Taichung Commercial Bank Co., Ltd. · TWSE:2812
Taichung Commercial Bank — H1 2019 Earnings Presentation
36 slides from Taichung Commercial Bank's earnings presentation, Aug 27, 2019
Slide 1: 2019 Half Year Investor Conference
Stock No ; 2812 Taichung Commercial Bank 2019 Half Year Investor Conference 2019.8.27 nee <5 a . ~ FR... QAP senses wa—en > Oe
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: Agenda
Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 3
Slide 4: 2019 Half Year Financial Highlight
2019 Half Year Financial Highlight Profitability • Net Profit after tax 2.1billions, 10.26% growth over the same period last year. • EPS 0.57, 5.56% growth over the same period last year. Asset quality • NPL rate 0.37%、Provision for bad debt coverage rate 403.68%. Capital adequacy • Consolidated：Cap
Slide 5: Agenda
Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 5
Slide 6: Profitability
Profitability Net Profit (NT$ Million) 2,106 +10.26% +10.32% 4,008 +3.36% 3,633 1,910 3,515 1H18 1H19 2016 2017 2018 EPS (NT$) 1.18 0.57 +7.27% +5.56% +0.92% 1.10 0.54 1.09 1H18 1H19 2016 2017 2018 6
Slide 7: Profitability
Profitability ROA 0.62% 0.60% 0.59% 0.57% 0.58% 1H18(Note) 1H19(Note) 2016 2017 2018 ROE 8.64% 8.57% 8.79% 8.72% 8.68% 1H18(Note) 1H19(Note) 2016 2017 2018 Note： ROE and ROA are annualized 7
Slide 8: Change in Net Profit
Change in Net Profit (NT$ Million) 1H18 1H19 1H18 1H19 YoY 7.19% YoY 0.54% YoY 26.50% YoY 13.69% 5,549 5,177 2,450 2,155 2,788 2,803 234 296 Operating Operating Provision Profit before tax Revenue Expenses 8
Slide 9: Deposit Breakdown
Deposit Breakdown (NT$ Hundred Million) Total Deposit YoY -1.10% 5,824 5,892 5,823 QoQ -1.08% 5,733 5,760 523 529 535 Foreign 532 566 currency deposits YoY 8.22% QoQ 5.79% Checking & Time & demand Time & saving 2,900 2,805 2,700 deposits 2,931 2,842 saving deposits(l (local deposits ocal (local curr
Slide 10: Loan Structure
Loan Structure (NT$ Hundred Million) Corporate Banking Consumer Banking 2,293 2,363 2,240 2,219 2,171 2,067 52.59% 47.41% 51.57% 48.43% 50.78% 49.22% 2017 2018 1H19 2017 2018 1H19 HoH Corporate Banking 2,293 2,363 2,240 -5.21% Consumer Banking 2,067 2,219 2,171 -2.16% Total 4,360 4,582 4,411 -3.73%
Slide 11: Consumer Banking-Consumption Loans
Consumer Banking-Consumption Loans (NT$ Hundred Million) Average Rate NPL Rate 4.56% 4.48% 4.49% 0.52% 0.52% 0.51% 110 +4.55% 115 85 Local Bank +1.26% 2017 2018 1H19 Note：Customption loans are not contain residential mortgage loans、loan of cash card、credit card and debit card. 11
Slide 12: Loan Structure by Currency
Loan Structure by Currency (NT$ Hundred Million) Foreign Currency Loan NTD Loan 3,992 4,199 4,017 91.56% 91.64% 91.07% 368 383 394 8.44% 8.36% 8.93% 2017 2018 1H19 2017 2018 1H19 HoH NTD Loan 3,992 4,199 4,017 -4.33% Foreign Currency Loan 368 383 394 2.87% Total 4,360 4,582 4,411 -3.73% 12
Slide 13: Loan Breakdown
Loan Breakdown (NT$ Hundred Million) Total Loan 4,535 4,582 4,511 4,411 YoY -1.83% 4,493 QoQ -2.22% 229 Mortgage Consumption 276 244 209 Corporate 204 12.72% Loan YoY -26.09% QoQ -2.39% 2.83% OBU SME 7.12% 1,842 1,782 YoY -5.12% 1,815 1,831 1,722 QoQ -3.37% Other Personal OBU YoY 18.49% Loan QoQ 0.9
