Far Eastern International Bank · TWSE:2845

Far Eastern International Bank — Q1 2023 Earnings Presentation

20 slides from Far Eastern International Bank's earnings presentation, May 26, 2023

  1. Slide 1: Investor Conference 1Q'2023

    Investor Conference 1Q’2023 5/26’2023

  2. 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$3,150 Bn. (1Q’23) Petrochemical & energy Polyester & synthetic fiber Cement & building material Retail & department store Financial services – 11 companies in oper

  3. Slide 3: Contents

    Contents 2023 Financial Financial Highlights Highlights 2023 Financial Highlights Key Strategies 3

  4. Slide 4: Highlights

    Highlights Profitability  Recovering YOY momentum, especially PPOP and income before tax Lending  Rapid SME lending growth, YOY exceeding 20% Investment  Preparing investment portfolio for optimal yield and capital gain, when rate hike near to the peak Risk Control  Strengthening risk management

  5. Slide 5: Assets & Net Worth

    Assets & Net Worth  Assets  Net Worth (NT$Bn) (NT$Bn) YoY YoY YoY 5.0% YoY +13.2% +2.4% +10.6% 741 765 723 729 55 56 35 36 33 34 55 44 44 50 50 51 16 17 212 225 220 14 15 228 0 41 41 438 431 463 36 36 407 -2 -1 -1 YE'21 YE'22 3/31'22 3/31'23 YE'21 YE'22 3/31'22 3/31'23  Loan  Investment  Cash &

  6. Slide 6: Loans & Deposit

    Loans & Deposit  Gross Loan  Deposit (NT$Bn) (NT$Bn) YoY YoY YoY +7.5% YoY +3.7% +7.6% -0.8% 469 631 444 436 612 607 608 413 13% 97 13% 13% 13% 96 8% 93 93 11% 9% 11% 146 146 36% 144 143 34% 36% 34% 54 58 50 56 60 64 45 52 43% 42% 42% 42% 81 88 91 104 YE'21 YE'22 3/31'22 3/31'23 YE'21 YE'22 3/31'2

  7. Slide 7: Liquidity

    Liquidity  Demand Deposit ratio 37.02% 37.93%  Gross loan-to-deposit ratio 33.12% 30.29% 74.35% 73.12% 71.77% 73.42% 70.18% YE'2021 3/31’22 3/30'22 YE'2022 3/31’23 3/30'23 71.44%  Liquidity coverage ratio 68.82% 142.22% 67.49% 133.54% 112.03% 114.81% YE'2021 3/31'22 YE'2022 3/31'23  By balance 

  8. Slide 8: Asset Quality

    Asset Quality  NPL Ratio  NPL Coverage Ratio  Loan Coverage Ratio 0.36% 907% 1.39% 1.40% 0.34% 878% 814% 773% 0.27% 0.24% 1.35% 496% 1.33% 1.36% 1.35% 558% 0.18% 1.32% 0.16% 0.15% 0.15% 392% 412% 1.32% Dec'21 Mar'22 Dec'22 Mar'23 Dec'21 Mar'22 Dec'22 Mar'23 Dec'21 Mar'22 Dec'22 Mar'23  Industry

  9. Slide 9: Revenue & Profit Before Provision

    Revenue & Profit Before Provision  Revenue  PPOP (NT$Bn) (NT$Bn) YoY YoY YoY YoY +8.8% +20.0% +15.0% +40.8% 11.7 % 10.8 0.4 0.1 1.8 3.0 1.1 4.7 2.5 0.1 4.1 1.3 0.6 +270% 3.2 2.5 0.1 0.2 0.7 0.6 (4.0%) 1.0 6.4 7.0 1.6 1.7 2021 2022 Y-T-Mar'22 Y-T-Mar'23 2021 2022 Y-T-Mar’22 1Q'22 Y-T-Mar’23 1Q'23 

