Entie Commercial Bank · TWSE:2849
Entie Commercial Bank — FY2015 Earnings Presentation
23 slides from Entie Commercial Bank's earnings presentation, Mar 10, 2016
Slide 1: Strengthening our Core Business
Confidential Presentation to Strengthening our Core Business FY2015 Investor Conference Jesse Ding, Chairman March 10, 2016
Slide 2: Notice
Notice Certain information contained herein constitutes “forward-looking statements”, which can be identified by the use of forward- looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “estimate”, “intend”, “continue”, or “believe” or variations thereon or compara
Slide 3: Agenda
Agenda Introduction of EnTie Bank Financial Performance 2016 Outlook Appendix - Share Price Performance 3
Slide 4: New President and CEO
New President and CEO (1) High structured succession planning and talent development program Claudie Yu, 6 years of experiences in EnTie 2014 to date Head of Retail Banking, EnTie Commercial Bank 2009 - 2013 Head of Wealth Management Banking, EnTie Commercial Bank 2008 - 2009 Chief Operating Officer
Slide 5: Introduction of EnTie Bank
INTRODUCTION OF ENTIE BANK 5
Slide 6: Snapshot of EnTie
Snapshot of EnTie Introduction to EnTie Bank Company overview Selected Key Metrics / Ratios (NT$ million) 2014 2015 EnTie is one of the 16 “ new” private banks Income Statement Items established in the wave of liberalization of Taiwan’s banking industry in early 1990’s Net Interest Income 4,138.82
Slide 7: A Rare, High Quality Franchise
A Rare, High Quality Franchise Introduction to EnTie Bank Sector Leading Profitability Profile… …Driven by Fee Income Franchise Pre-tax ROAE Pre-tax ROAA Fee Income Ratio Fee Income (L5Y Avg.) (%) (1) (L5Y Avg.) (%) (1) (L5Y Avg.) (%) (3) Ratio Development (%) (3) 16.47 33.71 1.17 35.36 25.68 33.36
Slide 8: Business Segments
Business Segments Introduction to EnTie Bank Diversified financial services platform Corporate Banking Retail Banking And Markets (31.3% of 2015 Operating Income) (68.7% of 2015 Operating Income) Corporate Banking Financial Markets Consumer Finance Wealth Management (50.2% of 2015 (18.5% of 2015 (15
Slide 9: Financial Performance
FINANCIAL PERFORMANCE 9
Slide 10: 2015 Strategies
2015 Strategies Financial Performance We continued to focus on core earnings growth in FY2015 by strengthening asset-liability management and emphasizing yield-enhancing asset expansion in a prudent risk-calculated way Optimized funding structure by increasing demand deposits and re-balancing corp
Slide 11: 2015 Performance Summary
2015 Performance Summary Financial Performance Stable top-line growth achieved in 2015 despite the uncertain macroeconomic environment: EnTie reported a PPOP of NT$4,529MM for 2015, a YoY growth of 15.36% vs. 2014 Through precise market segmentation and improved asset-liability management, EnTie
Slide 12: Growing Fee Income
Growing Fee Income Financial Performance EnTie transformed from being a funding source for customers to a financial service and solution provider NT$4.7bn Net Interest Income Net Fee Income NT$ 2.2bn 68% | 4.7 2015 2.2 | 32% 65% | 4.5 2014 2.5 | 35% 67% | 4.6 2013 2.3 | 33% 65% | 4.1 2012 2.1 | 35%
Slide 13: NIM Expansion
NIM Expansion Financial Performance NIM and spread expansion reflects precise market segmentation and improved asset-liability management Net Interest Income and Margin Spread 7 Net Interest Income(NT$bn) 1.80% Loan-Deposit Spread Net Interest Margin Net Interest Spread 2.21% 1.54% 1.60% 6 1.44% 2.0
Slide 14: Loan Composition
Loan Composition Financial Performance Optimized risk and return in pursuit of a balanced portfolio Corporate Loans : 53% Retail Loans : 47% NT$96.4bn NT$86.6bn 34.1 31.3 16.2 43.4 26.4 10.6 1.3 0.2 0.2 3.6 1.3 0.7 1.6 1.3 21.7 1.2 2.2 20.1 2.8 2.7 2.0 6.2 8.2 22.6 15.9 21.4 7.7 5.9 7.2 21.9 19.3 24
Slide 15: Stable Customer Deposits Base
Stable Customer Deposits Base Deposit balance has been carefully managed to increase core deposit and to achieve higher LDR Deposit Balance Split Gross Loans / Deposits % % 73.8 73.6 46% 47% 52% 53% 56% 67.6 68.0 65.7 54% 53% 48% 47% 44% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Corporate Re
Slide 16: Revenue Growth and Cost Discipline
Revenue Growth and Cost Discipline Financial Performance Superb return comes from growth in revenue and strict cost disciplines Unit : NT$bn 54% 2010 2015 4.9 54% 342 323 29% 3.2 3.7 197.7 183.0 2.4 2.2 1.7 Total Assets Loans Net Fee Income PPOP Net Income Cost / Income ratio ROAA ROAE 12.64% 43.36%
Slide 17: High Quality Capitalization
High Quality Capitalization Financial Performance Strong and high quality capitalization underlies long term business development Capital Adequacy Ratio 13.22% CAR Ratio 10.71% 11.71% 10.95% 14.40% 14.27% 12.83% 12.12% 12.51% 13.22% 0.80% 4.51% 4.41% 1.54% 0.53% 2.97% 2.28% 1.01% Tier II Ratio 4.64%
Slide 18: Investment Portfolio
Investment Portfolio Financial Performance Conservative and transparent securities investment all marked to market Investment Portfolio Stock 0% Securities NT$ mm Governm ent bonds 15% CBC CDs Government bonds 16,321 Corporate 34% bonds Corporate bonds 20,702 19% Commerc Overseas Due from ial papers
Slide 19: NPL Ratio and Coverage
NPL Ratio and Coverage Financial Performance NPLs increased, but the well-planned drawdown conditions and collateral arrangement ensured future recovery NPLs and Ratios LLR and Coverage LLR (NT$ million) NPLs (NT$ million) 6,000 Coverage Ratio (%) NPL Ratio (%) 323.45% 211.99% 5,000 101.31% 103.45%
Slide 20: Superior Profitability
Superior Profitability Financial Performance Continual growth in 2015 resulted in a net income of NT$3.7bn and basic EPS of NT$1.96 Net Income(1) NT$3.7bn EPS NT$ 1.96 4.5 3.6 3.7 2.47 1.96 2.6 3.0 1.57 1.91 2.4 1.19 1.31 2007 2008 0.5 2007 2008 0.04 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011
Slide 21: 2016 Outlook
2016 OUTLOOK 21
Slide 22: 2016 Outlook
2016 Outlook 2016 Outlook Faced with the increasing downside risk of global economy, Central banks of Eurozone, Japan, and other countries had executed unconventional monetary policies including QE and NIRP, which yield no significant improvement to economic growth with diminishing interest income f
Slide 23: Appendix - Share Price Performance
Basic EPS Price to book 1. As of Mar. 9, 2016 30-day average Price to earnings 52-week average 52-week hight/low Market capitalization Book value per share Market price (Mar. 9, 2016) Common shares outstanding Source : Company financial statements, Taiwan Stock Exchange Trading Multiples NT$20.45/13