O-bank Co. Ltd. · TWSE:2897
O-bank — 9M 2023 Earnings Presentation
44 slides from O-bank's earnings presentation, Nov 27, 2023
Slide 1: O-Bank 2023 9M Business Review
Security Code：2897.TW O-Bank 2023 9M Business Review 2023/11/27
Slide 2: Disclaimer
Disclaimer This document is provided by O-Bank Co., Ltd. (the "Company"). The Company makes no express or implied representations or warranties as to the accuracy, completeness, or correctness of such information or opinions. This document is provided as of the date herein and will not be updated to
Slide 3: Agenda
01 2023 9M Operation Highlights 02 2023 9M Financial Results Agenda 03 Key Strategic Focuses 04 Appendix 2
Slide 4: 2023 9M Operation Highlights
01 2023 9M Operation Highlights 3
Slide 5: 2023 9M Operation Highlights
01 2023 9M Operation Highlights Both Consolidated and Standalone Net Profits 1 Operating Performance After Tax Achieved Strong Growth NTD millions O-Bank 2023 9M 2022 9M Growth Rate Consolidated Net Revenues 7,507 6,980 8% Consolidated Net Profits After 2,950 2,386 24% Tax Standalone Net Revenues 5,
Slide 6: Standalone Net Profits Before Tax from Bank Only Grew 49% YoY
01 2023 9M Operation Highlights Standalone Net Profits Before Tax from Bank Only (excluding associated subsidiaries) 1 Operating Performance Grew 49% YoY NTD millions O-Bank 2023 9M 2022 9M Growth Rate Standalone Net Revenues (Excluding share of profit of associates subsidiaries and 4,656 3,675 27%
Slide 7: Major Subsidiaries Results
01 2023 9M Operation Highlights 1 Operating Performance Earnings Per Net Profits After Tax Share(EPS) (NT$ millions) Growth Major Subsidiaries Rate 2023 9M 2023 9M 2022 9M China Bills Finance NTD$ 0.81 1,089 926 18% EverTrust Bank USD$ 0.92 332 227 46% 6
Slide 8: Capital Adequacy, Asset Quality, Awards & Recognitions
01 2023 9M Operation Highlights Maintained a Stable Capital Adequacy & 2 Capital Adequacy & Asset Quality Asset Quality Significantly Improved ⚫ As of the end of September 2023, O-Bank’s BIS Ratio was 13.32%, Tier1 Capital Ratio was 11.80%, and CET1 Ratio was 11.61%. ⚫ As of the end of September 202
Slide 9: 2023 9M Financial Results
02 2023 9M Financial Results 02-3 Individual Financial Results: 02-1 Consolidated Financial Results China Bills Finance Corp. 02-2 Standalone Financial Results: 02-4 Individual Financial Results: O-Bank EverTrust Bank 8
Slide 10: O-Bank's Main Subsidiaries and Associated Companies
02 O-Bank’s Main Subsidiaries and Associated Companies ：O-Bank and its subsidiaries O-Bank Co., Ltd. ：Associated companies whose profits are recognized using equity method ：O-Bank and its main profit subsidiaries 100% 28.37% 100% 44.27% 20% IBT Holdings Venture Capital Business Infinite Beijing Suns
Slide 11: Consolidated Financial Results
02-1 Consolidated Financial Results 10
Slide 12: Consolidated Total Assets and Net Profit
02-1 Consolidated Financial Results Total Assets Net Profit NT $ million NT $ billion Total Assets Net Profit Total Assets to Parent Company Net Profit Attributable to Parent Bank Growth Rate 7.50% 5,808 2.62% -0.20% -0.06% 0.39% 621 5,034 YoY+23.64% 561 575 575 577 YoY+25.74% 3,200 2,950 2,386 388
Slide 13: Net Profit Compositions by Business Unit
02-1 Consolidated Financial Results Net Profit Compositions NT $ million 2023 9M (by Business Unit) (19) 2,950 332 137 56 140 1,089 1,216 O-Bank CBF IBT Holdings Venture Venture Capital Leasing Capital Infinite Finance*2 Sunshine Other Consolidated (holding *1 Business Consumer subsidiaries and Net
Slide 14: Consolidated Net Profit Compositions
02-1 Consolidated Financial Results Net Profit Compositions 2023 9M NT $ million 7,507 3,598 -3,516 2,950 -393 -648 Tax & Income(loss) from Net Revenue Operating Expense Provision Profit before Tax Taxoperations discontinued NetIncome Net Profit YoY +527 -29 +1 +556 -9 +564 +7.55% -0.83% +0.21% +18.
