Daiwa Non-Deal Roadshow
Transcript of Daiwa Non-Deal Roadshow
Tokyo, Dec. 2015
Daiwa Non-Deal RoadshowFirst Financial Holding
3Q 2015 Earnings Result
2
Disclaimer
This presentation is provided by First Financial Holding Co., Ltd. (“FFHC”). The information contained within is not reviewed 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 FFHC. While we endeavor to provide accurate, complete and consistent information herein, FFHC 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. First Group and all 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.
3
Contents
- Company Overview
- At a Glance
- Financial Highlight
- Operating Results
- Appendix
Company Overview
555
Overview of First Financial Holding
Founded in 1899, First Commercial Bank (“FCB”) stands for well-recognized franchise name, one of the “Top Three” commercial banks, supported by extensive branch network both domestic and overseas.
First Financial, formed in 2003, with First Bank as its flagship entity .
Strong deposit franchise and extensive network – low funding cost & high CASA rate
With Security, Asset management and Life Insurance subsidiary business, First Financial Holding remain keen for further expansion.
Net Income 12,013First Commercial Bank
First Securities
First Sec. Investment Trust
First-Aviva Life Insurance
Financial Summary
Deposit mkt share 5.5%
Private Loan mkt share 7.2%
FFHC asset size Top 8
SME 10.76%
Trade Finance Top 3
Mutual fund sales Top 4
Custodian Top 1
Bank branches 190 domestic /30 overseas
in NT$ mn
$mn, except per
share amounts
2012 2013 2014 3Q 2015
Total Revenues 36,659 36,466 34,186 30,146
Net Income 10,118 10,877 14,078 12,018
EPS 1.18 1.18 1.52 1.21
ROAE (annualized) 7.86% 7.94% 9.53% 9.45%
3Q 2015 Financial Summary
Net Income 112
Net Income 88
Net Income (30)
FFHC Ownership Profile
Government (Direct 21.78%; Indirect: 10.24%) 32.02% Other Investors: 43.57%
Foreign Institution: 24.41% Data as of 2015/4/28
2015/9/30
176
97 9487
Chinatrust Fubon Hua Nan First Bank
3,930
2,451 2,117 2,083 2,030 1,885
11.09%
7.10%
6.13% 6.03% 5.88%5.46%
Bank of Taiwan CooperativeBank
Mega CTBC Land Bank First Bank
66
In NT billion/ market share
Data as of 2015/9/30
Source: Financial Supervision Commission, Banking Bureau
Deposit- Rank Taiwan #6 SME Loan – Rank Taiwan # 1
Mutual Fund Sales – Rank Taiwan # 4
Peers Comparison
803 704 703 672 657
8.60%
7.54% 7.53%7.20% 7.04%
Cooperative Bank Bank of Taiwan Mega First Hua Nan
580 552
449 419
10.76%10.23%
8.33%7.77%
First Bank Cooperative Bank Taiwan BusinessBank
Hua Nan
Private Enterprise Loan- Rank Taiwan # 4
At a Glance
8
3Q 2015– End up with Firm Core
3Q15 Overall Performance : Steady core earnings boosted group bottom-line despite of declining
local loan demand , overseas F/X loan & fee income growth
maintained its robust double digits path.
Domestic Rate-cut impact: As of end of Sep., Central Bank announced 0.125% rate-cut
resolution due to pressure on TWN GDP, the downward movement
will eventually finalize within 2 quarters with 1-2 bps NIM contraction.
- 2016 Outlook: Shortened and fast-track economic cycle becomes the norm of
global trend, rebound is expected domestically in 2016 while overseas
and fees will remain double-digit gearing momentum, as bank solved
capital adequacy problem, opportunities are well in place.
3Q 2015 Financial Highlight
10
3Q 2015 Key Figures
BankingNT$12,013; 99.9%
SecuritiesNT$112; 0.9%
Investment TrustNT$88; 0.7%
OthersNT$(56); -0.4%
InsuranceNT$(30); -0.2%
Key Figures ( in NT$ dollar, NT$ mn, mn shares or %) 3Q15 Net Income Breakdown1( in NT$ mn)
10
AMCNT$(109); -0.9%
Consolidated Net Income1
Comprehensive Income
Total Assets
EPS
Book per share
Capital Stock
ROAE3
ROAA3
Group CAR4
Double Leverage5
* FFHC finalized re-cap. in Sep., 2015.1. Based on the classification of specific company’s business units, financial information by business segments should be listed individually.
