Fubon Third Quarter 2009 Overvie Q3_Full.pdf · 10,170 4,642 1,684 1,433 1,796 1,928 517 4,134...

Fubon Third Quarter 2009 Overview

2009.11.02

1

Disclaimer

This meeting may contain forward-looking statements with respect to the financial

condition, results of operations and business of the company. These forward-looking

statements represent the company’s expectations or beliefs concerning future events

and involve known and unknown risks and uncertainty that could cause actual

results, performance or events to differ materially from those expressed. Certain

statements, such as those that include the words “potential”, “estimated”, and similar

expressions or variations on such expressions may be considered “forward-looking

statements”.

2

Agenda

Performance highlights of the group

Performance review of banking business

Performance review of insurance business

Update on CDO exposure

3

Financial highlight

Net profits of NT$14,710m for the first nine months of 2009 represents 45% yoy

Opportunities arising

Key earning drivers

year to September

• Contribution from investment and dividend income

• Recurring business show sequential improvement

• Loan growth

• Wealth management

• Insurance premium

• Credit cycle remain benign

• Recovery of mark-to-market asset value

• Stabilization of net interest margin in Taipei Fubon Bank

• Management of investment spread in Fubon Life

• Growth opportunities in greater China

4

10,170

4,642

1,6841,433

1,7961,928

517

4,134

6,951

14,710

Fubon FHC TPFB P&C Life Sec

9M08 9M09

Fubon Financial – net income overview

NT$ m

Note: 75% of Fubon Bank (HK) earning is accounted in this page.Antai’s net profit is accounted from 11 Feb, 2009

Net income as of Sep,2009 =NT$14,710m

NT$ m

Net income-Subsidiary comparison

P&C,

NT$517,

4%

Life,

NT$6,951,

47%

Sec,

NT$1,928,

13%

Others,

NT$1,180,

8%TPFB,

NT$4,134,

28%

5

Fubon Financial – Return on assets and return on equity

Return on assets Return on equity

* Note: Annualized basis

0.67%

0.50%

0.82%

0.57%

0.79%

2005 2006 2007 2008 Sep-09

6.8%

5.3%

8.8%

7.0%

11.3%

2005 2006 2007 2008 Sep-09＊＊

6

Fubon Financial – Per share calculations

Book value per share (NT$) EPS (NT$)

1.39

1.09

1.87

1.41

1.81

2005 2006 2007 2008 Sep-09

20.1621.19 21.47

18.62

24.88

2005 2006 2007 2008 Sep-09

7

Balance

Sep 09

Available-for-sale movement in shareholder equity

Fubon FHC (9M09)

NT$ m

Movement by subsidiaries (9M09)

NT$ m

8

Balance

Dec 08

Changed in

1Q09

Changed in

2Q09

Changed

in3Q09

(NT$18,316)

+NT3,062

+NT9,398

+NT23,228 NT17,372

NT$680

NT$1,089

NT$1,055

NT$3,339

NT$29,526

NT$35,687

FHC Life P&C Sec TPFB Others

Sec, NT$50

, 2%PC, NT$67

, 2%

AM, NT$1

, 0%

Life, NT$1,261

, 42%

FBHK, NT$264

, 9%

TPFB, NT$1,331

, 45%

TPFB

FBHK

Life

PC

Sec

AM

Assets breakdown by subsidiaries

Total assets=NT$2,972.4 billion(30 Sep, 2009)

NT$bn

Note: Pie charts & statistics represent breakdown of six major subsidiaries.

9

Fubon Financial – Profit breakdown by business groups

Pretax profit by business groups (9M09) Pretax profit- Business group

Wealth

Mgmt,

NT$66 , 0%

Insurance,

NT$8,575 ,

53%

Inv Mgmt,

NT$634 ,

4%

Consumer

Fin,

NT$1,630 ,

10%

Corp & Inv

Bk,

NT$3,301 ,

20%

Fin Mkt,

NT$2,124 ,

13%

886

-358

1,241

756

1,071

480 482

989

-58Fin Mkt Wealth Mgmt Corp & Inv Bk

1Q09 2Q09 3Q09

496 391

6,077

296166

463172

2,035

743

Insurance Inv Mgmt Consumer Fin

10

Agenda





11

94.8 78128.8 123.1 142.1

395.4 401.8

389.2 390.9

226.4 238.1

246.3 258.1 271.2

380.6

20.9 22.521.5

22.5 21.78.7

8.9

9.510

8.715.4 14.6

13.111.712.3

Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

Credit CardRevolving

Consumer -unsecured

Consumer - secured

Mortgage

Corporate

Government

Taipei Fubon Bank – Loan breakdown

Note: (1) Overdue loans not included.

(2) Cash Card loans are under unsecured consumer portfolio. Outstanding balance NT$104m as of Sep 2009.

