First Financial Holding Co. Ltd. · TWSE:2892
First Financial — CLSA Investors Forum 2009
42 slides from First Financial's conference presentation, Sep 21, 2009
Slide 1: CLSA Investment Forum FFHC 1H09
CLSA Investment Forum FFHC 091H - audited Sep. 21-22, 2009
Slide 2: Disclaimer
Disclaimer This presentation is provided by First Financial Holding Co., Ltd. (“FFHC”). The information contained within is not reviewed or reviewed by any accountant or any independent third party. Users should read this material in conjunction with all other public financial and operational inform
Slide 3: Contents
Contents - Financial Highlight - Asset Quality Review - Operating Result - Appendix 3
Slide 4: 1H 2009 Financial Highlight
1H 2009 Financial Highlight -audited
Slide 5: 1H 2009 Financial Highlight
1H 2009 Financial Highlight Net Income Trend (in NT$ mn) 14,175 12,485 10,662 7,077 6,115 -52% 2,943 2005 2006 2007 2008 1H08 1H09 Book Value Per Share EPS ROAE (in NT$) (in NT$) 16.31 0.47 5.84% 1H08: 16.53 1H08: 0.98 1H08: 11.78% 5
Slide 6: 1H 2009 Key Figures
1H 2009 Key Figures 1H09 Earnings Breakdown1 ( in NT$ mn) Key Figures ( in NT$ dollar, NT$ mn, mn shares or %) Insurance YoY % 1H08 1H09 NT$(88); -3.0% Others Net Income 6,115 2,9431 ª 51.9% Investment Trust NT$(86); -2.9% NT$43; 1.5% Total Assets 1,684,065 1,896,913 © 12.6% EPS 0.98 0.47 ª 52.0% Bo
Slide 7: 1H 2009 Net Income Overview
1H 2009 Net Income Overview 1H 2009 Consolidated Income & Loss (in NT$ mn) (7,871) Bank (2,978) 14,340 Insurance 198 (2,779) (747) 2,943 Net Revenue Operating Provision Income Tax Net Income Expenses 1H 2008 Consolidated Income & Loss (in NT$ mn) Bank (1,646) Insurance (3,818) 22,813 (9,057) (5,464)
Slide 8: Profitability-After Tax
Profitability-After Tax 1H 2009 FFHC & Major Subsidiaries FFHC Net Income (in NT$ mn ) FB Net Income (in NT$ mn) Total Asset: 1,896,913 Total Equity: 101,295 Total Asset: 1,863,640 Total Equity: 86,955 ROAE1 6.02% ROAE1 5.84% -51.8% -61.8% 6,115 6,948 2,943 2,655 1H08 1H09 1H08 1H09 1. Annualized RO
Slide 9: Profitability-After Tax
Profitability-After Tax 1H2009 FFHC & Major Subsidiaries First Sec Net (in NT$ mn ) First Securities Net (in NT$ mn ) FSITC Net (in NT$ mn ) First-Aviva2 Net (in NT$ mn ) Brokerage Mkt Share:1.68% AUM: 107,115 Total Asset: 13,072 Total Equity: 6,688 AUM Ranking: 6 1 ROAE (12.44%) 1 ROAE 12.94 % 1 RO
Slide 10: 1H 2009 Asset Quality Review
1H 2009 Asset Quality Review -FB
Slide 11: FB 1H09 Asset Quality
FB 1H09 Asset Quality NPL Amount, Reserve, Coverage (in NT$ mn or % ) Coverage Ratio NPL Ratio NPL NPL Reserve 1.63% 1.55% 1.64% 1.55% 1.56% 1.50% 1.49% 1.40% 1.45% 1.36% 54.67% 58.36% 55.36% 54.87% 52.82% 51.38% 53.84% 54.18% 54.47% 50.66% 16,137 15,956 17,080 16,234 16,916 17,665 17,380 15,761 15,
Slide 12: FB NPL Migration (1)
FB NPL Migration (1) NPL by Regions (in NT mn or %) Domestic NPL Overseas NPL* 1.87% 1.65% 1.63% 1.54% 1.58% 1.47% 1.53% 1.51% 1.43% 1.36% 0.75% 0.53% 0.54% 0.51% Domestic NPL Overseas NPL* 15,480 15,005 14,535 14,392 14,333 15,407 14,530 752 756 757 1,253 2,583 2,258 2,850 4Q07 1Q08 2Q08 3Q08 4Q08
Slide 13: FB NPL Migration (2)
