Taichung Commercial Bank Co., Ltd. · TWSE:2812
Taichung Commercial Bank — FY2020 Earnings Presentation
35 slides from Taichung Commercial Bank's earnings presentation, Mar 12, 2021
Slide 1: Taichung Commercial Bank 2020 Investor Conference
7 i \ “a \ ‘ = f, iN i ‘hy iN f Vi ' tf Bi a B Taichung Commercial Bank 2020 Investor Conference
Slide 2: Disclaimer
Disclaimer ◆ This presentation is provided by Taichung Commercial Bank(TCB). Users should read this material in conjunction with all other public financial and operational information filed to the competent authorities by TCB. While we endeavor to provide accurate, complete and consistent informatio
Slide 3: Agenda
Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 3
Slide 4: 2020 Financial Highlight
2020 Financial Highlight Profitability • Net Profit after tax 4.0billions, declined by 6.81% over the same period last year. • EPS 1.03, declined by 7.21% over the same period last year. Asset quality • NPL ratio 0.21%、NPL coverage ratio 644.76%. Capital adequacy • Consolidated：Capital Adequacy Rati
Slide 5: Agenda
Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 5
Slide 6: Profitability
Profitability Net Profit (NT$ Million) 4,320 4,026 4,008 +7.78% -6.81% 2018 2019 2020 EPS (NT$) 1.16 1.18 1.03 -1.69% -11.21% 2018 2019(Note) 2020 Note：The EPS of 2019 was adjusted retroactively as 1.11. The growth rate between 2019 6 and 2020 declined by 7.21%.
Slide 7: Proposal for the distribution of earnings (NT$)
Proposal for the distribution of earnings (NT$) Cash dividends Stock dividends 0.52 0.52 0.45 0.28 0.28 65.00% 65.00% 0.24 65.22% 35.00% 35.00% 34.78% 2018 2019 2020(Note) 2018 2019 2020 Dividend Per Share 0.80 0.80 0.69 Cash dividends 0.28 0.28 0.24 Stock dividends 0.52 0.52 0.45 Note：The proposal
Slide 8: Profitability
Profitability ROA 0.64% 0.60% 0.57% 2018 2019 2020 ROE 8.79% 8.72% 7.41% 2018 2019 2020 8
Slide 9: Change in Net Profit
Change in Net Profit (NT$ Million) 2019 2020 2019 2020 YoY -3.44% YoY 2.35% YoY -23.27% YoY -7.95% 5,067 11,111 10,729 4,665 5,567 5,698 477 366 Operating Operating Provision Profit before tax Revenue Expenses 9
Slide 10: Deposit Breakdown
Deposit Breakdown (NT$ Hundred Million) Total Deposit YoY 9.11% 6,382 QoQ 3.12% 6,189 6,159 5,849 5,878 640 Foreign 666 651 currency 558 578 deposits YoY 14.70% QoQ -1.69% 2,740 Time & saving 2,807 2,773 deposits (local 2,696 2,697 currency) YoY 1.63% QoQ -1.19% Checking & demand deposits (local cur
Slide 11: Deposit Structure
Deposit Structure (%) Checking & demand deposits (local currency) Time & saving deposits(local currency) Foreign currency deposits 46.09% 47.04% 45.58% 44.37% 43.61% 42.93% 10.81% 10.03% 9.54% 4Q19 2Q20 4Q20 11
Slide 12: Loan Structure
Loan Structure (NT$ Hundred Million) Corporate Banking Consumer Banking 2,363 2,254 2,304 2,314 2,219 2,156 51.57% 48.43% 51.11% 48.89% 49.89% 50.11% 2018 2019 2020 2018 2019 2020 YoY Corporate Banking 2,363 2,254 2,304 2.22% Consumer Banking 2,219 2,156 2,314 7.33% Total 4,582 4,410 4,618 4.72% 12
Slide 13: Consumer Banking-Consumption Loans