815.7807.6764.5 836.0762.9 YTD+ 9.4%

(YTD+82.2%)

(YTD+13.9%)

(YTD- 5.3%)

Total loans (1) (NT$bn)

12

83.8%79.9% 81.5% 81.6% 80.7%


Taipei Fubon Bank-Loan & Deposit

Loan growth YoY

Deposit growth YoY

Fubon’s Loan/ Deposit ratio

-1.5%

3.5%

8.5%

13.5%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

Industry Fubon

9.96%

-1.13%

0.0%

5.0%

10.0%

15.0%

20.0%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

Industry Fubon

11.52%

10.28%

13

28% 32% 36%41%

72% 68% 64%59%

4Q08 1Q09 2Q09 3Q09

Lower cost Higher cost

41% 42% 44% 46%

59% 58% 56% 54%

4Q08 1Q09 2Q09 3Q09

Lower cost Higher cost

795 817 859

Deposit base continues to grow and the mix improving

Averaged NTD deposits mix Averaged USD deposits mix

NT$bn NT$bn175 181 172878 164

14

1.54%

3.28% 3.15%

2.12%

1.66%

0.68%0.78%

1.03%

1.67%1.78%

0.89%0.90%1.12%1.54%1.58%

3Q08 4Q08 1Q09 2Q09 3Q09

Avg rate of IEA

Avg rate of IBL

NIM

1.64%

3.67%3.47%

1.83%1.92%

2.34%

2.11%

3.23%3.40%

1.72%1.68% 1.59%

0.65%

1.01%

0.76%

3Q08 4Q08 1Q09 2Q09 3Q09

Loan rate (incl.Credit cards)

Loan rate

Deposit rate

Taipei Fubon Bank – Interest yields overview

15

Taipei Fubon Bank – Interest & fee Income

4,587 4,420

3,2272,731

1,295

785

1,300

2,732

894

1,082

3Q08 4Q08 1Q09 2Q09 3Q09

Net Fee Income

Net Interest Income

Net Fee/Major Incomes

Major Incomes

22.0%

5,882

15.1%

5,205

21.7%

4,121

28.4%

3,813

32.2%

4,032

Note: Fees booked under insurance agency subsidiaries are excluded.

NT$ m

16

702

410554

696

947

237

214

189

210

198

375

312

313

310

374163

53

118

123

125

3Q08 4Q08 1Q09 2Q09 3Q09

Other

Corporate banking

Credit card

Wealth management

Taipei Fubon Bank – Net fee income breakdown

Note: Including fees booked at insurance agency subsidiaries. Wealth management fee is defined as fee income from sales of funds & insurance products.

57.6%52.0%47.2%41.5%47.6%

WM fee as % of total banking fee

NT$ m

17

11,02216,075 14,189

17,891 16,287

6,128368 1,746

2,9972,240

7,179 9,1616,812

5,742

6,913 5,75513,856

22,58034,411

7 96

337

256

123

3,871

3Q08 4Q08 1Q09 2Q09 3Q09

Others

Overseas Funds

Domestic Funds

Structured Notes & Deposits

Insurance Premium

Taipei Fubon Bank – Wealth management business

947696554410702

Total Wealth Management Fess (NT$MN)

31,249 31,455

36,940

Note: Others represents collective investment trust funds

Wealth Management Sales Breakdown

NT$ m

49,466

56,932

18

Provision for structured notes sales in Taipei Fubon

Provision for potential compensation with individual investors

Potential compensation commitment with individual investors

271Total reserve

(149)minus: claims year to Sept 2009

300Provision made in June 09

120Provision made in year 2008

1,032Total

(960)minus: settled amount

697Other outstanding disputes from non-Lehman products

1,295Sales of Lehman structured note

19

81.3%

73.6%

76.9% 75.9%

80.3%


Taipei Fubon Bank – Quality of loan book

*Note: Credit card revolving balance is included.

Provision & Recovery *

0.72%0.79% 0.73%

0.66% 0.65%


NPL ratio

Coverage ratio

Provision as of average loans*

0.38%

(390)

5,532

434

(1,587)

762

2Q09

0.43%

(229)

5,303

438

(1,307)

855

3Q09

4231,2641,164Recovery

5,9225,8266,618Reserve

96(792)(1,875)Reserve

Movement

0.40%0.76%1.53%Annualized Credit cost

(1,129)(7,602)(13,342)Write-Off

8025,54710,302Provision

1Q0920082007(NT$ m)

20

Corporate loan quality update (1)

New NPL formation of Corp loans

NT $m

0

200

400

600

800

1,000

1,200

1,400

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

21

Source of new NPL formation ：

� 85% of the new NPL formation in Q309 came from LA branch in US

� To comply with a more stringent provisioning requirement from Fed

US exposure of Taipei Fubon Bank ：

� Only one branch in LA

� Loan outstanding of LA branch represents 2.6% of the bank’s loan

Corporate loan quality update (2)

90 days overdue ratio of SME

2.52%

3.88%

0.00%

2.00%

4.00%

6.00%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

22

90 days overdue ratio of large corporate

0.60%

0.42%

0.00%

0.20%

0.40%

0.60%

0.80%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09

NPL ratio and coverage of corporate loans

1.1%

1.7%

54.3%

47.3%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

Mar-07'

Jun-07'

Sep-07'

Dec-07'

Mar-08'

Jun-08'

Sep-08'

Dec-08'

Mar-09'

Jun-09'

Sep-09'

30%

40%

50%

60%

70%

80%

NPL ratio Coverage ratio

Mortgage quality: NPL amount and NPL ratio

Overdue 30+ days loans Overdue 90 day+ loans

Overdue ratio: 30+ day Overdue ratio: 90+ days

NT$ m NT$ m

-

300

600

900

1,200

1,500

1,800

Jun-08' Sep-08' Dec-08' Mar-09' Jun-09' Sep-09'