  10. Slide 10: Interest Margin & Fee Income

    Interest Margin & Fee Income  Loan-to-Deposit Spread  Fee Income (NT$Bn) YoY 3.37% 3.39% YoY -20.1% -4.0% 3.2 0.7 2.5 0.7 0.6 0.7 0.1 1.80% 0.1 +36.0% 1.64% 1.47% 1.51% 1.49% 1.49% 2.5 1.45% 1.8 0.6 0.5 (11.3%) 1.41% 1.39% 1.30% 2021 03/31'22 3/31’22 2022 03/31'23 3/31’23 2021 2022 Y-T-Mar’22 1Q'2

  11. Slide 11: Provision & Income before tax

    Provision & Income before tax  Provision Cost  IBT (NT$Bn) (NT$Bn) YoY YoY YoY YoY +26.9% +30.2% -33.1% +79.1% 4.2 3.3 1.0 Net Net 0.8 0.5 0.8 1.2 1.0 Net Net 0.4 0.2 0.4 0.4 0.4 0.5 0.2 0.1 2021 2022 Y-T-Mar'22 Y-T-Mar'23 2021 2022 1Q'22 Y-T-Mar’22 1Q'23 Y-T-Mar’23  Gross Provision cost  Recove

  12. Slide 12: Net Profitability

    Net Profitability  ROA (before tax)  ROE (before tax) 0.79%* 11.69%* 0.60%* 0.64% 0.59% 8.45%* 9.24% 0.52%* 8.08% 0.57% 7.04%* 8.01% 0.47% 0.40%* 6.71% 6.04%* 2021 1Q'22 Y-T-Mar’22 2022 1Q'23 Y-T-Mar’23 2021 Y-T-Mar’22 1Q'22 2022 Y-T-Mar’23 1Q'23  Industry  FEIB * Annualized Source: Management R

  13. Slide 13: Capital Adequacy

    Capital Adequacy  CET1 (unconsolidated)  BIS (unconsolidated) (NT$Bn) 20% 600 14.90% 14.58% 480 13.95% 14.04% 429 460 459 500 15% 400 10% 11.63% 11.37% 300 10.87% 10.41% 200 11.30% 11.04% 12.26% 11.98% 5% 47 48 55 55 100 0% 0 11.1 YE'2021 3/31’22 3/30'22 YE'2022 3/31’23 10.9 3/30'23 YE'2021 3/30'2

  14. Slide 14: 2023 Rating Results

    2023 Rating Results  Fitch Ratings confirms ratings of FEIB unchanged on 3/31’23.  FEIB’s 2023 rating results:  Rating are supported: Viability Rating bbb  Stable FEIB’s credit profile Foreign LT IDR BBB  Moderate risk appetite Foreign ST IDR F3  Adequate loss absorption National LT Rating A+(

  15. Slide 15: Contents

    Contents 2023 Financial Financial Highlights Highlights 2023 Financial Highlights Key Strategies 15

  16. Slide 16: Key Strategies

    Key Strategies Steady Growth Digital Innovation  CET1: 11.63 %  Bankee Deposit  Total BIS: 14.90 % ~ NT$ 12 Bn. (~2% (As at Mar.’23) of total deposit) Going Overseas ESG Mission  Overseas revenue  Corporate / Total revenue governance evaluation 24.2% 20.6%  Top 5 % among TWSE listed 2021 2023(

  17. Slide 17: Contents 2023 Appendix

    Contents 2023Appendix Financial Highlights 17

  18. Slide 18: Financial Highlights

    Contents (NT$ m, except percentages and per share data) As of or for 12 months ended (Consolidated) December 31 2021 2022 1Q'22 1Q'23 YoY Key balance sheet items Gross loans 412,872 444,082 436,362 469,150 7.5% Total assets 723,055 740,540 729,111 765,243 5.0% Deposits and remittances 612,107 607,42

  19. Slide 19: Thank You

    & PEC LiLes i Far Eastern Int'l Bank THANK YOU

  20. Slide 20: 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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