First Financial Holding Co. Ltd. · TWSE:2892
First Financial — Q3 2009 Earnings Presentation
44 slides from First Financial's earnings presentation, Nov 25, 2009
Slide 1: FFHC 3Q 2009 Performance Review
FFHC 3Q 2009 Performance Review Nov. 25, 2009
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
Slide 3: Contents
Contents - Financial Highlight - Operating Results - Other Issues – China Plan - Appendix 3
Slide 4: 3Q 2009 Financial Highlight
3Q 2009 Financial Highlight -reviewed
Slide 5: 3Q 2009 Financial Highlight
3Q 2009 Financial Highlight Net Income Trend (in NT$ mn) 14,175 12,485 10,662 7,077 8,152 4,495 -44% 2005 2006 2007 2008 9M08 9M09 Book Value Per Share EPS ROAE (in NT$) (in NT$) 16.24 0.72 5.93% 3Q08: 16.38 3Q08: 1.31 3Q08: 10.45% 5
Slide 6: 3Q 2009 Key Figures
3Q 2009 Key Figures 3Q09 Earnings Breakdown1 ( in NT$ mn) Key Figures ( in NT$ dollar, NT$ mn, mn shares or %) Insurance YoY % 3Q08 3Q09 NT$(69); -0.78% Others Net Income 8,152 4,4951 ª 44.8% Investment Trust NT$(182); -3.3% NT$117; 2.6% Total Assets 1,766,921 1,931,169 © 9.3% EPS 1.31 0.72 ª 45.0%
Slide 7: 3Q 2009 Net Income Overview
3Q 2009 Net Income Overview 3Q 2009 Consolidated Income & Loss (in NT$ mn) 20,528 (11,825) Bank (4,881) Insurance 1,075 (3,806) (402) 4,495 Net Revenue Operating Provision Income Tax Net Income Expenses 3Q 2008 Consolidated Income & Loss (in NT$ mn) Bank (3,296) Insurance (8,151) 35,711 (2,866) 8,15
Slide 8: Profitability-After Tax
Profitability-After Tax 3Q 2009 FFHC & Major Subsidiaries FFHC Net Income (in NT$ mn ) FB Net Income (in NT$ mn) Total Asset: 1,931,169 Total Equity: 103,419 Total Asset: 1,897,045 Total Equity: 91,823 ROAE1 5.85% ROAE1 5.93% -55.8% -44.8% 8,152 9,022 4,495 3,989 3Q08 3Q09 3Q08 3Q09 1. Annualized RO
Slide 9: Profitability-After Tax
Profitability-After Tax 3Q2009 FFHC & Major Subsidiaries First Sec Net (in NT$ mn ) First Securities Net (in NT$ mn ) FSITC Net (in NT$ mn ) First-Aviva2 Net (in NT$ mn ) Brokerage Mkt Share:1.75% AUM: 105,790 Total Asset: 12,388 Total Equity: 6,910 AUM Ranking: 6 1 ROAE (6.33%) 1 ROAE 12.95 % 1 ROA
Slide 10: 3Q 2009 Operating Results
3Q 2009 Operating Results -reviewed
Slide 11: FFHC Profitability-After Tax
FFHC Profitability-After Tax Quarterly Net Income (in NT$ mn) Net Income 4,418 2,955 3,426 2,689 2,494 2,618 2,036 1,597 (1,074) 1,346 1,552 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q09 Annualized ROAE ( % ) Cumulative Net Income Annualized ROAE 11.53% 12.83% 12.05% 12.68% 12.34%
Slide 12: FB Profitability-After Tax
FB Profitability-After Tax Quarterly Net Income (in NT$ mn ) Net Income 3,614 3,530 3,418 3,064 2,701 2,617 2,074 1,615 1,040 1,334 (57) 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 Annualized ROAE ( % ) Cumulative Net Income Annualized ROAE 15.37% 15.90% 15.37% 12.23% 13.39% 12
Slide 13: FB 3Q 2009 Revenue
FB 3Q 2009 Revenue 3Q 2009 Cumulative Net Revenue (in NT$ mn or %) % of Cumulative Net Revenue Item 3Q08 3Q09 Change NII 68.6% 63.0% -5.6% 19,170 Net Fee 15.7% 14.8% - 0.9% -26.8% Recovery 6.3% 8.3% +2.0% 26,195 Gain on other fin. pr.1 3.4% 9.2% +5.8% Others 3.4% 1.5% -1.9% Gain on LT stock invest.1
Slide 14: FB 3Q 2009 Loan Book Mix
