T.C.C.B. — Interim / Quarterly Report 2021

Nov 18, 2021

2021.11.22

Disclaimer

• This presentation is provided by Taichung Commercial Bank(TCB). Users should read this material in conjunction with all other public financial and operational information filed to the competent authorities by TCB. While we endeavor to provide accurate, complete and consistent information herein, TCB makes no guarantee or warranties as to the accuracy or correctness of all the material contained. After this presentation is released to the public, we undertake no obligation to update any relevant data to reflect any change hereafter.

• Users should also notice that this presentation may contain forward-looking statements. Statements that are not historical facts, including statements relating to the implementation of strategic initiatives, future business development and economic performance are forward-looking statements. By their nature, forward-looking statements involve uncertainties, risks, assumptions and other factors that could cause actual developments and results to differ materially from our statement in this presentation. These factors include, but not limited to, regulatory developments, competitive conditions, technological developments, general economic conditions and management changes.

• The information, statements or opinions in this presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy any securities or financial instruments or any advice or recommendation respect to such securities or other financial instruments. TCB and its affiliates representatives, no matter for their negligence or any other reasons, should not be liable for any loss or damages arising from the use of or interpretation by others of information contained within this presentation or any matter related to this document.

2

Agenda

■Financial Highlights

■Financial Review

■Financial Information ■Appendix

3

2021 Q3 Financial Highlight

Profitability

• Net Profit after tax 3.57 billions, 21.45% growth over the same period last year.

• EPS 0.82, 13.89% growth over the same period last year.

Asset quality

• NPL ratio 0.24%、NPL coverage ratio 560.64%.

Capital adequacy

• Consolidated：Capital Adequacy Ratio 15.06%、Tier I Capital

• Ratio 13.99%、Common Equity Ratio 11.72%.

• Individual：Capital Adequacy Ratio 14.54%、Tier I Capital Ratio 14.01%、Common Equity Ratio 11.92%.

4

Agenda

■Financial Highlights

■Financial Review ■Financial Information ■Appendix

5

Profitability

Net Profit

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( NT$ Million )
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+21.45% 3,567
2,937
1Q-3Q20 1Q-3Q21
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YOY +7.78% YOY -6.81%
4,320
4,026
4,008
2018 2019 2020
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EPS
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( NT$ )
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YOY -1.69% YOY -11.21%
1.16
1.18
+13.89% 0.82
0.72
1.03
1Q-3Q20 1Q-3Q21 2018 2019(Note) 2020
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Note：The EPS of 2019 was adjusted retroactively as 1.11. The growth rate of EPS in 2020 over 2019 was -7.21%.

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Profitability

ROA

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0.65%
0.64%
0.57% 0.60%
0.57%
1Q-3Q20(Note) 1Q-3Q21(Note) 2018 2019 2020
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ROE

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8.09%
7.47%
1Q-3Q20(Note) 1Q-3Q21(Note)
Note：ROE and ROA are annualized.
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8.79% 8.72%
7.41%
2018 2019 2020
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TCB′s Change in Net Profit

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(NT$ Million)
1Q-3Q20 1Q-3Q21
1Q-3Q20 1Q-3Q21
YoY 16.64% YoY 8.33% YoY 94.86% YoY 20.02%
4,089
9,132
3,407
7,829
4,474
4,130
569
292
Profit before tax
Total Net Operating Provision
Revenue Expenses
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8

TCB′s Deposit Breakdown (NT$ Hundred Million)

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Total Deposit
YoY 4.69%
6,497
6,382 6,416 6,479 QoQ -0.28%
6,189
640 660 711 701 Foreign
651 currency
deposits
YoY 7.68%
QoQ -1.41%
2,740 2,760 2,703 2,635 Time &
2,773 saving
deposits
(local
currency)
YoY -4.98%
QoQ -2.52%
Checking &
demand
3,002 2,996 3,083 3,143
2,765 deposits
(local
currency)
YoY 13.67%
QoQ 1.95%
3Q20 4Q20 1Q21 2Q21 3Q21
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TCB′s Deposit Structure

Checking & demand deposits (local currency) Time & saving deposits(local currency) Foreign currency deposits

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48.51%
47.04% 46.70% 47.45%
44.68% 44.80%
42.93% 43.02%
41.60%
40.67%
10.52% 10.03% 10.28% 10.95% 10.82%
3Q20 4Q20 1Q21 2Q21 3Q21
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10

TCB′s Loan Structure

(NT$ Hundred Million)

Corporate Banking

Consumer Banking

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2,304 2,314 2,323 2,391
2,254
2,156
51.11% 48.89% 49.89% 50.11% 49.28% 50.72%
2019 2020 3Q21
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	2019	2020	3Q21	YTD
Corporate Banking	2,254	2,304	2,323	0.82%
Consumer Banking	2,156	2,314	2,391	3.33%
Total	4,410	4,618	4,714	2.08%

[Note] The classification of Corporate Banking and Consumer Banking is based on the asset quality classification from the Article 16 in "Regulations Governing the Preparation of Financial Reports by Public Banks”.

