UBOT — Interim / Quarterly Report 2021

Aug 4, 2021

Union Bank of Taiwan Financial Results of 1H21

August 5[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 1H21

 Steady growth of business

• Net income for the month ended June 30, 2021, was 2,307 million, increased 67.05% YoY, Operating revenue was 8,084 million, increased 19.23% YoY.

• EPS was 0.75 in 1H21, compare with 0.29 in 1H20 , increased 158.62% YoY.

• Net interest income was increased 14.47% YoY.

• Net fee income was increased 4.95% YoY.

• Total deposits (avg. balance) was increased 12.16% YoY .

• Total loans (avg. balance) was increased 13.09% YoY.

• Valid cards in 6 months was increased 1.22% YoY, Operating income was increased 16.91% YoY.

 Capital is adequate and robust

• CAR was 15.86%, Tier 1 ratio was 13.86%, and CET1 ratio was 10.72% as of June 30, 2021.

 Good asset quality and overdue loan coverage

• NPL was 649 million, NPL ratio was 0.14%, and NPL coverage ratio was 788.95% as of June 30, 2021.

• 2Q21 are un-audited numbers

• CAR, Tier 1 ratio and CET1 ratio of 2Q21 are un-audited, standalone numbers

Revenue and profit- Consolidated

			NT$ mn, %
Items	2Q21*	2Q20	Diff. %*
Net interest income	4,273	3,733	+14.47%
Net fee income	1,443	1,375	+4.95%
Net other income	2,368	1,672	+41.63%
Operatingrevenue	8,084	6,780	+19.23%
Pre-Tax Income	2,620	1,586	+65.20%
Net Income	2,307	1,381	+67.05%
EPS(in NT$dollar)	0.75	0.29	+158.62%

 2Q21 are un-audited numbers

Net Revenue Breakdown- Consolidated

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NT$ mn NT$ mn, %
12,732 13,866 14,430 8,084
9,000
8,084
28.33% 27.50% 29.29%
33.69%
6,740
6,000 19.03% 19.55% 17.85%
19.59%
3,000
52.64% 52.95% 52.86%
46.72%
0
2Q20 2Q21 2018 2019 2020 2Q21
NII% Fee Income% Other Income%
Operating Revenue
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 2Q21 are un-audited numbers

Financial Performance- Consolidated

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NT$ mn
Operating Revenue
14,430
13,866
12,732
8,084
2018 2019 2020 2Q21
NT$ dollar
Net Income NT$ mn EPS
3,371 3,442
2,955 1.00 0.93 0.96
2,307 0.75
2018 2019 2020 2Q21 2018 2019 2020 2Q21
 2Q21 are un-audited numbers
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Operating revenue analysis- Alone

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NT$ mn,% 42.85%
36.27%
30.13%
24.64%
Consumer 21.97%
16.89%
Corporate Busibess Business 14.96%
14.96% 36.27% 2.32% 2.16% 7.81%
Others
Corporate Consumer Trust & Ｗealth Investment Others
2.16%
Business Business Mgmt.
2Q21 2Q20
Investment
2Q21 2Q20
Items Diff.Amt
21.97% revenues revenues
Corporate Business 1,037 952 85
Trust & Ｗ ealth Mgmt. Consumer Business 2,515 2,414 101
24.64%
Trust & Wealth
1,708 1,698 10
Mgmt.
Investment 1,523 131 1,392
 2Q21 are un-audited numbers Others 150 440 (290)
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Business Performance

NT$ mn, %

Items	2021.6.30	**2020.6.30 **	201 9.63	Diff.Amt	欄 1	Diff. %
Total deposits (avg. bal.)	629,341	561,124		68,217		12.16%
Demand deposits	288,554	238,204		50,350		21.14%
Time deposits	257,467	245,978		11,489		4.67%
Foreign exchange deposits	83,320	76,942		6,378		8.29%
Total Loans (avg. bal.)	451,776	399,479		52,297		13.09%
Corporate loans	186,335	168,041		18,294		10.89%
Consumer loans	265,441	231,438		34,003		14.69%
Indirect Finance (end bal.)	24,400	24,862		(462)		(1.86%)

 Preliminary figures of Jun. 2021

Deposits analysis

Total deposits（avg. bal.） TWD$ 629.4 billion

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Foreign exchange
deposits, 13.24%
Time deposits,
40.91%
Demand deposits,
45.85%
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YoY Comparison

NT$ bn

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288.6
257.5
246.0
238.2
83.3 76.9
Demand deposits Time deposits Foreign exchange
deposits
6M21 6M20
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 Preliminary figures of Jun. 2021

Deposits balance steady growth

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Demand Deposits
YOY
NT$ mn +21.78%
306,037 [323,905 ]
219,547 [228,031 246,764 265,967 ]
Dec. 2018 Jun. 2019 Dec. 2019 Jun. 2020 Dec. 2020 Jun. 2021
Total Deposits YOY
+11.79%
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519,727 517,555 [539,207 ] [564,906 ] [613,803 ] [631,486 ]
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Dec. 2018 Jun. 2019 Dec. 2019 Jun. 2020 Dec. 2020 Jun. 2021

