O-bank Co. Ltd. · TWSE:2897
O-bank — QIC 16th Taiwan CEO Week (2024)
51 slides from O-bank's conference presentation, 2024
Slide 1: O-Bank 2024 1H Business Review
Security Code: 2897.TW O-Bank 2024 1H Business Review QIC 16th Taiwan CEO Week
Slide 2: Disclaimer
Disclaimer This document is provided by O-Bank Co., Ltd. (the "Company"). The Company makes no express or implied representations or warranties as to the accuracy, completeness, or correctness of such information or opinions. This document is provided as of the date herein and will not be updated to
Slide 3: Agenda
01 Introduction of O-Bank 02 2024 1H Operation Highlights Agenda 03 2024 1H Financial Results 04 Key Strategic Focuses Appendix: Financial Summary of 05 O-Bank and Its Main Subsidiaries 2
Slide 4: Introduction of O-Bank
@ e> Noe 01 Introduction of O-Bank © BANK
Slide 5: About O-Bank
01 About O-Bank Predecessor: Industrial Bank of Taiwan (IBT) IBT was founded in 1999 by former Central Bank Governor Samuel C. Shieh and veteran financier Kenneth C.M. Lo. The principal mission of IBT was to coordinate with Taiwan's national economic development strategies by providing professional
Slide 6: O-Bank's Business Scope
01 O-Bank's Business Scope Corporate Banking Online + Offline • Fueled by the digitalizaiton trends, O-Bank provides ● Corporate Banking Services retail banking services mostly via online digital ● Trade Finance Services channel to connect with younger generation consumers. ● Financial Markets Servi
Slide 7: Operational Strengths of O-Bank
01 Operational Strengths of O-Bank Master the progress of digital banking and cultivate younger generation customer base Mobile banking enables customers to open accounts, make deposits, apply for loans, and manage finances online 24/7. Utilize digital technologies such as big data and cloud tec
Slide 8: Sustainable Business Operations
01 Sustainable Business Operations Compiled a 100% greenhouse gas(GHG) inventory for corporate loans, mid- and long-term investment positions. Joined as a Supporter of the Partnership for Biodiversity Accounting Financials (PBAF) Signed on to the Partnership for Carbon Accounting Financials (P
Slide 9: ESG Recognitions
01 ESG Recognitions Participated for the first time in the Carbon Disclosure As of the end of September 2024, O-Bank scored 6.6, ranked Project (CDP) assessment in 2023 and achieved an No.1 among Taiwan’s financial institutions, No.2 among all exemplary "A-" score, attaining the Leadership Level. li
Slide 10: O-Bank's Main Subsidiaries and Associated Companies
01 O-Bank’s Main Subsidiaries and Associated Companies(As of the end of June 2024) ：O-Bank and its subsidiaries O-Bank Co., Ltd. ：Associated companies whose profits are recognized using equity method ：O-Bank and its main profit subsidiaries 100% 28.37% 100% 44.27% 20% IBT Holdings Venture Capital Bu
Slide 11: O-Bank Group Main Subsidiaries
01 O-Bank Group Main Subsidiaries (As of the end of June 2024) EverTrust Bank Business • Corporate and consumer deposit Scope • Corporate commercial real estate loan and consumer residential mortgage loan • Strong presence in Northern and Southern Business California and our familiarity with Chinese
Slide 12: O-Bank's Associated Companies Recognized Using Equity Method
01 O-Bank’s Associated Companies whose Profits are Recognized Using Equity Method (As of the end of June 2024) Infinite Finance (Security Code：6958.TW) • Vehicle installment purchases Business • Corporate financial service Scope • Long-term vehicle leases • Financial leasing of equipment in Mainland
Slide 13: 1H2024 Operation Highlights
02 1H2024 Operation Highlights 12
