets	Impairment Loss Assessed under IFRS 9	Impairment Loss Assessed under IFRS 9	Difference of Impairment Loss under Regulations	Difference of Impairment Loss under Regulations		Total
Balance at January 1, 2025 Reconciliation from financial instruments recognized at the beginning of the year: Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs Derecognition of financial assets in current period New financial assets purchased or originated Difference of impairment loss under regulations Foreign exchange differences and other changes Balance at December 31, 2025		$ 9,545 - - - (9,545) 8,678 - - $ 8,678		$ - - - - - - - - $ -		$ - - - - - - - - $ -		$ 9,545 - - - (9,545) 8,678 - - $ 8,678		$ 3,610 - - - - - (1,218) - $ 2,392		$ 13,155 - - - (9,545) 8,678 (1,218) - $ 11,070

• 53 -

2024

		12-month ECLs	Lifetime ECL	Lifetime ECL		Credit- impaired Financial Assets	Impairment Loss Assessed under IFRS 9	Impairment Loss Assessed under IFRS 9	Difference of Impairment Loss under Regulations	Difference of Impairment Loss under Regulations		Total
Balance at January 1, 2024 Reconciliation from financial instruments recognized at the beginning of the year: Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs Derecognition of financial assets in current period New financial assets purchased or originated Difference of impairment loss under regulations Foreign exchange differences and other changes Balance at December 31, 2024		$ 9,815 - - - (9,815) 9,545 - - $ 9,545		$ - - - - - - - - $ -		$ - - - - - - - - $ -		$ 9,815 - - - (9,815) 9,545 - - $ 9,545		$ 3,208 - - - - - 402 - $ 3,610		$ 13,023 - - - (9,815) 9,545 402 - $ 13,155

In 2025 and 2024, a provision was recognized for bad debts expense, commitments and guarantees.

• d. Movements of the loan commitments were as follows:

2025

		12-month ECLs	Lifetime ECL	Lifetime ECL		Credit- impaired Financial Assets	Impairment Loss Assessed under IFRS 9	Impairment Loss Assessed under IFRS 9	Difference of Impairment Loss under Regulations	Difference of Impairment Loss under Regulations		Total
Balance at January 1, 2025 Reconciliation from financial instruments recognized at the beginning of the year: Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs Derecognition of financial assets in current period New financial assets purchased or originated Difference of impairment loss under regulations Foreign exchange differences and other changes Balance at December 31, 2025		$ 133,774 (7) (3) 1,926 (113,346) 142,059 - (2,243) $ 162,160		$ 2,053 7 (11) (1,926) (59) 1,160 - 245 $ 1,469		$ - - 14 - - - - (14) $ -		$ 135,827 - - - (113,405) 143,219 - (2,012) $ 163,629		$ 5,603 - - - - - 2,489 - $ 8,092		$ 141,430 - - - (113,405) 143,219 2,489 (2,012) $ 171,721

• 54 -

2024

		12-month ECLs	Lifetime ECL	Lifetime ECL		Credit- impaired Financial Assets	Impairment Loss Assessed under IFRS 9	Impairment Loss Assessed under IFRS 9	Difference of Impairment Loss under Regulations	Difference of Impairment Loss under Regulations		Total
Balance at January 1, 2024 Reconciliation from financial instruments recognized at the beginning of the year: Transfers to lifetime ECL Transfers to credit-impaired financial assets Transfers to 12-month ECLs Derecognition of financial assets in current period New financial assets purchased or originated Difference of impairment loss under regulations Foreign exchange differences and other changes Balance at December 31, 2024		$ 114,706 (9) (3) 1,835 (26,737) 46,513 - (2,531) $ 133,774		$ 1,902 9 (10) (1,835) (75) 1,586 - 476 $ 2,053		$ 10,239 - 13 - (10,239) - - (13) $ -		$ 126,847 - - - (37,051) 48,099 - (2,068) $ 135,827		$ 9,195 - - - - - (3,592) - $ 5,603		$ 136,042 - - - (37,051) 48,099 (3,592) (2,068) $ 141,430

In 2025 and 2024, a provision was recognized for bad debts expense, commitments and guarantees.

• e. Outstanding loss provision were as follows:

Balance, January 1 Recognized Balance, December, 31		**December **	**31 **
		2025 $ 34,090 5,000 $ 39,090	2024 $ 29,090 5,000 $ 34,090

For the years ended December 31, 2025 and 2024, the loss provision of $5,000 thousand was recognized for interest expense, refer to Note 35 for the relevant contingent liabilities.

27. OTHER LIABILITIES

Guarantee deposit received Advance receipts Others		**December 31 **	**December 31 **
		2025 $ 544,555 500,816 1,607 $ 1,046,978	2024 $ 617,798 422,585 1,690 $ 1,042,073

• 55 -

28. EQUITY

• a. Share capital

Ordinary shares

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued		**December 31 **	**December 31 **
		2025 7,770,000 $ 77,700,000 6,021,626 $ 60,216,258	2024 7,770,000 $ 77,700,000 5,518,757 $ 55,187,566

Ordinary shares issued at par value of $10. Each share has one voting right and the right to receive dividends.

As of January 1, 2024, the Bank had issued ordinary shares totaling $52,260,953 thousand, divided into 5,226,095 thousand ordinary shares at par value of $10 per share. In July 2024, the Bank transferred $2,926,613 thousand of unappropriated earnings to ordinary shares, consisting of 292,662 thousand ordinary shares at par value of $10 per share. As of December 31, 2024, the Bank had increased ordinary shares to $55,187,566 thousand, divided into 5,518,757 thousand ordinary shares at par value of $10 per share.

In August 2025, the Bank transferred $4,028,692 thousand of unappropriated earnings to ordinary shares, consisting of 402,869 thousand ordinary shares at par value of $10 per share, In June 2025, the board of directors of the Bank resolved to issue 100,000 thousand ordinary shares. Each share has a par value of $10 and an issue price of $18.90. On September 26, 2025, the above transaction was approved under ruling reference No. 1140358523 issued by the Banking Bureau of the FSC and the subscription base date was determined as at December 12, 2025. As of December 31, 2025, the Bank had increased ordinary shares to $60,216,258 thousand, consisting of 6,021,626 thousand ordinary shares at par value of $10 per share.

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital* Issuance of ordinary shares Issuance of ordinary shares - employee share options Expired employee share options May be used to offset a deficit only Share of changes in capital surplus of associates Conversion of bank debentures’ components		December 31	December 31
		2025 $ 2,271,133 165,200 7,031 16,813 7,729 $ 2,467,906	2024 $ 1,381,133 115,707 6,874 16,813 7,729 $ 1,528,256

• Such capital surplus may be used to offset a deficit; in addition, when the Bank has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Bank’s capital surplus and to once a year).

• 56 -

• c. Appropriation of earnings and dividend policy

Under the Bank’s dividends policy as set forth in the Articles, where the Bank made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve of 30% of the remaining profit, however, provided that the legal reserve amounts to the total paid-in capital, the legal reserve need not be set aside, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Bank’s board of directors as the basis for proposing a distribution plan, which should be admitted in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of employees’ compensation and remuneration of directors, refer to employees’ compensation and remuneration of directors in Note 29.

The appropriation of earnings mentioned above shall be retained by the board of directors in accordance with the changing operating environment, operating and investment needs. When dividends are declared, cash dividends must be at least 10% of total dividends declared.

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Bank’s paid-in capital. The legal reserve may be used to offset deficits. If the Bank has no deficit and the legal reserve has exceeded 25% of the Bank’s paid-in capital, the excess may be transferred to capital or distributed in cash.

In addition, the Banking Law limits the appropriation of cash dividends to 15% of the Bank’s paid-in capital. But when the legal reserve equals the Bank’s paid-in capital, this 15% limit may be waived. If the ratio of own capital to risk assets does not meet the standards set by the business authority, the appropriation of earnings in cash or other assets should be subject to the restrictions or prohibitions of the relevant provisions of the business authority.

Under related regulations, a special reserve is appropriated from the balance of the retained earnings at an amount from the net income and unappropriated earnings that is equal to the debit balance of accounts in the shareholders’ equity section. Afterward, if there is any reversal of the decrease in shareholders’ equity, the Bank is allowed to appropriate retained earnings from the reversed amount.

According to Order No. 1090150022 issued by the FSC, Order No. 10901500221 issued by the FSC and International Financial Reporting Standards and “Q&A on the application of the reference to the special reserve following adoption of IFRS Accounting Standards”, retained earnings should be appropriated to or reversed from a special reserve by the Bank. Afterward, if there is any reversal of the decrease in other shareholders’ equity, the Bank is allowed to appropriate retained earnings from the reversal amount. According to Order No. 10510001510 issued by the FSC, a special reserve should be appropriated between 0.5% and 1% of net income after tax when banks appropriate earnings of 2016 through 2018. After that, under No. 10802714560 issued by the FSC, the Bank no longer uses special reserve to protect the right of its employee in response to the developments of financial technology since 2019. From the fiscal year of 2019, the Bank can reverse the amount of expenditure of employees’ transfer from financial technology development within the amount of the abovementioned special reserve from 2016 to 2018.

• 57 -

The appropriations of earnings for 2024 and 2023 were approved in the shareholders’ meetings of the Bank on May 29, 2025 and May 24, 2024, respectively, as follows:

Legal reserve Reverse a special reserve Cash dividends Share dividends	Appropriation of Earnings 2024 2023 $ 2,647,534 $ 2,080,035 (786) (160,454) 2,152,315 2,090,438 4,028,692 2,926,613	Dividends Per Share (NT$)
		2024 2023 $ - $ - - - 0.39 0.40 0.73 0.56

The appropriations of earnings for 2025 which had been proposed by the Bank’s board of directors on March 5, 2026 were as follows:

	Appropriation	Dividends Per	Dividends Per
	of Earnings	Share	(NT$)
Legal reserve	$ 2,730,449	$	-
Reverse a special reserve	(779)		-
Cash dividends	2,348,434		0.39
Share dividends	4,034,489		0.67

The appropriations of earnings for 2025 are subject to the resolution of the shareholders’ meeting to be held on May 27, 2026.

d. Other equity items

Exchange Differences on Translation of the Financial Statements of Foreign Operations Unrealized (Losses) Gains on Financial Assets at FVTOCI Balance at January 1, 2025 $ (7,413) $ 545,994 Recognized for the year Unrealized gains (losses) Equity instruments - 423,722 Debt instruments - 559,529 Net remeasurement of loss allowance - debt instruments - (1,409) Share from subsidiaries and associates accounted for using the equity method 2,552 843 Cumulative unrealized gain of equity instruments transferred to retained earnings due to disposal - (175,637) Cumulative translation adjustment Exchange differences for current period (32,705) - Income tax related to other comprehensive income - (7,660) Balance at December 31, 2025 $ (37,566) $ 1,345,382

Total $ 538,581 423,722 559,529 (1,409) 3,395 (175,637) (32,705) (7,660) $ 1,307,816

(Continued)

• 58 -

Exchange Differences on Translation of the Financial Statements of Foreign Operations Unrealized (Losses) Gains on Financial Assets at FVTOCI Balance at January 1, 2024 $ (91,150) $ 1,788,007 Recognized for the year Unrealized gains (losses) Equity instruments - 1,009,858 Debt instruments - (1,799,979) Net remeasurement of loss allowance - debt instruments - 11,138 Share from subsidiaries and associates accounted for using the equity method 36,017 65,349 Cumulative unrealized gain of equity instruments transferred to retained earnings due to disposal - (504,139) Cumulative translation adjustment Exchange differences for current period 47,720 - Income tax related to other comprehensive income - (24,240) Balance at December 31, 2024 $ (7,413) $ 545,994

Total $ 1,696,857 1,009,858 (1,799,979) 11,138 101,366 (504,139) 47,720 (24,240) $ 538,581 (Concluded)

29. NET PROFIT FROM CONTINUING OPERATIONS

Net profit from continuing operations was attributable to:

a. Net interest

Interest revenue Notes discounted and loans Due from banks and call loans to the other banks Investment in securities Revolving interests of credit cards Accounts receivable factoring without recourse Securities purchased under resale agreements Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 20,538,163 585,096 4,804,162 38,471 19,142 166,925 1,562 26,153,521	2024 $ 18,715,188 563,215 4,398,897 37,962 20,394 137,269 1,445 23,874,370

(Continued)

• 59 -

Interest expense Deposits Due to the Central Bank and other banks Funds borrowed from the Central Bank and other banks Securities sold under repurchase agreements Financial debentures Structured instruments Lease liabilities Others Service fee income, net Service fee income Loans Trust business Guarantee Others Service fee expense Cross-bank transactions Others	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
	2025 2024 $ (12,243,014) $ (10,943,276) (82,433) (215) (295,689) (314,616) (249,132) (386,570) (499,184) (526,029) (230,914) (211,928) (16,715) (19,520) (6,590) (6,002) (13,623,671) (12,408,156) $ 12,529,850 $ 11,466,214 (Concluded) **For the Year Ended December 31 **
		2025 $ 1,350,143 1,516,561 426,963 784,405 4,078,072 (39,362) (147,712) (187,074) $ 3,890,998	2024 $ 1,139,999 1,561,489 355,940 682,240 3,739,668 (37,799) (143,134) (180,933) $ 3,558,735

b. Service fee income, net

The Bank provides custody, trust, investment management and consultancy services to third parties, so the Bank’s activities involve the planning, management and trading decisions of financial instruments. For the trust funds or investment portfolios that are managed and used on behalf of the trustee, the independent accounting reports and preparation of financial statements for internal management purposes are not included in the Bank’s financial statements.

• 60 -

• c. Gain on financial assets and liabilities at fair value through profit or loss

Realized profit and loss Commercial papers Shares Beneficiary certificates Derivative financial instruments Corporate bonds Others Valuation Commercial papers Shares Beneficiary certificates Derivative financial instruments Corporate bonds PEM Group policy assets	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 409,179 37,340 12,576 1,506,349 (117) 1,848 1,967,175 6,154 92,582 82,693 (2,109,020) (819) (96,601) (2,025,011) $ (57,836)	2024 $ 341,128 199,313 11,848 (699,723) 2,805 2,454 (142,175) 7,477 (38,319) 60,098 3,331,711 287 (20,092) 3,341,162 $ 3,198,987

• 1) Realized profit and loss of gain on financial assets and liabilities at fair value through profit or loss include disposal profit (loss) in 2025 and 2024 amounted to $1,242,040 thousand and $(742,263) thousand, dividend revenue amounted to $30,491 thousand and $43,676 thousand and interest revenue amounted to $694,644 thousand and $556,412 thousand, respectively.

• 2) Net income from exchange rate commodities includes realized and unrealized gains and losses on exchange forward contracts, cross-currency options and cross-currency swap. The translation gains or losses included net income from exchange rate commodities when significant assets and liabilities denominated in foreign currencies classified as at FVTPL are not designated for hedging relationship.

• d. Realized gains on financial assets at fair value through other comprehensive income

Dividend income Gain on disposal of bonds	For the Year Ended	For the Year Ended	December 31
		2025 $ 239,056 401,094 $ 640,150	2024 $ 194,843 354,615 $ 549,458

• 61 -

e. (Impairment losses) reversal of impairment losses on financial assets

Investments in debt instruments at FVTOCI Investments in debt instruments at amortized cost Other non-interest gains (losses), net Gains on disposal of properties and equipment Others gains (losses) Provision for bad debts expense, commitments and guarantees Bad debts on receivables Bad debts on notes discounted and loans Losses on guarantees Loan commitments Others Employee benefits expenses Salaries Labor and health insurance Pension expense Remuneration of directors Other employee expenses	For the Year Ended	For the Year Ended	For the Year Ended	December 31
	2025 $ 1,409 711 $ 2,120 For the Year Ended			2024 $ (11,138) 3,061 $ (8,077) December 31
	2025 $ 1,539 25,511 $ 27,050 For the Year Ended			2024 $ 2,809 31,422 $ 34,231 December 31
	2025 $ 43,835 397,746 74,600 31,512 (2,000) $ 545,693 For the Year Ended			2024 $ 199,474 672,238 78,000 3,661 - $ 953,373 December 31
		2025 $ 4,211,330 287,124 117,478 314,980 217,543 $ 5,148,455	2024 $ 3,548,595 256,726 115,952 279,346 263,471 $ 4,464,090

• f. Other non-interest gains (losses), net

• g. Provision for bad debts expense, commitments and guarantees

• h. Employee benefits expenses

• 62 -

• i. Employees’ compensation and remuneration of directors

According to the Articles of Incorporation of the Bank, the Bank accrues employees’ compensation and remuneration of directors at rates of 0.5%-3% and no higher than 2.5%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the Bank has amended its Articles of Incorporation, which was approved at the 2025 shareholders’ meeting to stipulate that 35% of the amount of employee compensation shall be allocated to grassroots employees. The employees’ compensation and the remuneration of directors for the years ended December 31, 2025 and 2024 which were approved by the Bank’s board of directors on March 5, 2026 and February 27, 2025, respectively, were as follows:

Employees’ compensation Remuneration of directors	For the Year Ended December 31	For the Year Ended December 31
	2025 Accrual Rate Amount 0.75% $ 82,487 2.50% 274,958	2024
		Accrual Rate Amount 0.75% $ 75,035 2.50% 250,118

If there is a change in the amounts after the financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There was no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the financial statements for the years ended December 31, 2024 and 2023.

Information on the employees’ compensation and remuneration of directors resolved by the Bank’s board of directors in 2025 and 2024 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

• j. Depreciation and amortization expenses

Properties and equipment Right-of-use assets Intangible assets	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2025 $ 221,558 173,315 134,238 $ 529,111	2024 $ 211,525 170,226 80,036 $ 461,787

• k. Other selling and administrative expenses

Taxes Professional service Advertisement Insurance Entertainment Donation Postage Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 1,215,638 196,137 54,055 202,392 74,977 124,987 78,992 605,728 $ 2,552,906	2024 $ 1,107,553 151,472 47,645 197,112 67,280 91,039 73,186 611,343 $ 2,346,630

• 63 -

30. INCOME TAXES RELATING TO CONTINUING OPERATIONS

• a. Income tax recognized in profit or loss

Major components of income tax expense were as follows:

Current tax In respect of the current year Adjustments for prior year Deferred tax In respect of the current year Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 1,448,036 (2,053) 137,389 $ 1,583,372	2024 $ 1,507,112 (3,225) (116,180) $ 1,387,707

A reconciliation of accounting profit and income tax expense was as follows:

Profit before tax from continuing operations Income tax expense calculated at the statutory rate Non-deductible expenses in determining taxable income Tax-exempt income Adjustments for prior years’ tax Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 10,640,865 $ 2,128,173 424 (543,172) (2,053) $ 1,583,372	2024 $ 9,679,570 $ 1,935,914 1,353 (546,335) (3,225) $ 1,387,707

• b. Income tax recognized in other comprehensive income

c.	Deferred tax In respect of the current year Fair value changes of financial assets at FVTOCI Remeasurement of defined benefit plans Total income tax (benefit) expense recognized in other comprehensive income Current tax liabilities Current tax liabilities Income tax payable	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
			2025 $ 7,660 (30,322) $ (22,662) December	2024 $ 24,240 6,817 $ 31,057 31
			2025 $ 439,265	2024 $ 626,628

• 64 -

d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2025

					Recognized in	Recognized in	Recognized in
						Other
			Recognized in		Comprehensive
	Opening Balance		Profit or Loss			Income		Closing Balance
Deferred tax assets
Temporary differences
Property, plant and equipment	$	3,644	$	-	$		-	$	3,644
Unrealized losses on structure notes
payment		254,362		19,320			-		273,682
Defined benefit obligations		139,106		(27,380)		30,322			142,048
Allowance for doubtful accounts		209,849		73,840			-		283,689
Others		174,802		(203,169)		(7,660)			(7,660)
	$	781,763	$	(137,389)	$	22,662		$	667,036
Deferred tax liabilities
Temporary differences
Provision for land value increment tax	$	109,486	$	-	$		-	$	109,486
For the year ended December 31,	2024
					Recognized in
						Other
			Recognized in		Comprehensive
	Opening Balance		Profit or Loss			Income		Closing Balance
Deferred tax assets
Temporary differences
Property, plant and equipment	$	3,644	$	-	$		-	$	3,644
Unrealized losses on structure notes
payment		250,344		4,018			-		254,362
Defined benefit obligations		166,628		(20,705)		(6,817)			139,106
Allowance for doubtful accounts		333,577		(123,728)			-		209,849
Others		(57,553)		256,595		(24,240)			174,802
	$	696,640	$	116,180	$	(31,057)		$	781,763
Deferred tax liabilities
Temporary differences
Provision for land value increment tax	$	109,486	$	-	$		-	$	109,486

e. Income tax assessments

The income tax returns of the Bank through 2023 have been assessed by the tax authority.

