Table of Contents · Fubon Bank (China) 17 Fubon Insurance 18 Fubon Securities 19 ... to become a...
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Transcript of Table of Contents · Fubon Bank (China) 17 Fubon Insurance 18 Fubon Securities 19 ... to become a...
Table of Contents
Financial Highlights 2
Awards and Achievements 4
Message to Shareholders 6
Fubon Life 14
Taipei Fubon Bank 15
Fubon Bank (Hong Kong) 16
Fubon Bank (China) 17
Fubon Insurance 18
Fubon Securities 19
Investment Management Group 20
Fubon Sports & Entertainment 21
Corporate Citizenship 22
Fubon’s Three Principles 26
Positive energy is at the core of Fubon Financial Holdings’ philosophy, mission and principle. It is a spirit that empowers and enables people to bring about positive change in society.
Guided by its motto “Positive Energy,” Fubon Financial Holdings is in a strong position to consolidate its presence in Taiwan and continue its regional expansion in Asia. The ESG Visioning Project provides the guidance necessary to achieve the highest standards in sustainability practices. Together, these actions will assist Fubon in realizing its vision to become a first-class financial institution in Asia.
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2017 Annual Report
Fubon Financial Holdings
In NT$ Million 2015 2016 2017
Total Assets 5,987,468 6,351,258 6,919,454
Total Equity 376,077 427,105 488,771
Total Equity Attributable to Owners of Parent 367,622 426,820 488,432
Net Income 63,806 48,575 54,016
Net Income Attributable to Owners of Parent 63,593 48,421 54,122
Earnings Per Share (NTD) 6.21 4.73 5.19
Book Value Per Share (NTD) 35.92 39.40 45.08
Return on Equity (%) (1) 16.4% 12.2% 11.8%
Return on Assets (%) 1.1% 0.8% 0.8%
The figures above are the consolidated results of Fubon Financial Holdings Co. and its subsidiaries. (1) The calculation factor of Return on Equity is the amount attributable to parent company.
Total Assets
2015
2016
2017
Total Equity Attributable to Owners of Parent
2015
2016
2017
Net Income Attributable to Owners of Parent
2015
2016
2017
(In NT$ Million)
Financial Highlights
6,351,258
5,987,468
6,919,454
367,622
426,820
488,432
63,593
48,421
54,122
2017 Annual Report
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Fubon Securities
In NT$ Million 2015 2016 2017
Brokerage Commissions 2,659 2,324 3,442
Net Interest Income 940 900 986
Gain on Trading Securities, Net
(26) 90 1,614
Total Revenues 5,290 5,422 7,452
Operating Expenses 4,327 4,475 4,985
Net Income 1,348 1,504 2,817
Fubon Bank (China)
In CNY$ Million 2015 2016 2017
Net Interest Income 1,034 988 906
Commissions and Fee Revenues, Net
118 98 82
Other Revenues 26 80 (38)
Operating Expenses 601 640 657
Pre-Provision Profit 577 526 293
Provision (reversal) for Bad-Debt Losses
84 1 17
Net Income 390 412 220
Fubon Insurance
In NT$ Million 2015 2016 2017
Direct Written Premium 30,436 33,096 36,154
Net Written Premium 24,264 26,233 28,733
Underwriting Profit 1,680 1,737 2,066
Net Income from Investment 2,381 2,249 2,457
Net Income 3,213 3,119 3,631
Net Claim Ratio 55.78% 58.45% 55.20%
Net Expense Ratio 37.78% 36.93% 36.90%
Net Combined Ratio 93.56% 95.38% 92.10%
Retention 74.41% 73.85% 75.04%
Fubon Life
In NT$ Million 2015 2016 2017
First Year Premium (2) 185,654 190,573 148,559
Investment Income 129,923 123,898 124,701
Operating Revenue 585,006 609,892 631,703
Operating Costs 520,881 564,301 586,093
Net Income 41,018 28,688 32,488
First Year Premium (3) 205,282 204,283 174,460
Interest-Sensitive 146,775 113,136 126,071
Investment-Linked 19,627 13,710 25,901
Traditional 38,880 77,436 22,488
Fubon Bank (Hong Kong) (4)
In HK$ Million 2015 2016 2017
Net Interest Income 1,073 1,169 1,216
Net Fees and Commission Income
353 364 318
Other Operating Income 78 57 4
Operating Expenses 1,027 957 950
Operating Profit before Gains and Impairment Losses
477 633 588
Impairment Losses 71 203 72
Profit for the Year 522 635 583
Taipei Fubon Bank
In NT$ Million 2015 2016 2017
Net Interest Income 17,859 17,985 19,450
Commissions and Fee Revenues, Net
11,141 11,498 10,860
Other Revenues 8,104 6,301 8,478
Operating Expenses 17,194 17,451 17,825
Pre-Provision Profit 19,910 18,333 20,962
Provision (reversal) for Bad-Debt Losses
(247) 1,367 2,106
Net Income 17,783 14,466 16,778
(2) Excluding Investment-Linked Policies (3) Including Investment-Linked Policies
(4) The financial highlights of Fubon Bank(Hong Kong) are from consolidated financial statements. Other subsidiaries are from separate financial statements.
2017 Annual Report
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Awards and Achievements
FTSE Russell Fubon Financial FTSE4Good Emerging Index Member / FTSE4Good TIP Taiwan ESG Index Member
Morgan Stanley Capital International Fubon Financial MSCI ESG Leaders Indexes Member; Awarded an “A” rating from MSCI ESG Rating in the Diversif ied Financials category
S&P Dow Jones Indices / RebecoSAM—Dow Jones Sustainability Indices (DJSI) Fubon Financial DJSI World Index Member; DJSI Emerging Market Index Member in the FBN Diversif ied Financial Services and Capital Markets category
Asiamoney Taipei Fubon Bank Cash Management Customer Satisfaction Awards 2017—Best Overall Bank for Asian Clients; Best Taiwanese Bank for Asian Clients; Best Bank in Taiwan
Benchmark Fubon Asset Management Benchmark Fund of the Year Award 2016—Best-in-Class—RMB High Yield Bond; RMB High Yield Bond Best RSP Funds; US Large-Cap Growth Equity; China Equity A Share ETF
Corporate Governance Asia Fubon Group Chairman Daniel M. Tsai Asia’s Best CEO (Investor Relations) Fubon Financial Chairman Richard M. Tsai Asian Corporate Director Recognition Award Fubon Financial Icon on Corporate Governance / Best Investor Relations Company / Best Investor Relations Professional
Corporate Treasurer Taipei Fubon Bank Best Bank in Taiwan
Enterprise Asia Fubon Life Asia Responsible Entrepreneurship Award in Social Empowerment category
Euromoney Taipei Fubon Bank Private Banking and Wealth Management Survey 2017—Commercial Banking Capabilities in Taiwan—1st Place; Innovative Technology—Back Off ice Systems in Taiwan—1st Place
FinanceAsia Taipei Fubon Bank Best DCM House in Taiwan
Finance Digest Fubon Life Brand Excellence in Life Insurance, Taiwan
Global Banking and Finance Review Taipei Fubon Bank Best Internet Bank, Taiwan Fubon Insurance Best Non-Life Insurance Company, Taiwan
Global Finance Fubon Financial Best Investment Bank, Taiwan Taipei Fubon Bank Best Treasury and Cash Management Provider, Taiwan / Best Private Bank, Taiwan
International Alternative Investment Review (IAIR) Fubon Financial Corporate Awards 2016—Company of the Year for Innovation & Leadership
The Asian Banker Taipei Fubon Bank Best Data Analytics Project / Best Network Integration Initiative, Taiwan
The Asset Fubon Financial Corporate Award—Platinum Award Taipei Fubon Bank Best Retail Online Banking Experience, Taiwan / Regional House and Deal Awards 2016—Best LBO; Best Syndicated Loan / Best in Treasury and Working Capital—Public Sector, Taiwan / Best Cash Management Solution in Taiwan / Best Share Financing Deal, Vietnam Fubon Insurance Best Initiative in Innovation Fubon Securities Best Equity-linked Deal, Taiwan Taipei Fubon Bank / Fubon Life / Fubon Insurance / Fubon Securities 2017 Local Currency Bonds Benchmark Review—Top Investment House for Taiwan Dollar Bonds—1st in Ranking
The Banker and PWM Taipei Fubon Bank Best Private Bank, Taiwan
Thomson Reuters Fubon Asset Management Lipper Fund Awards Taiwan 2017—Best Fund over 3 Years—Bond China Yuan; Best Fund over 5 Years—Bond US Dollar—High Yield; Best Fund over 5 Years—Bond US Dollar
World Finance Fubon Life Best Life Insurance Company, Taiwan
Business Today Taipei Fubon Bank Wealth Management Survey on Banks and Brokerage Firms—1st Place—Best Wealth Creator; 2nd Place—Most Recommended Bank by Customers; 2nd Place—Most Visionary Award / Brand Appeal among Businesspeople—4th Place in the Banking category Fubon Life Brand Appeal among Businesspeople—3rd Place in the Life Insurance category Fubon Securities Wealth Management Survey on Banks and Brokerage Firms—1st Place—Best Product; 3rd Place—Best Customer Satisfaction / Brand Appeal among Businesspeople—2nd Place in the Brokerage category
CommonWealth Magazine Fubon Financial CSR Awards—a top-10 winner in the Large Company category Taipei Fubon Bank Golden Service Award—5th Place in the Banking category Fubon Life Golden Service Award—1st Place in the Insurance category
Excellence Magazine Fubon Insurance Digital Award
Fubon Securities Broker Rankings 2017—Best Wealth Manager; Best Risk Control
Global View Monthly Taipei Fubon Bank Service Sector Survey—Banking and Financial Services—1st Place
MANAGER today Taipei Fubon Bank Brand Asia Survey 2017—Excellence Award in the Financial category Fubon Securities Taiwan’s 100 MVP Manager 2017—Award for Organizational Innovation
Next Magazine Fubon Life 14th Top Services Awards—2nd Place in the Life Insurance category
Reader’s Digest Taipei Fubon Bank Trusted Brands Awards 2017—Gold Medal Award in the Wealth Manager category
Risk Management, Insurance & Finance Fubon Financial Most Admired Financial Holding Company—1st Place Fubon Life Most Admired Insurance Company—1st Place in the Back Off ice Support category; 1st Place in the Field Representative Support category / 19th Faith, Hope, and Love Awards—Award for Professionalism; Award for Best Channel Strategy; Award for Best CSR; Award for Best Integrated Marketing Communications; Award for Best Product Innovation; Award for Contribution in Insurance Education; Award for Best Representative Of f ice; Award for Insurance Leadership; Award for Individual Contribution; Award for Individual Achievement; Award for Individual Professionalism, Field Representative area—Honorable Mention; Back Off ice Support area—Honorable Mention; Back Off ice Support area—Honorable Mention; Award for Individual Contribution—Honorable Mention / Insurance Quality Awards—Most Recognized Brand—1st Place; Best Agent Force—1st Place; Best Claims Service—1st Place / Most Recommended Brand—1st Place Fubon Insurance Most Admired P&C Insurance Company—1st Place / 19th Faith, Hope, and Love Awards—Award for Best CSR; Award for Professionalism; Award for Best Product Innovation; Award for Best Representative Of f ice; Award for Individual Achievement / Award for Individual Professionalism; Award for Contr ibution in Insurance Education—Honorable Mention; Award for Best Integrated Marketing Communications—Honorable Mention; Award for Best Channel Strategy—Honorable Mention / Insurance Quality Awards—Best Brand—1st Place; Best Af ter-Sales Service—1st Place; Best Professionalism—1st Place; Most Recommended Brand—1st Place / Voted as Best P&C Insurance Company in a business opinion poll of 1,000 companies
Smart Monthly Fubon Asset Management Smart Taiwan Fund Awards 2017—Best Taiwan Fixed Income Research; International ETF of the Year; Best High-Yield Bond Fund
2017 Annual Report