Slide 15: Net Revenue Breakdown
02-1 Consolidated Financial Results Net Revenue NT $ million Breakdown Others Gains on financial assets or liabilities measured at fair value / Foreign exchange gain(loss) Net Fee Income Net Interest Income 12,121 3,693 30.5% 9,315 YoY 725 7.8% 8,312 8,056 391 4.7% 7,507 +7.55% 460 5.7% 1,471 15.8%
Slide 16: Standalone Financial Results - O-Bank
02-2 Standalone Financial Results -O-Bank- 15
Slide 17: O-Bank Net Profit Grew 25.7% YoY
02-2 Standalone Financial Results: O-Bank Net Profit Grew 25.7% YoY Net Profit before Tax NT $ million Net Profit NT $ million One-off Gain Net Profit Share of profit of associates subsidiaries One-off Gain Net Profit before Tax from Bank Only 5,034 5,242 3,030 YoY YoY+25.74% 2,433 +27.42% 2,212 2,1
Slide 18: Standalone Net Profit Compositions
02-2 Standalone Financial Results: O-Bank Net Profit Compositions NT $ million (by Business Unit) 2023 9M (19) 2,143 137 56 140 305 1,216 309 O-Bank CBF IBT Holdings Venture VentureCapital Leasing Capital Infinite Finance*2 Sunshine Other Other Consolidates Standalone Net (holding Business Consumer
Slide 19: ROE & ROA Continued to Grow; NIM & Spread
02-2 Standalone Financial Results: O-Bank ROE & ROA Continued to Grow Compared to the Same Period Last Year ROE & ROA NIM & Spread ROE Spread ROE(excl. one-off gain) 13.59% NIM ROA ROA(excl. one-off gain) 1.71% 1.71% 1.71% 1.53% 1.45% 1.41% 7.41% 6.43% 0.99% 5.64% 0.95% 5.12% 0.78% 0.81% 0.79% 0.74%
Slide 20: Net Revenue Breakdown
02-2 Standalone Financial Results: O-Bank Net Revenue Gains from FVPL A/L and Fees from Distributing Breakdown Financial Products Also the Highest in Five Years One-off Gain NT $ million Others Share of profit of associates subsidiaries and accounted for using equity method Gains on financial assets
Slide 21: C/I Ratio Hit a Five-Year Low and EPS Up 27.6% YoY
02-2 Standalone Financial Results: O-Bank C/I Ratio Hit a Five-Year Low(below 50%) and EPS Up 27.6% YoY Cost/Income NT $ million EPS NT $ Ratio Operating Expense Operating Expense(excl. one-off exp.) Net Revenue Net Revenue(excl. one-off gain) Cost Income Ratio(excl. one-off gain) Cost Income Ratio
Slide 22: Loan & Deposit Balances and Deposit Breakdown
02-2 Standalone Financial Results: O-Bank Loan & Deposit Deposit Balances NT $ billion Breakdown NT $ billion Deposits Loans LDR FCY Time FCY Demand % of the total NTD Time NTD Demand deposits 299 70.40% 69.79% 279 67.57% 65.56% 66.81% 251 253 299 238 29% 34% 101 279 27% 19% 80 47 18% 251 253 66 42
Slide 23: Loan Breakdown
02-2 Standalone Financial Results: O-Bank Loan Breakdown Loan Breakdown NT $ billion by Industry Corporate Loans Personal Loans Mortgages 208 Personal Loan, 5.15% Mortgages, 7.02% 189 176 Construction 166 engineering, 2.21% 159 Others, 4.84% Manufacturing, 17.77% medical care, 1.03% corporate financ
Slide 24: Asset Quality Continued Improving