• 65 -

31. EARNINGS PER SHARE

Unit: NT$ Per Share

Basic earnings per share Diluted earnings per share	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2025 $ 1.53 $ 1.53	2024 $ 1.40 $ 1.40

The weighted average number of shares outstanding used for the earnings per share computation was adjusted retroactively for the issuance of bonus shares. The basic and diluted earnings per share adjusted retrospectively for the year ended December 31, 2024 were as follows:

	Unit:	NT$ Per Share
	Before	After
	Retrospective	Retrospective
	Adjustment	Adjustment
Basic earnings per share	$ 1.50	$ 1.40
Diluted earnings per share	$ 1.50	$ 1.40

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share were as follows:

Net profit for the year

Earnings used in the computation of earnings per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 9,057,493	2024 $ 8,291,863

The weighted average number of ordinary shares outstanding (in thousands of shares) was as follows:

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Employees’ compensation or bonuses issued to employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2025 5,927,105 4,589 5,931,694	2024 5,921,626 4,908 5,926,534

The Bank may settle the compensation or bonuses paid to employees in cash or shares; therefore, the Bank assumes that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

• 66 -

32. SHARE-BASED PAYMENT ARRANGEMENTS

In 2025, the board of directors of the Bank resolved to issue ordinary shares, of which 15% were reserved for subscription by employees in accordance with Company Act, qualified employees of the Bank was granted 15,000 options in October 9, 2025, each option entitles the holder with the right to subscribe for one ordinary shares of the Bank. Each share has an exercise price of $18.90.

Information on ordinary share employee share options was as follows:

Balance at January 1 Options granted Options exercised Options expired Balance on December 31 Options exercisable, end of the year Weighted-average fair value of options granted ($)	For the Year Ended December 31, 2025
	Number of Options (In Thousands of Units) Weighted- average Exercise Price ($) - $ - 15,000 18.90 (14,952) 18.90 (48) 18.90 - - $ 3.31

Options granted by Taichung Commercial Bank Co., Ltd. in October 2025 is priced using the Black-Scholes pricing model, and the inputs to the model are as follows:

	For the Year
	Ended
	December 31,
	2025
Grant-date share price	$22.15
Exercise price	$18.90
Expected volatility	22.00%
Expected life	61 days
Expected dividend yield	0%
Risk-free interest rate	1.1485%

Compensation costs recognized was $49,650 thousand for the year ended December 31, 2025.

• 67 -

33. RELATED-PARTY TRANSACTIONS

Related Party

China Man-Made Fiber Corporation Hsu Tian Investment Co., Ltd. Ruey-Tsang Lee (Notes 5 and 7)

Chien-An Shin (Notes 1, 3 and 6)

Kuei-Fong Wang (Note 2) Te-Wei Chia (Notes 1 and 4) Yi-Yuan Tung (Note 4) Jin-Yi Lee, Hsin-Chang Tsai, Li-Woon Lim, Pi-Ta Chen Hsueh-Hsuan Liao (Notes 3, 5 and 6), Shih-Yi Chiang, Ying-Hui Wu

30 persons including the Chairman and general manager’s spouse

26 persons including the director of the Board’s spouse

8 persons including Shu-Zhen Chen

22 persons including associate deputy general manager’s spouse 113 persons including Shin-Chieh Chang 16 persons including Kuei-Hsien Wang

Taichung Bank Securities Investment Trust Co., Ltd.

Taichung Bank Insurance Brokers Co., Ltd. Taichung Bank Leasing Corporation Limited Taichung Bank Securities Co., Ltd. TCCBL Co., Ltd. Taichung Bank Financial Leasing (Suzhou) Co., Ltd. Taichung Bank Venture Capital Co., Ltd. Pan Asia Chemical Co., Ltd. China Fiber Investment Co., Ltd. Pan Asia Investment Co., Ltd. Taichung Commercial Bank Cultural and Educational Foundation, Taichung Commercial Bank Workers’ Welfare Commission and Taichung Commercial Bank Charity Foundation Deh Hsing Investment Co., Ltd. Hebei Hanoshi Contact Lens Co., Ltd. Chou Chin Industrial Co., Ltd. Chou Chang Co., Ltd. Greenworld Food Co., Ltd. Nan Chung Petrochemical Corporation Reliance Securities Co., Ltd. Sheen Ren Knitting Factory Co., Ltd. Ta Fa Investment Co., Ltd. Formosa Imperial Wineseller Corp.

Relationship with the Bank

Parent company of the Bank Legal director of the Bank General chairman and legal representatives of

the Bank’s director General chairman and legal representatives of the Bank’s director Natural director of the Bank General manager of the Bank General manager of the Bank Independent directors of the Bank Legal representatives of the Bank’s director

The spouses and second-degree relatives, etc. of the Bank’s chairman and general managers The spouses and children of the Bank’s directors Key management personnel The spouses and children of the Bank’s associate deputy general managers Managers of the Bank The spouses and children of the parent company’s chairman, vice chairman and general managers Associate accounted for using the equity method Subsidiary Subsidiary Subsidiary Sub-subsidiary Sub-subsidiary Sub-subsidiary Related party in substance Related party in substance Related party in substance Related party in substance

Related party in substance Related party in substance Related party in substance Related party in substance Related party in substance Related party in substance Related party in substance Related party in substance Related party in substance Related party in substance

(Continued)

• 68 -

Relationship with the Bank

Related Party

Yu Hui Limited Related party in substance Formosawine Vintners Corporation Related party in substance Bomi International Co., Ltd. Related party in substance Shanghai Bomi Food Co., Ltd. Related party in substance Noble House Global Limited Related party in substance Noble House Glory Corporation Related party in substance Wang Wanjin Culture and Education Foundation Related party in substance Chaoqing Investment Co., Ltd. Related party in substance Sheng Yuan Ze Investment Limited Company Related party in substance Pan Hsu Investment Co., Ltd. Related party in substance Storm Model Management Co., Ltd. Related party in substance Shuo-Jung Co., Ltd. Related party in substance General Pride Enterprise Co., Ltd. Related party in substance Fengqi Investment Co., Ltd. Related party in substance Reliance Kuan Chun Venture Capital Co., Ltd. Related party in substance Reliance Securities Investment Consultant Co., Ltd. Related party in substance Reliance Kuan Chun Venture Management Consulting Related party in substance Co., Ltd. Shen Ching Investment Co., Ltd. Related party in substance Lei Fu Life Business Co., Ltd. Related party in substance Chi Da Investment Co., Ltd. Related party in substance Syu Yi Investment Co., Ltd. Related party in substance Yao Shang Investment Co., Ltd. Related party in substance China Man-Made Fiber Entertainment Co., Ltd. Related party in substance Hanhua Co., Ltd. (formerly Dr. Brain Lab Technology Co., Related party in substance Ltd.) Bang-Yu Co., Ltd. Related party in substance WK Taipei Co., Ltd. Related party in substance Shanghai Bangyi International Trading Co., Ltd. Related party in substance Hongxuan Investment Co., Ltd. Related party in substance Weierfu Investment Co., Ltd. Related party in substance Baoxinghong Development Co., Ltd. Related party in substance (Concluded)

• Note 1: Hsu Tian Investment Co., Ltd. reassigned its legal representative from Te-Wei Chia to Chien-An Shin on February 26, 2024.

• Note 2: Kuei-Fong Wang resigned as the chairman of the board on March 14, 2024.

• Note 3: Hsueh-Hsuan Liao resigned as the executive director on March 18, 2024, and on the same day, an interim meeting of the board resolved to appoint Chien-An Shin as the executive director, and the executive board elected Chien-An Shin as chairman of the board.

• Note 4: Te-Wei Chia retired on July 1, 2024, and the position of general manager was temporarily replaced by deputy general manager Yi-Yuan Tung from July 5, 2024, and on August 9, 2024, the FSC approved the appointment of the new General Manager.

• Note 5: Hsu Tian Investment Co., Ltd. reassigned its legal representative from Hsueh-Hsuan Liao to Ruey-Tsang Lee on August 5, 2024.

• 69 -

• Note 6: Chien-An Shin resigned as the chairman of the board and legal representative on January 24, 2025, and on the same day, Hsu Tian Investment Co., Ltd. assigned its legal representative to Hsueh-Hsuan Liao, with the effective date on February 3, 2025.

• Note 7: An interim meeting of the board on February 3, 2025, resolved to appoint Ruey-Tsang Lee as the executive director, and the executive board elected Ruey-Tsang Lee as the chairman of the board.

Significant transactions between the Bank and its related parties:

• a. Receivables

Taichung Bank Insurance Brokers Co., Ltd.	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2025 $ 42,964	2024 $ 29,392

As of December 31, 2025 and 2024, the receivables from Taichung Bank Insurance Brokers Co., Ltd. were receivables on service fee income.

• b. Loans

For the year ended December 31, 2025

Balance, Numbers/ Name Highest Balance End of the Year Employees’ consumption loans 7 $ 4,726 $ 2,779 Loans on mortgage 44 304,284 252,351 Other loans Lo OO 2,724 2,422 Huang OO 880 736 Huang OO 865 680 Wang OO 4,600 2,300 Shen OO 11,822 11,278 Lee OO 1,855 1,713 Chen OO 40,000 40,000 Yang OO 3,768 3,410 Tung OO 30,000 20,000 Tung OO 20,000 20,000 Lin OO 46 - Wang OO 8,000 8,000 Wang OO 5,000 5,000 Fang OO 42,500 42,500 Tung OO 10,000 10,000 Lin OO 21,750 19,950 Chang OO 1,585 1,513 Huang OO 2,000 2,000 Liao OO 5,500 5,465 Lin OO 1,281 - Chang OO 2,500 2,500 Lin OO 6,100 5,000 Lee OO 4,000 1,000

Compliance The Difference Between Related and Performing Loans Overdue Loans Interest Revenue Collaterals Non-related Party $ 2,779 $ - $ 59 Credit loans None 252,351 - 4,988 Real estate None 2,422 - 62 Real estate None 736 - 17 Real estate None 680 - 15 Real estate None 2,300 - 56 Real estate None 11,278 - 278 Real estate None 1,713 - 40 Real estate None 40,000 - 880 Real estate None 3,410 - 84 Real estate None 20,000 - 525 Real estate None 20,000 - 160 Real estate None - - - Real estate None 8,000 - 162 Real estate None 5,000 - 89 Real estate None 42,500 - 918 Real estate None 10,000 - 196 Real estate None 19,950 - 511 Real estate None 1,513 - 39 Real estate None 2,000 - 4 Real estate None 5,465 - 151 Real estate None - - 16 Real estate None 2,500 - 66 Real estate None 5,000 - 117 Real estate None 1,000 - 20 Real estate None

• 70 -

For the year ended December 31, 2024

Balance, Numbers/ Name Highest Balance End of the Year Employees’ consumption loans 9 $ 4,419 $ 3,214 Loans on mortgage 49 268,907 227,066 Other loans Lo OO 2,823 2,724 Huang OO 1,020 880 Huang OO 1,463 865 Lai OO 2,000 2,000 Wang OO 2,300 2,300 Lee OO 1,995 1,855 Chen OO 40,000 40,000 Yang OO 4,119 3,768 Tung OO 30,000 30,000 Lin OO 138 46 Wang OO 3,000 3,000 Fang OO 23,800 23,800 Tung OO 8,000 8,000 Lin OO 23,000 21,750 Chang OO 1,656 1,585 Tung OO 40,000 - Liang OO 403 278 Chang OO 2,500 2,500 Chiu OO 2,009 1,346 Lin OO 6,100 6,100

Compliance The Difference Between Related and Performing Loans Overdue Loans Interest Revenue Collaterals Non-related Party $ 3,214 $ - $ 91 Credit loans None 227,066 - 4,306 Real estate None 2,724 - 31 Real estate None 880 - 20 Real estate None 865 - 22 Real estate None 2,000 - - Real estate None 2,300 - 21 Real estate None 1,855 - 42 Real estate None 40,000 - 858 Real estate None 3,768 - 91 Real estate None 30,000 - 672 Real estate None 46 - - Real estate None 3,000 - 72 Real estate None 23,800 - 299 Real estate None 8,000 - 203 Real estate None 21,750 - 340 Real estate None 1,585 - 40 Real estate None - - 931 Real estate None 278 - 7 Real estate None 2,500 - 58 Real estate None 1,346 - 32 Real estate None 6,100 - 22 Real estate None

According to Articles 32 and 33 of the Banking Law, credit loans cannot be made to related parties except loans to government and consumers; secured loans to related parties shall be provided with adequate collateral, and the terms of credits to related parties should be similar to those for third parties.

c. Refundable deposits

Taichung Bank Leasing Corporation Limited d. Payables

For the Year Ended	For the Year Ended	December 31
	2025 $ 1,571	2024 $ 1,571

Taichung Bank Insurance Brokers Co., Ltd. Taichung Bank Venture Capital Co., Ltd.	For the Year Ended	For the Year Ended	December 31
		2025 $ 1,223 117 $ 1,340	2024 $ 860 143 $ 1,003

As of December 31, 2025 and 2024, the payables from Taichung Bank Insurance Brokers Co., Ltd. and Taichung Bank Venture Capital Co., Ltd. were payables on interest payable.

• 71 -

e. Deposits

Taichung Bank Insurance Brokers Co., Ltd. Taichung Bank Securities Investment Trust Co., Ltd. Taichung Commercial Bank Workers’ Welfare Commission Taichung Bank Leasing Corporation Limited China Man-Made Fiber Corporation Reliance Securities Co., Ltd. Taichung Commercial Bank Cultural and Educational Foundation Formosa Imperial Wineseller Corp. Greenworld Food Co., Ltd. Pan Asia Chemical Co., Ltd. Chou Chin Industrial Co., Ltd. Chou Chang Co., Ltd. Taichung Bank Securities Co., Ltd. Pan Hsu Investment Co., Ltd. TCCBL Co., Ltd. Yu Hui Limited Hsu Tian Investment Co., Ltd. Shuo-Jung Co., Ltd. Deh Hsing Investment Co., Ltd. Pan Asia Investment Co., Ltd. Taichung Bank Venture Capital Co., Ltd. Syu Yi Investment Co., Ltd. Yao Shang Investment Co., Ltd. Chi Da Investment Co., Ltd. Fengqi Investment Co., Ltd. Lei Fu Life Business Co., Ltd. China Man-Made Fiber Entertainment Co., Ltd. WK Taipei Co., Ltd. Hanhua Co., Ltd. Noble House Global Limited Others	For the Year Ended December 31, 2025	For the Year Ended December 31, 2025
	Ending Balance Interest Ratio $ 1,869,472 0.01-1.74 87,520 0.00-1.72 159,545 0.01-5.76 363,493 0.71-0.88 86,813 0.01-0.80 10,544 0.71-1.47 8,334 0.01-1.72 2 0.71 2,817 0.71 9,850 0.01-0.71 11,095 0.01-0.71 1,333 0.01 48,286 0.00-1.70 36,453 0.01 1 - 4 0.01 148,898 0.00-0.80 7,122 0.01 186,241 0.01-0.80 7 0.01 149,246 0.00-1.60 1,956 0.71 1,956 0.71 1,956 0.71 4 0.71 506 0.71 1 0.71 13 0.71 390 0.01 603 0.01 495,343 0.00-5.76 $ 3,689,804	Interest Expense $ 19,866 1,279 9,114 1,642 343 150 139 - 19 111 11 1 324 - - - 88 1 507 - 3,406 46 46 46 - 7 - - - 6 8,746 $ 45,898

• 72 -

Taichung Bank Insurance Brokers Co., Ltd. Taichung Bank Securities Investment Trust Co., Ltd. Taichung Commercial Bank Workers’ Welfare Commission Taichung Bank Leasing Corporation Limited China Man-Made Fiber Corporation Reliance Securities Co., Ltd. Taichung Commercial Bank Cultural and Educational Foundation Formosa Imperial Wineseller Corp. Greenworld Food Co., Ltd. Pan Asia Chemical Co., Ltd. Chou Chin Industrial Co., Ltd. Chou Chang Co., Ltd. Taichung Bank Securities Co., Ltd. Pan Hsu Investment Co., Ltd. TCCBL Co., Ltd. Yu Hui Limited Hsu Tian Investment Co., Ltd. Shuo-Jung Co., Ltd. Deh Hsing Investment Co., Ltd. Pan Asia Investment Co., Ltd. Taichung Bank Venture Capital Co., Ltd. Syu Yi Investment Co., Ltd. Yao Shang Investment Co., Ltd. Chi Da Investment Co., Ltd. Fengqi Investment Co., Ltd. Lei Fu Life Business Co., Ltd. China Man-Made Fiber Entertainment Co., Ltd. WK Taipei Co., Ltd. Others	For the Year Ended December 31, 2024	For the Year Ended December 31, 2024
	Ending Balance Interest Ratio $ 1,673,434 0.01-1.69 102,493 0.00-1.70 151,645 0.01-5.76 58,266 0.00-0.93 113,851 0.01-1.30 10,394 0.71-1.47 8,285 0.01-1.72 2 0.71 4,568 0.71 34,344 0.01-0.71 5,351 0.01-0.71 7,243 0.01 89,709 0.00-1.90 2,001 0.01 1 - 4 0.01 132,167 0.00-1.30 30,457 0.01 177,004 0.001-1.30 7 0.01 241,795 0.00-1.60 8,488 0.71 8,488 0.71 8,488 0.71 4 0.71 2,187 0.71 1 0.71 6 0.58-0.71 472,418 0.001-6.20 $ 3,343,101	Interest Expense $ 17,010 1,377 8,485 1,234 402 140 137 - 18 144 13 - 448 - - - 45 1 620 - 1,428 42 42 42 - 27 - 1 8,592 $ 40,248

The interest rates did not significantly differ from those with ordinary customers except for the interest rates on the Bank’s employee deposits at 5.76% as of December 31, 2025 and 2024.

f. Financial debenture

The Bank issued, first no due date non-cumulative subordinated financial debenture, second no due date non-cumulative subordinated financial debenture, third no due date non-cumulative subordinated financial debenture, fourth no due date non-cumulative subordinated financial debenture and fifth no due date non-cumulative subordinated financial debenture in 2017, first no due date non-cumulative subordinated financial debenture and second no due date non-cumulative subordinated financial debenture in 2018, and first no due date non-cumulative subordinated financial debenture and second no due date non-cumulative subordinated financial debenture in 2025, and entrusted Concord Securities Co., Ltd., Yuanta Financial Holding Co., Ltd. and KGI Securities Co., Ltd. as financial advisors for the issuance and collection of bonds.

• 73 -

As of December 31, 2024, the related parties subscribed for the financial debenture issued by the Bank through underwriting brokers as follows:

Counterparty	Subscription	Period
Hsu Tian Investment Co.,	$ 4,590,000	First no due date non-cumulative subordinated financial
Ltd.		debenture and fifth no due date non-cumulative
		subordinated financial debenture in 2017, first no
		due date non-cumulative subordinated financial
		debenture, second no due date non-cumulative
		subordinated financial debenture in 2018, first no
		due date non-cumulative subordinated financial
		debenture, second no due date non-cumulative
		subordinated financial debenture in 2025.
Others	3,810,000	First no due date non-cumulative subordinated financial
		debenture, second no due date non-cumulative
		subordinated financial debenture, third no due date
		non-cumulative subordinated financial debenture,
		fourth no due date non-cumulative subordinated
		financial debenture, fifth no due date non-cumulative
		subordinated financial debenture in 2017, first no
		due date non-cumulative subordinated financial
		debenture and second no due date non-cumulative
		subordinated financial debenture in 2018, second no
		due date non-cumulative subordinated financial
		debenture in 2025.

The interest payables on the financial debentures of the above-mentioned related parties were $29,624 thousand and $56,630 thousand on December 31, 2025 and 2024, respectively. The interest expenses were $294,324 thousand and $315,310 thousand in 2025 and 2024, respectively.

• g. Guarantee deposit received

Taichung Bank Insurance Brokers Co., Ltd. Taichung Bank Leasing Corporation Limited Taichung Bank Securities Co., Ltd.	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2025 $ 733 300 620 $ 1,653	2024 $ 768 300 598 $ 1,666

• h. Leases arrangement

Bank is lessor under operating leases

The Bank leases out its buildings to its subsidiaries, Taichung Bank Securities Co., Ltd., Taichung Bank Insurance Brokers Co., Ltd. and Taichung Bank Leasing Co., Ltd. under operating leases with lease terms of 5 years, and the lease terms with its related parties are similar to those of the non-related parties. As of December 31, 2025 and 2024, the gross lease payments to be received were $26,515 thousand and $27,697 thousand, respectively. Lease income recognized for the years ended December 31, 2025 and 2024 were $6,980 thousand and $6,733 thousand, respectively.

• 74 -

i. Service fee income, net

Service fee income Taichung Bank Insurance Brokers Co., Ltd. Taichung Bank Securities Investment Trust Co., Ltd. Taichung Bank Securities Co., Ltd. Taichung Bank Leasing Corporation Limited Service fee expense Taichung Bank Securities Co., Ltd.	For the Year Ended	For the Year Ended	December 31
		2025 $ 418,634 1,720 99 180 420,633 (1,755) $ 418,878	2024 $ 331,867 1,556 49 87 333,559 (2,646) $ 330,913

The above amounts are for the promotion and channel revenue, etc. Taichung Bank Insurance Brokers Co., Ltd. pays the toll fee on a monthly basis; the service fee expense from Taichung Bank Securities Co., Ltd. is brokerage fee. The price of transactions with its related parties is similar to those of the non-related parties.

• j. Other non-interest gains, net

Taichung Bank Securities Co., Ltd.	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2025 $ 1,862	2024 $ 1,615

The above amount is other non-interest gains. The price of transactions with its related parties is similar to those of the non-related parties.