Slide 14: 2024 1H Operation Highlights
02 2024 1H Operation Highlights Both Consolidated and Standalone NPAT achieved record high YoY NTD million O-Bank 2024 1H 2023 1H YoY Consolidated Net Revenues 5,531 5,086 +9% Consolidated Net Profit After Tax 2,134 2,071 +3% Standalone Net Revenues 4,235 3,751 +13% Standalone Net Profit After Tax 1
Slide 15: 2024 1H Consolidated Net Profit After Tax Compositions: O-Bank
02 2024 1H Consolidated Net Profit After Tax Compositions: O-Bank Net Profit Compositions NT $ million (by Business Unit) 10 54 (0) 2,134 2024 1H 677 177 158 1,058 O-Bank CBF IBT Holdings Venture Capital Infinite Finance *2 Sunshine Other subsidiaries Consolidated Net (holding Business Consumer and
Slide 16: 2024 1H Standalone Net Profit After Tax Compositions: O-Bank
02 2024 1H Standalone Net Profit After Tax Compositions: O-Bank Net Profit Compositions NT $ million (by Business Unit) 2024 1H 158 10 54 (0) 1,635 163 192 1,058 O-Bank CBF IBT Holdings Venture Capital Infinite Finance Sunshine Other Standalone *2 (holding Business Consumer subsidiaries and Net Prof
Slide 17: Capital Adequacy and Asset Quality
02 Capital Adequacy and Asset Quality As of the end of 2024 1H, O-Bank’s BIS Ratio was 13.68%, Capital Tier1 Capital Ratio was 11.72%, and CET1 Ratio was 11.61%. O-Bank Adequacy maintained a healthy capital adequacy. As of the end of 2024 1H, O-Bank’s NPL ratio was 0.16% and loan loss Asset coverage
Slide 18: 2024 1H Financial Results
03 2024 1H Financial Results 03-3 Individual Financial Results: 03-1 Consolidated Financial Results China Bills Finance Corp. 03-2 Standalone Financial Results: 03-4 Individual Financial Results: O-Bank EverTrust Bank 17
Slide 19: Consolidated Financial Results
03-1 Consolidated Financial Results 18
Slide 20: Consolidated Financial Results
03-1 Consolidated Financial Results Total Assets Net Profit NT $ billion NT $ million Net Profit Total Assets Net Profit Attributable to Parent Bank Total Assets to Parent Company Growth Rate 8.56% 7.34%* 2.62% -0.06% 0.39% 5,808 673 627 575 575 577 5,034 YoY+3.08% 3,426 3,200 2,778 YoY+9.13% 420 2,
Slide 21: Consolidated Financial Results
03-1 Consolidated Financial Results Net Profit Compositions NT $ million 2024 1H 5,531 2,669 2,134 -2,545 -318 -534 Net Revenue Operating Expense Provision Profit before Tax Tax & Income(loss) Net Profit from discontinued operations YoY +8.76% +9.78% +47.37% +4.56% +10.97% +3.08% 2023 1H 5,086 2,552
Slide 22: Consolidated Net Revenue Breakdown
03-1 Consolidated Financial Results Net Revenue Breakdown NT $ million One-off Gain Others Gains on financial assets or liabilities measured at fair value / Foreign exchange gain(loss) Net Fee Income Net Interest Income 12,121 3,214 26.5% 9,315 9,544 8,907 589 6.2% YoY 8,056 725 7.8% 4.0% 479 460 5.
Slide 23: Standalone Financial Results - O-Bank
03-2 Standalone Financial Results -O-Bank- 22
Slide 24: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank Net Profit before Tax from Bank grew 33% YoY Net Profit before Tax NT $ million Net Profit NT $ million One-off Gain One-off Gain Share of profit of associates subsidiaries Net Profit Net Profit before Tax from Bank 5,242 5,034 3,030 YoY 2,801 YoY+9.13% +11.
Slide 25: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank ROE & ROA was higher than 1H23 ROE & ROA NIM & Spread ROE Spread ROE(excl. one-off gain) ROA NIM ROA(excl. one-off gain) NIM with FX Swap 13.59% 1.71% 1.69% 1.66% 1.53% 1.56% 1.41% 1.18% 1.17% 1.19% 8.13% 1.08% 5.64% 6.41% 7.84% 0.84% 0.80% 5.12% 0.95% 3.33%