-

300

600

900

1,200

1,500

1,800


0.36%

0.76%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%


0.62%

0.31%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%


23

Recovery/Repay

ment, NT$2.89 ,

25.1%

Performing

loans, NT$3.32 ,

28.8%

M1 and above

NT$0.2 ,

1.6%Write-offs,

NT$5.13 , 44.5%

On B/S as of 3Q09

Consumer restructured loan update

Restructured loan in Year 2006Total=NT$11.5bn

Re-default trend (M1+ and write-offs)

7.2%5.2% 4.7% 4.2% 2.9% 1.9% 1.6%

37.4% 38.8% 39.7% 40.6% 42.7% 44.1% 44.5%

Sep-08 Oct-08 Nov-08 Dec-08 Mar-09 Jun-09 Sep-09

M1 and above Write-Offs

46.0%44.6% 44.0% 44.4% 44.8% 45.6%

Note: M1+ refers to loans past due 30 days or above

46.1%

24

Consumer debt clearance update

Application by loan type

8871,116

1,3351,502

92

100

71

196

625

762

892

816

Dec-08 Mar-09 Jun-09 Sep-09

Write offs NPLS Current

Quarterly influx of application

No. of cases

1,604

1,978

NT$ m

2,298

4,244 4,337

3,7273,559

2,735

3Q08 4Q08 1Q09 2Q09 3Q09

2,514

25

Agenda





26

2,451 2,460 2,567 2,393 2,481

1,041 1,011

1,525

963 767

475 360

473

424 444

238223

388

232 243

1,0051,031

1,107

1,078 1,076

3Q08 4Q08 1Q09 2Q09 3Q09

Others

Engineering

Marine

Fire

Auto

Fubon Insurance – operating snapshot

Direct written premium breakdown Net combined ratio

NT $m

5,210 5,085

6,060

46.3% 45.0%40.7%

49.9%55.9%

34.0%

33.4%46.9%

36.1%

32.8%

3Q08 4Q08 1Q09 2Q09 3Q09

Net Claim Ratio Net Expense Ratio

Note: Reinsurance premiums are excluded

80.3%5,090

91.8%

76.8%

82.7%

89.3%

27

5,011

32,030

14,087

23,008 62,287

13,013

44,102

47,860

18,606

4,538

2,327

9M 08 9M 09

Fubon Life- FYP breakdown by products

36,962 56,03445,032

FYP breakdown by products

NT $m

Note: data before the merger of Fubon and Antai is on a pro-forma basis

28

35%17%

138,027123,832

9,3562,934 1,797

20,720

11,625

29,9425,140

6,666

15,472

15,974

1,207

12,656

1,654

1,791

1,093

1Q09 2Q09 3Q09

Health, Accidents and others

Traditional Life

Investment-Linked

Interest-Sensitive Annuity

Interest-Sensitive Life

14%5%

10%21%

35%

7%

40%

68%

9M 08 9M 09

Traditional Life

Investment-Linked

Interest-SensitiveAnnuity

Interest-Sensitive Life

FYP breakdown as of Sep 2009

Fubon Life- breakdown by products

APE* breakdown as of Sep 2009

*Note : APE is the abbreviation of annual premium equivalent .

26%

10%

19%45%

39%9%

17%

35%

9M 08 9M 09

29

FYP breakdown as of Sep 2009

Others

11%Tied Agents

16%

Fubon Life- breakdown by channels

APE* breakdown as of Sep 2009

Others

12%

Tied Agents

38%

*Note : APE is the abbreviation of annual premium equivalent .

Bancassurance-TPFB34%

Bancassurance-TPFB20%

Bancassurance-External

39%

Bancassurance-External

30%

30

Investment portfolio

31

5.3%31.6%336.426.2%234.8Overseas

-5.3%68.4%729.373.8%659.8Domestic

-100.0%1,065.7100.0%894.6Total Investments

2.1%5.0%53.82.9%26.3Real Estate

-0.6%3.9%41.34.5%40.2Policy Loans

-1.3%3.7%39.85.0%44.6Mortgage Loans

0.1%0.3%3.00.2%1.9Equity- Overseas

2.9%9.1%97.26.2%55.5Equity- Domestic

5.3%31.3%333.426.0%232.9Fixed Income- Overseas

-7.2%43.0%458.050.2%448.9Fixed Income- Domestic

-1.3%3.7%39.24.9%44.2Deposit and Cash equivalents

Weighting Change

%Amount%Amount（NT$bn）

2009/9/302008/12/31

Breakdown of fixed income investment

Domestic Fixed Income Portfolio Oversea Fixed Income Portfolio

Gov Bond &

T-Bills

74%

Bank notes

14%

Corp bonds

8%

Bond Funds

3%Others

1%

CDO

2%

Corp

bonds

15%

Others

1%Gov Bonds

& T-Bills

18%

Bank notes

42%

Agency

CMO/MBS

22%

32

USD

unhedged

6%

Fully

Hedged

85%

Basket

Hedge

7%

Other

currencies

2%

Hedging cost and composition

138bps

-0.463

1H 2009

-194bps

-132bps

-0.44

-0.94

2Q 2009

114bps

-0.379

9M 2009

-89bps

-87bps

-0.02

-0.72

3Q 2009

155bpsImplied hedging cost- on shore

-0.526TWD/USD swap points-on shore

1Q 2009Reference:

3bpsHedging cost after FX gain/loss

-153bpsHedging cost

0.99FX gain (loss) (NT$bn)

-0.97 Hedging cost (NT$bn)

