Mega Financial Holding Co., Ltd. · TWSE:2886
Mega Financial — Q4 2024 Earnings Presentation
31 slides from Mega Financial's earnings presentation, Mar 12, 2025
Slide 1: 4Q/2024 Analyst Meeting
4Q/2024 Analyst Meeting 2025/3/12 1
Slide 2: Disclaimer
DISCLAIMER • This document is provided by Mega Financial Holding Co., Ltd. (the "Company"). Except for the numbers and information included in the Company's financial statements, the information contained in this document has not been unaudited or reviewed by any accountant or independent expert. Th
Slide 3: Table of Contents
Ta b l e o f C o n t e n t s Overview and Strategic 1 Focus 2 Financial Performance 3 Operating Performance 4 Appendix 3
Slide 4: Mega FHC 1-4Q/24 Earning were up 5% YoY
Mega FHC 1-4Q/24 Earning were up 5% YoY Mega FHC & Subs. 1-4Q/24 earning trend Mega FHC Jan./25 earning trend Unit: NT$MN 1-4Q/2023 1-4Q/2024* 34,766 33,247 31,025 28,370 4,189 3,217 2,206 2,550 1,920 2,003 412 (1,467) 192 167 93 92 219 113 Mega Mega Bills Mega Sec. CKI Mega Mega Site Mega VC Mega F
Slide 5: Mega 4 Core Strategies
Mega 4 Core Strategies • Leading state-linked FHC 1 • Maintain leading position in corp. banking, syndication loan and FX. No. 1 Mega • Emphasize non-bank biz. 2 Focus • Develop consumer banking biz, tailored Mega’s strength Bank vs Non-bank; Corp. banking vs. Consumer banking • ESG, Sustainability,
Slide 6: Table of Contents
Ta b l e o f C o n t e n t s Overview and Strategic 1 Focus 2 Financial Performance 3 Operating Performance 4 Appendix 6
Slide 7: 1-4Q/24 Bank NII rose 2% YoY; Fee Income Bounced up 25% YoY
1-4Q/24 Bank NII rose 2% YoY; Fee Income Bounced up 25% YoY Mega FHC 1-4Q/24 net revenue breakdown* 1-4Q/2023 1-4Q/2024* Unit: NT$MN P&C Others 36,794 4% 1% 36,062 29,201 Trading 28,047 NII Gain 14,324 34% 44% 11,364 3,010 1,341 1,310 Fee -645 17% Net Interest Income Net Fee Income Trading Gain** P&
Slide 8: ROE and ROA in 2024 Comparable to 2023
ROE and ROA in 2024 Comparable to 2023 Major earning matrixes 10.46% 9.93% 7.69% 7.86% ROE 5.84% ROA 0.66% 0.64% 0.45% 0.79% 0.77% 2.37 2.35 To prevent over-inflated capital base as well as to maintain sufficient capital for 1.89 future growth, our dividend policy is: 1.84 0.30 Maintain high payou
Slide 9: Strong Capital Position
Strong Capital Position Mega FHC Mega Bank CAR/RBC Moody’s: A2 CAR Requirement : 100% Moody’s: A1 / S&P: A+ D-SIBs requires: CAR: 14.5% CET1: 11.0% Common equity tier 1 ratio 122.86% 122.68% 122.12% 15.32% 14.14% 14.31% 14.81% Credit rating BIS 120.05% 116.61% 116.11% Double leverage ratio 113.27% 1
Slide 10: Table of Contents
Ta b l e o f C o n t e n t s Overview and Strategic 1 Focus 2 Financial Performance 3 Operating Performance 4 Appendix 10
Slide 11: 7.6% YoY Growth in Total Loans Driven by Large Corp, SME, and Mortgage Loans
7.6% YoY Growth in Total Loans Driven by Steady Increases in Large Corp, SME, and Mortgage Loans Mega Bank quarterly loan balance* Mega Bank 1-4Q/24 loan breakdown by customers Unit: NT$BN Growth % 2,312 Total YoY: 7.6% 2,237 2,264 Other Total: 2,148 2,199 QoQ: 2.1% consumer 5% 709 762 Large corp. 7
Slide 12: 4Q/24 Real Estate Loans were up 11.1% YoY