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Wealth Magazine Fubon Financial 2017 Taiwan Financial Award—CSR Award for Financial Holding Company—Silver Taipei Fubon Bank Wealth Management Survey—Best Wealth Management; Best Service; Best Digital Bank / 2017 Taiwan Financial Award—Best Banking Service—Silver; Best Banking Product—Silver Fubon Life 2017 Taiwan Financial Award—Best Insurance Service—Silver; Best Insurance Product—Silver Fubon Securities Wealth Management Survey—Best Service; Best Recommended by Clients; Best Digital Brokerage / 2017 Taiwan Financial Award—Best Brokerage Brand—Silver; Best Brokerage Service—Silver; Best Brokerage House for Fintech Innovation—Gold
Bloomberg Businessweek (Chinese Edition) Fubon Bank (Hong Kong) Financial Institution Awards 2017—Credit Card Usability Outstanding Performer
China Business News Fubon Bank (China) Best Mobile Based Loan Bank
Sky Post Fubon Bank (Hong Kong) Banking & Finance Awards 2017—Excellence Award for Commercial Finance Solutions
Xiamen Media Group Fubon P&C Insurance Most Reliable Auto Insurance Brand / Distinctive Service Award
6th China Finance Summit Fubon Bank (China) 2017 Best Value of Growth Award
Association of Insurance Industry, Fuxin City, China Fubon P&C Insurance Jinzhou Sub-Branch Contribution Award for Insurance Premium Generation
Association of Insurance Industry, Jinzhou City, China Fubon P&C Insurance Jinzhou Sub-Branch Recognized for raising public awareness of insurance
Bank of New York Mellon Fubon Bank (Hong Kong) Straight Through Processing Award
Brand Finance Fubon Life Top 100 Most Valuable Insurance Brand
China Banking Association Fubon Bank (China) Best Development of Syndicated Loan Business Award
Employees Retraining Board Fubon Bank (Hong Kong) ERB Manpower Developer Award Scheme—Manpower Developer
Environment Bureau, HKSAR Government Fubon Bank (Hong Kong) Charter on External Lighting Award—Platinum Award
Environment Bureau and Electrical and Mechanical Services Department, HKSAR Government Fubon Bank (Hong Kong) Certif icate of Energy Saving Charter on “No Incandescent Light Bulbs”
Environmental Campaign Committee Fubon Bank (Hong Kong) Wastewi$e Certif icate / Energywi$e Certif icate
General Union, Fuxin City, China Fubon P&C Insurance Jinzhou Sub-Branch Award for Best Organization
Hong Kong Council of Social Service Fubon Bank (Hong Kong) 10 Years Plus Caring Company Logo
League of American Communications Professionals (LACP) Fubon Bank (Hong Kong) 2016 Vision Awards Annual Report Competition—Gold Award
Project Management Institute—Taiwan Chapter Taipei Fubon Bank Enterprise Project Management Benchmarking Award 2017
Tiptop Consultants Ltd. Fubon Bank (Hong Kong) Tiptop Service Award—Persistently Outstanding Service Company (2016-2017) ; Persistently Outstanding Service Outlet (2016-2017)
VISA Taipei Fubon Bank Service Quality Per formance Award
Bureau of Energy, MOEA Fubon Insurance Recognized for achieving certif ication to the ISO 50001 standard
Department of Environmental Protection, Taipei City Government Fubon Financial Distinction for Sustainable Procurement as a private-sector company Fubon Insurance Taipei Energy Conservation Leadership Awards 2017—Excellence Award in the Industrial and Commercial Enterprises category
Environmental Protection Administration, Executive Yuan Fubon Financial Distinction for Green Procurement
Ministry of Culture Fubon Group 2017 Art & Business Awards—Sponsorship of the Year Award
Sports Administration, MOE Fubon Financial Sports Activ ists Awards—Gold Winner in the Spor ts Sponsorship category; Long-Term Sponsorship Award; Si lver Winner in the Spor ts Promotion category Fubon Life Sports Activists Awards—Gold Winner in the Sports Sponsorship category Taipei Fubon Bank / Fubon Life / Fubon Insurance / Fubon Securities Taiwan i sports—Certif icate of Corporate Wellness
Taiwan Futures Exchange—3rd Futures Diamond Award Fubon Securities Best Futures Introducing Broker—5th Place
Fubon Asset Management Best Securities Investment Trust Fund—Equity—1st Place; Best Securities Investment Trust Enterprise—2nd Place Fubon Futures Best Futures Manager Broker—1st Place
Taiwan Stock Exchange Fubon Financial 3rd Corporate Governance Ranking—ranked among the top 5% entrants Fubon Securities Number of IPO Deals—3rd Place / Contest for Increasing Electronic Trading—2nd Place in the Electronic Trading Volume category; 3rd Place in the API Solutions category
Securities and Futures Institute—14th Golden Goblet Award Fubon Securities Individual Award—Outstanding Brokerage Professional Fubon Asset Management Group Award—Outstanding Financial Innovation
Taiwan Contact Center Development Association Fubon Securities Customer Service Awards 2017—Most Innovative Company in Customer Service
Center for Corporate Sustainability Fubon Financial 2017 Taiwan Corporate Sustainability Awards—Listed as a Top 10 Sustainable Company; Taiwan Top 50 Corporate Sustainability Report Awards—Gold Medal Award in the Financial Sector category; People Development Award; Transparency and Integrity Award Fubon Charity Foundation 1st Taipei Golden Eagle Micromovie Festival—Award for Leadership in Philanthropy
Taipei Foundation of Finance Fubon Asset Management Best Fund Awards 2017—Best Fund over 5 Years—Global ex-Emerging Markets Fixed Income
Taiwan Insurance Institute—7th Taiwan Insurance Best Performance Awards Fubon Insurance Chairman Steve T.H. Chen Lifetime Achievement Award Fubon Life Best Risk Management Project Award—Gold; Best Customer Service Award—Silver; Best Staf f Training Award—Silver; Best Product Innovation Award—Silver; Best ICT Innovation Award—Silver; Promotion on Information Security Award—Silver Fubon Insurance Best Public Service Award—Gold; Best Customer Service Award—Gold; Best Staf f Training Award—Gold; Best Product Innovation Award—Gold; Best ICT Innovation Award—Gold; Best Risk Management Award—Gold; Promotion on Information Security Award—Silver; Promotion on Compulsory Automobile Liabil ity Insurance Award—Silver
Taiwan Intelligence Building Association Fubon Life TIBA Award 2017—Gold Award in the Intell igent Green Building Design category
British Standards Institution Fubon Financial / Taipei Fubon Bank / Fubon Life / Fubon Insurance / Fubon Securities Accredited to the ISO 14064-1 standard
2017 Annual Report
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Message to Shareholders
Dear Fellow Shareholders,
Taiwan’s financial sector experienced broad-based profit growth in
2017, supported by a pick-up in global growth and ample liquidity
in financial markets. Against this backdrop, the main subsidiaries
of Fubon Financial Holdings achieved strong operating results. The
holding company reported net profit of NT$54.12 billion, or NT$5.19
per share, keeping its top spot as Taiwan’s most profitable financial
services company by earnings per share for the ninth straight year.
In addition to a strong presence in Taiwan, Fubon Financial Holdings
has one of the most extensive networks in China and Hong Kong. In
November 2017, the Board of Directors of Fubon Financial Holdings
resolved to purchase from Fubon Bank (Hong Kong) its entire
shareholding in Xiamen Bank, in turn giving the holding company direct
ownership of the mainland lender. Upon completion of the transaction,
Fubon Financial Holdings will have more f lexibil ity in managing
its capital while improving its asset efficiency and utilization. The
transaction will also help Fubon Financial Holdings to maintain Xiamen
Bank’s strategic position in China, and to continue to participate in the
growth of Xiamen Bank.
In 2018 and beyond, Fubon Financial Holdings looks to strengthen its
position in China through organic growth and strategic investments.
The 57 business outlets of Xiamen Bank in Chongqing City and Fujian
Province are part of Fubon Financial Holdings’ large and growing
network, which provides Chinese and Taiwanese customers the
gateway to access Fubon Financial Holdings’ innovative suite of financial
products, services and solutions. Fubon Financial Holdings also
seeks to capture a larger share of the market through its China-based
subsidiary bank, Fubon Bank (China). As of the end of 2017, Fubon Bank
(China) had 25 locations in the country, including one new branch that
already obtained approval for establishment in Xi’an City. With a branch
network spanning some of China’s fastest growing regions, including
the Yangtze River Delta, the Pearl River Delta, the areas surrounding Bo
Sea and the metropolitan centers of western China, Fubon Bank (China)
has by far the most complete geographic coverage of any Taiwanese
bank. Moreover, the bank is the only Taiwanese bank granted a full
banking license to operate in China.
Fubon Financial Holdings has been on an expansion trail to increase
its reach and scale across Asia. Fubon Life, which had acquired a 48%
stake in Hyundai Life in late 2015, participated in a rights offering of its
South Korean partner in December 2017. The capital-raising positions
the two insurers well to grow and serve South Korea’s insurance
market, in particular the high-potential pension segment. Merger and
acquisition remains a key strategic option for Fubon Financial Holdings
going forward as it advances its goal to become one of Asia’s first-
class financial institutions.
Nine Consecutive Years of Industry-Leading Profitability
The world economy saw a broad-based recovery in 2017. Increased
spending and investment in advanced economies, coupled with an
emerging market recovery supported by higher commodity prices,
accelerated global trade. Domestically, exports grew strongly while
consumer sentiment rebounded. Though investment in the private
sector lost momentum in the second half of the year, Taiwan’s economy
expanded at a faster rate than expected spurred by growth in exports
and consumer spending, ending the year up 2.86%. That compared
with a GDP growth of 1.41% in 2016.
Against a backdrop of moderate growth, the subsidiaries of Fubon
Financial Holdings posted a solid set of results for 2017. Fubon Life
and Taipei Fubon Bank, two key profit drivers for the holding company,
contributed 91% of net profit at group level. Fubon Financial Holdings
kept its title as Taiwan’s most profitable financial holding company
by earnings per share for the ninth year running, with net profit of
NT$54.12 billion, or NT$5.19 per share. Its return on assets and return
on equity reached 0.81% and 11.83%, respectively.
Fubon Financial Holdings continued to be Taiwan’s second-largest
financial holding company by assets in 2017. Its year-end assets
approached the NT$7 trillion mark to set a record NT$6.9195 trillion, or
8.9% higher than a year earlier.
Fubon Life: Record Levels of Premium Income and Assets
Fubon Life delivered an impressive performance last year on the back
of a well-positioned product portfolio and diverse distribution channels.
The insurer served as Fubon Financial Holdings’ main profit engine with
net profit of NT$32.49 billion, a 13% increase from the prior year. Its
total premiums amounted to NT$515.4 billion. Both of its renewal year
premiums and first year premiums equivalent were ranked the second
highest in the industry at NT$341 billion and NT$56.1 billion, respectively.
Its agent force grew at a faster rate than those of its peers, reaching
24,358 with a net addition of over 2,500 in the past year. Fubon Life’s
assets at 2017 year-end surpassed NT$3.6 trillion to set a new record.
