O-bank Co. Ltd. · TWSE:2897
O-bank — QIC 14th Taiwan CEO Week (2023)
50 slides from O-bank's conference presentation, 2023
Slide 1: O-Bank 2023 1H Business Review
Security Code：2897.TW O-Bank 2023 1H Business Review QIC 14th Taiwan CEO Week
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 Introduction of O-Bank 02 2023 1H Operation Highlights Agenda 03 2023 1H Financial Results 04 Key Strategic Focuses Appendix: Financial Summary of 05 O-Bank and Its Main Subsidiaries 2
Slide 4: Introduction of O-Bank
@ ee Introduction of O-Bank ©BANK
Slide 5: About O-Bank
01 About O-Bank Predecessor: Industrial Bank of Taiwan (IBT) IBT was founded in 1999 by former Central Bank Governor Samuel C. Shieh and veteran financier Kenneth C.M. Lo. The principal mission of IBT was to coordinate with Taiwan's national economic development strategies by providing professional
Slide 6: O-Bank's Business Scope
01 O-Bank's Business Scope Corporate Banking Online + Offline • Fueled by the digitalizaiton trends, O-Bank provides ● Corporate Banking Services retail banking services mostly via online digital ● Trade Finance Services channel to connect with younger generation consumers. ● Financial Markets Servi
Slide 7: Operational Strengths of O-Bank
01 Operational Strengths of O-Bank Master the progress of digital banking and cultivate younger generation customer base ✓ Mobile banking enables customers to open accounts, make deposits, apply for loans, and manage finances online 24/7. ✓ Utilize digital technologies such as big data and cloud tec
Slide 8: Sustainable Business Operations
01 Sustainable Business Operations ✓ Signed on to the Partnership for Carbon Accounting Financials (PCAF), introduced the international carbon management standard for investment and financing, becoming the first non-FHC bank to join in Taiwan. ✓ Fully integrated ESG audits into the corporate credit
Slide 9: ESG Recognitions
01 ESG Recognitions Received six 2023 Taiwan Corporate Sustainability Awards, As of the end of October of 2023, O-Bank scored 8.7, including “Corporate Comprehensive Performance Award” ranked No.1 among Taiwan’s financial institutions, and multiple awards across various categories; No.3 among all li
Slide 10: O-Bank's Main Subsidiaries and Associated Companies
01 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: O-Bank Group Main Subsidiaries
01 O-Bank Group Main Subsidiaries EverTrust Bank Business • Corporate and consumer deposit Scope • Corporate commercial real estate loan and consumer residential mortgage loan • Strong presence in Northern and Southern Business California and our familiarity with Chinese EverTrust Bank Highlight cul
Slide 12: O-Bank's Associated Companies Recognized Using Equity Method
01 O-Bank’s Associated Companies whose Profits are Recognized Using Equity Method Infinite Finance (Security Code：6958.TW) • Vehicle installment purchases Business • Corporate financial service Scope • Long-term vehicle leases • Financial leasing of equipment in Mainland China market Business • The
Slide 13: 2023 1H Operation Highlights
02 2023 1H Operation Highlights 12
Slide 14: 2023 1H Operation Highlights: O-Bank
02 2023 1H Operation Highlights: O-Bank Consolidated Financial Results NTD millions Net Net Profits ROA ROE Revenues After Tax 5,086 2,071 0.70% 7.56% YoY: +16% YoY: +43% YoY: +39% YoY: +37% 1H22: 4,376 1H22: 1,449 1H22: 0.50% 1H22: 5.51% Standalone Financial Results NTD millions Net Net Profits ROA
Slide 15: 2023 1H Consolidated Net Profits After Tax Compositions
02 2023 1H Consolidated Net Profits After Tax Compositions Net Profit Compositions NT $ million 2023 1H (by Business Unit) (6) 2,071 217 149 56 93 775 787 O-Bank CBF IBT Holdings Venture Capital Infinite VentureCapital Finance*1 Sunshine Leasing Other Consolidated (holding Business Consumer subsidia
Slide 16: 2023 1H Standalone Net Profits After Tax Compositions
02 2023 1H Standalone Net Profits After Tax Compositions Net Profit Compositions NT $ million (by Business Unit) 2023 1H 149 56 93 (6) 1,498 199 220 787 O-Bank CBF VentureCapital IBT Holdings Venture Capital Infinite Finance*1 Sunshine Leasing Other Other Standalone Consolidates Net (holding Busines
