UBOT — Interim / Quarterly Report 2021

Nov 11, 2021

Union Bank of Taiwan Financial Results of 3Q21

November 12[th] , 2021

1

DISCLAIMER

• This presentation is provided by Union Bank of Taiwan (”UBOT”).The information contained within is not audited or reviewed by any accountant or any independent third party. Users should read this material in conjunction with all other public financial and operational information filed to the competent authorities by UBOT. While we endeavor to provide accurate, complete and consistent information herein, UBOT 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 and other factors that could cause uncertainties, risks, assumptions

• 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. UBOT and its affiliates no representatives,

• 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.

Financial Highlights of 3Q21

 Steady growth of business

• Net income for the month ended September 30, 2021, was 3,568 million, compare with 2,474 million in 3Q20, increased 44.22% YoY,

Operating revenue was 12,306 million, compare with 10,572 million in 3Q20 , increased 16.40% YoY.  EPS was 0.94 in 3Q21, compare with 0.64 in 3Q20 , increased 46.88% YoY.

• Net interest income was increased 14.15% YoY.

• Net fee income was increased 2.03% YoY.

• Total deposits (avg. balance) was increased 11.75% YoY .

• Total loans (avg. balance) was increased 9.41% YoY.

• Credit card operating income was increased 16.60% YoY. Value of acquiring was increased 23.18% YoY. Card account credit balance 14.84% YoY.

 Capital is adequate and robust

• CAR was 15.69%, Tier 1 ratio was 13.86%, and CET1 ratio was 10.78% as of September 30, 2021.

 Good asset quality and overdue loan coverage

• NPL was 703 million, NPL ratio was 0.15%, and NPL coverage ratio was 761.32% as of September 30, 2021.

• 3Q21 are un-audited numbers

• CAR, Tier 1 ratio and CET1 ratio of 3Q21 are un-audited, standalone numbers

Revenue and profit- Consolidated

			NT$ mn, %
Items	3Q21*	3Q20	Diff. %*
Net interest income	6,447	5,648	+14.15%
Net fee income	2,159	2,116	+2.03%
Net other income	3,700	2,808	+31.77%
Operatingrevenue	12,306	10,572	+16.40%
Pre-Tax Income	4,079	2,823	+44.50%
Net Income	3,568	2,474	+44.22%
EPS(in NT$dollar)	0.94	0.64	+46.88%

 3Q21 are un-audited numbers

Net Revenue Breakdown- Consolidated

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NT$ mn NT$ mn, %
12,306 12,732 13,866 14,430 12,306
12,000
10,572
28.33% 27.50% 30.07%
33.69%
9,000
19.03% 19.55% 17.54%
19.59%
6,000
3,000 52.64% 46.72% 52.95% 52.39%
0
3Q20 3Q21 2018 2019 2020 3Q21
NII% Fee Income% Other Income%
Operating Revenue
 3Q21 are un-audited numbers
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Financial Performance- Consolidated

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NT$ mn
Operating Revenue
14,430
13,866
12,732
12,306
2018 2019 2020 3Q21
NT$ dollar
Net Income NT$ mn EPS
3,568
3,371 3,442 1.00
2,955
0.96
0.94
0.93
2018 2019 2020 3Q21 2018 2019 2020 3Q21
 3Q21 are un-audited numbers
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Operating revenue analysis- Alone

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NT$ mn,%
41.13%
35.22%
Consumer 22.24% 20.66% 21.92%
14.85% 15.62%
Corporate Busibess Business 13.45%
7.03% 7.88%
14.85% 35.22%
Corporate Consumer Trust & Ｗealth Investment Others
Business Business Mgmt.
3Q21 3Q20
Others
20.66%
3Q21 3Q20
Items Diff.Amt
revenues revenues
Trust & Ｗ ealth Mgmt. Corporate Business 1,572 1,381 191
7.03%
Investment Consumer Business 3,727 3,637 90
22.24% Trust & Wealth
744 697 47
Mgmt.
Investment 2,354 1,189 1,165
 3Q21 are un-audited numbers Others 2,186 1,938 248
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Business Performance

