Consolidated Financial Statements for the Six Months Ended June 30, 2024

June 30, 2024

December 31, 2023

June 30, 2023

ASSETS

Amount

%

Amount

%

Amount

%

ASSETS

Cash and cash equivalents (Notes 6 and 38)

$

6,570,820

1

$

6,855,577

1

$

7,676,337

1

Due from the Central Bank and other banks (Notes 7 and 38)

43,783,923

5

41,011,820

5

32,974,456

4

Financial assets at fair value through profit or loss (Notes 8, 38, 42 and 43)

42,403,048

5

40,846,407

5

46,065,594

6

Financial assets at fair value through other comprehensive income (Notes 9, 11,

21, 28, 39, 42 and 43)

60,687,963

8

64,259,784

8

78,948,692

10

Investment in debt instruments at amortized cost, net (Notes 10, 11, 21, 39, 42

and 43)

135,882,504

17

132,436,004

17

117,477,310

15

Securities purchased under resale agreements, net (Notes 12 and 43)

3,798,579

1

2,240,685

-

2,267,110

-

Receivables, net (Notes 13 and 43)

19,170,072

2

19,208,528

3

19,135,413

3

Discounts and loans, net (Notes 14, 38 and 43)

482,435,844

59

467,728,161

59

468,095,569

59

Investment accounted for using equity method (Notes 15 and 28)

2,709,394

-

2,735,151

-

1,936,206

-

Other financial assets, net (Notes 16 and 39)

8,932,490

1

6,817,244

1

6,996,213

1

Property and equipment, net (Notes 17 and 38)

5,151,711

1

5,139,531

1

5,097,768

1

Right-of-use assets, net (Notes 18 and 38)

1,029,138

-

1,089,010

-

881,345

-

Intangible assets, net (Note 19)

1,559,446

-

1,572,187

-

1,584,929

-

Deferred tax assets (Note 4)

119,230

-

174,527

-

129,532

-

Other assets

349,554

-

389,876

-

387,783

-

TOTAL

$

814,583,716

100

$

792,504,492

100

$

789,654,257

100

LIABILITIES AND EQUITY

LIABILITIES

Due to the Central Bank and other banks (Notes 20 and 43)

$

2,482,473

1

$

1,489,494

-

$

3,918,263

1

Funds borrowed from the Central Bank and other banks (Notes 43 and 45)

533,333

-

133,333

-

-

-

Financial liabilities at fair value through profit or loss (Notes 8, 38, 42 and 43)

9,059,029

1

8,397,692

1

9,091,859

1

Securities sold under repurchase agreements (Notes 9, 10, 21, 43 and 45)

713,626

-

1,255,766

-

-

-

Payables (Notes 22 and 43)

8,861,311

1

5,830,924

1

6,861,715

1

Current tax liabilities (Note 4)

187,890

-

158,386

-

163,891

-

Deposits and remittances (Notes 23, 38 and 43)

674,412,227

83

660,747,761

84

653,538,839

83

Bank debentures (Notes 24, 42, 43 and 45)

14,401,900

2

16,901,900

2

20,901,900

3

Principal received on structured products (Note 43)

40,821,084

5

34,139,735

5

33,655,586

4

Other financial liabilities (Notes 25, 43 and 45)

1,438,718

-

2,128,161

-

3,288,127

-

Provisions (Notes 26 and 38)

633,411

-

762,463

-

700,677

-

Lease liabilities (Notes 18, 38, 43 and 45)

1,042,013

-

1,108,714

-

889,428

-

Other liabilities (Note 4)

443,204

-

575,351

-

535,516

-

Total liabilities

755,030,219

93

733,629,680

93

733,545,801

93

EQUITY ATTRIBUTABLE TO OWNERS OF THE BANK (Notes 9, 15 and 28)

Share capital

Ordinary shares

40,694,838

5

40,694,838

5

40,694,838

5

Reserve for capitalization

2,059,159

-

-

-

-

-

Total share capital

42,753,997

5

40,694,838

5

40,694,838

5

Capital surplus

302,926

-

302,926

-

302,926

-

Retained earnings

Legal reserve

13,510,272

2

12,304,518

2

12,304,518

2

Special reserve

164,485

-

1,711,795

-

1,711,795

-

Unappropriated earnings

2,655,097

-

4,019,297

-

2,030,802

-

Total retained earnings

16,329,854

2

18,035,610

2

16,047,115

2

Other equity

166,720

-

(158,562)

