T.C.C.B. — Investor Presentation 2021

Mar 12, 2021

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2021.3.15

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.

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2

A enda g

■Financial Highlights

■Financial Review

■Financial Information ■Appendix

3

2020 Financial Hi hli ht g g

Profitability

• Net Profit after tax 4.0billions, declined by 6.81% over the same period last year.

• EPS 1.03, declined by 7.21% over the same period last year.

Asset quality

• NPL ratio 0.21%、NPL coverage ratio 644.76%.

Capital adequacy

• Consolidated：Capital Adequacy Ratio 14.15%、Tier I Capital Ratio 13.08%、Common Equity Ratio 10.86%.

• Individual：Capital Adequacy Ratio 13.60%、Tier I Capital Ratio

• 13.06%、Common Equity Ratio 11.03%.

4

A enda g

■Financial Highlights

■Financial Review

■Financial Information

■Appendix

5

Profitabilit y

Net Profit

( NT$ Million )

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4,320
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4,008 +7.78%
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2018 2019

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-6.81% 4,026
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2020

EPS

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( NT$ )
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1.16
1.18
-1.69%
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2018

2019(Note)

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1.03
-11.21%
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2020
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Note：The EPS of 2019 was adjusted retroactively as 1.11. The growth rate between 2019 and 2020 declined by 7.21%.

6

(NT$)

Proposal for the distribution of earnings

Cash dividends Stock dividends

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0.52 0.52
0.45
0.28 0.28
65.00% 65.00% 0.24
65.22%
35.00% 35.00%
34.78%
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2018
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2019
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2020(Note)

	2018	2019	2020
Dividend Per Share	0.80	0.80	0.69
Cash dividends	0.28	0.28	0.24
Stock dividends	0.52	0.52	0.45

Note：The proposal for the distribution of earnings in 2020 is pending on the resolution of the General Meeting of shareholders scheduled to be held in May 28, 2021.

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7

Profitabilit y

ROA

0.64%

0.60%

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0.57%
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2018

2019 2020

ROE

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8.79% 8.72%
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7.41%
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2020
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2018

2019

8

Chan e in Net Profit g

(NT$ Million)

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2019 2020
2019 2020
YoY -3.44% YoY 2.35% YoY -23.27% YoY -7.95%
5,067
11,111 10,729
4,665
5,567 5,698
477 366
Operating Operating Provision Profit before tax
Revenue Expenses
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9

De osit Breakdown (NT$ Hundred Million) p

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Total Deposit
YoY 9.11%
6,382
6,189 QoQ 3.12%
6,159
5,849 5,878
640 Foreign
666 651 currency
558 578 deposits
YoY 14.70%
QoQ -1.69%
2,740 Time & saving
2,807 2,773 deposits (local
2,696 2,697
currency)
YoY 1.63%
QoQ -1.19%
Checking &
demand
deposits (local
currency)
3,002
2,595 2,603 2,686 2,765 YoY 15.68%
QoQ 8.57%
4Q19 1Q20 2Q20 3Q20 4Q20
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(%)

De osit Structure p

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

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47.04%
46.09%
45.58%
44.37%
43.61%
42.93%
10.81%
9.54% 10.03%
4Q19 2Q20 4Q20
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11

Loan Structure (NT$ Hundred Million)

Corporate Banking Consumer Banking

	2,363 2,254 2,304 2,219 2,156 2,314 50.11% 49.89% 51.11% 48.89% 51.57% 48.43%	2,363 2,254 2,304 2,219 2,156 2,314 50.11% 49.89% 51.11% 48.89% 51.57% 48.43%	2,363 2,254 2,304 2,219 2,156 2,314 50.11% 49.89% 51.11% 48.89% 51.57% 48.43%	2,363 2,254 2,304 2,219 2,156 2,314 50.11% 49.89% 51.11% 48.89% 51.57% 48.43%	2,363 2,254 2,304 2,219 2,156 2,314 50.11% 49.89% 51.11% 48.89% 51.57% 48.43%
	2018 2019 2020 2018 2019 2020 YoY Corporate Banking 2,363 2,254 2,304 2.22% Consumer Banking 2,219 2,156 2,314 7.33% Total 4,582 4,410 4,618 4.72%
		2018	2019	2020	YoY
	Corporate Banking	2,363	2,254	2,304	2.22%
	Consumer Banking	2,219	2,156	2,314	7.33%
	Total	4,582	4,410	4,618	4.72%

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Consumer Bankin -Consum tion Loans g p

(NT$ Hundred Million)

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Average Rate NPL Rate
4.48% 4.45%
4.10%
0.51% 0.48%
0.18%
141
+17.50%
120
110
Local
Bank
16.46%
2018 2019 2020
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Note：Customption loans are not contain residential mortgage loans、loan of cash card、 credit card and debit card.