• k. Other income

Taichung Bank Securities Co., Ltd. Taichung Bank Leasing Corporation Limited	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2025 $ 117 47 $ 164	2024 $ - - $ -

The above amounts are other miscellaneous Income. The price of transactions with its related parties is similar to those of the non-related parties.

m. Other expenses

Greenworld Food Co., Ltd. Formosa Imperial Wineseller Corp.	For the Year Ended	For the Year Ended	December 31
		2025 $ 905 2,783 $ 3,688	2024 $ 870 3 $ 870

• 75 -

The above amounts are other business expenses. The price of transactions with its related parties is similar to those of the non-related parties.

• l. Lease arrangements

Related Party Category/Name Payments for right-of-use assets Taichung Bank Leasing Corporation Limited Lease liabilities Taichung Bank Leasing Corporation Limited Interest expense Taichung Bank Leasing Corporation Limited	For the Year Ended	For the Year Ended	December 31
		2025 $ - $ 89,842 $ 1,116	2024 $ 97,935 $ 96,440 $ 291

• n. Compensation of directors and key management personnel

For the years ended December 31, 2025 and 2024, the amounts of compensation of directors and key management personnel were as follows:

Short-term benefits Post-employment benefits Other long-term employee benefits	For the Year Ended	For the Year Ended	December 31
		2025 $ 391,096 11,172 14 $ 402,282	2024 $ 365,878 722 6 $ 366,606

34. PLEDGED ASSETS

Investments in debt instrument at amortized cost - government bonds		December 31	December 31
		2025 $ 670,500	2024 $ 640,500

Government bonds were pledged to district courts for litigation, the collateral for the overdraft of the clearing account and the compensation reserve for the securities firm and the trust business. The details were as follows:

Guarantee to district courts for litigation Reserve of trust compensation Collateral for overdraft of clearing account		**December 31 **	**December 31 **
		2025 $ 50,500 120,000 500,000 $ 670,500	2024 $ 50,500 90,000 500,000 $ 640,500

• 76 -

35. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in Notes 8, 11 and 21, significant commitments and contingencies of the Bank as of December 31, 2025 and 2024 were as follows:

• a. Significant commitments

Loan commitments (excluding credit cards) Loan commitments - credit cards Guarantee receivables Trust liabilities Letters of credit	**December 31 **
	2025 2024 $ 203,526,523 $ 206,096,006 13,965,747 13,657,478 45,241,863 38,123,697 127,632,067 121,796,319 3,537,598 3,839,521

• b. According to Article 17 of the Implementation Rules of Trust Law, the Bank should disclose its balance sheet of trust account and its asset items, which were as follows:

Trust Account Balance Sheet December 31, 2025

Trust Asset Cash in banks Debentures Shares Funds Structured finance instruments Real estate Land Buildings Securities under custody Trust assets	Amount Trust Liability $ 8,252,846 Securities under custody 21,613,681 payable 4,953,725 Trust capital 52,982,880 Net income 4,881,459 Deferred carryover amounts 30,762,077 139,392 4,046,007 $ 127,632,067 Trust liabilities	Amount $ 4,046,007 123,586,060 2,413,221 (2,413,221) $ 127,632,067

Note: On December 31, 2025, the bank’s Offshore Banking Unit invested in foreign securities under specific purpose trust accounts amounting to $4,892,587 thousand.

Trust Account Asset Items December 31, 2025

Item Cash in banks Debentures Shares Funds Structured finance instruments Real estate Land Buildings Securities under custody	Amount $ 8,252,846 21,613,681 4,953,725 52,982,880 4,881,459 30,762,077 139,392 4,046,007 $ 127,632,067

• 77 -

Trust Account Income Statement Year Ended December 31, 2025

Amount

Trust income Interest revenue Cash dividends Trust expense Management fee Tax Income before income tax Income tax expense Net income	$ 3,850,262 79,689 (1,514,756) (1,974) 2,413,221 - $ 2,413,221

Trust Account Balance Sheet December 31, 2024

Trust Asset Cash in banks Debentures Shares Funds Structured finance instruments Real estate Land Buildings Securities under custody Trust assets	Amount Trust Liability $ 11,678,203 Securities under custody 21,550,532 payable 5,156,616 Trust capital 49,036,139 Net income 3,850,269 Deferred carryover amounts 25,183,227 110,584 5,230,749 $ 121,796,319 Trust liabilities	Amount $ 5,230,749 116,565,570 1,818,582 (1,818,582) $ 121,796,319

Note: On December 31, 2024, the bank’s Offshore Banking Unit invested in foreign securities under specific purpose trust accounts amounting to $3,833,541 thousand.

Trust Account Asset Items December 31, 2024

Item Cash in banks Debentures Shares Funds Structured finance instruments Real estate Land Buildings Securities under custody	Amount $ 11,678,203 21,550,532 5,156,616 49,036,139 3,850,269 25,183,227 110,584 5,230,749 $ 121,796,319

• 78 -

Trust Account Income Statement Year Ended December 31, 2024

Trust income Interest revenue Cash dividends Trust expense Management fee Tax Income before income tax Income tax expense Net income	Amount $ 3,294,303 84,601 (1,559,336) (986) 1,818,582 - $ 1,818,582

c. Maturity analysis of capital expenditures

Capital expenditure commitments represent contractual commitments for the acquisition of capital expenditures on construction and equipment.

Considering the expansion of business scale and the increasing number of employees in the future, the Bank held a tender for the construction project of head office through an online open bidding process on February 11, 2019. Dacin Construction Co., Ltd. and Earthpower Co., Ltd. won the bidding, both parties entered into a joint venture agreement worth $11,160,000 thousand on March 29, 2019, and started construction on April 27, 2019. In order to improve construction safety, both parties agreed to change the “reverse drilling steel column well type foundation alternative construction method” and the “raft foundation beam structure optimization alternative plan”. The first supplementary agreement was made on January 8, 2021, and the total contract price after the change is $11,155,943 thousand. In addition, the second supplementary agreement was processed and the total contract price after the change was $11,154,971 thousand on May 9, 2022, the contract amount remained unchanged in the third and fourth supplementary agreements, the fifth supplemental agreement was processed, and the total price of the contract after the change was $11,239,324 thousand on February 2, 2024, the sixth supplemental agreement was processed, and the total price of the contract after the change was $11,242,822 thousand on June 4, 2025, the seventh supplemental agreement was processed, and the total price of the contract after the change was $11,182,542 thousand on November 25, 2025. The Bank entered into a contract of planning, design and supervision with YSL Architects & Associates on January 5, 2016, and the contract price was worth $480,492 thousand. The Bank entered into a contract of planning, design and supervision with Rich Honour Design Group, and the estimated contract price was $195,000 thousand on September 29, 2022, and supplemental agreement was processed, and the total price of the contract after the change was $203,500 thousand on November 18, 2025 and Earthpower Co., Ltd. has been contracted for the interior renovation of a bank space on November 11, 2024, with a total contract value of $1,399,000 thousand.

Maturity analysis of capital expenditures was summarized as follows:

Year 1 Year 2		**December 31 **	**December 31 **
		2025 $ 2,930,441 28,485 $ 2,958,926	2024 $ 4,559,762 50,618 $ 4,610,380

• 79 -

• d. The Bank and Pihsiang Energy Technology Co., Ltd. are parties in a consumer consignment litigation. The Taichung District Court of first instance issued a civil judgment on the 2018 case No. 598 that the Bank lost the case on February 4, 2020. The claim of Pihsiang Energy Technology Co., Ltd. against the Bank is $100 million, and the interest shall be calculated at 5% per annum from April 10, 2018 to the settlement date. The litigation costs shall be borne by the defendant (i.e., the Bank). The appointed lawyer of the Bank assessed that the content of the original judgment is contradictory and unprovoked. Therefore, the Bank filed an appeal on February 27, 2020, and was in the High Court Taichung Branch as 2020 renewed trial No. 78. After the second instance, the High Court Taichung Branch reappealed to trial No. 78 of 2020 on March 29, 2022, ruling that the Bank won the case. However, the plaintiff refused to accept the judgment of the second instance and filed an appeal, and the Supreme Court remanded the case to the Taichung Branch of the Taiwan High Court on January 11, 2024. According to the civil judgment on the 2018 case No. 598 on February 4, 2020, the Bank has prepared in advance the outstanding indemnities (statutory fruits and litigation costs) of the open litigation, as at December 31, 2025, the balance of the outstanding loss provision was $39,090 thousand. Please refer to Note 26(e) for movements of the outstanding loss provision.

• e. The Bank is suspected of violating the Banking Act, and the investigation by the New Taipei District Prosecutor’s Office concluded the investigation on June 21, 2024, and imposed a fine of NT$500,000 thousand. With reference to the opinions of external legal experts, the Bank assessed that the possibility of being fined by the court judgment was extremely low, so the Bank did not recognize the relevant provisions.

36. FINANCIAL INSTRUMENTS

• a. Fair value of financial instruments not measured at fair value

Except as detailed in the following table, the carrying amounts of financial instruments recognized in the financial statements approximate their fair values or that the fair values cannot be reasonably measured. Therefore, those were not disclosed in this note.

• 1) Fair value hierarchy

December 31, 2025

Carrying Amount Financial assets Investments in debt instrument at amortized cost $ 103,927,820 Financial liabilities Financial liabilities at amortized cost Bank debentures 15,150,000 December 31, 2024 Carrying Amount Financial assets Investments in debt instrument at amortized cost $ 108,347,780 Financial liabilities Financial liabilities at amortized cost Bank debentures 13,500,000	Fair Value
	Level 1 Level 2 Level 3 Total $ 82,423,531 $ 21,346,970 $ - $ 103,770,501 - 15,098,907 - 15,098,907 Fair Value
	Level 1 Level 2 Level 3 Total $ 82,467,638 $ 24,896,440 $ - $ 107,364,078 - 13,424,079 - 13,424,079

• 80 -

• 2) Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instruments Valuation Techniques and Inputs

Non-derivatives The market transaction price in the non-active market is taken as the fair value.

• b. Fair value of financial instruments measured at fair value on a recurring basis

• 1) Fair value hierarchy

Financial assets at FVTPL Derivative financial assets Commercial papers Domestic listed shares Beneficiary certificates Domestic corporate bonds Others Financial assets at FVTOCI Investments in equity instruments Domestic unlisted shares Domestic listed shares Foreign listed shares Investments in debt instruments Domestic corporate bonds Domestic government bonds Foreign bonds Bank debentures Financial liabilities at FVTPL Derivative financial liabilities		December 31, 2025	December 31, 2025
	Total $ 10,839,570 29,713,055 375,409 536,709 15,713 417,206 $ 41,897,662 $ 1,390,743 4,239,411 564,760 40,250,809 11,812,950 40,003,794 2,013,744 $ 100,276,211 $ 2,682,542	Level 1 $ 10,609 29,713,055 375,409 536,709 15,713 - $ 30,651,495 $ - 4,239,411 564,760 36,751,299 11,812,950 - 2,013,744 $ 55,382,164 $ -	Level 2 $ 10,828,961 - - - - 417,206 $ 11,246,167 $ - - - 3,499,510 - 40,003,794 - $ 43,503,304 $ 2,682,542	Level 3 $ - - - - - - $ - $ 1,390,743 - - - - - - $ 1,390,743 $ -

Reconciliation of Level 3 fair value measurements of financial instruments:

Item	Beginning Balance	Valuation Gains(Losses)	Incr	ease		Decr	Decr	ease	Ending Balance
			Buy or Issue	Tra	nsfer In	**Sell, Disposal **		Transfer Out
Financial assets at FVTOCI Unlisted shares	$1,266,606	$ 124,137	$ -	$	-	$ -		$ -	$1,390,743
Financial assets at FVTPL Derivative financial assets Commercial papers Domestic listed shares Beneficiary certificates Domestic corporate bonds Others					December 31, 2024
			Total $ 12,607,068 21,024,344 335,604 1,146,137 31,742 537,893 $ 35,682,788		Level 1 $ 15,440 21,024,344 335,604 1,146,137 31,742 - $ 22,553,267		Level 2 $ 12,591,628 - - - - 537,893 $ 13,129,521		Level 3 $ - - - - - - $ - (Continued)

• 81 -

Financial assets at FVTOCI Investments in equity instruments Domestic unlisted shares Domestic listed shares Foreign listed shares Investments in debt instruments Domestic corporate bonds Domestic government bonds Foreign bonds Bank debentures Financial liabilities at FVTPL Derivative financial liabilities		December 31, 2024	December 31, 2024
	Total $ 1,266,606 3,587,795 530,070 37,784,331 12,381,475 42,401,938 1,489,269 $ 99,441,484 $ 2,821,648	Level 1 $ - 3,587,795 530,070 33,484,951 12,381,475 - 1,489,269 $ 51,473,560 $ -	Level 2 $ - - - 4,299,380 - 42,401,938 - $ 46,701,318 $ 2,821,648	Level 3 $ 1,266,606 - - - - - - $ 1,266,606 $ - (Concluded)

Reconciliation of Level 3 fair value measurements of financial instruments:

Item	Beginning Balance	Valuation Gains(Losses)	Incr	ease	Decr	ease	Ending Balance
			Buy or Issue	Transfer In	**Sell, Disposal **	Transfer Out
Financial assets at FVTOCI Unlisted shares	$ 903,979	$ 362,627	$ -	$ -	$ -	$ -	$1,266,606

There were no transfers between Levels 1 and 2 in the current and prior periods.

• 2) Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instruments Non-derivatives Derivatives Option contracts Cross-currency swap contracts, foreign exchange forward contracts Asset swap contract Structured finance instruments Interest rate-linked structured instruments

Valuation Techniques and Inputs

The market transaction price in the non-active market is taken as the fair value. Valuation model: The execution price, maturity date, market volatility, interest rate and exchange rate set by the contract are used as evaluation parameters. The model with closed solution is then used for evaluation. Discounted cash flow: Future cash flows are estimated based on observable forward exchange rates at the end of the reporting period and forward rates of contracts, discounted at a rate that reflects the credit risk of various counterparties. Convertible corporate bond closing price on the day minus bond value. The pure bond value is discounted by the cash flow provided by the convertible corporate bonds in accordance with Taiwan Bills Index Rate (TAIBIR). The counterparty quotes.

• 82 -

• 3) The quantitative information on fair value of significant unobservable input (Level 3)

The quantitative information on unobservable inputs of the financial instruments classified in Level 3, and held by the Bank on December 31, 2025 and 2024, were as follows:

Items	Fair Value on December 31, 2025	Fair Value on December 31, 2024	Valuation Techniques	Significant Unobservable Input	Range (Weighted- average)	Relationship Between Inputs and Fair Value
Financial assets at fair value through other comprehensive income Domestic unlisted shares	$ 1,390,743	$ 1,266,606	Seller’s quote (Monte Carlo Simulation Method)	Volatility rate	16.10%-30.27%	The lower the volatility rate, the higher the fairvalue

• 4) The assessment of fair value in Level 3

The Bank assessed fair value in accordance with evaluation report provided by independent company, and compiled the evaluation result into a quarterly report presented to the board of directors.

• 5) Sensitivity analysis of Level 3 fair value if reasonable possible alternative assumptions may be used.

The Bank adopts multiple approaches to estimate the volatility rate of quantitative information on significant unobservable input. The sensitivity analysis based on assets category is as follows:

December 31, 2025
Significant Unobservable Input	Sensitivity Rate	Impact
Liquidity discount ratio	Increase 10%	$ (30,615)
	Decrease 10%	30,615
December 31, 2024
Significant Unobservable Input	Sensitivity Rate	Impact
Liquidity discount ratio	Increase 10%	$ (27,998)
	Decrease 10%	27,998

• c. Categories of financial instruments

Financial assets Financial assets at FVTPL Financial assets at amortized cost (Note 1) Financial assets at FVTOCI Equity instruments Debt instruments Financial liabilities Financial liabilities at FVTPL Financial liabilities at amortized cost (Note 2)	**December 31 **
	2025 2024 $ 41,897,662 $ 35,682,788 823,847,526 790,372,286 6,194,914 5,384,471 94,081,297 94,057,013 2,682,542 2,821,648 898,335,284 865,280,012

• 83 -

• Note 1: The balances include financial assets at amortized cost, which comprise cash and cash equivalents, due from the Central Bank and call loans to other banks, investment in debt instrument at amortized cost, securities purchased under resale agreements, receivables, notes discounted and loans, refundable deposits, and other financial assets.

• Note 2: The balances include financial liabilities at amortized cost, which comprise due to the Central Bank and other banks, securities sold under resale agreements, payables, deposits and remittances, bank debentures, other financial liabilities, and guarantee deposits received.

37. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Overview

The financial risk management objective of the Bank is to achieve the goal of balancing risk tolerance, business objectives and external legal restrictions. These risks include market risks (including interest rate, exchange rate, equity securities, product price and the product price risks) and liquidity risks of on-and-off balance sheet business.

The Bank has formulated a relevant risk management policy, which has been approved by the board of directors to effectively identify, measure, monitor and control credit risk, market risk and liquidity risk.

Risk Management Organizational Structure

The board of directors is the highest decision-making unit for the Bank’s corporate risk management and assumes the ultimate responsibility for risk management. The Bank has a risk management committee and a risk management department, which grants risk authority and confers responsibilities on the relevant departments to ensure the smooth operation of risk management. The responsibilities of the committee are as follows:

• a. Consideration of the risk management program.

• b. Consideration and review of risk limits.

• c. Consideration of the bill on institutionalization of risk management.

• d. Report to the board of directors regularly.

Members of the risk management committee set up various risk management measurement indicators according to the nature of their business and the scope of their duties, and the risk management department should report to the risk management committee to provide a reference for senior decision-making.

• 1) Market risk

• a) The source and definition of market risk

Market risks refer to the loss due to the changes in market price, such as the changes of the market interest rate, the exchange rate, the share price and the product price.

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b) Market risk management policy

The objective of the Bank market risk management is to develop a sound and effective market risk management mechanism that is consistent with the size, nature and complexity of the Bank’s business to ensure that the risks borne by the Bank can be properly managed and market risks are effectively identified, measured, monitored and controlled, and strike a balance between the level of risk tolerance and the expected level of compensation.

c) Market risk management process

i. Identification and measurement

The relevant market risks should be assessed through appropriate procedures to consider whether the risk is within an acceptable risk range before new products, business activities, processes and systems are rolled out or operated. The relevant units should use the methods of business analysis or product analysis to identify the sources of market risks, define the market risk factors of each financial commodity and make appropriate specifications.

Market risk measurement can use a variety of effective measures to properly measure risk, including but not limited to the following methods: Statistical basis measures, sensitivity analysis and situational analysis. The risk management department should measure the risk of the site on a daily basis and conduct regular stress tests to measure the amount of abnormal losses that may occur in the current extremes or historical extremes.

ii. Monitoring and reporting

The risk management department should report to the risk management committee and the board of directors regularly on the implementation of the Bank’s market risk management, including the Bank’s market risk location, risk level, profit and loss status, quota usage and compliance with relevant market risk management regulations and suggestions. The authorities also set up relevant limit management, stop loss mechanism, overrun treatment and exception management methods to effectively monitor market risks. In the event of an overrun or exception, it should be notified immediately to facilitate the immediate response.

d) Interest rate risk

i. Definition of interest rate risk

Interest rate risk refers to the change in interest rate, which causes the Bank to bear the risk of changes in the fair value of the interest rate risk or the loss of surplus liquidity. The main sources of risk include deposits and interest rate-related securities.

ii. Measurement methods and management procedures

The Bank monitors the interest rate risk system, sets the scope of the indicators to regularly monitor and report the results to the asset and liability management committee, the risk management committee and the board of directors, and adjusts according to the overall operating conditions of the Bank. In addition, the Bank measures the interest rate risk by DV01, assuming that the interest rate curve has a parallel shift of 100 basis points, the degree of impact on earnings and equity is used to control the interest rate risk.

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e) Exchange rate risk

• i. Definition of exchange rate risk

Exchange rate risk is the gain or loss resulting from the conversion of two different currencies at different times. The Bank’s exchange rate risk is mainly due to the changes in spot and forward foreign exchange of the business. Since the foreign exchange transactions are mostly based on the principle of flattening the customer’s position for the day, the exchange rate risk is relatively small.

• ii. Measurement methods and management procedures

The Bank adopts the quota management mechanism for the exchange rate risk system, sets the business quota and overnight limit for each currency, controls the maximum net foreign exchange position that can be held by all levels of personnel, and sets the maximum transaction amount according to the counterparty, and monitors it regularly. The results will be reported to the risk management committee and the board of directors for discussion.

In addition, the Bank assumes that the exchange rate of foreign currency holdings separately appreciates/depreciates by 3%, and the degree of impact on earnings and equity controls the exchange rate risk.

• f) Equity securities price risk

• i. Definition of equity securities price risk

The market risk of the Bank’s equity securities is the individual risk arising from changes in the market price of individual equity securities and the general market risk arising from changes in the overall market price. The main risks include listed shares and beneficiary certificates.

• ii. Measurement methods and management procedures

The Bank adopts a quota management mechanism for the equity securities price risk, ensuring that all levels are traded within the authorized amount, and sets up relevant mechanisms for stop loss control, and regularly reports the monitoring results to the risk management committee and the board of directors for discussion.