2. Comprehensive Income Statement is required by IFRS.
3. Annualized figures. 4. Preliminary data for CAR.
5. Double Leverage = Equity Investment / Shareholder Equity
3Q15
12,0181
13,155
2,469,655
1.21
16.09
114,611*
9.45%
0.67%
152.66%
105.21%
YoY %
2.7%
2.4%
6.1%
1.7%
-0.2%
23.7%
-11.9%
-1.5%
24.9%
-0.9%
3Q14
11,7051
12,845
2,327,379
1.19
16.12
92,593
10.73%
0.68%
122.27%
106.06%
11
3Q15 Consolidated Net Income & Comprehensive Income (in NT$ mn)
Net Income & Comprehensive Income
3Q14 Consolidated Net Income & Comprehensive Income (in NT$ mn)
Credit (202)Insurance 634
Credit (2,840)Insurance ( 377)
1,139
(1,790)
(15,082)
11,705 12,845
(3,217)31,794
Net Revenue Provision Operating
Expense
Income Tax Net Income Other Items Comprehensive
Income
1,137
(2,371)
(16,189)
12,018 13,155
43230,146
Net Revenue Provision Operating
Expense
Income Tax Net Income Other Items Comprehensive
Income
11,705
249(26)85194
10,936
First Bank First Securities FSITC First-Aviva First AMC FFHC
12
3Q15 FFHC Net Income Breakdown (in NT$ mn)
Net Income Breakdown by Subsidiaries*
3Q14 FFHC Net Income Breakdown (in NT$ mn)
12,018
88112
12,013
(30) (109)
First Bank First Securities FSITC First-Aviva First AMC FFHC
FFHC (13)Aviva (13)
↑9.8%
↑2.7%
* Major 5 subsidiaries were listed.
FFHC (15)Aviva (15)
3Q 2015 Operating Results
2,962
6,144
8,97710,645
3,543
7,527
10,93613,381
4,100
7,896
12,013
3M 13 6M 13 9M 13 2013 3M 14 6M 14 9M 14 2014 3M 15 6M 15 9M 15
1414
Cumulative Net Income
Annualized ROAE
First Bank Net Income & ROAE (in NT$ mn & %)
Cumulative Net Income
1.Minority interests included
FFHC & First Bank Profitability
-After Tax
FFHC Net Income & ROAE (in NT$ mn & %)
2,9706,361
9,29310,877
3,655
8,205
11,70514,078
4,109
8,108
12,018
3M 13 6M 13 9M 13 2013 3M 14 6M 14 9M 14 2014 3M 15 6M 15 9M 15
8.80% 9.48% 9.13%7.94%
10.20%11.42% 10.73%
9.53% 10.52% 10.50% 9.45%
9.44% 9.84% 9.49% 8.35%10.60% 11.10% 10.60% 9.40% 10.56% 10.32% 9.60%
Annualized ROAE
28,35228,245
3Q14 3Q15
15
3Q14 3Q15 3Q14 3Q15 3Q14 3Q15 3Q14 3Q15 3Q14 3Q15 3Q14 3Q15
Cumulative Net Revenue
3Q15 Cumulative Net Revenue (in NT$ mn or %) % of FB Net Revenue (in %)
↓32.8%
z
Item 3Q14 3Q15 Change
NII 71.7% 72.2% +0.5%
Net Fee 16.4% 18.5% +2.1%
Gain on ST Invest. 0.4% -0.1% -0.5%
Gain on LT invest. 2.3% 1.4% -0.9%
Gain on fin. Products 9.0% 7.1% -1.9%
Others 0.2% 0.9% +0.7%
Total Revenue 100.0% 100.0%
Provision Expense1 -16.4% -6.5% -9.9%
Adjustment :Recovery +6.8% +5.9% -0.9%
Operating Expense -45.4% -48.7% +3.3%
Income Before Tax 45.0% 50.7% +5.7%
Net Interest Income
20,239
4,636 3,309 4,637
12,820
20,466
5,2382,375 1,831
13,826
1,909 1,666
Net Fee IncomeGains on
investmentProvision Exp.1 Recovery Operating Exp.