Consumer Banking-Consumption Loans (NT$ Hundred Million) Average Rate NPL Rate 4.48% 4.45% 4.10% 0.51% 0.48% 0.18% 141 120 +17.50% 110 Local Bank 16.46% 2018 2019 2020 Note：Customption loans are not contain residential mortgage loans、loan of cash card、 credit card and debit card. 13
Slide 14: Loan Structure by Currency
Loan Structure by Currency (NT$ Hundred Million) Foreign Currency Loan NTD Loan 4,199 4,259 4,031 91.64% 91.41% 92.23% 383 379 359 8.36% 8.59% 7.77% 2018 2019 2020 2018 2019 2020 YoY NTD Loan 4,199 4,031 4,259 5.66% Foreign Currency Loan 383 379 359 -5.28% Total 4,582 4,410 4,618 4.72% 14
Slide 15: Loan Breakdown
Loan Breakdown (NT$ Hundred Million) Total Loan YoY 4.72% 4,534 4,561 4,618 QoQ 1.25% 4,410 4,436 Consumption 185 189 Corporate Mortgage 223 YoY -2.58% Loan 194 207 OBU & QoQ 2.16% 12.41% 3.25% Overseas SME branch YoY 4.44% 1,824 1,834 QoQ 0.55% 6.09% 1,756 1,752 1,789 Other OBU & Overseas branch(No
Slide 16: Loan Breakdown
Loan Breakdown (NT$ Hundred Million) Non-secured Secured 3,877 3,964 3,746 84.61% 84.94% 85.84% 705 664 654 15.39% 15.06% 14.16% 2018 2019 2020 2018 2019 2020 YoY Non-secured 705 664 654 -1.51% Secured 3,877 3,746 3,964 5.82% Secured by property 3,536 3,437 3,622 5.38% Secured by Letter of 164 149 1
Slide 17: LDR
LDR Overall LDR NTD LDR FCY LDR 76.40% 76.43% 75.61% 75.53% 74.35% 75.59% 75.50% 73.59% 73.68% 72.51% 67.91% 67.03% 57.99% 56.89% 56.03% 4Q19 1Q20 2Q20 3Q20 4Q20 17
Slide 18: Spreads
Spreads NTD Spreads Foreign Currency Spreads Overall Spreads 2.20% 2.14% 2.12% 2.04% 1.92% 1.78% 1.78% 1.79% 1.76% 1.74% 1.77% 1.69% 1.75% 1.75% 1.59% 1.60% 1.64% 1.73% 1.62% 1.63% 1.60% 1.59% 1.58% 1.59% 1.68% 1.61% 1.62% 1.57% 1.57% 1.55% 1.54% 1.55% 1.54% 1.50% 2020/1 2020/2 2020/3 2020/4 2020/5
Slide 19: TCB Bank's NIM
TCB Bank’s NIM (NT$ Hundred million) NIM and Interest earning assets NIM 2019 2020 1.24% 1.19% 1.20% 1.20% 1.21% 1.18% 1.17% 1.18% Q1 Q2 Q3 Q4 Average of Interest earning assets 2019 2020 6,530 6,497 6,436 6,430 6,441 6,406 6,384 6,380 Q1 Q2 Q3 Q4 19
Slide 20: Operating Expenses to Net Income
Operating Expenses to Net Income (NT$ million) Net Income Operating Expenses Cost-Benefit Ratio 56.85% 54.08% 52.78% 54.07% 51.76% 50.07% 46.86% 46.63% 2,809 2,772 2,790 2,828 2,900 2,740 2,533 2,468 1,519 1,463 1,568 1,301 1,311 1,403 1,416 1,284 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 20
Slide 21: Asset quality
Asset quality (NT$ Million) NPLs/Total Loans &NPLs NPLs/Total Loans NPLs -0.21% 0.42% 0.45% 0.44% 0.37% 0.37% 0.31% 0.21% 2,054 2,003 1,845 1,655 1,645 1,382 983 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20 4Q20 21
Slide 22: Asset quality
Asset quality (NT$ Million) Reserve/NPLs & Loan Reserve Reserve/NPLs Loan Reserve +300.89% 644.76% 475.54% 378.28% 403.68% 343.87% 324.25% 317.95% 6,643 6,573 6,532 6,494 6,345 6,335 6,260 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20 4Q20 22
Slide 23: Fee Income Breakdown
Fee Income Breakdown (NT$ Million) Fee Income 845 YoY 7.15% YoY -0.22% 816 824 QoQ -2.49% 769 79 3,152 3,145 73 92 Others 85 660 YoY 8.24% Others 340 317 166 QoQ 16.46% 176 73 202 172 619 720 Loans Loans YoY 17.44% 176 QoQ 21.69% 252 299 230 901 Trust 305 Trust 1,068 YoY 32.61% 212 QoQ 2.01% Insuran
Slide 24: Wealth Management Fee Income
