Taichung Commercial Bank Co., Ltd. · TWSE:2812

Taichung Commercial Bank — FY2019 Earnings Presentation

35 slides from Taichung Commercial Bank's earnings presentation, Mar 31, 2020

  1. Slide 1: Taichung Commercial Bank 2019 Investor Conference

    Stock No ; 2812 Taichung Commercial Bank 2019 Investor Conference 2020.3.31 £% «2 r We e e a PRE QAP senses wa—en

  2. 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

  3. Slide 3: Agenda

    Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 3

  4. Slide 4: 2019 Financial Highlight

    2019 Financial Highlight Profitability • Net Profit after tax 4.32 billions, 7.78% growth over the same period last year. • EPS 1.16, 3.57% growth over the same period last year. Asset quality • NPL rate 0.31%、Provision for bad debt coverage rate 475.54%. Capital adequacy • Consolidated：Capital Rati

  5. Slide 5: Agenda

    Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 5

  6. Slide 6: Profitability

    Profitability Net Profit (NT$ Million) 4,320 +7.78% 4,008 +10.32% 3,633 2017 2018 2019 EPS (NT$) 1.18 -1.69% 1.16 +7.27% 1.10 2017 2018(Note) 2019 Note：The EPS of 2018 was adjusted retroactively as 1.12. The growth rate between 2018 6 and 2019 increases 3.57%.

  7. Slide 7: Proposal for the distribution of earnings (NT$)

    Proposal for the distribution of earnings (NT$) Cash dividends Stock dividends 0.52 0.52 0.45 0.25 0.28 0.28 65.00% 65.00% 64.29% 35.71% 35.00% 35.00% 2017 2018 2019(Note) 2017 2018 2019 Dividend Per Share 0.70 0.80 0.80 Cash dividends 0.45 0.28 0.28 Stock dividends 0.25 0.52 0.52 Note：The proposal

  8. Slide 8: Profitability

    Profitability ROA 0.64% 0.60% 0.57% 2017 2018 2019 ROE 8.57% 8.79% 8.72% 2017 2018 2019 8

  9. Slide 9: Change in Net Profit

    Change in Net Profit (NT$ Million) 2018 2019 2018 2019 YoY 4.08% YoY -1.05% YoY 16.06% YoY 9.25% 11,111 5,067 10,675 4,638 5,626 5,567 411 477 Operating Operating Provision Profit before tax Revenue Expenses 9

  10. Slide 10: Deposit Breakdown

    Deposit Breakdown (NT$ Hundred Million) Total Deposit YoY -0.73% 5,892 5,823 5,849 QoQ 1.51% 5,760 5,762 529 535 558 Foreign 566 583 currency deposits YoY 5.48% QoQ -4.29% Checking Time & & 2,696 saving 2,900 2,805 2,700 2,676 Time & demand deposits saving deposits deposits (local (local (local curr

  11. Slide 11: Loan Structure

    Loan Structure (NT$ Hundred Million) Corporate Banking Consumer Banking 2,293 2,363 2,254 2,219 2,156 2,067 52.59% 47.41% 51.57% 48.43% 51.11% 48.89% 2017 2018 2019 2017 2018 2019 YoY Corporate Banking 2,293 2,363 2,254 -4.61% Consumer Banking 2,067 2,219 2,156 -2.84% Total 4,360 4,582 4,410 -3.75%

  12. Slide 12: Consumer Banking-Consumption Loans

    Consumer Banking-Consumption Loans (NT$ Hundred Million) Average Rate NPL Rate 4.56% 4.48% 4.45% 0.51% 0.51% 0.48% 120 110 +9.09% 85 Local Bank 4.74% 2017 2018 2019 Note：Customption loans are not contain residential mortgage loans、loan of cash card、 credit card and debit card. 12

  13. Slide 13: Loan Structure by Currency

    Loan Structure by Currency (NT$ Hundred Million) Foreign Currency Loan NTD Loan 3,992 4,199 4,031 91.56% 91.64% 91.41% 368 383 379 8.44% 8.36% 8.59% 2017 2018 2019 2017 2018 2019 YoY NTD Loan 3,992 4,199 4,031 -4.00% Foreign Currency Loan 368 383 379 -1.04% Total 4,360 4,582 4,410 -3.75% 13