FB 3Q 2009 Loan Book Mix 3Q 2009 Loan Book1 (in NT$ bn or %) % of Loan Book1 Item 3Q08 3Q09 Change 1,126.3 Consumer 28.1% 28.9% + 0.8% Mortgage 27.4% 28.3% + 0.9% -0.4% 1,131.1 Other Consumer Loan 0.7% 0.6% - 0.1% Corporate Banking 71.9% 71.1% - 0.8% Commercial Loan 40.7% 40.7% +0.0% F/X Loan 20.0%
Slide 15: FB Loan Breakdown
FB Loan Breakdown -QoQ Comparison FB Total Loan (in NT$ bn) QoQ + 2.9% 1128.1 1150.3 1095.2 1094.2 1126.3 324.5 331.8 SME 305.0 340.3 341.5 F/X loan 222.8 212.0 173.3 189.3 185.8 Gov/SOE 126.3 147.7 137.6 157.1 149.2 310.1 311.2 314.9 318.9 Mortgage 313.2 Commercial 460.6 467.7 456.3 446.1 458.3 Loa
Slide 16: Major Exposures to Specific Industries
Major Exposures to Specific Industries -QoQ comparison End of 3Q 2009* - % of Loan to industries Total Domestic Loan Bal.1: NT$1,047.7 bn 4.67%, QoQ Wholesale & Retail Tech. Manufacturing 9.11% 27.81% ( 0.27%) 0.19% TFT-LCD DRAM 2.14% 1.36% Tech. Petro-chemical ( 0.14%) ( 0.09%) Real Estate 7.97% (
Slide 17: FB 3Q09 Asset Quality
FB 3Q09 Asset Quality NPL Amount, Reserve, Coverage (in NT$ mn or % ) Coverage Ratio NPL Ratio NPL NPL Reserve 1.55% 1.64% 1.55% 1.56% 1.50% 1.49% 1.40% 1.36% 1.45% 1.53% 58.36% 55.92% 52.82% 53.84% 54.18% 54.67% 55.36% 54.47% 54.87% 51.38% 15,956 17,080 16,234 15,761 16,916 17,665 17,380 17,450 15,
Slide 18: FB NPL Migration By Sectors
FB NPL Migration By Sectors NPL by Sectors (in %) SME Large Corp. Individual Mortgage** 2.31% 2.22% 2.23% 2.12% 2.00% 2.00% 2.00% 1.82% 1.66% 1.66% 1.55% 1.60% 1.54% 1.59% 1.43% 1.52% 1.47% 1.42% 1.44% 1.50% 1.37% 1.43% 1.28% 1.26% 1.30% 1.38% 1.24% 1.25% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 **Mortgag
Slide 19: New NPL Influx Breakdown
New NPL Influx Breakdown 3Q 2009 Quarterly NPL (in NT$ mn Item 3Q08 3Q09 Items Domestic Overseas Quarter-begin. NPL Bal. 14,530 2,850 New NPL Influx 1,297 1,601 +)3Q09 - new NPL Influx 906 695 Total Loan 1,147,304 1,143,328 -)3Q09 - write-off -1,279 -252 Quarterly Ratio 0.11% 0.14% Quarter-end NPL B
Slide 20: FB 3Q 2009 Total Loan & NIM
FB 3Q 2009 Total Loan & NIM Total Loan & LDR (in NT$ bn or % ) Total Loan1 LDR2 83.89% 84.68% 84.54% 84.54% 80.74% 82.34% 82.35% 78.94% 78.19% 76.70% 73.65% 1,092.4 1,147.4 1,169.5 1,141.3 1,111.9 1,143.3 992.4 1,030.5 1,042.3 1,079.9 1,060.0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Qu
Slide 21: FB 3Q 2009 Interest Yields
FB 3Q 2009 Interest Yields FB NTD Interest Yields Overview ( in % ) Loan Rate (NTD) Deposit Rate (NTD) 3.06% 3.24% 3.35% 3.31% 3.35% 3.38% 3.00% 1.91% 1.80% 1.69% 1.63% 1.38% 1.43% 1.47% 1.24% 1.32% 1.24% 0.65% 0.84% 0.72% 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 FB FX Interest Yields Overv
Slide 22: FB 3Q 2009 NTD Deposit Mix
FB 3Q 2009 NTD Deposit Mix FB NTD Deposit Structure (in % ) Time Deposit Demand & other deposit fixed rate of time deposit 54.70% 57.1% 53.40% 56.0% 49.6% 49.3% 50.0% 49.3% 49.3% 53% 53% 51% 50% 49% 47% 50% 553% 53% 47% 47% 49% 50% 51% 53% 50% 47% 47% 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 FB
Slide 23: FB 3Q 2009 Fee Income Breakdown
FB 3Q 2009 Fee Income Breakdown 3Q 2009 Cumulative Net Fee Income (in NT$ mn or %) % of Cumulative Net Fee Item 3Q08 3Q09 Change WM1 49.8% 37.3% - 12.5% 2,835 4,119 F/X 20.4% 21.0% +0.6% -31.2% Other 15.1% 21.2% +6.1% Loan-related 10.3% 15.3% +5.0% Credit card 4.4% 5.2% +0.8% 3Q08 3Q09 Net Fee Incom
