CTBC Holding

CTBC HoldingAnalyst Meeting

Financial Review of 2Q21

August 23rd, 2021

Investor Relations

2

DISCLAIMER

THE FINANCIAL INFORMATION IN THESE MATERIALS AS OF AND FOR THE SIX

MONTHS ENDED JUNE 30th, 2021 ARE PRELIMINARY. CTBC HOLDING EXPECTS

TO FILE ITS UNAUDITED FINANCIAL STATEMENTS, WHICH ARE SUBJECT TO

REVIEW BY ITS AUDITORS, WITH THE ROC SECURITIES AND FUTURES BUREAU

ON OR ABOUT AUGUST 31st, 2021.

These materials are not an offer for sale of securities in the United States.

Securities may not be sold in the United States absent registration or an

exemption from registration under the U.S. Securities Act of 1933, as

amended.

3

CTBC Holding’s performance highlights in 2Q21

• CTBC Holding continued to deliver a resilient operating performance with after-tax

profit increasing 74% YoY in 1H21, despite the level 3 Covid-19 measures in place during mid-May-July

• Strong ROE at 17.28%, ROA at 1.0%, and EPS of NT$1.72 in 1H21

• Well capitalized, with CAR at 137.0% and DLR at 110.5%

• Solid loan growth led by strong domestic corporate loans, mortgages, and consumer loans; total lending (incl. credit card revolving) excluding forex impact grew 8.4% YoY

• Sustained business momentum in WM, retail, and lottery fees underpinned fee growthof 11% YoY

• Benign asset quality with NPL ratio of 0.40%; credit costs remained low at 18bps in 1H21

• Sound capitalization, with CAR at 14.51% and CET1 ratio at 11.86%

• Taiwan Life continued to report robust after-tax profit growth of 104% YoY in 1H21

• Investment income remained decent and cost of liability continued to decline

• Capitalization was superior, with RBC ratio at 367.0% as of June 30, 2021

CTBC

Holding

CTBC

Bank

Taiwan

Life

4

CTBC’s ESG commitment highlights

Environmental Social Governance

• Over NT$710 million in social

investment

• Over NT$163 million under

the CTBC Poverty Alleviation

Program

• Partner with global

microfinance institutions to

provide microloans abroad,

with US$98 million dispersed

in 2020

• In the top 20% of performers

in the FSC’s evaluation of the

implementation of the

Treating Customers Fairly

Principles by financial service

industries

• Named the Best Employer in

Taiwan’s financial industry in

2020 by Universum

• MSCI Taiwan ESG Leaders

Index constituent stock with an

ESG rating of “AA” and named a

constituent stock of DJSI World

& Emerging Markets Index and

FTSE4Good Index Series

• Ranked the Top 5% of

performers in the Taiwan Stock

Exchange’s 7th Corporate

Governance Evaluation

• Only listed FI in Taiwan with

independent directors filling

majority of board seats, and

planning to nominate female

director in next board election

to pursue gender diversity

• Established a Sustainability

Committee comprised of

independent directors

• First FI in Taiwan to join the

PCAF and GIIN, and serving as

PCAF’s Asia-Pacific region

chair in 2021

• First FI in the world and first

Taiwan enterprise to receive

the U.N. Clean Energy

Ministerial Award of

Excellence in Energy Mgmt.

• Green financing loans for

green energy technologies,

circular economy, and green

buildings reached NT$141

billion

• Signed on to TCFD and have

integrated climate change

risks into our overall risk

management framework and

identified climate-related risks

and opportunities

© CTBC Financial Holding

1.43

1.91 1.85

2.16 2.15

0.93

1.72

2016 2017 2018 2019 2020 6M20 6M21

7,017

16,949

6,727

19,709

13,741

19,177

33,449

2Q20 3Q20 4Q20 1Q21 2Q21 6M20 6M21

CTBC Holding’s profitability

5

CTBC Holding’s numbers are presented on a consolidate basis.

1. 2Q21/6M21 number is preliminary.

Consolidated net profit

NT$ mnEPS

NT$

1 1

YoY +74.4%QoQ -30.3%

1


0.59%

0.73%0.65%

0.72%0.67%

0.61%

1.00%

2016 2017 2018 2019 2020 欄1 6M20 6M21

CTBC Holding TW FHCs avg.

9.98%

12.77%

12.09%

13.04%

11.53% 10.95%

17.28%

2016 2017 2018 2019 2020 欄1 6M20 6M21

CTBC Holding TW FHCs avg.

CTBC Holding’s ROE & ROA

6

CTBC Holding’s numbers are presented on a consolidate basis.

1. 6M21 number is preliminary.

ROE

%

ROA

%

1 1


CTBC Holding’s strong capitalization

7

CFHC’s numbers are presented on a consolidated basis.

1. 2011 numbers are preliminary.

2. 2011 industry BIS ratio is as of Sep. 11

CTBC Bank’s CAR ratio2

%

CTBC Holding’s numbers are presented on a consolidated basis.

1. Jun 21 number is preliminary.

2. CTBC Bank adopted Basel III since 2013.

139.1%

117.9% 115.7%125.0%

137.0%

2017 2018 2019 2020 Jun 21

14.5% 14.1% 13.8% 14.6% 14.5%

2017 2018 2019 2020 Jun 21

13.1% 12.8%12.4% 13.1% 13.0%

2017 2018 2019 2020 Jun 21

CTBC Bank’s Tier I ratio2

%

340%

268%298% 309%

367%

2017 2018 2019 2020 Jun 21

Taiwan Life RBC

%

CTBC Holding’s CAR

%

1 1

11


14,883

16,574 687 2,202 33,449

-897

Bank6M21

Life Securities OtherSubsidiaries

Holding CTBCHolding6M21

YoY +243.6%

6,846

6,278 337 666 13,741

-387

Bank2Q21

Life Securities OtherSubsidiaries

Holding CTBCHolding 2Q21

QoQ -3.6% QoQ -56.6%

CTBC Holding’s net profit breakdown by entity

CTBC Holding’s net profit breakdown

NT$ mm


1.2Q21/6M21 numbers are preliminary

2.Other subsidiaries include CTBC Venture Capital, Asset Management, Taiwan Lottery, and Investments

3.Holding (on a non-consolidated basis) is an adjustment item for compiling consolidated statement.