Slide 17: Capital Adequacy and Asset Quality
02 Capital Adequacy and Asset Quality As of the end of 2022 1H, O-Bank’s BIS Ratio was 13.10%, Capital Tier1 Capital Ratio was 11.60%, and CET1 Ratio was 11.38%. Adequacy O-Bank maintained a healthy capital adequacy. O-Bank’s NPL ratio was 0.31% and loan loss coverage ratio was 467.72%, as of the en
Slide 18: 2023 1H Financial Results
03 2023 1H Financial Results 03-3 Individual Financial Results: 03-1 Consolidated Financial Results China Bills Finance Corp. 03-2 Standalone Financial Results: 03-4 Individual Financial Results: O-Bank EverTrust Bank 17
Slide 19: Consolidated Financial Results
03-1 Consolidated Financial Results 18
Slide 20: Consolidated Financial Results
03-1 Consolidated Financial Results Total Assets Net Profit NT $ million NT $ billion Total Assets Net Profit Total Assets to Parent Company Growth Rate Net Profit Attributable to Parent Bank 4.47% 5,808 2.62% -0.20% -0.06% 0.39% 603 5,034 561 575 575 577 YoY+42.94% 3,200 YoY+48.75% 387 2,301 335 32
Slide 21: Consolidated Financial Results
03-1 Consolidated Financial Results Net Profit Compositions 2023 1H NT $ million 5,086 2,552 -2,318 -216 2,071 -481 Tax & Income(loss) from Net Revenue Operating Expense Provision Profit before Tax Taxoperations discontinued Net Profit YoY +710 +34 +35 +641 +19 +622 +16.23% +1.50% +19.53% +33.54% +4
Slide 22: Consolidated Financial Results
03-1 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% 460 5.7% 1,471 15.8% 1,497 12.3% +
Slide 23: Standalone Financial Results - O-Bank
03-2 Standalone Financial Results -O-Bank- 22
Slide 24: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank 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+48.75% YoY 2,212 2,015 1,841 2,004 1,730 +50.58% 1,498 1,210
Slide 25: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank ROE & ROA NIM & Spread ROE NIM ROE(excl. one-off gain) 13.59% ROA Spread ROA(excl. one-off gain) 1.71% 1.67% 1.66% 1.53% 1.45% 1.41% 7.84% 5.64% 5.74% 0.95% 0.95% 5.12% 0.78% 0.81% 0.74% 0.74% 1.50% 3.37% 3.33% 0.80% 0.57% 0.60% 0.60% 0.35% 0.33% 2019 2020 2
Slide 26: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank Net Revenue Breakdown NT $ million One-off Gain 9,064 Share of profit of associates subsidiaries and accounted for using equity method Others 3,214 35.5% Net Fee Income Net Interest Income 5,850 YoY 5,305 5,511 1,077 +32.75% 4,651 11.9% 1,098 1,416 20.7% 25.
Slide 27: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank 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 1.80 64.18% 9,064 59.83% 54.83% 53.94% 54.17% 47.96% 5,850 5,3
Slide 28: Standalone Financial Results: O-Bank
03-2 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 301 70.40% 279 67.57% 67.57% 65.56% 66.81% 253 251 301 238 29% 95 32% 279 27% 19% 80 47 18% 251 253 66 42 2
Slide 29: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank Loan Breakdown Loan Breakdown NT $ billion by Industry Corporate Loans Personal Loans Mortgages 203 Personal Loan, 5.25% Mortgages, 7.16% 189 176 Construction 166 engineering, 2.10% 159 Others, 4.74% Manufacturing, 18.97% medical care, 1.16% corporate financ
Slide 30: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank NT $ million NT $ million Asset Quality Loan Loss Reserve LLR Ratio(Loan Loss Reserve/Total Loans) NPL 467.7% Loan Loss Reserve/NPL 431.5% NPL Ratio 353.6% 0.75% 309.7% 0.42% 0.41% 183.1% 0.35% 0.31% 1.53% 1.44% 1.43% 1.38% 1.31% 2,911 2,883 1,325 2,426 2,29
Slide 31: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank Capital Structure BIS (Capital Adequacy Ratio) CET1 Tier I 14.71% 14.49% 14.00% 13.63% 13.51% 12.72% 13.10% 12.02% 12.67% 11.46% 12.09% 11.60% 11.38% 11.72% 11.34% 2019 2020 2021 2022 1H23 Note: Data as of year end, 2019-2022. 30
Slide 32: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank Net Profit Book Value Per Share P/B Ratio Net Profit: NT $ million EPS One-off Gain EPS/BVPS: NT $ EPS(excl. one-off gain) 12.76 12.45 12.26 12.02 11.75 1.80 11.18 5,034 0.80 0.78 0.74 0.68 0.63 0.61 0.63 0.69 0.45 0.41 0.5 0.32 1,841 2,004 1,100 1,147 1,498
Slide 33: Individual Financial Results - China Bills Finance Corp.