Slide 24: FB WM Sales Breakdown
FB WM Sales Breakdown -QoQ Comparison FB Wealth Management Sales Breakdown (in NT$ mn) Domestic Fund Overseas Fund Structured N./Others Quarterly 36,999 36,701 WM Sales 38,382 29,813 29,936 32,015 WM Sales 28,612 + 22.6% /QoQ 24,497 20,148 17,964 16,542 11,642 8,685 4,855 5,291 1,085 330 129 25 11 3
Slide 25: FB 3Q 2009 Overseas Profits
FB 3Q 2009 Overseas Profits 3Q09 Cumulative Overseas PTP ( in NT$ mn) % of Cumulative Overseas PTP Item 3Q 08 3Q 09 1,761 -26.8% 2,407 Overseas PTP 20.3% 42.7% Domestic PTP 79.7% 57.3% 3Q 08 3Q 09 Total pre-tax profit 100.0% 100.0% Overseas PTP Quarterly Overseas & Total PTP (in NT$ mn or %) Oversea
Slide 26: FB 3Q 2009 Cost-to-Income Ratio
FB 3Q 2009 Cost-to-Income Ratio 3Q08 Operating Expense (in NT$ mn ) 3Q 2009 Cumulative Operating Expense (in NT$ mn ) % of Cumulative Cost-to-Income Ratio Item 3Q08 3Q09 Change 10,160 Net Revenue 100.0% 100.0% 11,013 -7.8% Operating Expense - 42.0% - 53.0% +11.0% Provision -12.6% - 25.5% +12.9% Inco
Slide 27: CAR & Credit Rating
CAR & Credit Rating FFHC Group CAR & Credit Rating1 Fitch: BBB+ / F2/ Stable 122.05% CAR 117.59% 119.35% 120.19% 123.71% 121.27% 107.81% 109.54% 103.60% statutory CAR 100% 2H 05 1H 06 2H 06 1H 07 2H 07 1H 08 2H08 1H09 3Q09* FB CAR & Credit Rating S & P: BBB+ / A-2/ Stable / C+ Twn Ratings: twAA-/twA
Slide 28: Other Issues - China Plan
Other Issues -China Plan
Slide 29: FB Greater China Business
FB Greater China Business 3Q09 Cumulative GC PTP ( in NT$ mn) % of Cumulative GC to Overseas PTP Item 3Q09 1,401 -41.2% Greater China PTP * 79.5% 2,384 Other overseas PTP 20.5% Cumulative overseas 100.0% 3Q08 3Q09 PTP Greater China PTP * Greater China includes OBU(86.8%), HK(6.7%), Vietnam(6.5%) Qua
Slide 30: Post-MOU China Strategy
Post-MOU China Strategy ¾FB Branch First Æ Subsidiary Follows. ¾Pilot run in Shanghai and spread over coastal and inland provinces. ¾Focus on TWN corp. clients and communities before further penetrating into local mkts. Beijing Tianjin Shanghai Branch Wuhan Chongqing Xiamen Dongguan Guangzhou * Colo
Slide 31: Appendix
Appendix
Slide 32: FFHC consolidated Income Statement
FFHC consolidated Income Statement FF HC Co n so lid ated In com e Stat em en t Su mm ary in NT $ m illion , NT$, o r % Fu ll Year Results 2009 Quarterly Year-o ver-Year Co mparison 2005 2006 2007 2008 Q1 Q2 Q3 3Q08 3Q09 Ch ang e In terest in co me 37,979 43,428 49,354 50,080 8,385 6,993 6,686 37,63
Slide 33: FFHC Non-consolidated Income Statement
FFHC Non-consolidated Income Statement FFHC Non-consolidated Income Statement Summary in NT$ million, NT$, or % Full Year Results 2009 Quarterly Year-over-Year Comparison 2005 2006 2007 2008 Q1 Q2 Q3 3Q08 3Q09 Change Operating revenues Income from long-term investment 9,209 10,904 12,873 8,513 1,774
Slide 34: FFHC Balance Sheet
FFHC Balance Sheet FFHC Balance Sheet Summary in NT$ million or million shares Full Year Results 2009 Quarterly Year-over-Year Comparison 2005 2006 2007 2008 Q1 Q2 Q3 3Q08 3Q09 Change Non-consolidated Balance Sheet Data Long-term investment 87,542 98,224 99,502 97,985 100,184 99,988 101,113 99,248 1
Slide 35: FFHC Key Ratios
