Mega Financial Holding Co., Ltd. · TWSE:2886
Mega Financial — Q3 2024 Earnings Presentation
31 slides from Mega Financial's earnings presentation, Nov 28, 2024
Slide 1: 3Q/2024 Analyst Meeting
3Q/2024 Analyst Meeting 2024/11/28 1
Slide 2: Disclaimer
DISCLAIMER • This document is provided by Mega Financial Holding Co., Ltd. (the "Company"). Except for the numbers and information included in the Company's financial statements, the information contained in this document has not been unaudited or reviewed by any accountant or independent expert. Th
Slide 3: Table of Contents
Ta b l e o f C o n t e n t s Overview and Strategic 1 Focus 2 Financial Performance 3 Operating Performance 4 Appendix 3
Slide 4: Mega FHC 1-3Q/24 Earning were up 8% YoY
Mega FHC 1-3Q/24 Earning were up 8% YoY Mega FHC & Subs. 1-3Q/24 earning trend Mega FHC Jan.-Oct./24 earning trend Unit: NT$MN 1-3Q/2023 1-3Q/2024* 29,321 25,542 27,028 25,092 31,112 28,826 1,717 2,301 1,518 1,629 316 163 129 68 68 193 167 Mega Mega Bills Mega Sec. CKI Mega Mega Site Mega VC Mega FH
Slide 5: Mega 4 Core Strategies
Mega 4 Core Strategies • Leading state-linked FHC 1 • Maintain leading position in corp. banking, syndication loan and FX. No. 1 Mega • Emphasize non-bank biz. 2 Focus • Develop consumer banking biz, tailored Mega’s strength Bank vs Non-bank; Corp. banking vs. Consumer banking • ESG, Sustainability,
Slide 6: Table of Contents
Ta b l e o f C o n t e n t s Overview and Strategic 1 Focus 2 Financial Performance 3 Operating Performance 4 Appendix 6
Slide 7: 1-3Q/24 Bank NII rose 3% YoY; Fee Income Bounced up 30% YoY
1-3Q/24 Bank NII rose 3% YoY; Fee Income Bounced up 30% YoY Mega FHC 1-3Q/24 net revenue breakdown* P&C Others 1-3Q/2023 1-3Q/2024* Unit: NT$MN 3% 2% 27,099 27,654 Trading 23,450 NII 22,315 Gain 42% 11,105 36% 8,476 2,246 1,081 1,029 -1,316 Fee Net Interest Net Fee Income Trading Gain** P&C Other In
Slide 8: 1-3Q/24 ROE & ROA Reached a 5-Year High
1-3Q/24 ROE & ROA Reached a 5-Year High Major earning matrixes 10.46% 11.21% 7.69% 7.86% ROE 5.84% ROA 0.79% 0.87% To prevent over-inflated capital base as 0.66% 0.64% well as to maintain sufficient capital for 0.45% 2.37 future growth, our dividend policy is: 1.98 Maintain high payout ratio 1.84
Slide 9: Strong Capital Position
Strong Capital Position Mega FHC Mega Bank CAR/RBC Moody’s: A2 CAR Requirement : 100% Moody’s: A1 / S&P: A+ D-SIBs requires: CAR: 14.0% CET1: 10.5% Common equity tier 1 ratio 122.86% 15.32% 14.78% 123.12% 14.14% 14.31% 122.12% Credit rating BIS 120.05% 116.61% 116.67% Double leverage ratio 113.27% 1
Slide 10: Table of Contents
Ta b l e o f C o n t e n t s Overview and Strategic 1 Focus 2 Financial Performance 3 Operating Performance 4 Appendix 10
Slide 11: 6% YoY Growth in Total Loans Driven by Large Corp, SME, Mortgage
6% YoY Growth in Total Loans Driven by Steady Increases in Large Corp, SME, and Mortgage Loans Mega Bank quarterly loan balance* Mega Bank 1-3Q/24 loan breakdown by customers Unit: NT$BN Growth % 2,264 Total YoY: 6.0% 2,199 2,237 QoQ: 1.2% Total: 2,135 2,148 Large corp. Other consumer 31% 720 709 5%
Slide 12: 3Q/24 Real Estate Loans were up 13.7% YoY
3Q/24 Real Estate Loans were up 13.7% YoY; while Retail & Wholesales/Consumer were up 16.6%/14.2% YoY Mega Bank loan balance trend by industry* 3Q/24 loan breakdown by 3Q/24 2Q/24 3Q/23 industry* Unit: NT$BN Growth 582 YoY: -3.5% Manufacturing 597 QoQ: -2.5% Manufacturi 603 Others Consumer ng 101 Yo
Slide 13: 3Q/24 Overseas Loans Grew 1.8% QoQ; Domestic Loans Rose
