O-bank Co. Ltd. · TWSE:2897
O-bank — QIC 15th Taiwan CEO Week (2024)
50 slides from O-bank's conference presentation, 2024
Slide 1: O-Bank 2023 Business Review
Security Code：2897.TW O-Bank 2023 Business Review QIC 15th 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 Operation Highlights Agenda 03 2023 Financial Results 04 Key Strategic Focuses Appendix: Financial Summary of 05 O-Bank and Its Main Subsidiaries 2
Slide 4: Introduction of O-Bank
@ e> Noe 01 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 Participated for the first time in the Carbon Disclosure As of the end of March 2024, O-Bank scored 7.6, ranked No.1 Project (CDP) assessment in 2023 and achieved an among Taiwan’s financial institutions, No.2 among all listed exemplary "A-" score, attaining the Leadership Level.
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 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: Operation Highlights
02 2023 Operation Highlights 12
Slide 14: 2023 Operation Highlights
02 2023 Operation Highlights 1 Operating Performance NTD million 2022 YoY O-Bank 2023 2022 YoY Excluding the Excluding the One-Off Gain One-Off Gain Consolidated Net 9,544 12,121 -21% 8,907 7% Revenues Consolidated Net Profits 3,426 5,808 -41% 2,778 23% After Tax Standalone Net Revenues 6,867 9,064
Slide 15: 2023 Consolidated Net Profits After Tax Compositions
02 2023 Consolidated Net Profits After Tax Compositions: O-Bank Net Profit Compositions NT $ million (by Business Unit) 2023 FY 1,289 129 223 155 (6) 3,426 3,426 13 1,623 O-Bank CBF IBT Holdings Venture Capital Infinite Finance Sunshine Other Consolidated Consolidated *2 (holding Business Consumer s
Slide 16: 2023 Standalone Net Profits After Tax Compositions
02 2023 Standalone Net Profits After Tax Compositions: O-Bank Net Profit Compositions NT $ million (by Business Unit) 2023 FY (6) 2,492 119 223 13 155 2,492 366 1,623 O-Bank CBF IBT Holdings Venture Capital Infinite Finance Sunshine Other Standalone Standalone (holding Business *2 Consumer subsidiar
Slide 17: Capital Adequacy and Asset Quality
02 Capital Adequacy and Asset Quality As of the end of 2023, O-Bank’s BIS Ratio was 13.97%, Capital Tier1 Capital Ratio was 12.54%, and CET1 Ratio was 12.36%. Adequacy O-Bank maintained a healthy capital adequacy. As of the end of 2023, O-Bank’s NPL ratio was 0.09% and loan Asset loss coverage ratio
Slide 18: Financial Results
03 2023 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 $ billion NT $ million Total Assets Net Profit Total Assets to Parent Company YoY+23.31% * Net Profit Attributable to Parent Bank Growth Rate YoY+24.34% * 8.56% 5,808 2.62% -0.20% -0.06% 0.39% 627 5,034 561 575 575 577 3,426 3,200 2,778
Slide 21: Consolidated Financial Results
03-1 Consolidated Financial Results Net Profit Compositions NT $ million 2023 FY 9,544 4,029 3,426 -4,618 -897 -603 Net Revenue Operating Expense Provision Profit before Tax Tax & Income(loss) Net Profit from discontinued operations YoY +7.15% *1 -1.98% *1 +47.51% *1 +12.31% *1 -25.49% *1 +23.31% *1
Slide 22: Consolidated Financial Results
03-1 Consolidated Financial Results Net Revenue Breakdown NT $ million One-off Gain Others Gains on financial assets or liabilities measured at fair value / Foreign exchange gain(loss) Net Fee Income Net Interest Income 12,121 3,214 26.5% 9,544 9,315 8,907 589 6.2% 8,312 725 7.8% 8,056 479 4.0% YoY