1Q 2009Fubon LifeComposition as of 30 Sep

33

Cost of liability & Investment return

Cost of liability and investment return Cost* of liability on new money

4.95% 4.88%4.71%

3.98%

3.12%

3.62%

Mar-09 Jun-09 Sep-09

Cost of liability Investment return

2.00%

2.20%

2.40%

2.60%

2.80%

3.00%

3.20%

3.40%

Dec-08 Mar-09 Jun-09 Sep-09

2.19%

2.59%

*Note: The cost is based on 12 months moving average

34

2.78%

3.27%

Agenda





35

Details of CDO and SIV exposure

8,155Total

5Fubon Bank HK

SIV

2.9%0.0%0.0%73.9%23.1%0%8,150Subtotal

100.0%0.0%0.0%0.0%0.0%0%50Fubon Bank HK

0Taipei Fubon Bank

10.8%0.0%0.0%40.9%48.2%0%668Fubon P&C

1.6%0.0%0.0%77.4%21.0%0%7,432Fubon Life

CDO

B or below

BBBBBAAAAAA

Credit rating distribution (%)

Net amount

NT$ m

36

Update of CDO-related write down

8,14113,7165,5752,0532,623195703Total (75% of Fubon HK)

8,15514,2946,1392,3822,861195701Total

51,3441,33996137800Fubon Bank HK

031531517414100Taipei Fubon Bank

SIV：：：：

50966916352575-2-9Fubon Bank HK

6681,30864105170123Fubon P&C

7,4329,4301,99801,214197587Fubon Life

Corporate CDO：：：：

0206206206000Fubon Life

07257256883700Taipei Fubon Bank

Subprime CDO：：：：

Cumulative200720081H093Q09

Nominal net amount

Nominal gross amount

Impairment Losses through P&LNT$ m

37

Thank you

38

(NT$ million) TPFB P/C Fubon Life Sec AM FHC Combined

Revenues

Insurance premiums 0 11,500 199,492 0 0 0 210,992

Commissions and fees 3,276 0 1,179 3,233 297 0 7,984

Loan interest 10,872 0 0 609 0 0 11,481

Other interest and dividends 5,449 1,473 23,869 611 2 182 31,587

Principal transactions 3,285 (1,044) 2,153 720 9 575 5,698

Realized gains (losses) -- Debt 572 43 1,765 74 0 0 2,454

Realized gains (losses) -- Equity (550) 242 3,148 261 0 0 3,102

Other gains (losses) 2,731 (111) 4,069 (0) 0 591 7,280

Unrealized losses, net recovery (provision) 532 (1,218) (6,830) 385 9 (16) (7,138)

Other income 656 (1) 1,249 298 0 14,675 3,335

Total revenues 23,538 11,929 227,942 5,471 308 15,432 271,077

Interest expense (7,267) (7) (27) (31) 0 (692) (8,024)

Total revenues, net of interest expense 16,271 11,922 227,915 5,441 308 14,740 263,054

0 0 0 0 0 0 0

Benefits, claims, and credit losses 0 0 0 0 0 0 0

Provisions for benefits and claims 0 (5,611) (204,375) 0 0 0 (209,987)

Provision for credit losses (2,420) 3 0 0 0 0 (2,417)

Total benefits, claims and credit losses (2,420) (5,608) (204,375) 0 0 0 (212,403)

0

Operating expenses (8,864) (4,953) (16,663) (3,205) (250) (364) (34,299)

Net operating profit 4,987 1,361 6,877 2,236 58 14,376 16,351

Net non-operating income (114) 36 161 (36) (26) 6 28

Pretax income 4,873 1,396 7,038 2,200 32 14,382 16,379

Income taxes (740) (880) (87) (272) (18) 328 (1,669)

Accumulative effect of accounting changes 0 0 0 0 0 0 0

Net income 4,134 516 6,951 1,928 14 14,710 14,710

Memo:

- Commissions and fees: net of fee expenses for banks and insurers.

-

- Other gains (losses): FX and derivatives gains/losses.

- Other income: mainly income recognized under equity method for TPFB bank and FHC.

- Operating expenses: including provision for special reserves

- Antai's net profit is accounted from 11, Feb 2009

Fubon Financial -- Income statement (preliminary)

Other interest: including interest for credit card revolving, interbank lending & bonds, and gains from money market paper. For insurance companies,

cash dividends and rental income are also included.

Attachment1

Fubon Financial - Financial summary

QoQ

2005 2006 2007 2008 9M 2008 9M 2009 Change 1Q 2Q 3Q Change

Income Statement Data

Revenues :

Insurance premiums 84,157 73,793 78,091 145,874 96,317 210,992 119.1% 63,737 57,617 89,638 55.6%

Net commissions and fees 9,586 10,784 15,409 10,303 8,888 7,984 -10.2% 1,706 2,957 3,322 12.3%

Interest and dividends 45,790 54,278 52,021 53,962 41,411 43,068 4.0% 11,432 13,408 18,228 36.0%

Principal transactions 5,839 4,733 5,491 354 997 5,698 471.8% 1,653 2,663 1,382 -48.1%

Others * 944 2,666 3,194 2,231 2,549 3,335 30.8% 1,251 559 1,525 172.7%

Total revenues 146,315 146,255 154,206 212,724 150,162 271,077 80.5% 79,778 77,204 114,095 47.8%