In addition, the Bank assumes that when the price of equity securities rises/falls by 15%, the degree of impact on earnings and equity controls the risk of equity securities.

g) Market risk sensitivity analysis

Interest risk

The Bank assumed that when other change factors remain unchanged, if the yield curve increased/decreased by 100 basis points, the income before income tax of the Bank as of December 31, 2025 and 2024 would have increased/decreased by $536,096 thousand and $365,564 thousand, respectively, and other equity would have decreased/increased by $4,516,087 thousand and $4,549,801 thousand, respectively.

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Exchange rate risk

The Bank assumed that when other change factors remain unchanged, if the exchange rate of foreign currency holdings appreciated/depreciated by 3%, the income before income tax as of December 31, 2025 and 2024 would have increased/decreased by $72,186 thousand and $99,573 thousand, respectively, and other equity would have increased/decreased by $1,277,370 thousand and $1,341,823 thousand, respectively.

Equity securities price risk

The Bank assumed that when other change factors remain unchanged, if the price of equity securities increased/decreased by 15%, the income before income tax as of December 31, 2025 and 2024 would have increased/decreased by $136,818 thousand and $222,261 thousand, respectively, and other equity would have increased/decreased by $929,237 thousand and $807,671 thousand, respectively.

The summary of sensitivity analysis was as follows:

	December 31, 2025
Main Risk	Range of Change	Influence Amount
		Other Equity	Income
Interest risk	Interest rate curve rises 100BPS Interestrate curvefalls100BPS	$ (4,516,087) 4,516,087	$ 536,096 (536,096)
Exchange rate risk	Exchange rate of foreign currency holdings increase by 3% Exchange rate of foreign currency holdings decrease by 3%	1,277,370 (1,277,370)	72,186 (72,186)
Equity securities price risk	Equity securities prices rise by 15% Equity securities pricesfallby15%	929,237 (929,237)	136,818 (136,818)

	December 31, 2024
Main Risk	Range of Change	Influence Amount
		Other Equity	Income
Interest risk	Interest rate curve rises 100BPS Interest rate curve falls 100BPS	$ (4,549,801) 4,549,801	$ 365,564 (365,564)
Exchange rate risk	Exchange rate of foreign currency holdings increase by 3% Exchange rate of foreign currency holdings decrease by 3%	1,341,823 (1,341,823)	99,573 (99,573)
Equity securities price risk	Equity securities prices rise by 15% Equity securities pricesfallby15%	807,671 (807,671)	222,261 (222,261)

2) Credit risk

a) The source and definition of credit risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Bank. Credit risk exists in both on and off-balance sheet items. The on-balance sheet exposures to credit risks are mainly from notes discounted and loans, the credit card business, due from other banks and call loans to other banks, acceptance, investment in debt instrument and derivatives. The off-balance sheet exposures to credit risks are mainly from financial guarantees, letter of credits and loan commitments.

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b) Credit risk management policy

Before launching new products or businesses, the Bank ensures compliance with all applicable rules and regulations and identifies relevant credit risks. On December 31, 2025, the ratio of loans with collateral to the total amount of loans was approximately 72%. The ratio of financing guarantees to commercial letters of collateral holdings was approximately 24%, and the collateral required for loans, loan commitments or guarantees is usually in the forms of cash, inventories, liquid securities or other property in circulation. If the customers default, the Bank will execute its rights on collateral in accordance with the terms of contracts.

c) Credit risk management program

The measurement and management of credit risks from the Bank’s main businesses were as follows:

• i. Loans business (including loan commitment and guarantees)

• i) Determination that credit risk has increased significantly since the initial recognition.

The Bank assesses the change in the probability of default on loans during the lifetime of each reporting date to determine if the credit risk has increased significantly since the initial recognition. In order to make this assessment, the Bank considerations show the reasonable and supportable information that the credit risk has increased significantly since the initial recognition (including forward-looking information). The main considerations include:

Quantitative indicators

• Changes in external credit ratings of Taiwan Corporate Credit Rating Index (TCRI)

The TCRI rating of the listed cabinet company corresponding to the external rating has been reduced from the investment grade to the non-investment grade, that is, the credit risk has been significantly increased since the initial recognition.

• Information on overdue status

When the contract amount is overdue for more than one month, it is determined that the credit risk of the financial asset has increased significantly since the initial recognition.

Qualitative indicators

• Unfavorable changes in the current or projected operating, financial or economic conditions that are expected to result in significant changes in the ability of the debtor to perform debt obligations.

• Significant changes in actual or expected results of the debtor’s operations.

• The credit risk of other financial instruments from the same debtor has increased significantly.

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• ii) Definition of default and credit impairment financial assets

The definition of financial asset default is the same as that of financial asset credit impairment. If one or more of the following conditions are met, the Bank determines that the financial asset has defaulted and becomes credit impaired:

Quantitative indicators

• Changes in external TCRI credit ratings

The TCRI rating of the listed cabinet company is default grade, which means that the credit has been deducted since the initial recognition.

• Information on overdue status

When the contract amount is overdue for more than three months, it is determined that the credit of the financial asset has been impaired since the initial recognition.

Qualitative indicators

If there is evidence that the borrower will not be able to pay the contract, or that the borrower has significant financial difficulties, such as:

• The debtor has gone bankrupt or may have called for bankruptcy or financial restructuring.

• Other debt instrument contracts of the debtor have defaulted.

• Due to the economic or contractual reasons associated with the debtor’s financial difficulties, the debtor’s creditors give the borrower an unconfirmed concession and report the overdue loan.

The aforementioned default and credit impairment definitions are used to consolidate all financial assets held by the Bank and are consistent with the definitions used for the internal credit risk management purposes of the financial assets, and are also applied to the relevant impairment assessment model.

iii) Measurement of expected credit losses

In order to assess the expected credit losses, the Bank divides the credit assets into the following combinations according to the credit risk characteristics such as the use of borrowing, industrial nature, collateral type and borrowing status.

Product Portfolio Corporation loans - secured Corporation loans Corporation loans - unsecured House mortgage Consumer loans - secured Consumer loans - unsecured Consumer loans Credit loans Debit card Credit card

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The Bank evaluates loss allowance of financial assets, which credit risk does not significantly increase after initial recognition based on 12 months expected credit losses. The Bank evaluates loss allowance of financial assets, which credit risk significantly increases after initial recognition based on lifetime expected credit losses.

In order to evaluate expected credit losses, the Bank takes into consideration the debtor’s probability of default (“PD”) within the next 12 months and lifetime, which includes the loss given default (“LGD”), the results are then multiplied by the exposure at default (“EAD”), while also considering the effect of time value of money to calculate the expected credit losses during the duration of 12 months and lifetime separately.

PD is the default percentage of a borrower. LGD is the loss ratio once a borrower defaults. The Bank applied PD and LGD to evaluate loan business impairment based on each portfolio’s historical information calculated internally (i.e., credit loss experience), and adjusted historical data based on current observable information and forward-looking macroeconomic information calculated by using packet direct estimation method.

The Bank evaluates the loan default risk by using packet direct estimation method. The Bank calculates 12-month and lifetime ECLs of financing commitment based on packet direct estimation method. The Bank uses credit conversion factor to calculate the portion of financing commitment expected to be used in 12 months after record date and the credit duration to calculate the default exposure amount of ECLs.

Consideration of forward-looking estimation

In estimating the expected credit losses, the Bank uses forward looking economic factors that affect credit risk and expected credit losses to consider forward looking information. Forward-looking information is based on the Taiwan National Development Council’s regular promulgation of the “Benefit Strategy Signal” of Taiwan’s overall prosperity as indicators, which are divided into boom expansion period, contraction period and flat period. The Bank evaluates the economic situation to adjust the default probability every quarter, and then incorporates it into the overall expected credit loss assessment.

ii. Debt instrument investment

The Bank considers the historical default loss rate provided by the external rating agencies and the current financial status of the debtor to calculate 12 months or lifetime ECLs of financing commitment in debt instrument investment.

The securities held by the Bank recognize the expected credit losses according to the expected credit losses during 12 months or lifetime of financing commitment. The credit quality of the Bank’s judgment securities was as follows:

• i) The determination that the credit risk has increased significantly since the initial recognition

The Bank assesses the change in the probability of default of debt instrument investment during the lifetime on each reporting date to determine if the credit risk has increased significantly since the initial recognition. In order to make this assessment, the Bank considerations show the reasonable and supportable information that the credit risk has increased significantly since the initial recognition. The main considerations include:

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Quantitative indicators

• At the time of initial recognition, the issuer’s credit rating is above the investment grade, but at the financial reporting date, the issuer’s credit rating is reduced to a non-investment grade.

• For debt instrument investments on the initial recognition date, the issuer’s credit rating is below the non-investment grade and the credit rating on the reporting day has not changed.

• When the issuer’s credit rating is a non-investment grade, the reported daily credit rating is reduced to a certain extent.

Qualitative indicators

• The credit rating of the issuer indicates that its credit risk has increased significantly.

• The fair value of the debt instrument investment is significantly and adversely changed on the reporting date.

• ii) Definition of default and credit-impairment financial assets

If the debt instrument investment meets one or more of the following conditions, it determines that the financial asset has defaulted and the credit is impaired.

Quantitative indicators

• Debt instrument investment is the credit impairment bond when it is purchased.

• The default rate for credit rating of the issuer or debt instrument investment will be adjusted on the reporting day.

Qualitative indicators

• The issuer modifies the issue conditions of the debt instrument investment due to financial difficulties or fails to pay the principal or interest according to the conditions of the issue.

• The issuer or the guarantee institution has ceased operations or has applied for reorganization, bankruptcy, dissolution, and sale of major assets that have a significant impact on the Bank’s continued operations.

Measurement of expected credit losses

• In order to evaluate expected credit losses, the Bank takes into consideration the debtor’s probability of default (“PD”) within the next 12 months, which includes the loss given default (“LGD”), the results are then multiplied by the exposure at default (“EAD”), while also considering the effect of time value of money to calculate the expected credit losses during the duration of 12 months.

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  • Comparing the risk of default on the dated debt instrument with the default risk at the time of initial recognition, and considering the reasonable and corroborative information for a significant increase in credit risk since the initial recognition, to determine whether the financial instrument’s credit risk has increased significantly since the initial recognition.

    • Those who meet the normal credit risk status will estimate the expected loss amount based on the one-year probability of default (PD).

    • Those who meet the significant increase in credit risk status must consider the duration of the asset project and calculate the probability of default (PD) for each duration. If the cash flow of the contract in the future period (i.e., the default exposure amount of each period) can be assessed, the cash flow method is used to assess the expected amount of credit loss, and if the cash flow of each period cannot be assessed, and the current risk calculation method is used it.

    • Those who meet the abnormal credit risk status are considered to be 100%, and will not consider the probability of default in each duration. Only consider the relevant recoverable amount and evaluate the overall expected credit loss amount.

    • Debt instrument investment probability of default is the value released by external credit rating agencies, which implies the possibility of future market fluctuations.

• d) Credit risk hedging or mitigation policies

• i. Collaterals

The Bank implements a series of policies and measures to reduce credit risks when granting of credit. One of the commonly used methods is to require borrowers to provide collaterals. To enforce the rights to collaterals, the Bank manages and assesses the collaterals according to the procedures adopted in determining the scope of collateralization and valuation of collaterals.

The main types of collateral for granting credit are as follows:

• i) Real estate.

ii) Chattels and rights of pledge.

iii) Guarantee from external agency.

To enhance guarantee of transaction risk, the Bank’s demand for collaterals depends on the nature of derivative transactions as follows:

• i) Guarantee of amount invested: Asking different ratio of guarantee based on the credit rating scale of clients.

• ii) Guarantee of high-risk transactions: Asking for collaterals when option contracts are under resale agreement.

• iii) Performance bond (loss on investment position): Asking for collaterals when loss on investment position exceeds the limit of approved market value.

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The Bank closely observed the value of pledged financial assets and evaluated which financial assets had been impaired in order to recognize allowance for impairment. Credit-impaired financial assets and its pledged values which eliminate potential loss, are as follows:

December 31, 2025

Financial assets that were impaired Notes discounted and loans Receivables Guarantees and letters of credit Total financial assets that were impaired December 31, 2024 Financial assets that were impaired Notes discounted and loans Receivables Guarantees and letters of credit Debt instrument Total financial assets that were impaired

Total Carrying Amount Allowance for Impairment Loss Total Value of Exposure Fair Value of Collateral $ 5,901,487 $ (1,175,540) $ 4,725,947 $ 4,763,820 223,635 (104,616) 119,019 26,107 44,611 (30,423) 14,188 1,041 $ 6,169,733 $ (1,310,579) $ 4,859,154 $ 4,790,968 Total Carrying Amount Allowance for Impairment Loss Total Value of Exposure Fair Value of Collateral $ 6,276,108 $ (1,272,189) $ 5,003,919 $ 5,003,919 149,947 (75,844) 74,103 20,026 44,677 (28,807) 15,870 3,337 8,947 (8,947) - - $ 6,479,679 $ (1,385,787) $ 5,093,892 $ 5,027,282

ii. Credit risk concentration limits and control

To avoid the concentration of credit risks, the Bank has included credit limits for the same person (entity) and for the same related-party corporation (Bank) based on the credit risk arising from loans, securities investment and derivatives transactions.

Meanwhile, for trading and banking book investments, the Bank has set a ratio, which is the credit limit of a single issuer in relation to the total security position. The Bank has also included credit limits for a single counterparty and a single Bank.

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In addition, to manage the concentration risk of the financial assets, the Bank has set credit limits by industry, conglomerate, country and transactions collateralized by shares, and integrated within one system to supervise the concentration of credit risk in these categories. The Bank monitors concentration of each asset and controls various types of credit risk concentration in a single transaction involving counterparties, Banks, related-party corporations, industries and nations.

iii. Other credit enhancements

To reduce its credit risks, the Bank stipulates in its credit contracts the term for offsetting which clearly stated that the Bank reserves the right to offset the borrowers’ debt against their deposits in the Bank.

e) Maximum exposure to credit risk

The maximum exposures of assets on the balance sheets to credit risks without consideration of guarantees or other credit enforcement instruments approximate the assets’ carrying amounts. The maximum exposures of off-balance sheet items to credit risks without consideration of guarantees or other credit enforcement instrument were as follows:

Loans commitments Guarantee receivables Letters of credit	December 31
	2025 2024 $ 77,079,972 $ 72,140,916 45,241,863 38,123,697 3,537,598 3,839,521

The management of the Bank believes their abilities to minimize the credit risk exposures of the off-balance sheet items are mainly attributed to their rigorous evaluation of extended credit and the periodic reviews of these credits.

f) Credit risk concentration of the Bank

When the counterparty of financial product transactions is concentrated on one person, or when there are several counterparties but they are mostly engaged in similar economic activities and have similar economic characteristics, causing their abilities to fulfill contract obligations to be similarly affected by economic or other situations, credit risk concentration is deemed to have occurred. The characteristics of significant credit risk concentration include the nature of the debtor’s activities. The Bank’s transactions are not concentrated on a single customer or counterparty but spread among counterparties with similar industry types and operating regions. The contract amounts of significant credit risk concentration were as follows:

Object Private enterprise Natural person Government agencies Others		**December 31 **	**December 31 **
		2025 $ 337,761,584 326,452,799 - 22,142,652 $ 686,357,035	2024 $ 323,830,175 310,875,566 131,140 14,086,488 $ 648,923,369

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Credit Risk Profile by Bank or Industry Natural person Manufacturing Commercial Real estate and leasing Construction industry Servicing Finance and insurance Transportation warehousing and information communication Others Credit Risk Profile by Region Domestic Asia North America Others Credit Risk Profile by Collateral Unsecured Secured Real estate Letter of bank guarantee Debenture Chattel Notes receivable Shares Others		**December 31 **	**December 31 **
		2025 2024 $ 326,452,799 $ 310,875,566 72,362,271 79,003,948 51,882,681 51,831,133 111,663,306 97,472,134 34,077,259 31,097,798 16,400,639 14,472,432 26,671,526 28,652,907 13,216,911 12,085,029 33,629,643 23,432,422 $ 686,357,035 $ 648,923,369 December 31
		2025 2024 $ 639,345,273 $ 604,556,124 30,282,504 26,054,852 5,842,024 9,359,579 10,887,234 8,952,814 $ 686,357,035 $ 648,923,369 December 31
		2025 $ 131,420,722 489,943,024 18,664,374 25,403,237 5,598,963 2,583,350 8,315,599 4,427,766 $ 686,357,035	2024 $ 123,319,959 466,577,863 18,198,328 20,962,662 5,356,505 2,750,454 7,660,091 4,097,507 $ 648,923,369

g) Write-off policy

If one of the following events have occurred, overdue loans and delinquent receivables should have the estimated recoverable amount deducted and should then be written off as bad debt:

• The debtor may not recover all or part of the obligatory claim due to dissolution, disappearance, settlement, bankruptcy or other reasons.

• The appraisal value of collateral and asset of the main and subordinate debtors are very low, or the compensation is not available after deducting the amount of the first mortgage, or it is not beneficial that execution fee is close to or may exceed the Bank’s reimbursable amount.

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• The collateral and the assets of the main and subordinate debtors are auctioned off at multiple auctions, of which the Bank did not receive any benefit.

• Overdue loans and delinquent receivables which have been overdue for more than 2 years have been collected but not yet received.

• The minimum payable amount of credit card which is overdue for six months that should be written off in three months.

• h) Information of credit quality

• i. Notes discounted, loans and receivables

December 31, 2025

Product category Corporation loans Consumer loans Others Total carrying amount Allowance for doubtful accounts Recognized impairment loss under regulations				Notes Discounted and Loans	Notes Discounted and Loans	Notes Discounted and Loans
		Stage 1 12-month ECL $ 306,607,071 309,280,027 (1,559) 615,885,539 (2,507,226 ) - $ 613,378,313		Stage 2 Lifetime ECL $ 3,427,400 14,420,103 301 17,847,804 (864,859 ) - $ 16,982,945		Difference of Impairment Loss Stage 3 under Lifetime ECL Regulations $ 3,911,206 $ - 1,990,574 - (293) - 5,901,487 - (1,175,540 ) - - (3,448,356) $ 4,725,947 $ (3,448,356)	Total $ 313,945,677 325,690,704 (1,551) 639,634,830 (4,547,625 ) (3,448,356) $ 631,638,849

Product category Corporation loans Consumer loans Others Total carrying amount Allowance for doubtful accounts Recognized impairment loss under regulations						Receivables
		Stage 1 12-month ECL $ 1,294,901 1,032,737 79,808,263 82,135,901 (19,755 ) - $ 82,116,146		Stage 2 Lifetime ECL $ 19,792 42,733 - 62,525 (4,425 ) - $ 58,100		Difference of Impairment Loss Stage 3 under Lifetime ECL Regulations $ 138,090 $ - 58,117 - 27,428 - 223,635 - (104,616 ) - - (29,895) $ 119,019 $ (29,895)	Total $ 1,452,783 1,133,587 79,835,691 82,422,061 (128,796 ) (29,895) $ 82,263,370

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Product category Corporation loans Consumer loans Total carrying amount Allowance for doubtful accounts Recognized impairment loss under regulations				Loan Commitments	Loan Commitments	Loan Commitments
		Stage 1 12-month ECL $ 31,349,339 45,619,556 76,968,895 (162,160 ) - $ 76,806,735		Stage 2 Lifetime ECL $ - 111,077 111,077 (1,469 ) - $ 109,608		Difference of Impairment Loss Stage 3 under Lifetime ECL Regulations $ - $ - - - - - - - - (8,092) $ - $ (8,092)	Total $ 31,349,339 45,730,633 77,079,972 (163,629 ) (8,092) $ 76,908,251

Product category Corporation loan Total carrying amount Allowance for doubtful accounts Recognized impairment loss under regulations Product category Corporation loans Total carrying amount Allowance for doubtful accounts Recognized impairment loss under regulations				Guarantee Receivables	Guarantee Receivables	Guarantee Receivables
		Stage 1 12-month ECL $ 44,894,592 44,894,592 (337,062 ) - $ 44,557,530		Stage 2 Lifetime ECL $ 302,660 302,660 (29,322 ) - $ 273,338			Total $ 45,241,863 45,241,863 (396,807 ) (63,056) $ 44,782,000
		Stage 1 12-month ECL $ 3,537,598 3,537,598 (8,678 ) - $ 3,528,920		Stage 2 Lifetime ECL $ - - - - $ -		Difference of Impairment Loss Stage 3 under Lifetime ECL Regulations $ - $ - - - - - - (2,392) $ - $ (2,392)	Total $ 3,537,598 3,537,598 (8,678 ) (2,392) $ 3,526,528