Fubon Life, a leader in online insurance sales, generated more than
NT$350 million in f irst-year premiums from online channels last
year after it launched an annuity that accepts up to NT$1 million
in premium payment by credit cards issued by over 30 approved
issuers. Fubon Life is also Taiwan’s largest seller of insurance policies
through the Offshore Insurance Unit (OIU), accounting for over 40% of
total OIU transactions. In 2017, it became the first Taiwanese insurer
to allow OIU customers to pay by credit card after it offered the
payment option to holders of a new US dollar-denominated interest
sensitive life insurance policy.
After its acquisition of a 48% stake in Hyundai Life, Fubon Life
sent senior managers with expertise in investment, f inance, risk
management and actuarial science to the South Korean insurer to turn
around its business. The exchange of expertise resulted in improved
returns on investment, more balanced asset allocation and enhanced
product capability for Hyundai Life. In late 2017, Fubon Life took up its
entitlement to purchase 28,793,084 new shares offered by Hyundai
Life for 144 billion won, a move that brings its total investment to 364
2017 Annual Report
6
Richard M. Tsai
Chairman
Fubon Financial Holdings
2017 Annual Report
7
billion won to date and reaffirms its commitment to serving the clients
in South Korea. The other foreign subsidiary of Fubon Life is based in
Hong Kong. Founded in April 2016, this subsidiary has initial goals of
building Fubon Life’s distribution channels and developing insurance
products that serve local needs.
Taipei Fubon Bank: Applying Digital Innovation with One Extra
Degree of Service
Taipei Fubon Bank remains a large contr ibutor to earnings at
parent Fubon Financial Holdings. The bank reported net profit of
NT$16.78 billion for 2017, up 16% from the prior year, on the back
of improvements in the local economy and broad growth across its
businesses. In particular, it became Taiwan’s fifth-largest mortgage
lender with significant growth of its home loan book. In 2017, Taipei
Fubon Bank continued to see the highest average spend per active
credit card among Taiwan’s top six credit card issuers after it enhanced
its suite of benefits and privileges to reward its customers.
In the past year, Taipei Fubon Bank reiterated its value proposition:
a 360-degree service plus one extra degree of human touch. It
reinforced that customer-centric value proposition throughout its
organization, with a focus on building a personal connection with
clients by personalizing their experience, earning their trust and solving
their problems.
In 2017, Taipei Fubon Bank developed new solutions to make the
customer experience more seamless and integrate banking and
payment methods into their everyday lives. Tapping into the tradition
of handing out red envelops of cash to families and friends on special
occasions, Taipei Fubon Bank and Taiwan Mobile launched Taiwan’s
first digital transactions of red envelopes through Fubon Lucky Money,
a feature built within Taiwan Mobile’s instant messaging app M+ and
powered by blockchain-based technology. Another example of the
convergence of digital and banking is a digital wallet offered by Taipei
Fubon Bank, Taiwan Mobile and EasyCard Corporation. It enables
users to pay for public transit, parking, and purchases using a virtual
version of the EasyCard on their smartphone, with it linked to a credit
card to automatically add value. This innovative payment method
brings the purchase process to a next level of ease, convenience and
personal comfort.
Fubon Insurance: 36 Years of Market Dominance
Fubon Insurance wrote a record NT$36.2 billion in premiums in 2017 by
leveraging its parent group’s strong market position to drive insurance
sales. The insurer held its No.1 position for the 36th year running in
the non-life insurance market with 23.2% market share. It reported net
profit of NT$3.63 billion for the year.
Fubon Insurance’s crop insurance designed for rice and pear growers
and a weather index insurance policy tailored for fish farmers provide an
alternative way other than government subsidies for farmers to minimize
losses from unharvested crop or fish stocks. The insurer paid claims on
damages caused by a sudden, severe cold spell soon after it rolled out
its crop and fishery insurance schemes, underlining an urgent need for
coverage in the agricultural and farm-fishing industries.
Fubon Insurance operates a growing international network including
subsidiaries in China and Vietnam, insurance brokerage units in
Thailand and the Philippines, and outposts in Beijing, Malaysia and
Indonesia. Fubon Insurance (Vietnam) has head office in Ho Chi
Minh City and branches in Hanoi, Binh Duong and Dong Nai. The
Vietnamese insurer’s written premiums in 2017 were 369.7 billion dong,
up 29% year-on-year.
Fubon Property & Casualty Insurance, Fubon Insurance’s China-based
subsidiary, has 61 offices in the municipalities of Xiamen, Chongqing,
Liaoning and Dalian. Last year, the insurer took fourth place in a ranking
of corporate governance performance of foreign P&C insurers and
reinsurers by the China Insurance Regulatory Commission.
Fubon Securities: Making Headway in Stock Brokerage and
Investment Advisory Services
A recovery in global growth and an increased trading volume in Taiwan
stocks propelled Fubon Securities’ brokerage and investment advisory
businesses in 2017. The firm reported net profit of NT$2.82 billion for
the year. It strengthened its position as one of Taiwan’s top three prime
brokers with a retail brokerage market share of 6.21%, up from 5.21%
in 2016.
In addition to a strong prime brokerage presence, Fubon Securities
has a diverse retail product offering. It was ranked Taiwan’s third
largest securities lender with 16.6% market share last year. Its
automatic investment program for ETFs was the largest of its kind
in the industry, holding NT$25.3 billion in ETF assets at the end of
2017 compared with NT$14.9 billion a year earlier. It also launched
automated investing services, known as robo-advisors, which use big
data and algorithms to determine the right portfolio for each investor’s
financial objectives.
On the capital market side, Fubon Securities was ranked the second-
largest stock broker and underwriter in the Emerging Stock Board
last year. The company successfully executed several landmark
transactions for clients in the year. It arranged a GDR listing for Chi Mei
Materials Technology, marking the first time ever for a GDR issue to
be arranged via the Offshore Securities Unit. It led the year’s biggest
deal, Highwealth Construction’s issue of NT$10.02 billion worth of
secured convertible bonds, which was also the largest capital-raising
to date by a Taiwanese developer. Moreover, Fubon Securities served
as underwriter for the green bonds of Taiwan Power Company and
Far Eastern New Century to support issuers’ transition to sustainable
development and to bring environmental and social-economic benefits
to local communities.
Fubon Bank (China): Largest Taiwanese-Owned Bank in China
Fubon Bank (China) became a wholly-owned subsidiary of Fubon
Financial Holdings in October 2016, a move further strengthening the
2017 Annual Report
8
Daniel M. Tsai
Vice Chairman
Fubon Financial Holdings
2017 Annual Report
9
Rating Type Rating AgencyCredit Rating
Outlook Effective DateLong-term Short-term
InternationalStandard & Poor’s BBB+ A-2 Stable 2017 / 11 / 23
Moody’s Baa1 Stable 2017 / 12/ 28
Domestic Taiwan Ratings Corp. twAA twA-1+ Stable 2017 / 11 / 23
The ratings Fubon Financial Holdings received in 2017 are as follows:
group’s foothold in China's financial services sector. As of December
2017, Fubon Bank (China) had 25 locations in China, including one new
branch being planned in Xi’an. With a branch network covering the
Yangtze River Delta, the Pearl River Delta, the areas surrounding Bo
Sea and the central and western regions, Fubon Bank (China) has by
far the most locations as well as the widest geographic coverage of any
Taiwanese bank operating in China.
Fubon Bank (China) has set a new industry benchmark for retail bank
branch design by building an art gallery, a coffee shop, a florist and
a library into four branches located in the cities of Shanghai, Nanjing
and Chengdu. This is part of the bank’s ongoing effort to give each
of its branches a unique design and functionality that not only reflects
the local surroundings and lifestyle, but also provides a value-added
user experience.
Fubon Bank (Hong Kong) reported net profit of HK$583 million for 2017.
On December 29, 2017, the bank issued US$193 million undated non-
cumulative subordinated Additional Tier 1 Capital Securities, which
were fully subscribed by Fubon Financial Holdings. This issuance
strengthened its capital base and put it in a strong position to continue
its growth. On November 28, 2017, the boards of Fubon Financial
Holdings and Fubon Bank (Hong Kong) approved the transfer of the
entire shareholding in Xiamen Bank held by the bank to its parent
company. The transaction, which is subject to regulatory approval,
does not affect in any way the importance of Fubon Bank (Hong Kong)
as an integral part of Fubon Financial Holdings’ Greater China platform.
The bank continues its focus on serving Hong Kong and supporting its
business customers as they operate and grow in the markets of China,
Hong Kong and Taiwan.
Disciplined Risk Management and Superior Balance Sheet Strength
As Fubon Financial Holdings continues to grow and expand, risk
management remains a priority to the company. Its efforts to maintain
above industry-average asset quality and a strong capital base resulted
in a CAR of 129.5% last year, above the minimum capital requirement
of 100%.
Taipei Fubon Bank’s BIS reached 13.9% at the end of 2017, an
indication of the bank’s capital strength. Other ratios provided further
evidence of its excellent balance sheet, including a non-performing loan
ratio of 0.17%, below the industry average of 0.28%, and a coverage
ratio of 764.5%, higher than the industry average of 492.92%.
In a report released on November 23, 2017, Taiwan Ratings Corp.
affirmed Fubon Financial Holdings’ long-term rating as twAA and its
short-term rating as twA-1+. Moody’s Investors Service, in its latest
ratings note dated December 28, 2017, kept its outlook for the company
at Stable. These affirmations reflect Fubon Financial Holdings’ ability to
deliver above-average profitability and superior asset quality.
Exceptional Leadership in Corporate Governance
Fubon Financial Holdings’ corporate governance efforts have been
recognized by various media and organizations from around the
world. In 2017, the company was ranked in the top 5% of Taiwan-
listed companies for the third year in the annual corporate governance
evaluation conducted by the Taiwan Stock Exchange. It was awarded
The Best of Asia—Icon on Corporate Governance from Corporate
Governance Asia for the ninth straight year, as well as Corporate
Award—Platinum Award from The Asset for the seventh year running.
These accolades underscore Fubon Financial Holdings’ dedication to
implementing best-in-class global governance standards.
Fubon Financial Holdings is committed to leadership in corporate
governance. Through its system of board governance, six of the 15
directors are independent, and more than half of the 15 directors are
non-executive. Chairman Richard M. Tsai received the Asian Corporate
Director Recognition Award from Corporate Governance Asia for
his contributions to corporate governance, business management,
sustainability and other issues in 2017.
Transparency is an important cornerstone of corporate governance.
Fubon Financial Holdings was awarded Best Investor Relations in
Taiwan from Corporate Governance Asia for the seventh straight
year in recognition of the company’s commitment to transparent
financial reporting.
Fubon Financial Holdings lives up to its motto “Positive Energy” by
supporting sustainable development. In 2017, the company was
selected for its f if th time as a top-10 winner of CommonWealth
Magazine’s Corporate Social Responsibility Awards in the Large
Company category. Last year also marked the fourth straight year that
it was recognized as a Silver Winner in the Financial Holding Company
category in Wealth Magazine’s CSR Awards. Fubon Financial Holdings
received the People Development Award and the Transparency and
Integrity Award in the Taiwan Corporate Sustainability Awards, adding
to two other top awards it earned for three years running—the Ten Most
Sustainable Company Award and the Top 50 Corporate Sustainability
Report Gold Award in the Financial Services and Insurance category.
Fubon Financial Holdings has a long history promoting environmentally-
and socially-conscious purchasing practices. It was recognized in 2017
by the Environmental Protection Administration and the Taipei City
Government for excellence in sustainable procurement. Being a strong
supporter of sports, the company was named a Gold Winner and
Silver Winner at the Sports Activist Awards in the Sports Sponsorship
2017 Annual Report
10
and Sports Promotion category, separately, in addition to an award
acknowledging its long-time sponsorship. Four of its subsidiaries
received Taiwan i-Sports, a certificate of recognition for outstanding
corporate wellness programs, during the past year.