Interest expense 17,934 24,803 21,088 20,567 16,048 8,024 -50.0% 3,086 2,525 2,413 -4.4%

Total revenues, net of interest expense 128,382 121,452 133,118 192,157 134,114 263,054 96.1% 76,692 74,680 111,682 49.5%

Benefits, claims and provision for loan losses 92,367 86,444 84,325 148,260 97,771 212,403 117.2% 63,521 58,638 90,244 53.9%

Total operating expenses 24,941 26,045 30,959 31,911 23,794 34,299 44.2% 10,516 11,438 12,345 7.9%

Net non-operating income 885 643 (1,144) (232) -657 28 104.2% 159 (382) 251 165.6%

Income before Tax 11,958 9,606 16,689 11,754 11,893 16,379 37.7% 2,814 4,222 9,343 121.3%

Net Income 10,641 8,400 14,432 10,875 10,170 14,710 44.6% 2,436 3,777 8,496 124.9%

Balance Sheet Data

Total assets 1,654,073 1,724,453 1,803,936 2,006,720 1,934,829 2,972,358 53.6% 2,729,308 2,813,193 2,972,358 5.7%

Shareholders' equity 155,604 163,532 165,728 143,715 148,305 202,144 36.3% 158,549 171,031 202,144 18.2%

Summary ratios

Double leverage 108% 102% 102% 111% 103% 109% 114% 110% 109%

Equity / Assets 9.4% 9.5% 9.2% 7.2% 7.6% 6.8% 5.8% 6.1% 6.8%

Return on average assets 0.67% 0.50% 0.82% 0.57% 0.74% 0.79% 0.41% 0.55% 1.17%

Return on average equity 6.81% 5.26% 8.77% 7.03% 8.82% 11.34% 6.45% 9.17% 18.21%

Dividend per share NT$1.15 NT$1.00 NT$1.50 NT$0.00

Note: "Others": reflects income recognized for subsidiaries & elimination for consolidation purpose .

NT$ millions, except for percentagesFull Year 2009Comparison of 9M Results

Attachment2

Taipei Fubon Bank - Financial summary

QoQ


Income statement data

Interest income 34,577 41,585 37,041 37,755 28,962 15,957 -44.9% 6,079 4,991 4,888 -2.1%

Interest expense 16,645 23,293 19,859 19,780 15,407 7,267 -52.8% 2,852 2,260 2,156 -4.6%

Net interest income 17,932 18,292 17,181 17,975 13,555 8,690 -35.9% 3,227 2,731 2,732 0.0%

Net fee income 5,231 5,731 7,268 5,331 4,546 3,276 -27.9% 894 1,082 1,300 20.2%

Other income 4,291 1,540 2,799 2,269 1,348 4,305 219.4% 1,520 1,150 1,635 42.2%

Total revenue 27,454 25,563 27,249 25,576 19,448 16,271 -16.3% 5,641 4,962 5,667 14.2%

SG&A expense 10,859 11,648 12,389 12,677 9,475 8,864 -6.5% 2,971 2,932 2,961 1.0%

Provision for credit losses 11,441 15,034 10,302 5,512 3,839 2,420 -37.0% 802 762 855 12.2%

Net non-operating income 127 210 (509) 441 (102) (114) -11.0% 102 (206) (10) 95.4%

Income before tax 5,280 (909) 4,048 7,829 6,031 4,873 -19.2% 1,970 1,062 1,841 73.4%

Net income 5,034 440 3,354 6,021 4,642 4,134 -11.0% 1,756 898 1,479 64.7%

Balance sheet data

Gross loans 558,233 618,406 662,359 758,269 756,511 831,888 10.0% 802,227 810,747 831,888 2.6%

Credit card revolving loans 26,902 21,920 17,774 14,639 15,437 11,687 -24.3% 13,061 12,306 11,687 -5.0%

NPL (incl. Loans under surveillances) 13,489 12,003 7,885 6,013 5,435 5,375 -1.1% 5,873 5,342 5,375 0.6%

Allowance for loan losses 8,902 7,663 5,308 4,422 4,416 4,078 -7.7% 4,518 4,288 4,078 -4.9%

Total assets 995,120 1,085,028 1,099,741 1,228,059 1,213,923 1,331,374 9.7% 1,235,805 1,278,186 1,331,374 4.2%

Deposits 733,548 802,964 816,152 967,533 937,375 1,045,345 11.5% 1,000,515 1,009,314 1,045,345 3.6%


Summary ratios

Loan-to-Deposit spread (incl. credit cards) 3.10% 2.59% 2.13% 2.02% 2.02% 1.22% 1.33% 1.16% 1.18%

Loan-to-Deposit spread 2.46% 1.96% 1.80% 1.75% 1.79% 1.02% 1.10% 0.96% 0.99%

Net interest margin 2.01% 1.90% 1.66% 1.61% 1.62% 0.97% 1.12% 0.90% 0.89%

Net fee income / Total revenue 19.1% 22.4% 26.7% 20.8% 23.4% 20.1% 15.9% 21.8% 22.9%

