Mega Financial Holding Co., Ltd. · TWSE:2886
Mega Financial — Q4 2013 Earnings Presentation
25 slides from Mega Financial's earnings presentation, 2014
Slide 1: 4Q / 2013 Investor/Analyst Briefing
4Q / 2013 (v.1) Investor/Analyst Briefing
Slide 2: Disclaimer
DISCLAIMER THE FINANCIAL INFORMATION IN THIS PRESENTATION AS OF AND FOR THE TWELVE MONTHS ENDED DEC. 31TH, 2013 ARE UN-AUDITED NUMBERS. MEGA FHC WILL FILED ITS AUDITED FINANCIAL STATEMENTS THROUGH THE TAIWAN STOCK EXCHANGE MARKET OBSERVATION POST SYSTEM ON MAR. 31TH, 2014. These materials are not an
Slide 3: Agenda
Agenda 1 Operation Highlights 2 Financial Performance 3 Appendix 3
Slide 4: Total loan was up 10.4% YoY
Total loan was up 10.4% YoY Mega Bank quarterly loan balance* Mega Bank 4Q/13 loan breakdown by customer Other Unit: NT$bn 1,614 1,660 Growth Trend consumer 6% Total:1,504 1,525 1,565 YoY: 10.4% Mortgage QoQ: 2.9% 15% Gov.-linked 2% Large corp. 728 44% 694 725 Other corp. 683 694 Large corp. 2% SME
Slide 5: Retail / wholesales and service industries loan growth continued while consumer loan picked up
Retail / wholesales and service industries loan growth continued while consumer loan picked up Mega Bank loan balance trend by industry* Mega Bank 4Q/13 loan breakdown by industry* Unit: NT$BN 4Q/13 3Q/13 4Q/12 514 Growth Trend Manufacturing 510 YoY: 6.2% 484 152 QoQ: 0.8% Transport & Telecom 152 Ot
Slide 6: OBU loan was up 20.0% YoY
OBU loan was up 20.0% YoY Mega Bank 4Q/13 loan breakdown by regions * Unit: NT$bn 221 Growth Trend 224 Overseas YoY: 6.8% 207 215 218 branches QoQ: -1.3% Overseas 323 329 branches 274 293 315 OBU 13% Growth Trend YoY: 20.0% QoQ: 1.9% OBU (offshore banking unit) 20% 1,017 1,032 1,067 1,110 1,023 Dome
Slide 7: FCY loan jumped 9.7% YoY
FCY loan jumped 9.7% YoY Mega Bank 4Q/13 loan breakdown by currency: NTD vs. foreign currency loan * Unit: NT$bn FCY Loan** 633 633 577 596 611 Growth Trend FCY Loan YoY: 9.7% 38.7% QoQ: 0% NTD Loan 61.3% NTD Loan 926 919 931 958 1,004 Growth Trend YoY: 8.4% QoQ: 4.8% 4Q/12 1Q/13 2Q/13 3Q/13 4Q/13 *
Slide 8: Asset quality remained strong
Asset quality remained strong Mega Bank NPL balance & NPL ratio* Mega Bank loan loss reserved and coverage ratio 0.45% Market 0.44% 0.44% 794.40% 0.40% 0.42% Avg. 0.38% 641.18% 0.41% 488.08% 606.66% 512.96% Mega 269.74% Mega Market Avg. 0.22% 0.23% 0.19% 319.18% 0.17% 274.09% 268.79% 260.83% 264.25%
Slide 9: New NPL was up due to TMT exposure but whole case is closed now
New NPL was up due to TMT exposure but whole case is closed now. Mega Bank NPL ratio by customer * Mega Bank new NPL as % of total loan ** Large corp. NPL% 0.65% 0.16% 0.27% New NPL 0.12% 0.12% 0.10% 0.87% 0.78% 3Q/12 4Q/12 1Q/13 2Q/13 3Q/13 4Q/13 0.43% 0.34% 0.34% 0.19% SME NPL % 0.34% 0.49% 0.32%
Slide 10: Deposit was up 13.3% YoY, driven by FX deposit
Deposit was up 13.3% YoY, driven by FX deposit. Mega Bank’s deposit balance * Mega Bank’s demand deposit trend (%) Unit:NT$bn Growth Trend YoY: 13.3% 51.25% 50.67% 50.28% 50.44% QoQ: 8.0% 49.99% 1,920 1,782 1,777 48.46% Demand 1,736 Total: 1,634 1,694 Deposit (%) 407 FX time 335 342 deposit 317 321
Slide 11: Helped maintain relatively lower LDR
…which helped maintain relatively lower LDR Mega Bank’s loan to deposit ratio (LDR) trend* 94.40% 93.80% 93.70% 93.20% 95% 92.30% 90.76% LDR (Total) 87.74% 87.73% 87.75% 85% 75% 1-4Q/11 1Q/12 1-2Q/12 1-3Q/12 1-4Q/12 1Q/13 1-2Q/13 1-3Q/13 1-4Q/13 * LDR calculation is based on average loan/deposit bal
Slide 12: Overseas spread number was misguided due to RMB asset-liability mismatch
Overseas spread number was misguided due to RMB asset-liability mix-match** Mega Bank total loan interest spread* Mega Bank overseas loan interest spread* Spread Yield cost Spread Yield cost 2.23% 2.18% 2.26% 2.15% 2.16% 2.16% 1.78% 1.75% 1.82% 1.67% 1.62% 1.58% 2.08% 2.06% 2.10% 2.07% 2.07% 2.07% 0
Slide 13: NIM continued to inch up