YoY +10.5%

QoQ -14.8% QoQ -39.0% QoQ -30.3%

YoY +103.5% YoY +74.4%

31 1

2Q211

Breakdown%

Bank 50%

Life 46%

Others 4%131

8

2

2

6M211

Breakdown%

Bank 44%

Life 50%

Others 6%

YoY +218.3%


22,554 + 1,189

14,915 13,741 -2,911 -492

-5,620 -1,174

1Q21 Profitbefore tax

OperatingRevenue

Provision Expense Insurance netprofit before tax

2Q21 Profitbefore tax

Tax 2Q21 Net Profitafter tax

QoQ -10.2%

CTBC Holding excl. Insurance Insurance

CTBC Holding’s net profit movements



CTBC Holding’s net profit movements

NT$ mn , %

YoY +6.0% YoY -57.8% YoY +9.9% YoY +94.4% YoY +47.6%

QoQ +53.8% QoQ -7.1% QoQ -48.0%

YoY +74.4%

1

QoQ -33.9% QoQ -30.3%

1

11

9

25,393 + 3,040 + 3,180

+ 8,650 37,469 33,449

- 2,894 - 4,020

6M20 Profitbefore tax

OperatingRevenue

Provision Expense Insurance netprofit before tax

6M21 Profitbefore tax

Tax 6M21 Net Profitafter tax


CTBC Holding’s revenue breakdown (excl. Life)

10

CTBC Holding’s revenue breakdown

NT$ mn, %

14,100

7,559

3,356

633

14,044

9,502

2,406

825

14,222

9,067

1,610

(61)

14,234

11,337

3,649

(732)

14,520

8,798

2,093

166

Net Interest Income Fee Income Trading, Derivatives & FX LT investment & Others

2Q20

3Q20

4Q20

1Q21

2Q21



-1% -1%11% 11%

35% 37%

56% 53%

6M20 6M21

NII

Fee

Trading,Derivatives &FX

LT investment& Others

QoQ +2.0%

YoY +0.6%

QoQ -22.4%

YoY +14.3%

1

1

1,2Total Revenue

(NT$ mn)%

1Q21: 28,488 2Q21: 25,578 -10.2%

6M20: 51,026 6M21: 54,066 +6.0%

QoQ +122.7%

YoY +14.4%QoQ -42.7%

YoY +4.7%

1


569

1022

718

163

30

554

997

740

170

32

584

969

765

175

32

651

955

780

177

32

692

930

798

193

33

Corporate NTD Loan FCY Loan Mortgages Unsecured Consumer Credit CardRevolving & Others

2Q20

3Q20

4Q20

1Q21

2Q21

1% 1%

7% 7%

29%30%

23%

26%

41%

35%

Jun 20 Jun 21

FCY Loan

Corporate NTDLoan

Mortgages

Unsecuredloans

Credit cardrevolving &Others

Excl. FX

QoQ +2.7%

YoY +8.4%

2,503 Total lending

QoQ +1.9%

YoY +5.7%

CTBC Bank’s lending portfolio breakdown

11

QoQ +6.3%

YoY +21.7%

QoQ -2.6%

YoY -9.0%

QoQ +8.9%

YoY +18.4%

QoQ +1.2%

YoY +7.9%

Lending breakdown (incl. credit card revolving balance)

NT$ bn, %

These numbers are presented on CTBC Bank consolidated basis.

1. FC Loan includes non-accrual loans.

2. Other loans include car loans under repurchase agreement, car loans, and small business loans

3. 2Q21/Jun 21 numbers are preliminary.

4. Total lending portfolio includes performing loans, non-accrual loans and credit card revolving balance.

QoQ +2.4%

YoY +11.2%

3

3

1

1

Excl. FX

QoQ -0.5%

YoY -2.5%

2

2,6474


589

327

109

518

298

115

OverseasSubsidiaries

Overseas Branches OBU+DBU

Jun 20 Jun 21

FCY loan growth

NT$ bn, %

CTBC Bank’s FCY loan breakdown

FCY loan breakdown

%

1

1

These numbers are presented on CTBC Bank’s consolidated basis.

1. FC Loan breakdown includes non-accrual loans and excludes an elimination item.

2. Jun 21 number is preliminary. 12

YoY

-8.9%

YoY

+5.5%

YoY

-12.0%

DBU2.0%

OBU10.4%

Overseas Branches

32.0%

Overseas

Subsidiaries

55.7%

Tokyo Star

Bank

41.0%

1

2

YoY

-4.1%

YoY

+12.3%

YoY

-4.7%

Excl. FX


FCY deposit

NT$ bn, %

CTBC Bank’s deposit mix

NTD deposit

NT$ bn, %

These numbers are presented on CTBC Bank’s consolidated basis.


13

2,0611,976

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

Jun 20 Sep 20 Dec 20 Mar 21 Jun 21

Time Savings

2,0962,186

2,258

62.7%

37.3%

QoQ +3.3%

YoY +14.3%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000


Time Savings

1,577

57.0%

43.0%

1 1

QoQ -1.5%

YoY +4.3%

1,5121,564

1,6531,601


74.07%72.77%

70.43%69.70%

70.65%

Overall LDR

78.67%77.64%

76.47% 75.87%77.35%

68.36%66.57%

62.69%61.47% 61.23%


NTD LDR FCY LDR

CTBC Bank’s LDR

Overall LDR1

%


1. Use average balance to calculate LDR; credit card account receivables are included in the calculation of CTBC Bank’s LDR.

2. Loans include both performing and non-accrual loans; deposits are adjusted to exclude structured deposits and remittances.


3

14

2

22


1.44%

1.40% 1.40% 1.39% 1.39%

2Q20 3Q20 4Q20 1Q21 2Q21

2.12% 2.08%2.13% 2.15% 2.16%

1.75% 1.74%1.77% 1.78% 1.75%

1.51% 1.51% 1.54% 1.55%1.51%

1.22%1.19% 1.22% 1.23%

2Q20 3Q20 4Q20 1Q21 2Q21

FCY spread Overall spread

NTD spread Industry average

Overall, NTD & FX spread vs. industry

%

CTBC Bank’s NIM and spreads

Quarterly NIM

%


1. 2Q21 number is preliminary.

1

15

11


3427

1117

698 769

303

870

4574

1157

784 932

406

1189

4464

1321

768671

402

864

5121

1219

772882

437

2321

4279

1081

687

939

394

652

Wealth Mgmt Credit Cards Retail Business CorporateBusiness

Overseassubsidiaries

Lottery

2Q20 3Q20 4Q20 1Q21 2Q21

17% 16%

5% 4%

11%10%

8%8%

14%12%

45%50%

6M20 6M21

Wealth mgmt

Credit Cards

RetailBusiness

CorporateBusiness

OverseasSubsidiaries

Lottery

CTBC Bank’s fee breakdown

16

CTBC Bank’s numbers are presented on a consolidated basis.

1. Corporate business excludes overseas subsidiaries.


CTBC Bank’s fee income breakdown

NT$ mn, %

1

Total Fees (NT$ mn) %

1Q21: 10,753 2Q212: 8,032 -25.3%

6M20: 16,922 6M212: 18,785 +11.0%

2

2

QoQ -11.3%

YoY -0.9%

QoQ -11.1%

YoY +2.4%

QoQ -9.9%

YoY -4.6%

QoQ -71.9%

YoY +3.4%

QoQ +6.4%

YoY -3.2%

QoQ -16.5%

YoY +24.5%


1,922

2,550 2,488 2,830

2,554

1,100

1,396 1,540

1,753

1,198 115

130 127

130

137

289

497 308

409

390

2Q20 3Q20 4Q20 1Q21 2Q21

Others

Custodian & Trust

Mutual Fund

Bancassurance

3,427 5,121

56% 56% 56% 55%60%

32% 31%34% 34% 28%

3%3%

3% 3% 3%

8% 11%7% 8% 9%

2Q20 3Q20 4Q20 1Q21 2Q21

Others

Custodian & Trust

Mutual Fund

Bancassurance

Wealth mgmt. fee breakdown

%

CTBC Bank’s Wealth Management fee

Wealth mgmt. fee breakdown

NT$ mn

1

1. 2Q21 number is preliminary.

