Taichung Commercial Bank Co., Ltd. · TWSE:2812
Taichung Commercial Bank — H1 2020 Earnings Presentation
35 slides from Taichung Commercial Bank's earnings presentation, Aug 28, 2020
Slide 1: Taichung Commercial Bank 2020 Half Year Investor Conference
Stock No ; 2812 Taichung Commercial Bank 2020 Half Year Investor Conference 2020.8.28 nee <5 a . ~ FR... QAP senses wa—en > Oe
Slide 2: Disclaimer
Disclaimer ◆ This presentation is provided by Taichung Commercial Bank(TCB). Users should read this material in conjunction with all other public financial and operational information filed to the competent authorities by TCB. While we endeavor to provide accurate, complete and consistent informatio
Slide 3: Agenda
Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 3
Slide 4: 2019 Half Year Financial Highlight
2019 Half Year Financial Highlight Profitability • Net Profit after tax 1.8billions, declined by 12.58% over the same period last year. • EPS 0.47, declined by 12.96% over the same period last year. Asset quality • NPL ratio 0.44%、NPL coverage ratio 324.25%. Capital adequacy • Consolidated：Capital A
Slide 5: Agenda
Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 5
Slide 6: Profitability
Profitability Net Profit (NT$ Million) +7.78% 2,106 -12.58% 4,320 1,841 +10.32% 4,008 3,633 1H19 1H20 2017 2018 2019 EPS (NT$) 0.57 -12.96% 1.18 -1.69% +7.27% 1.16 0.47 1.10 1H19 1H20 2017 2018(Note) 2019 Note：The EPS of 2018 was adjusted retroactively as 1.12. The growth rate between 2018 6 and 201
Slide 7: Profitability
Profitability ROA 0.62% 0.64% 0.54% 0.60% 0.57% 1H19(Note) 1H20(Note) 2017 2018 2019 ROE 8.57% 8.79% 8.72% 8.68% 7.10% 1H19(Note) 1H20(Note) 2017 2018 2019 Note： ROE and ROA are annualized 7
Slide 8: Change in Net Profit
Change in Net Profit (NT$ Million) 1H19 1H20 1H19 1H20 YoY -9.88% YoY -3.25% YoY -61.15% YoY -11.35% 5,549 5,001 2,450 2,172 2,803 2,714 296 115 Total Net Operating Provision Profit before tax Revenue Expenses 8
Slide 9: Deposit Breakdown
Deposit Breakdown (NT$ Hundred Million) Total Deposit YoY 6.93% 6,159 QoQ 4.78% 5,760 5,762 5,849 5,878 Foreign 666 currency 566 583 558 578 deposits YoY 17.67% QoQ 15.22% Time & 2,807 saving 2,700 2,676 2,696 2,697 deposits (local currency) YoY 3.96% QoQ 4.08% Checking & demand 2,494 2,503 2,595 2,
Slide 10: Deposit Structure
Deposit Structure (%) Checking & demand deposits (local currency) Time & saving deposits(local currency) Foreign currency deposits 49.22% 46.09% 45.58% 44.37% 43.61% 41.80% 10.81% 8.98% 9.54% 4Q18 4Q19 2Q20
Slide 11: Loan Structure
Loan Structure (NT$ Hundred Million) Corporate Banking Consumer Banking 2,363 2,254 2,318 2,219 2,156 2,216 51.57% 48.43% 51.11% 48.89% 51.12% 48.88% 2018 2019 2020 2018 2019 1H20 HoH Corporate Banking 2,363 2,254 2,318 2.84% Consumer Banking 2,219 2,156 2,216 2.78% Total 4,582 4,410 4,534 2.81% 11
Slide 12: Consumer Banking-Consumption Loans
Consumer Banking-Consumption Loans (NT$ Hundred Million) Average Rate NPL Rate 4.48% 4.45% 4.09% 0.51% 0.48% 0.35% +7.50% 129 120 Local Bank 110 +10.84% 2018 2019 2020 Note：Consumption loans are excluding residential mortgage loans、loan of cash card、credit card and debit card. 12
Slide 13: Loan Structure by Currency
