Far Eastern International Bank · TWSE:2845
Far Eastern International Bank — Q3 2023 Earnings Presentation
22 slides from Far Eastern International Bank's earnings presentation, Nov 8, 2023
Slide 1: Investor Conference 3Q'2023
Investor Conference 3Q’2023 11/8’2023
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$3,178 Bn. (3Q’23) Petrochemical & energy Polyester & synthetic fiber Cement & building material Retail & department store Financial services – 11 companies in oper
Slide 3: Contents
Contents Financial Highlights Key Strategies 3
Slide 4: Highlights
Highlights Profitability Consecutive 2 years of double-digit YOY growth in IBT , reaching 93% of whole year earnings of 2022 Risk Management Improving NPL %, down to industry-avg. level Tightening overseas exposure, especially for China market Capital Strength Improving CET 1% and BIS %, bac
Slide 5: Assets & Net Worth
Assets & Net Worth Assets Net Worth (NT$Bn) (NT$Bn) YoY YoY +6.3% YoY +2.4% YoY 799 +10.2% 752 +10.6% 723 741 39 38 54 55 58 36 33 43 52 51 44 50 248 16 17 225 214 14 228 14 0 457 458 41 40 41 407 438 36 -2 -2 -1 YE'21 YE'22 9/30'22 9/30'23 YE'21 YE'22 9/30'22 9/30'23 Loan Investment Cash
Slide 6: Loans & Deposit
Loans & Deposit Gross Loan Deposit (NT$Bn) (NT$Bn) YoY YoY YoY +0.3% YoY +7.5% +7.6% -0.8% 463 464 665 444 612 607 619 413 95 100 14% 13% 13% 13% 96 8% 93 11% 9% 10% 145 147 146 36% 34% 36% 35% 144 61 52 54 50 61 58 45 60 42% 42% 42% 42% 81 88 100 106 YE'21 YE'22 9/30'22 9/30'23 YE'21 YE'22 9/30
Slide 7: Liquidity
Liquidity Gross loan-to-deposit ratio Liquidity coverage ratio 74.81% 73.12% 142.22% 72.48% 136.00% 70.18% 128.28% 70.70% 71.44% 69.77% 112.03% 67.49% YE'2021 9/30'22 YE'2022 9/30'23 YE'2021 9/30'22 YE'2022 9/30'23 By balance By averaged balance 7 Source: Consolidated number / FEIB website /
Slide 8: Asset Quality
Asset Quality NPL Ratio NPL Coverage Ratio Loan Coverage Ratio 0.36% 1.39% 0.35% 1145% (as on 8/31’23) 0.27% 907% 1.35% (as on 851% 8/31’23) 773% 1.33% 1.36% 1.36% 904% 0.16% 0.15% (as on 496% 0.18% 8/31’23) 0.15% 1.32% 1.31% 0.11% 377% 392% 1.28% YE'21 9/30'22 YE'22 9/30'23 YE'21 9/30'22 Dec'
Slide 9: Revenue & Profit Before Provision
Revenue & Profit Before Provision Revenue PPOP (NT$Bn) (NT$Bn) YoY YoY YoY YoY +8.8% +17.2% +15.0% +28.7% % 11.7 10.8 0.4 9.8 0.1 1.8 4.7 1.1 8.4 0.5 4.1 4.2 0.3 2.3 +207% 3.2 2.5 0.8 3.3 2.1 2.0 (1.3%) 6.4 7.0 5.3 5.0 (5.4%) 2021 2022 Y-T-Sep'22 Y-T-Sep'23 2021 2022 Y-T-Sep'22 Y-T-Sep'23 NII
Slide 10: Interest Margin & Fee Income
Interest Margin & Fee Income Interest Margin Fee Income (NT$Bn) DDR 37.02% 33.65% 33.12% YoY 31.93% -20.1% YoY -1.3% 1.42% 1.37% 1.42% 3.2 L-D Spread 1.33% 0.7 2.5 2.1 2.0 0.7 0.6 0.5 (14.1%) 13.2% 2.5 12.2% 12.2% 1.8 1.5 1.5 +3.9% 11.3% 2021 3Q'22 2022 3Q'23 2021 2022 Y-T-Sep'22 Y-T-Sep'23 Ov