17

11

4,464 4,2794,574


61.2%

56.2%

62.7%60.8% 59.8%

56.8%60.3%

CIR

49,957 50,505

28,38830,468

6M20 6M21

1818

CTBC Bank’s cost to income ratio

CTBC Bank’s cost-to-income ratio1 and revenue & non-interest expense

NT$ mn, %

1. Cost-to-Income ratio is derived by dividing Total Non-interest Expense by Pre-provision Operating Revenue.


2

24,295 24,95724,004

26,608

23,897

14,85714,027

15,04716,186

14,282

2Q20 3Q20 4Q20 1Q21 2Q21

Revenue Non-Interest Expense

2


0.39%

0.48% 0.49% 0.48%

0.40%


35.6 34.7 33.8 33.3 32.9


CTBC Reserve

NPL coverage ratio

NT$ bn, %

1919

CTBC Bank’s asset quality

NPL ratio 1

%

2 2

370.8%

293.6%272.0% 270.4%

315.5%

NPL coverage ratio


1. NPL refers to loans over 90 days overdue.



Provisioning ratios & provision costs

NT$ mn, %

CTBC Bank’s credit cost trend


1. 2Q21/6M21 number is preliminary.20

3,553

1,501 2,153

925 1,396

5,534

2,321

2Q20 3Q20 4Q20 1Q21 2Q21 6M20 6M2111

0.55%

0.23%0.33%

0.14%0.21%

0.43%

0.18%

Credit costs


41,396

49,476

58,133 54,661

44,851

2Q20 3Q20 4Q20 1Q21 2Q21

2121

Total premium (TP)

NT$ mn, %

Data resource: Life insurance association and Taiwan Insurance Institution

% Taiwan Life Industry

QoQ Growth -17.9% -6.4%

YoY Growth -1.8% -5.4%

Rank (MS%) No 6 (6.6%) -

Total Premium

Taiwan Life - Total premium (TP)

101,289

99,513

6M20 6M21

© CTBC Financial Holding 22

Taiwan Life - First year premium (FYP)

22

First year premium (FYP)

NT$ mn, %

Data resource: Life insurance association and Taiwan Insurance Institution

15,607

22,916

27,733

31,116

22,418

2Q20 3Q20 4Q20 1Q21 2Q21

First Year Premium

38,924

53,534

6M20 6M21


QoQ Growth -28.0% -15.4%

YoY Growth +37.5% +9.4%

Rank (MS%) No 3 (10.4%) -


Taiwan Life - FYP breakdown by types of payment

& products

FYP breakdown by products

%

4.5% 3.6%

2.9%0.9%

66.3%

26.9%

26.4%

68.6%

6M20 6M21

Inv-linked

Interestsensitive

Traditional

Health & PA

FYP breakdown by types of payment

%

43.2%

17.4%

30.5%

14.0%

26.4%

68.6%

6M20 6M21

Inv-linked

Regular paid

Single paid

1. FYP is grouped by types of payment, except inv-linked products

1


21.2%

6.3%

52.4%

25.1%

26.4%

68.6%

6M20 6M21

Inv-linked

FC

NTD

24

Taiwan Life - FYP breakdown by channels &

currencies

24

FYP breakdown by channels

%

FYP breakdown by currencies

%

14.8%8.3%

9.6%

5.0%

0.8%

0.3%

30.4%

15.6%

44.0%

70.9%

0.3% 0.0%

6M20 6M21

Others

Bank-CTBC

Bank-External

Tel-marketing

Brokers

Tied Agent

1. FYP is grouped by currencies, except inv-linked products

1


First year premium equivalent (FYPE)

NT$ mn, %

Taiwan Life - First year premium equivalent (FYPE)

6M21 FYPE breakdown by channels

%

6M21 FYPE breakdown by products

%


QoQ -37.0% -13.4%

YoY +3.9% -31.4%

Rank (MS%) No 4 (9.4%) -

Traditional, 4.2%

Interest sensitive,

34.6%

Inv-Linked, 44.1%

Health & PA, 17.0%

Bank-CTBC, 50.6%

Bank-External,

18.1%

Tel-marketing, 1.5%

Brokers, 16.2%

Tied Agent, 13.5%

Others, 0.1%

5,428

6,773

5,764

7,026

4,424

2Q20 3Q20 4Q20 1Q21 2Q21

FYPE

11,021 11,450

6M20 6M21


5.2% 5.4% 5.0% 4.6% 7.0%

10.8% 10.9% 10.9% 10.8%9.9%

59.9% 60.0% 59.9% 60.7% 59.4%

8.5% 7.8% 7.9% 7.9% 7.8%

1.4% 1.3% 1.4% 1.4% 1.5%1.3% 1.3% 1.3% 1.3% 1.3%4.4% 4.4% 4.4% 4.6% 4.6%

8.4%8.9% 9.2% 8.8% 8.5%


Mutual fund

Real Estate

Policy loan

Mortgage

Equities

Overseas fixed income

Domestic fixed income

Deposit and cash equivalents

26

Taiwan Life - Investment portfolio breakdown

Total investment portfolio breakdown

NT$bn,%

26

Total Investment Assets1,938.81,899.6 1,922.8 1,954.2 1,961.4


3.61%

3.45%

3.10%

3.28%

3.06%

2018 2019 2020 - 6M20 6M21

Cost of liability

3.48%

3.84% 3.79%3.92%

4.66%

3.76%

3.86%

3.57% 3.46%

3.17%

2018 2019 2020 欄1 6M20 6M21

Investment Yield Recurring Yield

Total investment yield and recurring yield

%

27

Taiwan Life - Investment yield & cost of liability

27

1. Investment yield is after hedge

2. Recurring yield is before hedge

1 2

Cost of liabilities

%


FC Policy40%

Hedged40%

Equity-OCI8%

Unhedged12%

FC Policy Hedged Equity-OCI Unhedged1 2

Inclu. extra

reserve of

NT$1.5bn

Inclu. extra

reserve of

NT$3bn

28

Taiwan Life – Hedging & FX reserve

28

1. Hedged position Includes currency swap, NDF, and proxy

2. Equity-OCI includes equity and mutual fund

6M21 FC investment hedging structureFX reserve balance

NT$ mn

2,274

3,332 3,252

2018 2019 2020

2,126

1,666

6M20 6M21

Annualized hedging cost % (overseas asset-based)

Took extra

reserve of

NT$1bn

In Apr.21

NTD Policy

Hedged 67%

Equity-

OCI13%

Unhedged 20%

2018 2019 2020 6M20 6M21

1.25% 1.46% 1.39% 1.18% 1.55%

August 23rd, 2021

Investor Relations

Analyst Meeting

Financial Review of 2Q21

Appendix

CTBC Holding

30

DISCLAIMER

THE FINANCIAL INFORMATION IN THESE MATERIALS AS OF AND FOR THE THREE

MONTHS ENDED JUNE 30th, 2021 ARE PRELIMINARY. CTBC HOLDING EXPECTS TO

FILE ITS UNAUDITED FINANCIAL STATEMENTS, WHICH ARE SUBJECT TO REVIEW

BY ITS AUDITORS, WITH THE ROC SECURITIES AND FUTURES BUREAU ON OR

ABOUT AUGUST 31st, 2021.