1. Gross Provision Expense.
FB Revenue/Expense Comparison (in NT$ mn
)↑1.1%
↑13.0%↓12.7%
↓ 60.5%↓ 28.2%
FB 3Q15 Pre-tax Profit
+0.4%
↑7.8%
391.1
19.6 41.9
390.6
22.7 27.0
336.5
704.9
330.9
688.4
16
3Q14 3Q15 3Q14 3Q15 3Q14 3Q15 3Q14 3Q15 3Q14 3Q15
↓0.1%↑ F/X1.7%
↓35.6%
FB 3Q15 Loan Book Mix3Q15 Loan Book1 (in NT$ bn or %)
3Q15 Loan Book1 Breakdown (in NT$ bn )
Mortgage Other Consumer
LoanGov./SOE Loan Commercial
LoanF/X Loan
1. Loan Book does not include NALs2. SME as defined by the “Act for Development of Small & Medium Enterprises; both NTD & Foreign currency loan included
1,488.4
1,465.1
3Q14 3Q15
Loan Book1
-1.6%
Item 3Q14 3Q15 Change
Consumer 27.6% 28.2% +0.6%
Mortgage 26.3% 26.7% +0.4%
Other Consumer Loan 1.3% 1.5% +0.2%
Corporate Banking 72.4% 71.8% -0.6%
Commercial Loan 47.4% 47.0% -0.4%
--- SME 38.4% 39.6% +1.2%
F/X/ Loan 22.2% 23.0% +0.8%
--- Overseas 10.4% 12.0% +1.6%
Gov./SOE Loan 2.8% 1.8% -1.0%
Loan Book1 100.0% 100.0%
% of Loan Book1
SME2
571.9SME2
580.4 Overseas
154.8
SME↑1.5%
Overseas
175.5
Overseas
↑ 13.4%
↑ 15.8%
↓2.3%
1717
46.3 41.9 38.5 37.8 10.7 26.9
317.5 330.9 334.9 319.1 319.9 336.5
562.7 571.9 585.5 568.5 573.8580.4
130.0 133.0 132118.4 113.4
108.018.5 19.6 21.0
20.8 21.722.7
392.2 391.1 391.5388.5 388.9
390.6
2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
FB Loan Breakdown-QoQ Comparison
Gov/SOE
SME
Mortgage
Commercial
Loan1
FB Loan Growth (in NT$ bn)
1467.2 1488.4 1503.4 1453.0 1428.4 1465.1
F/X loan
Total loan
1.Commercial loan includes SME.
QoQ% YoY%
Other Con.
Loan
Large
+0.4% -0.1%
+4.6%+15.8%
-4.8% -18.8%
+1.2% +1.5%
+5.2% +1.7%
+151.4% -35.7%
1818
Loan-Deposit Spread / NIM ( in % ) NIM3Spread3
1,449.2 1,447.7 1,439.9 1,470.6 1,470.9 1,491.8 1,507.1 1,456.2 1,431.1 1,468.0
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Total Loan & LDR (in NT$ bn or % )
FB 3Q15 LDR, SPREAD &NIM
1. Total Loan = loan + import/export negotiation + NALs2. LDR = Total loan / Total deposit, starting from 2012, total deposit does not include structured deposit.3. Annual cumulative Average Spread and NIM
Total Loan1LDR2
△△
88.29%86.54%
83.50% 84.51% 83.48% 84.49%83.03%
80.21%78.55% 77.94%
1.53% 1.54% 1.55% 1.55% 1.55% 1.55% 1.55%1.60% 1.62%
1.25%1.28%1.29%1.28%1.26% 1.26% 1.26% 1.28%1.28%1.28%
1.61%
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
1919
FB NTD Yields & Costs Overview ( in % ) Interest Spread (NTD)Lending Rate (NTD)
0.59%0.60% 0.60% 0.60% 0.59% 0.59%
2.19%2.18%2.18%2.20%2.16%2.12%
2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
FB FX Yields & Costs Overview ( in % ) Lending Rate (FX)Deposit Rate (FX)
*All rates are QUARTERLY average rates.