-

(936,423)

-

Total equity

59,553,497

7

58,874,812

7

56,108,456

7

TOTAL

$

814,583,716

100

$

792,504,492

100

$

789,654,257

100

For the Three Months Ended June 30

For the Six Months Ended June 30

2024

2023

2024

2023

Amount

%

Amount

%

Amount

%

Amount

%

INTEREST REVENUES

(Notes 29 and 38)

$ 4,955,796

154

$ 4,493,096

134

$ 9,671,686

148

$ 8,638,656

135

INTEREST EXPENSES

(Notes 18, 29 and 38)

3,471,817

108

2,813,919

84

6,706,559

103

5,257,475

82

NET INTERESTS

1,483,979

46

1,679,177

50

2,965,127

45

3,381,181

53

NET REVENUES AND GAINS

OTHER THAN INTEREST

Net service fee income

(Notes 30 and 38)

763,832

24

658,705

20

1,558,572

24

1,298,666

20

Gain on financial assets and

liabilities at fair value

through profit or loss

(Notes 31, 38 and 42)

740,014

23

739,595

22

1,550,242

24

1,324,425

21

Realized gain on financial

assets at fair value through

other comprehensive income

(Notes 9, 28 and 42)

68,897

2

104,705

3

72,626

1

104,710

1

Net foreign exchange gain

47,415

2

80,212

2

146,827

2

121,674

2

Shares of profit of associates

for using equity method

(Note 15)

44,989

1

30,579

1

86,943

1

55,196

1

Others

77,148

2

65,165

2

163,094

3

127,995

2

Total net revenues and

gains other than interest

1,742,295

54

1,678,961

50

3,578,304

55

3,032,666

47

NET REVENUES

3,226,274

100

3,358,138

100

6,543,431

100

6,413,847

100

NET PROVISION FOR

(REVERSAL OF) POSSIBLE

LOSS ON BAD DEBTS

EXPENSE, COMMITMENT

AND GUARANTEE

(Notes 13, 14, 16, 26 and 38)

(19,228)

(1)

144,687

4

(103,768)

(2)

515,527

8

OPERATING EXPENSES

Employee benefits expense

(Notes 4, 27, 32, 33 and 38)

1,165,456

36

1,104,815

33

2,402,218

37

2,109,597

33

Depreciation and amortization

(Notes 17, 18, 19 and 34)

186,033

6

183,808

5

371,797

6

367,776

5

Other general and

administrative expenses

(Notes 18, 35 and 38)

575,049

18

562,649

17

1,128,377

17

1,080,894

17

Total operating expenses

1,926,538

60

1,851,272

55

3,902,392

60

3,558,267

55

INCOME BEFORE INCOME

TAX

1,318,964

41

1,362,179

41

2,744,807

42

2,340,053

37

INCOME TAX EXPENSE

(Notes 4 and 36)

149,833

5

171,233

5

334,348

5

299,809

5

NET INCOME FOR THE

PERIOD

1,169,131

36

1,190,946

36

2,410,459

37

2,040,244

32

For the Three Months Ended June 30

For the Six Months Ended June 30

2024

2023

2024

2023

Amount

%

Amount

%

Amount

%

Amount

%

OTHER COMPREHENSIVE

INCOME (LOSS) (Notes 9, 11,

15, 28, 36 and 42)

Items that will not be

reclassified subsequently to

profit or loss:

Gain (loss) on valuation of

investments in equity

instruments at fair value

through other

comprehensive income

$

(22,128)

-

$

180,937

5

$

324,694

5

$

379,799

6

Share of other

comprehensive income

(loss) of associates for

using equity method

(315)

-

(2,355)

-

1,277

-

(1,341)

-

(22,443)

-

178,582

5

325,971

5

378,458

6

Items that may be reclassified

subsequently to profit or loss

Exchange differences on

translating foreign

operations

22,162

1

13,785

1

103,979

2

1,660

-

Share of other

comprehensive income

(loss) of associates for

using equity method

(30,184)

(1)

10,787

-

(39,785)

(1)

34,685

1

Gain (loss) on investments in

debt instruments measured

at fair value through other

comprehensive income

(50,178)

(2)

98,449

3

(57,170)

(1)

338,923

5

Income tax benefit (expense)

relating to items that may

be reclassified

subsequently

(1,850)