These materials are not an offer for sale of securities in the United States. Securities

may not be sold in the United States absent registration or an exemption from

registration under the U.S. Securities Act of 1933, as amended.

31

CTBC Holding’s Summary Ratios

1. 2Q21 / 6M21 numbers are preliminary.

2. ROAA/ROAE are calculated on an annualized basis

3. CTBC Bank’s ratios are calculated on a consolidated basis..

YTD Results

2018 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q211 6M211

Per Share Data (Reported)

EPS (after-tax) (NT$) 1.85 2.16 2.15 0.31 0.87 0.35 1.01 0.70 1.72

DPS (NT$) 1.00 1.00 1.05 - - - - - -

BVPS (NT$) 15.14 18.01 19.25 17.00 17.56 19.25 19.41 20.46 20.46

Common shares outstanding

(million share)19,497 19,497 19,497 19,497 19,497 19,497 19,497 19,497 19,497

DuPont Analysis

ROAA (after-tax)(%)2 0.65% 0.72% 0.67% 0.44% 1.05% 0.41% 1.19% 0.82% 1.00%

ROAE (after-tax)(%)2 12.09% 13.04% 11.53% 8.42% 19.83% 7.22% 20.92% 14.14% 17.28%

Leverage & Solvency Ratios

Double Leverage Ratio (%) 118.4% 115.6% 115.2% 116.9% 116.5% 115.2% 115.3% 110.5% 110.5%

Avg. Equity / Avg. Assets (%) 5.73% 5.81% 6.13% 5.52% 5.71% 5.94% 6.14% 6.28% 6.04%

CAR - FHC (%) 117.9% 115.7% 125.0% 112.3% 115.8% 125.0% 128.3% 137.0% 137.0%

CAR - Bank3 (%) 14.12% 13.84% 14.61% 13.33% 13.51% 14.61% 14.79% 14.51% 14.51%

Tier 1 Ratio - Bank3 (%) 12.77% 12.40% 13.09% 11.88% 12.05% 13.09% 13.27% 13.03% 13.03%

CET1 Ratio - Bank3 (%) 11.62% 11.33% 11.95% 10.80% 10.97% 11.95% 12.12% 11.86% 11.86%

Yearly Results Quarterly results

YTD Results

2018 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q211 6M211

Bank Growth Ratios

NII growth 9.59% 7.19% 0.04% -2.68% -0.64% 1.17% -0.09% 1.89% 0.01%

Fee growth -3.06% 10.52% 0.84% -26.23% 25.85% -6.11% 26.68% -25.31% 11.01%

Net profit growth -1.14% 4.11% -11.76% -39.42% 57.10% -27.21% 38.30% -14.83% 10.48%

Bank Performance Ratios

Loan growth 8.01% 4.54% 2.44% -0.20% -0.40% 1.31% 2.83% 1.95% 5.78%

Deposit growth 5.87% 7.13% 10.91% 1.31% 3.93% 3.43% 0.98% 1.30% 9.96%

Avg. Loan-to-Deposit Ratio 74.47% 74.46% 72.62% 74.07% 72.77% 70.43% 69.70% 70.65% 70.18%

NIM 1.50% 1.50% 1.43% 1.44% 1.40% 1.40% 1.39% 1.39% 1.39%

NII / Operating income 55.4% 54.6% 57.2% 57.9% 56.0% 58.9% 53.1% 60.2% 56.5%

Fee / Operating income 32.4% 32.9% 34.8% 29.6% 36.2% 35.4% 40.4% 33.6% 37.2%

Cost-to-income ratio 57.6% 57.7% 58.1% 61.2% 56.2% 62.7% 60.8% 59.8% 60.3%

Asset Quality Ratios

NPLs / Total Loans 0.43% 0.34% 0.49% 0.39% 0.48% 0.49% 0.48% 0.40% 0.40%

Reserve / Total Loans2 1.34% 1.39% 1.41% 1.49% 1.45% 1.41% 1.37% 1.35% 1.35%

Reserve / NPLs 296.26% 386.64% 272.01% 370.85% 293.62% 272.01% 270.35% 315.54% 315.54%

Provision/Avg. Loans & Revolv. Bal.3 0.20% 0.22% 0.36% 0.55% 0.23% 0.33% 0.14% 0.21% 0.18%

Yearly Results Quarterly Results%

32

CTBC Bank’s Summary Ratios (Consolidated)

1. 2Q21 /6M21 numbers are preliminary.

2. Effective 4Q11, calculation excluding government loan by regulatory definition.

3. Numbers are calculated on an annualized basis

33

Balance Sheet of CTBC Holding and its major

subsidiaries as of June 30, 20211

NT$mmCTBC Bank

(consolidated)

Taiwan Life

(consolidated)

CTBC

Securities

CTBC

AMC

CTBC

Capital

Taiwan

LotteryOthers2 CTBC FHC

(consolidated)

Assets:

Cash and due from banks 395,934 138,453 922 829 758 587 (43,398) 494,086

Securities, net 1,254,726 1,595,104 21,938 2,349 5,663 0 15,363 2,895,142

Loans, net 2,598,222 54,977 0 0 0 0 0 2,653,199

A/R, net 125,196 28,022 7,220 147 8,738 658 (1,085) 168,896

LT investments, net 18,649 12,159 0 0 0 0 58 30,866

Land, premises and equipments, net 41,759 7,830 113 1 13 66 86 49,867

Others 114,237 268,823 16,409 4,149 3,591 130 (1,052) 406,287

Total Assets 4,548,722 2,105,367 46,602 7,475 18,763 1,441 (30,028) 6,698,343

Liabilities:

Deposits 3,836,872 0 0 0 0 0 (45,300) 3,791,572

Other liabilities 408,013 1,953,393 37,030 1,769 13,469 352 63,844 2,477,870

Total liabilities 4,244,885 1,953,393 37,030 1,769 13,469 352 18,543 6,269,442

Minority interests 76 0 0 0 0 0 0 76

Total stockholders' equity 303,761 151,974 9,572 5,705 5,294 1,090 (48,571) 428,825

Total liabilities and stockholders'

equity4,548,722 2,105,367 46,602 7,475 18,763 1,441 (30,028) 6,698,343

1. These numbers are preliminary.

2. Others include CTBC Investments, CTBC Holding(standalone) and accounting eliminations.

34

P&L of CTBC Holding and its subsidiaries for the year

ended June 30, 20211

1. These numbers are preliminary.

2. Others include CTBC Investments, CTBC Holding(standalone) and accounting eliminations.

3. Includes premium income, insurance claims & payment, insurance reserve, reinsurance expense, underwriting expense and other expense

