Far Eastern International Bank · TWSE:2845

Far Eastern International Bank — Q2 2022 Earnings Presentation

25 slides from Far Eastern International Bank's earnings presentation, Oct 19, 2022

  1. Slide 1: Investor Conference 2Q'2022

    Investor Conference 2Q’2022 10/19’2022

  2. 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$3,114 Bn. (1H’22) Petrochemical & energy Polyester & synthetic fiber Cement & building material Retail & department store Financial services – 11 companies in oper

  3. Slide 3: Contents

    Contents Financial Highlights Key Strategies 3

  4. Slide 4: Assets & Net worth

    Assets & Net worth  Assets  Net Worth (NT$Bn) (NT$Bn) YoY YoY YoY YoY +8.5% +2.0% -1.0% +6.3% 759 723 700 35 50 48 680 49 48 -2 36 33 69 0 0 36 51 39 1 40 14 13 14 13 211 216 228 221 35 36 35 36 407 416 439 383 2020 YE’20 2021 YE’21 1H'21 6/30’21 1H'22 6/30’22 2020 YE’20 2021 YE’21 6/30’21 1H'21 6

  5. Slide 5: Loans & Deposit

    Loans & Deposit  Gross Loan  Deposit (NT$Bn) (NT$Bn) YoY YoY YoY YoY +5.2% +7.4% +5.4% +6.2% 627 612 444 582 584 413 422 77 389 79 78 94 74 70 93 93 67 88 56 60 145 206 210 144 143 202 202 143 58 50 55 50 50 45 39 270 37 250 260 245 70 81 91 97 2020 YE’20 2021 YE’21 6/30’21 1H'21 6/30’22 1H'22 202

  6. Slide 6: Liquidity

    Liquidity  Demand Deposit ratio  Gross loan-to-deposit ratio 36.99% 37.02% 36.33% 35.44% 72.96% 72.23% 70.91% 70.18% 69.77% 2020 YE’20 1H'21 6/30’21 2021 YE’21 1H'22 6/30’22 69.68% 67.49%  Liquidity coverage ratio 66.81% 142.42% 142.22% 136.00% 128.31% YE’20 2020 6/30’21 1H'21 YE’21 2021 6/30’22

  7. Slide 7: Asset Quality

    Asset Quality  NPL Ratio  NPL Coverage Ratio  Loan Coverage Ratio 0.51% 1.46% 827% 773% 0.38% 627% 1.40% 621% 0.27% 1.35% 0.23% 568% 496% 1.37% 1.32% 0.22% 1.35% 0.21% 0.18% 0.16% 366% 286% 1.32% 1.32% Dec'20 YE’20 Jun'21 Dec'21 6/30’21 Jun'22 YE’21 6/30’22 Dec'20 YE’20 Jun'21 Dec'21 6/30’21 YE’2

  8. Slide 8: Revenue & Profit before provision

    Revenue & Profit before provision  Revenue  PPOP (NT$Bn) (NT$Bn) YoY -3.8% YoY YoY -1.6% -5.4% 11.2 YoY 0.3 10.8 4.4 -0.8% 0.1 4.1 1.4 1.1 5.6 5.5 0.2 0.2 0.6 0.4 2.2 2.2 3.5 3.0 1.7 1.5 (11.1%) 6.0 6.6 3.4 +8.3% 3.2 2020 2021 Y-T-Jun'21 1H’21 Y-T-Jun'22 1H’22 2020 2021 Y-T-Jun'21 1H’21 Y-T-Jun'22

  9. Slide 9: Interest Margin

    Interest Margin  Net Loan Yield* & NIM  Loan-to-Deposit Spread & NIS * =(Avg. loan revenue – Avg. deposit cost) / Avg. loan balance 1.45% 1.39% 1.37% 1.36% 1.26% 1.16% 1.14% 1.10% 1.06% 1.04% 1.08% 1.02% 1.00% 1.01% 1.01% 1.01% 2020 1H'21 2021 1H'22 2020 1H'21 2021 1H'22  Load Yield  NIM  Loan-

  10. Slide 10: Provision & Income before tax

    Provision & Income before tax  Provision Cost  IBT (NT$Bn) (NT$Bn) YoY YoY YoY YoY -44.5% -51.1% +14.4% +17.3% 3.3 2.9 1.9 Net 1.6 1.5 1.9 Net Net 0.6 Net 0.8 0.8 0.3 1.2 0.6 0.4 0.4 0.2 0.3 2020 2021 Y-T-Jun'21 1H’21 Y-T-Jun'22 1H’22 2020 2021 Y-T-Jun'21 1H’21 Y-T-Jun'22 1H’22  Gross Provision c

