Taichung Commercial Bank Co., Ltd. · TWSE:2812
Taichung Commercial Bank — FY2018 Earnings Presentation
35 slides from Taichung Commercial Bank's earnings presentation, Mar 15, 2019
Slide 1: Taichung Commercial Bank 2018 Investor Conference
Stock No : 2812 Taichung Commercial Bank 2018 Investor Conference 2019.3.15 £% - . We fe a PRE QAP senses wa—en
Slide 2: Disclaimer
Disclaimer This presentation is provided by Taichung Commercial Bank(TCB).The information contained within is not reviewed or reviewed by any accountant or any independent third party. Users should read this material in conjunction with all other public financial and operational information filed
Slide 3: 2018 Achievements
2018 Achievements Exploit our market abroad, The branch of Labuan officially opening In order to open new southbound market , we invited Director-general of Labuan FSA Danial Mah Abdullah who hosted the opening ceremony of Labuan Branch on October 22 2018. The next day, we held the grand opening of
Slide 4: Agenda
Agenda 1 Financial Highlights 2 Financial Review 3 Financial Information 4 Appendix 4
Slide 5: 2018 Financial Highlight
2018 Financial Highlight Profitability Net Profit after tax 40 billions，10.32% growth over the same period last year。 EPS 1.18, 7.27% growth over the same period last year。 Asset quality NPL rate 0.45%、 Allowance for bad debt coverage rate 317.95%。 Capital adequacy Consolidated：Capital Ratio 13.01%
Slide 6: Agenda
Agenda 1 Financial Highlights 2 Financial Review 3 Financial Information 4 Appendix 6
Slide 7: Financial Review (NT$ Million)
Financial Review(NT$ Million) 2016 2017 2018 YoY Common stock capital 32,381 32,932 35,255 7.05% To t a l E q u i t y 41,382 43,402 47,824 10.19% To t a l A s s e t 622,549 656,490 684,159 4.21% PPOP 4,773 5,217 5,049 -3.22% Net income after tax 3,515 3,633 4,008 10.32% EPS(dollar) 1.09 1.10 1.18 7.
Slide 8: Profitability (NT$ Million, NT$,%)
Profitability (NT$ Million, NT$,%) Net Profit 4,008 3,633 3,515 2016 2017 2018 EPS(After tax) 1.09 1.10 1.18 2016 2017 2018 8
Slide 9: Proposal for the distribution of earnings (NTD)
Proposal for the distribution of earnings (NTD) Cash dividends Stock dividends 0.55 0.52 0.45 76.39% 64.29% 0.25 0.28 65.00% 0.17 35.71% 35.00% 23.61% 2016 2017 2018 2016 2017 2018 Dividend Per Share 0.72 0.70 0.80 Cash dividends 0.55 0.45 0.28 Stock dividends 0.17 0.25 0.52 Note：The proposal for th
Slide 10: Profitability (NT$ Million, NT$,%)
Profitability (NT$ Million, NT$,%) ROE(After tax) 8.64% 8.57% 8.79% 2016 2017 2018 ROA(After tax) 0.59% 0.57% 0.60% 2016 2017 2018 10
Slide 11: Change in Net Profit (NT$ Million)
Change in Net Profit (NT$ Million) 2017 2018 2017 2018 YoY 3.16% YoY 9.65% YoY -56.60% YoY 8.62% 10,675 10,348 4,638 4,270 5,131 5,626 947 411 Operation Opearting Provision Revenue Expense Profit before tax 11
Slide 12: Deposit breakdown (NT$ Hundred Million,%)
Deposit breakdown (NT$ Hundred Million,%) Total Deposit YoY 3.86% 5,892 QoQ 2.77% 5,824 5,733 5,673 5,679 523 529 Foreign currency 515 528 532 deposits YoY 2.72% QoQ -0.56% Time & 2,931 2,842 2,900 saving Checking & 2,804 2,796 deposits(loca Time & demand l currency) saving deposits(loca YoY 3.42% d
Slide 13: Loan breakdown (NT$ Hundred Million, %)