4. Includes Life’s foreign exchange reserve

5. Operating expenses include business tax

6. Net profit after Income Tax is excluding Minority Interest Income.

NT$mmCTBC Bank

(consolidated)

Taiwan Life

(consolidated)

CTBC

Securities

CTBC

AMC

CTBC

Capital

Taiwan

LotteryOthers2 CTBC FHC

(consolidated)

Operating income

Net interest income 28,511 24,859 169 175 177 0 (278) 53,614

Fee income 18,785 (6,478) 926 (0) (0) 1,134 (710) 13,657

Insurance business income3 0 (17,503) 0 0 0 0 91 (17,412)

LT investment income 476 (74) 0 0 0 0 4 406

Trading,Derivatives & FX 3,670 18,428 718 (13) 1,364 0 3 24,170

Other income (loss)4 (937) 1,774 (49) 193 14 (4) (262) 728

Operating revenue 50,505 21,006 1,764 355 1,555 1,129 (1,152) 75,163

Operating expenses5 (30,468) (3,213) (974) (152) (157) (562) 138 (35,388)

Credit loss provisions, net (2,321) 17 (1) 11 (12) 0 0 (2,306)

Profit before income tax 17,716 17,810 789 214 1,386 567 (1,014) 37,469

Profit after income tax6 14,883 16,574 687 276 1,352 455 (777) 33,449

2018 2019 2020 Jun 20 Sep 20 Dec 20 Mar 21 Jun 211 QoQ(%) YoY(%)

Assets:

Cash and due from banks 381,228 387,966 500,006 394,397 488,323 500,006 425,741 494,086 16.1% 25.3%

Securities, net 2,442,311 2,745,729 2,932,635 2,846,110 2,876,321 2,932,635 2,951,259 2,895,142 -1.9% 1.7%

Loans, net 2,364,345 2,471,532 2,528,287 2,504,387 2,493,464 2,528,287 2,599,884 2,653,199 2.1% 5.9%

A/R, net 201,112 194,508 180,883 181,219 178,106 180,883 174,565 168,896 -3.2% -6.8%

LT investments, net 35,353 28,708 31,439 29,913 29,825 31,439 31,240 30,866 -1.2% 3.2%

Land, premises and equipments, net 53,986 50,698 49,310 50,003 49,699 49,310 50,047 49,867 -0.4% -0.3%

Others 274,912 340,293 394,107 375,910 360,252 394,107 396,998 406,287 2.3% 8.1%

Total assets 5,753,248 6,219,435 6,616,667 6,381,939 6,475,991 6,616,667 6,629,735 6,698,343 1.0% 5.0%

Liabilities:

Deposits 3,138,015 3,360,071 3,728,668 3,455,000 3,607,053 3,728,668 3,748,389 3,791,572 1.2% 9.7%

Other liabilities 2,300,084 2,478,144 2,482,689 2,565,375 2,496,516 2,482,689 2,472,827 2,477,870 0.2% -3.4%

Total liabilities 5,438,099 5,838,215 6,211,356 6,020,375 6,103,569 6,211,356 6,221,216 6,269,442 0.8% 4.1%

Minority interests 76 81 80 80 77 80 77 76 -1.3% -5.7%

Total stockholders' equity 315,072 381,139 405,231 361,483 372,344 405,231 408,442 428,825 5.0% 18.6%

Total liabilities and stockholders' equity 5,753,248 6,219,435 6,616,667 6,381,939 6,475,991 6,616,667 6,629,735 6,698,343 1.0% 5.0%

NT$mm, %Quarterly ResultsYearly Results

35

CTBC Holding’s Balance Sheet (Consolidated)

1. June 21 numbers are preliminary.

36

CTBC Holding’s P&L (Consolidated)

1. 2Q21/ 6M21 number are preliminary.

2. Includes premium income, insurance claims & payment, insurance reserve, reinsurance expense, underwriting expense and other expense

3. Includes Life’s foreign exchange reserve


5. Net profit after Income Tax is excluding Minority Interest Income

2018 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q211 QoQ % 6M20 6M211 YoY %

Operating Income

Net interest income 102,275 110,637 109,054 27,339 27,041 27,084 26,834 26,780 -0.2% 54,929 53,614 -2.4%

Fee income 20,375 24,462 23,032 4,696 5,815 5,398 7,516 6,141 -18.3% 11,819 13,657 15.5%

Insurance business income2 (31,237) (37,266) (35,500) (8,397) (8,420) (8,721) (8,890) (8,521) 4.1% (18,359) (17,412) 5.2%

LT investment income 1,610 1,515 1,210 841 328 162 204 202 -0.8% 721 406 -43.7%

Trading, Derivative & FX 19,225 27,598 28,374 5,390 11,735 2,560 16,290 7,880 -51.6% 14,079 24,170 71.7%

Other income (loss)3 (3,235) (1,365) (635) 2,124 207 (820) (52) 780 1607.4% (21) 728 3509.6%

Operating Revenue 109,013 125,581 125,535 31,993 36,704 25,662 41,901 33,262 -20.6% 63,169 75,163 19.0%

Operating expenses4 (61,720) (68,130) (64,700) (17,280) (16,592) (15,822) (18,416) (16,973) -7.8% (32,286) (35,388) 9.6%

Credit loss provisions, net (4,903) (5,641) (9,258) (3,557) (1,541) (2,228) (931) (1,375) 47.6% (5,489) (2,306) -58.0%

Net profit before income tax 42,389 51,809 51,577 11,155 18,571 7,612 22,554 14,915 -33.9% 25,393 37,469 47.6%

Net profit after income tax5 36,032 42,880 42,853 7,017 16,949 6,727 19,709 13,741 -30.3% 19,177 33,449 74.4%

NT$mm, %Yearly Results Quarterly Results YTD Results

37

CTBC Bank’s Balance Sheet (Consolidated)

1. June 21 number are preliminary.


Assets:

Cash and due from banks 340,440 321,883 420,862 313,016 404,878 420,862 374,175 395,934 5.8% 26.5%

Securities, net 972,615 1,124,863 1,270,204 1,198,625 1,239,562 1,270,204 1,273,869 1,254,726 -1.5% 4.7%

Loans, net 2,313,708 2,417,691 2,475,938 2,451,734 2,442,732 2,475,938 2,547,417 2,598,222 2.0% 6.0%

A/R, net 164,695 159,443 142,472 141,375 137,948 142,472 132,273 125,196 -5.4% -11.4%

LT investments, net 19,537 20,968 19,650 19,657 19,149 19,650 19,242 18,649 -3.1% -5.1%

Land, premises and equipments, net 47,997 44,334 43,001 43,678 43,374 43,001 42,177 41,759 -1.0% -4.4%

Others 100,586 137,989 138,130 165,622 132,106 138,130 123,876 114,237 -7.8% -31.0%

Total assets 3,959,578 4,227,171 4,510,256 4,333,707 4,419,748 4,510,256 4,513,029 4,548,722 0.8% 5.0%

Liabilities:

