Mega Financial Holding Co., Ltd. · TWSE:2886
Mega Financial — Q1 2025 Earnings Presentation
28 slides from Mega Financial's earnings presentation, May 29, 2025
Slide 1: 1Q/2025 Analyst Meeting
1Q/2025 Analyst Meeting 2025/5/29 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 1Q/25 Reports NT$8.01 Billion Net Profit
Mega FHC 1Q/25 Reports NT$8.01 Billion Net Profit Mega FHC & Subs. 1Q/25 earning trend Mega FHC Jan.-Apr./25 earning trend Unit: NT$MN 1Q/2024 1Q/2025* 11,490 9,888 14,120 8,011 7,202 10,182 603 543 887 258 166 153 57 42 22 29 129 16 Mega Mega Bills Mega Sec. CKI Mega Mega Site Mega VC Mega FHC Jan.
Slide 5: Mega Bank 1Q/25 NII Up 2% YoY, Net Fee Growth 4% YoY
Mega Bank 1Q/25 NII Up 2% YoY, Net Fee Growth 4% YoY (Excluding 2024 one-time HSR fee) Mega FHC 1Q/25 net revenue breakdown* 1Q/2024 1Q/2025* Unit: NT$MN P&C Others 4% 2% Trading 9,314 9,534 Gain 7,804 25% 4,275 3,433 4,813 NII 51% 741 294 342 Fee 18% Net Interest Income Net Fee Income Trading Gain*
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: Record-High Cash Dividend of NT$1.6 for 2024
Record-High Cash Dividend of NT$1.6 for 2024 Major earning matrixes 10.46% 9.93% 7.86% 8.66% ROE 5.84% ROA 0.79% 0.77% 0.69% 0.64% 0.45% 2.37 2.35 To prevent over-inflated capital 1.89 base as well as to maintain sufficient capital for future 0.30 growth, our dividend policy is: EPS** 0.25 1.32 1.60
Slide 8: Strong Capital Position
Strong Capital Position Mega FHC Mega Bank CAR/RBC Moody’s: A2 CAR Requirement : 100% Moody’s: A1 / S&P: A+ D-SIBs requires: CAR: 14.5% Tier1: 12.5% Tier 1 ratio 135.18% CET1: 11.0% 16.54% 15.32% 14.81% BIS 14.31% Common equity ratio 122.86% 122.68% 14.29% 116.61% 120.05% 12.65% Credit rating DLR 11
Slide 9: Table of Contents
Ta b l e o f C o n t e n t s Overview and Strategic 1 Focus 2 Financial Performance 3 Operating Performance 4 Appendix 9
Slide 10: Overall Loan Growth of 6.7% YoY; Mainly Due to Large Corp. and Mortgage
1Q/25 Overall Loan Growth of 6.7% YoY; Mainly Due to Increases in Large Corp. and Mortgage Loans Mega Bank quarterly loan balance* Mega Bank 1Q/25 loan breakdown by customers Unit: NT$BN Growth % 2,346 2,264 2,312 Total YoY: 6.7% Total: 2,199 2,237 QoQ: 1.5% Other consumer Mortgage Large corp. 5% 70
Slide 11: Strong Momentum in Manufacturing, Service and Gov. Agency Loans
1Q/25 Strong Momentum in Manufacturing, Service and Gov. Agency Loans Mega Bank loan balance trend by industry* 1Q/25 loan breakdown by industry* Unit: NT$BN 1Q/25 4Q/24 1Q/24 Growth Others 635 YoY: 5.5% Manufacturing 597 QoQ: 6.4% 9% Manufacturi 602 ng 119 YoY: 11.2% 27% Transport & Telecom 120 QoQ
Slide 12: Domestic, Overseas, and OBU Loans All Grown Steadily
1Q/25 Domestic, Overseas, and OBU Loans All Grown Steadily Mega Bank 4Q/24 loan breakdown by regions * Unit: NT$BN Growth 343 Overseas YoY: 0.9% 338 344 339 QoQ: 1.2% 340 188 OBU Overseas 184 175 184 Growth 176 YoY: 6.8% 15% QoQ: 2.2% OBU 8% 1,815 Growth 1,681 1,713 1,743 1,760 Domestic YoY: 8.0% Qo
Slide 13: USD Loan Demand Strong; QoQ Growth Reached 20.4%
1Q/25 USD Loan Demand Strong; QoQ Growth Reached 20.4% Mega Bank 1Q/25 loan breakdown by currency: NTD vs. foreign currency loan * Unit: NT$BN 580 579 583 Growth 578 582 FCY loan** FCY Loan YoY: 0.9% 25% QoQ: 0.7% NTD 1,584 1,613 1,664 1,683 1,719 NTD loan Growth Loan YoY: 8.5% QoQ: 2.1% 75% 1Q/24 2
Slide 14: NTD Demand Deposits Up 3.1% QoQ
1Q/25 NTD Demand Deposits Up 3.1% QoQ with Demand Deposits % rising to 46.20% Mega Bank deposit balance * Mega Bank 1Q/25 deposit breakdown Growth FCY demand Unit: NT$BN FCY time YoY: 5.0% 14% QoQ: 1.5% 26% 3,059 3,034 3,081 Total: 2,933 3,028 FX time deposit 774 773 771 800 738 NTD time NTD NTD tim
Slide 15: Total LDR Increases to 74.53%; USD LDR Hits 39.24%
1Q/25 Total LDR Increases to 74.53%; USD LDR Hits 39.24% Mega Bank’s total LDR* Mega Bank’s USD LDR** Mega LDR Industry LDR*** 40.35% 74.79% 74.53% 40.01% 39.80% 71.16% 72.89% 72.49% 72.46% 39.65% 70.58% 39.45% 71.32% 39.34% 72.12% 39.27% 71.50% 39.24% 71.02% 70.56% 70.76% 70.56% 70.04% 69.28% 2Q/23