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Loan Structure b Currenc (NT$ Hundred Million) y y

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Foreign Currency Loan NTD Loan
4,199 4,259
4,031
91.64% 91.41% 92.23%
383 379 359
8.36% 8.59% 7.77%
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383 379 359 7.77% 8.59% 8.36%	383 379 359 7.77% 8.59% 8.36%	383 379 359 7.77% 8.59% 8.36%	383 379 359 7.77% 8.59% 8.36%	383 379 359 7.77% 8.59% 8.36%
2018 2019 2020
	2018	2019	2020	YoY
NTD Loan	4,199	4,031	4,259	5.66%
Foreign Currency Loan	383	379	359	-5.28%
Total	4,582	4,410	4,618	4.72%

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Loan Breakdown (NT$ Hundred Million)

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Total Loan
YoY 4.72%
4,618 QoQ 1.25%
4,534 4,561
4,410 4,436
194 207 223 185 189 YoY -2.58% Corporate OBU & Mortgage ConsumptionLoan
QoQ 2.16% 12.41% 3.25%
Overseas
SME branch
YoY 4.44%
1,834 6.09%
1,789 1,824 QoQ 0.55%
1,756 1,752
Other
OBU & Overseas
Personal
branch(Note)
YoY -7.57% Loan
281 QoQ -6.02%
304 313 306 299 34.45%
SME
Mortgage
551 562 573 YoY 3.43% 39.71%
554 551
QoQ 1.96%
150
141 145
132 132
Consumption Loan
YoY 13.64%
QoQ 3.45% Corporate
1,470 1,481 1,524 1,546 1,591 4.09%
Other Personal Loan
YoY 8.23%
QoQ 2.91% Loan Structure 4Q20
4Q19 1Q20 2Q20 3Q20 4Q20
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Note：The balances of loan of OBU and Overseas branch on December 31, 2020 were 25.5 15 billion and 2.6 billion, respectively.

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Loan Breakdown (NT$ Hundred Million)

oan Breakdown(NT$ Hundred Mi	oan Breakdown(NT$ Hundred Mi	oan Breakdown(NT$ Hundred Mi	oan Breakdown(NT$ Hundred Mi	oan Breakdown(NT$ Hundred Mi
705 664 654 3,877 3,746 3,964 2018 2019 2020 Non-secured Secured 14.16% 85.84% 84.94% 84.61% 15.06% 15.39%
	2018	2019	2020	YoY
Non-secured	705	664	654	-1.51%
Secured	3,877	3,746	3,964	5.82%
Secured by property	3,536	3,437	3,622	5.38%
Secured by Letter of Guarantee	164	149	166	11.41%
Others	177	160	176	10.00%
Total	4,582	4,410	4,618	4.72%

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16

LDR

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Overall LDR NTD LDR

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FCY LDR

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76.40% 76.43%
75.61% 75.53%
74.35%
75.59% 75.50%
73.59% 73.68%
72.51%
67.91%
67.03%
57.99%
56.89%
56.03%
4Q19 1Q20 2Q20 3Q20 4Q20
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S reads p

NTD Spreads Foreign Currency Spreads Overall Spreads

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2.20%
2.14%
2.12%
2.04%
1.92%
1.79%
1.78% 1.78%
1.76% 1.74%
1.69%
1.77%
1.75% 1.75% 1.60%
1.73% 1.59% 1.63% 1.64%
1.62%
1.60%
1.59% 1.58% 1.59% 1.68%
1.61% 1.62%
1.57% 1.57%
1.55% 1.54% 1.55% 1.54%
1.50%
2020/1 2020/2 2020/3 2020/4 2020/5 2020/6 2020/7 2020/8 2020/9 2020/10 2020/11 2020/12
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TCB Bank’s NIM (NT$ Hundred million)

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NIM and Interest earning assets
NIM 2019 2020
1.24%
1.19% 1.20% 1.20%
1.21%
1.18%
1.18%
1.17%
Q1 Q2 Q3 Q4
Average of Interest earning assets 2019 2020
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6,497
6,436 6,441
6,430
6,406
6,384
Q1 Q2 Q3
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6,530
6,380
Q4
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19