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December 31, 2024

Product category Corporation loans Consumer loans Others Total carrying amount Allowance for doubtful accounts Recognized impairment loss under regulations Product category Corporation loans Consumer loans Others Total carrying amount Allowance for doubtful accounts Recognized impairment loss under regulations Product category Corporation loans Consumer loans Total carrying amount Allowance for doubtful accounts Recognized impairment loss under regulations				Notes Discounted and Loans	Notes Discounted and Loans	Notes Discounted and Loans
		Stage 1 12-month ECL $ 291,011,127 295,565,403 4,006 586,580,536 (2,430,196 ) - $ 584,150,340		Stage 2 Lifetime ECL $ 4,116,230 12,078,855 309 16,195,394 (1,042,766 ) - $ 15,152,628		Difference of Impairment Loss Stage 3 under Lifetime ECL Regulations $ 3,859,998 $ - 2,416,086 - 24 - 6,276,108 - (1,272,189 ) - - (2,629,102) $ 5,003,919 $ (2,629,102) Receivables	Total $ 298,987,355 310,060,344 4,339 609,052,038 (4,745,151 ) (2,629,102) $ 601,677,785
		Stage 1 12-month ECL $ 1,565,008 1,026,117 69,840,855 72,431,980 (23,403 ) - $ 72,408,577		Difference of Impairment Loss Stage 2 Stage 3 under Lifetime ECL Lifetime ECL Regulations $ 24,091 $ 73,902 $ - 38,674 47,829 - 15 28,216 - 62,780 149,947 - (5,722 ) (75,844 ) - - - (20,818) $ 57,058 $ 74,103 $ (20,818) Loan Commitments			Total $ 1,663,001 1,112,620 69,869,086 72,644,707 (104,969 ) (20,818) $ 72,518,920
		Stage 1 12-month ECL $ 23,597,188 48,307,082 71,904,270 (133,774 ) - $ 71,770,496		Stage 2 Lifetime ECL $ - 236,646 236,646 (2,053 ) - $ 234,593		Difference of Impairment Loss Stage 3 under Lifetime ECL Regulations $ - $ - - - - - - - - (5,603) $ - $ (5,603)	Total $ 23,597,188 48,543,728 72,140,916 (135,827 ) (5,603) $ 71,999,486

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Product category Corporation loans Total carrying amount Allowance for doubtful accounts Recognized impairment loss under regulations				Guarantee Receivables	Guarantee Receivables	Guarantee Receivables
		Stage 1 12-month ECL $ 38,004,233 38,004,233 (311,902 ) - $ 37,692,331		Stage 2 Lifetime ECL $ 74,787 74,787 (4,238 ) - $ 70,549		Difference of Impairment Loss Stage 3 under Lifetime ECL Regulations $ 44,677 $ - 44,677 - (28,807 ) - - (40,316) $ 15,870 $ (40,316)	Total $ 38,123,697 38,123,697 (344,947 ) (40,316) $ 37,738,434

Product category Corporation loans Total carrying amount Allowance for doubtful accounts Recognized impairment loss under regulations					Letters of Credit	Letters of Credit
		Stage 1 12-month ECL $ 3,839,521 3,839,521 (9,545 ) - $ 3,829,976		Stage 2 Lifetime ECL $ - - - - $ -		Difference of Impairment Loss Stage 3 under Lifetime ECL Regulations $ - $ - - - - - - (3,610) $ - $ (3,610)	Total $ 3,839,521 3,839,521 (9,545 ) (3,610) $ 3,826,366

ii. Debt instrument investments

December 31, 2025

Product category (Note) Investment grade bond Non-investment grade bond Total carrying amount Allowance for impairment Recognized impairment loss under regulations Product category (Note) Investment grade bond Non-investment grade bond Others (NCDs issued by the CBC) Total carrying amount Allowance for impairment Recognized impairment loss under regulations				Financial Assets	Financial Assets	at FVTOCI
		Stage 1 12-month ECL $ 94,124,875 - 94,124,875 (43,578 ) - $ 94,081,297		Stage 2 Stage 3 Lifetime ECL Lifetime ECL $ - $ - - - - - - - - - $ - $ - Financial Assets at Amortized Cost			Total $ 94,124,875 - 94,124,875 (43,578 ) - $ 94,081,297
		Stage 1 12-month ECL $ 52,787,462 - 51,168,344 103,955,806 (27,986 ) - $ 103,927,820		Stage 2 Lifetime ECL $ - - - - - - $ -		Stage 3 Lifetime ECL $ - - - - - - $ -	Total $ 52,787,462 - 51,168,344 103,955,806 (27,986 ) - $ 103,927,820

Note: The bond rating is based on the original credit rating of Moody’s, Fitch (Fitch), Standard & Poor’s (S&P) and China Credit Rating.

• 99 -

The breakdown below shows the Bank’s investments in debt instruments classified as financial assets at FVTOCI and financial assets at amortized cost:

December 31, 2025

		Financial Assets
	Financial Assets	at Amortized
	at FVTOCI	Cost
Total carrying amount	$ 95,600,788	$ 103,955,806
Loss allowance	(43,578)	(27,986)
Amortized cost	95,557,210	103,927,820
Fair value adjustment	(1,475,913)	-
	$ 94,081,297	$ 103,927,820

The Bank’s current credit risk rating mechanism and the total carrying amount of the investments in debt instruments of each credit rating are as follows:

Credit Rating	Definition	Recognition Basis	Expected Credit Loss	Total Carrying Amount At December 31, 2025	Total Carrying Amount At December 31, 2025
				Financial Assets at FVTOCI	Financial Assets at Amortized Cost
Normal (Stage 1) Abnormal (Stage 2) Default (Stage 3) Write offs	The debtor has a low credit risk and is fully capable of paying off contractual cash flows. Credit risk has increased significantly since the initial recognition. There is evidence that the credit is impaired. There is evidence that the debtor is facing serious financial difficulties and the Bank cannot reasonably expect to recover the debt.	12-month expected credit losses Lifetime expected credit losses (no credit impaired) Lifetime expected credit losses (credit impaired) Write-off	0.00%-0.34% - - -	$ 95,600,788 - - -	$ 103,955,806 - - -

With respect to the Bank’s investments in debt instruments at FVTOCI and at amortized cost information on the changes in their loss allowance summarized by credit risk rating is as follows:

Financial assets at FVTOCI Balance at January 1, 2025 Change in credit rating Normal turned to abnormal Abnormal turned to default Default turned to write off	Credit Rating
	Normal (12-Month Expected credit Losses) Abnormal (Lifetime ECL and not Credit Impaired) Default (Lifetime ECL and Credit Impaired) $ 45,187 $ - $ - - - - - - - - - - (Continued)

• 100 -

Purchase of new debt instruments Disposal Model/risk parameter change Exchange rate and other changes Loss allowance at December 31, 2025 Financial assets at amortized cost Balance at January 1, 2025 Change in credit rating Normal turned to abnormal Abnormal turned to default Default turned to write off Purchase of new debt instruments Disposal Model/risk parameter change Exchange rate and other changes Loss allowance at December 31, 2025

Credit Rating

Normal (12-Month Expected credit Losses) Abnormal (Lifetime ECL and not Credit Impaired) Default (Lifetime ECL and Credit Impaired) $ 7,821 $ - $ - (8,206) - - - - - (1,224) - - $ 43,578 $ - $ - $ 29,031 $ - $ 8,947 - - - - - - - - - 2,868 - - (3,904) (7,960) - - - (9) (987) $ 27,986 $ - $ - (Concluded)

December 31, 2024

Product category (Note) Investment grade bond Non-investment grade bond Total carrying amount Allowance for impairment Recognized impairment loss under regulations Product category (Note) Investment grade bond Non-investment grade bond Others (NCDs issued by the CBC) Total carrying amount Allowance for impairment Recognized impairment loss under regulations				Financial Assets	Financial Assets	at FVTOCI
		Stage 1 12-month ECL $ 94,102,200 - 94,102,200 (45,187 ) - $ 94,057,013		Stage 2 Stage 3 Lifetime ECL Lifetime ECL $ - $ - - - - - - - - - $ - $ - Financial Assets at Amortized Cost			Total $ 94,102,200 - 94,102,200 (45,187 ) - $ 94,057,013
		Stage 1 12-month ECL $ 59,821,490 - 48,555,321 108,376,811 (29,031 ) - $ 108,347,780		Stage 2 Lifetime ECL $ - - - - - - $ -		Stage 3 Lifetime ECL $ - 8,947 - 8,947 (8,947 ) - $ -	Total $ 59,821,490 8,947 48,555,321 108,385,758 (37,978 ) - $ 108,347,780

• 101 -

Note: The bond rating is based on the original credit rating of Moody’s, Fitch (Fitch), Standard & Poor’s (S&P) and China Credit Rating.

The breakdown below shows the Bank’s investments in debt instruments classified as financial assets at FVTOCI and financial assets at amortized cost:

December 31, 2024

		Financial Assets
	Financial Assets	at Amortized
	at FVTOCI	Cost
Total carrying amount	$ 96,137,841	$ 108,385,758
Loss allowance	(45,187)	(37,978)
Amortized cost	96,092,654	108,347,780
Fair value adjustment	(2,035,641)	-
	$ 94,057,013	$ 108,347,780

The Bank’s current credit risk rating mechanism and the total carrying amount of the investments in debt instruments of each credit rating are as follows:

Credit Rating	Definition	Recognition Basis	Expected Credit Loss	Total Carrying Amount At December 31, 2024	Total Carrying Amount At December 31, 2024
				Financial Assets at FVTOCI	Financial Assets at Amortized Cost
Normal (Stage 1) Abnormal (Stage 2) Default (Stage 3) Write offs	The debtor has a low credit risk and is fully capable of paying off contractual cash flows. Credit risk has increased significantly since the initial recognition. There is evidence that the credit is impaired. There is evidence that the debtor is facing serious financial difficulties and the Bank cannot reasonably expect to recoverthe debt.	12-month expected credit losses Lifetime expected credit losses (no credit impaired) Lifetime expected credit losses (credit impaired) Write-off	0.00%-0.51% - 100% -	$ 96,137,841 - - -	$ 108,376,811 - 8,947 -

• 102 -

With respect to the Bank’s investments in debt instruments at FVTOCI and at amortized cost information on the changes in their loss allowance summarized by credit risk rating is as follows:

Financial assets at FVTOCI Balance at January 1, 2024 Change in credit rating Normal turned to abnormal Abnormal turned to default Default turned to write off Purchase of new debt instruments Disposal Model/risk parameter change Exchange rate and other changes Loss allowance at December 31, 2024 Financial assets at amortized cost Balance at January 1, 2024 Change in credit rating Normal turned to abnormal Abnormal turned to default Default turned to write off Purchase of new debt instruments Disposal Model/risk parameter change Exchange rate and other changes Loss allowance at December 31, 2024

Credit Rating

Normal (12-Month Expected credit Losses) Abnormal (Lifetime ECL and not Credit Impaired) Default (Lifetime ECL and Credit Impaired) $ 33,941 $ - $ - - - - - - - - - - 15,751 - - (4,142) - - - - - (363) - - $ 45,187 $ - $ - $ 31,548 $ - $ 8,378 - - - - - - - - - 1,419 - - (2,887) - - - - - (1,049) - 569 $ 29,031 $ - $ 8,947

• 3) Liquidity risk

• a) The source and definition of liquidity risk:

Liquidity risk refers to the potential loss resulting from the shortage of funds in acquiring assets or repaying debts on maturity, such as the cash outflow arising from the depositors’ withdrawal of deposits, loan drawdown, other interest, expenses, or off-balance sheet transactions. To ensure sufficient capital liquidity, measures that can be taken include enough cash buffer in shares or readily realizable marketable securities, allocation of the period, absorbing deposits or financing borrowing, etc.

• 103 -

• b) The Bank’s liquidity risk policies

The Bank establishes a strategy based on the conservatism principle to diversify the source and duration of funds, participates in the fund’s lending market and maintains strong relationship with fund providers to ensure the stability and reliability of funding sources.

The Bank formulates relevant standards including risk identification, measurement, monitoring and reporting in order to control and grasp the potential adverse effects, regularly performs stress tests and analyzes the crisis situation to mitigate the impact of excessive capital flows, establishes a limit monitoring mechanism, and sets management indicators such as liquidity ratios, cash flow gaps, etc.

The Bank’s liquidity risk management unit is the Asset and Liability Management Committee (hereinafter referred to as the “Committee”). The Committee must adopt necessary monitoring steps to maintain adequate liquidity and ensure that certain committees should regularly report to the board of directors for effective management of liquidity risks.

Maturity analysis of non-derivative financial liabilities

The Bank disclosed the analysis of cash outflows from non-derivative financial liabilities by the residual maturities as of the balance sheet date. The amounts used in the maturity analyses of derivative financial liabilities are based on contractual cash flows, so some of these amounts may not correspond to the amounts shown on the balance sheets.

December 31, 2025	0-30 Days	31-90 Days	91-180 Days	181 Days - **1 Year **	Over 1 Year	Total
Due to the Central Bank and other banks Securities sold under repurchase agreements Payables Deposits and remittances Bank debentures Lease liabilities Other items ofcashoutflow on maturity	$ 8,887,053 2,595,408 15,525,253 101,184,059 - 15,095 7,280	$ 3,457,190 7,646,537 1,975,036 123,383,659 - 29,342 8,571	$ 730 - 353,078 94,932,924 - 43,182 31,181	$ 2,511,970 - 309,818 172,446,392 39,177 83,724 63,356	$ - - 476,301 354,286,636 15,150,000 833,126 6,624,859	$ 14,856,943 10,241,945 18,639,486 846,233,670 15,189,177 1,004,469 6,735,247
December 31, 2024	0-30 Days	31-90 Days	91-180 Days	181 Days - **1 Year **	Over 1 Year	Total
Due to the Central Bank and other banks Securities sold under repurchase agreements Payables Deposits and remittances Bank debentures Lease liabilities Other items of cash outflow on maturity	$ 18,163,190 4,447,220 16,289,544 72,958,636 - 15,393 11,877	$ 1,475,325 8,524,321 811,363 122,947,669 - 30,685 64,670	$ 730 - 305,908 84,881,614 - 46,008 25,139	$ 11,970 - 236,459 179,566,871 78,328 92,400 73,980	$ - - 351,493 349,293,490 13,500,000 1,031,694 4,573,973	$ 19,651,215 12,971,541 17,994,767 809,648,280 13,578,328 1,216,180 4,749,639

Maturity analysis of derivative financial liabilities

• a) Derivative instruments settled at net amount

Derivative instruments settled at net amount include:

Foreign exchange derivative instruments: Foreign exchange forward contracts.

• 104 -

The Bank assesses the maturity dates of derivative contracts to understand the basic elements of all derivative financial instruments shown on the balance sheets. The amounts used in the balance sheets are based on contractual cash flows. Therefore, some amounts may not correspond to the amounts shown on the balance sheets. The maturity analysis of derivative financial liabilities was as follows:

December 31, 2025	0-30 Days	31-90 Days	91-180 Days	181 Days - **1 Year **	Over 1 Year	Total
Derivative financial liabilities at FVTPL Foreigncurrency derivative	$ 66,902	$164,325	$184,951	$142,505	$ -	$ 558,683
December 31, 2024	0-30 Days	31-90 Days	91-180 Days	181 Days - **1 Year **	Over 1 Year	Total
Derivative financial liabilities at FVTPL Foreigncurrency derivative	$ 76,158	$178,460	$119,898	$ 64,455	$ -	$438,971

b) Derivative instruments settled at gross amount

The derivative instruments settled at gross amount include:

Foreign exchange derivatives instruments: Foreign exchange forward contracts and cross-currency swap contracts.

The Bank disclosed the analysis of derivative instruments to be settled at gross amount by the residual maturities as of the balance sheet date. The Bank assesses the maturity dates of derivative contracts to understand the basic elements of all derivative financial instruments shown in the balance sheets. The amounts used in the maturity analyses of derivative financial liabilities are based on contractual cash flows, so some of these amounts may not correspond to the amounts shown on the balance sheets. The maturity analysis of derivative financial liabilities to be settled at gross amount was as follows:

December 31, 2025	0-30 Days	31-90 Days	91-180 Days	181 Days - **1 Year **	Over 1 Year	Total
Derivative financial liabilities at FVTPL Foreign currency derivative Outflows Inflows	$ 108,405,344 107,493,112	$ 17,384,949 17,236,443	$ 6,029,314 5,925,232	$ 15,027,915 14,838,188	$ - -	$ 146,847,522 145,492,975
Total outflows Total inflows	108,405,344 107,493,112	17,384,949 17,236,443	6,029,314 5,925,232	15,027,915 14,838,188	- -	146,847,522 145,492,975
Net flows	$ (912,232)	$ (148,506)	$ (104,082)	$ (189,727)	$ -	$ (1,354,547)
December 31, 2024	0-30 Days	31-90 Days	91-180 Days	181 Days - **1 Year **	Over 1 Year	Total
Derivative financial liabilities at FVTPL Foreign currency derivative Outflows Inflows	$ 75,968,576 75,386,246	$ 15,560,576 15,393,443	$ 11,737,237 11,644,901	$ 20,701,989 20,048,600	$ - -	$ 123,968,378 122,473,190
Total outflows Total inflows	75,968,576 75,386,246	15,560,576 15,393,443	11,737,237 11,644,901	20,701,989 20,048,600	- -	123,968,378 122,473,190
Net flows	$ (582,330)	$ (167,133)	$ (92,336)	$ (653,389)	$ -	$ (1,495,188)

• 105 -

• 4) Maturity analysis of off-balance-sheet items

The following table shows the Bank’s maturity analysis of off-balance sheet items based on the residual maturities from the balance sheets. For the financial guarantee contract issued, the maximum amount of guarantee is included in the earliest period that may be required to perform the guarantee. The amounts in the table below were prepared on contractual cash flow basis; therefore, some disclosed amounts would not match with the balance sheets.

December 31, 2025	0-30 Days	31-90 Days	91-180 Days	181 Days - **1 Year **	Over 1 Year	Total
Loan commitment Letters of credit Guaranteereceivables	$ 17,334,269 609,999 4,276,272	$ 23,736,221 2,641,337 5,650,508	$ 35,930,372 285,430 2,821,798	$ 70,982,076 832 5,259,527	$ 69,509,332 - 27,233,758	$ 217,492,270 3,537,598 45,241,863
Total	$ 22,220,540	$ 32,028,066	$ 39,037,600	$ 76,242,435	$ 96,743,090	$266,271,731
December 31, 2024	0-30 Days	31-90 Days	91-180 Days	181 Days - **1 Year **	Over 1 Year	Total
Loan commitment Letters of credit Guaranteereceivables	$ 8,639,171 1,203,496 5,192,049	$ 17,662,810 2,564,734 4,287,617	$ 38,438,298 71,291 2,496,166	$ 74,714,766 - 4,181,881	$ 80,298,439 - 21,965,984	$ 219,753,484 3,839,521 38,123,697
Total	$ 15,034,716	$ 24,515,161	$ 41,005,755	$ 78,896,647	$102,264,423	$261,716,702

• 5) Cash flow and fair value risk of interest rate fluctuation

The floating-rate assets/liabilities held by the Bank may be exposed to risks of future cash inflow/outflow. Since the risk is considered substantial, it is therefore hedged by the Bank.

• 6) Sustainability and Climate Risk

• a) The Board of Directors is the Bank’s highest governing body for sustainability and climate risk. The Bank has established a Sustainability Development Committee and a Risk Management Committee to oversee matters related to sustainability development, climate risk management, and financial disclosures, and to regularly review the effectiveness of their implementation.

• b) In response to the transition to a low-carbon economy, the Bank introduced the climate-related financial disclosure framework in 2022. The Bank has prepared its TCFD report in accordance with the Guidelines for Climate-Related Financial Disclosures for Domestic Banks, the recommendations of the Financial Stability Board (FSB), and with reference to the Practical Handbook on Climate-Related Risk Management for Domestic Banks issued by the Bankers Association of the Republic of China. The disclosures are structured around the four core elements: Governance, strategy, risk management, and metrics and targets, and are available on the Bank’s website. The Bank will continue to enhance its management resilience of climate risk and sustainable operations through a sound governance framework and ongoing improvement in disclosures, and to support the transition to a low-carbon and sustainable future.

• 106 -

38. TRANSFERS OF FINANCIAL ASSETS

The Transferred Financial Assets That Do not Qualify for Derecognition

Most of the transferred financial assets of the Bank that are not derecognized in their entirety are securities sold under repurchase agreements. According to these transactions, the right of the receiving cash flows from the transferred financial assets would be transferred to other entities and the associated liabilities of the Bank’s obligation to repurchase the transferred financial assets at a fixed price in the future would be recognized. As the Bank is restricted to use, sell or pledge the transferred financial assets throughout the term of transaction, and is still exposed to interest rate risks and credit risks on these instruments, the transferred financial assets are not derecognized in their entirety. The details of financial assets that were not derecognized in their entirety and the associated financial liabilities were as follows:

	December 31, 2025	December 31, 2025	December 31, 2025
Category of Financial Assets	Carrying Amount of Transferred Financial Assets	Carrying Amount of Associated Financial Liabilities	Fair Value of Transferred Financial Assets	Fair Value of Associated Financial Liabilities	Fair Value of Net Position
Financial assets at FVTOCI Securities sold under repurchase agreements Investments in debt instruments at amortized cost Securities sold under repurchase agreements	$ 9,258,293 1,385,797	$ 8,832,999 1,335,694	$ 8,808,842 1,372,312	$ 8,832,999 1,335,694	$ (24,157) 36,618
	December 31, 2024
Category of Financial Assets	Carrying Amount of Transferred Financial Assets	Carrying Amount of Associated Financial Liabilities	Fair Value of Transferred Financial Assets	Fair Value of Associated Financial Liabilities	Fair Value of Net Position
Financial assets at FVTOCI Securities sold under repurchase agreements Investments in debt instruments at amortized cost Securities sold under repurchase agreements	$ 9,945,752 3,824,050	$ 9,288,770 3,555,453	$ 9,465,809 3,719,339	$ 9,288,770 3,555,453	$ 177,039 163,886

39. OFFSETTING FINANCIAL ASSETS AND FINANCIAL LIABILITIES

The Bank did not hold financial instruments covered by Section 42 of the IAS 32 “Financial Instruments: Presentation” endorsed by the Financial Supervisory Commission; thus, it made an offset of financial assets and liabilities and reported the net amount in the balance sheets.

