Fubon Financial Holding Co., Ltd.TWSE: 2881

FHC Financial Statements(Consolidated) 2025 Q3

· Issued by Fubon Financial Holding Co., Ltd.

Stock Code:2881

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese)

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements With Independent Auditors' Review Report For the Nine Months Ended September 30, 2025 and 2024 Address: 15-16F., No.179, Liaoning St., Taipei City Telephone: (02)6636-6636

The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.

Table of contents

Contents Page

  1. Cover Page 1

  2. Table of Contents 2

  3. Independent Auditors' Review Report 3

  4. Consolidated Balance Sheets 4

  5. Consolidated Statements of Comprehensive Income 5

  6. Consolidated Statements of Changes in Equity 6

  7. Consolidated Statements of Cash Flows 7

  8. Notes to the Consolidated Financial Statements

    1. Company history 8～10

    2. Approval date and procedures of the consolidated financial statements 11

    3. New standards, amendments and interpretations adopted 11～18

    4. Summary of material accounting policies 18～22

    5. Significant accounting assumptions and judgments, and major sources of estimation uncertainty

      22～24

    6. Explanation of significant accounts 24～382

    7. Related-party transactions 382～454

    8. Pledged assets 455～457

    9. Commitments and contingencies 458～461

    10. Losses Due to Major Disasters 461

    11. Subsequent Events 461～462

    12. Other 462～487

    13. Other disclosures

      1. Information on significant transactions 487～510

      2. Information on investment in Mainland China 511～512

      3. Major shareholders 512～513

    14. Segment information 513～514

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Independent Auditors' Review Report

To the Board of Directors

Fubon Financial Holding Co., Ltd.:

Introduction

We have reviewed the accompanying consolidated balance sheets of Fubon Financial Holding Co., Ltd. and its subsidiaries as of September 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2025 and 2024, as well as the changes in equity and cash flows for the nine months ended September 30, 2025 and 2024, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Financial Holding Companies and International Accounting Standard 34, " Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standard on Review Engagements 2410, " Review of Financial Information Performed by the Independent Auditor of the Entity" of the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Fubon Financial Holding Co., Ltd. and its subsidiaries as of September 30, 2025 and 2024, and their consolidated financial performance for the three months and nine months ended September 30, 2025 and 2024, as well as their consolidated cash flows for the nine months ended September 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Financial Holding Companies and International Accounting Standard 34, " Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors' review report are LEE, FENG HUI and SHIH, WEI MING.

KPMG

Taipei, Taiwan (Republic of China) November 20, 2025

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.

4

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2025, December 31 and September 30, 2024

(Expressed in Thousands of New Taiwan Dollars)

September 30, 2025 December 31, 2024 September 30, 2024

Assets Amount % Amount % Amount %

September 30, 2025 December 31, 2024 September 30, 2024

Liabilities and Equity Amount % Amount % Amount % Liabilities:

11000

Cash and cash equivalents (note 6(a))

$ 405,376,543

3

379,050,189

3

325,367,201

3

21000

Deposits from the central bank and banks $

231,023,768

2

142,686,385

1

139,487,046

1

11500

Due from the central bank and call loans to banks (note 6(b))

471,722,962

4

440,314,252

4

454,543,323

4

21500

Due to the central bank and banks

969,461

-

1,341,114

-

-

-

12000

12150

Financial assets measured at fair value through profit or loss (note 6(c) and 8)

Financial assets measured at fair value through other comprehensive

1,845,605,308

935,124,221

15

8

1,863,630,999

733,541,220

15

6

1,848,317,836

736,203,593

16

6

22000

22300

Financial liabilities measured at fair value through profit or loss (note 6(c))

Financial liabilities for hedging (note 6(f))

98,351,969

17,771,124

-

1

105,790,101

19,124,183

-

1

79,448,011

15,279,905

-

1

income (notes 6(d) and 8)

22500

Securities sold under repurchase agreements (note 6(s))

65,477,624

1

64,379,975

1

78,064,799

1

12200

Debt investments measured at amortized cost (notes 6(e) and 8)

3,686,940,187

30

3,856,151,849

32

3,748,396,001

32

22600

Commercial papers issued, net (note 6(t))

59,343,136

-

88,331,474

1

85,186,735

1

12300

Financial assets for hedging (note 6(f))

8,764,726

-

14,986,278

-

11,400,207

-

23000

Payables (note 6(u))

284,985,681

2

231,041,142

2

229,852,628

2

12500

Securities purchased under resell agreements (note 6(g))

103,767,497

1

102,323,717

1

87,115,166

1

23200

Current tax liabilities

16,758,712

-

11,573,299

-

11,468,545

-

13000

Receivables, net (note 6(h))

438,020,471

4

403,483,429

3

401,806,888

3

23300

Liabilities related to assets classified as held for sale (note 6(i))

187,925

-

154,973

-

-

-

13200

Current tax assets

3,082,515

-

3,546,918

-

3,477,844

-

23500

Deposits and remittances (note 6(v))