Cost-to-Income ratio 39.6% 45.6% 45.5% 49.6% 48.7% 54.5% 52.7% 59.1% 52.3%



NPLs / Gross loans 2.42% 1.94% 1.19% 0.79% 0.72% 0.65% 0.73% 0.66% 0.65%

Allowance / Gross loans 1.6% 1.2% 0.8% 0.6% 0.6% 0.5% 0.6% 0.5% 0.5%

Allowance / NPLs 66.0% 63.8% 67.3% 73.6% 81.3% 75.9% 76.9% 80.3% 75.9%

Equity / Assets 7.5% 6.7% 6.8% 6.5% 6.4% 6.0% 6.6% 6.1% 6.0%

Gross loan to deposit ratio (incl. credit cards) 79.8% 79.7% 83.3% 79.9% 82.4% 80.7% 81.5% 81.5% 80.7%

Gross loan to deposit ratio 76.1% 77.0% 81.2% 78.4% 80.7% 79.6% 80.2% 80.3% 79.6%

Note: -

2009NT$ millions, except for percentages

Comparison of 9M ResultsFull Year

Attachment 3

Taipei Fubon Bank - Fee income breakdown & credit card statistics

Net Fee Income Breakdown

(NT$ m)

FX 353 4.4% 88 4.2% 88 5.1% 89 6.0% 79 8.0% 64 5.5% 75 5.6% 78 4.8%Agency 119 1.5% 29 1.4% 30 1.7% 32 2.2% 27 2.7% 18 1.5% 20 1.5% 21 1.3%Funds - custody 425 5.3% 86 4.1% 104 6.0% 107 7.2% 80 8.1% 126 10.8% 110 8.2% 128 7.8%Funds - sales 5,135 63.8% 1,142 54.6% 717 41.1% 520 35.2% 206 20.8% 274 23.4% 439 32.8% 603 36.7%Credit card 232 2.9% 121 5.8% 199 11.4% 237 16.0% 214 21.6% 189 16.1% 210 15.7% 198 12.1%Guarantee 226 2.8% 57 2.7% 59 3.4% 59 4.0% 60 6.1% 59 5.0% 57 4.2% 55 3.3%Lottery 0 0.0% 0 0.0% 1 0.0% 65 4.4% -46 -4.7% 10 0.8% 13 1.0% 14 0.8%Syndication 545 6.8% 139 6.6% 210 12.0% 89 6.0% 66 6.6% 46 3.9% 48 3.6% 92 5.6%Other 233 2.9% 96 4.6% 85 4.9% 98 6.6% 100 10.1% 108 9.2% 110 8.2% 111 6.7%Insurance * 780 9.7% 335 16.0% 249 14.3% 182 12.3% 204 20.6% 279 23.8% 257 19.2% 344 20.9%Total net fee income 8,048 100.0% 2,093 100.0% 1,742 100.0% 1,476 100.0% 990 100.0% 1,174 100.0% 1,339 100.0% 1,644 100.0%Of which, Wealth management 5,915 73.5% 1,477 70.6% 966 55.4% 702 47.6% 410 41.4% 554 47.2% 696 52.0% 947 57.6%* Booked at subsidiaries

* FX,Agency,Funds-custody,Guarantee,Syndication are classified as corporate banking fees and Funds-sales, Insurance are classified as wealth management fees in the presentation.

Credit Card Statistics

Cards in force

Active cards

Outstanding receivables (NT$m)

Outstanding revovling balance (NT$m)

YTD spending (NT$m)

Avg per-card spending per mo. (NT$)

90-day DLQ

30-day DLQ

YTD net charge-off ratio (annualized)

0.72%

2.27%

6.80%

22,129

12,306

43,959

3,442

2Q09

Jun-09

2,084,209

1,421,569

1Q08 2Q08 3Q08 4Q08 1Q09

2007 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09

2007

2,391,390 2,393,287 2,298,246 2,247,809 2,187,774 2,136,223

1,571,312 1,562,986 1,523,744 1,506,626 1,461,751 1,451,462

29,468 27,120 27,246 25,921 24,798 21,686

17,774 16,717 16,057 15,437 14,639 13,061

119,209 27,191 52,853 79,131 103,472 21,281

4,363 3,759 3,716 3,768 3,742 3,306

1.02% 0.89% 0.87% 1.15% 0.89% 0.94%

3.07% 2.98% 2.87% 3.21% 2.99% 3.02%

8.71% 8.81% 7.27%11.35% 9.02% 8.74%

3Q09

Sep-09

1,982,046

1,416,735

0.63%

1.92%

5.49%

22,226

11,687

69,850

3,724

Attachment4

Fubon Insurance - Financial summary

QoQ



Gross written premium 25,453 24,197 23,939 23,130 17,732 17,012 -4.1% 6,385 5,399 5,228 -3.2%

Net written premium 14,935 14,858 15,127 15,588 11,833 11,496 -2.8% 3,975 3,718 3,804 2.3%

Net earned premium 14,507 14,884 14,764 15,566 11,663 11,500 -1.4% 3,885 3,798 3,817 0.5%

Net claims and claims adjustments 8,628 8,108 7,009 7,324 5,569 5,611 0.8% 1,582 1,896 2,134 12.6%

underwriting & operating expense 5,067 5,521 5,778 5,736 3,907 3,922 0.4% 1,402 1,246 1,274 2.2%

Underwriting profit 923 1,243 1,433 1,851 1,637 1,458 -10.9% 722 507 229 -54.8%

Total investment income 2,337 1,948 1,862 1,460 1,198 422 -64.8% 277 (642) 787 N.M

Net non-operating income (369) (365) (651) (820) (675) (484) 28.3% (260) (214) (10) 95.1%