The Bank engages in transactions on the following financial assets and liabilities that are not subject to balance sheet offsetting based on IAS 32 but are under master netting arrangements or similar agreements. These agreements allow both the Bank and its counterparties to opt for the net settlement of financial assets and financial liabilities. If one party defaults, the other party may choose net settlement.

• 107 -

The netting information of financial assets and financial liabilities is set out below:

December 31, 2025

Gross Amounts Gross Amounts of Recognized Financial Liabilities Net Amounts of Financial Assets Presented in Financial Assets of Recognized Financial Assets Offset in the Balance Sheets the Balance Sheets Securities purchased under resale agreements $ 16,180,210 $ - $ 16,180,210 Gross Amounts Net Amounts of Gross Amounts of Recognized of Recognized Financial Assets Financial Liabilities Financial Liabilities Financial Liabilities Offset in the Balance Sheets Presented in the Balance Sheets Securities sold under repurchase agreements $ 10,168,693 $ - $ 10,168,693 December 31, 2024 Gross Amounts Gross Amounts of Recognized Financial Liabilities Net Amounts of Financial Assets Presented in Financial Assets of Recognized Financial Assets Offset in the Balance Sheets the Balance Sheets Securities purchased under resale agreements $ 8,241,776 $ - $ 8,241,776 Gross Amounts Net Amounts of Gross Amounts of Recognized of Recognized Financial Assets Financial Liabilities Financial Liabilities Financial Liabilities Offset in the Balance Sheets Presented in the Balance Sheets Securities sold under repurchase agreements $ 12,844,223 $ - $ 12,844,223	Related Amounts Not Offset in the Balance Sheets Financial Instruments Cash Collateral Received $ 16,180,210 $ - Related Amounts Not Offset in the Balance Sheets Financial Instruments Cash Collateral Received $ 10,168,693 $ - Related Amounts Not Offset in the Balance Sheets Financial Instruments Cash Collateral Received $ 8,241,776 $ - Related Amounts Not Offset in the Balance Sheets Financial Instruments Cash Collateral Received $ 12,844,223 $ -	Net Amount $ -
		Net Amount $ -
		Net Amount $ -
		Net Amount $ -

• 108 -

40. INFORMATION ABOUT THE BANK

a. Asset quality

Category	Items	Items			December 31, 2025					December 31, 2024
			Non-performing Loan (Note 1)	Total Loan	NPL Ratio (Note 2)	Allowance For Loan Losses	Coverage Ratio (Note 3)	Non-performing Loan (Note 1)	Total Loan	NPL Ratio (Note 2)	Allowance For Loan Losses	Coverage Ratio (Note 3)
Corporate loans	Secured		$ 512,623	$177,808,404	0.29%	$ 2,172,099	423.72%	$ 102,659	$170,661,662	0.06%	$ 2,095,393	2,041.12%
	Unsecured		579,200	136,137,273	0.43%	1,942,991	335.46%	58,834	128,325,692	0.05%	1,566,165	2,662.01%
Consumer loans	Mortgage (Note4)		202,004	95,072,632	0.21%	1,430,565	708.19%	65,698	90,679,729	0.07%	1,361,387	2,072.19%
	Cashcard		-	-	-	-	-	-	-	-	-	-
	Microcredit (Note 5)		2,575	622,352	0.41%	12,896	500.82%	317	589,523	0.05%	7,189	2,267.82%
	Other (Note 6)	Secured	187,993	188,577,763	0.10%	1,996,551	1,062.03%	100,225	180,225,195	0.06%	1,903,672	1,899.40%
		Unsecured	64,042	41,417,957	0.15%	440,879	688.42%	31,627	38,565,898	0.08%	440,447	1,392.63%
Loans			1,548,437	639,636,381	0.24%	7,995,981	516.39%	359,360	609,047,699	0.06%	7,374,253	2,052.05%
Category		Items			December 31, 2025					December 31, 2024
			Overdue Receivable	Accounts Receivable	Delinquency Ratio	Allowance for Credit Losses	Coverage Ratio	Overdue Receivable	Accounts Receivable	Delinquency Ratio	Allowance for Credit Losses	Coverage Ratio
Credit card			$ 1,846	$ 764,438	0.24%	$ 20,334	1,101.52%	$ 1,952	$ 810,634	0.24%	$ 20,648	1,057.79%
Accountsrec	eivable withoutreco	urse (Note7)	31,429	196,405	16.00%	34,012	108.22%	-	215,200	-	8,085	-

• 109 -

Non-reportable overdue loans and receivables

	December 31, 2025	December 31, 2025	December 31, 2024	December 31, 2024
	Non-Reportable NPL Balance	Non-reportable Overdue Receivable Balance	Non-Reportable NPL Balance	Non-reportable Overdue Receivable Balance
Non-reportable amount upon performance of debt negotiation program (Note 8)	$ 119	$ 135	$ 293	$ 198
Amount received from performance of debt negotiationprogram(Note 9)	7,667	12,354	6,494	11,881
Total	7,786	12,489	6,787	12,079

• Note 1: The amount recognized as non-performing loans (NPL) is in compliance with the “Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non-performing/Non-accrual Loans”. Non-performing credit loans represent the amounts of non-performing loans reported to the FSC, as required by the FSC in its letter dated July 6, 2005 (Ref. No. 0944000378).

• Note 2: Non-performing loan ratio = Non-performing loans ÷ Outstanding loan balance; Non-performing credit loan ratio = Non-performing loans ÷ Accounts receivable balance.

• Note 3: Allowance for doubtful accounts ratio = Allowance for doubtful accounts in loans ÷ Overdue loans; Allowance for doubtful accounts ratio of credit card = Allowance for doubtful accounts in credit cards ÷ Overdue loans.

• Note 4: Home mortgage refers to financing obtained to buy, build, or fix houses owned by the borrowers’ spouse or children, with the house used as loan collateral.

• Note 5: Microcredit is covered by the FSC pronouncement dated December 19, 2005 (Ref No. 09440010950) and is excluded from credit card and cash card loans.

• Note 6: “Others” under consumer loans refers to secured or unsecured loans other than mortgage loans, cash cards, microcredit, and credit cards.

• Note 7: As required by the FSC in its letter dated July 19, 2005 (Ref No. 0945000494), a provision for bad debts is recognized once no compensation is made by a factor or insurance company for accounts receivable factored without recourse.

• Note 8: Accounts under “loans not required to be classified as NPL upon performance of a debt negotiation program” and “accounts receivable not required to be classified as overdue receivable upon debt negotiation program” were processed according the FSC pronouncement dated April 25, 2006 (Ref No. 09510001270).

• Note 9: Accounts under “loans not required to be classified as NPL upon performance of a debt discharge program and rehabilitation program” and “accounts receivable not required to be classified as overdue receivable upon debt discharge program and rehabilitation program” were processed according the FSC pronouncement dated September 15, 2008 (Ref No. 09700318940), the FSC pronouncement dated September 20, 2016 (Ref No. 10500134790).

• 110 -

b. Concentration of credit extensions

(In Thousands of New Taiwan Dollars, %)

Year	December 31, 2025
Top 10 Rank (Note 1)	Bank (Note 2)	Total Credit (Note 3)	Percentage of Net Worth (%)
1	Group A 016700 real estate development activities	$ 5,081,170	5.54
2	Group B 016700 real estate development activities	4,867,306	5.30
3	Group C 016700 real estate development activities	3,225,547	3.52
4	Group D 016700 real estate development activities	2,606,866	2.84
5	Group E 016499 other non-classified financial service	2,444,575	2.66
6	Group F 016811 real estate leasing and selling	2,337,104	2.55
7	Group G 016499 other non-classified financial service	2,266,200	2.47
8	Group H 016499 other non-classified financial service	2,014,282	2.20
9	Group I 014290 civil engineering constructions	1,993,421	2.17
10	Group J 016510 personal insurance	1,967,097	2.14

Year	December 31, 2024
Top 10 Rank (Note 1)	Bank (Note 2)	Total Credit (Note 3)	Percentage of Net Worth (%)
1	Group C 016700realestate development activities	$ 4,686,360	5.71
2	Group B 016700realestate development activities	4,613,129	5.62
3	Group A 016700realestate development activities	4,479,747	5.46
4	Group K 014100 construction industry	2,555,875	3.11
5	Group J 016510 Personal Insurance	2,486,088	3.03
6	Group L 012411smelting andrefining of ironand steel	2,451,990	2.99
7	Group D 016700realestate development activities	2,255,434	2.75
8	Group M 015010 oceantransportation	2,044,693	2.49
9	Group N 010892 manufacture of macaroni, noodles, couscous and similar farinaceous products	1,673,687	2.04
10	Group O 016700 real estate development activities	1,620,771	1.97

• 111 -

• Note 1: The ranking is arranged in descending order of the outstanding loan balance, excluding all the government entities and nation-owned enterprises. If the borrower is a member company of a Bank, then the disclosed amount will be the total granted loan amount for that entire Bank. (i.e., Bank A real estate development activities).

• Note 2: According to Article 6 of the “Supplementary Provisions to the Stock Exchange Corporation Criteria for the Review of Securities Listings”, Bank refers to the entity that has a controlling or subordinate relationship with the counterparty that obtained loans from the Bank.

• Note 3: Credit balance means the sum of all the loans (including import bill negotiated, discounted export bills negotiated, overdrafts, short-term secured and unsecured loans, securities margin loan receivables, medium-term secured and unsecured loans, long-term secured and unsecured loans and delinquent receivables), exchange bills negotiated, accounts receivable factored without recourse, acceptances receivable, and guarantees issued.

• c. Interest rate sensitivity information

Interest Rate Sensitivity December 31, 2025

(In Thousands of New Taiwan Dollars, %)

Items	1 to 90 Days	91 to 180 Days	181 Days to **One Year **	Over One Year	Total
Interest-sensitive assets	$ 634,983,739	$ 12,236,211	$ 20,206,688	$ 137,518,358	$ 804,944,996
Interest-sensitive liabilities	220,121,891	419,674,559	105,763,804	11,050,852	756,611,106
Interest sensitivity gap	414,861,848	(407,438,348)	(85,557,116)	126,467,506	48,333,890
Net equity					91,749,451
Ratio of interest-sensitive assets toliabilities					106.39%
Ratio of interest sensitivity gap to net equity					52.68%

December 31, 2024

(In Thousands of New Taiwan Dollars, %)

Items	1 to 90 Days	91 to 180 Days	181 Days to One Year	Over One Year	Total
Interest-sensitive assets	$ 592,858,391	$10,564,482	$10,970,967	$143,208,053	$ 757,601,893
Interest-sensitive liabilities	198,140,479	399,248,938	110,160,593	10,372,757	717,922,767
Interest sensitivity gap	394,717,912	(388,684,456)	(99,189,626)	132,835,296	39,679,126
Net equity					82,091,384
Ratio of interest-sensitive assets to liabilities					105.53%
Ratio of interest sensitivity gap tonet equity					48.34%

• Note 1: The above amounts included only the New Taiwan dollar amounts held by the head office and branches of the Bank (i.e., excluding foreign currency) and excluded contingent assets and contingent liabilities.

• Note 2: Interest rate-sensitive assets and liabilities mean the revenues or costs of interest-earning assets and interest-bearing liabilities affected by interest rate changes.

• 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 (in New Taiwan dollars).

• 112 -

Interest Rate Sensitivity December 31, 2025

(In Thousands of U.S. Dollars, %)	(In Thousands of U.S. Dollars, %)	(In Thousands of U.S. Dollars, %)	(In Thousands of U.S. Dollars, %)	(In Thousands of U.S. Dollars, %)	(In Thousands of U.S. Dollars, %)
Items	1 to 90 Days	91 to 180 Days	181 Days to **One Year **	Over One Year	Total
Interest-sensitive assets	$ 1,625,917	$ 213,318	$ 23,385	$ 841,238	$ 2,703,858
Interest-sensitiveliabilities	2,248,969	951,986	241,324	-	3,442,279
Interest sensitivity gap	(623,052)	(738,668)	(217,939)	841,238	(738,421)
Net equity					2,919,261
Ratio of interest-sensitive assets to liabilities					78.55%
Ratio of interest sensitivity gap to net equity					(25.29%)

December 31, 2024

(In Thousands of U.S. Dollars, %)

Items	1 to 90 Days	91 to 180 Days	181 Days to One Year	Over One Year	Total
Interest-sensitive assets	$ 1,528,746	$ 274,685	$ 63,141	$ 885,592	$ 2,752,164
Interest-sensitive liabilities	2,512,073	836,777	230,340	-	3,579,190
Interest sensitivity gap	(983,327)	(562,092)	(167,199)	885,592	(827,026)
Net equity					2,503,931
Ratio of interest-sensitive assets to liabilities					76.89%
Ratio of interest sensitivity gap to net equity					(33.03%)

• Note 1: The above amounts included only the U.S. dollar amounts held by the head office, domestic branches, OBU and overseas branches of the Bank and excluded contingent assets and contingent liabilities.

• Note 2: Interest rate-sensitive assets and liabilities mean the revenues or costs of interest-earning assets and interest-bearing liabilities affected by interest rate changes.

• 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 (in U.S. dollars).

• d. Profitability

Unit: %

	Items	December 31, 2025	December 31, 2024
Return on total assets	Pretax	1.09	1.07
	After tax	0.93	0.91
Return on net equity	Pretax	12.24	12.21
	After tax	10.42	10.46
Profitmargin		46.65	46.31

• Note 1: Return on total assets = Income before (after) income tax ÷ Average total assets.

• Note 2: Return on equity = Income before (after) income tax ÷ Average equity.

• Note 3: Net Profit margin = Income after income tax ÷ Total net revenues.

• Note 4: Income before (after) income tax represents income for the years ended December 31, 2025 and 2024.

• 113 -

• e. Maturity analysis of assets and liabilities

Maturity Analysis of Assets and Liabilities December 31, 2025

(In Thousands of New Taiwan Dollars)

	Total		**Period **	Remaining until D	ue Date and Amo	unt Due
		0-10 Days	11-30 Days	31-90 Days	91-180 Days	181 Days - 1 **Year **	Over 1 Year
Major capital inflow on maturity	$ 880,264,972	$101,715,263	$ 58,176,540	$ 48,087,744	$ 72,895,001	$148,049,621	$451,340,803
Major capital outflow on maturity	1,056,550,892	40,518,713	60,982,134	120,195,076	136,642,831	242,282,181	455,929,957
Gap	(176,285,920)	61,196,550	(2,805,594)	(72,107,332)	(63,747,830)	(94,232,560)	(4,589,154)

December 31, 2024

(In Thousands of New Taiwan Dollars)

	Total		**Period **	Remaining until D	ue Date and Amo	unt Due
		0-10 Days	11-30 Days	31-90 Days	91-180 Days	181 Days - 1 **Year **	Over 1 Year
Major capital inflow on maturity	$ 836,814,113	$ 95,846,949	$ 46,583,417	$ 48,336,744	$ 68,517,369	$139,615,898	$437,913,736
Major capital outflow on maturity	1,014,506,861	45,502,889	38,677,959	116,585,316	127,660,965	245,904,146	440,175,586
Gap	(177,692,748 )	50,344,060	7,905,458	(68,248,572)	(59,143,596 )	(106,288,248 )	(2,261,850 )

Note: The above amounts included only the New Taiwan dollar amounts held by the head office and domestic branches of the Bank (excluding foreign currency).

Maturity Analysis of Assets and Liabilities December 31, 2025

(In Thousands of U.S. Dollars)

	Total		Remaining Period to Maturity	Remaining Period to Maturity	Remaining Period to Maturity
		0-30 Days	31-90 Days	91-180 Days	181 Days - 1 Year	Over 1 Year
Major capital inflow on maturity	$ 6,243,408	$ 2,463,184	$ 577,101	$ 337,126	$ 521,873	$ 2,344,124
Major capital outflow on maturity	6,998,041	2,934,121	1,613,933	575,982	1,205,862	668,143
Gap	(754,633 )	(470,937 )	(1,036,832 )	(238,856 )	(683,989 )	1,675,981

December 31, 2024

(In Thousands of U.S. Dollars)

	Total		Remaining Period to Maturity	Remaining Period to Maturity	Remaining Period to Maturity
		0-30 Days	31-90 Days	91-180 Days	181 Days - 1 Year	Over 1 Year
Major capital inflow on maturity	$ 6,510,000	$ 2,462,551	$ 706,831	$ 633,907	$ 496,355	$ 2,210,356
Major capital outflow on maturity	7,297,827	2,912,748	2,011,104	677,313	1,192,357	504,305
Gap	(787,827 )	(450,197 )	(1,304,273 )	(43,406 )	(696,002 )	1,706,051

• Note 1: The above amounts included only the U.S. dollar amounts held by the head office, domestic branches, OBU and overseas branches of the Bank. Unless otherwise specified, amounts are reported at carrying amounts. Items not recorded on the books are not required to be reported, including planned issuances of NCDs, bonds, or shares.

• Note 2: When the OBU’s assets account for 10% of total assets of the Bank, the Bank should provide complimentary disclosed information.

• 114 -

41. CAPITAL MANAGEMENT

• a. The purpose of capital management is to meet the criteria set by administration which is the basic goal of the Bank’s capital management. The calculation method of the relevant qualified eligible capital and legal capital should be handled in accordance with the regulations of the competent authority.

To maintain the ratio of eligible capital to risk-weighted assets above the target level, the capital management structure of the Bank should be properly planned depending on the conditions of capital market, the characteristics of various capital instruments, the efficiency of capital utilization and the impact of operational performance.

• b. The Bank follows the relevant regulations of the competent authority and the internal operating procedures of the Bank, to regularly disclose relevant information on capital adequacy and report to the competent authority on a quarterly basis.

Self-owned capital of the Bank is divided into Tier 1 capital and Tier 2 capital according to principles of capital adequacy management.

• 1) The term “Net Tier 1 Capital” shall mean the aggregate amount of net common Equity Tier 1 and net additional Tier 1 Capital.

• a) The common equity Tier 1 capital consists of the common shares and additional paid-in capital in excess of par - common shares, the capital collected in advance, the capital reserves, the statutory surplus reserves, the special reserves, the accumulated profit or loss, the non-controlling interests and other items of interest.

• b) Additional Tier 1 capital consists of non-cumulative perpetual preferred shares and its capital share premium, the non-cumulative perpetual subordinated debts, the non-cumulative perpetual preferred shares and its capital share premium, and the non-cumulative perpetual subordinated debts which are issued by banks’ subsidiaries, and are not directly or indirectly held by banks.

2) Tier 2 capital

The Tier 2 capital consists of cumulative perpetual preferred shares and its capital share premium, the cumulative perpetual subordinated debts, the convertible subordinated debts, the long-term subordinated debts, the non-perpetual preferred shares and its capital share premium, when applying International Financial Reporting Standards in real estate and using the fair value method or the re-estimated value method as the deemed cost for the first time, the difference in amount between the deemed cost and the carrying amount recognized in retained earnings, the 45% of unrealized gains on changes in the fair value of investment properties using the fair value method, as well as the 45% of unrealized gains on available-for-sale financial assets, the operational reserves and loan-loss provisions and the cumulative perpetual preferred shares and its capital share premium, the cumulative perpetual subordinated debts, the convertible subordinated debts, the long-term subordinated debts, and the non-perpetual preferred shares and its capital share premiums, which are issued by banks’ subsidiaries, and are not directly or indirectly held by banks.

• 115 -

c. Capital adequacy ratio (CAR)

(Unit: In Thousands of New Taiwan Dollars, %)

Items	Year	Year	December 31, 2025	December 31, 2024
Eligible capital	Common equity		$ 89,768,569	$ 80,177,232
	Other Tier 1capital		10,150,000	8,500,000
	Tier 2 capital		10,392,180	9,194,401
	Eligible capital		110,310,749	97,871,633
Risk-weighted assets	Credit risk	Standardized approach	681,475,387	650,419,120
		Internal ratings-based approach	-	-
		Securitization	-	-
	Operational risk	Basic indicator approach	-	29,817,763
		Standardized approach	27,935,725	-
		Advancedmeasurement approach	-	-
	Market risk	Standardized approach	-	26,030,225
		Simplified standardized approach	35,912,750	-
		Internal modelapproach	-	-
	Risk-weighted assets		745,323,862	706,267,108
Capital adequacy ratio (%)			14.80%	13.86%
Ratio of common equity to risk-weighted assets (%)			12.04%	11.35%
Ratio of Tier 1 capital to risk-weighted assets (%)			13.41%	12.56%
Leverageratio (%)			9.62%	8.79%

• Note 1: Eligible capital and risk-weighted assets are calculated under the “Regulations Governing the Capital Adequacy Ratio of Banks” and “Explanation of Methods for Calculating the Eligible Capital and Risk-Weighted Assets of Banks”.