Deposits 3,156,767 3,381,818 3,750,938 3,489,454 3,626,581 3,750,938 3,787,787 3,836,872 1.3% 10.0%

Other liabilities 506,996 536,023 446,938 546,827 489,762 446,938 410,505 408,013 -0.6% -25.4%

Total liabilities 3,663,763 3,917,841 4,197,876 4,036,280 4,116,343 4,197,876 4,198,292 4,244,885 1.1% 5.2%

Minority interests 76 81 80 80 77 80 77 76 -1.3% -5.7%

Total stockholders' equity 295,739 309,248 312,300 297,346 303,328 312,300 314,660 303,761 -3.5% 2.2%


Yearly Results Quarterly ResultsNT$mm, %

2018 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q211 QoQ % 6M20 6M211 YoY %

Operating Income

Net interest income 52,793 56,590 56,614 14,061 13,971 14,134 14,122 14,389 1.9% 28,509 28,511 0.0%

Fee income 30,914 34,166 34,453 7,184 9,041 8,489 10,753 8,032 -25.3% 16,922 18,785 11.0%

LT investment income 1,300 1,283 925 915 236 137 255 221 -13.2% 552 476 -13.8%

Trading, Derivatives & FX 11,087 13,000 8,352 2,371 1,932 1,341 2,471 1,199 -51.5% 5,079 3,670 -27.8%

Other income (loss) (717) (1,329) (1,425) (236) (223) (96) (994) 57 105.7% (1,107) (937) 15.3%

Operating Revenue 95,377 103,709 98,918 24,295 24,957 24,004 26,608 23,897 -10.2% 49,957 50,505 1.1%

Operating expenses2 (54,905) (59,859) (57,462) (14,857) (14,027) (15,047) (16,186) (14,282) -11.8% (28,388) (30,468) 7.3%

Pre-provision profit 40,472 43,850 41,456 9,437 10,930 8,957 10,422 9,615 -7.7% 21,569 20,037 -7.1%

Credit loss provisions, net (4,740) (5,391) (9,188) (3,553) (1,501) (2,153) (925) (1,396) 50.9% (5,534) (2,321) -58.1%

Net profit before income tax 35,732 38,459 32,268 5,884 9,428 6,804 9,497 8,219 -13.5% 16,035 17,716 10.5%

Net profit after income tax3 29,680 30,899 27,267 5,082 7,984 5,812 8,038 6,846 -14.8% 13,471 14,883 10.5%

Quarterly Results YTD ResultsYearly ResultsNT$ mm, %

38

CTBC Bank’s P&L (Consolidated)



3. Net profit after Income Tax is excluding Minority Interest Income.

39

CTBC Bank’s Loan Breakdown (Consolidated)


2. Other loans include car loans under repurchase agreement, car loans and small business loans.


Corporate loans 541,315 581,230 583,577 568,761 553,640 583,577 651,067 691,972 6.3% 21.7%

Manufacturing 133,907 133,839 135,970 137,044 140,003 135,970 133,071 135,636 1.9% -1.0%

Commerce & services 66,623 61,036 59,322 57,427 53,578 59,322 72,009 80,567 11.9% 40.3%

Govt & non-profit org. 105,812 129,091 114,474 102,834 91,213 114,474 163,545 195,341 19.4% 90.0%

Construction & real estate 66,218 73,932 81,849 81,866 80,907 81,849 80,542 79,417 -1.4% -3.0%

Finance & insurance 52,007 54,983 51,710 53,845 52,420 51,710 56,536 54,925 -2.8% 2.0%

Others 116,748 128,349 140,252 135,745 135,518 140,252 145,364 146,086 0.5% 7.6%

Mortgages 639,376 693,412 764,607 718,275 739,591 764,607 779,972 798,397 2.4% 11.2%

Unsecured loans 115,353 128,634 174,892 162,650 170,460 174,892 176,841 192,524 8.9% 18.4%

Others2 10,650 12,809 16,039 14,210 15,484 16,039 16,236 16,616 2.3% 16.9%

Non-accrual account 1,620 1,458 1,174 1,386 1,193 1,174 1,291 1,449 12.2% 4.5%

Total NTD Loans 1,308,313 1,417,542 1,540,289 1,465,281 1,480,368 1,540,289 1,625,407 1,700,957 4.6% 16.1%

Total Foreign currency loans 1,035,387 1,032,509 969,453 1,022,086 997,033 969,453 955,293 930,190 -2.6% -9.0%

Total Loan 2,343,700 2,450,051 2,509,742 2,487,367 2,477,401 2,509,742 2,580,700 2,631,147 2.0% 5.8%


2018 2019 2020 Jun 20 Sep 20 Dec 20 Mar 21 Jun 211 QoQ(%) YoY (%)

Demand & savings

Checking & demand deposits 220,664 243,545 325,089 314,481 317,872 325,089 331,437 350,407 5.7% 11.4%

Saving deposits 733,530 802,912 961,837 885,784 917,012 961,837 1,011,316 1,066,401 5.4% 20.4%

Sub-total 954,195 1,046,457 1,286,925 1,200,265 1,234,884 1,286,925 1,342,752 1,416,809 5.5% 18.0%

Time & Time savings

Time deposits (incl. CD) 255,481 310,430 337,789 303,744 354,585 337,789 370,000 368,424 -0.4% 21.3%

Time saving deposits 443,004 486,906 471,296 472,359 471,076 471,296 472,958 473,030 0.0% 0.1%

Sub-total 698,485 797,336 809,085 776,104 825,662 809,085 842,958 841,454 -0.2% 8.4%

Remittances 5,746 1,237 1,748 1,301 1,961 1,748 1,152 1,323 14.8% 1.7%

Foreign currency deposits 1,498,342 1,536,788 1,653,179 1,511,784 1,564,074 1,653,179 1,600,924 1,577,286 -1.5% 4.3%

Total deposits 3,156,767 3,381,818 3,750,938 3,489,454 3,626,581 3,750,938 3,787,787 3,836,872 1.3% 10.0%


40

CTBC Bank’s Deposit Breakdown (Consolidated)


41

CTBC Bank’s Spread (Consolidated)


2. Credit card receivables are excluded in the calculation of NTD, foreign currency, and overall loan spread, and is included in the calculation of NIM

3. QoQ, YoY change and spread number may not add up due to the rounding.

2018 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q211QoQ

(Chg)6M20 6M211

YoY

(Chg)

NTD

Lending rate 2.01 1.99 1.87 1.84 1.81 1.83 1.81 1.77 (0.04) 1.91 1.79 (0.12)

Deposit rate 0.41 0.42 0.33 0.33 0.30 0.29 0.27 0.26 (0.01) 0.37 0.26 (0.11)

NTD spread2 1.60 1.57 1.53 1.51 1.51 1.54 1.55 1.51 (0.03) 1.54 1.53 (0.01)

Foreign currency

Lending rate 3.20 3.32 2.68 2.71 2.48 2.45 2.42 2.42 (0.01) 2.90 2.42 (0.48)

Deposit rate 0.89 1.00 0.54 0.59 0.40 0.32 0.28 0.26 (0.02) 0.72 0.27 (0.45)

Foreign currency spread2 2.31 2.32 2.15 2.12 2.08 2.13 2.15 2.16 0.01 2.18 2.15 (0.03)

NTD & foreign currency

Lending rate 2.54 2.58 2.20 2.20 2.08 2.08 2.05 2.01 (0.04) 2.33 2.03 (0.30)

Deposit rate 0.65 0.69 0.42 0.45 0.34 0.30 0.27 0.26 (0.01) 0.53 0.26 (0.26)

Overall spread2 1.90 1.89 1.78 1.75 1.74 1.77 1.78 1.75 (0.03) 1.80 1.76 (0.04)

NIM 1.50 1.50 1.43 1.44 1.40 1.40 1.39 1.39 (0.00) 1.46 1.39 (0.07)

Yearly Results Quarterly Results YTD Results%

42

CTBC Bank’s Asset Quality (Consolidated)

1. 2Q21/ 6M21/ June 21 numbers are preliminary.