Awards and Recognition for Subsidiaries
Top international awards Taipei Fubon Bank won in 2017 included Best
Overall Bank for Asian Clients, Best Taiwanese Bank for Asian Clients
and Best Bank in Taiwan from Asiamoney’s Cash Management Survey;
Best Treasury and Cash Management Provider and Best Private
Bank in Taiwan from Global Finance; and Best Retail Online Banking
Experience and Best Treasury and Working Capital (Public Sector) in
Taiwan from The Asset. Meanwhile, the local media took note of Taipei
Fubon Bank’s ability to serve clients with distinction. The bank was
ranked first in the Banking and Financial Services category in an annual
survey of service sector firms by Global View Monthly, and named a
Silver Winner for Best Banking Service and Best Banking Product in
Wealth Magazine’s Taiwan Financial Award.
Fubon Life was named Best Life Insurance Company by World Finance
for the sixth time, as well as a Top 100 Most Valuable Insurance Brand
by Brand Finance. The insurer was ranked first in the Life Insurance
category in CommonWealth Magazine’s Golden Service Award. For
the eighth year in a row, it was named the Most Admired Company for
both field and back-office in the life insurance category. Other notable
awards included 14 awards at the 19th Faith, Hope, and Love Awards,
and four top honors earned at the Insurance Quality Awards.
Fubon Insurance has enjoyed an international reputation for operational
excellence. Last year, it was awarded Best Non-Life Insurance
Company in Taiwan from Global Banking and Finance Review and
Best Initiative in Innovation from The Asset. Domestically, the insurer
received the Digital Award from Excellence Magazine. It also earned
a staggering number of awards from local industry publication Risk
Management, Insurance & Finance, including Best P&C Insurance
Company in a business opinion poll of 1,000 companies, nine awards
at the 19th Faith, Hope, and Love Awards, and four top awards at the
Insurance Quality Awards.
Fubon Securities was awarded Best Equity-linked Deal and Top
Investment House for Taiwan Dollar Bonds in Taiwan from The
Asset last year. It took top honors including Best Service, Most
Recommended Brand and Best Digital Brokerage in Wealth Magazine’s
annual survey of wealth management firms. The Taiwan Financial
Award, also organized by Wealth Magazine, named Fubon Securities
a Gold Winner for Best Brokerage House for Fintech Innovation and a
Silver Winner for Best Brokerage Brand and Best Brokerage Service.
Named to Dow Jones Sustainability World Index for First Time
Fubon Financial Holdings in late 2015 launched the Fubon ESG
Visioning Project, a sustainability initiative based on the corporate
motto “Positive Energy” and guided by a strategy with the acronym
LIGHT, which stands for Leading Investment, Innovative Finance,
Golden Practices, Honest Lending and Tender Care. A task force
was created under the Corporate Governance and Sustainability
Committee to set ESG agenda and actions for the short-, mid-
, and long-term horizon. The Fubon ESG Visioning Project seeks to
address environmental, social and governance issues by achieving
12 Sustainable Development Goals, including good health and well-
being, climate action, quality education and sustainable cities and
communities, in order to contribute to economic prosperity, the
development of civil society and environmental conservation.
The adoption of the Equator Principles marks the latest milestone
in Fubon Financial Holdings’ long-running sustainability effort. In
December 2017, Taipei Fubon Bank joined the Equator Principles
Association in support of responsible r isk decision-making on
environmental and social issues in financing projects.
Fubon Financial Holdings is recognized international ly for i ts
sustainability leadership. In June 2017, it was selected as a constituent
of the MSCI Global Sustainability Indexes based on an “A” MSCI
ESG rating, the highest rating awarded to any Taiwanese firm in the
Diversified Financials category.
In September 2017, Fubon Financial Holdings was once again
included in the Dow Jones Sustainability Emerging Markets Index
(DJSI Emerging Markets), receiving scores above the industry average
in each of the economic, environmental and social dimensions in a
yearly review of component selection by RobecoSAM and S&P Dow
Jones Indices. The company was also named to the DJSI World Index,
ranking fourth among the 15 world leaders in the FBN Diversified
Financial Services and Capital Markets category. This marked the first
time a Taiwanese financial services group has appeared in the category
on DJSI’s global sustainability benchmark.
Four Foundations Serving as Platforms for Philanthropy
Wan-Tsai Tsai, the late founder of the Fubon Group, was a champion
of the spirit expressed in the Chinese proverb: “Plough back to the
community whatever is due to the community.” Guided by the motto
“Positive Energy” and a commitment to contributing to the progress of
society, the four foundations supported by Fubon Financial Holdings
serve as important platforms to promote philanthropy and social
responsibility.
The Fubon Charity Foundation in 2017 raised more than NT$112 million
for Making Friends with Love, a program that helped 15,795 students
continue their studies. Another program, Fubon Social Welfare
Ambassador, benefited 106 nonprofits and social enterprises. In the
past year, 3,713 Fubon employees contributed 22,913 hours of service
in activities planned by the Fubon Volunteer Association.
In 2017, the Fubon Cultural & Educational Foundation empowered 2,267
young people to think independently about and participate in public
issues via its youth empowerment programs. It also continued its efforts
on the restoration and preservation of films and increased its support of
an image education program that has benefited 5,985 students to date.
Its financial education initiative for primary school children, the Future
Tycoon Outreach Program, helped 2,354 children learn about basic
money skills and increased teachers’ level of financial literacy. Excursions
organized by Fubon EDU, another annual initiative of the foundation,
educated Fubon employees and their families about the benefits of
sustainable farming with 4,206 hours of attendance.
The Fubon Art Foundation celebrated its 20th anniversary in 2017
with four projects inspired by the four routines and responsibilities that
accompany the coming of age in ancient Chinese tradition: eliminating
weaknesses, setting an ambition, choosing friends and being studious
2017 Annual Report
11
Richard M. Tsai
Chairman, Fubon Financial Holdings
Daniel M. Tsai
Vice Chairman, Fubon Financial Holdings
in learning. Designed to create engagement and break down the
boundaries between art forms, these projects involve the recreation
of batting helmets for charity fundraising, experimentation of design
with trash bags, documentaries that take a look inside the early lives
of celebrities, and the release of a digital archive that chronicles the
exhibitions of Very Fun Park.
Since its founding, the Taipei Fubon Bank Charity Foundation has
been working toward improving the welfare of seniors, caregivers,
and people with disabilities. It organized 228 support group meetings
and respite events for 5,137 family caregivers in 2017. To support
older people with Alzheimer's and dementia, the foundation delivered
community-based care services to residents in Hualien county, and
built sensory rooms in nursing homes to slow the worsening of the
diseases by stimulating patients’ visual, auditory and tactile systems.
Reinforcement of Risk Management and Investment in FinTech
In the year ahead, a continued recovery in global growth and
expansionary fiscal policy led by the world’s major economies will
support exports. On the domestic front, improving growth prospects
and earnings potential of local businesses shall lead to gains in
employment, consumer sentiment and household spending, in turn
increasing the corporate sector’s willingness to invest. That, coupled
with the government’s infrastructure stimulus plan, will create an
accommodative environment for growth.
A description of the strategic actions Fubon Financial Holdings’
subsidiaries will implement in 2018 is provided below:
1. Fubon Life: Plans for 2018 include addressing demand for insurance
and care plans resulting from longer life expectancy; designing,
targeting and distributing products that meet the specific needs and
objectives of different customer groups; using big data to make more
personalized customer offers; supporting policyholders’ healthcare
needs through partnerships outside of the insurance industry; and
tapping emerging, fast-growing channels such as digital channels and
the Offshore Insurance Unit.
2. Taipei Fubon Bank: The priority for the bank’s institutional banking
business is to reach potential customers and to drive asset growth
through new product offerings, streamlined procedures and expansion
of the targetable customer base. The focus of its consumer banking
business will be on branch renovation as part of an ongoing effort to
overhaul its retail network, reach local clients and enable a better in-
branch experience. The bank also plans to utilize artificial intelligence
and chatbot technologies to offer custom portfolio recommendations
that are transparent, easy to understand and tailored to clients’
individual investment goals and objectives.
3. Fubon Bank (Hong Kong): Top priority for 2018 will be to increase its
return on equity and return on assets by optimizing its loan book mix
to enhance yield, creating a stable and diversified fee income base,
and maintaining disciplined cost control. The bank also plans to add to
the ease and confidence consumers have in their self-service banking
experience by encouraging the usage of digital platforms, introducing
new mobile banking features, and accepting online applications for
personal loans.
4. Fubon Bank (China): Plans for 2018 include strengthening risk
management; establishing a market-oriented business model and
matching new product development to priority customers in order to
improve customer retention and pricing ability; increasing collaboration
between markets to better serve Taiwanese clients; deepening
relationships with Taiwanese SMEs and increasing Taiwanese-
owned businesses’ access to service by leveraging the resources
and networks of its partners; and speeding up the development of a
cross-strait cash management system to facilitate transaction flows for
Taiwanese corporations.
5. Fubon Insurance: Main goals in the year ahead include digitalizing
customer service through increased usage of electronic documents,
mobile payment options and customizable app platforms for service
delivery; applying telematics and big-data analytics to its fleet risk
services to prevent and manage motor vehicle incidents as well as to
its healthcare service platform; developing new products that address
emerging risk; expanding construction coverage in support of the
Taiwan government’s public work stimulus projects; and promoting
crop insurance schemes.
6. Fubon Securities: Objectives set out for 2018 include improving
clients’ investment experience with the use of robo-advisor services
and analytical tools and through the optimization of its trading
platforms and social media engagements; seeking opportunities to
execute landmark transactions; and leveraging its experience arranging
securities financing through the Offshore Securities Unit to advise
issuers on ECB and GDR offerings.
Looking ahead, Fubon Financial Holdings will continue to strengthen
its r isk management to ensure sustainable development of the
company. It also will embrace new technologies and innovations that
are shaping the future of financial services in order to become a leader
in FinTech. While maximization of shareholder value remains one of its
priorities, Fubon Financial Holdings will achieve it by maintaining sound
environmental, social and governance practices as promoted by its
ESG Visioning Project. These actions will put the company in a strong
position to move toward its long-term goal of becoming one of Asia’s
first-class financial institutions.
2017 Annual Report
12
Jerry Harn President Fubon Financial Holdings
Eric Chen Chairman Taipei Fubon Bank
Roman Cheng President Taipei Fubon Bank
Steve T.H. Chen Chairman Fubon Insurance
Dennis Chan President Fubon Bank (China)
Howard Lin Vice Chairman Fubon Life
Benson Chen President Fubon Life
Gang Shyy Chairman Fubon Securities
Raymond Lee Chief Executive Officer Fubon Bank (Hong Kong)
Management Team
13
2017 Annual Report
Fubon Life
1. Fubon Life joins hands with the Federation for the Welfare of the Elderly in a healthy living campaign for seniors.
2. Fubon L i fe suppor ts interco l leg iate basketba l l tournaments through i ts sponsorship of the University Basketball Association.
3. Fubon Life has received awards at home and abroad for demonstrating a high level of professionalism and integrity.
2.
1.
Fubon Life’s operating results for 2017 reflected the underlying strength of its business and its ability to capitalize on a recovering economy. Its net profit amounted to NT$32.49 billion, or NT$3.92 per share. Its first-year and total premiums for the year were NT$174.5 billion and NT$515.4 billion, respectively. The insurer’s operational excellence and involvement in the communities earned itself some significant recognition during the year. It was named Best Life Insurance Company, Taiwan by World Finance for the sixth time and awarded the Asia Responsible Entrepreneurship Award by Enterprise Asia in the Social Empowerment category. Other noteworthy honors included first place in the Life Insurance category in CommonWealth magazine’s Golden Service Award, 14 awards in the Faith, Hope, and Love Awards, six awards in the Taiwan Insurance Excellence Award, and four awards at the Insurance Quality Awards for having the most recognized brand, the best claims service, the best agent force and the most recommended brand. Last year also marked the seventh straight year that Fubon Life was rated by insurance graduates as the most admired company.