Slide 14: Syndicated Loan of Banking
Syndicated Loan of Banking (NT$ Hundred Million) Syndicated Loan to Total loan Syndicated Loan NPL Balance of Syndicated Loan 7.96% 7.62% 7.57% 7.46% 7.30% 0.45% 0.00% 0.00% 0.00% 0.00% 359 349 335 331 334 2Q18 3Q18 2018 1Q19 2Q19 14
Slide 15: Loan Breakdown
Loan Breakdown (NT$ Hundred Million) Non-secured Secured 3,877 3,739 3,648 83.67% 84.61% 84.77% 712 705 672 16.33% 15.39% 15.23% 2017 2018 1H19 2017 2018 1H19 HoH Non-secured 712 705 672 -4.68% Secured 3,648 3,877 3,739 -3.56% Secured by property 3,321 3,536 3,428 -3.05% Secured by Letter of Guarant
Slide 16: LDR
LDR Overall LDR NTD LDR FCY LDR 79.89% 78.48% 77.59% 77.73% 77.79% 76.96% 77.34% 79.10% 77.92% 77.15% 77.48% 77.04% 76.57% 75.94% 74.40% 72.34% 71.47% 71.28% 71.38% 69.58% 66.00% 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 16
Slide 17: Spreads
Spreads Overall Spreads NTD Spreads FCY Spreads 2.45% 2.43% 2.44% 2.38% 2.34% 2.07% 2.11% 1.78% 1.77% 1.74% 1.74% 1.73% 1.73% 1.72% 1.70% 1.70% 1.70% 1.69% 1.69% 1.68% 1.67% 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 17
Slide 18: TCB Bank's NIM
TCB Bank’s NIM (NT$ Hundred million) NIM and Interest earning assets NIM 1.28% 1.23% 1.23% 1.24% 1.22% 1.21% 1.19% Average of Interest earning assets 6,436 6,430 6,244 6,298 6,322 6,174 6,016 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 18
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% 50.57% 49.54% 46.86% 43.94% 2,733 2,717 2,756 2,743 2,809 2,740 2,459 1,479 1,519 1,414 1,374 1,359 1,284 1,201 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 19
Slide 20: Asset quality
Asset quality (NT$ Million) NPLs/Total Loans &NPLs NPLs/Total Loans NPLs -0.21% 0.58% 0.42% 0.42% 0.45% 0.37% 0.37% 2,501 2,054 1,842 1,845 1,655 1,645 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 20
Slide 21: Asset quality
Asset quality (NT$ Million) Reserve/NPLs & Loan Reserve Reserve/NPLs Loan Reserve +154.74% 403.68% 378.28% 344.14% 343.87% 317.95% 248.94% 6,643 6,532 6,338 6,345 6,260 6,227 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 21
Slide 22: Fee Income Breakdown
Fee Income Breakdown (NT$ Million) Fee Income YoY -7.81% 815 YoY -7.73% 789 797 807 QoQ -6.82% 752 1,691 84 83 1,559 92 97 86 Others 171 Others YoY 2.38% 151 QoQ 3.61% 169 191 128 169 324 142 Loans YoY -25.65% 293 QoQ -5.96% Loans 196 184 207 183 429 221 Trust 405 YoY 6.76% QoQ 20.11% Trust Insuranc
Slide 23: Wealth Management Fee Income
Wealth Management Fee Income (NT$ Million) 558 554 Total YoY -9.15% YoY -2.50% 521 514 QoQ -8.30% 508 1,169 1,062 146 117 135 113 Mutual Fund 143 YoY 5.93% QoQ 22.22% 308 260 Mutual Fund Insurance & 389 Securities 333 373 348 YoY -9.01% Insurance 303 QoQ -22.11% 767 692 & Securities Others YoY 16.98
Slide 24: Profit of Subsidiary to TCB
Profit of Subsidiary to TCB (NT$ Million) Net Profit after tax 1H18 1H19 HoH TCB 1,784 1,831 2.63% Subsidiary 126 275 118.25% Total 1,910 2,106 10.26% Subsidiary Subsidiary of TCB of TCB 6.59% 13.08% TCB TCB 93.41% 86.92% 1H18 Profit Breakdown 1H19 Profit Breakdown 24