2. Corporate NPL ratio excludes overseas subsidiaries NPL

3. QoQ, YoY change may not add up due to the rounding.

2018 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q211 QoQ(%) 6M20 6M211 YoY (%)

90-days NPLs - beginning 8,872 10,123 8,369 10,255 9,608 11,808 12,428 12,311 -0.9% 8,369 12,428 48.5%

New NPL influx, net of recovery &

others4,356 2,251 11,972 857 4,915 3,746 1,910 2,206 15.5% 3,310 4,116 24.3%

Write-offs & other deductions (3,105) (4,005) (7,914) (1,504) (2,716) (3,126) (2,027) (4,082) 101.4% (2,071) (6,109) 194.9%

90-days NPLs - ending 10,123 8,369 12,428 9,608 11,808 12,428 12,311 10,434 -15.2% 9,608 10,434 8.6%

Provisions and reserves

Total provisions 4,740 5,391 9,188 3,553 1,501 2,153 925 1,396 50.9% 5,534 2,321 -58.1%

Total reserves 29,992 32,359 33,804 35,632 34,669 33,804 33,283 32,925 -1.1% 35,632 32,925 -7.6%

2018 2019 2020 Jun_20 Sep_20 Dec_20 Mar_21 Jun_211 QoQ

(Chg)Jun_20 Jun_21

1 YoY

(Chg)

Corporate NPL ratio2 0.31% 0.22% 0.38% 0.37% 0.48% 0.38% 0.34% 0.22% -0.12% 0.37% 0.22% -0.15%

Retail NPL ratio 0.11% 0.10% 0.08% 0.09% 0.08% 0.08% 0.11% 0.15% 0.04% 0.09% 0.15% 0.06%

Overseas Subsidiaries NPL ratio 1.03% 0.88% 1.39% 0.88% 1.12% 1.39% 1.41% 1.25% -0.16% 0.88% 1.25% 0.38%

Total NPL ratio 0.43% 0.34% 0.49% 0.39% 0.48% 0.49% 0.48% 0.40% -0.08% 0.39% 0.40% 0.01%

NT$mm, %

%

Yearly Results Quarterly Results YTD Results


43

Tokyo Star Bank’s P&L & Balance Sheet (IFRS)

1. Others include trading, derivatives & FX and other income(loss)


3. Others include LT Investments (net), land, premises and equipment (net) and others

P&L

NT$mm, % 2018 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ (%) 6M20 6M21 YoY (%)

Operating Income

Net interest income 9,839 10,352 9,105 2,285 2,237 2,197 2,034 1,922 -5.5% 4,671 3,956 -15.3%

Fee income 1,829 1,875 1,318 244 290 305 326 253 -22.3% 723 579 -20.0%

Others1 1,733 2,081 (33) (26) 93 81 138 61 -55.4% (207) 199 195.9%

Operating Revenue 13,401 14,308 10,390 2,504 2,620 2,583 2,497 2,237 -10.4% 5,187 4,733 -8.7%

Operating expenses2 (9,625) (9,872) (9,555) (2,301) (2,085) (2,710) (2,202) (1,889) -14.2% (4,759) (4,091) -14.0%

Credit loss provisions, net (322) (252) (1,890) (604) (221) (1,068) 6 4 32.2% (602) 11 -101.8%

Net profit before income tax 3,454 4,184 (1,055) (400) 314 (1,195) 302 352 16.7% (174) 653 475.1%

Net profit after income tax 2,472 3,109 (924) (281) 197 (943) 187 270 44.4% (178) 457 357.1%

Balance Sheet 2018 2019 2020 Jun_20 Sep_20 Dec_20 Mar_21 Jun_21 QoQ (%) YoY (%)

Assets:

Cash and due from banks 124,986 97,139 130,221 72,681 137,391 130,221 119,209 118,344 -0.7% 62.8%

Securities, net 69,815 67,186 56,535 56,731 53,357 56,535 50,368 41,488 -17.6% -26.9%

Loans, net 466,412 457,887 434,207 444,399 432,416 434,207 401,289 377,816 -5.8% -15.0%

Others3 36,770 31,030 26,495 27,360 26,697 26,495 23,945 22,176 -7.4% -18.9%

Total assets 697,983 653,241 647,458 601,170 649,861 647,458 594,811 559,824 -5.9% -6.9%

Liabilities:

Deposits 527,856 491,890 535,121 476,787 531,502 535,121 499,652 470,345 -5.9% -1.4%

Other liabilities 127,538 115,883 67,893 79,744 73,209 67,893 53,732 48,564 -9.6% -39.1%

Total liabilities 655,395 607,773 603,014 556,531 604,711 603,014 553,384 518,910 -6.2% -6.8%

Total stockholders' equity 42,588 45,468 44,444 44,640 45,150 44,444 41,427 40,914 -1.2% -8.3%

Total liabilities and

stockholders' equity697,983 653,241 647,458 601,170 649,861 647,458 594,811 559,824 -5.9% -6.9%


44

Tokyo Star Bank’s Loan & Deposit Breakdown (based on IFRS)

1.SD: structured deposit

2.Numbers are calculated on an annualized basis

3.QoQ, YoY change may not add up due to the rounding.