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TCB′s Loan Structure by Currency

(NT$ Hundred Million)

Foreign Currency Loan

NTD Loan

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4,259 4,352
4,031
91.41% 92.23% 92.32%
379 359 362
8.59% 7.77% 7.68%
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2019 2020 3Q21	2019 2020 3Q21	2019 2020 3Q21	2019 2020 3Q21	2019 2020 3Q21
	2019	2020	3Q21	YTD
NTD Loan	4,031	4,259	4,352	2.18%
Foreign Currency Loan	379	359	362	0.84%
Total	4,410	4,618	4,714	2.08%

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TCB′s Loan Breakdown

Total Loan (NT$ Hundred Million) YoY 3.35% 4,726 4,721 4,714 QoQ -0.15% 4,561 4,618 191 168 172 Corporate(Note1) 185 189 YoY -7.03% Mortgage Consumption QoQ 2.38% 13.07% Loan OBU & 3.39% SME overseas YoY 2.30% 1,884 1,883 1,866 branch 1,834 QoQ -0.90% 1,824 6.05% Other OBU & overseas branch(Note2) Personal YoY -4.68% Loan QoQ -8.06% 299 281 320 310 285 34.26% Mortgage SME 573 586 601 616 YoY 9.61% 562 QoQ 2.50% 39.58% 150 152 157 160 145 Consumption Loan YoY 10.34% Corporate QoQ 1.91% 3.65% 1,546 1,591 1,593 1,602 1,615 Other Personal Loan YoY 4.46% Loan Structure 3Q21 QoQ 0.81% 3Q20 4Q20 1Q21 2Q21 3Q21

Note 1：The balance of Corporate loan included government loans. Note 2：The loan balance of OBU & overseas branch were 25.5 billions and 3 billions in NT$ ,respectively.

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TCB′s Loan Breakdown

		664 654 691 3,746 3,964 4,023 2019 2020 3Q21 Non-secured Secured 14.66% 2019 2020 3Q21 YTD Non-secured 664 654 691 5.66% Secured 3,746 3,964 4,023 1.49% Secured by property 3,437 3,622 3,653 0.86% Secured by Letter of Guarantee 149 166 173 4.22% Others 160 176 197 11.93% Total 4,410 4,618 4,714 2.08% 15.06% 84.94% 14.16% 85.84% 85.34% (NT$ Hundred Million)	664 654 691 3,746 3,964 4,023 2019 2020 3Q21 Non-secured Secured 14.66% 2019 2020 3Q21 YTD Non-secured 664 654 691 5.66% Secured 3,746 3,964 4,023 1.49% Secured by property 3,437 3,622 3,653 0.86% Secured by Letter of Guarantee 149 166 173 4.22% Others 160 176 197 11.93% Total 4,410 4,618 4,714 2.08% 15.06% 84.94% 14.16% 85.84% 85.34% (NT$ Hundred Million)	664 654 691 3,746 3,964 4,023 2019 2020 3Q21 Non-secured Secured 14.66% 2019 2020 3Q21 YTD Non-secured 664 654 691 5.66% Secured 3,746 3,964 4,023 1.49% Secured by property 3,437 3,622 3,653 0.86% Secured by Letter of Guarantee 149 166 173 4.22% Others 160 176 197 11.93% Total 4,410 4,618 4,714 2.08% 15.06% 84.94% 14.16% 85.84% 85.34% (NT$ Hundred Million)	664 654 691 3,746 3,964 4,023 2019 2020 3Q21 Non-secured Secured 14.66% 2019 2020 3Q21 YTD Non-secured 664 654 691 5.66% Secured 3,746 3,964 4,023 1.49% Secured by property 3,437 3,622 3,653 0.86% Secured by Letter of Guarantee 149 166 173 4.22% Others 160 176 197 11.93% Total 4,410 4,618 4,714 2.08% 15.06% 84.94% 14.16% 85.84% 85.34% (NT$ Hundred Million)	664 654 691 3,746 3,964 4,023 2019 2020 3Q21 Non-secured Secured 14.66% 2019 2020 3Q21 YTD Non-secured 664 654 691 5.66% Secured 3,746 3,964 4,023 1.49% Secured by property 3,437 3,622 3,653 0.86% Secured by Letter of Guarantee 149 166 173 4.22% Others 160 176 197 11.93% Total 4,410 4,618 4,714 2.08% 15.06% 84.94% 14.16% 85.84% 85.34% (NT$ Hundred Million)
			2019	2020	3Q21	YTD
		Non-secured	664	654	691	5.66%
		Secured	3,746	3,964	4,023	1.49%
		Secured by property	3,437	3,622	3,653	0.86%
		Secured by Letter of Guarantee	149	166	173	4.22%
		Others	160	176	197	11.93%
		Total	4,410	4,618	4,714	2.08%

