Far Eastern International Bank · TWSE:2845
Far Eastern International Bank — Q4 2023 Earnings Presentation
24 slides from Far Eastern International Bank's earnings presentation, Mar 8, 2024
Slide 1: Investor Conference 4Q'2023
Investor Conference 4Q’2023 3/8’2024
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$3,236.78 Bn. (4Q’23) Petrochemical & energy Polyester & synthetic fiber Cement & building material Retail & department store Financial services – 11 companies in o
Slide 3: Contents
Contents 2023 2023Financial FinancialHighlights Highlights 2023 2024Financial Highlights Key Strategies 3
Slide 4: Highlights
Highlights Profitability historic high IBT, of consecutive 2 years of double-digit YOY growth Risk Management Historic low NPL %, and below industry average Tightening overseas exposure, by countries and sectors Capital Strength Historic high CET 1% and BIS %, and better than industry averag
Slide 5: Assets & Net Worth
Assets & Net Worth Assets Net Worth (NT$Bn) (NT$Bn) YoY YoY YoY YoY +7.0% 2.4% +7.1% +10.6% 793 741 59 723 37 55 36 33 48 51 44 50 16 18 240 225 14 228 41 41 438 468 36 407 -2 -0.2 YE'21 YE'22 YE'23 YE'21 YE'22 YE'23 Loans Investment Cash & Deposit AR & Others Capital + Capital Surplus
Slide 6: Loans & Deposits
Loans & Deposits Gross Loans Deposits (NT$Bn) (NT$Bn) YoY YoY YoY YoY +6.7% +8.8% +7.6% -0.8% 661 444 474 612 607 413 13% 13% 14% 23% 22% 21% 11% 9% 7% 33% 31% 34% 36% 36% 35% 12% 11% 12% 14% 13% 11% 43% 42% 43% 20% 20% 24% YE'21 YE'22 YE'23 YE'21 YE'22 YE'23 Local corp. Local SME Overseas
Slide 7: Liquidity
Liquidity Gross loan-to-deposit ratio Liquidity coverage ratio By year-end balance By averaged balance 7 Source: Consolidated number / FEIB website / Management Report
Slide 8: Asset Quality
Asset Quality NPL Ratio NPL Coverage Ratio Loan Coverage Ratio 0.36% 1192% 1.39% 0.27% 907% 1.38% 773% 1.35% 969% 0.14% 1.36% 0.18% 0.15% 496% 1.32% 0.11% 392% 1.29% YE'21 YE'22 YE'23 YE'21 YE'22 YE'23 YE'21 YE'22 YE'23 Industry FEIB 8 Source: FSC report Industry: 37 Commercial Banks (excl
Slide 9: Revenue & Profit Before Provision
Revenue & Profit Before Provision Revenue PPOP (NT$Bn) (NT$Bn) YoY YoY YoY +9% +8.8% YoY +10.8% 12.8 +15.0% 11.7 5.2 0.6 10.8 4.7 0.4 0.1 1.8 3.1 +70.6% 4.1 1.1 3.2 2.5 +4.7% 2.6 6.4 7.0 6.5 (7.6%) 2021 2022 2023 2021 2022 2023 NII Fee Trading Other 9 Source: :Consolidated number
Slide 10: Interest Margin & Fee Income
Interest Margin & Fee Income Interest Margin Fee Income (NT$Bn) DDR 37.02% 34.18% YoY 33.12% YoY +4.7% 3.2 -20.1% 1.42% 1.37% 2.6 L-D Spread 1.29% 0.7 2.5 0.6 (7.9%) 0.7 2.5 12.2% 12.2% 11.43% 1.8 2.0 +9.5% 2021 2022 2023 2021 2022 2023 Oversea lending % Retail Banking Corp. Banking 10 Sou
Slide 11: Trading Income
Trading Income Trading Income (NT$Mil.) +201 -192 + 842 +131 +291 3,076 1,803 2022 Stocks Bonds Credit Deriviates SPOT FX 2023 Deriviates Other OCI – unrealized gain / loss of investment (NT$Mil.) 9 -1,559 +1,568 Jan 01'23 Other OCI YE'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 +12.3% YoY +26.9% 4.7 YoY -0.7% 4.2 -33.1% 3.3 Net Net 0.8 0.5 Net 1.2 0.5 0.9 1.0 0.4 0.4 0.5 2021 2022 2023 2021 2022 2023 Gross provision cost Recovery Net provision cost 12 Source: Consolidated number
Slide 13: Net Profitability
Net Profitability Pre-tax ROA Pre-tax ROE 0.71% 0.64% 9.24% 9.94% 0.59% 0.61% 8.08% 0.57% 8.27% 8.01% 0.47% 6.71% 2021 2022 2023 2021 2022 2023 Industry FEIB Source: Management Report / FSC report Industry: 37 Commercial Banks (excluding EX-IM Bk) 13
Slide 14: Capital Adequacy
Capital Adequacy CET1 (unconsolidated) BIS (unconsolidated) (%) (%) Industry FEIB Source: FSC report / Management report 14 Industry: 37 Commercial Banks (excluding EX-IM Bk)
Slide 15: Dividends
Dividends EPS & Dividend Cash dividend yield (NT$/Share) = Cash dividend / Avg. stock price of the year of earnings $1.03 $1.00 (EPS) $0.84 4.04% 4.35% 0.506 3.61% 0.16 0.00 0.43 0.506 0.41 2021 2022 2023 2021 2022 2023 Cash Stock Reserved earnings Source: Management Report / Consolidated
Slide 16: Contents
Contents 2023 2023Financial FinancialHighlights Highlights 2023 2024Financial Highlights Key Strategies 16
Slide 17: Steady Growth
Steady Growth Assets Gross Loans (NT$Bn) (NT$Bn) YoY +6% YoY +4% 474 503 444 2022 2023 2024 * Deposits YoY 824 (NT$Bn) +4% 793 741 661 688 607 2022 2023 2024* 2022 2023 2024 * 17 *2024 Budget
Slide 18: Sustainability- Business Strategy
Sustainability- Business Strategy Lending growth Coping with CET1% & BIS% targets Retail lending: mainly in mortgage, and steady growth in personal and B2B loans Corporate lending: overseas loans outgrowing local loans Overseas expansion HK Branch: to sustain Greater China business oppor
Slide 19: Sustainability- ESG Actions
Sustainability- ESG Actions Sustainable finance Integrity corporate culture Green lending Responsibility map ESG investment Board of directors structure Green building D.E.I workplace CO2 measurement & disclosure Social responsibility Greenhouse gas emission: inspection, disclo
Slide 20: Digital Innovation & Internet-only Bank
Digital Innovation Banking Digitalization & Internet-only Bank RPA: automation of New customers operating process New assets / Big data：target new deposit marketing New business AI implication model AML / Fraud Transactional detection banking Customer service Lending Risk manag
Slide 21: Contents 2023 Appendix
Contents 2023Appendix Financial Highlights 21
Slide 22: 2023 Appendix Financial Highlights
Contents (NT$ m, except percentages and per share data) As of or for 12 months ended December 31 (Consolidated) 2021 2022 2023 YoY Key balance sheet items Total assets 723,055 740,540 792,504 7.0% Net loans 407,442 437,897 467,728 6.8% Deposits and remittances 612,107 607,424 660,748 8.8% Total shar
Slide 23: THANK YOU
& PEC LiLes i Far Eastern Int'l Bank THANK YOU
Slide 24: 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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