  11. Slide 11: Income Before Tax

    Income Before Tax (NT$Bn) +35.9 -0.9 -27.3 -1.5 Industry 176 182 Y-T-Jun'21 1H’21 Revenue Human Resource Other Expense NCL Y-T-Jun'22 1H’22 Expense -0.09 +0.02 +0.05 +0.30 1.93 1.64 FEIB Y-T-Jun'21 1H’21 Revenue Human Resource Other Expense NCL Y-T-Jun'22 1H’22 Expense Source: FSC / Consolidated num

  12. Slide 12: Net Profitability

    Net Profitability  ROA (before tax)  ROE (before tax) 0.63% 8.79% 0.59% 0.59% 0.61% 8.53% 8.08% 7.75% 0.52%* 7.86%* 0.48%* 0.47% 6.74%* 6.71% 0.43% 6.02% 2020 1H’21 Y-T-Jun'21 2021 Y-T-Jun'22 1H’22 2020 1H’21 Y-T-Jun'21 2021 Y-T-Jun'22 1H’22  Industry  FEIB * Annualized Source: Management Report

  13. Slide 13: Revenue & Income before tax

    Revenue & Income before tax  Revenue  IBT (NT$Bn) (NT$Bn) YoY YoY -0.4% +15.6% 8.4 8.4 2.9 2.5 Y-T-Sep'21 Y-T-Sep'22 Y-T-Sep'21 Y-T-Sep'22 13 Source: MOPS

  14. Slide 14: Capital Adequacy

    Capital Adequacy  CET1 (unconsolidated)  BIS (unconsolidated) (NT$Bn) 15% 473 500 14.10% 14.00% 13.95% 433 429 13.41% 408 400 10% 11.03% 10.87% 10.51% 9.85% 300 200 5% 11.49% 10.94% 11.30% 10.46% 100 45 45 47 47 0% 0 2020 YE’20 1H'21 6/30’21 2021 YE’21 1H'22 6/30’22 2020 YE’20 1H'21 6/30’21 2021 Y

  15. Slide 15: SPO Impact

    SPO Impact  SPO: NT$4.81 Bn. closed on 10/5’22  CET1 (unconsolidated)  BIS (unconsolidated)  Net Worth (NT$Bn) 14.42% 53 10.86% 9.85% 13.41% 48 1H'22 6/30’22 YE'22 After (est.) SPO 1H'22 6/30’22 YE'22 (est.) After SPO 1H'22 6/30’22 YE'22 After(est.) SPO 15

  16. Slide 16: Contents

    Contents Financial Highlights Key Strategies 16

  17. Slide 17: Long-term steady growth

    Long-term steady growth  Assets (NT$Bn) 1,000 Deposit CAGR(‘16~’21) CAGR +5.9% +6% CAGR +5.2% Loan CAGR(‘16~’21) +3% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 17

  18. Slide 18: Niche Banking

    Niche Banking High Margin Niche High Productivity Business Business Staffing  Revolving mortgage  Lead bank of int’l  Improving CIR by  Offshore lending syndication loans controlled h/c#  WM - PI/HNW  Credit investment customers  RPA (Robotic  B2B consumer process  Card - high spending loan

  19. Slide 19: Digital Banking

    Digital Banking  Metaverse Branch  RPA、STP、  Open banking Ⅱ O2O  BAAP/BAAS  AI/Chatbots  Online loan/  AML/RegTech investment  Overseas  e-ID checking - ETF/equity sub- video, NFC brokerage Off - counter % Digital customer acquisition % APP % Bankee (As at Sep.’22)  Customers #: 161,530 95

  20. Slide 20: Offshore market

    Offshore market  Overseas assets /Total assets 16.4 13.2 % % 1H'21 1H'22  Offshore lending  New Cross-border syndication lead (US$MM, per year) $1,129  Focus on syndicated loan & $1,544 structured finance $200 $748 $360  Types: M&A, share purchase, $877 #37 deals green financing & SLL* $615 Cum

  21. Slide 21: ESG Strategies

    ESG Strategies ENVIRONMENT  Equator Principles & TCFD  ISO 14064-1 Greenhouse Gas Emission  ISO 14001 Environmental Management Systems SOCIAL  2022 Best Companies To Work For (HR Asia)  Equal opportunities & friendly working  Corporate governance environment evaluation  Top 5% in listed com.

  22. Slide 22: Contents Appendix

    Contents Far Eastern Intl Bank & i WO GO BT

  23. Slide 23: Key Financials

    Key Financials (NT$ m, except percentages and per share data) As of or for 12 months ended (Consolidated) December 31 2020 2021 1H'21 1H'22 YoY Key balance sheet items Gross loans 388,857 412,872 421,659 444,405 5.4% Total assets 680,291 723,055 699,581 758,859 8.5% Deposits and remittances 582,153

  24. Slide 24: Thank You

    & PEC LiLes i Far Eastern Int'l Bank THANK YOU

  25. Slide 25: 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

Far Eastern International Bank — Q2 2022 Earnings Presentation on 6ix