Contributing to Progress of Society
Fubon Life, as an integral par t of the social safety net, is committed to revitalizing its sales force, extending its service network, enhancing its product offerings and using technology to improve customer experience. During 2017, its agent force grew at the fastest rate in the industry, increasing by a net of 2,500 to over 24,000 thanks to its training and development initiatives that foster entrepreneurship within agents. Beyond the Border, a program Fubon Life has implemented for years, continued to increase access to insurance in underserved urban and rural communities. The program’s service locations played a key role
in strengthening and supporting local communities through insurance and other support services.
Fubon Life has a wide range of products on offer to address the specific needs and life situations of different age groups. It begun a program that rewards policyholders with a discount on premiums based on the number of steps they take, and promoted a small whole life insurance policy that covers final expenses to ensure a dignified departure for older people. In light of the risk of insufficient insurance coverage in young adults, Fubon Life introduced a 10-year term plan that allows young people to tailor their own insurance policy with optional life, health and personal accident riders at affordable rates.
Personal touch is the most important aspect of Fubon Life’s business. One example that combines technology and the human touch is its Mobile Sales 3.0 Program, which improves the digital literacy of its sales representatives and empowers them with the latest technology to engage effectively with customers. Fubon Life also employs video conferencing to resolve insurance claims, thus saving time, money, and other hassles associated with in-person meetings.
Promoting Healthy Living
With the population aging rapidly, Fubon Life is searching for new ways for society to collaborate in the fight against dementia. It has offered Bracelet of Love, or ID bracelets that help dementia patients be returned to their carers or homes, to over 2,300 seniors to date in partnership with the Federation for the Welfare of the Elderly. Its funding was combined with smaller donations raised from the public to support searching for wandering and missing elders. It mobilized nearly 1,000 dementia-trained students to volunteer their time teaching table games as playing games helps seniors improve brain health and keeps them engaged. Fubon Life also expanded its support of sports events—which in the past have involved the hosting of the Super Cup tournament and sponsorship of the University Basketball Association—to include senior basketball games to encourage the public, especially the elderly, to keep up exercise habits.
3.
2017 Annual Report
14
Taipei Fubon Bank
1. Taipei Fubon Bank and Taiwan Mobile have launched Fubon Lucky Money, a feature that allows users to send digital envelopes of money.
2. Taipei Fubon Bank signs a syndicated loan agreement for US$660 million with Follow International Limited as lead arranger of the deal.
3. Taipei Fubon Bank enhances banking experience by optimizing its retail network and integrating smart technology into its branches. 1. 2.
3.
A Year of Operational Progress
Taipei Fubon Bank delivered a strong performance for 2017 with net profit of NT$16.78 billion, up 16% from the prior year. The bank’s assets increased 12% to NT$2.3553 trillion as of the end of last year.
Taipei Fubon Bank made good progress across the main lines of business in 2017. It saw accelerating growth in its SME lending and overseas banking operations, which has resulted in improved profitability. It increased its customer base by leveraging a wealth of data gathered and analyzed by big data tools. Its sales of investment products rose significantly due to its ability to provide asset allocation advice that balances expectations for returns against the need for capital preservation. Its mortgage loan balances continued to grow amid improving sentiment in the housing market. The bank remained Taiwan’s largest credit card issuer in terms of spending per active credit card.
With excellence demonstrated across a broad range of products, segments and markets, Taipei Fubon Bank was honored by leading financial media and industry publications domestically and internationally, including Euromoney, Wealth magazine and CommonWealth magazine, in the past year.
Taipei Fubon Bank continues to expand overseas in order to broaden its geographical footprint and client coverage. Its operations outside of Taiwan include five branches in Hong Kong, Singapore and Vietnam, and a China-based subsidiary bank, Fubon Bank (China). The Taiwan regulator has approved the bank’s application to establish a representative office in Indonesia, which represents an important step on its way to serving ASEAN’s burgeoning economies.
Integrating FinTech into Everyday Life
With Taiwan gradually migrating towards a cashless society, Taipei Fubon Bank is building and improving its digital channels for delivery of banking services. It has leveraged blockchain-based technology and the popularity of social media in its development of a peer-to-peer payment feature called Fubon Lucky Money. The feature is built within Taiwan Mobile’s messaging app M+ to enable users to send and receive digital red envelops, or cash gifts, across the M+ platform. Another example of the convergence of mobile and banking is Wali, a digital wallet that keeps EasyCard, a popular contactless stored value card, in one app. Developed jointly by
Taipei Fubon Bank, Taiwan Mobile and EasyCard Corporation, Wali allows users to pay for public transit, parking, and purchases at select retailers using a virtual EasyCard on their smartphone, with the EasyCard linked to a credit card to automatically add value. This innovative payment method—the first of its kind in Taiwan—brings the purchase process to a next level of ease, convenience and personal comfort.
An Added Degree of Human Touch
In the past year, Taipei Fubon Bank has reiterated its value proposition: a 360-degree service plus one extra degree of human touch. It seeks to optimize each point of contact customers have with the bank by rethinking how its products, processes, platforms and personnel can be more customer-focused. Taipei Fubon Bank also continues the renovation of its branches as part of a broader effort to overhaul its existing retail network. The transformation reflects a renewed commitment to serving clients in central and southern Taiwan, in particular owners of small and mid-size companies. The bank’s new branch design, with its enhanced space, simplified transaction processes and advanced technology, has made banking a more enjoyable experience.
Towards Sustainable Growth
Looking ahead to 2018, Taipei Fubon Bank plans to take a series of strategic actions that will further its goal of becoming one of Asia’s leading banks. These actions are focused on advancing green finance and supporting sustainable banking practices; strengthening its overseas operations and combining its regional scale with a local focus and expertise; seeking partnerships with private equity funds to grow its international financing business; and reinforcing customer focus through a complete set of products and services.
2017 Annual Report
15
Fubon Bank (Hong Kong)
1. Opening of Fubon Bank (Hong Kong) Kowloon Main Branch and Commercial Banking Centre
2. Fubon Bank (Hong Kong) launched a new branding campaign carrying the theme “THE FUBON EXPERIENCE”.
3. Fubon Bank (Hong Kong) was awarded the Banking & Finance Awards 2017— Excellence Award for Commercial Finance Solutions by Sky Post
2.
1.
3.
Pursuing Customer-Centric and Prudent Growth Strategy
Benefiting from the positive global economic sentiment, better trade performance, low interest rate environment and strong equity and property market performance, the Hong Kong economy expanded remarkably in 2017. Notwithstanding the improved economic condition, Fubon Bank (Hong Kong) reported a net profit of HK$583 million for the year ended 31 December 2017, representing a year-on-year decrease of 8%. The decline in profit was mainly due to a decrease in non-interest income and a dilution loss arising from the reduction of shareholding in Xiamen Bank in 2017. Return on average equity and return on average assets were 4.81% and 0.60% respectively. The Bank’s operating profit after impairment losses rose 20% to HK$516 million.
Net interest income rose 4% to HK$1,216 million, mainly through the expansion of loan portfolio and debt securities investment portfolio. Total non-interest income fell 24% to HK$322 million. The decline was mainly attributable to the decrease in insurance services income and higher mark-to-market losses on foreign exchange swaps. Operating expenses decreased by 1% to HK$950 million. Total impairment losses decreased significantly by 65% to HK$72 million when compared with 2016.
The Bank’s shareholding in Xiamen Bank was diluted from 19.99% to 15.78% after two private placements of additional share capital to new strategic investors by Xiamen Bank in June and September 2017 respectively. As a result of the shareholding dilution, the Bank recognized a deemed disposal loss (af ter tax) of HK$55 mil l ion. In November 2017, Fubon Financial Holdings agreed to purchase from the Bank its entire
shareholding in Xiamen Bank. The transaction is now pending the necessary regulatory approvals.
The Bank’s total assets increased by 3% to HK$98 billion as of end-December 2017. Gross advances to customers grew 10% to HK$48 billion. On 29 December 2017, the Bank issued US$193 million undated non-cumulative subordinated Additional Tier 1 Capital Securities, which were fully subscribed by Fubon Financial Holdings. This issuance strengthened the Bank’s capital position and allowed for further business growth. As of end-December 2017, the Bank’s common equity tier 1 capital ratio, tier 1 capital ratio and total capital ratio were 13.08%, 15.42% and 19.42% respectively.
Award-winning Financial Services
During the year, Fubon Bank (Hong Kong) extended its iBranch network to Kowloon and the New Territories by opening iBranches in Mongkok and Shatin. Furthermore, the Bank launched its first Commercial Banking Centre at the Kowloon Main Branch to expand its SME banking activities and provide comprehensive financial services to its SME customers. The Bank’s efforts in expanding its penetration into the SME market were recognized by the Banking & Finance Awards 2017 and received the Excellence Award for Commercial Finance Solutions from Sky Post. The Bank was also named the Credit Card Usability Outstanding Performer by Bloomberg Businessweek (Chinese Edition) in the Financial Institution Awards 2017. To strengthen its brand image and market position, the Bank launched a new branding campaign featuring the world snooker champion Miss Ng On Yee in December 2017.
The Fubon Experience
In the face of a rapidly evolving market environment, Fubon Bank (Hong Kong) will continue to enhance customer engagement and pursue a prudent growth strategy to strengthen its local franchise. The Bank remains committed to upgrading its digital platforms and service delivery channels through investments in information technology and infrastructure, aiming to provide its customers with the “FUBON EXPERIENCE” that meets the needs of today’s Hong Kong consumers and business communities. Together with a diverse range of products and services, the Bank wishes to establish itself as a quality, reliable and trusted banking partner.
2017 Annual Report
16
1.
2. 3.
Fubon Bank (China)
Navigating a Challenging Market
The Chinese banking sector faced a challenging regulatory environment in 2017 due to deleveraging campaigns and tightened controls over risks in the financial markets. Against this backdrop, Fubon Bank (China) refocused on its core customer base—Taiwanese-owned businesses and SMEs. It made significant advances in the areas of internet finance, personal loans and syndicated lending, and became the first Taiwanese-owned bank to operate on a full banking license after receiving the RMB retail license. In 2017, Fubon Bank (China) further strengthened its balance sheet and ended the year with assets of 71.723 billion yuan, a loan balance of 29.206 billion yuan and a deposit balance of 44.529 billion yuan. Its net profit reached 220 million yuan for the year, and its non-performing loan ratio dropped by 0.16 percentage point to 1.44% due to enhanced risk management. The financial strength of Fubon Bank (China), as revealed by various indicators, put the bank ahead of most of its Taiwanese- and foreign-owned peers.
Renewing Commitment to Serving the Economy and
Taiwanese Clients
The Second Third-Year Development Plan launched by Fubon Bank (China) in 2017 puts special emphasis on serving the economy and facilitating financial cooperation between Taiwan and mainland China. Last year, the bank launched credit guarantee products in a tie-up with a microfinance credit guarantee fund in Shanghai to facilitate lending to Taiwanese corporations. It also increased its financing support for China’s home-grown SMEs that may otherwise be unable to access credit because of a lack of collateral. Due to its expertise and ability to deliver capital in scale, Fubon Bank (China) became the only Taiwanese bank mandated by China Banking Association and China Development Bank to lead-arrange syndicated loans for financing One Belt, One Road-related investment projects. The success of the loans it lead-managed last year resulted in improved return on capital and a greater presence in the syndicated loan market.