3Q/24 Overseas Loans Grew 1.8% QoQ; while Domestic Loans Rose 1.8% QoQ / 9.5%YoY Mega Bank 3Q/24 loan breakdown by regions * Unit: NT$BN Growth YoY: -0.6% 344 Overseas QoQ: 1.8% 340 338 346 333 Overseas 184 175 OBU Growth 15% 182 176 194 YoY: -9.8% QoQ: -4.9% OBU 8% Growth 1,743 YoY: 9.5% 1,631 1,68
Slide 14: 3Q/24 NTD Loan Grew 3.2% QoQ
3Q/24 NTD Loan Grew 3.2% QoQ Mega Bank 3Q/24 loan breakdown by currency: NTD vs. foreign currency loan * Unit: NT$BN Growth 583 578 582 580 FCY loan** FCY Loan 598 YoY: -3.0% 26% QoQ: -0.3% NTD 1,584 1,613 1,664 NTD loan Growth 1,495 1,534 Loan YoY: 11.3% 74% QoQ: 3.2% 3Q/23 4Q/23 1Q/24 2Q/24 3Q/24
Slide 15: 3Q/24 Total Deposits Up 1% QoQ
3Q/24 Total Deposits Up 1% QoQ with Demand Deposits Rising to 45.41% Mega Bank deposit balance * Mega Bank 3Q/24 deposit breakdown FCY demand Unit: NT$BN Growth YoY: 4.6% 14% FCY time QoQ: 1.0% 25% 2,933 3,028 3,059 Total: 2,925 2,930 FX time deposit 774 773 778 745 738 NTD time NTD time NTD demand
Slide 16: 3Q/24 Total LDR Reaches 72.46%; USD LDR Hits 39.65%
3Q/24 Total LDR Reaches 72.46%; USD LDR Hits 39.65% Mega Bank’s total LDR* Mega Bank’s USD LDR** Mega LDR Industry LDR*** 43.43% 72.73% 74.79% 71.82% 72.89% 72.49% 72.46% 40.35% 40.35% 71.16% 40.01% 70.58% 39.80% 39.65% 71.50% 39.45% 39.27% 70.56% 70.56% 70.76% 70.04% 69.28% 70.02% 69.63% 4Q/22 1Q/2
Slide 17: 3Q24 Loan Yield and Deposit Cost Rate Decrease; Spread at 1.38%
3Q24 Loan Yield and Deposit Cost Rate Decrease; Spread at 1.38% Mega Bank total loan interest spread Mega Bank overseas loan interest spread* Spread Yield Cost Spread Yield Cost 5.95% 6.22% 6.30% 6.26% 6.20% 6.08% 3.30% 3.38% 3.35% 3.30% 3.36% 3.31% 3.08% 3.11% 3.08% 3.15% 2.95% 2.84% 3.11% 3.22% 3.
Slide 18: NIM Slightly Down Due to Decline in TWD and USD Interest Spreads
NIM Slightly Down Due to Decline in TWD and USD Interest Spreads Mega Bank quarter NIM and average interest earning assets* Unit: NT$BN / % Overall NTD FCY NIM AIEA USD RMB Other FCY NIM AIEA * NIM = annualized net interest income / average interest earning assets (AIEA) of that quarter; internal nu
Slide 19: 3Q/24 Wealth Management Fees Surpass All Quarters of Last Year
3Q/24 Wealth Management Fees Surpass All Quarters of Last Year Mega Bank wealth management gross fee breakdown* 1,400 Unit: NT$MN 1,235 1,200 14 1,179 5 188 1,087 3 1,008 202 Other income**** 1,000 Total: 913 16 193 908 200 8 193 12 200 Custodian fee*** 800 205 181 222 123 183 141 Management fee** 1
Slide 20: 1-3Q/24 Net Fee Income Up 30% YoY
1-3Q/24 Net Fee Income Up 30% YoY, Driven by 33% WM and 51% Credit Fee Growth Mega Bank net fee breakdown 1-3Q/23 2,857 2,851 Unit: NT$MN 2154 1894 764 802 823 828 Wealth Mgmt* FX Credit fee** Others Mega Bank net fee trend*** Mega Bank 1-3Q/24 net fee breakdown Unit: NT$MN Others 11% 7,338 WM* 5,63
Slide 21: 3Q/24 Improved Asset Quality with Lower NPL Ratio
3Q/24 Improved Asset Quality with Lower NPL Ratio and Higher Coverage Ratio Mega Bank NPL balance & NPL ratio Mega Bank loan loss reserved and coverage ratio 985.00% 634.46% 696.05% 538.73% 522.49% 586.78% 0.30% 0.31% 0.28% 0.25% 0.22% 0.17% Unit: NT$MN Unit: NT$MN 37,247 35,818 36,005 35,877 6,683
Slide 22: 3Q/24 Stable New NPL formation, Slight Decline in SME NPL Ratio
3Q/24 Stable New NPL formation, Slight Decline in SME NPL Ratio Mega Bank NPL ratio by customer * Mega Bank new NPL as % of total loan * Large corp. NPL% 0.38% 0.30% 0.33% 0.23% 0.29% 0.15% New NPL 2Q/23 3Q/23 4Q/23 1Q/24 2Q/24 3Q/24 0.21% 0.11% 0.08% 0.08% 0.05% 0.07% SME NPL % 0.26% 0.33% 0.24% 0.
