First Financial Holding Co. Ltd. · TWSE:2892
First Financial — Q4 2008 Earnings Presentation
35 slides from First Financial's earnings presentation, Feb 26, 2009
Slide 1: First Financial Holding 2008 4Q Earnings Results
First Financial Holding 2008 4Q Earnings Results -Preliminary 26 Feb, 2009
Slide 2: Disclaimer
Disclaimer This presentation is provided by First Financial Holding Co., Ltd. (“FFHC”). The information contained within is not reviewed or reviewed by any accountant or any independent third party. Users should read this material in conjunction with all other public financial and operational inform
Slide 3: Contents
Contents - Financial Highlights - Asset Quality Reviews - Operating Results - Appendix 3
Slide 4: 2008 Financial Highlights
2008 Financial Highlights -preliminary
Slide 5: 4Q 2008 Financial Highlights
4Q 2008 Financial Highlights Net Income Total Asset (in NT$ mn) (in NT$ mn) -40.6% 11.6% 7,412 1,846,522 07: 12,485 07: 1,654,461 EPS ROAE (in NT$) -41.5% -40.1% 1.20 7.25% 07: 2.05 07: 12.11% 5
Slide 6: 2008 Key Figures
2008 Key Figures 4Q08 Earnings Breakdown1 ( in NT$ mn) Key Figures ( in NT$ dollar, NT$ mn, mn shares or %) Insurance YoY % 2006 2007 2008 NT$(327); -4.4% Net Income 10,662 12,485 7,4121 ª 40.6% Investment Trust Others NT$169; 2.3% NT$(31); -0.4% Total Assets 1,600,903 1,654,461 1,846,522 © 11.6% EP
Slide 7: 2008 Asset Quality Review - FCB
2008 Asset Quality Review -FCB
Slide 8: FCB 4Q08 Asset Quality
FCB 4Q08 Asset Quality NPL Amount, Reserve, Coverage (in NT$ mn or % ) Coverage Ratio NPL Ratio NPL NPL Reserve 1.65% 1.57% 1.63% 1.64% 1.55% 1.50% 1.49% 1.45% 1.40% 1.36% 50.40% 52.15% 50.66% 52.82% 51.38% 53.84% 54.18% 54.67% 55.00% 55.34% 15,551 15,406 16,137 15,956 17,080 16,234 15,761 15,293 15
Slide 9: NPL Migration by Sectors
NPL Migration by Sectors 4Q07 1Q08 2Q08 3Q08 4Q08 Individual1 1.41% 1.52% 1.42% 1.44% 1.47% Mortgage2 1.21% 1.28% 1.24% 1.26% 1.30% Large Corp. 1.66% 1.66% 1.82% 1.60% 1.54% SME 2.36% 2.12% 2.00% 2.00% 2.00% Domestic 1.65% 1.63% 1.54% 1.47% 1.43% Overseas 0.53% 0.54% 0.51% 0.75% 1.53% Total 1.50% 1.
Slide 10: New NPL Influx Breakdown
New NPL Influx Breakdown NPL (in NT$ mn Item 2007 2008 Item 2007 2008 Year-end NPL Bal. 16,234 16,916 New NPL Influx 5,738 6,420 Write-off - Domestics 4,630 3,599 Total Loan 1,079,911 1,169,534 Write-off - Overseas 280 2,139 Ratio 0.53% 0.55% Total Write-offs 4,910 5,738 New NPL Influx ( in NT$ mn o
Slide 11: 2008 Operating Results
2008 Operating Results - preliminary
Slide 12: 2008 Operating Results
2008 Operating Results 2008 Consolidated Income & Loss (in NT$ mn) 44,973 (17,129) Insurance 11,541 Bank 7,125 (18,666) (2,080) 7,098 1 2 Net Revenue Operating Provision Income Tax Net Income Expenses 2007 Consolidated Income & Loss (in NT$ mn) 39,831 (16,895) (6,064) (4,022) 12,850 Net Revenue Oper
Slide 13: Profitability
Profitability 2008 FFHC & Major Subsidiaries FFHC Net Income (in NT$ mn ) FCB Net Income (in NT$ mn) Total Asset: 1,846,522 Total Equity: 100,131 Total Asset: 1,811,940 Total Equity: 89,491 ROAE1 7.25% ROAE1 10.00% -25.49% -42.32% 12,850 8,961 12,026 7,412 2007 2008 2007 2008 1. Annualized ROAE 2. U
Slide 14: Profitability
Profitability 2008 FFHC & Major Subsidiaries First Sec Net (in NT$ mn ) First Securities Net (in NT$ mn ) FSITC Net (in NT$ mn ) First-Aviva4 Net (in NT$ mn ) Total Asset: 12,921 AUM: 85,001 Total Equity: 6,263 AUM Ranking: 7 ROAE (9.39 %) ROAE 17.1 % 9,022 FFHC 51% 5,886 1,100 234 169 2008 8,961 (6
Slide 15: FFHC Profitability
FFHC Profitability Quarterly Net Income (in NT$ mn) Net Income 4,418 3,219 3,219 3,451 2,955 2,494 2,618 2,732 2,073 (844) 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q08 Annualized ROAE ( % ) Cumulative Net Income Annualized ROAE 12.83% 12.11% 12.81% 12.34% 11.08% 11.53% 10.85% 10.68% 9.
