First Financial Holding Co. Ltd. · TWSE:2892

First Financial — Non-Deal Roadshow (April 2009)

43 slides from First Financial's roadshow presentation, Apr 18, 2009

  1. Slide 1: Investor Presentation FFHC 2008 - audited

    Investor Presentation FFHC 2008 - audited April 2009 Euro NDR

  2. Slide 2: Disclaimer

    Disclaimer This presentation is provided by First Financial Holding Co., Ltd. (“FFHC”). The information contained within is not reviewed or reviewed by any accountant or any independent third party. Users should read this material in conjunction with all other public financial and operational inform

  3. Slide 3: Contents

    Contents - Financial Highlights - Asset Quality Review - Operating Results - Company Overview - Appendix 3

  4. Slide 4: 2008 Financial Highlights

    2008 Financial Highlights -audited

  5. Slide 5: 2008 Financial Highlights

    2008 Financial Highlights Net Income Total Asset (in NT$ mn) (in NT$ mn) -43.3% 7.0% 7,077 1,800,114 07: 12,485 07: 1,682,097 EPS ROAE (in NT$) -41.2% -43.1% 1.20 6.86% 07: 2.04 07: 12.05% 5

  6. Slide 6: 2008 Key Figures

    2008 Key Figures 4Q08 Earnings Breakdown1 ( in NT$ mn) Key Figures ( in NT$ dollar, NT$ mn, mn shares or %) Insurance YoY % 2006 2007 2008 NT$(327); -4.0% Net Income 10,662 12,485 7,0771 ª 43.3% Investment Trust Others NT$167; 2.1% NT$(36); -0.4% Total Assets 1,600,903 1,682,097 1,800,114 © 7.0% EPS

  7. Slide 7: 2008 Asset Quality Review - FB

    2008 Asset Quality Review -FB

  8. Slide 8: FB 4Q08 Asset Quality

    FB 4Q08 Asset Quality NPL Amount, Reserve, Coverage (in NT$ mn or % ) Coverage Ratio NPL Ratio NPL NPL Reserve 1.65% 1.57% 1.63% 1.64% 1.55% 1.50% 1.49% 1.45% 1.40% 1.36% 50.40% 52.15% 50.66% 52.82% 51.38% 53.84% 54.18% 54.67% 55.00% 55.36% 15,551 15,406 16,137 15,956 17,080 16,234 15,761 15,293 15,

  9. Slide 9: NPL Migration by Sectors

    NPL Migration by Sectors 4Q07 1Q08 2Q08 3Q08 4Q08 Individual1 1.41% 1.52% 1.42% 1.44% 1.47% Mortgage2 1.21% 1.28% 1.24% 1.26% 1.30% Large Corp. 1.66% 1.66% 1.82% 1.60% 1.54% SME 2.36% 2.12% 2.00% 2.00% 2.00% Domestic 1.65% 1.63% 1.54% 1.47% 1.43% Overseas 0.53% 0.54% 0.51% 0.75% 1.53% Total 1.50% 1.

  10. Slide 10: New NPL Influx Breakdown – 1/2

    New NPL Influx Breakdown – 1/2 NPL (in NT$ mn Item 2007 2008 Item 2007 2008 Year-end NPL Bal. 16,234 16,916 New NPL Influx 5,738 6,420 Write-off - Domestics 4,630 3,599 Total Loan 1,079,911 1,169,534 Write-off - Overseas 280 2,139 Ratio 0.53% 0.55% Total Write-offs 4,910 5,738 New NPL Influx ( in NT

  11. Slide 11: New NPL Influx Breakdown- 2/2

    New NPL Influx Breakdown- 2/2 NPL (in NT$ mn Item 2008Q4 Item Domestic Oversea 3Q-end NPL Bal. 14,391 1,253 New NPL Influx 4,262 +) 4Q New NPL influx 2,199 2,063 Net Write-offs (2,991) -) 4Q NPL write-offs 2,257 734 2008Q4 Net NPL 1,271 = 4Q-end NPL Bal. 14,333 2,583 08 4Q Oversea Breakdown (major b

  12. Slide 12: Exposure to Troubled Financial Institutions

    Exposure to Troubled Financial Institutions Institutions Product Amount Provision /total (in NT$ BN) (in NT$ BN) Iceland Lehman Brothers Loan 1.40 1.10 78.6% Washington Mutual Bond 0.33 0.27 81.8% Icelandic banks Loan + Bond 2.80 2.65 94.6% 4.53 4.02 88.7% 12