FB NPL Migration(2) NPL by Sectors (in %) SME Large Corp. Individual Mortgage** 2.36% 2.31% 2.22% 2.12% 2.00% 2.00% 2.00% 1.66% 1.66% 1.82% 1.66% 1.60% 1.54% 1.55% 1.52% 1.47% 1.59% 1.50% 1.41% 1.42% 1.44% 1.30% 1.43% 1.38% 1.28% 1.24% 1.26% 1.21% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 **Mortgage is inc
Slide 14: New NPL Influx Breakdown
New NPL Influx Breakdown NPL (in NT$ mn Item 1H09 Item 1H08 1H09 New NPL Influx--Domestic 1,803 Year-begin. NPL Bal. 16,234 16,916 3,141 New NPL Influx--Overseas 1,338 Write-off-- Domestic -1,801 -1,606 Total Loan 1,094,291 Write-off-- Overseas -1 -1,071 Cumulative Ratio 0.29% end NPL Bal. 15,293 17
Slide 15: 1H 2009 Operating Results
1H 2009 Operating Results - audited
Slide 16: FFHC Profitability-After Tax
FFHC Profitability-After Tax Quarterly Net Income (in NT$ mn) Net Income 4,418 2,955 3,426 2,689 2,494 2,618 2,036 1,597 (1,074) 1,346 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 Annualized ROAE ( % ) Cumulative Net Income Annualized ROAE 11.53% 12.83% 12.05% 12.68% 12.34% 10.85% 10.
Slide 17: FB Profitability-After Tax
FB Profitability-After Tax Quarterly Net Income (in NT$ mn ) Net Income 3,614 3,530 3,418 3,064 2,701 2,617 2,074 1,615 (57) 1,040 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 Annualized ROAE ( % ) Cumulative Net Income Annualized ROAE 15.37% 15.90% 15.37% 12.23% 13.39% 12.23% 13.60%
Slide 18: FB 1H 2009 Revenue
FB 1H 2009 Revenue 1H 2009 Cumulative Net Revenue (in NT$ mn or %) % of Cumulative Net Revenue Item 1H08 1H09 Change NII 65.8% 63.5% -2.3% 12,977 Net Fee 15.7% 13.5% - 2.2% -28.4% Recovery 5.6% 8.9% +3.3% 18,113 Gain on other fin. pr.1 5.2% 10.6% +5.4% Others 4.0% 3.2% -0.8% Gain on LT stock invest.
Slide 19: FB 1H 2009 Loan Book Mix
FB 1H 2009 Loan Book Mix 1H 2009 Loan Book1 (in NT$ bn or %) % of Loan Book1 Item 1H08 1H09 Change 1,094.2 Consumer 29.2% 29.4% + 0.2% +1.6% Mortgage 28.4% 28.8% + 0.4% 1,076.5 Other Consumer Loan 0.8% 0.6% - 0.2% Corporate Banking 70.8% 70.6% - 0.2% Commercial Loan 42.0% 40.8% - 1.2% F/X Loan 19.0%
Slide 20: FB 1H 2009 Mortgage Book Mix
FB 1H 2009 Mortgage Book Mix 1H09 Mortgage Book (in NT$ bn or %) Mortgage by location (in %) Mortgage NPL: 1.38% (1H09) 314.9 306.0 TPE Metro. 53% +2.9% 3% 1H08 1H09 East Area 8% Kaohsiung 4.3% z Loan-to-value of new mortgage (3-month) at Tainan 10% 65~70% SME2 SME2 17% 17.2%Taoyuan, z Avg. loan-to-
Slide 21: Major Exposures to Specific Industries
Major Exposures to Specific Industries End of 1H 2009* - % of Loan to industries Total Domestic Loan Bal.1: NT$1,001.0 bn Wholesale Manufacturing & Retail Loan: 27.62% 9.38% Tech. Tech. Petro-chemical Real Estate Loan: 7.48% TFT-LCD DRAM 5.91% 2.63% 2.28% 1.45% Petro-chemical Loan: 6.03% Constructio
Slide 22: NPL Ratios by Specific Industries
NPL Ratios by Specific Industries End of 1H 2009* - NPL ratios to industries End of 1H 2009 NPL ratio: 1.56% Wholesale Manufacturing & Retail 1.63% 2.55% Tech. Tech. Petro-chemical 2.83% Real Estate Finished Components 5.91% Goods 0.89% 2.30% Petro-chemical 5.12% 0.67% Construction 2.26% *OBU and ov
Slide 23: FB 1H 2009 NT Dollar Deposit Mix