Slide 16: FCB Profitability
FCB Profitability Quarterly Net Income (in NT$ mn ) Net Income 3,185 3,306 2,701 3,064 3,644 2,617 3,530 3,418 2,074 (61) 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Annualized ROAE ( % ) Cumulative Net Income Annualized ROAE 15.37% 15.37%% 14.28% 13.60% 13.37% 12.33% 13.32% 12.23% 12.23% 10.0
Slide 17: FCB 2008 Revenue
FCB 2008 Revenue 2008 Cumulative Net Revenue (in NT$ mn or %) % of Cumulative Net Revenue Item 2007 2008 Change NII 61.4% 73.5% +12.1% 32,577 Net Fee 19.2% 15.5% - 3.7% -9.3% Recovery 8.4% 7.8% - 0.6% 35,936 Gain on other fin. pr.1 4.6% -1.2% - 5.8% Others 1.3% 2.3% +1.0% Gain on LT stock invest.1 4
Slide 18: FCB 2008 Loan Book Mix
FCB 2008 Loan Book Mix 2008 Loan Book1 (in NT$ bn or %) % of Loan Book1 Item 2007 2008 Change 1,150.3 Consumer 29.2% 28.1% - 1.1% +8.6% Mortgage 28.4% 27.4% - 1.0% 1,059.2 Other Consumer Loan 0.8% 0.7% - 0.1% Corporate Banking 70.8% 71.9% + 1.1% Commercial Loan 42.6% 40.3% - 2.3% F/X Loan 17.4% 18.5
Slide 19: Major Exposures to Specific Industries
Major Exposures to Specific Industries % of Loan to industries Total Domestic Loan Bal.1: 1,033,229 mn Manufacturing Real Estate 28.27% Tech. 7.72% 2.86% Tech. Petro-chemical 7.72% TFT-LCD DRAM 5.91% 2.19% 1.45% Petro-chemical 5.91% Construction 2.13% 1.OBU and overseas balance excluded 2.Unaudited
Slide 20: FCB 2008 Total Loan & NIM
FCB 2008 Total Loan & NIM Total Loan & LDR (in NT$ bn or % ) 84.68% 84.54% 83.89% Total Loan1 LDR2 82.34% 82.35% 82.93% 80.73% 77.85% 78.25% 78.94% 1,169.5 980.1 992.4 1,030.5 1,042.3 1,079.9 1,147.4 940.2 1,060.0 1,092.4 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Quarterly NII / Spread / NIM
Slide 21: FCB 2008 Net Fee Income Breakdown
FCB 2008 Net Fee Income Breakdown 2008 Cumulative Net Fee Income (in NT$ mn or %) % of Cumulative Net Fee Item 2007 2008 Change WM1 65.2% 46.6% - 18.6% 5,041 6,884 F/X 14.0% 21.0% +7.0% -26.8% Other 10.9.% 15.8% +4.9% Loan-related 6.8% 11.7% +4.9% Credit card 3.1% 4.9% +1.8% 2007 2008 Net Fee Income
Slide 22: FCB 2008 Cost-to-Income Ratio
FCB 2008 Cost-to-Income Ratio 1H08 Operating Expense (in NT$ mn ) 2008 Cumulative Operating Expense (in NT$ mn ) % of Cumulative Cost-to-Income Ratio 14,445 Item 2007 2008 Change Net Revenue 100.0% 100.0% +3.01% 14,023 Operating Expense - 39.0% - 44.3% +5.3% Provision - 16.9% - 21.9% +5.0% Income Ta
Slide 23: CAR & Credit Rating
FFHC CAR & Credit Rating 1 CAR & Credit Rating FFHC Group CAR & Credit Rating1 S & P: BBB- / A-3/ Stable Twn Ratings: twA+/twA-1/Stable Moody’s: Baa1 122.05% 119.35% 117.59% CAR 113.77% 120.21% 109.54% 107.81% 103.60% statutory ratio 100% 1H 05 2H 05 1H 06 2H 06 1H 07 2H 07 1H 08 2H08 FCB CAR & Cred
Slide 24: Appendix
Appendix
Slide 25: FFHC Consolidated Income Statement
FFHC consolidated Income Statement FFHC's Financial Results Summary FFHC Consolidated Income Statement Summary in NT$ million, NT$, or % Full Year Results 2008 Quarterly Year-over-Year Comparison 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Interest income 37,979 43,428 49,354 12,728 12,222 12,680 12
Slide 26: FFHC Non-consolidated Income Statement
FFHC Non-consolidated Income Statement FFHC Non-consolidated Income Statement Summary in NT$ million, NT$, or % Full Year Results 2008 Quarterly Year- over-Year Comparison 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Operating revenues Income from long-term investment 9,209 10,904 12,873 3,586 2,802