• Note 2: Annual financial statements should include capital adequacy ratio of the current and prior year. Semi-annual financial statements in addition to exposing the current and prior year’s financial status, should also include the capital adequacy ratio at the end of prior year.

• Note 3: Formulas used were as follows:

• 1) Eligible capital = Common equity + Other Tier 1 capital + Tier 2 capital.

• 2) Risk-weighted assets = Risk-weighted asset for credit risk + Capital requirements for operational risk and market risk x 12.5.

• 3) Capital adequacy ratio = Eligible capital ÷ Risk-weighted assets.

• 4) Ratio of the common equity to risk-weighted assets = Common equity ÷ Risk-weighted assets.

• 5) Ratio of Tier 1 capital to risk-weighted assets = (Common equity + Other Tier 1 capital) ÷ Risk-weighted assets.

• 6) Leverage ratio = Tier 1 capital ÷ Exposure measurement.

• Note 4: Exempt from disclosure in the preparation of the first and third quarters of the financial reports.

• 116 -

• Note 5: Operational risk was revised to Standardized approach since January 1, 2025. The Bank applied Basic indicator approach in December 2024.

• Note 6: Market risk was revised to Simplified Standardized approach since July 1, 2025. The Bank applied Basic indicator approach in December 2024.

42. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

Details of significant assets and liabilities denominated in foreign currencies were as follows:

Financial assets in foreign currencies Cash and cash equivalents Due from the Central Bank and call loans to other banks Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Notes discounted and loans Receivables Financial assets at amortized cost Other assets Financial liabilities in foreign currencies Due to the Central Bank and other bank Deposits and remittances Financial liabilities at fair value through profit or loss Other financial liabilities Payables Lease liabilities Securities sold under repurchase agreements Provisions Other liabilities New Taiwan dollars exchange rate Financial assets in foreign currencies Cash and cash equivalents Due from the Central Bank and call loans to other banks Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Notes discounted and loans Receivables Financial assets at amortized cost Other assets Financial liabilities in foreign currencies Due to the Central Bank and other bank Deposits and remittances Financial liabilities at fair value through profit or loss Other financial liabilities Payables Lease liabilities Securities sold under repurchase agreements Provisions Other liabilities New Taiwan dollars exchange rate	December 31, 2025
	USD CNY JPY AUD EUR Others Total $ 3,454,532 $ 302,091 $ 645,055 $ 233,998 $ 289,757 $ 379,957 $ 5,305,390 125,716 314,720 - - - 293,571 734,007 1,648,572 - - 4,616 - 151,836 1,805,024 15,750,603 - - 9,597,795 3,229,520 11,990,636 40,568,554 47,503,650 1,080,153 225,227 2,159,394 459,713 1,291,183 52,719,320 1,278,986 17,730 268,878 134,402 48,064 370,850 2,118,910 16,584,172 494,437 3,235,367 - 1,287,423 21,601,399 1,724,013 - 25,519 42,312 22,448 1,814,292 5,342,930 - - - - - 5,342,930 92,537,988 3,237,840 2,972,723 1,742,462 665,642 1,803,682 102,960,337 1,100,644 - - 1,268 - 152,049 1,253,961 5,394,474 - - - - 796,218 6,190,692 569,264 2,899 268,741 27,731 21,107 178,807 1,068,549 - - - - - 9,398 9,398 4,983,614 - - 4,684,825 - - 9,668,439 25,863 - - - - - 25,863 99,253 - 2,790 - 6,785 - 108,828 31.43 4.50 0.20 21.02 36.89 December 31, 2024
	USD CNY JPY AUD EUR Others Total $ 4,035,595 $ 234,102 $ 591,213 $ 148,734 $ 220,383 $ 397,862 $ 5,627,889 121,305 89,560 - - - 262,652 473,517 1,938,639 - - 2,692 2,667 80,451 2,024,449 19,407,723 - - 9,730,362 2,027,076 11,766,847 42,932,008 46,174,046 1,906,564 422,064 1,804,250 554,517 1,579 50,863,020 1,358,923 159,099 289,967 119,909 18,182 317,243 2,263,323 19,668,297 1,969,691 - 2,802,081 - 1,189,891 25,629,960 1,155,110 - - 13,581 73,813 65,982 1,308,486 7,737,260 - - - - - 7,737,260 96,608,503 2,895,455 2,962,675 1,721,834 669,366 1,720,373 106,578,206 1,181,776 - - 173 - 73,463 1,255,412 3,337,185 - - - - 794,656 4,131,841 730,342 6,006 288,437 12,026 6,054 145,637 1,188,502 - - - - - 10,066 10,066 9,689,170 - - 2,345,053 - - 12,034,223 31,603 - - - - - 31,603 140,775 - 7,644 - 1,176 - 149,595 32.79 4.48 0.21 20.39 34.14

• 117 -

43. CASH FLOW INFORMATION

Changes in Liabilities Arising from Financing Activities

For the year ended December 31, 2025

Bank debentures Guarantee deposit received Lease liabilities	Opening Balance $ 13,500,000 617,798 1,145,320 $ 15,263,118	Cash Inflows (Outflows) $ 1,650,000 (73,243 ) (162,775) $ 1,413,982		Non-cash Changes	Non-cash Changes	Other (Note) $ - - 461 $ 461	Closing Balance $ 15,150,000 544,555 952,627
				New Leases $ - - 29,539 $ 29,539	End of Lease Term $ - - (59,918) $ (59,918)
							$ 16,647,182

For the year ended December 31, 2024

Bank debentures Guarantee deposit received Lease liabilities	Opening Balance $ 16,500,000 416,442 988,126 $ 17,904,568	Cash Inflows (Outflows) $ (3,000,000 ) 201,356 (161,012) $ (2,959,656)		Non-cash Changes	Non-cash Changes	Other (Note) $ - - 136 $ 136	Closing Balance $ 13,500,000 617,798 1,145,320
				New Leases $ - - 433,062 $ 433,062	End of Lease Term $ - - (114,992) $ (114,992)
							$ 15,263,118

Note: The effects of foreign currency.

44. ADDITIONAL DISCLOSURES

• a. Information about significant transactions and investees:

Disclosures of relevant information in accordance with Article 18 of Regulations Governing the Preparation of Financial Reports by Public Banks are as follows:

No.	Item	Note
1	Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 10% of the paid-in capital.	None
2	Acquisition of individual real estate at costs of at least NT$300 million or 10% ofthe paid-incapital.	None
3	Disposal of individual real estate at prices of at least NT$300 million or 10% ofthe paid-incapital.	None
4	Allowance of service fees to Related party amounting to at least NT$5 million.	None
5	Receivables from Related party amounting to at least NT$300 million or 10% ofthe paid-incapital.	None
6	Sale of nonperforming loans.	None
7	Financialasset securitizationandrealestate securitization.	None
8	Other significant transactions which may affect the decisions of users of financial reports.	None

• 118 -

b. The related information of the Bank’s investees (Note):

No.	Item	Note
1	Relatedinformationand proportionate sharein investees.	Table1
2	Financing provided.	Table 2
3	Endorsement/guarantee provided.	Table 3
4	Marketable securitiesheld.	Table4
5	Marketable securities acquired and disposed of at costs or prices of at least NT$300millionor 10% ofthe paid-incapital.	None
6	Derivative transactions.	Note 8
7	Other significant transactions which may affect the decisions of users of financial reports.	None

Note: Subsidiaries are exempt from disclosure if they belong to the financial, insurance, and securities industries, and the main business items of business registration include fund loans to others, endorsements, and trading of securities.

• c. Investment in mainland China: Table 5 (attached).

d. Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder: Table 6.

• 119 -

TABLE 1

TAICHUNG COMMERCIAL BANK CO., LTD.

THE RELATED INFORMATION AND PROPORTIONATE SHARE IN INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars or Share, %)

Investor Company	Investee Company (Note 1)	Location	Main Businesses and Products	Percentage of Ownership	Carrying Value	Investment Gain (Loss)	Proportionate Share of the Bank (Note	Proportionate Share of the Bank (Note	and Its Affiliates in Investees 1)	and Its Affiliates in Investees 1)	Note
							Shares (In Thousands)	Pro Forma Shares (Note 2)	Total
									Shares (In Thousands)	Percentage of Ownership
Taichung Commercial Bank Co., Ltd. Taichung Bank Leasing Corporation Limited TCCBL Co., Ltd. (B.V.I.) Taichung Bank Securities Co., Ltd.	Taichung Bank Insurance Brokers Co., Ltd. Taichung Bank Securities Investment Trust Co., Ltd. Taichung Bank Securities Co., Ltd. Taichung Bank Leasing Corporation Limited TCCBL Co., Ltd. (B.V.I.) Taichung Bank Financial Leasing (Suzhou) Co., Ltd. Taichung Bank Venture Capital Co., Ltd.	Taichung City Taipei City Taichung City Taipei City British Virgin Islands Suzhou Taipei City	Insurance broker industry Securities investment trust industry Securities industry Leasing business Financial leasing and investment business Financial leasing business Venture capital business	100.00 38.46 100.00 100.00 100.00 100.00 100.00	$ 1,417,246 192,271 2,244,968 3,519,903 1,087,241 1,026,596 306,146	$ 526,245 (1,834) 43,749 288,110 28,851 26,107 (11,927)	50,000 19,783 191,965 317,977 30,000 - 31,582	- - - - - - -	50,000 19,783 191,965 317,977 30,000 - 31,582	100.00 63.41 100.00 100.00 100.00 100.00 100.00

Note 1: Shares or pro forma shares held by the Bank, directors, supervisors, president, vice president and affiliates have all been included in accordance with the Company Act.

• Note 2: a. Pro forma shares are shares assumed to be obtained through buying equity-based securities or entering into equity-linked derivative contracts for purposes defined in Article 74 of the Banking Law. b. Equity-based securities, such as convertible bonds and warrants, are covered by Article 11 of “Securities and Exchange Law Enforcement Rules.”

c. Derivative contracts, such as share options, are those conforming to the definition of derivatives in International Financial Reporting Standard 9.

Note 3: This table of “information of investees’ names, locations, etc.” can only be seen in the second and fourth quarter’s financial statements.

• 120 -

TABLE 2

TAICHUNG COMMERCIAL BANK CO., LTD.

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. (Note 1)	Lender	Borrower	Financial Statement Account (Note 2)	Related Party	Highest Balance for the Period (Note 3)	Ending Balance (Note 8)	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing (Note 4)	Business Transaction Amount (Note 5)	Reasons for Short-term Financing (Note 6)	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower (Note 7)	Aggregate Financing Limit (Note 7)	Note
													Item	Value
1	Taichung Bank Leasing Corporation Limited	Zong Hui Construction Co., Ltd. Hong Shu Building Co., Ltd. Sin Gang Enterprises Ltd. Quan Du Fu Investment Co., Ltd. Classic Industrial Co., Ltd. Adisplay Lcd Co., Ltd. Kangerfa Construction Ltd. Junyang Industrial Co., Ltd. Daliang Investment Ltd. Chun Fa Investment Ltd.	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	Not related Not related Not related Not related Not related Not related Not related Not related Not related Not related	$ 162,000 45,264 54,580 116,950 27,661 105,801 30,000 100,000 45,000 30,000	$ - 44,712 - - - 51,813 - 77,304 24,177 27,560	$ - 44,712 - - - 51,813 - 77,304 24,177 7,560	4-10 4-10 4-10 4-10 4-10 4-10 4-10 4-10 4-10 4-10	Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing	$ - - - - - - - - - -	Business turnover Business turnover Business turnover Business turnover Business turnover Business turnover Business turnover Business turnover Business turnover Business turnover	$ - 447 - - - 518 - 773 242 76	Real estate Real estate Real estate Real estate Real estate Real estate Real estate Real estate Shares Shares	$ 70,040 15,248 11,680 58,359 - 148,234 30,000 211,389 47,180 30,348	$ 351,990 351,990 351,990 351,990 351,990 351,990 351,990 351,990 351,990 351,990	$ 1,407,961 1,407,961 1,407,961 1,407,961 1,407,961 1,407,961 1,407,961 1,407,961 1,407,961 1,407,961	Note 9 Note 9 Note 9 Note 9 Note 9 Note 9 Note 9 Note 9 Note 9 Note 9

Note 1: The description of the number column is as follows:

• a. Issuer: 0.

• b. The invested company is numbered sequentially by the Arabic number 1 according to the Company.

Note 2: Items such as accounts receivable, corporate receivables, shareholder transactions, prepayments, provisional payments, etc., which are provided by financing are required to be filled in this field.

Note 3: The annual fund is provided to others to the highest balance.

Note 4: Nature of financing should be filled with business contracts or those who have short-term financing.

Note 5: Nature of the loan of the business contracts should be filled with the amount of business transactions. The amount of business transactions refers to the amount of business transactions between the Company that lends the funds and the target of last year’s loan.

Note 6: Nature of the loan required for short-term financing should specify the reasons for the loans and the use of funds for the loan, such as repayment of loans, purchase of equipment, business turnover, etc.

• Note 7: The Company shall fill in the borrowing limit and total limit for individual objects according to the operating procedures and explains the calculation method of the total limit in the column Note.

Note 8: If the board of directors of the public offering company according to Article 14(1) of the Public Offering Company’s Financing and Endorsement Guarantee Processing Guidelines will make a resolution, the amount of the resolution of the board of directors shall be included in the announcement balance to disclose its risk; however, if the funds are repaid, the balance after repayment should be disclosed to reflect the adjustment of risk. If the public offering company authorizes the chairman of the board to allocate or repay the loan in a certain amount and within one year according to the resolution of the board of directors in accordance with Article 14(2) of the handling criteria, the fund’s loan and the amount approved by the board of directors shall be the declared balance. Although the funds will be repaid afterwards, the consideration may still be re-loaned. Therefore, the fund loan and the amount approved by the board of directors should still be used as the announced balance.

Note 9: Taichung Bank Leasing Corporation Limited should not exceed 10% of its own net value for a single enterprise. The total amount of financing provided to others is limited to 40% of the net value of Taichung Bank Leasing Corporation Limited.

• 121 -

TABLE 3

TAICHUNG COMMERCIAL BANK CO., LTD.

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

No.	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limit on Endorsement/ Guarantee Given on Behalf of Each Party (Note 1)	Maximum Amount Endorsed/ Guaranteed During the Period (Note 2)	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 1)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries (Note 3)	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent (Note 3)	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China (Note 3)
		Name	Relationship
1	Taichung Bank Leasing Corporation Limited	Taichung Bank Financial Leasing (Suzhou) Co., Ltd.	Indirect shareholding of 100% of subsidiary	$ 21,119,418	$ 6,667,866	$ 4,346,240	$ 2,590,443	$ -	123.48	$ 35,199,030	-	-	Y

Note 1: According to Taichung Bank Leasing Corporation Limited’s “Operating Procedures to Fund Endorsement and Guarantee”, the endorsement limit to single company cannot surpass six times of Taichung Bank Leasing Corporation Limited’s audited net worth. The endorsement limits to all subsidiaries cannot surpass 10 times of Taichung Bank Leasing Corporation Limited’s audited net worth.

Note 2: The maximum balance guaranteed for endorsement of others during the year.

Note 3: It is a guarantor of the listed parent company to the endorsement of the subsidiary, the subsidiary company’s endorsement to the listed parent company and the endorsement of the mainland area must be filled with Y.

• 122 -

TABLE 4

TAICHUNG COMMERCIAL BANK CO., LTD.

MARKETABLE SECURITIES HELD FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars or Shares)

Name of Holding Company	Type and Name of Marketable Securities	Relationship	Financial Statements Account		December 31, 2025	December 31, 2025		Note
				Shares	Carrying Amount (Note)	Percentage of Ownership (%)	Market Value or Net Asset Value (Note)
Taichung Commercial Bank Co., Ltd. Taichung Bank Leasing Corporation Limited TCCBL Co., Ltd. (B.V.I.) Taichung Bank Securities Co., Ltd.	Domestic unlisted shares Taichung Bank Leasing Corporation Limited Taichung Bank Insurance Brokers Co., Ltd. Taichung Bank Securities Co., Ltd. Taichung Bank Securities Investment Trust Co., Ltd. Foreign unlisted shares TCCBL Co., Ltd. (B.V.I.) Foreign unlisted shares Taichung Bank Financial Leasing (Suzhou) Co., Ltd. Domestic unlisted shares Taichung Bank Venture Capital Co., Ltd.	Subsidiary Subsidiary Subsidiary Association Sub-subsidiary Sub-subsidiary Sub-subsidiary	Investment accounted for using the equity method Investment accounted for using the equity method Investment accounted for using the equity method Investment accounted for using the equity method Investment accounted for using the equity method Investment accounted for using the equity method Investment accounted for using the equity method	317,977 50,000 191,965 12,000 30,000 - 31,582	$ 3,519,903 1,417,246 2,244,968 192,271 1,087,241 1,026,596 306,146	100.00 100.00 100.00 38.46 100.00 100.00 100.00	$ 3,519,903 1,417,246 2,244,968 192,271 1,087,241 1,026,596 306,146

Note: The financial industry, the insurance industry and the securities industry are exempt from disclosure.

• 123 -

TABLE 5

TAICHUNG COMMERCIAL BANK CO., LTD.

INVESTMENT IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital	Method of Investment	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2025	Remittance of Funds	Remittance of Funds	Accumulated Outflow of Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Value as of December 31, 2025	Accumulated Inward Remittance of Earnings as of December 31, 2025
							Outward	Inward
Taichung Bank Financial Leasing (Suzhou) Co., Ltd.	Financial leasing business		$ 893,373 (CNY 186,329 thousand)	Investment in mainland China companies through an existing company established in a third region		$ 893,373 (CNY 186,329 thousand)	$ -	$ -	$ 893,373 (CNY 186,329 thousand)	$ 26,107 (CNY 6,035 thousand)	100	$ 26,107 (CNY 6,035 thousand)	$ 1,026,596 (CNY 228,335 thousand)	$ -
Accumulated Investment in Mainland China as of December 31, 2025		Investment Amount Approved by the Investment Commission, MOEA			Maximum Investment Allowable (Note 2)
$893,373		$893,373			$2,111,942

Note 1: Recognition of investment gains and losses based on the financial statements audited by the parent company’s accountant.

Note 2: Based on the Investment Commission’s “Regulation on the Examination of Investment or Technical Cooperation in Mainland China”, investments are limited to the regulation of Taichung Bank Leasing Corporation Limited’s calculation.

Note 3: Foreign currency involved translation into the New Taiwan dollar at the spot rate and average exchange rate on the date of the financial statements (CNY1=NT$4.50, CNY1=NT$4.33).

• 124 -

TABLE 6

TAICHUNG COMMERCIAL BANK CO., LTD.

INFORMATION OF MAJOR SHAREHOLDERS DECEMBER 31, 2025

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
China Man-Made Fiber Corporation Pan Asia Chemical Corporation	1,277,768,406 341,322,463	21.22 5.67

• Note 1: According to Article 25 of the Banking Act of the Republic of China, the same person or same related party who individually, jointly or collectively acquires more than 5% of a bank’s outstanding voting shares shall report such fact to the authorities within 10 days from the date of acquisition.

• Note 2: If the shares of the major shareholders in the above table are held by trustees, the shareholdings should be separately disclosed by the trust accounts opened by the trustee. As for shareholders’ handling of insider shareholding declarations with more than 10% of their shares in accordance with the Securities Exchange Act, their shareholdings include their own shareholdings plus those shares held under trust accounts with the right to utilize the trust assets, etc. For more information on insider shareholding declarations, please refer to the market observation post system website of the TWSE.

• 125 -

TAICHUNG COMMERCIAL BANK CO., LTD.

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item Major Accounting Items in Assets, Liabilities and Equity Statement of cash and cash equivalents Statement of financial instrument at fair value through profit or loss Statement of securities purchased under resale agreements Statement of receivables, net Statement of notes discounted and loans, net Statement of financial assets at fair value through other comprehensive income Statement of investment in debt instruments at amortized cost Statement of changes in investments accounted for using equity method Statement of other financial assets Statement of change in properties and equipment Statement of change in accumulated depreciation of properties and equipment Statement of change in accumulated impairment of properties and equipment Statement of change in right-of-use assets Statement of change in accumulated depreciation of right-of-use assets Statement of financial liabilities at fair value through profit or loss Statement of securities sold under repurchase agreements Statement of payables Statement of deposits and remittances Statement of bank debentures Statement of lease liabilities Major Accounting Items in Profit or Loss Statement of net interest Statement of net service fee income Statement of loss on financial assets and liabilities at fair value through profit or loss Statement of realized gain on financial assets at fair value through other comprehensive income Statement of accounted for using the equity method Statement of foreign exchange gain (loss) Statement of (reversal of) impairment loss recognized on assets Statement of other non-interest gains (losses), net Statement of provision for bad debts expense, commitments and guarantees Statement of employee benefits expense Statement of depreciation and amortization expenses Statement of other selling and administrative expenses

**Statement Index **

1 2 3 Note 12 Note 13 4 5 6 Note 15 Note 16 Note 16 Note 16 7 8 9 10 Note 22 11 12 13 Note 29 Note 29 Note 29 Note 29 Note 14 14 Note 29 Note 29 Note 29 15 Note 29 Note 29

• 126 -

STATEMENT 1

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Item Cash on hand Cash on hand - foreign currencies (Note) Checks for clearing Due from banks	Amount $ 4,921,490 790,773 961,600 6,015,980 $ 12,689,843

Note: The cash on hand - foreign currencies include: US$9,978 thousand, US$1=NT$31.43; EUR2,307 thousand, EUR1=NT$36.89; JPY1,195,564 thousand, JPY1=NT$0.20; HK$14,906 thousand, HK$1=NT$4.04; AUD600 thousand, AUD1=NT$21.02; CAD507 thousand, CAD1=NT$22.93; CNY15,056 thousand, CNY1=NT$4.50.