02-2 Standalone Financial Results: O-Bank Asset Quality Continued Improving NT $ million NT $ million Asset Quality Loan Loss Reserve/NPL Loan Loss Reserve NPL LLR Ratio(Loan Loss Reserve/Total Loans) NPL Ratio 0.75% 431.5% 439.6% 353.6% 309.7% 183.1% 0.42% 0.41% 0.35% 0.34% 1.53% 1.49% 1.44% 1.38%
Slide 25: Capital Structure: BIS Ratio
02-2 Standalone Financial Results: O-Bank Capital Structure BIS (Capital Adequacy Ratio) Tier I CET1 14.71% 14.49% 14.00% 13.63% 12.72% 13.32% 13.51% 12.02% 12.67% 11.46% 11.80% 12.09% 11.61% 11.72% 11.34% 2019 2020 2021 2022 9M23 Note: Data as of year end, 2019-2022. 24
Slide 26: BV Per Share Also the Highest in Five Years
02-2 Standalone Financial Results: O-Bank BV Per Share Also the Highest in Five Years Net Profit Book Value Per Share Net Profit: NT $ million EPS One-off Gain EPS/BVPS: NT $ EPS(excl. one-off gain) 13.03 12.26 12.45 12.02 11.75 1.80 11.30 5,034 0.74 0.63 0.58 0.69 0.45 0.41 1,841 2,004 1,704 2,143
Slide 27: Individual Financial Results - China Bills Finance Corp.
02-3 Individual Financial Results -China Bills Finance Corp.- 26
Slide 28: China Bills Finance: Net Profit and Net Revenue
Individual Financial Results: 02-3 China Bills Finance Corp. Net Profit Net Revenue NT $ million NT $ million Others Net Fee Income Net Interest Income 1,858 2,847 2,507 287 10.1% 1,578 194 7.7% 2,015 1,645 YoY+18.99% 176 1,301 YoY+17.66% 8.7% 45.7% 1,405 1,672 1,245 1,192 47.6% 1,089 1,168 480 983
Slide 29: China Bills Finance: Assets, ROE, ROA & EPS
Individual Financial Results: 02-3 China Bills Finance Corp. Assets ROE、ROA & EPS NT $ billion ROA ROE 7.28% Total Assets 6.40% 6.40% Outsanding Balances of Guarantee Growth Rate of Guarantee Balances 5.28% 5.23% 4.79% 4.64% 4.38% 10.50% 0.83% -1.00% 0.76% -9.21% 0.68% 229 0.63% 218 217 0.58% 0.48%
Slide 30: China Bills Finance: NPL, Reserve and CAR
Individual Financial Results: 02-3 China Bills Finance Corp. NPL & Reserve for CAR Guarantee Liabilities NT $ million Reserve for Guarantee Liabilities 資本適足率(CAR) CAR (Total Capital) NPL Ratio 第一類資本佔風險資產比率 Tier I Capital 1,375 1,382 1,382 1,382 1,325 13.36% 13.22% 12.80% 13.12% 12.70% 12.65% 12.91%
Slide 31: Individual Financial Results - EverTrust Bank
02-4 Individual Financial Results -EverTrust Bank 30
Slide 32: EverTrust Bank: Net Profit and Net Revenue
02-4 Individual Financial Results: EverTrust Bank Net Profit Net Revenue USD $ million USD $ million Net Revenue Net Interest Income Growth Rate of Net Revenue 4.58% 13.7 0.47% 1.60% 12.3 YoY+38.44% -8.35% 11.6 10.7 9.5 35.4 YoY+21.93% 32.5 32.6 33.1 7.7 27.9 34.2 32.4 29.9 30.3 22.9 27.2 22.7 2019
Slide 33: EverTrust Bank: Loans, Deposits, ROE, ROA & EPS
02-4 Individual Financial Results: EverTrust Bank Assets、 ROE、ROA & EPS Loans & Deposits USD $ million ROA ROE 7.47% Total Assets Loans 6.48% Deposits Growth Rate of Loans 5.96% 14.67% 5.47% 4.86% 4.90% 3.16% 3.37% -2.97% -16.65% 1.52% 1.65% 0.99% 1.20% 1.28% 1.13% 1,000 995 945 887 2019 2020 2021 2
Slide 34: EverTrust Bank: NPL Ratio & CAR