4Q/24 Real Estate Loans were up 11.1% YoY; while Retail & Wholesales/Consumer were up 15.5%/11.4% YoY Mega Bank loan balance trend by industry* 4Q/24 loan breakdown by industry* Unit: NT$BN 4Q/24 3Q/24 4Q/23 Growth YoY: -0.7% 597 QoQ: 2.6% Manufacturing 582 Others 601 9% Manufactur YoY: 12.1% 120 Qo
Slide 13: 4Q/24 Overseas Loans Grew 1.8% YoY; Domestic Loans Rose 1.0% QoQ
4Q/24 Overseas Loans Grew 1.8% YoY; while Domestic Loans Rose 1.0% QoQ / 7.9%YoY Mega Bank 4Q/24 loan breakdown by regions * Unit: NT$BN Growth YoY: 1.8% 338 344 339 Overseas QoQ: -1.5% 333 340 175 184 OBU Growth 176 184 YoY: 1.1% 182 QoQ: 5.1% Overseas 15% OBU Growth 8% 1,681 1,713 1,743 1,760 YoY:
Slide 14: 4Q/24 NTD Loan Grew 1.1% QoQ
4Q/24 NTD Loan Grew 1.1% QoQ Mega Bank 4Q/24 loan breakdown by currency: NTD vs. foreign currency loan * Unit: NT$BN 579 Growth FCY Loan 583 578 582 580 FCY loan** YoY: -0.7% 26% QoQ: -0.2% 1,664 1,683 Growth NTD Loan 1,534 1,584 1,613 NTD loan YoY: 9.7% 74% QoQ: 1.1% 4Q/23 1Q/24 2Q/24 3Q/24 4Q/24 M
Slide 15: 4Q/24 Total Deposits Up 3.5% YoY with Demand Deposits at 45.03%
4Q/24 Total Deposits Up 3.5% YoY with Demand Deposits at 45.03% Mega Bank deposit balance * Mega Bank 4Q/24 deposit breakdown Growth FCY demand Unit: NT$BN YoY: 3.5% 14% FCY time QoQ: -0.8% 26% 3,028 3,059 3,034 Total: 2,930 2,933 FX time deposit 774 773 771 745 738 NTD time NTD time NTD demand 28%
Slide 16: 4Q/24 Total LDR Reaches 71.32%; USD LDR Hits 39.34%
4Q/24 Total LDR Reaches 71.32%; USD LDR Hits 39.34% Mega Bank’s total LDR* Mega Bank’s USD LDR** Mega LDR Industry LDR*** 74.79% 71.82% 72.89% 71.16% 72.49% 72.46% 71.32% 70.58% 71.50% 40.35% 40.35% 71.02% 40.01% 70.56% 70.56% 70.76% 70.04% 39.80% 39.65% 39.45% 39.27% 39.34% 69.63% 69.28% 1Q/23 2Q/2
Slide 17: 4Q24 Loan Yield and Deposit Cost Rate Decrease; Spread at 1.36%
4Q24 Loan Yield and Deposit Cost Rate Decrease; Spread at 1.36% Mega Bank total loan interest spread Mega Bank overseas loan interest spread* Spread Yield Cost Spread Yield Cost 6.30% 6.22% 6.26% 6.20% 6.08% 5.72% 3.38% 3.35% 3.30% 3.36% 3.31% 3.23% 3.11% 3.08% 3.15% 2.95% 2.84% 2.72% 3.11% 3.22% 3.
Slide 18: NIM Slightly Down Due to Decline in TWD and USD Interest Spreads
NIM Slightly Down Due to Decline in TWD and USD Interest Spreads Mega Bank quarter NIM and average interest earning assets* Unit: NT$BN / % Overall NTD FCY NIM AIEA USD RMB Other FCY NIM AIEA * NIM = annualized net interest income / average interest earning assets (AIEA) of that quarter; internal nu
Slide 19: 4Q/24 Wealth Management Fees Remain Robust at NT$1.036 Billion
4Q/24 Wealth Management Fees Remain Robust at NT$1.036 Billion Mega Bank wealth management gross fee breakdown* 1,400 Unit: NT$MN 1,235 1,179 14 1,200 5 188 1,087 1,036 Total: 1,008 3 202 11 Other income**** 1,000 16 908 193 200 212 193 12 200 Custodian fee*** 800 181 222 123 183 141 221 Management
Slide 20: 1-4Q/24 Net Fee Income Up 25% YoY, Driven by WM and Credit Fee Growth
1-4Q/24 Net Fee Income Up 25% YoY, Driven by 28% WM and 37% Credit Fee Growth Mega Bank net fee breakdown 1-4Q/23 1-4Q/24 Unit: NT$MN 3,650 3,453 2856 2517 1030 1,087 1,096 1,166 Wealth Mgmt* FX Credit fee** Others Mega Bank net fee trend*** Mega Bank 1-4Q/24 net fee breakdown Unit: NT$MN Others 12%
Slide 21: 4Q/24 Improved Asset Quality with Lower NPL Ratio and Higher Coverage Ratio
