T.C.C.B. — Interim / Quarterly Report 2022

Aug 25, 2022

2022.8.29

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

2022 Half Year Financial Highlight

Profitability

• Net Profit after tax NT$ 2.61 billions, 14.50% growth over the same period last year.

• EPS 0.55, 5.77% growth over the same period last year.

Asset quality

• NPL ratio 0.14%、NPL coverage ratio 1,048.19%.

Capital adequacy

• Consolidated：Capital Adequacy Ratio 15.74%、Tier I Capital

• Ratio 13.58%、Common Equity Ratio 11.49%.

• Individual：Capital Adequacy Ratio 15.89%、Tier I Capital Ratio 13.74%、Common Equity Ratio 11.62%.

4

Agenda

■Financial Highlights

■Financial Review ■Financial Information ■Appendix

5

Profitability

Net Profit

( NT$ Million )

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4,796
-6.81% +19.13%
4,320
+14.50% 2,606 4,026
2,276
1H21 1H22 2019 2020 2021
EPS
( NT$ ) -11.21% +6.80%
1.16
1.10
1.03
Remain
0.55 0.55
1H21(Note1) 1H22 2019 2020(Note2) 2021
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Note1：The EPS in 2021Q2 Financial statement was 0.55. After been retroactive adjusted, the EPS of 2021Q2 was 0.52. The growth rate of EPS in 2022Q2 over 2021Q2 was 5.77%. Note2：The EPS in 2020 Financial statement was 1.03. After been retroactive adjusted, the EPS of 2020 was 0.98. The growth rate of EPS in 2021 over 2020 was 12.24%.

6

Profitability

ROA

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0.68%
0.64% 0.64%
0.62%
0.57%
1H21(Note) 1H22(Note) 2019 2020 2021
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ROE

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8.20%
7.76%
1H21(Note) 1H22(Note)
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8.72%
7.94%
7.41%
2019 2020 2021
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Note：ROE and ROA are annualized.
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7

TCB′s Change in Net Profit

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(NT$ Million)
1H21 1H22
YoY 8.52% YoY 7.68% YoY -54.23% YoY 23.48%
6,534 3,197
6,021
2,589
3,072
2,853
579
265
Total Net Revenue Operating Expenses Provision Profit before tax
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8

TCB′s Deposit Breakdown (NT$ Hundred Million)

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Total Deposit
YoY 3.03%
6,733
6,614 6,694 QoQ -0.58%
6,497 6,479
702 775 765 Foreign
711 701
currency
deposits
YoY 7.59%
QoQ -1.29%
2,703 2,635 2,616 2,622 2,650 Time &
saving
deposits
(local
currency)
YoY -1.96%
QoQ 1.07%
Checking &
demand
3,296 3,336 3,279 deposits
3,083 3,143
(local
currency)
YoY 6.36%
QoQ -1.71%
2Q21 3Q21 4Q21 1Q22 2Q22
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9

TCB′s Deposit Structure

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

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48.51% 49.84% 49.55% 48.98%
47.45%
41.60%
40.67%
39.55% 38.94% 39.59%
10.95% 10.82% 10.61% 11.51% 11.43%
2Q21 3Q21 4Q21 1Q22 2Q22
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10

TCB′s Loan Structure

(NT$ Hundred Million)

Corporate Banking

Consumer Banking

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2,631
2,494
2,357 2,444
2,304 2,314
49.89% 50.11% 48.59% 51.41% 48.16% 51.84%
2020 2021 1H22
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	2020	2021	1H22	YTD
Corporate Banking	2,304	2,357	2,444	3.69%
Consumer Banking	2,314	2,494	2,631	5.49%
Total	4,618	4,851	5,075	4.62%

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”.

11

TCB′s Loan Structure by Currency

(NT$ Hundred Million)

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Foreign Currency Loan NTD Loan
4,665
4,474
4,259
92.23% 92.23% 91.92%
410
359 377
7.77% 7.77% 8.08%
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2020 2021 1H22	2020 2021 1H22	2020 2021 1H22	2020 2021 1H22	2020 2021 1H22
	2020	2021	1H22	HoH
NTD Loan	4,259	4,474	4,665	4.27%
Foreign Currency Loan	359	377	410	8.75%
Total	4,618	4,851	5,075	4.62%

12

TCB′s Loan Breakdown

(NT$ Hundred Million)