  14. Slide 14: Loan Breakdown

    Loan Breakdown (NT$ Hundred Million) Total Loan 4,582 4,511 YoY -3.75% 4,411 4,407 4,410 QoQ -0.07% Mortgage 229 209 OBU & 12.56% Consumption 204 194 Corporate 225 Loan YoY -15.28% Overseas QoQ -13.78% 2.99% branch SME 6.90% 1,842 1,782 YoY -4.67% 1,722 1,708 1,756 QoQ 2.81% Other OBU & Overseas Per

  15. Slide 15: Loan Breakdown

    Loan Breakdown (NT$ Hundred Million) Non-secured Secured 3,877 3,746 3,648 83.67% 84.61% 84.94% 712 705 664 16.33% 15.39% 15.06% 2017 2018 2019 2017 2018 2019 YoY Non-secured 712 705 664 -5.82% Secured 3,648 3,877 3,746 -3.38% Secured by property 3,321 3,536 3,437 -2.80% Secured by Letter of Guarant

  16. Slide 16: LDR

    LDR Overall LDR NTD LDR FCY LDR 78.48% 77.79% 77.38% 77.34% 76.40% 77.92% 77.48% 76.57% 76.49% 75.59% 74.40% 72.34% 69.58% 68.54% 67.91% 4Q18 1Q19 2Q19 3Q19 4Q19 16

  17. Slide 17: Spreads

    Spreads Overall Spreads NTD Spreads FCY Spreads 2.44% 2.38% 2.34% 2.11% 2.10% 1.76% 1.76% 1.77% 1.75% 1.75% 1.74% 1.71% 1.72% 1.70% 1.69% 4Q18 1Q19 2Q19 3Q19 4Q19 17

  18. Slide 18: TCB Bank's NIM

    TCB Bank’s NIM (NT$ Hundred million) NIM and Interest earning assets NIM 1.24% 1.21% 1.20% 1.20% 1.19% Average of Interest earning assets 6,436 6,430 6,406 6,380 6,322 4Q18 1Q19 2Q19 3Q19 4Q19 18

  19. Slide 19: Operating Expenses to Net Income

    Operating Expenses to Net Income (NT$ million) Net Income Operating Expenses Cost-Benefit Ratio 57.50% 53.66% 54.08% 52.78% 50.57% 49.54% 46.86% 46.63% 2,717 2,756 2,743 2,809 2,740 2,772 2,790 2,459 1,414 1,479 1,519 1,463 1,374 1,359 1,301 1,284 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 19

  20. Slide 20: Asset quality

    Asset quality (NT$ Million) NPLs/Total Loans &NPLs NPLs/Total Loans NPLs -0.27% 0.58% 0.42% 0.42% 0.45% 0.37% 0.37% 0.31% 2,501 2,054 1,842 1,845 1,655 1,645 1,382 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 20

  21. Slide 21: Asset quality

    Asset quality (NT$ Million) Reserve/NPLs & Loan Reserve Reserve/NPLs Loan Reserve +226.6% 475.54% 403.68% 378.28% 344.14% 343.87% 317.95% 248.94% 6,643 6,573 6,532 6,338 6,345 6,260 6,227 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 21

  22. Slide 22: Fee Income Breakdown

    Fee Income Breakdown (NT$ Million) Fee Income YoY -3.51% YoY -3.79% 797 807 824 QoQ -6.67% 752 769 3,276 3,152 83 86 97 Others 86 85 YoY -12.37% 359 Others 340 QoQ -1.16% 151 154 169 172 620 142 619 Loans Loans YoY 1.78% QoQ 11.69% 184 183 266 809 221 230 901 Trust Trust YoY 25.68% QoQ -13.53% Insur

  23. Slide 23: Wealth Management Fee Income

    Wealth Management Fee Income (NT$ Million) 554 568 Total YoY -3.70% YoY -5.18% 514 508 QoQ -12.85% 495 2,241 2,125 117 161 113 Mutual Fund 143 YoY 29.20% 567 146 567 QoQ -9.32% Mutual Fund Insurance & Securities 389 318 YoY -18.97% 348 Insurance 303 282 QoQ -11.32% 1,488 1,292 & Securities Others Yo