Slide 23: Table of Contents
Ta b l e o f C o n t e n t s Overview and Strategic 1 Focus 2 Financial Performance 3 Operating Performance 4 Appendix 23
Slide 24: 1-3Q/24 Mega FHC consolidated P&L statement
1-3Q/24 Mega FHC consolidated P&L statement Unit: NT$MN; EPS: NT$ 1-3Q/2024* 1-3Q/2023 YoY Interest income 97,095,679,484 84,900,267,438 14% Less: interest expense 69,441,595,201 57,801,144,209 20% Net interest revenue 27,654,084,283 27,099,123,229 2% Net revenue other than interest 37,830,294,093 3
Slide 25: 1-3Q/24 Mega FHC consolidated balance sheet
1-3Q/24 Mega FHC consolidated balance sheet Unit: NT$MN 1-3Q/2024* 1-3Q/2023 YoY Cash and cash equivalents, net 71,508,891,458 72,566,790,076 -1% Due from central bank and interbank assets 621,367,031,002 434,847,328,833 43% Financial assets at fair value thru P&L 239,523,134,460 231,594,363,309 3%
Slide 26: 1-3Q/24 Mega Bank consolidated P&L statement
1-3Q/24 Mega Bank consolidated P&L statement Unit: NT$MN; EPS: NT$ 1-3Q/2024* 1-3Q/2023 YoY Interest income 93,192,714,295 82,256,523,518 13% Less: interest expense 64,405,555,968 54,194,218,049 19% Net interest revenue 28,787,158,327 28,062,305,469 3% Net revenue other than interest 25,715,697,138
Slide 27: 1-3Q/24 Mega Bank consolidated balance sheet
1-3Q/24 Mega Bank consolidated balance sheet Unit: NT$MN 1-3Q/2024* 1-3Q/2023 YoY Cash and cash equivalents, net 64,439,779,022 67,275,813,654 -4% Due from central bank and interbank assets 623,667,031,002 440,247,328,833 42% Financial assets at fair value thru P&L 55,546,386,477 59,647,512,693 -7%
Slide 28: Mega FHC ESG recognition
Mega FHC ESG recognition Mega Group ESG Awards and Achievements 2024/2 2024/3 2024/6 2024/9 2024/10 CDP Climate Change CommonWealth YuShan Award Insurance Dragon SBTi Approval A Sustainable Citizen TCFD Benchmark and Phoenix Award 1.5°C Company Leadership Level Award • Achieved A- • Awarded the •
Slide 29: Mega FHC ESG recognition
Mega FHC ESG recognition Mega Group ESG Awards and Achievements(cont’d) 2022/10 2022/11 2023/6 2023/10 2023/12 Occupational Top 5% DJSI Component, Highest Certification MSCI AA Rating Safety Excellence Corporate Governance Sustainable Finance for TCFD Report TCSA 8 Awards Evaluation Pioneer Allian
Slide 30: 39 offices in 18 countries/areas; Mega Bank's Overseas Franchise
39 offices in 18 countries/areas; 22 offices in“New South Bond Area” M e g a B a n k ’s E x t e n s i v e O v e r s e a s F r a n c h i s e Toronto London Amsterdam Vancouver China: New York Paris •Suzhou branch Chicago •Wujiang sub-branch Tokyo Silicon Valley •Kunshan sub-branch •Ningbo branch Los
Slide 31: Thank you~ Q&A
. IK ey = ay Mega Holdings Thank you~
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