NIM continued to inch up Mega Bank quarterly NIM & NII * Mega Bank quarterly NTD NIM* 1.27% 1.12% 1.12% 1.25% 1.25% 1.10% 1.10% 1.09% 1.10% 1.10% 1.23% 1.05% 1.22% 1.22% 1.20% 1.19% 1Q/12 2Q/12 3Q/12 4Q/12 1Q/13 2Q/13 3Q/13 4Q/13 Unit: NT$MN Mega Bank quarterly foreign currency NIM* 8,103 7,301 7,60
Slide 14: Mutual fund sales improved while structured product sales softened
Mutual fund sales improved while structured product sales softened Mega Bank quarterly wealth management gross fee revenue breakdown by product * Unit: NT$MN 616 619 584 74 104 523 530 517 490 132 Total: 468 112 Management fee** 94 93 99 107 87 100 107 108 138 159 Mutual fund fee 99 132 191 295 90 1
Slide 15: Bank fee was boosted by WM and syndication loan fee
Bank fee was boosted by WM and syndication loan fee Mega Securities Mega Bills Mega Bank net fee breakdown* net fee net fee 2012 2013 Unit: NT$MN 3,200 2,896 2,264 1,921 1,812 1,830 1,172 1,212 431 593 706 410 297 276 Wealth Mgmt** FX Corp. loan Custodian Credit card Securities Bills Highlights Mega
Slide 16: Agenda
Agenda 1 Operation Highlights 2 Financial Performance 3 Appendix 16
Slide 17: Group net revenue was up 6% YoY
Group net revenue was up 6% YoY. Mega Group consolidated net revenue * Mega Group 1-4Q/2013 net revenue breakdown Insurance Other Unit: NT$MN premium Revenue 1-4Q/2012 1-4Q/2013 3% 5% ** Net trading gain 17% 31,276 Net interest 29,572 income Net fee 57% revenue 18% Highlights Group net revenue was u
Slide 18: Well-capitalized for Basel III requirements
Well-capitalized for Basel III requirements** Mega FHC* Mega Bank CAR / RBC Regulatory Moody’s: A3 Regulatory Moody’s: A1 / S&P: A / Fitch: A- Requirement : Requirement : 100% 8.0% Tier I capital ratio 11.26% 11.56% 11.86% 11.06% 122.94% 125.55% 126.28% 126.79% Credit rating 9.42% 9.27% 9.66% 9.32%
Slide 19: Strong profitability and attractive dividend policy
Strong profitability and attractive dividend policy Key Profitability Ratios* To prevent over-inflated capital base 10.33% 9.95% as well as to maintain sufficient capital ROE 8.74% 7.62% for future growth, our dividend policy 7.66% is: 0.81% Maintain high payout ratio ROA 0.69% 0.77% 0.58% 0.61% At
Slide 20: 2013 Mega FHC consolidated P&L statement
2013 Mega FHC consolidated P&L statement* NT$MN, except per share data 2013* 2012* YoY 2012* Net interest income 31,276 29,572 6% 29,572 Net fee revenue 9,789 8,428 16% 8,428 Insurance premium 1,480 1,265 17% 1,265 Gain from fin. assets at fair value thru P&L 3,622 4,246 -15% 4,246 Available for sal
Slide 21: 2013 Mega FHC consolidated balance sheet
2013 Mega FHC consolidated balance sheet* NT$MN 2013* 2012* YoY 2012* YTD Assets: Cash and due from banks 551,247 458,490 20% 458,490 20% Bills and bonds under RP agreement 2,585 2,282 13% 2,282 13% Fin. assets at fair value through P&L 195,801 184,716 6% 184,716 6% AFS financial assets 272,944 223,
Slide 22: 2013 Mega Bank P&L statement
2013 Mega Bank P&L statement* NT$MN, except per share data 2013* 2012* YoY 2012* Net interest income 30,175 27,536 10% 27,536 Net fee revenue 7,440 6,619 12% 6,619 Gain from fin. assets at fair value thru P&L 749 1,944 -61% 1,944 Available for sales asset gain 1,291 1,015 27% 1,015 Equity method inv
Slide 23: 2013 Mega Bank balance sheet
2013 Mega Bank balance sheet* NT$MN 2013* 2012* YoY 2012* YTD Assets: Cash and due from banks 546,393 461,122 18% 461,122 18% Bills and bonds under RP agreement 5,452 - - - - Fin. assets at fair value through P&L 44,481 40,774 9% 40,774 9% AFS financial assets 184,450 131,162 41% 131,162 41% HTM fin
Slide 24: Agenda
Agenda 1 Operation Highlights 2 Financial Performance 3 Appendix 24
Slide 25: Most internationalized local bank
Most internationalized local bank. Mega Bank’s Overseas Franchise Toronto London Amsterdam Richmond Toronto -Chinatown Vancouver Paris Silicon Valley Chicago New York Tokyo Suzhou Osaka Los Angeles Bahrain* HK Taiwan (OBU) Phnom Penh Colon Abu Dhabi* Mumbai* Bangkok Chonburi Ho Chi Minh City Bangna
Mega Financial Holding — Q4 2013 Earnings Presentation on 6ix