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TCB′s Loan to Deposit Ratio(LDR)

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Overall LDR NTD LDR Foreign Currency LDR
75.53% 75.38%
75.07%
74.84%
74.35%
73.68% 73.71%
72.71% 72.81%
72.51%
61.88%
57.99%
56.03% 55.32%
51.64%
3Q20 4Q20 1Q21 2Q21 3Q21
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TCB′s Spreads

NTD Spreads Foreign Currency Spreads

Overall Spreads

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2.20%
2.14%
2.12%
2.04%
1.92%
1.78%1.78% [1.79%]
1.76% 1.74% [1.73%] 1.73% 1.73%1.74%
1.71% [1.73%]
1.75%1.75% [1.77%] 1.69%1.68%1.69% 1.70%
1.73% 1.60% 1.59% [1.60%] 1.63%1.64%
1.62% [1.70% 1.72%1.72%1.72%1.73% 1.73%]
1.59% 1.58%1.59% 1.68%1.67% [1.68%1.69%]
1.61% [1.62%] 1.62%
1.59% 1.60% [1.61% 1.61%] 1.58% 1.58% [1.59%]
1.57%
1.57%1.55% 1.54% 1.55% 1.54% 1.55%
1.50%
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16

TCB′s Net Interest Margin(NIM)

(NT$ Hundred Million)

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NIM
1.24%
1.23%
1.21%
1.18%
1.17%
Average of Interest earning assets
6,882 6,890 6,907
6,497 6,530
1Q-3Q20 2020 1Q21 1Q-2Q21 1Q-3Q21
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17

TCB′s Operating Expenses to Net Income

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(NT$ Million)
Net Income Cost-Income Net Income Cost-Income
Operating Expenses Ratio Operating Expenses Ratio
52.75% 52.70% 53.11%
48.99% 50.10%
9,132 10,675 11,111 10,729
7,829
5,626 5,698
4,130 4,474 5,567
1Q-3Q20 1Q-3Q21 2018 2019 2020
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(NT$ Million) TCB′s Asset quality

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NPL ratio &NPLs
NPL ratio NPLs
-0.07%
0.44%
0.31%
0.21% 0.22% 0.26% 0.24%
2,003
1,382
1,232
1,136
983 1,029
4Q19 2Q20 4Q20 1Q21 2Q21 3Q21
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TCB′s Asset quality

(NT$ Million)

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NPL Coverage Ratio & Loan Loss Provision
+85.10%
Loan Loss Provision
NPL Coverage Ratio
644.76% 646.93%
560.64%
516.18%
475.54%
324.25%
6,654
6,573
6,494
6,362 6,372
6,335
4Q19 2Q20 4Q20 1Q21 2Q21 3Q21
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Fee Income Breakdown (NT$ Million)

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YoY 15.50%
926 Fee Income
908
YoY 9.59% 2,682
QoQ 9.20%
845 848
824
231 238 Loans 2,322 657
166 188 YoY 43.37% Loans
202 QoQ 26.60%
518
Trust
299 321 269 329 YoY 10.03% 919 Trust
QoQ 22.30%
305 764
Insurance &
Insurance
Securities
YoY -10.63% &
301 266 303 269 QoQ -11.22% 815 838 Securities
225
Others
YoY 13.92% Others
79 92 90 88 90 QoQ 2.27% 225 268
1Q-3Q20 1Q-3Q21
3Q20 4Q20 1Q21 2Q21 3Q21
21
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Wealth Management Fee Income