NT$ mn, %

Items	2021.9.30	**2020.9.30 **	201 9.63	Diff.Amt	欄 1	Diff. %
Total deposits (avg. bal.)	649,658	581,352		68,306		11.75%
Demand deposits	301,509	249,011		52,498		21.08%
Time deposits	262,963	251,035		11,928		4.75%
Foreign exchange deposits	85,186	81,306		3,880		4.77%
Total Loans (avg. bal.)	456,531	417,277		39,254		9.41%
Corporate loans	183,022	179,091		3,931		2.19%
Consumer loans	273,509	238,186		35,323		14.83%
Indirect Finance (end bal.)	26,416	23,153		3,263		14.09%

 Preliminary figures of Sep. 2021

Deposits analysis

Total deposits（avg. bal.） TWD$649.7 billion

YoY Comparison

NT$ bn

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Foreign exchange
deposits, 13.11%
301.5
263.0
251.0
Time deposits, 249.0
40.48% Demand deposits,
46.41%
85.2 81.3
Demand deposits Time deposits Foreign exchange
deposits
9M21 9M20
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 Preliminary figures of Sep. 2021

Deposits balance steady growth

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Demand Deposits
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Time Deposits YOY
YOY
NT$ mn +18.53% +2.45%
313,233
284,694 [306,037 323,905 337,461 ] 305,737 [307,766 307,581 ]
219,547 [237,291 246,764 ] 300,180
295,425
292,443
Dec. Sep. Dec. Sep. Dec. Jun. Sep.
2018 2019 2019 2020 2020 2021 2021 Dec. 2018Sep. 2019Dec. 2019Sep. 2020Dec. 2020Jun. 2021Sep. 2021
YOY Date
End of End of End of End of End of End of End of
Total Deposits +10.21%
2018 Sep. 219 2019 Sep. 2020 2020 Jun. 2021 Sep. 2021
Items
519,727 [532,716 539,207 590,431 ][613,803 ][631,486 650,694 ] Demand
219,547 237,291 246,764 284,694 306,037 323,905 337,461
deposits
Time
300,180 295,425 292,443 305,737 307,766 307,581 313,233
deposits
Total
519,727 532,716 539,207 590,431 613,803 631,486 650,694
deposits
Dec. Sep. Dec. Sep. Dec. Jun. Sep. Portion of
2018 2019 2019 2020 2020 2021 2021 demand 42% 45% 46% 48% 50% 51% 52%
deposits
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 Preliminary figures of Sep. 2021

Loans analysis

Total Loans

TWD$447.8 billion

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Government,
Large Corporate,
5.6%
1.2%
SME,
21.6%
Individual,
71.6%
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 Preliminary figures of Sep. 2021

YoY Comparison

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NT$ bn
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320.6
285.1
96.8
81.0
39.4
25.2
5.2 3.9
Government Large SME Individual
Corporate
9M21 9M20
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Loans balance steady growth

Corporate Loans

Consumer Loans

NT$ mn

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154,711 [157,889 ]
128,311 [134,599 ] [139,420 ] [142,733 ]
119,073
2018 9M19 2019 9M20 2020 6M21 9M21
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267,403 [274,762 ]
239,643 [249,749 ]
210,727 [219,456 ]
194,336
2018 9M19 2019 9M20 2020 6M21 9M21
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• Government Loans is excluded from Corporate Loans.

• Preliminary figures of Sep. 2021

Business Performance

Cards, NT$ Mn,%

Items	Jan. to Sep. 2021	Jan. to Sep. 2020	Diff. Amt	Diff. %
Valid cards in 6 months	1,289,698	1,315,903	(26,205)	(1.99%)
Cards outstanding	2,207,397	2,231,943	(24,546)	(1.10%)
Operating income	2,732	2,343	389	16.60%
Value of transactions	73,704	71,302	2,402	3.37%
Value of acquiring	60,511	49,125	11,386	23.18%
Accounts Receivable	17,333	16,355	978	5.98%
Card account credit balance	8,522	7,421	1,101	14.84%
Revolving banlance	5,228	5,662	(434)	(7.67%)
NPL over 90 days	23.850	29.056	(5.206)	(17.92%)
NPL Ratio over 90 days	0.14%	0.18%	(0.04%)	(22.22%)