O eratin Ex enses to Net Income (NT$ million) p g p

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Net Income Operating Expenses

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Cost-Benefit Ratio

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56.85%
54.08% 54.07%
52.78% 51.76%
50.07%
46.86% 46.63%
2,900
2,809 2,740 2,772 2,790 2,828
2,533 2,468
1,519 1,568
1,463 1,301 1,311 1,403 1,416
1,284
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
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Asset ualit (NT$ Million) q y

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NPLs/Total Loans &NPLs
NPLs/Total Loans NPLs
-0.21%
0.45% 0.44%
0.42%
0.37% 0.37%
0.31%
0.21%
2,054
2,003
1,845
1,655 1,645
1,382
983
4Q17 2Q18 4Q18 2Q19 4Q19 2Q20 4Q20
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Asset ualit (NT$ Million) q y

Reserve/NPLs & Loan Reserve

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Reserve/NPLs Loan Reserve
+300.89%
644.76%
475.54%
403.68%
378.28%
343.87% 324.25%
317.95%
6,643
6,573
6,532
6,494
6,345 6,335
6,260
4Q17 2Q18 4Q18 2Q19 4Q19 2Q20 4Q20
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22

Fee Income Breakdown (NT$ Million)

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Fee Income
845 YoY 7.15% YoY -0.22%
816 824
QoQ -2.49%
769 79 3,152
3,145
73 92
Others
85 Others
660 YoY 8.24%
340 317
166
QoQ 16.46%
176
73 202
172
619
720
Loans Loans
YoY 17.44%
176 QoQ 21.69%
299
252
901
230 Trust
305 Trust 1,068
YoY 32.61%
212 QoQ 2.01%
Insurance
Insurance & &
315 301 Securities Securities
282 1,292
1,040
225 YoY -20.21%
199
QoQ -25.25%
4Q19 1Q20 2Q20 3Q20 4Q20 2019 2020
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Wealth Mana ement Fee Income g

(NT$ Million)

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583
549 Total
YoY 0.03% YoY -4.42%
495 509 QoQ -12.69%
2,125
158 2,031
161
Mutual Fund
146 390 YoY 40.41%
205 QoQ 29.75% 567
648 Mutual
Fund
124
301 Insurance &
Securities
315 YoY -20.21%
Insurance
282 QoQ -25.25%
1,292
225 1,040 &
199 Securities
Others
124 YoY 17.91% Others
67 73 67 79 QoQ -36.29% 266 343
4Q19 1Q20 2Q20 3Q20 4Q20 2019 2020
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Profit of Subsidiar to TCB (NT$ Million) y

Net Profit after tax	2019	2020	YoY
TCB	3,753	3,613	-3.73%
Subsidiary	567	413	-27.16%
Total	4,320	4,026	-6.81%

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Subsidiary
of TCB
13.12%
TCB
86.88%
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2019 Profit Breakdown

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Subsidiary
of TCB
10.26%
TCB
89.74%
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2020 Profit Breakdown

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25

Capital Adequacy

Consolidated

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BIS Tier I Capital Ratio Common Equity Ratio BIS
+1.75%
13.63% 13.91% 13.57% 14.15%
13.01%
12.41%
13.08%
12.48% 12.77% 12.57%
11.79%
10.99%
10.86%
10.10% 10.41% 10.28%
9.49%
8.94%
1H18 2018 1H19 2019 1H20 2020
Individual
BIS
BIS Tier I Capital Ratio Common Equity Ratio +1.85%
13.60%
12.98% 13.23% 12.94%
12.35%
11.75%
13.06%
12.37% 12.64% 12.45%
11.65%
10.82% 11.03%
10.18% 10.49% 10.34%
9.54%
8.96%
1H18 2018 1H19 2019 1H20 2020
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26

A enda g

■Financial Highlights ■Financial Review

■Financial Information ■Appendix

27

Balance Sheet (Individual)

(NT$ Million)

	2018	2019	2020	YoY
Assets：
Cash and due from banks	46,740	44,134	51,588	16.89%
Financial investment, net	163,891	173,347	195,628	12.85%
Loans, net	451,729	434,469	455,442	4.83%
A/R, net	5,028	4,064	3,546	-12.75%
LT investments, net	5,225	5,491	5,440	-0.93%
Land, premises and equipment, net	9,368	10,620	12,277	15.60%
Others	2,178	2,898	3,755	29.57%
Total assets	684,159	675,023	727,676	7.80%
Liabilities：
Deposits	589,243	584,866	638,274	9.13%
Other Liabilities	47,092	38,848	32,080	-17.42%
Total Liabilities	636,335	623,714	670,354	7.48%
Total stockholders’ equity	47,824	51,309	57,322	11.72%
Total liabilities and stockholders’ equity	684,159	675,023	727,676	7.80%