Slide 27: FFHC Balance Sheet
FFHC Balance Sheet FFHC Balance Sheet Summary in NT$ million or million shares Full Year Results 2008 Quarterly Year- over-Year Comparison 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Non-consolidated Balance Sheet Data Long-term investment 87,542 98,224 103,420 107,596 103,010 103,166 101,939 103,42
Slide 28: FFHC Key Ratios
FFHC Key Ratios FFHC Key Ratios Full Year Results 2008 Quarterly Year- over-Year Comparison 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change After-tax ROAA (Annualized ratio) 0.93% 0.68% 0.79% 0.83% 0.73% 0.63% 0.42% 0.79% 0.42% -46.8% After-tax ROAE (Annualized ratio) 16.73% 11.08% 12.11% 12.81% 12.34%
Slide 29: FCB Income Statement
FCB Income Statement FB Income Statement Summary in NT$ million or % Full Year Results 2008 Quarterly Year-over-Year Comparison 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Net revenue Net interest income 20,381 21,941 6,002 5,921 6,047 5,984 21,941 23,954 9.17% Net fee income 4,495 6,884 1,288 1,560 1,27
Slide 30: FCB Balance Sheet
FCB Balance Sheet FB Balance Sheet Summary in NT$ million or % Full Year Results 2008 Quarterly Year-over-Year Comparison 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Assets Cash/due from banks 178,988 165,118 169,775 169,313 199,407 179,084 165,118 179,084 8.46% Fin. Assets measured 42,795 37,202 37,856
Slide 31: FCB Key Ratios
FCB Key Ratios FB Key Ratios Full Year Results 2008 Quarterly Year-over-Year Comparison 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Loan to deposit spread 2.22% 2.04% 1.98% 2.02% 1.96% 1.92% 1.91% 1.98% 1.91% -0.07% Net Interest Margin 1.51% 1.51% 1.50% 1.61% 1.59% 1.56% 1.55% 1.50% 1.55% 0.05% 1 Co
Slide 32: FCB Loan Quality
FCB Loan Quality FB NPL Migration in NT$ million or % Full Year Results 2008 Quarterly Year-over-Year Comparison 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change NPL- beginning 18,597 15,482 15,406 16,234 15,761 15,293 15,645 15,406 16,234 5.37% Net new NPL influx 769 3,557 5,738 446 415 1,297 4,262 5,73
Slide 33: First Sec Operating Report
First Sec Operating Report First Sec Financial Results Summary in NT$ million or % Full Year Results 2008 Quarterly Year-over-Year Comparison 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change First Sec Income Statement Summary Total operating income Brokerage commission 758 943 1,294 235 248 181 126 1,294
Slide 34: FSITC Operating Report
FSITC Operating Report FSITC Income Statement Summary in NT$ million or % Full Year Results 2008 Quarterly Year-over-Year Comparison 2005 2006 2007 Q1 Q2 Q3 Q4 2007 2008 Change Total operating income Management fee 522 553 600 136 130 104 74 600 444 -26.00% Sales service fee 6 9 13 1 1 1 1 13 4 -69.
Slide 35: First-Aviva Operating Report
First –Aviva Operating Report First-Aviva Financial Results Summary in NT$ million or % 2008 Quarterly 2008 Q1 Q2 Q3 Q4 Total Income Statement Summary Operating Revenue 908 3,596 4,368 2,778 11,650 Premium income 935 3,554 4,374 2,744 11,607 Other insurance income 0 28 (4) 2 26 Net Investment Income
First Financial Holding — Q4 2008 Earnings Presentation on 6ix