Slide 16: Loan Yield and Deposit Cost Rate Decrease; Spread Consolidates
1Q/25 Loan Yield and Deposit Cost Rate Decrease; Spread Continued to Consolidate Mega Bank total loan interest spread Mega Bank overseas loan interest spread* Spread Yield Cost Spread Yield Cost 6.30% 6.26% 6.20% 6.08% 5.72% 5.43% 3.35% 3.30% 3.36% 3.31% 3.23% 3.08% 3.15% 3.13% 2.95% 2.84% 2.72% 2.6
Slide 17: Overall NIM Up 6bp QoQ to 0.96%
Overall NIM Up 6bp QoQ to 0.96% Mega Bank quarter NIM and average interest earning assets* Unit: NT$BN / % Overall NTD FCY NIM AIEA USD RMB Other FCY NIM AIEA * NIM = annualized net interest income / average interest earning assets (AIEA) of that quarter; internal numbers; Unit: NT$BN / % 17
Slide 18: Wealth Management Fees Reached New High at NT$1.326 Billion
1Q/25 Wealth Management Fees Reached New High at NT$1.326 Billion Mega Bank wealth management gross fee breakdown* 1,400 Unit: NT$MN 16 14 1,200 5 221 188 3 202 11 Other income**** 1,000 193 236 200 212 12 200 Custodian fee*** 800 181 222 150 123 141 221 Management fee** 169 600 111 71 362 136 311 4
Slide 19: Net Fee Income Up 25% YoY, Driven by WM and Credit Fees
1Q/25 Net Fee Income Up 25% YoY, Driven by 28% WM and 37% Credit Fee Growth Mega Bank net fee breakdown 1Q/24 1Q/25 HSR One-Time Unit: NT$MN Fee 1.04 bn 1,632 1022 1,075 1,040 579 261 257 265 310 592 Wealth Mgmt* FX Credit fee** Others Mega Bank net fee trend*** Mega Bank 1Q/25 net fee breakdown HSR
Slide 20: Stable Asset Quality
Stable Asset Quality Mega Bank NPL balance & NPL ratio Mega Bank loan loss reserved and coverage ratio 985.00% 0.30% 0.31% 701.91% 609.82% 0.28% 0.27% 538.73% 522.49% 586.78% 0.24% 0.17% 39,132 Unit: NT$MN Unit: NT$MN 38,683 6,683 6,867 6,348 6,343 37,247 5,575 36,005 35,877 35,818 3,636 4Q/23 1Q/24
Slide 21: Large Corp. and New NPL Formations Slight Increase; Bad Debt Expenses Decreased
Large Corp. and New NPL formations Saw a Slight Increase, While Bad Debt Expenses Significantly Decreased Mega Bank NPL ratio by customer * Mega Bank new NPL as % of total loan * Large corp. NPL% New NPL 0.41% 0.29% 0.30% 0.33% 0.29% 0.15% 0.21% 0.08% 0.12% 0.05% 0.07% 0.03% 4Q/23 1Q/24 2Q/24 3Q/24
Slide 22: Table of Contents
Ta b l e o f C o n t e n t s Overview and Strategic 1 Focus 2 Financial Performance 3 Operating Performance 4 Appendix 22
Slide 23: Mega FHC consolidated P&L statement
1Q/25 Mega FHC consolidated P&L statement Unit: NT$MN; EPS: NT$ 1Q/2025* 1Q/2024 YoY Interest income 31,623,531,411 31,752,946,590 0% Less: interest expense 22,089,927,587 22,438,465,703 -2% Net interest revenue 9,533,603,824 9,314,480,887 2% Net revenue other than interest 9,328,637,677 13,111,202,
Slide 24: Mega FHC consolidated balance sheet
1Q/25 Mega FHC consolidated balance sheet Unit: NT$MN 1Q/2025* 1Q/2024 YoY Cash and cash equivalents, net 95,355,597,095 77,153,488,384 24% Due from central bank and interbank assets 587,728,365,140 625,533,731,778 -6% Financial assets at fair value thru P&L 246,170,816,904 236,757,505,414 4% Financ
Slide 25: Mega Bank consolidated P&L statement
1Q/25 Mega Bank consolidated P&L statement Unit: NT$MN; EPS: NT$ 1Q/2025* 1Q/2024 YoY Interest income 30,209,224,788 30,585,348,800 -1% Less: interest expense 20,328,627,286 20,865,958,048 -3% Net interest revenue 9,880,597,502 9,719,390,752 2% Net revenue other than interest 6,061,984,556 8,870,974
Slide 26: Mega Bank consolidated balance sheet
1Q/25 Mega Bank consolidated balance sheet Unit: NT$MN 1Q/2025* 1Q/2024 YoY Cash and cash equivalents, net 88,360,550,809 67,959,736,691 30% Due from central bank and interbank assets 588,728,365,140 630,253,731,778 -7% Financial assets at fair value thru P&L 60,564,341,286 57,481,567,024 5% Financi
Slide 27: Mega Bank's Extensive 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 28: Thank you~ Q&A
. IK ey = ay Mega Holdings Thank you~
Mega Financial Holding — Q1 2025 Earnings Presentation on 6ix