4Q/24 Improved Asset Quality with Lower NPL Ratio and Higher Coverage Ratio Mega Bank NPL balance & NPL ratio Mega Bank loan loss reserved and coverage ratio 985.00% 0.31% 696.05% 701.91% 0.30% 0.28% 538.73% 522.49% 586.78% 0.24% 0.22% 0.17% Unit: NT$MN Unit: NT$MN 39,132 6,683 6,867 6,348 37,247 5,
Slide 22: 4Q/24 New NPL formation Drops to 0.03%
4Q/24 New NPL formation Drops to 0.03%, Large Corp. & SME NPL Ratios Slightly Decline to 0.29% & 0.25% Mega Bank NPL ratio by customer * Mega Bank new NPL as % of total loan * Large corp. NPL% 0.29% 0.30% 0.33% 0.29% 0.23% 0.15% New NPL 3Q/23 4Q/23 1Q/24 2Q/24 3Q/24 4Q/24 0.21% 0.08% 0.05% 0.07% 0.0
Slide 23: Table of Contents
Ta b l e o f C o n t e n t s Overview and Strategic 1 Focus 2 Financial Performance 3 Operating Performance 4 Appendix 23
Slide 24: 1-4Q/24 Mega FHC consolidated P&L statement
1-4Q/24 Mega FHC consolidated P&L statement Unit: NT$MN; EPS: NT$ 1-4Q/2024* 1-4Q/2023 YoY Interest income 130,126,801,395 117,567,629,937 11% Less: interest expense 93,332,874,317 81,506,052,522 15% Net interest revenue 36,793,927,078 36,061,577,415 2% Net revenue other than interest 46,691,204,334
Slide 25: 1-4Q/24 Mega FHC consolidated balance sheet
1-4Q/24 Mega FHC consolidated balance sheet Unit: NT$MN 1-4Q/2024* 1-4Q/2023 YoY Cash and cash equivalents, net 103,947,126,076 139,031,497,862 -25% Due from central bank and interbank assets 598,175,342,692 552,414,511,136 8% Financial assets at fair value thru P&L 248,660,021,665 228,463,860,226 9
Slide 26: 1-4Q/24 Mega Bank consolidated P&L statement
1-4Q/24 Mega Bank consolidated P&L statement Unit: NT$MN; EPS: NT$ 1-4Q/2024* 1-4Q/2023 YoY Interest income 124,802,774,711 113,882,667,117 10% Less: interest expense 86,518,972,802 76,422,960,649 13% Net interest revenue 38,283,801,909 37,459,706,468 2% Net revenue other than interest 31,447,999,79
Slide 27: 1-4Q/24 Mega Bank consolidated balance sheet
1-4Q/24 Mega Bank consolidated balance sheet Unit: NT$MN 1-4Q/2024* 1-4Q/2023 YoY Cash and cash equivalents, net 96,519,888,312 133,879,647,242 -28% Due from central bank and interbank assets 598,175,342,692 554,414,511,136 8% Financial assets at fair value thru P&L 58,831,606,085 56,784,719,143 4%
Slide 28: Mega FHC ESG recognition
Mega FHC ESG recognition Mega Group ESG Awards and Achievements 2024/2 2024/3 2024/6 2024/9 2024/10 CDP Climate Change CommonWealth YuShan Award Insurance Dragon SBTi Approval A Sustainable Citizen TCFD Benchmark and Phoenix Award 1.5°C Company Leadership Level Award • Achieved A- • Awarded the •
Slide 29: Mega FHC ESG recognition
Mega FHC ESG recognition Mega Group ESG Awards and Achievements(cont’d) 2022/10 2022/11 2023/6 2023/10 2023/12 Occupational Top 5% DJSI Component, Highest Certification MSCI AA Rating Safety Excellence Corporate Governance Sustainable Finance for TCFD Report TCSA 8 Awards Evaluation Pioneer Allian
Slide 30: Mega Bank's Extensive Overseas Franchise
39 offices in 18 countries/areas; 22 offices in“New South Bond Area” M e g a B a n k ’s E x t e n s i v e O v e r s e a s F r a n c h i s e Toronto London Amsterdam Vancouver China: New York Paris •Suzhou branch Chicago •Wujiang sub-branch Tokyo Silicon Valley •Kunshan sub-branch •Ningbo branch Los
Slide 31: Thank you~ Q&A
. IK ey = ay Mega Holdings Thank you~
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