Loan breakdown (NT$ Hundred Million, %) Non-secured Secured 3,877 3,648 83.67% 84.61% 712 705 16.33% 15.39% 2017 2018 2017 2018 YoY By collateral Non-secured 712 705 -0.98% Secured 3,648 3,877 6.28% Secured by property 3,321 3,536 6.47% Secured by Letter of Guarantee 170 164 -3.53% Others 157 177 12
Slide 14: Loan Structure (NT$ Hundred Million,%)
Loan Structure (NT$ Hundred Million,%) Corporate Banking Consumer Banking Loan Structure (2018) 2,293 2,363 2,219 2,067 Corporate Consumer Banking Banking 51.57% 48.43% 2017 2018 2017 2018 YoY Corporate Banking 2,293 2,363 3.05% Consumer Banking 2,067 2,219 7.35% Total 4,360 4,582 5.09% 14
Slide 15: Loan Structure By Currency
Loan Structure By Currency(NT$ Hundred Million,%) NTD Loan Foreign Currency Loan Loan by 3,992 4,199 Currency 2018 Foreign Currency Loan 8.36% 368 383 2017 2018 NTD Loan 91.64% 2017 2018 YoY NTD Loan 3,992 4,199 5.19% Foreign Currency Loan 368 383 4.08% Total 4,360 4,582 5.09% 15
Slide 16: Consumer Banking-Consumption loans
Consumer Banking-Consumption loans (NT$ Hundred Million) Average Rate NPL Rate 4.56% 4.48% 0.52% 0.51% 110 85 Local Bank 3.39% 2017 2018 Note：Customption loans are not contain residential mortgage loans、loan of cash card、 credit card and debit card. 16
Slide 17: Loan breakdown (NT$ Hundred Million, %)
Loan breakdown (NT$ Hundred Million, %) Total Loan 4,582 YoY 5.09% 4,493 4,535 QoQ 1.04% 4,360 4,313 244 229 276 Corporate Consumption 266 252 YoY -13.91% Mortgage Loan QoQ -6.15% 12.44% 2.62% SME OBU 6.39% 1,831 1,842 YoY 4.13% 1,769 1,815 QoQ 0.60% 1,750 Other OBU YoY 13.13% Personal QoQ 5.78% Loa
Slide 18: LDR and Spreads
LDR and Spreads LDR Spreads Overall LDR NTD LDR FCY LDR Overall spread NTD spread FCY spread 79.89% 78.48% 77.59% 77.73% 2.45% 2.43% 2.44% 76.96% 79.10% 2.07% 2.11% 77.92% 77.04% 77.15% 1.77% 75.94% 1.72% 1.73% 1.73% 1.74% 71.47% 71.28% 71.38% 72.34% 66.00% 1.70% 1.69% 1.69% 1.67% 1.68% 4Q17 1Q18 2Q
Slide 19: TCB Bank's NIM
TCB Bank’s NIM(NT$ Hundred million,%) NIM and interest earning assets 1.28% 1.22% 1.23% 1.23% 1.24% 6,298 6,322 6,244 6,174 6,016 4Q17 1Q18 2Q18 3Q18 4Q18 19
Slide 20: Operating Expenses to Net Income
Operating Expenses to Net Income(NT$ million) Net Income Operating Expenses Cost-Benefit Ratio 57.50% 50.57% 53.66% 43.94% 49.54% 2,733 2,717 2,756 2,743 2,459 1,414 1,374 1,479 1,201 1,359 4Q17 1Q18 2Q18 3Q18 4Q18 20
Slide 21: Asset quality (NT$ Million, %)
Asset quality(NT$ Million, %) NPLs/Total Loans &NPLs Reserve/NPLs & Loan Reserve 69.01% -0.13 0.58% 378.28% 0.45% 344.14% 343.87% 317.95% 0.42% 0.42% 0.37% 248.94% 2,501 6,532 2,054 1,842 1,845 1,655 6,338 6,345 6,260 6,227 4Q16 2Q17 4Q17 2Q18 4Q18 4Q16 2Q17 4Q17 2Q18 4Q18 21
Slide 22: Fee Income Breakdown (NT$ Million, %)
Fee Income Breakdown(NT$ Million, %) Fee income YoY 9.71% YoY 9.33% 875 QoQ 1.01% 3,276 815 789 86 797 2,986 359 Others 729 84 Others 92 97 344 132 YoY 11.49% 87 QoQ 5.43% 620 191 128 169 435 Loans 122 Loans 223 YoY 38.52% QoQ 32.03% 809 196 770 199 207 183 Trust Trust YoY -8.04% QoQ -6.63% Insuranc
Slide 23: Wealth Management fee income (NT$ Million)
Wealth Management fee income(NT$ Million) Total 648 YoY 0.98% YoY 4.14% QoQ -7.88% 2,241 558 2,152 173 521 514 509 567 Mutual 146 Mutual Fund 612 Fund 135 113 YoY -32.33% QoQ -22.60% 167 Insurance & Insurance Securities & 434 1,488 Securities YoY 8.10% 333 374 347 QoQ -7.22% 1,437 321 Others Others