Loan Structure by Currency (NT$ Hundred Million) Foreign Currency Loan NTD Loan 4,199 4,031 4,155 91.64% 91.41% 91.64% 383 379 379 8.36% 8.59% 8.36% 2018 2019 2020 2018 2019 1H20 HoH NTD Loan 4,199 4,031 4,155 3.08% Foreign Currency Loan 383 379 379 - Total 4,582 4,410 4,534 2.81% 13
Slide 14: Loan Breakdown
Loan Breakdown (NT$ Hundred Million) Total Loan YoY 2.79% 4,407 4,410 4,436 4,534 4,411 QoQ 2.21% Mortgage 223 204 225 194 207 Corporate(Note1) 12.15% Consumption YoY 9.31% Loan QoQ 7.73% OBU & 3.11% SME overseas 1,789 YoY 3.89% 1,722 1,708 1,756 1,752 QoQ 2.11% branch 6.75% Other OBU & overseas Per
Slide 15: Loan Breakdown
Loan Breakdown (NT$ Hundred Million) Non-secured Secured 3,877 3,746 3,861 84.61% 84.94% 85.16% 705 664 673 15.39% 15.06% 14.84% 2018 2019 1H20 2018 2019 1H20 HoH Non-secured 705 664 673 1.36% Secured 3,877 3,746 3,861 3.07% Secured by property 3,536 3,437 3,530 2.71% Secured by Letter of Guarantee
Slide 16: Loan to Deposit Ratio (LDR)
Loan to Deposit Ratio(LDR) Overall LDR NTD LDR Foreign Currency LDR 77.34% 77.38% 76.40% 76.43% 75.61% 76.57% 76.49% 75.59% 75.50% 73.59% 69.58% 68.54% 67.91% 67.03% 56.89% 2Q19 3Q19 4Q19 1Q20 2Q20 16
Slide 17: Spreads
Spreads Overall Spreads NTD Spreads Foreign Currency Spreads Note 2.34% 2.11% 2.10% 2.04% 1.74% 1.76% 1.75% 1.77% 1.79% 1.59% 1.72% 1.74% 1.77% 1.71% 1.59% 2Q19 3Q19 4Q19 1Q20 2Q20 Note： 1.Central Bank of the R.O.C(Taiwan) announced the discount rate be reduced by 0.25 percentage points to 1.125% in
Slide 18: TCB Bank's NIM
TCB Bank’s NIM (NT$ Hundred million) NIM and Interest earning assets NIM 1.24% 1.19% 1.20% 1.20% 1.18% Average of Interest earning assets 6,430 6,406 6,380 6,384 6,441 2Q19 3Q19 4Q19 1Q20 2Q20 18
Slide 19: Operating Expenses to Net Income
Operating Expenses to Net Income (NT$ million) Net Income Operating Expenses Cost-Income Ratio 56.85% 54.08% 52.78% 51.76% 46.86% 46.63% 2,809 2,740 2,772 2,790 2,533 2,468 1,519 1,463 1,301 1,311 1,403 1,284 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 19
Slide 20: Asset quality
Asset quality (NT$ Million) NPL ratio &NPLs NPL ratio NPLs 0.42% 0.45% 0.44% 0.37% 0.37% 0.31% 2,054 2,003 1,845 1,655 1,645 1,382 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20 20
Slide 21: Asset quality
Asset quality (NT$ Million) NPL Coverage Ratio & Loan Loss Provision NPL Coverage Ratio Loan Loss Provision 475.54% 378.28% 403.68% 343.87% 324.25% 317.95% 6,643 6,573 6,532 6,494 6,345 6,260 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20 21
Slide 22: Fee Income Breakdown
Fee Income Breakdown (NT$ Million) Fee Income 824 816 YoY -5.32% YoY -12.23% 769 QoQ -19.12% 752 1,559 86 73 1,476 86 85 660 Others Others YoY -15.12% 154 176 QoQ - 169 73 146 142 172 Loans YoY 23.94% 293 176 QoQ - 352 Loans 266 252 221 230 Trust 405 YoY -4.07% QoQ -15.87% 464 Trust 212 Insurance &
Slide 23: Wealth Management Fee Income
Wealth Management Fee Income (NT$ Million) 568 549 Total YoY -23.23% 508 495 QoQ -28.96% YoY -11.58% 390 1,062 939 161 161 Mutual Fund 143 260 146 YoY -13.29% QoQ -22.98% 285 Mutual Fund 124 Insurance & 318 Securities 315 YoY -34.32% 692 Insurance 303 282 QoQ -36.83% 514 & 199 Securities Others YoY