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(NT$ Million)
YoY 9.86%
1,672
583
568 Total
561
543 YoY -2.57% 1,522
QoQ 4.60%
509
158
637
Mutual Fund 443
222 184 231 YoY 46.20%
QoQ 25.54%
205 Mutual
Fund
Insurance &
301 Securities
YoY -10.63%
815 Insurance
QoQ -11.22% 838
266 303 269 &
225
Securities
Others
YoY -45.16%
124 Others
79 73 68 QoQ 21.43% 264 197
56
3Q20 4Q20 1Q21 2Q21 3Q21 1Q-3Q20 1Q-3Q21
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Profit of Subsidiary to TCB

(NT$ Million) Net Profit after tax 1Q-3Q20 1Q-3Q21 YoY TCB 2,681 3,167 18.13% Subsidiary 256 400 56.25% Total 2,937 3,567 21.45%	(NT$ Million) Net Profit after tax 1Q-3Q20 1Q-3Q21 YoY TCB 2,681 3,167 18.13% Subsidiary 256 400 56.25% Total 2,937 3,567 21.45%	(NT$ Million) Net Profit after tax 1Q-3Q20 1Q-3Q21 YoY TCB 2,681 3,167 18.13% Subsidiary 256 400 56.25% Total 2,937 3,567 21.45%	(NT$ Million) Net Profit after tax 1Q-3Q20 1Q-3Q21 YoY TCB 2,681 3,167 18.13% Subsidiary 256 400 56.25% Total 2,937 3,567 21.45%
Net Profit after tax	1Q-3Q20	1Q-3Q21	YoY
TCB	2,681	3,167	18.13%
Subsidiary	256	400	56.25%
Total	2,937	3,567	21.45%

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Subsidiary of TCB
8.72%
TCB
91.28%
1Q-3Q20 Profit Breakdown
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Subsidiary of TCB
11.21%
TCB
88.79%
1Q-3Q21 Profit Breakdown
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Capital Adequacy

Consolidated

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BIS
BIS Tier I Capital Ratio Common Equity Ratio +1.15%
15.28% 15.06%
13.91% 13.57% 14.15% 13.93%
14.11% 13.99%
12.77% 12.57% 13.08% 12.87%
11.81% 11.72%
10.86% 10.73%
10.41% 10.28%
2019 1H20 2020 1Q21[Note] 1H21 3Q21[Note]
Individual
BIS Tier I Capital Ratio Common Equity Ratio BIS
+1.31%
14.83%
14.54%
13.23% 13.60% 13.38%
12.94%
14.23%
14.01%
13.06%
12.64% 12.82%
12.45%
12.10% 11.92%
11.03% 10.87%
10.49% 10.34%
2019 1H20 2020 1Q21[Note] 1H21 3Q21[Note]
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Note : It was exposed by our company without accountant review

24

Agenda

■Financial Highlights

■Financial Review

■Financial Information ■Appendix

25

Balance Sheet (Individual)

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(NT$ Million)
2018 2019 2020 3Q21 YTD
Assets：
Cash and due from banks 46,740 44,134 51,588 49,960 -3.16%
Financial investment, net 163,891 173,347 195,628 196,826 0.61%
Loans, net 451,729 434,469 455,442 465,106 2.12%
A/R, net 5,028 4,064 3,546 2,846 -19.74%
LT investments, net 5,225 5,491 5,440 5,702 4.82%
Properties and equipment
9,368 10,620 12,277 13,243 7.87%
, net
Others 2,178 2,898 3,755 3,750 -0.13%
Total assets 684,159 675,023 727,676 737,433 1.34%
Liabilities：
Deposits 589,243 584,866 638,274 647,856 1.50%
Other Liabilities 47,092 38,848 32,080 29,385 -8.40%
Total Liabilities 636,335 623,714 670,354 677,241 1.03%
Total Equity 47,824 51,309 57,322 60,192 5.01%
Total liabilities and equity 684,159 675,023 727,676 737,433 1.34%
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P&L (Individual)

(NT$ Million)

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2018 2019 2020 1Q-3Q20 1Q-3Q21 YoY
Net interest income 7,991 7,902 7,848 5,840 6,480 10.96%
Net fee income 1,793 1,926 2,117 1,525 1,842 20.79%
Others 891 1,283 764 464 810 74.57%
Total Operating Income 10,675 11,111 10,729 7,829 9,132 16.64%
Operating expenses (5,626) (5,567) (5,698) (4,130) (4,474) 8.33%
Pre-provision Profit 5,049 5,544 5,031 3,699 4,658 25.93%
Credit Loss Provisions,
(411) (477) (366) (292) (569) 94.86%
net
Profit Before Income Tax 4,638 5,067 4,665 3,407 4,089 20.02%
Tax Fee (630) (747) (639) (470) (522) 11.06%
Net Profit After Income
4,008 4,320 4,026 2,937 3,567 21.45%
Tax
Other Profits 34 153 448 430 300 -30.23%
Current period other
4,042 4,473 4,474 3,367 3,867 14.85%
com rehensive income
p
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Balance Sheet (Consolidated)