 Preliminary figures of Sep. 2021

Credit Card Business Breakdown

Active Cards

Cards Consumption

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Active Cards Thousand Card,% Cards Consumption NT$ mn
4.10% 1,316 1,323 1,323 1,350 3.40% 99,456 48,661 120,000
4.05% 1,290 1,300 3.20% 90,312 [92,555 71,786 ] 100,000
1,267 3.27% 74,176.00
4.00% 1,175 4.05% 80,000
4.01% 1,250 3.00% 3.10%
3.95% 3.97% 3.97% 3.99% 3.91% 3.20% 3.22% 60,000
1,200 2.80%
3.90% 2.85% 3.36% 40,000
3.85% 1,150 2.60% 20,000
3.80% 1,100 2.40% -
2018 2019 9M20 2020 6M21 9M21 2018 2019 9M20 2020 6M21 9M21
Active Cards Market Share-8M21 Cards Consumption Market Share-8M21
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Per Card Spending (Monthly) NT$ dollar

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6,500
6,406 6,390
6,400
6,265
6,300
6,200 6,128
6,088
6,061
6,100
6,000
5,900
5,800
2018 2019 9M20 2020 6M21 9M21
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Gross Income

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NT$ mn
4,000
3,166
2,914
2,732
3,000 2,527
2,343
1,811
2,000
1,000
-
2018 2019 9M20 2020 6M21 9M21
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 9M21 is self-settled, and the other proportion refers to the disclosure of important credit card information of the Banking Bureau

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NIM and Spread- Alone

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1.40% 1.38% 1.47%
1.41%
2.12% 2.15%
1.98%
1.88%
1.26%
1.24%
1.21% 1.21%
0.77%
0.72%
0.58%
0.41%
2018 2019 2020 3Q21 2018 2019 2020 3Q21
NIM
Overall Lending Rate Overall Deposit Rate Interest Spread
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 3Q21 are un-audited numbers

Assets Quality

NPL

NPL Ratio

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NT$ mn,%
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0.15% 0.15%
0.14% 0.14% 0.14%
700
703 0.12%
600 649
606
583
500 573
400
401
300
200
100
0
2018 2019 3Q20 2020 2Q21 3Q21 2018 2019 3Q20 2020 2Q21 3Q21
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 3Q21 are un-audited numbers

Assets Quality (Conti.)

NT$ mn, % NT$ mn, %

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6,000 1200.00%
5,351
5,500
959.79%
5,000 4,778 1000.00%
4,299
4,500
3,853 749.68% 761.32%
4,000 788.94% 800.00%
3,500
623.24% 680.68%
3,000 600.00%
651.78%
2,500
575.44%
2,000 400.00%
1,500
1,000 200.00%
500
0 0.00%
2018 2019 2020 3Q21
Allowance for bad debts. NPL Coverage Ratio Avg. NPL Coverage Ratio in TW Banks
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 Avg. NPL Coverage Ratio in TW Banks of 3Q21 was from FSC Statistic of August 2021.

Capital Adequacy

NT$ thousand

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2018 2019 2020 6M21 9M21
Risk Weighted Assets 343,502,955 376,603,339 411,994,724 401,791,662 408,035,132
Common share 33,172,535 37,440,298 40,774,470 43,105,240 43,974,396
Other tier 1 capital 11,720,972 11,559,375 12,096,138 12,622,012 12,572,514
Tier 2 capital 4,310,985 6,347,470 8,100,742 8,006,806 7,467,348
Regulatory capital 49,204,492 55,347,143 60,971,350 63,734,058 64,014,258
Risk Weighted Assets
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 Preliminary figures of Sep. 2021

 BIS of Union Bank standalone.

Capital Adequacy Ratio

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15.86% 15.69%
14.70% 14.80%
14.32%
1.99% 1.83%
1.25% 1.69% 1.97%
3.14% 3.08%
3.41% 3.07% 2.93%
10.73% 10.78%
9.66% 9.94% 9.90%
2018 2019 2020 6M21 9M21
CET1 Ratio Other Tier 1 Ratio Tier 2 Ratio
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• Preliminary figures of Sep. 2021

 BIS of Union Bank standalone.