Far Eastern International Bank · TWSE:2845
Far Eastern International Bank — Q2 2023 Earnings Presentation
22 slides from Far Eastern International Bank's earnings presentation, Sep 8, 2023
Slide 1: Investor Conference 2Q'2023
Investor Conference 2Q’2023 9/8’2023
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$3,153 Bn. (2Q’23) Petrochemical & energy Polyester & synthetic fiber Cement & building material Retail & department store Financial services – 11 companies in oper
Slide 3: Contents
Contents Financial Highlights Key Strategies 3
Slide 4: Highlights
Highlights Profitability Consecutive double-digit YOY growth in IBT Asset Quality Improving NPL %, down to industry-avg. level Risk Management Tightening overseas exposure, especially for China market Digitalization ChatGPT AI testing in management 4
Slide 5: Assets & Net Worth
Assets & Net Worth Assets Net Worth (NT$Bn) (NT$Bn) YoY YoY 4.1% YoY +2.4% YoY +16.2% 790 759 +10.6% 723 741 36 35 41 55 56 36 33 69 51 44 50 48 245 216 16 16 225 228 14 14 0 439 468 41 41 407 438 36 36 -2 -2 -1 YE'21 YE'22 6/30'22 6/30'23 YE'21 YE'22 6/30'22 6/30'23 Loan Investment Cash &
Slide 6: Loans & Deposit
Loans & Deposit Gross Loan Deposit (NT$Bn) (NT$Bn) YoY YoY YoY +6.7% YoY +4.2% +7.6% -0.8% 474 654 627 444 444 612 607 413 99 12% 14% 96 94 13% 13% 11% 8% 93 11% 9% 147 36% 146 145 36% 34% 144 34% 59 54 58 50 64 45 60 56 42% 42% 43% 42% 81 88 91 104 YE'21 YE'22 6/30'22 6/30'23 YE'21 YE'22 6/30'2
Slide 7: Liquidity
Liquidity Demand Deposit ratio 37.02% 36.33% Gross loan-to-deposit ratio 33.12% 73.12% 73.05% 29.65% 70.91% 72.57% 70.18% 71.44% 69.68% YE'2021 6/30'22 YE'2022 6/30'23 67.49% Liquidity coverage ratio 142.22% 136.00% 128.28% 112.03% YE'2021 6/30'22 YE'2022 6/30'23 By balance By average bala
Slide 8: Asset Quality
Asset Quality NPL Ratio NPL Coverage Ratio Loan Coverage Ratio 0.36% 907% 1.39% 827% 859% 773% 0.27% 1.35% 0.23% 0.22% 496% 1.36% 1.36% 1.32% 1.32% 568% 587% 0.18% 1.32% 0.16% 0.15% 0.16% 392% 1.29% Dec'21 YE’21 Jun'22 6/30’22 Dec'22 YE’22 Jun'23 6/30’23 Dec'21 YE’21 Jun'22 6/30’22 Dec'22 YE’2
Slide 9: Revenue & Profit Before Provision
Revenue & Profit Before Provision Revenue PPOP (NT$Bn) (NT$Bn) YoY YoY YoY YoY +8.8% +16.8% +15.0% +29.0% 11.7 % 10.8 0.4 0.1 1.8 6.4 1.1 4.7 2.9 5.5 0.2 4.1 3.2 2.5 0.2 0.4 1.6 +279% 2.2 1.5 1.3 (11.5%) 6.4 7.0 3.4 3.4 2021 2022 Y-T-Jun'22 Y-T-Jun'23 2021 2022 Y-T-Jun'22 Y-T-Jun'23 NII Fee
Slide 10: Interest Margin & Fee Income
Interest Margin & Fee Income Interest Margin Fee Income (NT$Bn) YoY -20.1% YoY 1.42% -11.5% 1.39% 1.37% 1.36% 3.2 L-D Spread 0.7 2.5 1.01% 1.04% 1.01% NIS 0.97% 0.7 1.5 1.3 0.5 0.3 (40.6%) 2.5 1.01% 0.99% 1.02% 1.8 NIM 0.94% 1.0 1.0 +3.1% 2021 2Q'22 2022 2Q'23 2021 2022 Y-T-Jun'22 Y-T-Jun'23 R
Slide 11: Trading Income
Trading Income Trading Income -98 (NT$Mil.) +71 +833 1,551 +228 +108 409 Y-T-Jun'22 Stocks Bonds Credit Deriviates FX FX SPOT Y-T-Jun'23 Deriviates Other OCI -797 -1,559 +762 Jan Jan 01'22 01’23 Other OCI Y-T-Jun'23 11 Source: Consolidated number / Management report
Slide 12: Provision & Income before tax
Provision & Income before tax Provision Cost IBT (NT$Bn) (NT$Bn) YoY YoY YoY YoY +26.9% +21.5% -33.1% +78.8% 4.2 3.3 2.3 1.9 Net Net 0.8 0.5 1.2 Net 1.0 Net 0.5 0.3 0.7 0.6 0.4 0.5 0.3 0.2 2021 2022 Y-T-Jun'22 Y-T-Jun'23 2021 2022 Y-T-Jun'22 Y-T-Jun'23 Gross Provision cost Recovery Net Pro
Slide 13: Net Profitability
Net Profitability ROA ROE 0.54%* 7.34%* 7.03% 0.50% 6.74%* 0.44%* 5.97% 0.42% 2021 Y-T-Jun'22 2022 Y-T-Jun'23 2021 Y-T-Jun'22 2022 Y-T-Jun'23 * Annualized 13 Source: :Consolidated number
Slide 14: Capital Adequacy
Capital Adequacy CET1 (unconsolidated) BIS (unconsolidated) (NT$Bn) 20% 600 482 14.90% 473 459 14.37% 500 13.95% 429 13.41 % 15% 400 10% 11.63% 11.25% 300 10.87% 9.85% 200 12.26% 11.85% 11.30% 10.46% 5% 55 56 100 47 48 0% 0 YE'2021 6/30'22 YE'2022 6/30'23 YE'2021 6/30'22 YE'2022 6/30'23 CET1
Slide 15: Contents
Contents Financial Highlights Key Strategies 15
Slide 16: Risk Management
Risk Management Offshore lending Tightening China market selection, for Strong central-government ownership support Industry leaders Referred by solid & reputable PE fund 18% 27% 6/30’22 6/30’23 16
Slide 17: Digital Innovation
Digital Innovation Physical Virtual (As at Jun.’23) Bankee AI customer service (Xiaole) Customers #: 36% - transfer 194,496 rate With cross- Deposit : selling initiative ~NT$ 14Bn. (~2% of total deposit) PoC of ChatGPT APP 2.0 AML application Personal loans 17
Slide 18: ESG Mission
ESG Mission Environmental Solar energy HR Asia awards building Best Companies To EP included in Work For (2022 & credit decision 2023) TCFD on FEIB Most Caring Social website Company Awards Governance Customer Fair Treatment evaluation Sustainable Development Policy Top 25% in bank
Slide 19: Appendix
fH, we mm ee C O Nn t e Nn t S ep Far Easter Int'l Bank Appendix
Slide 20: Financial Highlights
Contents (NT$ m, except percentages and per share data) As of or for 12 months ended (Consolidated) December 31 2021 2022 2Q'22 2Q'23 YoY Key balance sheet items Total assets 723,055 740,540 758,859 789,654 4.1% Gross loans 412,872 444,082 444,405 474,219 6.7% Deposits and remittances 612,107 607,42
Slide 21: Thank You
& PEC LiLes i Far Eastern Int'l Bank THANK YOU
Slide 22: 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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