-

7,220

-

(5,610)

-

6,165

-

(60,050)

(2)

130,241

4

1,414

-

381,433

6

Other comprehensive to

profit or loss income

(loss) for the period

(82,493)

(2)

308,823

9

327,385

5

759,891

12

TOTAL COMPREHENSIVE

INCOME FOR THE PERIOD

$

1,086,638

34

$

1,499,769

45

$

2,737,844

42

$

2,800,135

44

NET INCOME

ATTRIBUTABLE TO:

Owners of the Bank

$

1,169,131

36

$

1,190,946

36

$

2,410,459

37

$

2,040,244

32

TOTAL COMPREHENSIVE

INCOME ATTRIBUTABLE

TO:

Owners of the Bank

$

1,086,638

34

$

1,499,769

45

$

2,737,844

42

$

2,800,135

44

EARNINGS PER SHARE

(Note 37)

Basic

$

0.29

$

0.29

$

0.59

$

0.50

Diluted

$

0.29

$

0.29

$

0.59

$

0.50

The accompanying notes are an integral part of the consolidated financial statements.

(Concluded)

Equity Attributable to Shareholders of the Parent

Others

Unrealized Gain

(Loss) on

Financial Assets

Exchange

at Fair Value

Differences on

Through Other

Share Capital (Note 28)

Retained Earnings (Notes 9 and 28)

Translating

Comprehensive

Reserve for

Capital Surplus

Unappropriated

Foreign

Income (Notes 9,

Ordinary Shares

Raising Capital

(Note 28)

Legal Reserve

Special Reserve

Earnings

Operations

15 and 28)

Total Equity

BALANCE AT JANUARY 1, 2023

$ 40,694,838

$

-

$

302,926

$ 11,206,638

$

5,922

$

4,467,881

$

(146,915)

$

(1,558,957)

$ 54,972,333

Appropriation of the 2022 earnings

Legal reserve

-

-

-

1,097,880

-

(1,097,880)

-

-

-

Special reserves

-

-

-

-

1,705,873

(1,705,873)

-

-

-

Cash dividends - NT$0.4089 per share

-

-

-

-

-

(1,664,012)

-

-

(1,664,012)

-

-

-

1,097,880

1,705,873

(4,467,765)

-

-

(1,664,012)

Net income for the six months ended June 30, 2023

-

-

-

-

-

2,040,244

-

-

2,040,244

Other comprehensive income for the six months ended June 30, 2023

-

-

-

-

-

-

7,825

752,066

759,891

Total comprehensive income for the six months ended June 30, 2023

-

-

-

-

-

2,040,244

7,825

752,066

2,800,135

Disposal of investments in equity instruments at fair value through other

comprehensive income (loss)

-

-

-

-

-

(9,558)

-

9,558

-

BALANCE AT JUNE 30, 2023

$ 40,694,838

$

-

$

302,926

$ 12,304,518

$

1,711,795

$

2,030,802

$

(139,090)

$

(797,333)

$ 56,108,456

BALANCE AT JANUARY 1, 2024

$ 40,694,838

$

-

$

302,926

$ 12,304,518

$

1,711,795

$

4,019,297

$

(167,411)

$

8,849

$ 58,874,812

Appropriation of the 2023 earnings

Legal reserve

-

-

-

1,205,754

-

(1,205,754)

-

-

-

Special reserve

-

-

-

-

(1,547,310)

1,547,310

-

-

-

Cash dividends - NT$0.5060 per share

-

-

-

-

-

(2,059,159)

-

-

(2,059,159)

Share dividends - NT$0.5060 per share

-

2,059,159

-

-

-

(2,059,159)

-

-

-

-

2,059,159

-

1,205,754

(1,547,310)

(3,776,762)

-

-

(2,059,159)

Net income for the six months ended June 30, 2024

-

-

-

-

-

2,410,459

-

-

2,410,459

Other comprehensive income for the six months ended June 30, 2024

-

-

-

-

-

-

98,369

229,016

327,385

Total comprehensive income for the six months ended June 30, 2024

-

-

-

-

-

2,410,459

98,369

229,016

2,737,844

Disposal of investments in equity instruments at fair value through other

comprehensive income (loss)

-

-

-

-

-

2,103

-

(2,103)

-

BALANCE AT JUNE 30, 2024

$ 40,694,838

$

2,059,159

$

302,926

$ 13,510,272

$

164,485

$

2,655,097

$

(69,042)

