Mega Financial Holding Co., Ltd. · TWSE:2886
Mega Financial — Q4 2007 Earnings Presentation
22 slides from Mega Financial's earnings presentation, 2008
Slide 1: 4Q / 2007 Investor Presentation
4Q / 2007 (v.2) Investor Presentation
Slide 2: Agenda
Agenda 1 Operation Highlights 2 Financial Performance 3 Appendix 2
Slide 3: Strong SME loan growth
Strong SME loan growth YTD Mega Bank loan balance trend * Growth Unit: NT$bn 6.6% Total: 1,158 Total: 1,181 Total: 1,190 Total: 1,206 Total: 1,131 529 548 546 Large corp. 518 523 YTD Growth 19.8% 282 287 296 309 SME 258 17 22 42 44 41 Other corp. 92 92 50 51 Gov.-linked 75 201 204 208 210 213 Mortga
Slide 4: Loan mix changes to improve yield
Loan mix changes to improve yield Mega Bank loan mix trend * Unit: NT$bn Total: 1,131 Total: 1,158 Total: 1,181 Total: 1,190 Total: 1,206 46% 45% 45% 46% 45% Large corp. 23% 24% 24% 25% 26% SME 2% 2% 4% Other corp. 8% 4% 3% 8% Gov.-linked 6% 4% 4% 18% 18% 18% 18% 18% Mortgage 4% 3% 3% 4% 4% Other co
Slide 5: Strong off-shore loan growth
Strong off-shore loan growth Mega domestic branches / OBU / overseas branches loan balance and loan mix trend* Unit: NT$bn YTD Growth 27% are 35% off-shore loan Overseas branches 12% 13% 14% 14% 15% 164 177 133 145 160 9% OBU 10% 11% 11% 12% 105 118 129 134 144 Domestic 79% 77% 75% 75% 877 869 878 8
Slide 6: Strong foreign currency deposit growth
Strong foreign currency deposit growth Mega Bank deposit balance and mix Unit: NT$bn Total: 1,289 Total: 1,195 Total: 1,241 Total: 1,136 345 FX time deposit 26% 328 27% 26% 27% 323 293 NTD time deposit 409 440 470 34% 34% 35% 36% 388 156 156 FX demand deposit 12% 12% 13% 138 146 12% 317 317 317 318
Slide 7: Much improved NIM and interest spread
Much improved NIM and interest spread Mega Bank net interest margin * Mega Bank loan interest spread 1.61% 1.69% 1.62% 1.58% 1.44% 1.41% 1.41% 1.36% 1Q/07 2Q/07 3Q/07 4Q/07 1Q/07 2Q/07 3Q/07 4Q/07 * Net interest income / average interest earning assets ** 4Q/07 numbers are un-audited numbers 7
Slide 8: OBU and overseas bank branches earning growth continues
OBU and overseas bank branches earning growth continues 48.2% 46.7% Offshore earning contribution (%)* 34.9% 36.8% 29.7% Unit: NT$MN 1 4,483 4,618 OBU pretax earning ** 4,716 3,441 3,558 2 2,232 3,089 2,773 3,473 Overseas branches pretax earning *** 1,811 2003 2004 2005 2006 2007 1. 2007 OBU earning
Slide 9: Mega Bank's Global Franchise
Mega Bank’s Global Franchise Bridge the gap, reach the world Toronto London Amsterdam Richmond Toronto -Chinatown Vancouver Paris Silicon Valley Chicago New York Tokyo Suzhou** Osaka Los Angeles Bahrain* Macau** HK Taiwan (OBU) Abu Dhabi** Phnom Penh** Colon Mumbai** Bangkok Ha Noi** Chonburi Ho Chi
Slide 10: Strong Wealth Mgmt AUM growth
Strong Wealth Mgmt AUM growth Mega Wealth management AUM Unit: NT$BN Total: 161.0 Total: 150.8 Total: 137.5 36.0 Bancassurance Total: 126.0 34.1 32.1 16.4 Total: 107.5 27.8 16.1 Structured Note 16.1 15.8 Total: 86.8 16.1 11.6 16.6 63.3 69.3 14.5 55.0 Overseas Fund 47.6 50.2 31.1 29.6 27.2 31.9 34.6
Slide 11: WM fee reached record high in 2007
WM fee reached record high in 2007 Wealth management net fee income trend* 1~4Q/07 Mega Bank fee income breakdown*** Management Fee** Unit: NT$MN Mutual Fund Fee Bancassurance Fee Total: 630 Structured Notes Fee 59 Total: 590 Others Credit card fee 1% 73 Wealth Mgmt fee 6% Total: 471 28% 54 Treasury