Total Loan 4,934 5,075 YoY 7.50% 4,721 4,714 4,851 182 202 QoQ 2.86% 196 168 172 Corporate(Note1) YoY 20.24% QoQ 10.99% Consump OBU & Mortgage tion, overseas 1,901 1,933 SME branch , , 14.03% 3.37% 1,886 YoY 2.66% 1,883 1,866 6.09% QoQ 1.68% OBU & overseas branch(Note2) Other 275 301 309 QoQYoY -0.32%2.66% Personal 310 285 Loan, 34.44% 648 683 712 Mortgage 601 616 YoY 18.47% SME, QoQ 4.25% 38.09% 171 165 168 157 160 Consumption Loan YoY 8.92% Corporate QoQ 1.79% , 3.98% 1,602 1,615 1,681 1,699 1,748 Other Personal Loan YoY 9.11% Loan Structure 2Q22 QoQ 2.88% 2Q21 3Q21 4Q21 1Q22 2Q22

Note 1：The balance of Corporate loan included government loans. Note 2：The loan balance of OBU & overseas branch were 27.6 billions and 3.3 billions in NT$ ,respectively.

13

TCB′s Loan Breakdown by Secured

		654 706 764 3,964 4,145 4,311 2020 2021 1H22 Non-secured Secured 15.05% 2020 2021 1H22 HoH Non-secured 654 706 764 8.22% Secured 3,964 4,145 4,311 4.00% Secured by property 3,622 3,767 3,931 4.35% Secured by Letter of Guarantee 166 175 169 -3.43% Others 176 203 211 3.94% Total 4,618 4,851 5,075 4.62% 14.16% 85.84% 14.55% 85.45% 84.95% (NT$ Hundred Million)	654 706 764 3,964 4,145 4,311 2020 2021 1H22 Non-secured Secured 15.05% 2020 2021 1H22 HoH Non-secured 654 706 764 8.22% Secured 3,964 4,145 4,311 4.00% Secured by property 3,622 3,767 3,931 4.35% Secured by Letter of Guarantee 166 175 169 -3.43% Others 176 203 211 3.94% Total 4,618 4,851 5,075 4.62% 14.16% 85.84% 14.55% 85.45% 84.95% (NT$ Hundred Million)	654 706 764 3,964 4,145 4,311 2020 2021 1H22 Non-secured Secured 15.05% 2020 2021 1H22 HoH Non-secured 654 706 764 8.22% Secured 3,964 4,145 4,311 4.00% Secured by property 3,622 3,767 3,931 4.35% Secured by Letter of Guarantee 166 175 169 -3.43% Others 176 203 211 3.94% Total 4,618 4,851 5,075 4.62% 14.16% 85.84% 14.55% 85.45% 84.95% (NT$ Hundred Million)	654 706 764 3,964 4,145 4,311 2020 2021 1H22 Non-secured Secured 15.05% 2020 2021 1H22 HoH Non-secured 654 706 764 8.22% Secured 3,964 4,145 4,311 4.00% Secured by property 3,622 3,767 3,931 4.35% Secured by Letter of Guarantee 166 175 169 -3.43% Others 176 203 211 3.94% Total 4,618 4,851 5,075 4.62% 14.16% 85.84% 14.55% 85.45% 84.95% (NT$ Hundred Million)	654 706 764 3,964 4,145 4,311 2020 2021 1H22 Non-secured Secured 15.05% 2020 2021 1H22 HoH Non-secured 654 706 764 8.22% Secured 3,964 4,145 4,311 4.00% Secured by property 3,622 3,767 3,931 4.35% Secured by Letter of Guarantee 166 175 169 -3.43% Others 176 203 211 3.94% Total 4,618 4,851 5,075 4.62% 14.16% 85.84% 14.55% 85.45% 84.95% (NT$ Hundred Million)
			2020	2021	1H22	HoH
		Non-secured	654	706	764	8.22%
		Secured	3,964	4,145	4,311	4.00%
		Secured by property	3,622	3,767	3,931	4.35%
		Secured by Letter of Guarantee	166	175	169	-3.43%
		Others	176	203	211	3.94%
		Total	4,618	4,851	5,075	4.62%

14

TCB′s Loan to Deposit Ratio(LDR)

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78.76%
NTD LDR
76.34%
75.98%
Overall
75.38%
74.84% LDR
75.88%
73.60%
73.35%
72.71% 72.81%
55.32%
53.69% 53.59%
Foreign
Currency
51.64%
LDR
50.42%
2Q21 3Q21 4Q21 1Q22 2Q22
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15