  13. Slide 13: 2008 Operating Results

    2008 Operating Results - audited

  14. Slide 14: 2008 Operating Results

    2008 Operating Results 2008 Consolidated Income & Loss (in NT$ mn) 44,637 (17,111) Insurance 11,240 Bank 7,130 (18,370) (2,079) 7,077 1 2 Net Revenue Operating Provision Income Tax Net Income Expenses 2007 Consolidated Income & Loss (in NT$ mn) 39,693 (16,960) (6,061) (4,187) 12,485 Net Revenue Oper

  15. Slide 15: Profitability

    Profitability 2008 FFHC & Major Subsidiaries FFHC Net Income (in NT$ mn ) FB Net Income (in NT$ mn) Total Asset: 1,800,114 Total Equity: 100,097 Total Asset: 1,765,541 Total Equity: 89,457 ROAE1 6.86% ROAE1 10.01% -25.45% -43.32% 12,485 8,965 12,026 7,077 2007 2008 2007 2008 1. Annualized ROAE 2. Mi

  16. Slide 16: Profitability

    Profitability 2008 FFHC & Major Subsidiaries First Sec Net (in NT$ mn ) First Securities Net (in NT$ mn ) FSITC Net (in NT$ mn ) First-Aviva4 Net (in NT$ mn ) Total Asset: 14,283 AUM: 91,238 Total Asset: 13,208 Total Equity: 6,269 AUM Ranking: 7 ROAE: (37.20%) ROAE (9.67 %) ROAE 16.95 % EPS: (2.85)

  17. Slide 17: Shareholder Return

    Shareholder Return FFHC Earnings Per Share ( in NT$ dollar ) EPS1 Dividend 1.86 2 2.05 2.43 1.79 1.20 1.25 1.50 1.82 1.20 0.75 2004 2005 2006 2007 2008 FFHC Dividend History ( in NT$ dollar ) 2004 2005 2006 2007 2008* Cash dividend 0.75 1.25 1.00 1.70 0.50 Stock dividend 0.50 0.25 0.20 0.12 0.25 Tot

  18. Slide 18: FFHC Profitability

    FFHC Profitability Quarterly Net Income (in NT$ mn) Net Income 4,418 3,219 3,219 3,451 2,955 2,494 2,618 2,732 2,073 (1179) 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q08 Annualized ROAE ( % ) Cumulative Net Income Annualized ROAE 12.83% 12.11% 12.81% 12.34% 11.08% 11.53% 10.85% 10.68% 9

  19. Slide 19: FB Profitability

    FB Profitability Quarterly Net Income (in NT$ mn ) Net Income 3,185 3,306 2,701 3,064 3,644 2,617 3,530 3,418 2,074 (57) 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Annualized ROAE ( % ) Cumulative Net Income Annualized ROAE 14.28% 15.37% 15.37%% 13.32% 13.60% 13.37% 12.33% 12.23% 12.23% 10.01

  20. Slide 20: FB 2008 Revenue

    FB 2008 Revenue 2008 Cumulative Net Revenue (in NT$ mn or %) % of Cumulative Net Revenue Item 2007 2008 Change NII 61.1% 74.4% +13.3% 32,579 Net Fee 19.2% 15.5% - 3.7% -9.3% Recovery 8.4% 7.7% - 0.7% 35,934 Gain on other fin. pr.1 4.9% -2.0% - 6.9% Others 1.3% 2.3% +1.0% Gain on LT stock invest.1 4.

  21. Slide 21: FB 2008 Loan Book Mix

    FB 2008 Loan Book Mix 2008 Loan Book1 (in NT$ bn or %) % of Loan Book1 Item 2007 2008 Change 1,150.3 Consumer 29.2% 28.1% - 1.1% +8.6% Mortgage 28.4% 27.4% - 1.0% 1,059.2 Other Consumer Loan 0.8% 0.7% - 0.1% Corporate Banking 70.8% 71.9% + 1.1% Commercial Loan 42.6% 40.3% - 2.3% F/X Loan 17.4% 18.5%