  24. Slide 24: Profit of Subsidiary to TCB

    Profit of Subsidiary to TCB (NT$ Million) Net Profit after tax 2018 2019 YoY TCB 3,566 3,753 5.24% Subsidiary 442 567 28.28% Total 4,008 4,320 7.78% Subsidiary Subsidiary of TCB of TCB 11.04% 13.12% TCB TCB 88.96% 86.88% 2018 Profit Breakdown 2019 Profit Breakdown 24

  25. Slide 25: Capital Adequacy

    Capital Adequacy Consolidated BIS Tier I Capital Ratio BIS +2.78% 13.63% 13.91% 12.68% 13.01% 12.41% 11.13% 12.48% 12.77% 11.79% 11.15% 10.99% 9.46% 1H17 2017 1H18 2018 1H19 2019 Individual BIS Tier I Capital Ratio BIS +2.74% 12.98% 13.23% 12.01% 12.35% 11.75% 10.49% 12.37% 12.64% 11.65% 10.98% 10.8

  26. Slide 26: Agenda

    Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 26

  27. Slide 27: Balance Sheet (Individual)

    Balance Sheet (Individual) (NT$ Million) 2017 2018 2019 YoY Assets： Cash and due from banks 44,066 46,740 44,134 -5.58% Financial investment, net 158,984 163,891 173,347 5.77% Loans, net 429,656 451,729 434,469 -3.82% A/R, net 6,329 5,028 4,064 -19.17% LT investments, net 4,735 5,225 5,491 5.09% Lan

  28. Slide 28: P&L (Individual)

    P&L (Individual) (NT$ Million) 2017 2018 2019 YoY Net interest income 7,823 7,991 7,902 -1.11% Net fee income 1,554 1,793 1,926 7.42% Others 971 891 1,283 44.00% Total Operating Income 10,348 10,675 11,111 4.08% Operating expenses (5,131) (5,626) (5,567) -1.05% Pre-provision Profit 5,217 5,049 5,544

  29. Slide 29: Balance Sheet (Consolidated)

    Balance Sheet (Consolidated) (NT$ Million) 2017 2018 2019 YoY Assets： Cash and due from banks 45,123 47,644 45,237 -5.05% Financial investment, net 159,651 165,027 174,356 5.65% Loans, net 430,858 452,595 435,398 -3.80% A/R, net 13,658 12,781 12,820 0.31% LT investments, net 128 153 157 2.61% Land,

  30. Slide 30: P&L (Consolidated)

    P&L(Consolidated) (NT$ Million) 2017 2018 2019 YoY Net interest income 8,186 8,434 8,351 -0.98% Net fee income 2,449 2,846 2,913 2.35% Others 760 409 831 103.18% Total Operating Income 11,395 11,689 12,095 3.47% Operating expenses (5,915) (6,457) (6,273) -2.85% Pre-provision Profit 5,480 5,232 5,822

  31. Slide 31: Agenda

    Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 31

  32. Slide 32: Branches

    Cultivating deeply in Taiwan 83 Expanding towards South East Asia Branches Greater Taipei：12 Branches (Taipei and New Taipei, Excluding OBU Branch) Taoyuan/Hsinchu/Miaoli：11 Branches Central Taiwan：49 Branches (Taichung、Changhua and Nantou) Kuala Southern Taiwan：10 Branches Lumpur (Yunlin、Chiayi、Tai

  33. Slide 33: Honors and Recognitions

    Honors and Recognitions 2019 Received the “Outstanding Institution Golden Security Award” from Joint Credit Information Center for five consecutive years. Received “New Southbound Nation Financing Growth Outstanding Prize 2018” from Overseas Credit Guarantee Fund (Taiwan). Awarded “Best Service Inno

  34. Slide 34: Annual Strategy Outlook

    Annual Strategy Outlook 2020 Strengthening the ideas of compliance, fully implementing money-laundering prevention mechanisms. Perfecting capital risk management, optimizing qualities of asset-based loans. 2018年上半年營運亮點 Consolidating core competency’s strength, expanding international finance territo

  35. Slide 35: Thanks for your listening!

    Thanks for your listening! 35

Taichung Commercial Bank — FY2019 Earnings Presentation on 6ix