Slide 11: Trading Income
Trading Income Trading Income (NT$Mil.) +162 -154 +1,014 +421 2,313 +117 753 Y-T-Sep'22 Stocks Bonds Credit Deriviates Deriviates SPOT FX Y-T-Sep'23 Other OCI -585 -2,004 +1,419 Jan 01'23 Y-T-Sep’22 Other OCI Y-T-Aug'23 Y-T-Sep’23 11 Source: Consolidated number / Management report
Slide 12: Provision & Income before tax
Provision & Income before tax Provision Cost IBT (NT$Bn) (NT$Bn) YoY YoY YoY YoY +26.9% +35.0% -33.1% -17.2% 4.2 3.9 3.3 2.9 Net Net 0.8 0.5 Net 1.2 0.4 Net 1.0 0.3 0.8 0.7 0.4 0.5 0.4 0.4 2021 2022 Y-T-Sep'22 Y-T-Sep'23 2021 2022 Y-T-Sep'22 Y-T-Sep'23 Gross Provision cost Recovery Net Pro
Slide 13: Net Profitability
Net Profitability ROA ROE 8.13%* 0.60%* 7.03% 0.50%* 6.55%* 0.45%* 5.97% 0.42% 2021 Y-T-Sep'22 2022 Y-T-Sep'23 2021 Y-T-Sep'22 2022 Y-T-Sep'23 * Annualized 13 Source: :Consolidated number
Slide 14: Capital Adequacy
Capital Adequacy BIS (unconsolidated) CET1 (unconsolidated) (%) (%) 11.89 11.63 11.46 11.73 14.98 14.74 14.90 14.81 10.45 11.25 10.87 11.05 14.60 14.58 10.38 13.95 13.90 13.49 2021 3Q'2022 2022 2Q'2023 3Q'2023 2021 3Q'2022 2022 2Q'2023 3Q'2023 Industry FEIB Source: FSC report / Management re
Slide 15: Contents
Contents Financial Highlights Key Strategies 15
Slide 16: FEIB 2023 Strategies
FEIB 2023 Strategies Steady asset growth Grow both investment and lending portfolio Deliberate leading growth momentum vs. balance control Sustainable earnings growth Manage interest spread Control provision cost Tightening risk management Scrutinize real estate lending Diversify offshor
Slide 17: Digital Innovation
Digital Innovation Banking digitization Internet-only bank - Business & Process - Bankee (As at Sep.’23) AI customer Customers #: service (Xiaole) 205,563 PoC of ChatGPT Deposit : Robo-Advisor for WM ~NT$ 16Bn. (~2.4% of total deposit) E-paper : New launch Real-estate APP 2.0 c
Slide 18: ESG Mission
ESG Mission Environmental Social Governance Environmental Meal program to rural Business Continuity management & energy county Management Certification efficiency certification (ISO 22301) (ISO 14001 & ISO 50001) FSC Care Trust Award #1 in B group Eagle Eyes Anti-Fraud MOEA Excellent E
Slide 19: Appendix
fH, we mm ee C O Nn t e Nn t S ep Far Easter Int'l Bank Appendix
Slide 20: Financial Highlights
Contents (NT$ m, except percentages and per share data) As of or for 12 months ended (Consolidated) December 31 2021 2022 3Q'22 3Q'23 YoY Key balance sheet items Total assets 723,055 740,540 751,866 799,257 6.3% Gross loans 412,872 444,082 462,669 464,283 0.3% Deposits and remittances 612,107 607,42
Slide 21: Thank You
& PEC LiLes i Far Eastern Int'l Bank THANK YOU
Slide 22: 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
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