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28

P&L (Individual)

(NT$ Million)

	2018	2019	2020	YoY
Net interest income	7,991	7,902	7,848	-0.68%
Net fee income	1,793	1,926	2,117	9.92%
Others	891	1,283	764	-40.45%
Total Operating Income	10,675	11,111	10,729	-3.44%
Operating expenses	(5,626)	(5,567)	(5,698)	2.35%
Pre-provision Profit	5,049	5,544	5,031	-9.25%
Credit Loss Provisions, net	(411)	(477)	(366)	-23.27%
Profit Before Income Tax	4,638	5,067	4,665	-7.93%
Tax Fee	(630)	(747)	(639)	-14.46%
Net Profit After Income Tax	4,008	4,320	4,026	-6.81%
Other Profits	34	153	448	192.81%
Current period other comprehensive income	4,042	4,473	4,474	0.02%

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29

Balance Sheet (Consolidated)

(NT$ Million)

	2018	2019	2020	YoY
Assets：
Cash and due from banks	47,644	45,237	52,081	15.13%
Financial investment, net	165,027	174,356	197,275	13.14%
Loans, net	452,595	435,398	456,541	4.86%
A/R, net	12,781	12,820	13,484	5.18%
LT investments, net	153	157	163	3.82%
Land, premises and equipment, net	9,447	10,684	12,333	15.43%
Others	3,185	4,037	4,893	21.20%
Total assets	690,832	682,689	736,770	7.92%
Liabilities：
Deposits	587,968	583,322	636,589	9.13%
Other Liabilities	55,040	48,058	42,859	-10.82%
Total Liabilities	643,008	631,380	679,448	7.61%
Total stockholders’ equity	47,824	51,309	57,322	11.72%
Total liabilities and stockholders’ equity	690,832	682,689	736,770	7.92%

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30

P&L (Consolidated)

(NT$ Million)

	2018	2019	2020	YoY
Net interest income	8,434	8,351	8,279	-0.86%
Net fee income	2,846	2,913	2,906	-0.24%
Others	409	831	459	-44.77%
Total Operating Income	11,689	12,095	11,644	-3.73%
Operating expenses	(6,457)	(6,273)	(6,366)	1.48%
Pre-provision Profit	5,232	5,822	5,278	-9.34%
Credit Loss Provisions, net	(472)	(615)	(519)	-15.61%
Profit Before Income Tax	4,760	5,207	4,759	-8.60%
Tax Fee	(752)	(887)	(733)	-17.36%
Net Profit After Income Tax	4,008	4,320	4,026	-6.81%
Other Profits	34	153	448	192.81%
Current period other comprehensive income	4,042	4,473	4,474	0.02%

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31

A enda g

■Financial Highlights

■Financial Review

■Financial Information

■Appendix

32

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Recognitions
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Awarded the “Golden Security Award” for member institutes with excellent performance by Joint Credit Information Center for 6 consecutive years.

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Awarded the “Outstanding Bank Award” for the Phase III Program to Incentivize Lending by Domestic Banks to Enterprises in Target Countries of the New Southbound Policy by the Financial Supervisory Commission. Awarded the “Outstanding Potential Award” and “Outstanding Sustainable Management 2018 年上半年營運亮點 Award” by Excellent Bank.

Awarded the “Best Customer Recommendations” and “Best Charity Promotion” awarded by the Wealth Magazine on the Wealth Management Awards.

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Awarded the “Bronze” in “Corporate Sustainability Report” in the TCSA held by Taiwan Institute for Sustainable Energy.

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Awarded the “Gold & Long-term Partner” in Sponsorship in the Sports Activist Awards held by the Ministry of Education.

2

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Annual Strategy
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2021
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Implement a financial supervision system with enhanced corporate governance. Refine organizational resilience to achieve sustainable development goals. Strengthen risk management efficiency to maintain sound asset quality. Focus on customer experience to create better banking experiences. 2018 年上半年營運亮點 Stabilize the growth of the core business and create multiple sources of income. Build in and up profound competitive advantages foreign exchange gradually expand overseas markets.

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Refine financial planning services and develop full functions of trust services.

2

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Thanks for your listening!