Exploring Internet Finance Opportunities through Partnerships
Fubon Bank (China) is the first foreign-owned bank in China able to create a seamless omnichannel banking experience. In the past year, the bank further improved its deliveries of smartphone
banking, internet banking, WeChat banking and payment solutions to meet growing demand for internet f inance and third-party payments. It also explored the use of big data in risk management and applied mobile technology to on-site verification of a loan applicant’s physical location and business operation. By digitally enabling the due diligence process, it achieved faster turnaround time for loan approvals, ensured more accurate loan applications and lowered lending risk. In order to expand its online customer base, it struck important partnerships with leading internet finance platforms.
Fubon Bank (China) operates a network larger than any Taiwanese bank with 25 branches and offices across China. The bank opened a branch in Wuhan and started preparations for a new branch in Xi’an in late 2017 as part of a broader effort to participate in the infrastructure development of central and western China and enable economic progress in those regions.
An Advocate of Social Responsibility
Fubon Bank (China) implements various programs and initiatives to fulfill its parent group’s mission of contributing to the common good, with the Shanghai Fubon Charity Foundation being its main platform. In 2017, it increased its focus on youth with scholarships/grants to Peking University and Duke Kunshan University, cross-strait youth exchange programs and initiatives that empower young people to develop their leadership potential. It also continued its support of vulnerable individuals and groups by reaching out to seniors with little family and social support, funding restoration of schools damaged by earthquakes in Yunnan Province, and organizing a book donation drive for rural libraries.
1. Fubon Bank (China) inaugurates a new building of an earthquake-hit school in Ludian County of Yunnan Province, China.
2. Fubon Bank (China) has been mandated by the China Banking Association and Ch ina Deve lopment Bank as a lead arranger of syndicated loans for One Belt, One Road-related projects. President Dennis Chan speaks at the project forum.
3. Fubon Bank (China) opens a new branch in Wuhan, expanding its national footprint to central China for the first time.
2017 Annual Report
17
Fubon Insurance
1.
2. 3.
1. Fubon Insurance wins six gold and two silver awards–the most for a P&C insurer–at the 2017 Taiwan Insurance Excellence Award.
2. The headquar te r bu i ld ing of Fubon Insurance earns an Excellence Award at the Taipei Energy Conservation Leadership Awards.
3. Fubon Insurance is the of f ic ia l P&C insurance par tner of the Taipei 2017 Universiade.
Continued Profit Growth in 2017
Fubon Insurance wrote a record NT$36.2 billion in premiums last year, up 9.2% from the prior year, by leveraging its parent group’s strong market position to drive insurance sales. The insurer held its No.1 position for the 36th year running in the non-life insurance market with 23.2% market share. Results for 2017, with net profit of NT$3.63 billion and earnings per share of NT$11.42, reflected the effects of prudent underwriting practices, disciplined investment strategies and rigorous risk management. Fubon Insurance’s strong earnings capacity has positioned the company to deliver consistently superior performance while maintaining a commitment to protecting policyholder interests.
The emphasis Fubon Insurance has placed on governance and innovation led to numerous awards in 2017. It received the most awards for a P&C insurer at the Taiwan Insurance Excellence Award, with six gold and two silver awards that highlighted achievements in philanthropy, client service and risk management. Fubon Insurance was voted the best P&C insurance company in a business opinion poll and again selected by finance graduates as the best company to work for. Another noteworthy honor was the Best Initiative in Innovation Award presented by The Asset in recognition of the company’s use of telematics to help business owners monitor the safety of their fleets.
Providing Protection against Loss
Fubon Insurance is committed to helping its corporate clients manage risks by increasing their knowledge of risk prevention and preparedness. Its expertise in disaster recovery has helped companies reduce the frequency and severity of unexpected events, thus limiting the economic, social and environmental impact for the affected business and society.
Fubon Insurance has contributed to Taiwan’s economic progress and stability by protecting some of the most vulnerable individuals and groups. It provides affordable, basic coverage for low-income people through microinsurance projects. The insurer also helps reduce losses in unharvested crop or fish stocks due to extreme weather, with three insurance schemes designed for rice and pear growers and a weather index insurance policy tailored for fish farmers. Fubon Insurance paid claims on damages caused by a sudden, severe cold spell last year soon after it rolled out the new service, underlining an urgent need for coverage in the agricultural and farm-fishing industries.
A Growing Overseas Presence
Fubon Insurance operates a growing international network including subsidiaries in China and Vietnam, insurance brokerage units in Thailand and the Philippines, and outposts in Beijing, Malaysia and Indonesia. Fubon Insurance (Vietnam), one of the two subsidiaries of Fubon Insurance, has head office in Ho Chi Minh City and branches in Hanoi, Binh Duong and Dong Nai. The company’s written premiums in 2017 were 369.7 billion dong, up 29.2% year-on-year. Fubon Insurance (Vietnam) has been a trusted partner for Taiwanese-owned and Vietnamese businesses, serving their protection needs with a combination of local focus and deep expertise.
In China, Fubon Property & Casualty Insurance has 61 offices in Xiamen, Chongqing, Liaoning and Dalian. The insurer ranked seventh among China’s 22 foreign-owned P&C insurers last year with premiums of 1.07 billion yuan, up 1.0% year-over-year. In addition, it took fourth place in a ranking of corporate governance performance of foreign P&C insurers and reinsurers by the China Insurance Regulatory Commission, and received high claims satisfaction scores in auto insurance surveys.
Reducing paper consumption and energy use is central to Fubon Insurance’s commitment to caring for the environment. It held 41% market share in Web-based P&C insurance transactions in 2017 by processing over 1.03 million online applications for insurance coverage. It also stepped up efforts to manage carbon emissions by having its headquarters building certified to ISO 50001 and obtaining a verification of greenhouse gas inventory from BSI Group for all of its business premises. The insurer’s green initiatives were recognized with an Excellence Award at the Taipei Energy Conservation Leadership Awards last year.
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Fubon Securities
1. 2.
3.
1. Fu b o n A s s e t M a n a g e m e n t d e b u t s Taiwan’s first ETF that tracks the TWSE Corporate Governance 100 Index.
2. Fubon Securities President Leo Cheng accepts three top awards at Weal th Magazine’s 2017 Wealth Management Award.
3. A n i nves tment con fe rence he ld by Fubon Securities provides insight into opportunities in the markets of Japan, Taiwan and India.
A Year of Progress
A brightening economic outlook globally and domestically, coupled with ample liquidity, corporate earnings growth and a halving of taxes on day trading, provided a favorable backdrop for stocks in 2017. Fubon Securities further strengthened its position as one of Taiwan’s top three prime brokers, with a retail brokerage market share of 6.21%. It executed NT$188 billion worth of trades in foreign stocks, up from NT$153.5 billion in the prior year. The number of new warrants it issued reached 1,480, giving it a market share of 5.2%. More than 18,500 Fubon Securities customers have made regular contributions to their investment accounts to date, holding NT$25.3 billion in total ETF assets.
Aside from prime brokerage services, Fubon Securities offers strategic advisory services and capital-raising solutions across the equity and debt markets. In 2017, it was ranked the second-largest stock broker and underwriter in the Emerging Stock Board. Fubon Securities’ role in the landmark deals of the year was recognized with distinctions including The Asset’s Best Equity-linked Deal in Taiwan and Top Investment House for Taiwan Dollar Bonds, and Global Finance’s Best Investment Bank in Taiwan. The company was also honored by the Taipei Exchange for its contribution to market making in government bonds for the third consecutive year.
A Diverse Range of Investment Options
Fubon Asset Management, the asset-management arm of Fubon Securities, grew its client assets by 15% to NT$121.4 billion in 2017. It launched 10 new funds during the year, including a bond ETF, a preferred stock ETF, and a first-of-its-kind ETF that tracks the performance of a local corporate governance index. The firm’s fast-growing ETF lineup drove its foreign ETF assets up 18% to NT$67.3 billion, and its flagship Fubon SSE 180 Leveraged 2X Index ETF became the most traded ETF with NT$31.4 billion in turnover last year. Fubon Futures, the futures brokerage unit of Fubon Securities, reported a 57% growth in net profit. Its managed futures business had the most assets under management among all peers. Its leadership and commitment to advancing the development of Taiwan’s futures market were recognized by the Futures Diamond Award for a third straight year.
With the growing internet and mobile usage, Fubon Securities is looking for innovative ways to serve its clients. Last year, it started
sending to clients tailored product recommendations through push notifications, based on the information gathered from its analytics and CRM tools about customers’ preferences, behaviors and past interactions with the firm. It also launched automated investing services, known as robo-advisors, which offer portfolios in line with each investor’s risk tolerance and specific financial objectives.
Balanced Growth across Lines of Business
In the year ahead, Fubon Securities will focus on the two pillars of its business—brokerage and investment—to ensure the innovative and tailored service that defines its brand. For Fubon Asset Management, its top priorities are to invest in its platforms, grow its asset base and increase collaboration with other members of its holding company. Fubon Securities Investment Services, whose team of research analysts covers a wide range of economies, sectors and companies in Greater China, will continue to provide the critical insights needed to support the stock brokerage, proprietary trading and investment banking operations of Fubon Securities.
Fubon Securities’ Greater China service network currently comprises subsidiaries and offices in Taiwan, a Hong Kong-based stock brokerage subsidiary, and a newly established equity investment subsidiary in Xiamen, China. It continually looks for opportunities to form or invest in Chinese brokerage firms that will help it further broaden its service offerings and client coverage across the region. The company is also exploring the potential of emerging Asian countries with relatively developed capital markets and attractive growth prospects in order to further extend its reach throughout Asia.
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Investment Management Group
1.
2. 3.
1. A groundbreaking ceremony takes place for a mixed-use high-rise building at lot A25 in Xinyi District, Taipei City.
2. A groundbreaking ceremony takes place for a hotel complex on Linsen South Road with Fubon Life being the property’s owner.
3. The Fubon Dunnan Building is named a Gold Winner in the Intell igent Green Building Design category of the TIBA Awards 2017.
Fubon Life and Fubon Insurance
Staying ahead of Markets
The world economy continued on a steady growth path in 2017. The U.S. Fed raised interest rates, as widely expected, and began reducing its balance sheet in October. A sweeping overhaul of the U.S. tax code, which includes a reduction of the corporate tax rate, boosted U.S. stocks to record highs. The Eurozone’s structure remained intact overall after a series of elections across Europe, and conclusion of the first phase of Brexit negotiations helped reduce the markets’ vulnerability to political risks. The uncertainty created by geopolitical tensions in Northeast Asia remained unsettling for global investors.
During the past year, the investment teams of Fubon Life and Fubon Insurance continued to deliver strong returns through their proactive approach to portfolio management. Fubon Life’s investment income set a record of NT$125.6 billion while its total investible funds rose 9% annually to NT$3.4 trillion. Fubon Insurance’s investible funds grew steadily, reaching NT$77.2 billion at the end of 2017.
Looking Ahead
2018 will likely be a year of slow growth, benign inflation, monetary tightening and new leadership appointments at the world’s major central banks. The series of incremental rate hikes the U.S. Fed has been making and the U.S. government’s tax overhaul will provide support for corporate earnings and prompt U.S. multinationals to bring foreign profits back to their home country, in turn boosting U.S. economic growth. Italy’s general election and further Brexit negotiations will be two of the most important political events for the European Union in 2018. China is expected to continue its One
Belt One Road initiative, supply-side reforms and other policies designed to support more sustainable development.
Domestically, the Central Bank of the Republic of China (Taiwan) is expected to leave its monetary policy unchanged in the first half of 2018 given low growth and inflation expectations. Meanwhile, movements in the exchange rates of the NT dollar are heightening concerns about the impact on exports and earnings, which are keys to driving growth in the Taiwan economy.