Income before tax 2,892 2,826 2,644 2,490 2,160 1,396 -35.4% 739 (348) 1,006 N.M

Net income 2,504 2,400 2,012 2,045 1,796 516 -71.3% 599 (968) 886 N.M

Balance sheet data

Fixed income assets 25,461 20,629 19,994 20,532 19,938 21,394 7.3% 18,835 18,971 21,394 12.8%

Investment assets 49,093 41,533 43,138 42,780 43,937 46,559 6.0% 41,594 43,178 46,559 7.8%

Total assets 62,805 51,590 54,448 59,047 61,263 67,328 9.9% 61,868 63,019 67,328 6.8%

Reserves for operations and liabilities 22,069 22,699 24,639 34,094 34,626 35,955 3.8% 35,205 35,021 35,955 2.7%

Total liabilities 33,297 29,959 33,209 41,677 43,099 46,101 7.0% 43,780 44,078 46,101 4.6%


Summary ratios

Net claim ratio 59.5% 54.5% 47.5% 47.1% 47.7% 48.8% 40.7% 49.9% 55.9%

Net expense ratio 34.9% 37.1% 39.1% 36.8% 33.5% 34.1% 36.1% 32.8% 33.4%

Net combined ratio 94.4% 91.6% 86.6% 83.9% 81.2% 82.9% 76.8% 82.7% 89.3%

Interest yield on fixed income investment 3.9% 3.3% 3.7% 4.3% 4.4% 3.9% 4.6% 3.9% 3.8%

Total investment return 4.8% 4.3% 4.4% 3.4% 3.7% 1.3% 2.6% -6.1% 7.0%

Solvency margin (NWP / Equity) 50.6% 68.7% 71.2% 89.7% 86.9% 72.2% 87.9% 78.5% 71.7%

Retention ratio 58.7% 61.4% 63.2% 67.4% 66.7% 67.6% 62.3% 68.9% 72.8%

Return on average assets 4.1% 4.2% 3.8% 3.6% 4.1% 1.1% 4.0% -6.2% 5.4%

Return on average equity 8.5% 9.4% 9.4% 10.6% 12.2% 3.6% 13.5% -20.9% 17.6%

Full YearNT$ millions, except for percentages

Comparison of 9M Results 2009

Attachment 5

Fubon Securities - Financial summary

QoQ



Brokerage commissions 2,814 3,721 5,046 3,291 2,808 3,138 11.7% 619 1,323 1,195 -9.6%

Net interest income 995 1,247 1,607 1,344 1,126 732 -35.0% 190 267 276 3.4%

Fee income 233 276 210 165 112 136 21.5% 34 42 60 42.3%

Net principal transactions 1,088 1,808 2,392 261 406 1,176 189.5% 267 226 682 201.5%

Net financial products gains 51 239 (194) 168 199 (0) N.M 1 (17) 17 N.M

Total operating revenue 5,253 7,358 9,167 5,290 4,692 5,193 10.7% 1,122 1,869 2,202 17.9%

Total operating expense 4,277 4,139 4,886 4,194 3,193 3,205 0.4% 882 1,175 1,149 -2.3%

Net non-operating income 358 653 382 253 265 212 -19.9% 75 (10) 147 N.M

Income before tax 1,334 3,871 4,663 1,349 1,763 2,200 24.7% 315 683 1,201 75.9%

Net income 917 2,859 3,923 1,199 1,433 1,928 34.5% 309 536 1,082 101.8%

Balance sheet data

Margin loans 17,720 22,320 26,225 8,510 14,227 16,951 19.1% 10,875 15,154 16,951 11.9%

Total assets 59,827 60,548 63,727 46,390 46,074 49,573 7.6% 39,012 43,385 49,573 14.3%

Current liabilities 26,485 26,618 27,962 13,373 12,657 15,896 25.6% 10,574 13,826 15,896 15.0%

Total liabilities 28,905 27,412 28,827 13,809 13,134 19,015 44.8% 11,015 14,252 19,015 33.4%

Total shareholders' equity 30,922 33,136 34,900 32,581 32,940 30,558 -7.2% 27,997 29,133 30,558 4.9%

Summary ratios

Consolidated data

Total expenses / Total revenues 81.4% 56.3% 53.3% 79.3% 68.1% 61.7% 78.6% 62.9% 52.1%



Margin loans / Total assets 29.6% 36.9% 41.2% 18.3% 30.9% 34.2% 27.9% 34.9% 34.2%

Margin loans / Shareholders' equity 57.3% 67.4% 75.1% 26.1% 43.2% 55.5% 38.8% 52.0% 55.5%

Equity / Total assets 51.7% 54.7% 54.8% 70.2% 71.5% 61.6% 71.8% 67.1% 61.6%

Other Data - Unconsolidated

Revenue / Employee 2.4 3.5 4.5 2.4 2.9 3.2 2.1 3.5 4.1

Commission / Broker 2.2 3.2 4.6 2.7 3.2 3.5 2.1 4.6 3.9

Compensation / Revenue 34% 29% 28% 38% 34% 29% 38% 31% 24%


Full Year Comparison of 9M Results

Attachment 6

Fubon Asset Management - Financial summary

QoQ



Fee and commission income 1,054 707 697 422 352 297 -15.6% 78 101 118 16.8%

Total operating expense 510 416 422 350 (279) 250 N.M 74 89 87 -2.2%

Net non-operating income (315) (588) (683) (657) (586) (15) 97.4% (15) (2) 2 N.M

Income before tax 229 (298) (408) (587) (515) 32 N.M (11) 10 33 230.0%

Net income 104 (393) (478) (366) (535) 14 N.M (7) (5) 26 N.M

Balance sheet data

Total assets 1,627 1,224 1,045 924 777 941 21.2% 891 899 941 4.7%

Shareholders' equity 1,468 1,075 597 865 695 879 26.4% 858 853 879 3.1%

Other data

AUM 187,800 157,400 124,700 94,800 92,100 127,200 38.1% 115,700 121,700 127,200 4.5%

Bond fund 132,600 93,300 49,600 46,200 35,500 53,900 51.8% 64,800 58,400 53,900 -7.7%