Deposit Rate (NTD)
Interest Spread (FX)
FB 3Q15 Loan Yields
1.52%
1.56%
1.60% 1.59% 1.59% 1.60%
1.67%1.59%
1.45%
1.65%1.72%
1.59%
0.72%0.85%0.88%0.84%0.92%0.98%
2.65% 2.51%2.29%
2.52% 2.57%2.31%
2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
1H15
Total Exposures*
$1,563 bn3.38%
8.09%
5.86% 12.92%
11.52%
32.14%
6.48%
3.64%
5.65%
5.27%
5.05%
Petro.
Metal
Tech.
Machinery
Other manufacturing
Individual(Mortgage included)
Construction
Real Estate
Wholesale/Retail
Transportation&Warehousing
Others
Major Exposures Breakdown
End of 3Q15 - % of Loan to Industries
Manufacturing; 26.09%
* Total loan does not includes NALs.
20
(clockwisely)
2121
↑4.3%
↑17.2%SME2
317.0
SME2
305.0
FB 3Q15 Mortgage Book
Mortgage Yield & LTV Ratio (in %)3Q15 Mortgage by Location (in %)
Location 3Q15
North
TPE Metro
70%
54%
Taoyuan/Hsinchu/ Mioli
16%
Central 11%
Taichung
South 15%
Tainan/Kaohsiung
East 4%
Total 100.0%
Monthly New Mortgage Lending
65.74% 65.61% 65.37% 65.25% 65.08% 64.94% 64.81%
47.59% 47.34% 46.94% 46.75% 46.33% 46.12% 45.92%
3M14 6M14 9M14 2014 3M15 6M15 9M15
Loan-to-value ratio of new mortgage Avg. loan-to-value ratio
2.15% 2.15% 2.16% 2.16% 2.16% 2.17% 2.16%
Mortgage Yield
Monthly New Mortgage Lending (in NT$mn)
5,507 5,9754,945
7,0865,645
3,9375,513 5,638 5,749 6,437 6,926
5,441 5,944
9M14 10M14 11M14 12M14 1M15 2M15 3M15 4M15 5M15 6M15 7M15 8M15 9M15
YoY% +7.9%
4,6365,238
3Q14 3Q15
22
↑3.0%
FB 3Q15 Fee Income Breakdown
3Q15 Cumulative Net Fee Income (in NT$ mn or %)
3Q15 Cumulative Net Fee Breakdown ( in NT$ mn )
3Q14 3Q15 3Q14 3Q15 3Q14 3Q15 3Q14 3Q15 3Q14 3Q15
WM Fee 1 Loan-related F/X Credit Card
1. WM Fee = Custodian Fee + Trust-related Fee + Bancassurance Fee 2. Other represents network service fee, including overseas branches
Net Fee Income
Item 3Q14 3Q15 Change
WM1 49.3% 55.5% +6.2%
F/X 15.2% 12.7% -2.5%
Other2 14.0% 11.5% -2.5%
Loan-related 15.2% 14.4% -0.8%
Credit Card 6.3% 5.9% -0.4%
Cumulative Net Fee 100.0% 100.0%
% of Cumulative Net Fee
↓ 23.7%
+13.0%
2
Other 2
↑ 27.1%
↓5.7%
2,288
706 703 648291
754663 310 604
2,907
↑6.5%↓6.8%↑ 6.8%
255331
278306
452492
93
10091
91
9695
232
250
221216
258280243
237214
229220
100
100
95106
10698
197
248
206195
196213
426462 505
408405 439
237
2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
2323
FB Fee Income Breakdown-QoQ Comparison
Loan
Related
Credit Card
Fee Income (in NT$ mn)
F/X
Related
Fee
Income
* Wealth Management Fee = Fund sales + Bancassurance + Custodian*Other represents network service fee, including overseas branches
YoY% +5.9%
Others*
Banca.