$

235,762

$ 59,553,497

For the Six Months Ended

June 30

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES

Income before income tax

$ 2,744,807

$

2,340,053

Adjustments for:

Depreciation

359,056

355,035

Amortization

12,741

12,741

Provision for loss on bad debts expense, commitment and guarantee

242,673

748,501

Net valuation gain on financial assets and liabilities at fair value

through profit or loss

(13,033)

(73,187)

Interest expenses

6,706,559

5,257,475

Interest revenues

(9,671,686)

(8,638,656)

Dividend revenue

(73,307)

(105,676)

Shares of profit from associates

(86,943)

(55,196)

Unrealized net foreign exchange gain on assets and liabilities other

than foreign currency cash and cash equivalents

(32,730)

(29,615)

Other adjustments

890

2,091

Changes in operating assets and liabilities

Increase in due from the Central Bank and other banks

(188,923)

(1,059,286)

Decrease (increase) in financial assets at fair value through profit

or loss

(575,964)

963,260

Decrease (increase) in financial assets at fair value through other

comprehensive income

4,697,820

(1,305,107)

Increase in investments in debt instruments at amortized cost

(2,593,885)

(16,426,802)

Decrease in receivables

2,200,399

117,262

Increase in discounts and loans

(11,727,174)

(30,040,278)

Increase in other financial assets - financial transaction margin

(1,614,480)

(833,050)

Increase in due from the Central Bank and other banks

895,750

2,313,788

Increase in financial liabilities at fair value through profit or loss

547,861

360,456

Increase (decrease) in payables

608,341

(802,893)

Increase in deposits and remittances

5,538,592

44,363,419

Increase in principal received on structured products

6,330,942

1,759,409

Increase (decrease) in other financial liabilities - financial

transaction margin

(317,444)

87,123

Decrease in provisions for employee benefits

(26,401)

(61,738)

Decrease in other liabilities

(160,641)

(42,696)

Cash generated from (used in) operations

3,803,820

(793,567)

Interest received

9,698,752

8,548,339

Dividends received

13,733

11,210

Interest paid

(6,445,901)

(4,563,772)

Income tax paid

(253,166)

(384,847)

Net cash generated from operating activities

6,817,238

2,817,363

(Continued)

For the Six Months Ended

June 30

2024

2023

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of property and equipment

$

(166,420)

$

(487,844)

Proceeds from disposal of property and equipment

28

35

Increase in other financial assets

(332,410)

(1,327,962)

Decrease (increase) in other assets

40,685

(117,053)

Dividends received from associates

74,192

38,381

Net cash used in investing activities

(383,925)

(1,894,443)

CASH FLOWS FROM FINANCING ACTIVITIES (Note 45)

Increase in funds borrowed from the Central Bank and other banks

400,000

-

Repayments of bank debentures

(2,500,000)

-

Decrease in securities sold under repurchase agreements

(602,111)

(4,575,956)

Repayments of the principal portion of lease liabilities

(211,019)

(208,198)

Increase (decrease) in other financial liabilities

(374,119)

466,685

Net cash used in financing activities

(3,287,249)

(4,317,469)

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH

EQUIVALENTS

710,253

277,339

NET INCREASE (DECREASE) IN CASH AND CASH

EQUIVALENTS

3,856,317

(3,117,210)

CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD

33,369,904

28,933,031

CASH AND CASH EQUIVALENTS, END OF THE PERIOD

$

37,226,221

$

25,815,821

December 31,

June 30, 2024

2023

June 30, 2023

Cash and cash equivalents in consolidated balance

sheets

$

6,570,820

$

6,855,577

$

7,676,337

Due from the Central Bank and other banks that meet

the IAS 7 definition of "cash and cash equivalents"

26,856,822

24,273,642

15,872,374

Securities purchased under resale agreements that

meet the IAS 7 definition of "cash and cash

equivalents"

3,798,579

2,240,685

2,267,110

Cash and cash equivalents in consolidated statements

of cash flows

$

37,226,221

$

33,369,904

$

25,815,821

The accompanying notes are an integral part of the consolidated financial statements.

(Concluded)

Effective Date

New, Amended and Revised Standards and Interpretations

Announced by IASB

Amendments to IAS 21 "Lack of Exchangeability"

January 1, 2025 (Note)