  22. Slide 22: Major Exposures to Specific Industries

    Major Exposures to Specific Industries % of Loan to industries Total Domestic Loan Bal.1: 1,033,229 mn Manufacturing Real Estate 28.27% Tech. 7.72% 2.86% Tech. Petro-chemical 7.72% TFT-LCD DRAM 5.91% 2.19% 1.45% Petro-chemical 5.91% Construction 2.13% 1. OBU and overseas balance excluded 22

  23. Slide 23: FB 2008 Total Loan & NIM

    FB 2008 Total Loan & NIM Total Loan & LDR (in NT$ bn or % ) 84.68% 84.54% Total Loan1 83.89% LDR2 82.34% 82.35% 83.81% 80.73% 77.85% 78.25% 78.94% 1,170.0 980.1 992.4 1,030.5 1,042.3 1,079.9 1,147.4 940.2 1,060.0 1,092.4 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Quarterly NII / Spread / NIM

  24. Slide 24: FB 2008 Net Fee Income Breakdown

    FB 2008 Net Fee Income Breakdown 2008 Cumulative Net Fee Income (in NT$ mn or %) % of Cumulative Net Fee Item 2007 2008 Change WM1 65.2% 46.6% - 18.6% 5,041 6,884 F/X 14.0% 21.0% +7.0% -26.8% Other 10.9.% 15.8% +4.9% Loan-related 6.8% 11.7% +4.9% Credit card 3.1% 4.9% +1.8% 2007 2008 Net Fee Income

  25. Slide 25: FB 2008 Cost-to-Income Ratio

    FB 2008 Cost-to-Income Ratio 1H08 Operating Expense (in NT$ mn ) 2008 Cumulative Operating Expense (in NT$ mn ) % of Cumulative Cost-to-Income Ratio 14,439 Item 2007 2008 Change Net Revenue 100.0% 100.0% +1.68% 14,200 Operating Expense - 39.5% - 44.3% +4.8% Provision - 16.9% - 21.9% +5.0% Income Tax

  26. Slide 26: CAR & Credit Rating

    FFHC CAR & Credit Rating 1 CAR & Credit Rating FFHC Group CAR & Credit Rating1 S & P: BBB- / A-3/ Stable Twn Ratings: twA+/twA-1/Stable Moody’s: Baa1 122.05% 119.35% 117.59% CAR 113.77% 120.19% 109.54% 107.81% 103.60% statutory ratio 100% 1H 05 2H 05 1H 06 2H 06 1H 07 2H 07 1H 08 2H08 FB CAR & Credi

  27. Slide 27: Company Overview

    Company Overview

  28. Slide 28: Overview of First Financial Holding

    Overview of First Financial Holding First Commercial Bank (“FCB”) was founded in 1899 First Financial Holding formed in January 2003 with First Bank as its flagship entity. „ Loan mkt shares 6.2% all in NT$ mn „ Deposit mkt shares 6.2% „ FFHC asset size Top 5 „ SME Top 2 Net Revenue NT$44,637 „ Mort

  29. Slide 29: FB Customer Reach

    FB Customer Reach North America: Northern region: 97 New York, LA, Vancouver, Toronto Taipei North-Western region: 9 Hsin Chu Europe: London Central region: 19 Pan-Asia & Others: Taichung HK, Tokyo, Singapore, Ho Chi Minh, Phnom Penh, Guam, Palau, El Salvador, Bangkok, Hanoi, Shanghai, Tainan Southe

  30. Slide 30: Top Management

    Top Management FFHC Chairman and President Chairman President Yu-Chang Chen Ming-Ren Chien •Chairman, First Financial Asset •Chairman, Taipei Smart Card Corp. Mgmt. •Deputy Mayor, Taipei City •Secretary General, Taipei City Gov. •President, FCB Leasing •Commissioner, Securities & • EVP, FCB Futures

  31. Slide 31: Peer Comparison

    Peer Comparison ROAE (%) 18 金 13 2007 Chinatrust 金 金 & EPS FFHC ROAE 08: 12.43%;2007 1.51 2007 8 Fubon HuaNan 07: 12.05%, 2.04 08: 7.0%; 1.4 08: 10.02%; 1.49 08: 6.86%, 1.2 FFHC 08: 6.86%; 1.2 3 2008 average ROAE: 6.13% Cathay 1.2%; 0.23 2008 average EPS: 0.93% -3 Mega 0.16%; 0.02 -8 -13 0 1 2 3 4 E