QoQ +8.9%
1,5251,705
1,554 1,5901,842 1,806
Mutual Fund
Custodian
Wealth
MGT.*
Bacassurance
3Q15
Fee Income
$5,238 mn
55.50%44.50%Wealth Management
Non-WM
2424
3Q14 FB Fee income breakdown ( in NT$ mn or %)
3Q15 FB Fee income breakdown ( in NT$ mn or %)
3Q15
WM Fee Income
$2,907 mn
Custodian,
9.70%
Mutual Fund,
47.30%
Bancassurance
, 43.00%
3Q14
Fee Income
$4,636 mn
49.35%50.65%Wealth Management
Non-WM
3Q14
WM Fee Income
$2,288 mn
Custodian,
12.11%
Mutual Fund,
53.72%
Bancassurance
, 34.18%
FB Fee Income Breakdown-WM & Non-WM
2525
FB 3Q15 Cost-to-Income Ratio
Quarterly Operating Expense & Cumulated Cost-to-Income Ratio ( in NT$ mn or % )
Operating Expense Cost-to-Income RatioNet Revenue
12,820
13,826
3Q14 3Q15
Operating Expense
Item 3Q14 3Q15
Net Revenue 28,245 28,352
Operating Expense (12,820) (13,826)
Provision(Net) (2,728) 165
Income Tax (1,760) (2,347)
Net Income 10,936 12,013
3Q15 Cumulative Operating Expense (in NT$ mn ) Cost-to-Income Ratio Analysis( in NT$ mn)
+7.8%
* Sales Tax raised around 80mn per month
*Sales Tax raised 3%
9,032 9,256 9,956 9,276 9,202 9,00310,147
4,087 4,232 4,501 4,916 4,404 4,653 4,769
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
45.25% 45.49% 45.39%47.27% 47.86%
49.75% 48.77%
2626
4,152 3,572 3,953 2,951 2,774 2,520 2,596
20,12419,33719,69920,08919,93318,813 18,637
3M14 6M14 9M14 2014 3M15 6M15 9M15
FB 3Q15 Asset Quality
0.18%0.18%0.19%0.20%
0.26%0.24%0.28%
775.31%767.32%710.06%
680.71%
504.28%521.72%
453.05%
NPL Amount, Reserve, Coverage (in NT$ mn or % )
Coverage Ratio
NPL Ratio NPL NPL Reserve
1.40%1.36%1.39%1.37%1.37%1.31%1.34%
LLR ratio (loan loss reserve/total loan,
excluding gov.loan)
Gross Provision Ratio
(loss reserve against performing loan)
1.19% 1.09%1.26% 1.24% 1.26%
1.18% 1.22%
2727
FB NPL Migration by Sectors
Individual1
& Mortgage NPL Ratios(in %) Large Corp. & SME NPL Ratios(in %)
0.26% 0.03% 0.02% 0.00% 0.00%
0.45%0.35% 0.31% 0.31% 0.32%
3Q14 4Q14 1Q15 2Q15 3Q15
Large Corp.
SME
0.19%0.20%0.20%
0.21%
0.30%
3Q14 4Q14 1Q15 2Q15 3Q15
Domestic
Domestic NPL Ratio(in %)
0.08%0.13% 0.14%
0.09% 0.11%
3Q14 4Q14 1Q15 2Q15 3Q15
Overseas NPL Ratio(in %)