 Preliminary figures of Jun. 2021

	Time Deposits YOY+ 2.89% 300,180 289,524 292,443 298,939 307,766 307,581 Dec. 2018 Jun. 2019 Dec. 2019 Jun. 2020 Dec. 2020 Jun. 2021
Date Items End of 2018 End of Jun. 219 End of 2019 End of Jun. 2020 End of 2020 End of Jun. 2021
Demand deposits 219,547 228,031 246,764 265,967 306,037 323,905 Time deposits 300,180 289,524 292,443 298,939 307,766 307,581 Total deposits 519,727 517,555 539,207 564,906 613,803 631,486 Portion of demand deposits 42% 44% 46% 47% 50% 51%

Loans analysis

Total Loans

TWD$ 440.1 billion

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Government,
Large Corporate,
6.3%
0.9%
SME,
21.5%
Individual,
71.3%
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 Preliminary figures of Jun. 2021

YoY Comparison

NT$ bn

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313.8
278.1
94.4
75.7
27.9 29.9
4.0 7.8
Government Large SME Individual
Corporate
6M21 6M20
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Loans balance steady growth

Corporate Loans

Consumer Loans

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NT$ mn
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154,711
119,073 [127,156 134,599 137,930 142,733 ]
2018 6M19 2019 6M20 2020 6M21
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267,403
249,749
194,336 [205,208 219,456 232,120 ]
2018 6M19 2019 6M20 2020 6M21
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• Government Loans is excluded from Corporate Loans.

• Preliminary figures of Jun. 2021

Business Performance

Cards, NT$ Mn,%

Items	Jan. to Jun. 2021	Jan. to Jun. 2020	Diff. Amt	Diff. %
Valid cards in 6 months	1,323,492	1,307,595	15,897	1.22%
Cards outstanding	2,192,196	2,192,562	(366)	(0.02%)
Operating income	1,811	1,549	262	16.91%
Value of transactions	48,342	44,985	3,357	7.46%
Value of acquiring	40,257	31,332	8,925	28.49%
Accounts Receivable	15,429	15,030	399	2.65%
Card account credit balance	8,232	7,279	953	13.09%
Revolving banlance	5,326	5,494	(168)	(3.06%)
NPL over 90 days	26.744	30.076	(3.332)	(11.08%)
NPL Ratio over 90 days	0.17%	0.20%	(0.03%)	(15.00%)

 Preliminary figures of Jun. 2021

Credit Card Business Breakdown

Active Cards

Cards Consumption

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Active Cards Thousand Card,% Cards Consumption NT$ mn
4.07%
4.10% 1,323 1,323 1,350 3.60% 3.27% 3.39% 120,000
1,308 3.26%
3.40% 90,312 92,555 99,456 100,000
1,300
4.05% 1,267
4.01% 3.20% 80,000
1,250
3.98%
4.00% 3.00% 48,661 60,000
45,289
1,175 1,200 3.10%
3.97% 2.80% 2.85% 40,000
3.95%
3.97% 1,150 2.60% 20,000
3.90% 1,100 2.40% -
2018 2019 6M20 2020 6M21 2018 2019 6M20 2020 6M21
Active Cards Market Share-5M21 Cards Consumption Market Share-5M21
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Per Card Spending (Monthly) NT$ dollar Gross Fee Income
NT$ mn
6,600 4,000
6,406
3,166
6,400 6,265 2,914
6,128 3,000 2,527
6,200 6,088
1,811
6,000 2,000 1,549
5,773
5,800
1,000
5,600
5,400 -
2018 2019 6M20 2020 6M21 2018 2019 6M20 2020 6M21
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 6M21 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%
1.22%
1.21%
0.77%
0.72%
0.58%
0.41%
2018 2019 2020 2Q21 2018 2019 2020 2Q21
NIM
Overall Lending Rate Overall Deposit Rate Interest Spread
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 2Q21 are un-audited numbers

Assets Quality

NPL

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

Assets Quality (Conti.)

NT$ mn, % NT$ mn, %

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5,500 5,120 1200.00%
5,000 4,778
959.79%
4,299 1000.00%
4,500
3,853
4,000
749.68%
788.94% 788.95% 800.00%
3,500
3,000
623.24% 629.28%
600.00%
2,500 651.78%
575.44%
2,000
400.00%
1,500
1,000 200.00%
500
0 0.00%
2018 2019 2020 2Q21
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 2Q21 was from FSC Statistic of May 2021.

Capital Adequacy

NT$ thousand

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2018 2019 6M20 2020 6M21
Risk Weighted Assets 343,502,955 376,603,339 403,524,459 411,994,724 401,729,409
Common share 33,172,535 37,440,298 38,490,875 40,774,470 43,083,253
Other tier 1 capital 11,720,972 11,559,375 12,099,090 12,096,138 12,614,848
Tier 2 capital 4,310,985 6,347,470 7,337,300 8,100,742 8,036,254
Regulatory capital 49,204,492 55,347,143 57,927,265 60,971,350 63,734,355
Risk Weighted Assets
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 Preliminary figures of Jun. 2021

 BIS of Union Bank standalone.

Capital Adequacy Ratio

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15.86%
14.70% 14.80%
14.32% 14.36%
2.00%
1.25% 1.69% 1.82% 1.97%
3.14%
3.41% 3.07% 2.93%
3.00%
10.72%
9.66% 9.94% 9.54% 9.90%
2018 2019 6M20 2020 6M21
CET1 Ratio Other Tier 1 Ratio Tier 2 Ratio
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• Preliminary figures of Jun. 2021

 BIS of Union Bank standalone.