  32. Slide 32: Appendix

    Appendix

  33. Slide 33: FFHC consolidated Income Statement

    FFHC consolidated Income Statement FFHC Consolidated Income Statement Summary in NT$ million, NT$, or % Full Year Results 2008 Quarterly Year-over-Year Comparison 2007 Q1 Q2 Q3 Q4 2007 2008 Change Interest income 49,354 12,728 12,222 12,680 12,450 49,354 50,080 1.47% Less: Interest expenses (26,963)

  34. Slide 34: FFHC Non-consolidated Income Statement

    FFHC Non-consolidated Income Statement FFHC Non-consolidated Income Statement Summary in NT$ million, NT$, or % Full Year Results 2008 Quarterly Year- over-Year Comparison 2004 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Operating revenues Income from long-term investment 10,466 9,209 10,904 12,873

  35. Slide 35: FFHC Balance Sheet

    FFHC Balance Sheet FFHC Balance Sheet Summary in NT$ million or million shares Full Year Results 2008 Quarterly Year- over-Year Comparison 2004 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Non-consolidated Balance Sheet Data Long-term investment 77,920 87,542 98,224 103,420 107,596 103,010 103,166 10

  36. Slide 36: FFHC Key Ratios

    FFHC Key Ratios FFHC Key Ratios Full Year Results 2008 Quarterly Year- over-Year Comparison 2004 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change After-tax ROAA (Annualized ratio) 0.69% 0.93% 0.68% 0.79% 0.83% 0.73% 0.63% 0.41% 0.76% 0.41% -46.1% After-tax ROAE (Annualized ratio) 14.06% 16.73% 11.08% 12.

  37. Slide 37: FB Income Statement

    FB Income Statement FB Income Statement Summary in NT$ million or % Full Year Results 2008 Quarterly Year-over-Year Comparison 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Net revenue Net interest income 20,381 21,941 6,002 5,921 6,047 6,265 21,941 24,235 10.45% Net fee income 4,495 6,884 1,288 1,560 1,27

  38. Slide 38: FB Balance Sheet

    FB Balance Sheet FB Balance Sheet Summary in NT$ million or % Full Year Results 2008 Quarterly Year-over-Year Comparison 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Assets Cash/due from banks 178,988 165,117 169,775 169,313 199,407 181,528 165,117 181,528 9.94% Fin. Assets measured 42,795 37,202 37,856 3

  39. Slide 39: FB Key Ratios

    FB Key Ratios FB Key Ratios Full Year Results 2008 Quarterly Year-over-Year Comparison 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Loan to deposit spread 2.22% 2.04% 1.98% 2.02% 1.96% 1.92% 1.91% 1.98% 1.91% -0.07% Net Interest Margin 1.51% 1.51% 1.50% 1.61% 1.59% 1.56% 1.55% 1.50% 1.55% 0.05% 1 Cos

  40. Slide 40: FB Loan Quality

    FB Loan Quality FB NPL Migration in NT$ million or % Full Year Results 2008 Quarterly Year-over-Year Comparison 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change NPL- beginning 18,597 15,482 15,406 16,234 15,761 15,293 15,645 15,406 16,234 5.37% Net new NPL influx 769 3,557 5,738 446 415 1,297 4,262 5,738

  41. Slide 41: First Sec Operating Report

    First Sec Operating Report First Sec Financial Results Summary in NT$ million or % Full Year Results 2008 Quarterly Year-over-Year Comparison 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change First Sec Income Statement Summary Total operating income Brokerage commission 758 943 1,255 235 248 181 118 1,255

  42. Slide 42: FSITC Operating Report

    FSITC Operating Report FSITC Income Statement Summary in NT$ million or % Full Year Results 2008 Quarterly Year-over-Year Comparison 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Total operating income Management fee 522 553 600 136 130 104 74 600 444 -26.00% Sales service fee 6 9 13 1 1 1 1 13 4 -69.

  43. Slide 43: First–Aviva Operating Report

    First –Aviva Operating Report First-Aviva Financial Results Summary in NT$ million or % 2008 Quarterly 2008 Q1 Q2 Q3 Q4 Total Income Statement Summary Operating Revenue 908 3,596 4,368 2,441 11,313 Premium income 935 3,554 4,374 2,283 11,146 Other insurance income 0 28 (4) 146 170 Net Investment Inc

First Financial Holding — Non-Deal Roadshow (April 2009) on 6ix