FB 1H 2009 NT Dollar Deposit Mix NTD Deposit Structure (in % ) 54.70% Time Deposit Demand & other deposit fixed rate of time deposit 57.1% 56.5% 49.6% 49.3% 50.0% 49.3% 49.3% 53% 53% 51% 50% 49% 47% 50% 53% 47% 47% 49% 50% 51% 53% 50% 47% 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 NTD Interest Yields O
Slide 24: FB 1H 2009 FX Deposit Mix
FB 1H 2009 FX Deposit Mix FX Deposit Structure (in % ) Time Deposit Demand & other deposit 33% 33% 32% 33% 31% 32% 37% 39% 67% 67% 68% 67% 69% 68% 63% 61% 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 FX Interest Yields Overview ( in % ) Loan Rate (FX) Deposit Rate (FX) 5.65% 5.73% 4.51% 3.87% 3.96% 3.88%
Slide 25: FB 1H 2009 Total Loan & NIM
FB 1H 2009 Total Loan & NIM Total Loan & LDR (in NT$ bn or % ) Total Loan1 LDR2 84.68% 84.54% 84.54% 82.34% 83.89% 82.35% 78.94% 80.74% 78.19% 73.65% 1,079.9 1,092.4 1,147.4 1,169.5 1,141.3 1,111.9 992.4 1,030.5 1,042.3 1,060.0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Quarterly NII / Spread
Slide 26: FB 1H09 Overseas Profits
FB 1H09 Overseas Profits 1H09 Cumulative Overseas PTP ( in NT$ mn) % of Cumulative Overseas PTP Item 1H 08 1H 09 1,575 -27.29% 2,166 Overseas PTP 23.8% 49.4% Domestic PTP 76.2% 50.6% 1H 08 1H 09 Total pre-tax profit 100.0% 100.0% Overseas PTP Quarterly Overseas & Total PTP (in NT$ mn or %) Overseas
Slide 27: FB 1H 2009 Fee Income Breakdown
FB 1H 2009 Fee Income Breakdown 1H 2009 Cumulative Net Fee Income (in NT$ mn or %) % of Cumulative Net Fee Item 1H08 1H09 Change WM1 59.9% 34.9% - 25.0% 1,752 2,848 F/X 15.1% 21.6% +6.5% -38.5% Other 12.4% 22.9% +10.5% Loan-related 8.9% 15.1% +6.2% Credit card 3.7% 5.5% +1.8% 1H08 1H09 Net Fee Incom
Slide 28: Structured Notes Update
Structured Notes Update Provision made for compensation (in NT$ mn ) Provision made in year 2008 906 Provision made in 1H2009 129 Total provision for structured notes compensation 1,035 FB - dispute cases 85% finalized till Aug. 24, 2009. 28
Slide 29: FB 1H 2009 Cost-to-Income Ratio
FB 1H 2009 Cost-to-Income Ratio 1H08 Operating Expense (in NT$ mn ) 1H 2009 Cumulative Operating Expense (in NT$ mn ) % of Cumulative Cost-to-Income Ratio Item 1H08 1H09 Change 6,816 Net Revenue 100.0% 100.0% 7,355 -7.33% Operating Expense - 40.6% - 52.5% +11.9% Provision - 9.1% - 22.9% +13.8% Incom
Slide 30: CAR & Credit Rating
CAR & Credit Rating FFHC Group CAR & Credit Rating1 Fitch: BBB+ / F2/ Stable CAR 122.05% 119.35% 120.19% 117.59% 123.71% 107.81% 109.54% 103.60% statutory CAR 100% 2H 05 1H 06 2H 06 1H 07 2H 07 1H 08 2H08 1H09 FB CAR & Credit Rating S & P: BBB+ / A-2/ Stable / C+ Twn Ratings: twAA-/twA-1+/Stable Moo
Slide 31: Appendix
Appendix
Slide 32: FFHC consolidated Income Statement
FFHC consolidated Income Statement FF HC Co n solid ated Incom e Stat em en t Su mmary in NT $ million , NT$, o r % Full Year Resu lts 2009 Quarterly Half-year Comp arison 2005 2006 2007 2008 Q1 Q2 1H 08 1H09 Change In terest in co me 37,979 43,428 49,354 50,080 8,385 6,993 24,950 15,378 -38.36% L e
Slide 33: FFHC Non-consolidated Income Statement