FFHC Key Ratios FFHC Key Ratios Full Year Results 2009 Quarterly Year-over-Year Comparison 2005 2006 2007 2008 3M 6M 9M 9M08 9M09 Change After-tax ROAA (Annualized ratio) 0.93% 0.68% 0.76% 0.41% 0.36% 0.32% 0.32% 0.64% 0.32% -50.0% After-tax ROAE (Annualized ratio) 16.73% 11.08% 12.05% 6.86% 6.36% 5
Slide 36: FB Income Statement
FB Income Statement FB Income Statement Summary in NT$ million or % Full Year Results 2009 Quarterly Year-over-Year Comparison 2005 2006 2007 2008 Q1 Q2 Q3 3Q08 3Q09 Change Net revenue Net interest income 19,612 20,381 21,941 24,235 4,445 3,796 3,827 17,970 12,068 -32.8% Net fee income 3,759 4,495 6
Slide 37: FB Balance Sheet
FB Balance Sheet FB Balance Sheet Summary in NT$ million or % Full Year Results 2009 Quarterly Year-over-Year Comparison 2005 2006 2007 2008 Q1 Q2 Q3 3Q08 3Q09 Change Assets Cash/due from banks 157,635 178,988 165,118 179,084 213,400 201,088 191,531 199,407 191,531 -3.9% Fin. Assets meas ured 37,418
Slide 38: FB Key Ratios
FB Key Ratios FB Key Ratios Full Year Results 2009 Quarterly Year-over-Year Comparison 2005 2006 2007 2008 3M 6M 9M 3Q08 3Q09 Change Loan to deposit spread 2.22% 2.04% 1.98% 1.91% 1.32% 1.25% 1.22% 1.92% 1.22% -0.70% Net Interes t Margin 1.51% 1.51% 1.50% 1.55% 1.09% 0.98% 0.94% 1.56% 0.94% -0.62% 1
Slide 39: FB Loan Quality
FB Loan Quality FB NPL Migration in NT$ million or % Full Year Results 2009 Quarterly Year-over-Year Comparison 2005 2006 2007 2008 Q1 Q2 Q3 3Q08 3Q09 Change NPL- beginning 18,597 15,482 15,406 16,234 16,916 17,665 17,380 16,234 16,916 4.2% Net new NPL influx 769 3,557 5,738 6,420 2,199 942 1,601 2,
Slide 40: FB NPL Migration by Sectors
FB NPL Migration by Sectors 3Q08 4Q08 1Q09 2Q09 3Q09 Individual1 1.44% 1.47% 1.59% 1.50% 1.37% Mortgage 1.26% 1.30% 1.43% 1.38% 1.25% Large Corp. 1.60% 1.54% 1.66% 1.55% 1.43% SME 2.00% 2.00% 2.31% 2.22% 2.23% Domestic 1.47% 1.43% 1.58% 1.51% 1.42% Overseas 0.75% 1.53% 1.36% 1.87% 2.28% Total 1.36%
Slide 41: FB Real Estate Summary
FB Real Estate Summary FB Real Estate Summary in NT$ million 30-Sep-09 1998 Cost Appraisal Total Book Value Increments For Operation Land and Improvements 7,260 9,167 16,427 16,423 Buildings 8,886 57 8,943 5,232 For Non-Operation Land and Buildings & Others 1,648 6,228 7,876 7,389 17,794 15,452 33,2
Slide 42: First Sec. Operating Report
First Sec. Operating Report First Sec Financial Results Summary in NT$ million or % Full Year Results 2009 Quarterly Year-over-Year Comparison 2005 2006 2007 2008 Q1 Q2 Q3 3Q08 3Q09 Change First Sec Income Statement Summary Total operating income Brokerage commis sion 758 943 1,294 731 144 300 265 6
Slide 43: FSITC Operating Report
FSITC Operating Report FSITC Income Statement Summary in NT$ million or % Full Year Results 2009 Quarterly Year-over-Year Comparison 2005 2006 2007 2008 Q1 Q2 Q3 3Q08 3Q09 Change Total operating income Management fee 522 553 600 444 84 104 301 370 301 -18.6% Sales service fee 6 9 13 4 0 1 1 3 1 -66.
Slide 44: First-Aviva Operating Report
First –Aviva Operating Report First-Aviva Financial Results Summary in NT$ million or % Full Year Result 2009 Quarterly Year-over-Year Comparison 2008 Q1 Q2 Q3 3Q08 3Q09 Change Income Statement Summary Operating Revenue 11,650 520 250 432 8,872 1,202 -86.5% Premium income 11,607 446 107 279 8,863 83
First Financial Holding — Q3 2009 Earnings Presentation on 6ix