Far Eastern International Bank · TWSE:2845
Far Eastern International Bank — Q2 2024 Earnings Presentation
21 slides from Far Eastern International Bank's earnings presentation, Aug 15, 2024
Slide 1: Investor Conference 2Q'2024
Investor Conference 2Q’2024 8/15’2024
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$3,364.98 Bn. (2Q’24) Petrochemical & energy Polyester & synthetic fiber Cement & building material Retail & department store Financial services – 11 companies in o
Slide 3: Contents
Contents Financial Highlights Key Strategies 3
Slide 4: Highlights
Highlights Asset growth Exceeding YTM budget goals Profitability Consecutive 3.5 yr. double-digit YOY growth Asset quality strength Low NPL%, plus robust bad debt recovery Digitalization Accelerating digital a/c deposit & developing AI implication 4
Slide 5: Assets & Net Worth
Assets & Net Worth Assets Net Worth (NT$Bn) (NT$Bn) YoY YoY +3.2% YoY YoY +7.0% +6.1% 815 +7.1% 793 790 741 39 59 60 37 36 50 55 56 33 48 41 0.2 44 18 16 240 245 243 16 16 225 0 482 41 41 41 43 438 468 468 -2 -0.2 -1 YE'22 YE'23 6/30'23 6/30'24 YE'22 YE'23 6/30'23 6/30'24 Loan Investment C
Slide 6: Loans & Deposits
Loans & Deposits Gross Loan Deposit (NT$Bn) (NT$Bn) YoY YoY YoY YoY +3.0% +3.2% +6.7% +8.8% 474 474 489 661 654 674 444 607 14% 14% 14% 21% 21% 22% 7% 22% 13% 8% 7% 11% 31% 31% 30% 37% 33% 36% 36% 34% 11% 12% 12% 12% 13% 14% 14% 14% 43% 42% 42% 42% 20% 24% 22% 23% YE'22 YE'23 6/30'23 6/30'24 YE'
Slide 7: Asset Quality
Asset Quality NPL Ratio NPL Coverage Ratio Loan Coverage Ratio 0.36% 1504% 1.39% 1192% 1.38% 1.36% 1.35% 0.22% 907% 859% 1.36% 0.14% 0.16% 969% 838% 1.29% 1.28% 0.15% 0.16% 1.29% 587% 0.11% 0.08% 392% YE'22 6/30'23 YE'23 6/30'24 YE'22 6/30'23 YE'23 6/30'24 YE'22 6/30'23 YE'23 6/30'24 Industr
Slide 8: Revenue & PPOP
Revenue & PPOP Revenue PPOP (NT$Bn) (NT$Bn) YoY YoY YoY YoY +9.0% +2.0% +10.8% -7.5% 12.8 11.7 0.6 0.4 5.2 1.8 3.1 6.4 6.5 4.7 0.2 0.3 2.5 1.6 1.8 2.9 2.6 +14% 2.6 1.3 1.6 +20% 7.0 6.5 3.4 3.0 (12%) 2022 2023 Y-T-Jun'23 Y-T-Jun'24 2022 2023 Y-T-Jun'23 Y-T-Jun'24 NII Fee Trading Other 8 S
Slide 9: Spread & Funding SWAP
Spread & Funding SWAP Spread NII & Funding SWAP (NT$Bn) 8.0 1.42% 1.3 1.36% 7.0 3.4 1 1 3.0 0.9 1.29% 6.5 3.0 1.13% 2.0 4.0 0.6 1.07% 1.10% 0.5 0.5 1.06% 0.3 1.01% 1.0 0.0 0.0 2022 2Q'23 Y-T-Jun.’23 2023 2Q'24 Y-T-Jun.’24 2022 2023 Y-T-Jun'23 Y-T-Jun'24 L-D Spread NIM (including Funding SWAP
Slide 10: Fee Income & Trading Income
Fee Income & Trading Income Fee Income Trading Income (NT$Bn) (NT$Bn) YoY YoY YoY +14.1% +4.7% +20.0% 1.8 2.6 1.6 1.6 0.1 +14% 2.5 0.1 (47%) 0.1 0.6 1.3 0.3 0.7 0.2 0.3 0.8 +95% 0.4 2.0 1.3 +26% 1.8 1.0 0.8 0.7 (9%) 2022 2023 Y-T-Jun'23 Y-T-Jun'24 Y-T-Jun'23 Y-T-Jun'24 Retail Banking Corp. B
Slide 11: Provision & Income before tax
Provision & Income before tax Provision Cost IBT (NT$Bn) (NT$Bn) YoY YoY YoY YoY +12.3% +17.3% -0.7% -120% 4.7 4.2 2.7 Net 2.3 Net 0.5 0.5 Net 1.0 0.5 0.9 0.7 Net (0.1) 0.4 0.5 0.3 0.2 0.2 2022 2023 Y-T-Jun'23 Y-T-Jun'24 2022 2023 Y-T-Jun'23 Y-T-Jun'24 Gross Provision cost Recovery Net Pro
Slide 12: Profitability & Valuation
Profitability & Valuation EPS BVPS (NT$/Share) (NT$/Share) YoY YoY YoY YoY +3.0% +18% +7.1% +6.1% 14.47 14.63 1.03 1.00 0.59 13.79 13.51 0.50 2022 2023 Y-T-Jun'23 Y-T-Jun'24 YE'22 YE'23 6/30'23 6/30'24 12 Source: Consolidated number
Slide 13: Capital Adequacy
Capital Adequacy CET1 (unconsolidated) BIS (unconsolidated) 15.32 11.98 11.86 (%) 11.63 14.99 11.50 (%) 14.90 11.91 15.03 14.8 11.11 11.25 14.65 14.37 2022 2Q'23 6/30’23 2023 2Q'24 6/30’24 2022 6/30’23 2Q'23 2023 6/30’24 2Q'24 Industry FEIB Source: FSC report / Management report 13 Industry:
Slide 14: Contents
Contents Financial Highlights Key Strategies 14
Slide 15: Business Scale
Business Scale Assets Gross Loans (NT$Bn) (NT$Bn) Ach. % 97.2% Ach. % 98.8% 489 503 474 2023 6/30'24 2024 * Deposits (NT$Bn) Ach. % 815 824 98.0 793 674 688 661 2023 6/30'24 2024 * 2023 6/30'24 2024 * 15 *2024 Budget
Slide 16: Earnings Power
Earnings Power Revenue growth by Adjust lending / deposit diversification portfolio Steadily more growth in fee Reduce deposit cost income, and trading income Increase FCY lending 15% Fee 25% NII Trading 50% Control credit cost 25% No surprised corporate bad debt Re-negotiate relief
Slide 17: Digitalization & AI
Digitalization & AI AI PoC Deposit Fraud detection NT$ 26Bn (6/30’24) KYC/AML modeling YoY:+88% Call center ~4% of FEIB’s deposit Risk monitoring VASP customers Market analysis ~12% of Bankee’s Legal service & aids deposit WM’s Robo-Advisor 17
Slide 18: Contents: Appendix
& PEC LiLes i Far Eastern Intl Bank Contents o Appendix
Slide 19: Key financial summary
Contents (NT$ m, except percentages and per share data) As of or for 12 months ended December (Consolidated) 31 2022 2023 1H’23 2Q'23 1H’24 2Q'24 YoY Key balance sheet items Total assets 740,540 792,504 789,654 814,584 3.2% Gross loans 444,082 473,824 474,219 488,681 3.0% Deposits and remittances 60
Slide 20: Thank You
& PEC LiLes i Far Eastern Int'l Bank THANK YOU
Slide 21: 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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