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(NT$ Million)
2018 2019 2020 3Q21 YTD
Assets：
Cash and due from banks 47,644 45,237 52,081 50,467 -3.10%
Financial investment, net 165,027 174,356 197,275 198,280 0.51%
Loans, net 452,595 435,398 456,541 466,432 2.17%
A/R, net 12,781 12,820 13,484 14,868 10.26%
LT investments, net 153 157 163 167 2.45%
Properties and equipment
9,447 10,684 12,333 13,293 7.78%
, net
Others 3,185 4,037 4,893 4,793 -2.04%
Total assets 690,832 682,689 736,770 748,300 1.56%
Liabilities：
Deposits 587,968 583,322 636,589 646,174 1.51%
Other Liabilities 55,040 48,058 42,859 41,934 -2.16%
Total Liabilities 643,008 631,380 679,448 688,108 1.27%
Total Equity 47,824 51,309 57,322 60,192 5.01%
Total liabilities and equity 690,832 682,689 736,770 748,300 1.56%
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P&L (Consolidated)

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(NT$ Million)
2018 2019 2020 1Q-3Q20 1Q-3Q21 YoY
Net interest income 8,434 8,351 8,279 6,150 6,911 12.37%
Net fee income 2,846 2,913 2,906 2,135 2,487 16.49%
Others 409 831 459 230 580 152.17%
Total Operating Income 11,689 12,095 11,644 8,515 9,978 17.18%
Operating expenses (6,457) (6,273) (6,366) (4,643) (5,115) 10.17%
Pre-provision Profit 5,232 5,822 5,278 3,872 4,863 25.59%
Credit Loss Provisions,
(472) (615) (519) (399) (696) 74.44%
net
Profit Before Income Tax 4,760 5,207 4,759 3,473 4,167 19.98%
Tax Fee (752) (887) (733) (536) (600) 11.94%
Net Profit After Income
4,008 4,320 4,026 2,937 3,567 21.45%
Tax
Other Profits 34 153 448 430 300 -30.23%
Current period other
4,042 4,473 4,474 3,367 3,867 14.85%
com rehensive income
p
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29

Agenda

■Financial Highlights ■Financial Review ■Financial Information ■Appendix

30

Co-creating economic and trade value Strengthening the sense of economic community

In response to changes in global situations and regional integration trends, the New Southbound Policy of Taiwan has played an important role in the nation’s diplomacy, economy and trade. To comply with the core beliefs of "long-term deep cultivation, diversified development, and mutual benefit" in the New Southbound Policy promotion plan, Taichung Bank continues to cultivate the Southeast Asian market. In September 2021, the “ Penang Marketing Office ” was set up in Malaysia. Together with the Labuan Branch and the Kuala Lumpur Marketing Office, Taichung Bank has established 3 overseas offices in Malaysia.

In October 2021, Taichung Bank was awarded as the outstanding bank of " Lending Service to Enterprises in Target Countries of the New Southbound Policy “ by the Financial Supervisory Commission. In the future, by providing of various financial products and services, we will continuously promote the growth of small and medium-sized enterprises to jointly create regional economic development and prosperity, building a new model for Taiwan’s economic development.

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31

Life in an environmentally friendly and low-carbon world Resource recycling and environmental protection

In response to the greenhouse gas reduction targets of the Paris Agreement, Taichung Bank took the initiative to promote green workplace and passed the greenhouse gas inventory external verification conducted by BSI for three consecutive years since 2018. In 2020, the boundary of the inventory verification was expanded from the head office buildings (the Minquan Building and the Minzu Building) to the South Taichung Branch, the Taiping Branch, the staff dormitory and the staff training center.

Through the incorporation of systematic calculation methods, the management for energy and carbon emission is improved. To comply with the government's policy in renewable energy development, Taichung Bank has installed solar photovoltaic systems on the roof top some branch buildings to meet the requirements of low-carbon operation and environmental sustainability, continuing to pay attention to the ESG issues.

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32

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Thanks for your listening!

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