FFHC Non-consolidated Income Statement FFHC Non-consolidated Income Statement Summary in NT$ million, NT$, or % Full Year Results 2009 Quarterly Half-year Comparison 2005 2006 2007 2008 Q1 Q2 1H08 1H09 Change Operating revenues Income from long-term investment 9,209 10,904 12,873 8,513 1,774 1,378 6
Slide 34: FFHC Balance Sheet
FFHC Balance Sheet FFHC Balance Sheet Summary in NT$ million or million shares Full Year Results 2009 Quarterly Half-year Comparison 2005 2006 2007 2008 Q1 Q2 1H08 1H09 Change Non-consolidated Balance Sheet Data Long-term investment 87,542 98,224 99,502 97,985 100,184 99,988 103,087 99,988 -3.01% To
Slide 35: FFHC Key Ratios
FFHC Key Ratios FFHC Key Ratios Full Year Results 2009 Quarterly Half-year Comparison 2005 2006 2007 2008 3M 6M 1H08 1H09 Change After-tax ROAA (Annualized ratio) 0.93% 0.68% 0.76% 0.41% 0.36% 0.32% 0.74% 0.32% -56.76% After-tax ROAE (Annualized ratio) 16.73% 11.08% 12.05% 6.86% 6.36% 5.84% 11.78% 5
Slide 36: FB Income Statement
FB Income Statement FB Income Statement Summary in NT$ million or % Full Year Results 2009 Quarterly Half-year Comparison 2005 2006 2007 2008 Q1 Q2 1H08 1H09 Change Net revenue Net interest income 19,612 20,381 21,941 24,235 4,445 3,796 11,923 8,241 -30.88% Net fee income 3,759 4,495 6,884 5,041 807
Slide 37: FB Balance Sheet
FB Balance Sheet FB Balance Sheet Summary in NT$ million or % Full Year Results 2009 Quarterly Half-year Comparison 2005 2006 2007 2008 Q1 Q2 1H08 1H09 Change Assets Cash/due from banks 157,635 178,988 165,118 179,084 213,400 201,088 169,313 201,088 18.77% Fin. Assets meas ured 37,418 42,795 37,202
Slide 38: FB Key Ratios
FB Key Ratios FB Key Ratios Full Year Results 2009 Quarterly Half-year Comparison 2005 2006 2007 2008 3M 6M 1H08 1H09 Change Loan to deposit s pread 2.22% 2.04% 1.98% 1.91% 1.32% 1.25% 1.96% 1.25% -0.71% Net Interest Margin 1.51% 1.51% 1.50% 1.55% 1.09% 0.98% 1.59% 0.98% -0.61% 1 Cost to income rati
Slide 39: FB Loan Quality
FB Loan Quality FB NPL Migration in NT$ million or % Full Year Results 2009 Quarterly Half-year Comparison 2005 2006 2007 2008 Q1 Q2 1H08 1H09 Change NPL- beginning 18,597 15,482 15,406 16,234 16,916 17,665 16,234 16,916 4.20% Net new NPL influx 769 3,557 5,738 6,420 2,199 942 861 3,141 264.81% Net
Slide 40: First Sec Operating Report
First Sec Operating Report First Sec Financial Results Summary in NT$ million or % Full Year Results 2009 Quarterly Half-year Comparison 2005 2006 2007 2008 Q1 Q2 1H08 1H09 Change First Sec Income Statement Summary Total operating income Brokerage commis sion 758 943 1,294 731 144 300 481 444 -7.69%
Slide 41: FSITC Operating Report
FSITC Operating Report FS ITC Income S tatement Summary in NT$ million or % F ull Year R esults 2009 Quarterly H alf-year C ompariso n 2005 2006 2007 2008 Q1 Q2 1H 08 1H09 C han ge Total operating incom e Management fee 522 553 600 444 84 104 265 188 -29.06% Sales service fee 6 9 13 4 0 1 3 1 -66.67
Slide 42: First-Aviva Operating Report
First –Aviva Operating Report Fi r s t-A vi v a F in a nc i a l R e s ul ts S um m a ry in N T $ m i ll i on o r % 20 0 8 Q ua rte rly 2 0 09 Q ua rte rly Ha lf -ye a r Com pa ris on Q1 Q2 Q3 Q4 t ota l Q1 Q2 1 H0 8 1 H0 9 Cha ng e Inc om e State m ent Sum m a ry O per ating R ev enu e 90 8 3 ,5 96