Slide 25: Capital Adequacy
Capital Adequacy Consolidated BIS Tier I Capital Ratio BIS +2.67% 13.63% 12.68% 13.01% 12.41% 10.96% 11.13% 12.48% 11.79% 11.15% 10.99% 9.35% 9.46% 2016 1H17 2017 1H18 2018 1H19 Individual BIS Tier I Capital Ratio BIS +2.73% 12.98% 12.01% 12.35% 11.75% 10.25% 10.49% 12.37% 11.65% 10.98% 10.82% 9.09%
Slide 26: Agenda
Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 26
Slide 27: Balance Sheet (Individual)
Balance Sheet (Individual) (NT$ Million) 2016 2017 2018 1H19 HoH Assets： Cash and due from banks 99,539 44,066 46,740 45,894 -1.81% Financial investment, net 77,450 158,984 163,891 171,735 4.79% Loans, net 423,901 429,656 451,729 434,509 -3.81% A/R, net 4,075 6,329 5,028 3,591 -28.58% LT investments
Slide 28: P&L (Individual)
P&L (Individual) (NT$ Million) 2016 2017 2018 1H18 1H19 HoH Net interest income 7,499 7,823 7,991 3,898 3,964 1.69% Net fee income 1,294 1,554 1,793 938 902 -3.84% Others 985 971 891 341 683 100.29% Total Operating Income 9,778 10,348 10,675 5,177 5,549 7.19% Operating expenses (5,005) (5,131) (5,62
Slide 29: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (NT$ Million) 2016 2017 2018 1H19 HoH Assets： Cash and due from banks 100,323 45,123 47,644 46,960 -1.44% Financial investment, net 77,742 159,651 165,027 172,719 4.66% Loans, net 425,166 430,858 452,595 435,604 -3.75% A/R, net 9,802 13,658 12,781 11,939 -6.59% LT invest
Slide 30: P&L (Consolidated)
P&L(Consolidated) (NT$ Million) 2016 2017 2018 1H18 1H19 HoH Net interest income 7,787 8,186 8,434 4,100 4,171 1.73% Net fee income 2,272 2,449 2,846 1,347 1,430 6.16% Others 734 760 409 213 468 119.72% Total Operating Income 10,793 11,395 11,689 5,660 6,069 7.23% Operating expenses (5,848) (5,915)
Slide 31: Agenda
Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 31
Slide 32: Credit Rating
2019 Credit Rating Fitch Ratings Long-term Short-term Outlook Domestic Rating A- (twn) F1 (twn) Stable 2018年上半年營運亮點 International Rating BB+ B Stable Viability Rating bb+ Support Rating 4 32 2
Slide 33: Branches
Cultivating deeply in Taiwan Expanding towards South East Asia 83 Branches Opening of the Yanchao Branch on April 2019. 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
Slide 34: Our Pride and Achievements
Our Pride and Achievements Received Overseas Credit Guarantee Fund (Taiwan)’s “2018 Financing Amount Growth for New Southern Policy Countries Excellent Award”. Received Wealth Magazine’s 2019 Wealth Management Award- “Best 2018年上半年營運亮點 Financial Technology” and “Best Public Welfare Promotion”. Recei
Slide 35: Our prospects for the second-half of 2019
Our prospects for the second-half of 2019 Implement financial governance, strengthen corporate compliance. Grow our business prudently, optimize assets management. 2018年上半年營運亮點 Deepen customer relationship management, expand our customer base . Expand the international financial market, Strengthen o
Slide 36: Thanks for your listening!
Thanks for your listening! 36
Taichung Commercial Bank — H1 2019 Earnings Presentation on 6ix