TCB′s Spreads

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Foreign Currency
Spreads
2.37%
2.19%
Overall
Spreads
2.02%
1.94% 1.94%
1.93% 1.90%
1.82%
1.77%
1.74%
1.75%
[1.73%] [1.73%] [1.73%] [1.73%] [1.74%] [1.73%] [1.75%] [1.73% 1.74%] 1.74% NTD Spreads
[1.71%]
1.68% [1.69%] [1.70%] 1.76%
1.74%
[1.72%] [1.72%] [1.72%] [1.73%] [1.73%] [1.73%] [1.75%] [1.72%] 1.72% 1.73%
[1.70%]
[1.69%]
1.67% [1.68%]
1.66%
1.62%
1.60% [1.61%] [1.61%]
1.59% 1.58% 1.58% [1.59%] [1.61%] 1.58% 1.58%
1.55%
2021/1 2021/2 2021/3 2021/4 2021/5 2021/6 2021/7 2021/8 2021/9 2021/10 2021/11 2021/12 2022/1 2022/2 2022/3 2022/4 2022/5 2022/6
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Note1：Monthly Information.

Note2：The schedule of the Federal Reserve System adjusted target federal fund rates：2022/3/17 raised 0.25%, 2022/5/4 raised 0.50% and 2022/6/16 raised 0.75%.

• Note3：The schedule of Central Bank of the Republic of China (Taiwan) adjusted CBC rates：2022/3/17 raised 0.25% and 2022/6/16 raised 0.125%.

16

TCB′s Net Interest Margin(NIM)

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(NT$ Hundred Million)
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NIM & Average of Interest earning assets
1.34%
1.26% NIM
1.23% 1.24% 1.24%
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Average of Interest earning assets

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7,233
7,175
6,890 6,907 6,924
1Q-2Q21 1Q-3Q21 2021 1Q22 1Q-2Q22
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17

TCB′s Operating Expenses to Net Income

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(NT$ Million)
Net Income Operating Expenses
53.11%
47.38% 50.10%
47.17%
47.02%
Cost-
Income
Ratio
12,603
11,111
10,729
6,534
6,021
5,945
5,567 5,698
2,853 3,072
1H21 1H22 2019 2020 2021
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18

(NT$ Million) TCB′s Asset quality

NPL ratio &NPLs

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0.44%
-0.30%
0.35%
0.22% 0.26% 0.24%
0.21% 0.15% 0.17% 0.14%
NPL ratio
NPLs
2,003
1,579
1,232
1,136
983 1,029
815
744
704
2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22
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19

TCB′s Asset quality

(NT$ Million)

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NPL Coverage Ratio & Loan Loss Provision
+723.94%
1048.19%
898.26% NPL
858.03%
Coverage
644.76% 646.93% Ratio
516.18% 560.64%
430.55%
324.25%
7,384
Loan Loss Provision
6,990
6,797
6,681
6,654
6,494
6,335 6,362 6,372
2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22
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20

Fee Income Breakdown (NT$ Million)

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YoY 5.75%
1,857
Fee Income
1,756
956 YoY 9.55%
926 928 929 QoQ 0.11%
908
848
419 642
Loans
250 Loans
238 YoY 85.64%
231
293
188 349 QoQ 19.11%
Trust
Trust
YoY -25.28%
590
300 QoQ -22.09% 459
321 269 329
258
201
Insurance
Insurance
YoY 22.16%
QoQ 3.86%
353
176 209 422
177 153 207 215 Securities
YoY -50.69% Securities
QoQ -12.50%
216
127 116 97 135
89 72 63
Others
90 88 90 100 98 101 YoY 14.77% 178 199 Others
QoQ 3.06%
1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1H21 1H22
21
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Wealth Management Income

(NT$ Million) 73 56 68 51 41 41 2 1 1 36 72 76 177 176 153 209 207 215 222 184 231 214 164 110 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 510 417 453 474 Total Income YoY 6.00% QoQ -8.68% Mutual Fund Fee Income YoY-40.22% QoQ -32.93% Insurance Fee Income YoY 22.16% QoQ 3.86% Other(Note) Fee Income YoY -26.79% QoQ 0.00% 442 484 129 82 3 148 353 422 406 274 1H21 1H22 Mutual Fund Fee Income Insurance Fee Income Structured Investment Income Other Fee Income 891 926 YoY 3.93% Structured Investment Income YoY 7500.00% QoQ 5.56%

Note：Others are comprised of foreign bond, structured note, exchange traded fund , preferred stock, and etc.