2018 2019 2020 Jun_20 Sep_20 Dec_20 Mar_21 Jun_21 QoQ(%) YoY(%)

Corporate Loan 269,240 261,669 242,388 250,225 238,764 242,388 227,081 210,704 -7.2% -15.8%

Retail Loan 200,808 199,594 196,394 197,594 197,201 196,394 178,386 171,054 -4.1% -13.4%

Secured Loan 192,371 189,502 185,284 186,645 186,263 185,284 167,319 160,164 -4.3% -14.2%

Unsecured Loan 8,437 10,092 11,109 10,949 10,938 11,109 11,067 10,890 -1.6% -0.5%

Total Loan 470,048 461,262 438,782 447,818 435,964 438,782 405,466 381,758 -5.8% -14.8%

Deposit Breakdown 2018 2019 2020 Jun_20 Sep_20 Dec_20 Mar_21 Jun_21 QoQ(%) YoY(%)

Retail 339,694 302,597 311,698 304,731 305,181 311,698 299,011 293,705 -1.8% -3.6%

Corporate 188,162 189,293 223,423 172,056 226,321 223,423 200,641 176,640 -12.0% 2.7%

Total Deposit (excl SD1) 527,856 491,890 535,121 476,787 531,502 535,121 499,652 470,345 -5.9% -1.4%

Loan-to-Deposit Ratio 89.05% 93.77% 82.00% 93.92% 82.02% 82.00% 81.15% 81.17% 0.02% -12.76%

Asset Quality % 2018 2019 2020 Jun_20 Sep_20 Dec_20 Mar_21 Jun_21 QoQ(Chg) YoY(Chg)

NPLs/Total Loans 1.07% 0.83% 1.46% 0.86% 1.09% 1.46% 1.48% 1.34% -0.14% 0.48%

Reserve/NPLs 72.28% 87.95% 71.52% 89.20% 74.68% 71.52% 69.53% 77.21% 7.68% -12.00%

NIM & Credit cost 2018 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ(Chg) YoY(Chg)

NIM 1.52% 1.59% 1.46% 1.46% 1.43% 1.44% 1.40% 1.41% 0.00% -0.06%

Provision/Avg. Loans & Revolv. Bal.2 0.07% 0.05% 0.42% 0.53% 0.20% 0.97% -0.01% -0.00% 0.00% -0.54%


45

Taiwan Life’s P&L & Balance Sheet (Standalone)

1. 2Q21/ 6M21/ June 21 numbers are preliminary.


P&L

NT$mm, % 2018 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q211 QoQ(%) 6M20 6M211 YoY(%)

Retained earned premium 260,424 208,400 164,456 37,709 36,952 37,696 31,756 30,396 -4.3% 89,808 62,152 -30.8%

Retained claims and policyholders' benefits (87,026) (107,060) (131,124) (30,086) (32,557) (38,073) (34,971) (34,593) -1.1% (60,494) (69,564) 15.0%

Changes in liabilities reserves (205,098) (138,987) (69,269) (16,144) (12,930) (8,492) (5,735) (4,576) -20.2% (47,848) (10,311) -78.5%

Commission expense (12,764) (11,651) (13,982) (3,030) (3,889) (3,875) (4,146) (3,014) -27.3% (6,218) (7,161) 15.2%

Total investment 55,293 67,489 71,772 17,627 22,107 13,208 26,050 18,944 -27.3% 36,456 44,994 23.4%

Others 236 343 207 55 61 73 296 226 -23.6% 73 522 618.2%

Operating expenses2 (3,580) (4,927) (4,435) (1,381) (1,884) 79 (1,546) (1,289) -16.6% (2,630) (2,835) 7.8%

Net profit before Tax 7,485 13,607 17,624 4,750 7,860 618 11,704 6,093 -47.9% 9,147 17,798 94.6%

Net profit after Tax 8,298 13,110 16,534 3,912 7,763 626 10,296 6,278 -39.0% 8,144 16,574 103.5%

Balance Sheet

NT$mm, % 2018 2019 2020 Jun 20 Sep 20 Dec 20 Mar 21 Jun 211 QoQ(%) YoY(%)

General account 1,683,630 1,860,545 1,931,785 1,893,629 1,901,376 1,931,785 1,937,058 1,939,818 0.1% 2.4%

Separated account 72,962 91,886 125,641 92,725 104,053 125,641 143,840 154,596 7.5% 66.7%

Total Assets 1,756,592 1,952,431 2,057,426 1,986,354 2,005,429 2,057,426 2,080,898 2,094,414 0.6% 5.4%

Reserves for life insurance liabilities 1,571,466 1,701,364 1,747,645 1,739,635 1,745,869 1,747,645 1,752,508 1,744,111 -0.5% 0.3%

Other liabilities 119,812 133,275 171,153 135,174 144,447 171,153 190,285 198,330 4.2% 46.7%

Total liabilities 1,691,278 1,834,639 1,918,798 1,874,809 1,890,316 1,918,798 1,942,793 1,942,440 -0.0% 3.6%

Total stockholders' equity 65,314 117,792 138,628 111,545 115,113 138,628 138,106 151,974 10.0% 36.2%



46

Taiwan Life’s Premium Performance

1. Others include Health, PA and Others

NT$mm, %

Total Premium Breakdown by Products 2018 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ(%) 6M20 6M21 YoY(%)

Traditional 65,648 53,825 47,451 10,031 12,865 13,657 9,313 9,126 -2.0% 20,929 18,439 -11.9%

Interest Sensitive & UL 181,024 137,269 96,873 23,089 18,760 18,247 16,997 15,802 -7.0% 59,866 32,799 -45.2%

Investment Linked 33,329 22,697 44,056 3,602 12,357 20,498 23,187 14,468 -37.6% 11,201 37,655 236.2%

Others1 15,670 18,524 20,517 4,673 5,493 5,731 5,165 5,454 5.6% 9,293 10,619 14.3%

Total premium 295,671 232,315 208,897 41,396 49,476 58,133 54,661 44,851 -17.9% 101,289 99,513 -1.8%

FYP Breakdown by Products 2018 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ(%) 6M20 6M21 YoY(%)

Traditional 1,721 2,039 2,163 640 774 263 255 230 -9.6% 1,127 486 -56.9%

Interest Sensitive & UL 98,496 56,077 41,603 11,040 9,310 6,503 7,032 7,348 4.5% 25,790 14,380 -44.2%

Investment Linked 31,328 20,720 42,143 3,142 11,862 20,019 22,716 14,008 -38.3% 10,261 36,723 257.9%

Others1 2,736 4,199 3,664 785 970 948 1,113 832 -25.3% 1,745 1,945 11.4%

Total first year premium 134,281 83,035 89,573 15,607 22,916 27,733 31,116 22,418 -28.0% 38,924 53,534 37.5%

FYP Breakdown by Channels 2018 2019 2020 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ(%) 6M20 6M21 YoY(%)

Bank_CTBC 52,613 35,351 50,167 6,814 14,169 18,857 23,030 14,901 -35.3% 17,141 37,931 121.3%

Bank_External 45,033 22,896 22,313 4,914 4,717 5,748 4,041 4,285 6.0% 11,848 8,326 -29.7%

Tele-Marketing 769 783 564 142 137 114 95 75 -20.7% 313 170 -45.6%

Brokers 11,710 6,301 6,266 1,479 1,704 823 1,354 1,310 -3.2% 3,739 2,664 -28.8%

Tied Agent 23,578 17,071 10,106 2,215 2,165 2,180 2,585 1,838 -28.9% 5,761 4,422 -23.2%

Others 578 633 158 43 25 10 12 9 -23.1% 122 21 -82.7%

Total First Year Premium 134,281 83,035 89,573 15,607 22,916 27,733 31,116 22,418 -28.0% 38,924 53,534 37.5%

First Year Premium Equivalent (FYPE) 26,101 21,442 23,558 5,428 6,773 5,764 7,026 4,424 -37.0% 11,021 11,450 3.9%

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