1. Individual: mortgage and non-mortgage loan included2. bad-debt recovery not included.
Overseas
0.22%
0.18%0.19%
0.17% 0.17%
0.22%
0.17%0.19%
0.20% 0.19%
3Q14 4Q14 1Q15 2Q15 3Q15
Individual
Mortagge
0.00% 0.00%
0.15%
0.09%
0.00%
0.07%
2828
FB New NPL Influx Breakdown
2,695
1,169770
1,241 1,007719
125183589
1,151830
465 201525
(2,097)
239
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Quarterly New NPL Influx & Write-offs ( in NT$ mn)
Breakdown of New NPL Influx (in NT$ mn)
Write-off New NPL Influx
Quarterly Recovery Mix (in NT$ mn)
QuarterlyNPL Influx
4Q14 1Q15 2Q15 3Q15
--- Domestic 39 426 484 113
--- Overseas 200 404 (19) 88
Total NPL Influx 239 830 465 201
Quarterly Recovery
4Q14 1Q15 2Q15 3Q15
--- Domestic 216 651 484 310
--- Overseas 102 115 57 4
--- Credit Card 14 15 15 15
Total Recovery 332 781 556 329
3Q15
Overseas
$4,914 mn
OBU
Shanghai
Chengdu
Hsiamen
Macau
HK
North America
Asean
Others
Total Pre-Tax
Profit
$14,360 mn
29
FB 3Q15 Overseas Profits
3Q15 FB Overseas Pre-Tax Profit Mix( in NT$ mn or %)
Overseas Cumulative Overseas PTP to FB Total PTPTotal
3Q15 FB Total Pre-Tax Profit Mix ( in NT$ mn or %)
Quarterly Overseas & Total PTP (in NT$ mn or %)
29
45.8%
12.6% 4.2%
9.1%
Taiwan Market;65.8%
Other overseas;12.9%
17.4%
11.2%
Greater China; 21.3%
1.2%
(clockwisely)
1,932 1,910 1,725 1,545 1,829 1,8831,202
4,9334,5544,873
3,1663,967
4,6424,087
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
39.4%34.2%44.8%44.8%44.0%44.0%47.3%
3030
CAR & Core Capital
123.00%117.05%
125.55%119.40%
123.04% 121.24%125.34%
132.75%
152.66%
2H11
1H12
2H12
1H13
2H13
1H14
2H14
1H15
3Q15
*
10.94% 10.44%11.51% 11.03% 10.90% 10.88% 11.50%
12.27%13.68%
8.28% 8.23% 8.41% 8.34% 8.31% 8.64% 9.02% 9.45%11.08%
2H
11
1H
12
2H
12
1H
13
2H
13
1H
14
2H
14
1H
15
3Q
15*
statutory CAR 100%
CAR
CAR
Tier 1
FB CAR & Core Capital(in %)
FFHC Group CAR(in %)
•Leverage ceiling for holding companies in Taiwan: Double Leverage < 125% ; Debt Ratio < 30%•Preliminary data for 3Q15
Re-cap.
Re-cap.
31
Shareholder Return
2009 2010 2011 2012 2013 2014
Cash dividend 0.50 0.30 0.40 0.45 0.50 0.70
Stock dividend 0.25 0.60 0.60 0.65 0.70 0.65
Total dividend 0.75 0.90 1.00 1.10 1.20 1.35
CASH Payout
ratio
113.6% 29.4% 39.6% 38.1% 42.4% 46.1%
1.350.90 1.201.00 1.100.75
1.181.011.02 1.180.44
1.52
2009 2010 2011 2012 2013 2014
FFHC Earnings Per Share ( in NT$ dollar )
EPS
Dividend
FFHC Dividend History ( in NT$ dollar )