Slide 24: Profit of Subsidiary to TCB (NT$ Million)
Profit of Subsidiary to TCB (NT$ Million) Net Profit Taichung Taichung Bank Taichung Taichung Total Commercial Insurance Commercial Commercial after tax Bank Co. Brokers Co., Ltd. Bank Lease Bank Securities Enterprise Co., Ltd. 2017 3,378 256 32 (33) 3,633 2018 3,565.8 360 82 0.2 4,008 Lease Lease E
Slide 25: Capital adequacy (%)
Capital adequacy (%) Tier I Capital Ratio Tier II Capital Ratio Consolidated 12.68% 13.01% 10.96% 1.53% 1.22% 1.61% 11.15% 11.79% 9.35% 2016 2017 2018 Individual Tier I Capital Ratio Tier II Capital Ratio 10.25% 12.01% 12.35% 1.03% 0.70% 1.16% 10.98% 11.65% 9.09% 2016 2017 2018 25
Slide 26: Agenda
Agenda 1 Financial Highlights 2 Financial Review 3 Financial Information 4 Appendix 26
Slide 27: Balance Sheet (Individual)
Balance Sheet (Individual) NT$ Million 2016 2017 2018 YoY Assets： Cash and due from banks 99,539 44,066 46,740 6.07% Financial investment, net 77,450 158,984 163,891 3.09% Loans, net 423,901 429,656 451,729 5.14% A/R, net 4,075 6,329 5,028 -20.56% LT investments, net 4,498 4,735 5,225 10.35% Land, p
Slide 28: P&L (Individual)
P&L (Individual) NT$: Million 2016 2017 2018 YoY Net interest income 7,499 7,823 7,991 2.15% Net fee income 1,294 1,554 1,793 15.38% Others 985 971 891 -8.24% Total Operating Income 9,778 10,348 10,675 3.16% Operating expenses (5,005) (5,131) (5,626) 9.65% Pre-provision Profit 4,773 5,217 5,049 -3.2
Slide 29: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) NT$ Million 2016 2017 2018 YoY Assets： Cash and due from banks 100,323 45,123 47,644 5.59% Financial investment, net 77,742 159,651 165,027 3.37% Loans, net 425,166 430,858 452,595 5.05% A/R, net 9,802 13,658 12,781 -6.42% LT investments, net 131 128 153 19.53% Land, pre
Slide 30: P&L (Consolidated)
P&L(Consolidated) NT$: Million 2016 2017 2018 YoY Net interest income 7,787 8,186 8,434 3.03% Net fee income 2,272 2,449 2,846 16.21% Others 734 760 409 -46.18% Total Operating Income 10,793 11,395 11,689 2.58% Operating expenses (5,848) (5,915) (6,457) 9.16% Pre-provision Profit 4,945 5,480 5,232 -
Slide 31: Agenda
Agenda 1 Financial Highlights 2 Financial Review 3 Financial Information 4 Appendix 31
Slide 32: 2018 Achievements
2018 Achievements Long-term credit rating 2018 A-(twn) and the outlook is stable. Establishing the branches which located in Xindian Dist ,New Taipei city and Zuoying Dist Kaoshiung city. Quality improvement for operation and credit risk reduction by centralization of loan disbursement. Connected to
Slide 33: 2018 Operating result
2018 Operating result Participate in cooperation with a consortium of FISC (Financial Information Service Co.)to introduce “electronic bank confirmation” with block-chain. Winner of the joint credit information center “Golden Security Award” for four consecutive years and “Golden Inquiry award Award
Slide 34: 2019 Business Strategy
2019 Business Strategy Strengthen risk management. Compliance with the law. Leverage advantages. Expanding business. Improving the quality of personnel. Encouraging innovation. Digital financial environment. Sophisticated serving. 34
Slide 35: Thank You for listening.
Thank You for listening.
Taichung Commercial Bank — FY2018 Earnings Presentation on 6ix