While positive sentiments seem gaining grounds due to continued improvement in the macro environment, U.S. economic and trade policy actions, monetary stance of the world’s leading central banks, varying strength of countries' fundamentals and geopolitical developments may add uncertainty to global growth prospects.
Moderate global growth and a quickening pace of interest-rate normalization will create unique opportunities as well as challenges in the coming year. The group will pursue a balanced allocation of growth stocks and high-yielding dividend stocks, maintain diversif ied exposure to f ixed income, and take a disciplined approach to managing foreign exchange risk in order to achieve sustainable investment returns.
Direct Investment
Pursuing Profitable Opportunities
The Investment Management Group’s direct investment division aims to capitalize on the opportunities presented by Taiwan’s transition toward a knowledge-based, service-driven economy by establishing business ventures and investing in high-potential private companies, with a particular focus on the healthcare, information technology, cultural and creative, renewable energy, infrastructure and financial industries.
As of December 2017, the group had NT$7.024 billion in direct investment including NT$2.14 billion in biotech and healthcare, NT$710 mill ion in infrastructure, NT$1.376 bill ion in creative industries and media channels, NT$392 million in f inancials, NT$490 million in venture capital, NT$716 million in energy and environmental engineering, NT$305 million in hospitality, NT$275 million in information technology and e-commerce, NT$271 million in textile and NT$349 million in others.
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Fubon Sports & Entertainment
1. 2.
3.
1. Fubon Sports & Entertainment enters into a lease agreement with the Xinzhuang Baseball Stadium.
2. The Fubon Guardians kick off the spring training season.
3. The profile picture of the Fubon Braves for the 2017-18 SBL season
Fubon Sports & Entertainment is a subsidiary of Fubon Financial Holding Venture Capital and a member of Fubon Financial Holdings. It owns and operates two sports franchises, the Fubon Braves and the Fubon Guardians, making it the only company that owns teams at the highest level of sports in Taiwan in both Super Basketball League (SBL) and Chinese Professional Baseball League (CPBL).
The Fubon Braves: Championing the Sport of Basketball
Fubon Sports & Entertainment has managed the team in line with the best practices for a professional sports franchise. The team’s desire to break new ground and surpass the limits is evident in its slogan: “Brave On.” The Fubon Braves are known not only for their resilience on the basketball court, but also for their wholesome brand image, high-impact marketing and strong engagement with their fan base. During the 14th season of SBL, a theme night hosted by the team registered the highest attendance of all games in that season. In the off-season last year, a series of exhibition games in Malaysia and Macau, where the Fubon Braves played against basketball clubs from China, South Korea, Japan and Malaysia, provided the players an opportunity to hone their skills and gain international exposure. Inspired by Fubon Financial Holdings’ international ambitions, the Fubon Braves has dreams and aspirations of becoming one of Asia’s leading basketball franchises.
The Fubon Braves are committed to supporting the development and growth of youth basketball. Highlights of the team’s grassroots initiatives include sponsorship for high school and college basketball leagues; charity basketball events held together with the Fubon Charity Foundation in rural areas; and summer camps designed to teach the fundamentals of basketball and help youth develop a lifelong passion for the game. The Fubon Braves also volunteer their time toward various charitable causes in order to reach out to younger generations and communicate to them positive values of life.
The Fubon Guardians: Inspiring Passion for the Game of
Baseball
In September 2016, Fubon Sports & Entertainment signed an MoU with EDA Sports and Entertainment to take over the EDA Rhinos baseball team. The EDA Rhinos were renamed the Fubon Guardians in November of the same year, with the team taking to the field in 2017 with a new drive and passion.
The name Fubon Guardians signifies defending the unprotected, much in the same way Fubon Financial Holdings safeguards the interests of all its clients, employees and the public at large. Moreover, it epitomizes Fubon’s fearless, highly-motivated staff.
Fubon Sports & Entertainment entered into a 10-year lease agreement with the Xinzhuang Baseball Stadium on July 20, 2017. The Fubon Guardians will play all of its 60 home games for 2018 in this venue starting from January. The team’s new slogan, “Guardians of the North,” reflects its goals of empowering the communities in the Taipei metropolitan area and demonstrating leadership both on and off the field.
Fubon is a long-time supporter of baseball. It has sponsored amateur baseball team the Fubon Bulls since 1993 and hosted the Fubon Baseball Little League Championship for four years running. Much like its parent company, the Fubon Guardians plan and participate in events that create positive community contributions such as home games, charitable events, baseball camps and international tournaments. From grassroots initiatives, support for amateur baseball to ownership of a professional club, Fubon has demonstrated, and will continue to demonstrate, a commitment to the promotion of baseball in Taiwan.
Promoting Positive Energy through Sport
Fubon Sports & Entertainment has served as Fubon Financial Holdings’ main platform for participating in the sport and recreation industry. In the year ahead, guided by its parent company’s corporate motto “Positive Energy,” Fubon Sports & Entertainment will continue to unite people and drive positive change through the power of sport.
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Dynamic Fubon Creating a Common Good
Changing the World One Step at a Time
Fubon Financial Holdings acts as a “social catalyst,”
embracing corporate social responsibility. Through
ethical management practices and forward thinking,
we have emerged as a positive force in the financial
sector, committed to creating a common good.
Fubon Charity Foundation
Fubon Cultural and Educational Foundation
Fubon Art Foundation
Taipei Fubon Bank Charity Foundation
Shanghai Fubon Charity Foundation
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Fubon Charity Foundation
The Fubon Charity Foundation was the first philanthropic organization founded by Wan-Tsai Tsai, founder of the Fubon Group, with a vision to give back to society. For 29 years, the foundation has committed itself to supporting vulnerable individuals and groups and uniting Fubon Group employees around efforts to promote socially-responsible values.
The highlights of 2017 included:“Making Friends with Love”: Funds of NT$112,392,000 were raised to help 15,795 students continue their studies.“Exchanging Points for Love”: Funds of NT$888,950 were raised for 13 charities.“Emergency Relief”: Aid efforts taken by the foundation included support for individuals with emergency situations, a medical emergency fund, financial aid to the victims of the Jiji earthquake, tuition assistance for orphans of rescue workers who died on duty during Typhoon Morakot, a micro-insurance program, and food distribution for homeless people. Funds of NT$23,038,176 were contributed to support 16,319 individuals and groups.“Make a Wish, Build a Future”: The campaign granted the wishes of 9,003 disadvantaged children, and mobilized students in 28 schools to volunteer in their community.“Fubon Social Welfare Ambassador”: The initiative benefited 106 nonprofits that provide social and community services.“Joy of Giving Blood”: Fubon Group employees participated in the annual blood drive with 5,168 units of blood collected. The blood drive was honored by the Taiwan Blood Services Foundation for the ninth straight year.“Fubon Volunteer Association”: 3,713 volunteer attendance and 22,913 hours of service were recorded in the year. The association's branches involved 633 volunteers in 24 events, including visits to the needy, travel for charity, civic education programs and the “Fubon Social Welfare Ambassador.”
Going forward, the foundation will continue to provide opportunities and resources to support individuals and families underserved by existing institutions. It also will promote sustainability to achieve the best outcome for society.
1. 2.
1. “Fire Up,” a charitable baseball camp hosted by the Fubon Charity Foundation, instills a passion for baseball in camp participants.
2. Fubon Braves players help with the wrapping and mailing of gifts for an event that grants the wishes of needy children.
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Founded in March 1990, the Fubon Cultural & Educational Foundation is committed to providing our youth with opportunities of growth and development. In 2017, its efforts were focused on youth empowerment, film preservation and education and collaboration with members of the Fubon Group.
The foundat ion’s youth empowerment programs a im at encouraging the youth’s par ticipation in public issues. The programs include Young Voice Workshops, Young Dreamers Project and aboriginal education programs, with a total number of 2,267 participants in 2017. The foundation is also dedicated to preserving Taiwan’s film heritage through collaborative film restoration projects. The foundation continues to put efforts in image education with the Rolling Film School Program, the main objective of which is to open up a more diversified experiences with film images and eventually to form the ability of independent thinking. By giving f i lm courses, developing and translating teaching materials and building an online database, the Rolling Film School reaches out to more young people to raise awareness of images. 5,985 students have benefitted from the program.
In 2017, the Fubon Cultural & Educational Foundation leveraged the resources of the Fubon Group to achieve its objective of contributing to the public benefit. Let’s Talk about Media, a radio show produced by the foundation, served as a vital platform for dialogue. An online channel that turns its radio broadcasts into Internet programming attracted over 4.16 million viewers in the year. The Future Tycoon Outreach Program helped 2,354 school children to learn about basic money skills, and increased teachers’ level of financial literacy through workshops. Excursions organized by Fubon EDU educated Fubon Group employees and their families about the benefits of sustainable farming, with a total 4,206 hours of attendance.
1. 2.
1. Fubon EDU, an initiative on sustainability, helps Fubon employees learn about environmentally-friendly agricultural practices.
2. The Young Voice Workshop empowers young people to think critically about and take action on public issues.
The Fubon Art Foundation celebrates its 20th anniversary with a special exhibition.
Fubon Cultural & Educational Foundation
Fubon Art Foundation
The Fubon Art Foundation is committed to integrating art into daily life and unleashing people’s creative potential. It seeks to convey cultural values, ideas and style through exhibitions, lectures, hands-on activities, gift-giving and printed literature. It also strives to create a rich artistic environment by revitalizing office space and public venues with installation artworks.
The foundation celebrated its 20th anniversary in 2017 with four projects inspired by the four routines and responsibilities that accompany the coming of age in ancient Chinese tradition: eliminate weaknesses, generate ambition, choosing friends, studious. The projects involved the recreation of batting helmets for charity fundraising, experimentation of design with trash bags, documentaries on celebrities that offer a glimpse of their lives in their twenties, and the release of a digital archive that chronicles the exhibitions of Very Fun Park. They all shared a focus of creating engagement with art that transcends boundaries, enriches relationships and nurtures self-expression.
2017 also marked the third year of the foundation’s collaboration with its hotel partner, Folio Daan Taipei, to rejuvenate public spaces. The hotel has embraced the idea of a wall-less museum, turning its venue into an art experience with displays of artworks by its resident artists. By hosting a gift shop that features thoughtfully curated craft items and artfully designed festive installations, the hotel also serves as a platform for supporting Taiwan’s vibrant artisan community.
Another annual highlight was Fubon Forum, where 795 speakers have shared their thoughts on the aesthetics of everyday life in 1,815 lectures and attracted an audience over 180,000 since its inception. The seven public lectures and fee-charging classes organized in 2017 featured a prestigious list of guest speakers from diverse cultures and backgrounds.
In the year ahead, the Fubon Art Foundation will continue with its efforts to increase public participation in arts and explore exchange opportunities that will lead to a world-wide appreciation of the unique cultural heritage of Taiwan.
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2017 Annual Report
1. 2.
1. Taipei City Mayor Ko Wen-Je participates in the celebration of the International Day of Persons with Disabilities.
2. The Taipei Fubon Bank Charity Foundation suppor ts family caregivers and links them to respite activities and support groups.
A charity auction held to support children in rural China
Taipei Fubon Bank Charity Foundation
Shanghai Fubon Charity Foundation
Since its founding, the Taipei Fubon Bank Charity Foundation has been working toward improving the welfare of seniors, caregivers, and people with disabilities. In 2017, it held eight outings for the seniors served by its sponsored adult day centers on the Double Ninth Festival. It also organized 228 support group meetings and respite events for 5,137 family caregivers. Recognizing the healing effects of music, the foundation brought music therapy to five senior centers with percussion instruments used to help seniors improve their physical health and social interactions with others. Introduction courses in music therapy were of fered to carers in the rural counties of Hualien and Pingtung. In its support for older people with Alzheimer’s and dementia, the foundation delivered community-based care services to residents in Hualien County, and built sensory rooms in nursing homes to slow the worsening of the diseases by stimulating patients’ visual, auditory and tactile systems.