1. EPS is adjusted retroactively for stock dividends.
1
Appendix
33
FFHC Consolidated Statement of Comprehensive Income
FFHC Consolidated Statement of Comprehensive Income (in NT$ million or %)
2012 2013 2014 3Q14 3Q15 Change
Interest income 36,544 Net interest income 25,932 28,278 21,110 21,168 0.3%
Less: Interest expenses (12,422) Net service fee & commission 6,632 7,428 5,630 6,277 11.5%
Net interest income 24,122 Net Insurance revenue 688 (6,533) 822 (98) --
Net service fee & commission 5,954 Gain on financial assets meas. 859 1,373 1,423 668 -53.1%
Net Insurance revenue 695 at fair value through P/L
Gain on financial assets measured 1,363 Real estate investment gain 88 172 172 143 -16.9%
at fair value through P/L Gain on AFS financial assets 315 417 628 507 -19.3%
Gain on AFS financial assets 360 Income from equity invest. 97 (26) 53 (661) -1347.2%
Gain on HTM financial assets 0 Net gain on F/X 1,368 2,172 1,184 1,332 12.5%
Income from equity invest. 256 Assets impairment loss 3 (6) 59 5 --
Real estate investment gain 0 Others 484 911 712 805 13.1%
Net gain on F/X 651 Ner Revenue 36,466 34,186 31,794 30,146 -5.2%
Others 3,258 Net Provision for credit losses (4,047) (4,015) (2,840) (202) -92.9%
Net non-interest income 12,537 Recovered(provided) for insurance res. (397) 7,101 (377) 634 --
Net revenues 36,659 Operating Expense (18,973) (20,789) (15,082) (16,189) 7.3%
Provision for credit losses (5,890) Income from continued op. before tax 13,049 16,483 13,496 14,389 6.6%
Reserve for insurance (656) Income tax expenses (2,172) (2,405) (1,790) (2,371) 32.5%
Operating expenses (18,084) Consolidated net income 10,877 14,078 11,705 12,018 2.7%
Other expenses 0 Other Items 1,262 3,420 1,139 1,137 -0.2%
Income from continued op. before tax 12,029 Comprehensive Income 12,139 17,497 12,845 13,155 2.4%
Income tax expenses (1,911) Net Income attributed to:
Income from continued op. after tax 10,118 Parent 10,889 14,085 11,692 12,033 2.9%
Income from discountinued op., net of tax 0 Minority interests (12) (7) 13 (15) --
Cummulative effect of change 0
in accounting principle Comprehensive Income attributed to:
Consolidated net income 10,118 Parent 12,242 17,542 12,864 13,216 2.7%
EPS1(NT$) 1.25 Minority interests (104) (45) (19) (61) 221.1%
Net income attributable to parent 10,174
Minority interests (56) EPS1(NT$) 1.18 1.52 1.19 1.21 1.7%
Note: starting from 2013, data are stated in accordance with IFRSs, whereas FY2011-2012 are with ROC GAAP. The same basis applied to all appendix pages.
TW-GAPP Year-over-Year Comparison Full Year Results (IFRSs)
