Far Eastern International Bank · TWSE:2845
Far Eastern International Bank — FY2020 Earnings Presentation
22 slides from Far Eastern International Bank's earnings presentation, Apr 7, 2021
Slide 1: Investor Conference Y2020
Investor Conference Y2020 4/7’2021
Slide 2: Far Eastern Group
Far Eastern Group Established in 1937 Span over 10 major industries 9 public listed companies in Taiwan and HK Total Asset of NT$2,848 Bn (YE2020) Petrochemical & energy Polyester & synthetic fiber Cement & building material Retail & department store Financial services – 11 companies in oper
Slide 3: Contents
Contents EN EEE Amman RARER al Highlights
Slide 4: Assets & Net worth
Assets & Net worth Assets Net Worth (NT$Bn) (NT$Bn) YoY YoY +3.8% +3.1% 655 680 627 49 36 47 36 40 45 33 36 0 1 38 0 13 13 198 221 12 177 33 34 35 380 385 383 2018 2019 2020 2018 2019 2020 Loan Investment Cash & Deposit AR & Others Capital + Capital Surplus Retain Earnings & Others
Slide 5: Loans & Deposit
Loans & Deposit Gross Loan Deposit (NT$Bn) (NT$Bn) YoY YoY -0.3% +8.3% 583 385 390 389 537 508 46 64 71 68 32 97 99 102 33 124 128 129 320 330 299 64 59 50 32 27 37 77 108 121 136 68 70 2018 2019 2020 2018 2019 2020 Local Corp Local SME Overseas LCY D.D. LCY T.D. FCY D.D. FCY T.D.
Slide 6: Liquidity
Liquidity Demand Deposit ratio 36.58% Gross loan-to-deposit ratio 28.83% 29.51% 75.72% 73.18% 74.24% 71.58% 72.62% 2018 2019 2020 Liquidity coverage ratio 66.81% 142.42% 124.91% 2018 2019 2020 110.28% By YE balance By average balance 2018 2019 2020 6 Source: :Consolidated audited financial
Slide 7: Asset Quality
Asset Quality NPL ratio NPL coverage ratio Loan coverage ratio 0.51% 649% 574% 1.46% 621% 1.42% 574% 513% 1.38% 1.37% 286% 1.40% 0.28% 0.24% 1.36% 0.24% 0.22% 0.22% Dec'18 Dec'19 Dec'20 Dec'18 Dec'19 Dec'20 Dec'18 Dec'19 Dec'20 Industry FEIB Source: Consolidated audited financial reports / FSC r
Slide 8: Profitability
Profitability Revenue YoY PPOP YoY (NT$Bn) (NT$Bn) 11.7 11.2 11.2 -4.3% -8.7% 0.5 0.3 0.4 1.9 2.5 1.3 (47.6%) 4.6 4.8 4.4 3.1 3.5 3.5 5.7 5.5 6.0 10.6% 2018 2019 2020 2018 2019 2020 NII Fee Trading Other Provision Cost YoY IBT YoY (NT$Bn) 1.9 (NT$Bn) 104% 4.3 -32.2% 0.4 4.1 1.0 0.9 2
Slide 9: Profitability
Profitability NIM Loan Yield* & Avg. Loan Balance 1.09% 1.11% 1.09% 0.98% 1.03% (NT$Bn) 1.01% 389 399 374 2018 2019 2020 2018 2019 2020 * =Net loan revenue / Avg. loan balance ROA (after tax) ROE (after tax) 8.05% 7.89% 0.59% 0.57% 5.25% 0.38% 2018 2019 2020 2018 2019 2020 9 Source: :Consoli
Slide 10: BIS
BIS CET1(unconsolidated) BIS (unconsolidated) 13.60% 14.10% 13.33% 11.03% 10.53% 10.51% 11.49% 11.07% 10.99% 2018 2019 2020 2018 2019 2020 Tier1 Tier 2 10 Source: :FEIB website
Slide 11: Dividends
Dividends EPS & Dividend Cash dividend yield * (NT$/Share) (EPS) $1.05 $1.08 4.47% $0.73 4.00% 3.00% 0.27 0.28 0.19 0.45 0.47 0.33 2018 2019 2020 2018 2019 2020 Cash Stock Reserved Earning * = Cash dividend / Avg. stock price of the year of earnings Source: :Consolidated audited financial
Slide 12: Key Strategies
Contents EN EEE Amman RARER Key Strategies
Slide 13: Steady growth
Steady growth Assets Loan YoY (NT$Bn) 7% (NT$Bn) YoY 6% 401 397 424 2019 2020 2021 est. YoY 722 Deposit 654 680 2% (NT$Bn) 538 583 594 2019 2020 2021 est. 2019 2020 2021 est. *2021 est.:Per 2020 business report 13
Slide 14: Retail banking integration
Retail banking integration Big Data Deposit Cross-selling model Wealth management Digital branch Credit cards Deposit Consumer loan Mortgage Integrated branch 14
Slide 15: Risk management
Risk management Strengthen credit risk Refocus local market management Offshore assets/total assets Review defaulted cases, lesson- learned early warning signals 17% 14% 13% Strengthen TM and risk assessment for loans in China and overseas 2019 2020 2021 est. market SME+MM/total loans Enha
Slide 16: Digital banking
Digital banking Digital channel Open banking Off - counter rate： 93.7% No.1 - Open Banking Phase 2 (YE’2020) TSP % 97 96 83 73 57 Transfer Withdraw Fund Exchange Deposit Acquisition rate： 40.6% Digital tx execution (YE’2020) Robotic Process Automation(RPA) 40.6.% eKYC, e-ID checking 21.7
Slide 17: Financial market
Financial market New business Proprietary trading of gold futures FCY bond dealing New structured products, pricing and hedging Trading & Investment Trading income outgrows TMU sales revenue Investment portfolio YoY +16~17% Bond investment outgrows equity investment 17
Slide 18: ESG strategies
ESG strategies Environment Corporate Governance Green finance New "Corporate Equator principle Governance and TCFD disclosure Sustainability Committee“ Board diversification Board structure Disciplines & ranking Social Society engagement activities Buying Power (MOEA) Human resou
Slide 19: Appendix
Contents Far Eastern Int'l Bank & Pe ey on Appendix FE Bien ApmeRe RARER
Slide 20: Key Financials
Key Financials (NT$ m, except percentages and per share data) (Consolidated) As of or for 12 months ended December 31 2018 2019 2020 YoY Key balance sheet items Gross loans 384,923 390,200 388,857 -0.3% Total assets 627,351 654,888 680,047 3.8% Deposits and remittances 508,408 537,396 582,153 8.3% T
Slide 21: Thank you
(Sy 2 eH aT op Far Eastern Intl Bank Thank you Amman RARER
Slide 22: Disclaimer
Disclaimer This presentation has been prepared by Far Eastern International Bank (the “Company”). This presentation and the materials provided herewith do not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an in
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