22

Profit of Subsidiary to TCB

(NT$ Million)

Net Profit after tax	1H21	1H22	YoY
TCB	1,980	2,497	26.11%
Subsidiary	296	109	-63.18%
Total	2,276	2,606	14.50%

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Subsidiary of TCB,
13.01%
TCB,
86.99%
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1H21 Profit Breakdown
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Subsidiary of TCB,
4.18%
TCB,
95.82%
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1H22 Profit Breakdown
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23

Capital Adequacy

Consolidated

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BIS
+1.59%
16.32%
16.16%
15.74%
15.28%
15.06%
BIS
14.15% 13.93%
14.11% 13.99% 14.20% 14.06% Tier I Capital Ratio
13.58%
13.08%
12.87%
Common Equity
11.81% 11.72% 12.00% 11.91% 11.49% Ratio
10.86% 10.73%
2020 1Q21[Note] 1H21 3Q21[Note] 2021 1Q22[Note] 1H22
Individual
BIS
+2.29%
15.81% 16.32% 15.89%
14.83% BIS
14.54%
13.60%
13.38%
14.23% 14.24% 14.21% Tier I Capital Ratio
14.01%
13.74%
13.06%
12.82%
12.10% 11.92% 12.24% 12.03% 11.62% Common Equity Ratio
11.03% 10.87%
2020 1Q21[Note] 1H21 3Q21[Note] 2021 1Q22[Note] 1H22
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Note : Self-assessed

24

Agenda

■Financial Highlights

■Financial Review

■Financial Information ■Appendix

25

Balance Sheet (Individual)

(NT$ Million)

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2019 2020 2021 1H22 YTD
Assets：
Cash and due from banks 44,134 51,588 55,821 49,080 -12.08%
Financial investment, net 173,347 195,628 201,027 192,482 -4.25%
Loans, net 434,469 455,442 478,441 500,161 4.54%
A/R, net 4,064 3,546 3,176 3,026 -4.72%
LT investments, net 5,491 5,440 6,064 5,790 -4.52%
Properties and equipment
10,620 12,277 13,708 14,828 8.17%
, net
Others 2,898 3,755 4,101 4,003 -2.39%
Total Assets 675,023 727,676 762,338 769,370 0.92%
Liabilities：
Deposits 584,866 638,274 661,383 669,443 1.22%
Other liabilities 38,848 32,080 37,495 36,185 -3.49%
Total Liabilities 623,714 670,354 698,878 705,628 0.97%
Total Equity 51,309 57,322 63,460 63,742 0.44%
Total Liabilities and Equity 675,023 727,676 762,338 769,370 0.92%
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26

P&L (Individual)

(NT$ Million)

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2019 2020 2021 1H21 1H22 YoY
Net Interest 7,902 7,848 8,696 4,285 4,854 13.28%
Service Fee Income, net 1,926 2,117 2,482 1,191 1,299 9.07%
Other Net Revenue 1,283 764 1,425 545 381 -30.09%
Total Net Revenue 11,111 10,729 12,603 6,021 6,534 8.52%
Operating Expenses (5,567) (5,698) (5,945) (2,853) (3,072) 7.68%
Pre-provision Profit 5,544 5,031 6,658 3,168 3,462 9.28%
Provision for Bad Debts (477) (366) (1,204) (579) (265) -54.23%
Profit Before Income Tax 5,067 4,665 5,454 2,589 3,197 23.48%
Income Tax Expense (747) (639) (658) (313) (591) 88.82%
Net Profit After Income Tax 4,320 4,026 4,796 2,276 2,606 14.50%
Other Comprehensive Income[Note] 153 448 88 311 (1,190) -482.64%
Total Comprehensive Income for the
4,473 4,474 4,884 2,587 1,416 -45.26%
Year
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Note：1H22 Other Comprehensive Income NT$ -1,190 million is mainly comprised of Unrealized (losses) gains on investments in debt instruments designated as at fair value through other comprehensive income NT$ -1,176 million.

27

Balance Sheet (Consolidated)

(NT$ Million)

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2019 2020 2021 1H22 YTD
Assets：
Cash and due from banks 45,237 52,081 56,159 49,946 -11.06%
Financial investment, net 174,356 197,275 202,664 193,993 -4.28%
Loans, net 435,398 456,541 479,806 501,484 4.52%
A/R, net 12,820 13,484 14,352 14,463 0.77%
LT investments, net 157 163 165 171 3.64%
Properties and equipment
10,684 12,333 13,755 14,873 8.13%
, net
Others 4,037 4,893 5,777 4,933 -14.61%
Total Assets 682,689 736,770 772,678 779,863 0.93%
Liabilities：
Deposits 583,322 636,589 659,116 667,885 1.33%
Other liabilities 48,058 42,859 50,102 48,236 -3.72%
Total Liabilities 631,380 679,448 709,218 716,121 0.97%
Total Equity 51,309 57,322 63,460 63,742 0.44%
Total Liabilities and Equity 682,689 736,770 772,678 779,863 0.93%
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28