34
FFHC Non-consolidated Income Statement
FFHC Standalone Income Statement Summary
in NT$ million, NT$, or %
2012 2013 2014 3Q14 3Q15 Change
Operating revenues
Income from long-term investment 10,641 11,112 13,904 11,620 12,267 5.6%
Other income1 252 226 289 255 210 -17.6%
Total revenues 10,893 11,339 14,194 11,875 12,477 5.1%
Loss from long-term investment (291) (12) (8) 0 (125) --
Operating expenses (231) (233) (264) (201) (217) 8.0%
Other expenses and losses (145) (145) (159) (138) (143) 3.6%
Income from continued op. before tax 10,226 10,949 13,763 11,536 11,992 4.0%
Income from continued po. after tax 10,226 10,889 14,085 11,692 12,033 2.9%
Income from discontinued op., net of tax 0 0 0 0 0 --
Net income 10,226 10,889 14,085 11,692 12,033 2.9%
EPS2(NT$) 1.18 1.18 1.52 1.19 1.21 1.7%
1. Including income other than long-term investment
2. EPS is adjusted retroactively for stock dividends
Year-over-Year Comparison Full Year Results
35
FFHC Balance Sheet
FFHC Balance Sheet Summary
in NT$ million or million shares
2012 2013 2014 3Q14 3Q15 Change
Non-consolidated Balance Sheet Data
Long-term investment 137,633 145,469 167,888 158,305 194,009 22.6%
Total non-consolidated assets 141,300 151,546 172,071 162,196 200,869 23.8%
Total liabilities 9,156 10,817 18,126 12,930 16,473 27.4%
Total shareholders' equity 132,144 140,729 153,945 149,266 184,396 23.5%
Conolidated Balance Sheet Data
Total consolidated assets 2,124,279 2,263,385 2,355,709 2,327,379 2,469,655 6.1%
Total liabilities 1,991,555 2,122,179 2,201,332 2,177,655 2,284,888 4.9%
Total shareholders' equity 132,724 141,206 154,377 149,724 184,767 23.4%
Parent's shareholders' equity 132,143 140,729 153,945 149,266 184,396 23.5%
Minority interests 581 477 432 458 371 -19.0%
Current shares outstanding 81,254 86,535 92,593 92,593 114,611 23.8%
*figures may not match due to rounding
Year-over-Year Comparison Full Year Results
36
FFHC Key Ratios
FFHC Key Ratios
2012 2013 2014 3Q14 3Q15 Change
After-tax ROAA (Annualized ratio) 0.48% 0.50% 0.61% 0.68% 0.67% -1.5%
After-tax ROAE (Annualized ratio) 7.86% 7.94% 9.53% 10.73% 9.45% -11.9%
Book Per Share 16.26 16.26 16.63 16.12 16.09 -0.2%
Capital Stock 81,254 86,535 92,593 92,593 114,611 23.8%
Double leverage1
104.15% 103.37% 109.06% 106.06% 105.21% -0.8%
Group CAR2
125.55% 123.04% 125.34% 122.27% 152.66% 24.9%
Debt Ratio3
6.48% 7.14% 10.53% 7.97% 8.20% 2.9%
1. Double leverage ratio = Long-term investment / Equity
2. Updated semi-annually.
3. Non-consolidated basis.
Year-over-Year Comparison Full Year Results
37
FB Income Statement
Subject to final Reviewed
38
FB Key Ratios
39
FB Loan QualityFB NPL Migration
in NT$ million or %
2012 2013 2014 Q1 Q2 Q3 3Q14 3Q15 Change
NPL- beginning 6,373 6,423 6,774 2,951 2,774 2,520 6,774 2,951 -56.4%
Net new NPL influx 3,493 5,341 (118) 830 465 201 (357) 1,496 --
Net write-offs (3,443) (4,990) (3,705) (1,007) (719) (125) (2,464) (1,851) -24.9%
NPL- ending balance 6,423 6,774 2,951 2,774 2,520 2,596 3,953 2,596 -34.3%
Allowance for loan loss- beginning 13,886 15,992 17,730 20,089 19,699 19,337 17,730 20,089 13.3%
Provisions for loan loss 5,705 6,693 5,863 683 320 758 4,608 1,761 -61.8%
Net write-offs (3,443) (4,990) (3,705) (1,007) (719) (125) (2,464) (1,851) -24.9%
Others (156) 35 201 (66) 37 154 59 125 111.9%
Allowance for loan loss- ending 15,992 17,730 20,089 19,699 19,337 20,124 19,933 20,124 1.0%
NPL ratio 0.44% 0.47% 0.20% 0.28% 0.18% 0.18% 0.26% 0.18% -0.1%
Coverage ratio 248.97% 261.73% 680.71% 453.05% 767.32% 775.31% 504.28% 775.31% 271.0%
General Provision Ratio 1.17% 1.26% 1.37% 1.34% 1.36% 1.40% 1.37% 1.40% 0.0%
Tier 1 Asset Provision Ratio -- 1.09% 1.24% 1.20% 1.18% 1.22% 1.26% 1.22% 0.0%
1. Non-consolidated basis
Year-over-Year Comparison 2015 QuarterlyFull Year Results
40
First Sec. Operating Report
41
FSITC Operating Report
42
First–Aviva Operating Report
CSR AwardsBritish Standards Institution (BSI)
Both Chinese and English version CSR Report 2014 were ratified GRI’s G4 index.
Securities & Futures Institute (SFI)
Top grade of A++ on “12th Listed and OTC-listed Companies Information Disclosure”.
CommonWealth Magazine
Ranked #9 as “Excellence in Corporate Social Responsibility 2015” by CommonWealth Magazine among large enterprises.
Taiwan Stock Exchange Corporation
One of the top 5% Listed Companies for corporate governance in 2014.
Environmental Protection Administration, Executive Yuan
Ranked as a superb corporate by the “3rd National Environmental Education Award”.
Global Views Monthly
Honored CSR award as “Environmentally Friendly” by Global Views Monthly in 2015.
43
Taiwan Corporate Sustainability Awards
Received “Gold Award”, “Transparency and Integrity Award” and
“Climate Leadership Award” at the Taiwan Top 50 Corporate Sustainability Report Awards from the Taiwan Institute for Sustainable Energy.
Q&A