The Taipei Fubon Bank Charity Foundation is committed to providing people with disabilities an equal opportunity to access arts activities and services. In 2017, it of fered talent training for people with hearing loss, and upgraded music equipment and supplies for the visually impaired. For its eighth year, the foundation hosted a presentation ceremony along with a concert to celebrate the winners of the Artistic Achievement Awards for the Disabled. The All Love Orchestra, an ensemble composed of past award winners, performed in six high schools, for an event marking the International Day of Persons with Disabilities, and at a performing arts center dedicated to people with disabilities. The ensemble also brought joy to veterans’ homes, nursing facilities and hospitals with their inspirational performances.
The Shanghai Fubon Charity Foundation was created with a mission to support low-income women and bring positive energy to where it is needed. In 2017, the foundation expanded its support of vulnerable individuals to include children in rural China so as to bring improved health, hope and warmth to their lives.
“Offer of Fracture Cover”: The foundation re inforced i ts commitment to protecting seniors against fractures caused in accidents, and expanded the area that it serves to include Suzhou City. It celebrated the Double Ninth Festival, also known as Senior’s Day, by giving gifts to the beneficiaries of the fracture cover.“Libraries in Rural Areas”: The foundation built libraries for a kindergarten in Maduo County, Golog Perfecture of Qinghai Province, as well as for a primary school in Xingwen County, Yibin Municipality of Sichuan Province, to provide children there with reading support.“Tuition Assistance”: The foundation contributed funds and resources to support rural schools in partnership with schools in Hubei Province and the cities of Nanjing, Tianjin and Beijing. Tuition assistance was provided to 49 school children and a specific class of students from disadvantaged backgrounds. In addition, supplies and computers were donated to eight underfunded schools.“Charity Book Sale”: The foundation joined hands with two branches of Fubon Bank (China), which are outfitted with large collections of books for public viewing, in a charity book sale that raised nearly 40,000 yuan to encourage reading habits in underserved communities.“Earthquake Recovery”: The foundation inaugurated a new building of an earthquake-hit primary school in Ludian County of Yunnan Province in November.
In the year ahead, the Shanghai Fubon Charity Foundation will build on its existing work to design programs and support for disadvantaged communities.
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Wan-Tsai Tsai
Founder and Former Chairman
Fubon Group
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Fubon’s Three Principles: Integrity, Diligence, Modesty
Fubon traces its roots to 1961 when Fubon Insurance, formerly known as Cathay Insurance, began operations as Taiwan’s first private P&C insurance company. Since then, Fubon has grown into one of Taiwan’s largest conglomerates with presence in most major sectors of the domestic economy.
In 1985, Mr. Wan-Tsai Tsai, the late founder of the Fubon Group, articulated three principles—integrity, diligence and modesty—to be followed at both the personal and corporate level. He defined integrity as the foundation for conducting oneself, diligence as the foundation for building entrepreneurship, and modesty as the foundation for cultivating one’s nature and dealing with people. Setting the example himself, Mr. Tsai had encouraged every employee to put these principles into action.
Through integrity, diligence and modesty, the group has laid the building blocks of success. For Mr. Tsai, integrity is exhibited by being trustworthy and using judgment and common sense in business decision-making. A financial company must strive to act with integrity as clients trust it to be a good steward of their assets. Without trust, a business cannot succeed. A highly-valued traditional virtue, diligence has been embedded in Fubon’s corporate culture and embraced by all employees, whose dedication and hard work enables Fubon to build leading positions in various markets. Modesty, in summary, is the quality of being humble, unpretentious, and showing leniency to others but not to oneself.
For more than half a century, Fubon has solidified its presence in Taiwan while actively gaining a foothold in other Asian markets. Fubon Financial Holdings is Taiwan’s second-largest financial holding company known for its market-leading, comprehensive range of f inancial services. Its subsidiaries rank among the top per formers in their respective sectors. In 2017, Fubon Financial Holdings again topped the industry with the best profit performance and remained the most profitable financial holding company in terms of earnings per share for nine years in a row.
Looking ahead, Fubon will continue to uphold its three principles and apply its four core values of integrity, sincerity, professionalism and innovation to guide management decisions. These standards of professional and ethical conduct create an obligation to develop the business for the long term, act responsibly as a corporate citizen, and bring positive energy to where it is needed. They also lay a strong foundation for continuing success as Fubon Financial Holdings advances its goal to become a first-class financial institution in Asia.
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Board of Directors
Chairman
Richard M. Tsai Fubon Financial Holdings
Vice Chairman
Daniel M. Tsai Fubon Financial Holdings
Independent Directors
Louis Cheung Managing Partner Boyu Capital
Ming-Je Tang Professor Department of International Business National Taiwan University
Shin-Min Chen Adjunct Professor Graduate Institute of National Development National Taiwan University
Chan-Jane Lin Professor Department of Accounting National Taiwan University
Jung-Feng Chang Research Fellow The First Research Division Chung-Hua Institution for Economic Research
Fan-Chih Wu Director Advancetek Enterprise Co., Ltd.
Directors
Chih-Ming Chen Commissioner Department of Finance Taipei City Government
Hsiu-Hui Yuan Commissioner Department of Legal Affairs Taipei City Government
Hsiu-Chu Liang Commissioner Department of Budget, Accounting and Statistics Taipei City Government
Jerry Harn President Fubon Financial Holdings
Eric Chen Chairman Taipei Fubon Bank
Howard Lin Vice Chairman Fubon Life
Steve T.H. Chen Chairman Fubon Insurance
Management Committee
Richard M. Tsai Chairman Fubon Financial Holdings
Daniel M. Tsai Vice Chairman Fubon Financial Holdings
Jerry Harn President Fubon Financial Holdings
Eric Chen Chairman Taipei Fubon Bank
Roman Cheng President Taipei Fubon Bank
Steve T.H. Chen Chairman Fubon Insurance
Howard Lin Vice Chairman Fubon Life
Benson Chen President Fubon Life
Gang Shyy Chairman Fubon Securities
Raymond Lee Chief Executive Officer Fubon Bank (Hong Kong)
Dennis Chan President Fubon Bank (China)
(Information above as of end of February 2018)
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Fubon Financial Holding Co., Ltd. Year of Founding: Dec. 2001 Chairman: Richard M. Tsai President: Jerry Harn Capital: NT$108.34 Billion 237 Section 1 Jianguo S Road Taipei Taiwan Te l : (8862) 6636-6636 Fax: (8862) 6636-0111 www.fubon.com
Fubon Life Insurance Co., Ltd. Year of Founding: July 1987 Chairman: Richard M. Tsai President: Benson Chen Capital: NT$82.97 Billion 108 Section 1 Dunhua S Road Taipei Taiwan Te l : (8862) 8771-6699 Fax: (8862) 8809-8889 www.fubon.com
* Aetna Life Insurance Company of America, Taiwan Branch was established in 1987 and then bought by ING Group in 2000 and renamed ING Life Taiwan. The branch became an ING Life subsidiary in 2006, which was later bought by the Fubon Group. Fubon Life was launched in 1993. The two insurers formally merged in 2009.
Taipei Fubon Commercial Bank Co., Ltd. Year of Founding: April 1969 Chairman: Eric Chen President: Roman Cheng Capital: NT$106.52 Billion 169 Section 4 Ren Ai Road Taipei Taiwan Te l : (8862) 2771-6699 Fax: (8862) 6606-9398 www.fubon.com
Fubon Bank (Hong Kong) Limited Year of Founding: Jan. 1970 Chairman: Daniel M. Tsai Chief Executive Officer: Raymond Lee Capital: HK$4.83 Billion 38 Des Voeux Road Central Hong Kong Te l : (852) 2842-6222 Fax: (852) 2810-1483 www.fubonbank.com.hk
(Information above as of end of February 2018) Fubon annual report is printed on heavy-metal-free paper and with eco-friendly soybean-based ink.
Copyright © 2018 Fubon Financial Holding Co., Ltd. All Rights Reserved. Printed in Taiwan 3/2018.
Fubon Bank (China) Co., Ltd. Year of Founding: March 1997 Chairman: Pei Li Hong President: Dennis Chan Capital: RMB 2.1 Billion 1-3F 5F 18-20F Oriental Financial Plaza Tower A 1168 Century Avenue Pudong Shanghai P.R.C. Te l : (8621) 2061 9888 Fax: (8621) 5840 9900 www.fubonchina.com
Fubon Insurance Co., Ltd. Year of Founding: April 1961 Chairman: Steve T.H. Chen President: Ben B.Y. Chen Capital: NT$3.18 Billion 237 Section 1 Jianguo S Road Taipei Taiwan Te l : (8862) 6636-7890 Fax: (8862) 2325-4723 www.fubon.com
Fubon Securities Co., Ltd. Year of Founding: July 1988 Chairman: Gang Shyy President: Leo Cheng Capital: NT$16.64 Billion 169 Section 4 Ren Ai Road Taipei Taiwan Te l : (8862) 8771-6888 Fax: (8862) 8771-6636 www.fubon.com
Fubon Securities Investment Services Co., Ltd. Year of Founding: May 1987 Chairman: Henry Lin President: Charles Hsiao Capital: NT$300 Million 108 Section 1 Dunhua S Road Taipei Taiwan Te l : (8862) 2781-5995 Fax: (8862) 2773-5601 www.fubon.com
Fubon Futures Co., Ltd. Year of Founding: May 1998 Chairman: Raymond Yang President: Phoebe Chang Capital: NT$1.4 Billion 3F 9 Xiangyang Road Taipei Taiwan Te l : (8862) 2388-2626 Fax: (8862) 2370-1110 www.fubon.com
Fubon Asset Management Co., Ltd. Year of Founding: Sep. 1992 Chairman: Philip Hu President: Ming M.C. Lee Capital: NT$2.27 Billion 108 Section 1 Dunhua S Road Taipei Taiwan Te l : (8862) 8771-6688 Fax: (8862) 8771-6788 www.fubon.com
Fubon Direct Marketing Consulting Co., Ltd. Year of Founding: Aug. 1997 Chairman: Jerry Harn President: Alex Yeh Capital: NT$145 Million 17F 9 Xiangyang Road Taipei Taiwan Te l : (8862) 2370-5199 Fax: (8862) 2370-5100 www.fubon.com
Fubon Financial Holding Venture Capital Corp. Year of Founding: Oct. 2003 Chairman: Howard Lin President: Mike Lin Capital: NT$4.66 Billion 108 Section 1 Dunhua S Road Taipei Taiwan Te l : (8862) 6606-9088 Fax: (8862) 8771-4697 www.fubon.com
Fubon Sports & Entertainment Co., Ltd. Year of Founding: Sep. 2007 Chairman: Daniel M. Tsai President: Chris Tsai Capital: NT$48 Million 108 Section 1 Dunhua S Road Taipei Taiwan Te l : (8862) 6606-9088 Fax: (8862) 8771-4697 www.fubon.com
* Taiwan Mobile Basketball was founded in September 2007 and renamed Fubon Sports & Entertainment in September 2014.
Fubon AMC Co., Ltd. Year of Founding: Aug. 2004 Chairman: Roman Cheng Acting President: Lobo Tsai Capital: NT$2.5 Billion 50 Section 2 Zhongshan N Road Taipei Taiwan Te l : (8862) 6618-0588 Fax: (8862) 6608-0166 www.fubon.com