P&L (Consolidated)

(NT$ Million)

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2019 2020 2021 1H21 1H22 YoY
Net Interest 8,351 8,279 9,278 4,563 5,144 12.73%
Service Fee Income, net 2,913 2,906 3,375 1,627 1,723 5.90%
Other Net Revenue 831 459 1,069 400 178 -55.50%
Total Net Revenue 12,095 11,644 13,722 6,590 7,045 6.90%
Operating Expenses (6,273) (6,366) (6,784) (3,282) (3,445) 4.97%
Pre-provision Profit 5,822 5,278 6,938 3,308 3,600 8.83%
Provision for Bad Debts (615) (519) (1,369) (673) (336) -50.07%
Profit Before Income Tax 5,207 4,759 5,569 2,635 3,264 23.87%
Income Tax Expense (887) (733) (773) (359) (658) 83.29%
Net Profit After Income Tax 4,320 4,026 4,796 2,276 2,606 14.50%
Other Comprehensive
153 448 88 311 (1,190) -482.64%
Income[Note]
Total Comprehensive Income
4,473 4,474 4,884 2,587 1,416 -45.26%
for the Year
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Note：The note is the same as P.27

29

Agenda

■Financial Highlights ■Financial Review ■Financial Information ■Appendix

30

Re-evolution of Customer Service With the Debut of the Smart Tai Mei

• In order to improve service quality; to respond to the trend towards digitization of financial services; and to quickly answer customer’s real-time inquiries, the Bank has launched the chatbot agent "Smart Tai Mei". Through the Bank’s service channels such as the main website, online banking, and mobile banking app, customers may click on the "Smart Tai Mei" avatar to open a dialog window - 24 hours a day. Questions can be asked at any time, and a live text service agent is also available every Monday to Friday from 9:00 am to 6:00 pm.

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• The "Smart Tai Mei" has knowledge in three fields: deposits; credit cards; and digital finance. In addition, credit card account inquiry service is provided. After entering an ID number, the system will send an OTP verification code to the customer's mobile phone, and the customer will be able query credit card statements, available balance, bonus points, and re-sending e-statements at any time.

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31

Friendly Financial Services Upgraded; Adding Voice ATMs for the Visually Impaired

• In order to meet the needs of visually impaired customers, provide more convenient and friendly financial services, and implement the principle of fair hospitality and care for disadvantaged groups, the Bank has set up 20 voice ATMs throughout Northern, Central and Southern Taiwan. These provide a more user-friendly environment and functions for our visually impaired customers to operate with peace of mind and to facilitate transfer and withdrawal of funds, thus further upgrading the Bank’s friendly financial services.

• The Bank recognizes the necessity of providing visually impaired customers with easy access to our voice ATMs. In line with our annual replacement plan, the Bank plans to increase the number of voice ATMs to 85 in the next five years. This will enable our visually impaired customers to experience safer, more convenient, and friendlier inclusive financial services at ATMs.

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32

Focusing on Climate Change; Signing on as a Supporter of the TCFD Initiative

 Signing on as a TCFD Supporter

• The Bank has signed on as a supporter of the Task Force on Climate-Related Financial Disclosures (TCFD) issued by the Financial Stability Board (FSB) in June 2022. The Bank is actively responding to the risks and opportunities brought about by climate change, and continues paying attention to climate change issues.

 TCFD Disclosure

• The Bank implements effective management of climate change through the Sustainable Development Execution Team, and applies climate risk- and opportunity- governance to the management of corporate operations. At present, in accordance with the TCFD team’s recommendations, the Bank has presented the four cores – governance; strategy; risk management; and indicators & goals – in our 2021 Sustainability Report.

 Greenhouse Gas Inventory Report

• The Bank began to issue our Greenhouse Gas Inventory Report in 2018. Through external verification in the BSI Greenhouse Gas Inventory, the Bank inventoried our head office buildings (Minquan Building and Minzu Building), South Taichung Branch (including dormitory), and Staff Training Center (including Taiping Branch), which are mainly used as office buildings and server space. The Bank also continues complying with the government's green energy development policy by adding solar photovoltaic systems to the top floors of some buildings.

The Bank does all this to implement low-carbon operations and environmental sustainability, and continues to strengthen our focus on ESG issues.

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Thanks for your listening!

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