Equity 20,100 18,600 24,000 12,200 15,700 25,000 59.2% 13,900 20,400 25,000 22.5%

Others 35,100 45,500 51,100 36,400 40,800 48,300 18.4% 37,000 42,900 48,300 12.6%

Summary ratios

Expense ratio 48.4% 58.9% 60.5% 82.9% -79.3% 84.2% 94.9% 88.1% 73.7%

Return on average assets 6.0% -27.6% -42.1% -37.2% -78.3% 2.0% -3.1% -2.2% 11.3%

Return on average equity 6.7% -30.9% -57.2% -50.1% -110.4% 2.1% -3.3% -2.3% 12.0%


Full Year Comparison of 9M Results

Attachment7

Fubon Life - Financial summary

QoQ

2007 2008 9M 2008 9M 2009 Change 1Q 2Q 3Q Change


First year premium(exclude investment-linked) 51,771 118,337 77,085 125,720 63.1% 43,864 32,210 49,647 54.1%

Total earned premium (net) 153,903 208,517 141,587 208,310 47.1% 68,669 53,819 85,821 59.5%

Total investment income 30,492 24,717 23,702 28,726 21.2% 7,278 9,883 11,565 17.0%

Other income 14,846 10,925 9,120 2,418 -73.5% 1,097 203 1,118 450.4%

Total operating revenue 199,241 244,159 174,408 239,454 37.3% 77,045 63,906 98,504 54.1%

Claim and benefit expense 88,387 92,787 64,997 60,637 -6.7% 17,166 19,027 24,444 28.5%

Net commission expense 11,900 11,567 9,210 8,858 -3.8% 3,142 2,367 3,350 41.5%

Net provision in policy reserve 71,533 125,382 83,565 152,465 82.5% 52,706 36,942 62,817 70.0%

General and administrative expense 12,952 12,194 9,018 8,211 -9.0% 2,565 2,794 2,852 2.1%

Total operating expense 185,236 242,236 167,100 231,292 38.4% 76,004 61,634 93,654 52.0%

Net non-operating income (27) 139 119 148 23.9% 22 67 59 -11.9%

Income before tax 13,977 2,062 7,427 8,310 11.9% 1,063 2,338 4,909 109.9%

Net income 12,128 1,612 6,004 7,691 28.1% 499 2,466 4,726 91.7%

Balance sheet data

Fixed income assets 680,607 837,156 754,457 965,945 28.0% 876,372 889,955 965,945 8.5%

Investment assets 762,608 894,578 822,872 1,065,742 29.5% 946,131 979,584 1,065,742 8.8%

U-linked assets 130,071 113,874 132,293 151,837 14.8% 112,829 132,611 151,837 14.5%

Total assets(1) 797,628 936,444 863,601 1,260,670 46.0% 985,439 1,023,793 1,260,670 23.1%

Policy reserve(1) 701,533 825,319 784,162 1,140 -99.9% 877,982 914,656 1,140 -99.9%

Total reserve(1) 713,520 838,315 796,898 985,443 23.7% 891,454 928,534 985,443 6.1%

Total liabilities(1) 739,124 870,071 821,363 1,168,797 42.3% 927,089 957,257 1,168,797 22.1%

Shareholders' equity 58,503 66,373 42,238 91,873 117.5% 58,350 66,536 91,873 38.1%

Note(1) :excl. investment-linked

Summary ratios

Claims and benefits ratio 57.4% 44.5% 45.9% 29.1% 25.0% 35.4% 28.5%

Expense ratio 8.4% 5.8% 6.4% 3.9% 3.7% 5.2% 3.3%

Persistency ratio - 13th month N.A 88.2% 86.6% 89.0% 89.2% 89.7% 89.0%

Return on average assets 1.6% 0.2% 1.4% 0.9% 0.21% 0.98% 1.66%

Return on average equity 18.2% 2.6% 28.4% 13.0% 3.2% 15.8% 23.9%

Interest yield on fixed income investment 2.81% 3.18% 3.5% 3.51%

Total investment return 4.28% 3.16% 4.1% 3.98%

Note: (1) Exclude investment-linked

(2) Assets under separate accounts are not included in ROA calculation.

(3) Net profit combined started from 1 Jan ,2009; Year 2008 and 1H08 based on pro-forma

NT$ millions, except for percentagesFull Year Comparison of 9M Results 2009

Attachment8

Outstanding Shares

(million shares)

Issued shares : 8,125

Treasury shares : -

Outstanding shares 8,125

As of Sep 30, 2009

Attachment 9

Fubon Third Quarter 2009 Overvie Q3_Full.pdf · 10,170 4,642 1,684 1,433 1,796 1,928 517 4,134...

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