02-4 Individual Financial Results: EverTrust Bank NPL Ratio & CAR Coverage Ratio Coverage Ratio 12974% 9852% 30.47% 33.03% 5505% 29.03% 22.48% 51% 253% 19.61% 2019 2020 2021 2022 9M23 2.74% NPL Ratio 2019 2020 2021 2022 9M23 0.01% 0.01% 0.03% 0.60% 2019 2020 2021 2022 9M23 Note: Data as of year end,
Slide 35: Key Strategic Focuses
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Slide 36: "Boutique Digital Bank" Strategy
03 “Boutique Digital Bank” Strategy Enhance Digital Capacities to Support Continuing Business Better Integration of Products and Model Innovations Optimize Revenue Structure and Services to Expand Customer Base Maximize Return on Capital Deepen and Broaden Optimize Further Digital Product Capital Tr
Slide 37: "Boutique Digital Bank" Strategy
03 “Boutique Digital Bank” Strategy Deepen and Broaden Further Digital Optimize Product Engagement Transformation Capital Efficiency Better Integration of Products and Enhance Digital Capacities to Support Optimize Revenue Structure and Services to Expand Customer Base Continuing Business Model Inno
Slide 38: "Boutique Digital Bank" Strategy
03 “Boutique Digital Bank” Strategy Strengthen Fulfill Corporate Risk Management Sustainability Pursue Optimization O-Bank, “All for You” of Risk and Return ⚫ Proactively address climate change risk, conduct carbon emissions ⚫ Strengthen the control of corporate credit concentration of the Bank’s lo
Slide 39: Strategic Investment Portfolio Business Overview
03 Strategic Investment Portfolio Business Overview Beijing Sunshine (Investment under Equity Method) Beijing Sunshine • Deepen the B2B2C collaboration Consumer Finance model with various partner platforms to bolster the Infinite Finance consumer finance ecosystem and improve profitability. • Furthe
Slide 40: ALL FOR YOU
ALL FOR YOU - wuo-banicom
Slide 41: Appendix: Financial Summary of O-Bank and Its Main Subsidiaries
04 Appendix: Financial Summary of O-Bank and Its Main Subsidiaries 40
Slide 42: O-Bank Financial Summary
O-Bank-Financial Summary (NT $ million) 3Q23 2Q23 1Q23 4Q22 2022 2021 YoY 9M23 9M22 YoY Income Statement Interest income 3,081 2,619 2,321 2,044 5,812 3,471 67% 8,020 3,768 113% Interest expense (2,418) (2,045) (1,810) (1,398) (3,044) (1,261) 141% (6,274) (1,646) 281% Net interest income 662 574 511
Slide 43: CBF Financial Summary
CBF-Financial Summary (NT $ million) 3Q23 2Q23 1Q23 4Q22 2021 2021 YoY 9M23 9M22 YoY Income Statement Interest income 801 743 726 624 2,047 1,720 19% 2,271 1,422 60% Interest expense (751) (695) (640) (524) (1,207) (461) 162% (2,086) (684) 205% Net interest income 50 49 86 101 839 1,259 -33% 185 738
Slide 44: ETB Financial Summary
ETB-Financial Summary (USD $ thousand) 3Q23 2Q23 1Q23 4Q22 2022 2021 YoY 9M23 9M22 YoY Income Statement Interest income 13,399 12,529 11,674 11,177 35,491 34,271 4% 37,602 24,313 55% Interest expense (4,218) (3,559) (2,596) (1,467) (3,130) (3,970) -21% (10,373) (1,663) 524% Net interest income 9,181