Slide 12: Continue to build up WM channels and FC team
Continue to build up WM channels and FC team 6 Wealth Mgmt VIP centers WM channel strategy HK & Future target Leveraging Singapore corp. banking areas: branch Sanchong Taipei & Sydney started to overseas Vancouver develop WM branches Tokyo channels operation in Branches Hsinchu 2007 Numbers of WM fi
Slide 13: Agenda: Financial Performance
Agenda 1 Operation Highlights 2 Financial Performance 3 Appendix 13
Slide 14: 1~4Q/2007 earning breakdown by subsidiaries
1~4Q/2007 earning breakdown by subsidiaries 1~4Q/07 earning contribution by sub. Unit: NT$MN 25 371 2,095 ( 326 ) 1,397 17,070 13,508 1 1 1 1 1, 2 3 Mega Bank Mega Mega Bills Chung Kuo Other Subs. FHC expense Mega FHC Securities Insurance & tax adjustment 1. un-audited subsidiary earning deducts emp
Slide 15: Mega FHC consolidated net revenue breakdown
Mega FHC consolidated net revenue breakdown 2006 vs. 2007 net revenue * 2007 net revenue breakdown 2006 2007 Unit: NT$MN Insurance Other 26,296 premium Income 23,770 2.5% 3.2% Capital & 10.6% asset gain 18.4% 11,485 Net interest 9,327 8,655 income 7,144 56.0% Net fee 3,272 income 30.6% 1,410 1,167 1
Slide 16: Superior asset quality among peers
Superior asset quality among peers NPL balance & NPL ratio* Loan loss reserved and coverage ratio* Mkt Avg ** Mega 2.40% 2.32% 2.32% 2.13% 104.84% 67.12% 70.88% 77.72% 71.75% Mega 1.49% Mkt Avg ** 0.88% 1.29% 1.07% 1.00% 58.85% 53.91% 48.64% 54.50% 17,039 15,159 11,437 10,363 10,745 12,692 9,865 12,
Slide 17: Conservative balance sheet position
Conservative balance sheet position Mega FHC* Mega Bank** Total Tier I CAR Moody’s: Baa1 Regulatory Moody’s: A1 / S&P: A Regulatory Requirement : 100% Requirement : 8.0% 108.42% 119.46% 110.57% 108.99% 10.90% 10.51% 10.34% 10.54% BASEL II 8.34% 8.60% 8.52% 9.53% implementation fully reflected 2004 2
Slide 18: Focus on providing consistent yields for investors
Focus on providing consistent yields for investors Key Earning Metrics 13.57% To increase our ROE and prevent 12.59% 12.10% over-inflated capital base, we have 1.13% paid 100% cash dividend in the last 8.66% 4 years. 1.06% 1.04% ROE 7.61% Payout ratio of 70% ~100% Dividend policy is to pay 50%
Slide 19: Agenda: Appendix
Agenda 1 Operation Highlights 2 Financial Performance 3 Appendix 19
Slide 20: 2007 Mega FHC un-audited P&L statement
2007 Mega FHC un-audited P&L statement NT$MN, except per share data 2007** 2006** YoY Net interest income 26,296 23,770 10.63% Net fee income 9,327 7,144 30.56% Insurance premium 1,167 1,410 -17.23% ST Trading gain 4,545 5,223 -12.98% Available for sales asset gain 2,508 2,792 -10.17% Hold to maturi
Slide 21: Well established size and scale to win
Well established size and scale to win 1~4Q/2007* Mega Financial Holding Co. (TAIEX.2886) NT$ Billion 100% 100% 100% 100% 96.31% 100% 100% 100% Chung Mega Mega Int’l Mega Life Mega Mega Mega Mega Kuo Investment Mega Insurance CTB FHC Bank Securities Bills Insurance AMC Venture Trust** Agency (P&C) C
Slide 22: Mega subprime exposure disclosure
Mega subprime exposure disclosure Mega US Subprime Exposure As of end of Jan/2008; Unit: NT$MN Mega Group Provision realized Securities Type Total Subprime balance exposure B/S I/S Total ABCP/CBO* 12,325 7,500 13 (2,449) (2,439) CDO 372 ** RMBS/CMO 2,647 2,647 (412) (1,216) (1,628) PPN 983 ** (169)
Mega Financial Holding — Q4 2007 Earnings Presentation on 6ix