Slide 26: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank Gains from FVPL and fee incomes grew more than 40% YoY Net Revenue Breakdown One-off Gain NT $ million Others Share of profit of associates subsidiaries and accounted for using equity method Gains on financial assets or liabilities measured at fair value / F
Slide 27: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank Cost/Income NT $ million NT $ Ratio EPS Operating Expense Operating Expense(excl. one-off exp.) Net Revenue Net Revenue(excl. one-off gain) Cost Income Ratio(Excl. One-Off Gain ) Cost Income Ratio 64.18% 1.80 54.83% 53.94% 52.74% 9,064 47.96% 47.11% YoY+10.0
Slide 28: Standalone Financial Results: Loan & Deposit Balances
03-2 Standalone Financial Results: O-Bank Loan & Deposit Deposit Balances NT $ billion Breakdown NT $ billion FCY Time FCY Demand % of the total Deposits Loans LDR deposits NTD Time NTD Demand 302 315 70.44% 279 67.57% 68.37% 66.81% 253 65.56% 106 34% 315 238 96 32% 302 80 29% 279 47 19% 42 18% 253
Slide 29: Standalone Financial Results: Composition of Depositors
Standalone Financial Results: O-Bank 03-2 Deposit structure continued improving Composition of Depositors Financial Institution Large Corp. SME Retail 315 302 279 55 17% 54 18% 253 238 66 24% 72 28% 22% 52 177 56% 178 59% 165 59% 57% 143 60% 143 18 6% 16 5% 4% 12 4% 9 4% 11 21% 54 18% 65 12% 14% 36
Slide 30: Standalone Financial Results: Loan Breakdown
03-2 Standalone Financial Results: O-Bank Loan Breakdown Loan Breakdown by Product NT $ billion by Industry Corporate Loans Personal Loans Mortgages 222 207 Mortgages, 6.52% 189 Construction Personal Loan, Manufacturing, engineering, 7.17% 166 1.97% 15.79% 159 Others, 5.84% Medical care, 0.95% Real
Slide 31: Standalone Financial Results: Asset Quality
03-2 Standalone Financial Results: O-Bank Asset Quality NT $ million NT $ million Loan Loss Reserve/NPL NPL Loan Loss Reserve LLR Ratio(Loan Loss Reserve/Total Loans) NPL Ratio 1506.8% 0.42% 0.41% 0.35% 431.5% 918.0% 309.7% 353.6% 0.16% 0.09% 1.53% 1.44% 1.46% 1.43% 1.31% 3,253 2,883 2,947 705 668 2
Slide 32: Standalone Financial Results: Capital Adequacy
03-2 Standalone Financial Results: O-Bank Capital Adequacy CAR Tier I CET1 Ratio (CAR) 14.71% 14.49% 13.97% 13.63% 13.68% 12.67% 13.51% 12.72% 12.54% 12.36% 11.72% 11.46% 12.09% 11.61% 11.34% 2020 2021 2022 2023 1H24 Note: Data as of year end, 2020-2023. 31
Slide 33: Standalone Financial Results: BV per share continued to grow
03-2 Standalone Financial Results: O-Bank BV per share continued to grow EPS/BVPS: NT $ Book Value Per Share P/B Ratio EPS EPS(excl. one-off gain) 0.8 0.78 0.75 0.67 0.67 0.59 13.30 13.47 12.76 12.45 11.75 12.02 1.80 3,030 0.87 0.69 0.63 0.55 0.5 0.41 2020 2021 2022 2023 1H23 1H24 Note: Data as of y
Slide 34: Individual Financial Results - China Bills Finance Corp.
03-3 Individual Financial Results -China Bills Finance Corp.- 33
Slide 35: Individual Financial Results: China Bills Finance Corp.
Individual Financial Results: 03-3 China Bills Finance Corp. Net Profit Net Revenue NT $ million NT $ million Others Net Fee Income Net Interest Income 1,858 2,847 1,578 2,507 287 10.1% 194 7.7% 1,289 YoY-12.59% 2,019 1,645 YoY -7.47% 1,301 1,040 45.7% 463 1,192 22.9% 47.6% 775 1,168 1,188 677 71.0%
Slide 36: Individual Financial Results: China Bills Finance Corp.
Individual Financial Results: 03-3 China Bills Finance Corp. Assets ROE, ROA & EPS ROE ROA NT $ billion Total Assets 7.28% Outsanding Balances of Guarantee 6.94% 6.40% 10.50% Growth Rate of Guarantee Balances 5.49% 5.52% 7.08% 6.75% 4.79% 4.38% 0.83% 0.76% 0.76% 0.60% -9.21% 0.59% 237 0.48% 229 218
Slide 37: Individual Financial Results: China Bills Finance Corp.