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 Share of profit of associates subsidiaries One-off Gain YoY+24.34%*2 Net Profit before Tax from Bank Net Profit 5,242 5,034 YoY 3,030 2,801 +26.64%*2 2,492 2,015 2,212 869 -31.06% 2,004
Slide 25: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank ROE & ROA NIM & Spread ROE Spread ROE(excl. one-off gain) NIM ROA 13.59% ROA(excl. one-off gain) 1.71% 1.69% 1.53% 1.45% 1.41% 5.64% 6.41% 0.95% 5.12% 0.78% 0.81% 0.74% 0.76% 3.37% 1.50% 3.33% 0.57% 0.60% 0.35% 0.67% 0.33% 2019 2020 2021 2022 2023 2019 2020
Slide 26: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank Net Revenue Breakdown One-off Gain NT $ million Others Share of profit of associates subsidiaries and accounted for using equity method Gains on financial assets or liabilities measured at fair value / Foreign exchange gain(loss) Net Fee Income 9,064 Net Int
Slide 27: Standalone Financial Results: O-Bank
03-2 Standalone Financial Results: O-Bank Cost/Income NT $ million NT $ Ratio EPS Operating Expense Operating Expense(excl. one-off exp.) Net Revenue Net Revenue(excl. one-off gain) YoY+26.09%*2 Cost Income Ratio(excl. one-off gain) Cost Income Ratio 64.18% 1.80 59.83% 54.83% 53.94% 52.74% 9,064 6,8
Slide 28: Standalone Financial Results: Loan & Deposit Balances
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 302 70.40% 279 67.57% 68.37% 65.56% 66.81% 302 251 253 238 96 32% 279 80 29% 47 19% 251 253 66 27% 42 18% 2
Slide 29: Standalone Financial Results: Loan Breakdown
03-2 Standalone Financial Results: O-Bank Loan Breakdown Loan Breakdown NT $ billion by Industry Corporate Loans Personal Loans Mortgages 207 189 Mortgages, 6.96% 176 166 Construction Personal Loan, Manufacturing, 159 engineering, 7.65% 17.48% 2.11% Medical care, Others, 5.03% 1.04% 174 Corporate fi
Slide 30: Standalone Financial Results: Asset Quality
03-2 Standalone Financial Results: O-Bank Asset Quality NT $ million NT $ million Loan Loss Reserve/NPL Loan Loss Reserve NPL LLR Ratio(Loan Loss Reserve/Total Loans) NPL Ratio 0.75% 1506.8% 0.42% 0.41% 353.6% 431.5% 0.35% 309.7% 183.1% 1.53% 1,325 0.09% 1.44% 1.43% 1.38% 1.31% 2,947 2,883 2,426 2,2
Slide 31: Standalone Financial Results: Capital Adequacy
03-2 Standalone Financial Results: O-Bank BIS (Capital Adequacy Ratio) Capital Adequacy Tier I CET1 14.71% 14.49% 14.00% 13.63% 13.97% 12.67% 13.51% 12.72% 12.54% 12.02% 12.36% 11.46% 12.09% 11.72% 11.34% 2019 2020 2021 2022 2023 Note: Data as of year end, 2019-2023. 30
Slide 32: Standalone Financial Results: Net Profit, EPS and BVPS
03-2 Standalone Financial Results: O-Bank Net Profit: NT $ million Net Profit EPS/BVPS: NT $ Book Value Per Share P/B Ratio 13.30 EPS One-off Gain EPS(excl. one-off gain) 12.45 12.26 12.02 11.75 1.80 0.77 0.67 0.74 0.63 0.57 5,034 3,030 0.87 0.63 0.69 0.45 0.41 2,004 2,492 1,841 1,100 1,147 2019 202
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% YoY+22.74% 1,578 194 YoY+23.86% 7.7% 2,015 1,645 2,019 176 1,301 1,289 8.7% 45.7% 463 1,245 1,192 22.9% 47.6% 1,168 983
Slide 35: Individual Financial Results: China Bills Finance Corp.
Individual Financial Results: 03-3 China Bills Finance Corp. Assets ROE, ROA & EPS ROE NT $ billion ROA Total Assets 7.28% 6.40% Outsanding Balances of Guarantee 5.28% 5.49% Growth Rate of Guarantee Balances 7.08% 4.38% 4.79% 0.83% 10.50% 0.76% -1.00% 0.63% 0.60% 229 -9.21% 0.48% 218 222 198 208 201
Slide 36: Individual Financial Results: China Bills Finance Corp.