Slide 24: Profit of Subsidiary to TCB
Profit of Subsidiary to TCB (NT$ Million) Net Profit after tax 1H19 1H20 HoH TCB 1,831 1,697 -7.32% Subsidiary 275 144 -47.64% Total 2,106 1,841 -12.58% Subsidiary Subsidiary of TCB of TCB 13.08% 7.82% TCB TCB 86.92% 92.18% 1H19 Profit Breakdown 1H20 Profit Breakdown 24
Slide 25: Capital Adequacy
Capital Adequacy Consolidated BIS Ratio Tier I Capital Ratio BIS Ratio +0.88% 13.63% 13.91% 13.56% 12.68% 13.01% 12.41% 12.48% 12.77% 12.55% 11.79% 11.15% 10.99% 2017 1H18 2018 1H19 2019 1H20 Individual BIS Ratio Tier I Capital Ratio BIS Ratio +0.93% 12.98% 13.23% 12.94% 12.01% 12.35% 11.75% 12.37%
Slide 26: Agenda
Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 26
Slide 27: Balance Sheet (Individual)
Balance Sheet (Individual) (NT$ Million) 2017 2018 2019 1H20 YTD Assets： Cash and due from banks 44,066 46,740 44,134 47,527 7.69% Financial investment, net 158,984 163,891 173,347 184,295 6.32% Loans, net 429,656 451,729 434,469 446,944 2.87% Receivables, net 6,329 5,028 4,064 7,104 74.80% Equity m
Slide 28: P&L (Individual)
P&L (Individual) (NT$ Million) 2017 2018 2019 1H19 1H20 HoH Net interest income 7,823 7,991 7,902 3,964 3,927 -0.93% Net fee income 1,554 1,793 1,926 902 972 7.76% Others 971 891 1,283 683 102 -85.07% Total Net Revenue 10,348 10,675 11,111 5,549 5,001 -9.88% Operating Expenses (5,131) (5,626) (5,567
Slide 29: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (NT$ Million) 2017 2018 2019 1H20 YTD Assets： Cash and due from banks 45,123 47,644 45,237 48,245 6.65% Financial investment, net 159,651 165,027 174,356 185,497 6.39% Loans, net 430,858 452,595 435,398 447,794 2.85% Receivables, net 13,658 12,781 12,820 15,827 23.46% Eq
Slide 30: P&L (Consolidated)
P&L(Consolidated) (NT$ Million) 2017 2018 2019 1H19 1H20 HoH Net interest income 8,186 8,434 8,351 4,171 4,126 -1.08% Net fee income 2,449 2,846 2,913 1,430 1,357 -5.10% Others 760 409 831 468 (36) -107.69% Total Net Revenue 11,395 11,689 12,095 6,069 5,447 -10.25% Operating Expenses (5,915) (6,457)
Slide 31: Agenda
Agenda ■ Financial Highlights ■ Financial Review ■ Financial Information ■ Appendix 31
Slide 32: Credit Rating
2020 Credit Rating Date：2020.05.12 Fitch Ratings Long-term Short-term Outlook National Rating A- (twn) F1 (twn) Stable 2018年上半年營運亮點 International Rating BB+ B Stable Viability Rating bb+ Support Rating 4 32 2
Slide 33: Operational Highlights Facilitating Digital Service!!
2020 Operational Facilitating Digital Service!! Highlights Go to ‘MyData Platform’ now With the aim of actively improving the digital service level for customers’ convenience, the Bank has participated in the ”MyData”, a digital service personalization platform, jointly promoted by the Financial Sup
Slide 34: Strategic Outlook for the Second Half of 2020
Strategic Outlook for the Second Half of 2020 Deepen Corporate Governance & Reinforce Corporate Culture of Fair Customer Treatment. Improve Capital Risk Management & Optimize Credit Asset Quality. 2018年上半年營運亮點 Consolidate Core Competitive Advantages & Expand International Financial Territories. Stre
Slide 35: Thanks for your listening!
Thanks for your listening! 35
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