Individual Financial Results: 03-3 China Bills Finance Corp. NPL & Reserve for CAR Guarantee Liabilities NT $ million Reserve for Guarantee Liabilities 資本適足率(CAR) CAR (Total Capital) NPL Ratio 第一類資本佔風險資產比率 Tier I Capital 1,375 1,382 1,382 1,371 1,371 13.74% 13.36% 13.18% 13.39% 12.80% 12.65% 13.12%
Slide 38: Individual Financial Results - EverTrust Bank
03-4 Individual Financial Results -EverTrust Bank 37
Slide 39: Individual Financial Results: EverTrust Bank
03-4 Individual Financial Results: EverTrust Bank Net Profit Net Revenue USD million USD million Net Revenue Net Interest Income 36.3 12.3 32.5 32.6 33.1 11.6 YoY-21.86% 35.3 32.4 9.5 29.9 30.3 YoY-7.49% 7.1 18.5 17.1 5.6 18.0 4.2 16.3 2020 2021 2022 2023 1H23 1H24 2020 2021 2022 2023 1H23 1H24 Note
Slide 40: Individual Financial Results: EverTrust Bank
03-4 Individual Financial Results: EverTrust Bank Assets, Loans & ROE, ROA & EPS Deposits USD million ROE ROA Total Assets Loans 6.53% Deposits Growth Rate of Loans 5.96% 5.47% 7.60% 4.86% 5.00% 3.37% 1.71% 3.16% -16.65% 1.87% 1.68% 1.20% 1.28% 1.25% 1,000 995 0.99% 0.48% 890 871 839 757 775 2020 20
Slide 41: Individual Financial Results: EverTrust Bank
03-4 Individual Financial Results: EverTrust Bank NPL Ratio & CAR Coverage Ratio Coverage Ratio 12974% 9852% 30.47% 29.24% 29.70% 5505% 29.03% 22.48% 87% 76% 2020 2021 2022 2023 1H24 4.27% NPL Ratio 2020 2021 2022 2023 1H24 1.47% 0.01% 0.01% 0.03% 2020 2021 2022 2023 1H24 Note: Data as of year end,
Slide 42: Key Strategic Focuses
eo. C@oe “04 Key Strategic Focuses e © BANK
Slide 43: Boutique Digital Bank Strategy
04 “Boutique Digital Bank” Strategy Grow Light-Capital Optimize Deposits Businesses Structure Strengthen sales of products Focus on cultivating small that utilize zero or low business and retail deposits to risk-weighted capital to improve the efficiency of Dig Deep improve the quality of profit ass
Slide 44: Boutique Digital Bank Strategy
04 “Boutique Digital Bank” Strategy Grow Light-Capital Strengthen corporate banking services platform, with a focus on low risk- weighted capital products such as TMU and trade financing. Businesses Enhance wealth management services platform by enriching product offerings Strengthen sales of pr
Slide 45: Boutique Digital Bank Strategy
04 “Boutique Digital Bank” Strategy Leveraging resources in all of O-Bank Group, explore business and investment Accelerate Overseas opportunities in Australia and Southeast Asia, for more diversified assets Expansion allocation and robust profit structure. Extend O-Bank Group’s footprint to Est
Slide 46: Strategic Investment Portfolio Business Overview
04 Strategic Investment Portfolio Business Overview Beijing Sunshine Beijing Sunshine Consumer Finance (Investment under Equity Method) • Deepen B2B2C collaboration Infinite Finance with various scenario-based platforms to bolster the consumer finance ecosystem and improve profit structures. EverTru
Slide 47: ALL FOR YOU
ALL FOR YOU - wuo-banicom
Slide 48: Appendix: Financial Summary of O-Bank and Its Main Subsidiaries
05 Appendix: Financial Summary of O-Bank and Its Main Subsidiaries 47
Slide 49: O-Bank Financial Summary
O-Bank-Financial Summary (NT $ million) 2Q24 1Q24 4Q23 3Q23 1H24 1H23 YoY Income Statement Interest income 3,068 2,966 2,728 3,081 6,034 4,940 22% Interest expense (2,458) (2,366) (2,171) (2,418) (4,824) (3,855) 25% Net interest income 610 600 558 662 1,210 1,085 12% Fee income 247 447 207 232 694 4
Slide 50: CBF Financial Summary
CBF-Financial Summary (NT $ million) 2Q24 1Q24 4Q23 3Q23 1H24 1H23 YoY Income Statement Interest income 978 961 864 801 1,939 1,470 32% Interest expense (903) (880) (803) (751) (1,783) (1,335) 34% Net interest income 75 82 60 50 156 135 16% Fee income 323 372 303 322 695 686 1% Other income 25 223 (
Slide 51: ETB Financial Summary
ETB-Financial Summary (USD $ thousand) 2Q24 1Q24 4Q23 3Q23 1H24 1H23 YoY Income Statement Interest income 13,765 13,284 12,644 13,399 27,049 24,203 12% Interest expense (5,513) (5,259) (4,526) (4,218) (10,772) (6,155) 75% Net interest income 8,252 8,025 8,118 9,181 16,277 18,048 -10% Fee income 169