Individual Financial Results: 03-3 China Bills Finance Corp. NPL & Reserve for CAR Guarantee Liabilities 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 1,371 1,325 13.74% 13.36% 13.39% 12.80% 12.70% 13.12% 12.65%
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 9.53% 13.7 YoY-64.12% 4.58% 0.47% 1.60% 12.3 11.6 -8.35% 35.4 36.3 9.5 32.5 32.6 33.1 34.2 35.3 32.4 29.9 30.3 4.2 2019 2020 2021 2022 2023
Slide 39: Individual Financial Results: EverTrust Bank
03-4 Individual Financial Results: EverTrust Bank Assets, Loans & ROE, ROA & EPS Deposits USD $ million ROE Total Assets Loans ROA 7.47% Deposits Growth Rate of Loans 5.96% 14.67% 5.47% 7.60% 4.86% 3.16% 3.37% -16.65% 1.87% 1.52% 1.20% 1.28% 0.99% 1,000 0.48% 995 945 871 839 2019 2020 2021 2022 2023
Slide 40: Individual Financial Results: EverTrust Bank CAR
03-4 Individual Financial Results: EverTrust Bank NPL Ratio & CAR Coverage Ratio 12974% Coverage Ratio 9852% 5505% 30.47% 29.03% 29.24% 22.48% 51% 87% 19.61% 2019 2020 2021 2022 2023 NPL Ratio 4.27% 2.74% 2019 2020 2021 2022 2023 0.01% 0.01% 0.03% 2019 2020 2021 2022 2023 Note: Data as of year end,
Slide 41: Key Strategic Focuses
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Slide 42: "Boutique Digital Bank" Strategy: Dig Deep
04 “Boutique Digital Bank” Strategy Grow Light-Capital Optimize Deposits Businesses Structure Strengthen sales of products Focus on cultivating small that utilize zero or low business and retail deposits to risk-weighted capital to improve the efficiency of Dig Deep improve the quality of profit ass
Slide 43: "Boutique Digital Bank" Strategy
04 “Boutique Digital Bank” Strategy Grow Light-Capital ⚫ Strengthen corporate banking services platform, with a focus on low risk- weighted capital products such as TMU and trade financing. Businesses ⚫ Enhance wealth management services platform by enriching product offerings Strengthen sales of pr
Slide 44: "Boutique Digital Bank" Strategy
04 “Boutique Digital Bank” Strategy ⚫ Leveraging resources in all of O-Bank Group, explore business and investment Accelerate Overseas opportunities in Australia and Southeast Asia, for more diversified assets Expansion allocation and robust profit structure. Extend O-Bank Group’s footprint to ⚫ Est
Slide 45: Strategic Investment Portfolio Business Overview
04 Strategic Investment Portfolio Business Overview Beijing Sunshine Beijing Sunshine Consumer Finance (Investment under Equity Method) • Deepen B2B2C collaboration Infinite Finance with various scenario-based platforms to bolster the consumer finance ecosystem and improve profit structures. • Furth
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) 4Q23 3Q23 2Q23 1Q23 2023 2022 YoY Income Statement Interest income 2,728 3,081 2,619 2,321 10,749 5,812 85% Interest expense (2,171) (2,418) (2,045) (1,810) (8,444) (3,044) 177% Net interest income 558 662 574 511 2,305 2,768 -17% Fee income 207 232 180 295 91
Slide 49: CBF-Financial Summary
CBF-Financial Summary (NT $ million) 4Q23 3Q23 2Q23 1Q23 2023 2022 YoY Income Statement Interest income 864 801 743 726 3,135 2,047 53% Interest expense (803) (751) (695) (640) (2,890) (1,207) 139% Net interest income 60 50 49 86 245 839 -71% Fee income 303 322 323 363 1,311 1,168 12% Other income (
Slide 50: ETB-Financial Summary
ETB-Financial Summary (USD $ thousand) 4Q23 3Q23 2Q23 1Q23 2023 2022 YoY Income Statement Interest income 12,644 13,399 12,529 11,674 50,246 35,491 42% Interest expense (4,526) (4,218) (3,559) (2,596) (14,899) (3,130) 376% Net interest income 8,118 9,181 8,970 9,078 35,347 32,361 9% Fee income 223 5