Wealth Management Fee Income (NT$ Million) 583 549 Total YoY 0.03% YoY -4.42% 495 509 QoQ -12.69% 2,125 158 2,031 161 Mutual Fund 146 390 YoY 40.41% 567 205 QoQ 29.75% 648 Mutual Fund 124 301 Insurance & Securities 315 YoY -20.21% Insurance 282 QoQ -25.25% 1,292 225 1,040 & 199 Securities Others 124
Slide 25: Profit of Subsidiary to TCB
Profit of Subsidiary to TCB (NT$ Million) Net Profit after tax 2019 2020 YoY TCB 3,753 3,613 -3.73% Subsidiary 567 413 -27.16% Total 4,320 4,026 -6.81% Subsidiary Subsidiary of TCB of TCB 13.12% 10.26% TCB TCB 86.88% 89.74% 2019 Profit Breakdown 2020 Profit Breakdown 25
Slide 26: Capital Adequacy
Capital Adequacy Consolidated BIS Tier I Capital Ratio Common Equity Ratio BIS +1.75% 13.91% 14.15% 13.63% 13.57% 13.01% 12.41% 12.77% 13.08% 12.48% 12.57% 11.79% 10.99% 10.86% 10.10% 10.41% 10.28% 9.49% 8.94% 1H18 2018 1H19 2019 1H20 2020 Individual BIS BIS Tier I Capital Ratio Common Equity Ratio
Slide 27: Agenda
Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 27
Slide 28: Balance Sheet (Individual)
Balance Sheet (Individual) (NT$ Million) 2018 2019 2020 YoY Assets： Cash and due from banks 46,740 44,134 51,588 16.89% Financial investment, net 163,891 173,347 195,628 12.85% Loans, net 451,729 434,469 455,442 4.83% A/R, net 5,028 4,064 3,546 -12.75% LT investments, net 5,225 5,491 5,440 -0.93% La
Slide 29: P&L (Individual)
P&L (Individual) (NT$ Million) 2018 2019 2020 YoY Net interest income 7,991 7,902 7,848 -0.68% Net fee income 1,793 1,926 2,117 9.92% Others 891 1,283 764 -40.45% Total Operating Income 10,675 11,111 10,729 -3.44% Operating expenses (5,626) (5,567) (5,698) 2.35% Pre-provision Profit 5,049 5,544 5,03
Slide 30: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (NT$ Million) 2018 2019 2020 YoY Assets： Cash and due from banks 47,644 45,237 52,081 15.13% Financial investment, net 165,027 174,356 197,275 13.14% Loans, net 452,595 435,398 456,541 4.86% A/R, net 12,781 12,820 13,484 5.18% LT investments, net 153 157 163 3.82% Land,
Slide 31: P&L (Consolidated)
P&L(Consolidated) (NT$ Million) 2018 2019 2020 YoY Net interest income 8,434 8,351 8,279 -0.86% Net fee income 2,846 2,913 2,906 -0.24% Others 409 831 459 -44.77% Total Operating Income 11,689 12,095 11,644 -3.73% Operating expenses (6,457) (6,273) (6,366) 1.48% Pre-provision Profit 5,232 5,822 5,27
Slide 32: Agenda
Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 32
Slide 33: Honors and Recognitions 2020
Honors and Recognitions 2020 Awarded the “Golden Security Award” for member institutes with excellent performance by Joint Credit Information Center for 6 consecutive years. Awarded the “Outstanding Bank Award” for the Phase III Program to Incentivize Lending by Domestic Banks to Enterprises in Targ
Slide 34: Annual Strategy Outlook 2021
Annual Strategy Outlook 2021 Implement a financial supervision system with enhanced corporate governance. Refine organizational resilience to achieve sustainable development goals. Strengthen risk management efficiency to maintain sound asset quality. 2018年上半年營運亮點 Focus on customer experience to cre
Slide 35: Thanks for your listening!
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Taichung Commercial Bank — FY2020 Earnings Presentation on 6ix