• 127 -

STATEMENT 2

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Name Description Shares Amount Total Amount Financial assets at FVTPL 1. Domestic listed shares and emerging market shares Taiwan Fire & Marine Insurance Co., Ltd. 7,463 10 $ 74,630 2. Cross-currency swap contracts Note 8 - - 3. Beneficiary certificate Fuh Hwa Small Capital Fund 364 - Allianz Global Investors Taiwan Fund 799 - Nomura Global Equity Fund 1,348 - Capital India Medium and Small Cap Equity Fund 1,247 - Yuanta Global Leaders Balanced Fund 2,606 - Fuh Hwa US Equity Fund 1,163 - JPMorgan US Technology Fund (USD) 15 - Nomura Funds Ireland plc - Japan Strategic Value Fund 14 - - - 4. Commercial paper Dragon Steel Corporation - 2,100,000 Yuanta Securities Co., Ltd - 1,900,000 Hotai Finance Co., Ltd. - 3,600,000 IBF Securities - 2,750,000 KGI Securities Co., Ltd. - 1,761,000 CITIC Securities Company Limited - 1,590,000 Fubon Securities Co., Ltd - 3,200,000 Cathay Financial Holding Co., Ltd. - 2,820,000 HON HAI PRECISION INDUSTRY CO., LTD - 2,500,000 Others (Note) - 7,541,000 29,762,000 5. Foreign exchange forward contracts Note 8 - -	Cost $ 263,785 - 55,000 29,565 28,228 24,973 30,000 30,000 32,416 62,858 293,040 2,097,570 1,896,041 3,595,648 2,746,243 1,756,880 1,587,823 3,192,911 2,809,074 2,469,741 7,524,733 29,676,664 -	FairValue
		Unit Price (NT$) Total Amount $ 50.30 $ 375,409 1,635,247 241.68 87,862 163.58 130,686 38.69 52,146 31.53 39,328 19.97 52,050 28.01 32,570 4,294.77 63,584 5,693.05 78,483 536,709 2,098,583 1,897,698 3,597,988 2,747,496 1,758,047 1,588,823 3,195,120 2,813,547 2,483,170 7,532,583 29,713,055 12,764 (Continued)

• 128 -

Name Description Shares Amount Total Amount 6. Asset swap contract HOTA 4 4,775 100 $ 477,500 YL 3 7,640 100 764,000 Hon Chuan 2 6,000 100 600,000 YL 2 4,700 100 470,000 Others (Note) 55,314 100 5,531,400 7,842,900 7. Cross-currency option contracts Note 8 - - 8. PEM group policy assets - - 9. Corporate bonds Ultra 3 - 9,200 CHING FENG HOME 3 - 4,000 BRIGHTEK 1 - 2,500 15,700 10. Interest rate-linked structured instrument contracts Note 8 - - 11. Futures contracts Note 8 - - $ 37,695,230	Cost $ 477,500 764,000 600,000 470,000 5,531,400 7,842,900 - - 9,292 4,020 2,513 15,825 - - $ 38,092,214	FairValue
		Unit Price (NT$) Total Amount $ 100.06 $ 477,796 100.39 766,986 100.53 603,205 99.40 467,173 5,557,537 7,872,697 725,401 417,206 100.50 9,246 96.02 3,841 105.05 2,626 15,713 582,852 10,609 $ 41,897,662

Note: The amount of each item in others does not exceed 5% of the account balance.

(Concluded)

• 129 -

STATEMENT 3

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF SECURITIES PURCHASED UNDER RESELL AGREEMENTS DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Type Period Carrying Value Commercial paper 2025.12.16-2026.01.16$ 16,210,000	Amount Interest $ 16,180,210 1.44%-1.46%

• 130 -

STATEMENT 4

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Name Description Interest Payment Date Due Date Units/Shares (In Thousands) Domestic unlisted shares Taiwan Stock Exchange Corporation 3,977 Financial Information Service Co., Ltd. 8,491 Taiwan Futures Exchange 3,247 Taiwan Depository & Clearing Corporation 1,587 Others (Note) 3,821 Domestic listed shares Far Eastern New Century Corporation 8,252 Chunghwa Telecom Co., Ltd. 3,827 Far EasTone Telecommunications Co., Ltd. 4,787 Mega Financial 10,583 ASE Technology Holding Co., Ltd. 1,210 Delta Electronics 447 Eva Airways 6,000 Others (Note) 18,312 Corporate bonds Others (Note) Government bonds 101 Central government bond A7 Par value 700,000 2026/08/10 2032/08/10 - Central government bond 95-7 Par value 2,300,000 2026/11/10 2026/11/10 - 100 Central government bond A8 Par value 1,150,000 2026/08/24 2041/08/22 - 112 Central government bond A4 Par value 1,350,000 2026/03/03 2043/03/03 - Others (Note) - Bank debentures P13 FEIB 1A Par value 500,000 2026/10/27 2029/10/24 - P13 SCS 3A Par value 300,000 2026/12/28 2029/12/27 - P09 HSBC 2 Par value 300,000 2026/03/30 2027/03/30 - P12 SCS 1 Par value 200,000 2026/12/12 2026/12/12 - P14 CTBC 1B Par value 500,000 2026/03/12 2036/03/12 - P10 TFC 1 Par value 200,000 2026/01/28 2026/01/28 - Foreign listed shares Visa International 29 Master Card International 14 Foreign bonds Others (Note)	Amount Interest % Carrying Value Accumulated Impairment Loss $ - $ 52,700 $ - - 45,500 - - 9,000 - - 5,445 - - 33,039 - - 145,684 - - 244,398 - - 429,381 - - 367,052 - - 419,413 - - 118,708 - - 120,007 - - 202,475 - - 1,359,575 - - 3,261,009 - 40,400,000 40,463,100 (34,520) 700,000 1.500 712,109 (177) 2,300,000 2.125 2,324,246 (577) 1,150,000 1.875 1,227,343 (305) 1,350,000 1.375 1,345,126 (334) 6,050,000 6,264,903 (1,555) 11,550,000 11,873,727 (2,948) 500,000 1.95 500,497 (497) 300,000 1.90 300,168 (168) 300,000 0.57 300,112 (112) 200,000 1.60 200,112 (112) 500,000 2.05 500,124 (124) 200,000 0.40 200,049 (49) 2,000,000 2,001,062 (1,062) - 19,448 - - 13,248 - - 32,696 - 45,808,415 41,262,899 (5,048) $ 99,758,415 $ 99,040,177 $ (43,578)	Allowance for Doubtful Accounts $ 435,895 326,235 291,647 179,624 11,658 1,245,059 (14,992) 70,043 55,640 3,916 184,397 310,454 16,825 352,119 978,402 (177,771) (4,900) (6,382) (1,784) 8,067 (52,830) (57,829) 3,266 1,988 (3,444) 10 12,058 (134) 13,744 298,321 233,744 532,065 (1,254,057) $ 1,279,613	Fair Value $ 488,595 371,735 300,647 185,069 44,697 1,390,743 229,406 499,424 422,692 423,329 303,105 430,461 219,300 1,711,694 4,239,411 40,250,809 707,032 2,317,287 1,225,254 1,352,859 6,210,518 11,812,950 503,266 301,988 296,556 200,010 512,058 199,866 2,013,744 317,769 246,991 564,760 40,003,794 $ 100,276,211

Note: The amount of each item in others does not exceed 5% of the account balance.

• 131 -

STATEMENT 5

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF INVESTMENT IN DEBT INSTRUMENTS AT AMORTIZED COST DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Type Description Interest Payment Date Maturity Date Carrying Value (NT$) Interest % 1. Government bonds 100 Central government bond A2 Guaranteed par value $500,000 thousand 2026/01/13 2031/01/13 $ 500,000 2.125 100 Central government bond A7 Guaranteed par value $170,500 thousand 2026/08/03 2031/08/02 600,000 1.875 106 Central government bond A4 2026/03/02 2027/03/01 1,200,000 1.125 106 Central government bond A9 2026/09/21 2027/09/20 1,650,000 1.000 98 Central government bond A2 2026/02/23 2029/02/16 500,000 2.125 98 Central government bond A5 2026/08/13 2029/08/13 525,000 2.125 99 Central government bond A4 2026/02/23 2030/02/22 1,050,000 1.875 112 Central government bond B1 2026/01/12 2033/01/10 550,000 1.250 Others (Note) 2,195,000 0.500-3.000 Less: Deposit reserves for trust compensation (120,000) Refundable deposits (550,500) 8,099,500 2. Foreign bonds (Note) 21,014,495 1.00-10.22 3. Commercial paper NCDs 50,790,000 0.825-1.486 4. Corporate bonds (Note) 22,280,000 0.41-2.28 5. Treasury bills 383,000 1.219 6. Securitization commodity Ginnie Mae (GNMA) 2026/09/11 2055/06/20 314,290 5.000 Ginnie Mae (GNMA) 2026/10/22 2055/10/20 314,290 5.000 628,580 $ 103,195,575	Allowance for Doubtful Accounts $ (132) (154) (298) (410) (128) (135) (269) (137) (554) - - (2,217) (6,596) - (19,173) - - - - $ (27,986)	Unamortized Price $ 29,674 20,850 1,240 (742) 15,820 17,863 33,856 1,005 35,193 - - 154,759 (29,368) - (25,292) (4,656) (4,461) (1,251) (5,712) $ 89,731	Fair Value $ 529,542 620,696 1,200,942 1,648,848 515,692 542,728 1,083,587 550,868 2,229,639 (120,000) (550,500) 8,252,042 20,978,531 50,790,000 22,235,535 378,344 309,829 313,039 622,868 $ 103,257,320

Note: The amount of each item in others does not exceed 5% of the account balance.

• 132 -

STATEMENT 6

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Investees Taichung Bank Insurance Brokers Co., Ltd. (Note 1) Taichung Bank Securities Investment Trust Co., Ltd. (Note 2) Taichung Bank Leasing Corporation Limited (Note 3) Taichung Bank Securities Co., Ltd. (Note 4)	Balance, January 1, 2025 Shares (In Thousands) Amount 50,000 $ 1,296,326 12,000 192,853 298,116 3,229,241 172,197 2,223,106 $ 6,941,526	Additions in Investment Shares (In Thousands) Amount - $ 526,245 - 1,252 19,861 290,662 19,768 43,834 $ 861,993	Decrease in Investment Shares (In Thousands) Amount - $ 405,325 - 1,834 - - - 21,972 $ 429,131	Balance, December 31, 2025 Market Value Shares or Net Assets (In Thousands) % Amount Value 50,000 100.00 $ 1,417,246 $ 1,417,246 12,000 38.46 192,271 192,271 317,977 100.00 3,519,903 3,519,903 191,965 100.00 2,244,968 2,244,968 $ 7,374,388 $ 7,374,388
	Shares (In Thousands) 50,000 12,000 298,116 172,197	Shares (In Thousands) - - 19,861 19,768	Shares (In Thousands) - - - -	Shares (In Thousands) % 50,000 100.00 12,000 38.46 317,977 100.00 191,965 100.00

• Note 1: The increase in the current year was based on investment income recognized under equity method of $526,245 thousand. The decrease in the current year was cash dividends of $394,488 thousand and actuarial losses on defined benefit plans of $10,837 thousand. The net assets value was calculated based on financial statements which have been audited.

• Note 2: The increase in the current year was based on the recognition of unrealized gain on financial instruments amounted to $758 thousand and the defined benefit plans recognized under equity method of $494 thousand. The decrease in the current year was investment loss of $1,834thousand. The net assets value was calculated based on financial statements which have been audited.

• Note 3: The increase in the current year was based on investment income recognized under equity method of $288,110 thousand, the share dividends were 19,861 thousand and the cumulative translation adjustment of $2,552 thousand. The net assets value was calculated based on financial statements which have been audited.

• Note 4: The increase in the current year was based on investment income recognized under equity method of $43,749 thousand and the share dividends were 19,768 thousand shares and unrealized gain on financial instruments amounted to $85 thousand. The decrease in the current year was based on cash dividends of $21,972 thousand. The net assets value was calculated based on financial statements which have been audited.

• 133 -

STATEMENT 7

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF CHANGE IN RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Land and buildings Transportation equipment	Balance, Beginning of Year $ 1,419,218 40,013 $ 1,459,231	Addition $ 20,607 8,932 $ 29,539	Less $ 89,624 15,277 $ 104,901	Exchange Rate Balance, End of Year Remark $ (22) $ 1,350,179 - 33,668 $ (22) $ 1,383,847

Note: The above statement is listed in order of asset categories.

• 134 -

STATEMENT 8

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF CHANGE IN ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Balance, Beginning of Year Land and buildings $ 325,877 Transportation equipment 16,316 $ 342,193	Addition $ 164,474 8,841 $ 173,315	Less $ 39,551 8,068 $ 47,619	Exchange Rate Balance, End of Year Remark $ (513) $ 450,287 - 17,089 $ (513) $ 467,376

Note: The above statement is listed in order of asset categories.

• 135 -

STATEMENT 9

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item Description (Note) Shares Carrying Value Total Amount Rate Financial liability at FVTPL Cross-currency swap contracts Note 8 - $ - $ - - Foreign exchange forward contracts Note 8 - - - - Cross-currency option contracts Note 8 - - - - Interest rate-linked structured instrument contracts Note 8 - - - -	Cost $ - - 559,716 - $ 559,716	FairValue
		Unit Price (NT$) Total Amount $ - $ 1,348,784 - 17,910 - 732,996 - 582,852 $ 2,682,542

Note: The amount of each item in others does not exceed 5% of the account balance.

• 136 -

STATEMENT 10

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF SECURITIES SOLD UNDER REPURCHASE AGREEMENTS DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Type Date Carrying Value Government bonds Others (Note) 2025.11.25-2026.02.05 $ 500,000 Foreign bonds Australian government bonds 2025.10.13-2026.01.13 840,640 Australian government bonds 2025.10.14-2026.01.14 2,101,600 National debt of the United States 2025.11.12-2026.01.13 628,580 National debt of the United States 2025.11.20-2026.01.20 628,580 National debt of the United States 2025.11.21-2026.01.21 942,870 National debt of the United States 2025.11.26-2026.01.26 628,580 Australian government bonds 2025.12.02-2026.03.02 1,260,960 Australian government bonds 2025.12.05-2026.01.05 945,720 Others (Note) 2025.11.06-2026.01.28 2,976,862

Amount Interest $ 500,254 1.34%-1.35% 658,568 3.71% 1,646,419 3.71% 576,758 4.12% 578,141 4.16% 866,234 4.17% 608,874 4.17% 1,253,042 3.74% 725,850 3.76% 2,754,553 3.75%-4.17% 9,668,439 $ 10,168,693

Note: The amount of each item in others does not exceed 5% of the account balance.

• 137 -

STATEMENT 11

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF DEPOSITS AND REMITTANCES DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Item Checking deposits Checking Bank checking Certified check Demand deposits Demand Public treasury Foreign exchange demand Demand savings deposits Demand savings Staff demand savings Time deposits Time Foreign exchange time Time savings deposits Withdrawals of interest savings Round-amount savings Regular deposits Remittances	Amount $ 6,606,037 4,268,049 7,407
	10,881,493
	188,307,293 1,026,270 29,715,871
	219,049,434
	165,434,032 3,452,270
	168,886,302
	160,611,760 73,172,122
	233,783,882
	182,833,823 29,651,701 129,691
	212,615,215
	72,343
	$ 845,288,669

• 138 -

STATEMENT 12

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF BANK DEBENTURES DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Bonds Name Fifth no due date non-cumulative subordinated financial debenture in 2017 First no due date non-cumulative subordinated financial debenture in 2018 Second no due date non-cumulative subordinated financial debenture in 2018 First subordinated financial debenture in 2021 First no due date non-cumulative subordinated financial debenture in 2025 Second no due date non-cumulative subordinated financial debenture in 2025	Detailof the Subordinated Financial Debenture Issuance Issuance Date Maturity Date Interest Rate 2017.12.27 No due date According to the one-year time savings deposit interest rate of Chunghwa Post Co., Ltd., plus 3.08% 2018.04.25 No due date According to the one-year time savings deposit interest rate of Chunghwa Post Co., Ltd., plus 3.08% 2018.12.18 No due date According to the one-year time savings deposit interest rate of Chunghwa Post Co., Ltd., plus 3.08% 2021.12.27 2028.12.27 Fixed annual interest rate of 1.2% 2025.08.26 No due date According to the one-year time savings deposit interest rate of Chunghwa Post Co., Ltd., plus 2.815% 2025.10.29 No due date According to the one-year time savings deposit interest rate of Chunghwa Post Co., Ltd., plus 2.815%	Bonds Category Carrying Value Subordinated 10,000 Subordinated 10,000 Subordinated 10,000 Subordinated 10,000 Subordinated 10,000 Subordinated 10,000	Book Value $ 2,650,000 1,000,000 1,500,000 5,000,000 2,500,000 2,500,000
			$ 15,150,000

• 139 -

STATEMENT 13

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF LEASE LIABILITIES DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Balance, End Item Description Lease Terms Discount Rate of Year Remark Land and buildings 1-13 years 1.20%-4.50% $ 935,880 Transportation equipment 3-5 years 1.20%-4.50% 16,747 $ 952,627

• 140 -

STATEMENT 14

TAICHUNG COMMERCIAL BANK CO., LTD.

FOREIGN EXCHANGE GAIN (LOSS) DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Spot transaction Currency swap Proprietary capital Effect of foreign currency exchange differences	Amount $ (88,918) 1,665,536 (47,460) (730) $ 1,528,428

• 141 -

STATEMENT 15

TAICHUNG COMMERCIAL BANK CO., LTD.

STATEMENT OF EMPLOYEE BENEFITS EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Employee benefits expense Salaries Labor and health insurance Pension expense Remuneration of directors Other employee expenses	Employee Benefit Expense $ 4,211,330 287,124 117,478 314,980 217,543 $ 5,148,455	Non-interest Gains Other Selling and Administrative Expenses $ - $ - - - - - - 9,258 - 6,639 $ - $ 15,897	Total Remark $ 4,211,330 287,124 117,478 324,238 224,182 $ 5,164,352

• Note 1: As of December 31, 2025 and 2024, the Bank had 3,095 and 2,955 employees, and there were 9 non-employee directors, respectively.

• Note 2: The average employee benefits expense amounted to $1,568 thousand in 2025 and amounted to $1,422 thousand in 2024.

• Note 3: The average employee salaries amounted to $1,365 thousand in 2025 and amounted to $1,205 thousand in 2024.

• Note 4 The change in average employee salaries rate was 13% in 2025.

• Note 5: The Bank has been established audit committee, and no compensation to the supervisor.

• Note 6: The Bank’s salary and remuneration policy:

Director of the Board

a. Directors’ compensation

The 25th directors’ compensation according to Article 27 of the Bank’s salary and remuneration policy, the remuneration of the chairman, vice-chairman, managing director and independent director must be authorized by the board of directors and must be determined negotiated based on the industry’s usual standards, and links to the results of the 2024 performance evaluation of the Board of Directors of the Bank.

(Continued)

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b. Directors’ remuneration

According to Article 35 of the Bank’s Articles of Incorporation, if the Bank records profits for a fiscal year, the Board of Directors may resolve to allocate no more than 2.5% of the net profit before income tax as directors’ remuneration. Taking into account the Bank’s operating performance, the proposal was discussed by the Remuneration Committee and subsequently submitted to and approved by the Board of Directors, and will be reported to the 2025 Annual General Meeting of Shareholders. In accordance with Article 27-1, Paragraph 2 of the Bank’s Articles of Incorporation, independent directors do not participate in the Bank’s surplus distribution.

Managers and employees

• a. The Bank’s salary system is divided into recurring salary (principal salary, various allowances) and non-recurring salary (e.g., overtime pay); the salary and remuneration of new recruits are not different due to gender, race, religion, politics, marital status or whether they belong to a trade union; the department approves salary based on academic record, work experience, job performance, professional skills and other standards, and refers to the salary survey results of corporate management consulting companies, compares the salary packages of comparable positions in the industry, and designs a fair, competitive and incentive compensation system.

• b. The employee’s annual salary is equal to one month salary multiplied by 13 months, i.e., 12 calendar months and 1 month salary as Spring Festival bonus; in addition, depending on the Bank’s operating performance and employee’s personal performance in the current year, operating performance bonuses will be paid.

• c. The manager’s salary and remuneration are handled in accordance with the regulations on the salary grade table, the position differential table, and the manager and employee appraisal shall be approved by the board of directors. The remuneration committee reviews manager’s salary and remuneration regularly every year, and considers the relevant regulations on personal performance appraisal, performance and remuneration in order to link performance bonus and risk to prevent managers from undertaking high-risk business due to the pursuit of high remuneration; some operating performance bonuses may be issued or deferred.

(Concluded)

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