03-3 Individual Financial Results -China Bills Finance Corp.- 32
Slide 34: Individual Financial Results: China Bills Finance Corp.
Individual Financial Results: 03-3 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 1,645 176 1,301 8.7% 45.7% YoY+26.86% 1,245 1,192 47.6% 1,168 1,040 YoY+28.82% 983 71.0% 937 1,188
Slide 35: Individual Financial Results: China Bills Finance Corp.
Individual Financial Results: 03-3 China Bills Finance Corp. Assets ROE、ROA & EPS NT $ billion ROA ROE 7.28% Total Assets 6.94% 6.40% Outsanding Balances of Guarantee Growth Rate of Guarantee Balances 5.28% 5.07% 4.38% 10.50% 0.83% 0.76% 0.76% 4.79% 0.63% -1.00% 229 0.56% 218 -3.53% 0.48% 208 198 20
Slide 36: Individual Financial Results: China Bills Finance Corp.
Individual Financial Results: 03-3 China Bills Finance Corp. NPL & Reserve for Guarantee Liabilities CAR 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 37: Individual Financial Results - EverTrust Bank
03-4 Individual Financial Results -EverTrust Bank 36
Slide 38: Individual Financial Results: EverTrust Bank
03-4 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 -8.35% 11.6 9.5 YoY+58.28% 35.4 32.5 32.6 33.1 7.1 34.2 32.4 29.9 30.3 YoY+30.66% 18.5 4.5 14.2 18.0 13.9 2019 2
Slide 39: Individual Financial Results: EverTrust Bank
03-4 Individual Financial Results: EverTrust Bank Assets、 ROE、ROA & EPS Loans & Deposits USD $ million ROA ROE 7.47% Total Assets Loans 6.53% Deposits Growth Rate of Loans 5.96% 14.67% 5.47% 4.86% 3.16% 3.37% 4.29% -1.64% -16.65% 1.52% 1.68% 0.99% 1.20% 1.28% 0.96% 1,000 995 945 908 2019 2020 2021 2
Slide 40: Individual Financial Results: EverTrust Bank CAR
03-4 Individual Financial Results: EverTrust Bank NPL Ratio & CAR Coverage Ratio Coverage Ratio 12974% 9852% 30.47% 31.84% 5505% 29.03% 22.48% 808% 19.61% 51% 2019 2020 2021 2022 1H23 2.74% NPL Ratio 2019 2020 2021 2022 1H23 0.01% 0.01% 0.03% 0.19% 2019 2020 2021 2022 1H23 Note: Data as of year end,
Slide 41: Key Strategic Focuses
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Slide 42: "Boutique Digital Bank" Strategy
04 “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 43: "Boutique Digital Bank" Strategy
04 “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 44: "Boutique Digital Bank" Strategy
04 “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 45: Strategic Investment Portfolio Business Overview
04 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 46: ALL FOR YOU
ALL FOR YOU - wuo-banicom
Slide 47: Appendix: Financial Summary of O-Bank and Its Main Subsidiaries
05 Appendix: Financial Summary of O-Bank and Its Main Subsidiaries 46
Slide 48: O-Bank-Financial Summary
O-Bank-Financial Summary (NT $ million) 2Q23 1Q23 4Q22 3Q22 2022 2021 YoY 1H23 1H22 YoY Income Statement Interest income 2,619 2,321 2,044 1,685 5,812 3,471 67% 4,940 2,083 137% Interest expense (2,045) (1,810) (1,398) (889) (3,044) (1,261) 141% (3,855) (757) 409% Net interest income 574 511 646 796
Slide 49: CBF-Financial Summary
CBF-Financial Summary (NT $ million) 2Q23 1Q23 4Q22 3Q22 2021 2021 YoY 1H23 1H22 YoY Income Statement Interest income 743 726 624 533 2,047 1,720 19% 1,470 889 65% Interest expense (695) (640) (524) (353) (1,207) (461) 162% (1,335) (331) 303% Net interest income 49 86 101 180 839 1,259 -33% 135 558
Slide 50: EverTrust Bank-Financial Summary
EverTrust Bank-Financial Summary (USD $ thousand) 2Q23 1Q23 4Q22 3Q22 2022 2021 YoY 1H23 1H22 YoY Income Statement Interest income 12,529 11,674 11,177 9,339 35,491 34,271 4% 24,203 14,974 62% Interest expense (3,559) (2,596) (1,467) (612) (3,130) (3,970) -21% (6,155) (1,051) 486% Net interest incom