4,627,155,025

37

4,447,223,581

37

4,275,813,935

36

13300

Assets classified as held for sale, net (notes 6(i) and 8)

4,108,409

-

3,590,521

-

3,610,678

-

24000

Bonds payable (notes 6(w))

453,090,681

4

360,530,634

3

324,054,610

3

13500

Discounts and loans, net (note 6(j))

3,313,839,962

27

3,063,157,625

25

2,982,226,297

25

24400

Other borrowings (note 6(x) and 8)

14,390,732

-

9,243,640

-

16,943,578

-

13700

Reinsurance contract assets, net (note 6(k))

43,400,353

-

38,420,772

-

40,759,005

-

24600

Provisions (notes 6(y))

4,821,976,522

39

4,826,219,473

40

4,779,705,986

41

15000

Investments accounted for using equity method, net (note 6(l))

61,714,664

-

60,641,958

1

61,187,557

1

25500

Other financial liabilities (note 6(m) and (z))

595,215,243

5

609,592,672

5

640,841,813

5

15500

Other financial assets, net (notes 6(m) and 8)

561,082,317

5

565,223,802

5

580,654,490

5

26000

Lease liabilities (note 6(p))

21,706,734

-

21,437,041

-

21,260,771

-

18000

Investment property, net (notes 6(n) and 8)

309,285,280

2

297,642,364

2

297,832,016

2

29300

Deferred tax liabilities

37,915,523

-

63,177,508

-

53,385,488

-

18500

Property and equipment, net (notes 6(o) and 8)

75,965,819

1

71,840,154

1

71,229,778

1

29500

Other liabilities (note 6(aa))

98,099,173

1

99,669,257

1

107,737,987

1

18600

Right-of-use assets, net (note 6(p))

14,268,359

-

13,960,568

-

13,943,939

- Total liabilities

11,444,419,033

92

11,101,516,452

92

10,858,531,837

92

19000

Intangible assets, net (note 6(q))

33,608,251

-

33,733,010

-

34,182,662

- Equity attributable to owners of parent (note 6(ac)):

19300

Deferred tax assets

35,758,829

-

59,484,052

1

52,692,695

- Share capital:

19500

Other assets, net (notes 6(r) and 8)

50,618,557

-

62,587,530

1

60,293,246

1

31101

Common stock

136,657,219

1

136,657,219

1

136,657,219

1

31103

Preferred stock

15,999,900

-

15,999,900

-

15,999,900

-

31107

Stock dividend to be distributed

3,416,430

-

-

-

-

-

Total share capital

156,073,549

1

152,657,119

1

152,657,119

1

31500

Capital surplus

155,002,666

1

159,094,995

1

158,533,954

2

Retained earnings:

32001

Legal reserve

117,866,081

1

102,304,910

1

102,304,910

1

32003

Special reserve

125,798,461

1

133,266,235

1

133,266,235

1

32011

Undistributed earnings

431,096,182

4

410,018,815

4

380,132,869

3

Total retained earnings

674,760,724

6

645,589,960

6

615,704,014

5

32500

Total other equity interest

(42,481,080)

-

(6,216,472)

-

14,080,077

-

Total equity attributable to owners of parent 943,355,859

8

951,125,602

8

940,975,164

8

39500 Non-controlling interests (note 6(ac)) 14,280,338

-

14,669,153

-

15,733,421

-

Total equity 957,636,197

8

965,794,755

8

956,708,585

8

Total assets $ 12,402,055,230 100 12,067,311,207 100 11,815,240,422 100 Total liabilities and equity $ 12,402,055,230

100

12,067,311,207

100

11,815,240,422

100

5

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and nine months ended September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

For the three months ended September 30 For the nine months ended September 30

2025 2024 2025 2024

Amount % Amount % Amount % Amount %

41000

Interest revenue (note 6(af)) $

76,443,720

61

77,318,813

110

227,484,212

96

227,082,960

93

51000

Less: Interest expenses (note 6(af))

29,067,662

23

31,918,512

45

87,698,261

37

92,632,853

38

Net interest revenue 47,376,058

38

45,400,301

65

139,785,951

59

134,450,107

55

Net non-interest revenue

49800 Net service charge and commissions (notes 6(m) and (af)) 1,029,187

1

(34,378)

-

(2,404,429)

(1)

(63,505)

-

49810

Net losses of insurance operations (notes 6(m) and (af))

4,610,078

4

(15,896,722)

(23) 12,184,484

5

(31,969,432)

(13)

49820

Gains on financial assets or liabilities measured at fair value through profit or loss (note 6(c))

107,752,054

86

40,049,417

57

178,844,738

75

125,683,889

51

49825

Gains (losses) on investment property (notes 6(n))

1,989,199

2

374,932

1

5,151,214

2

(2,650,029)

(1)

49835

Realized gains on financial assets measured at fair value through other comprehensive income

2,429,700

2

2,810,365

4

5,802,674

2

5,012,736

2

(note 6(d))

49850

Gains (losses) arising from derecognition of financial assets measured at amortized cost (note 6(e))

(201,625)

-

(303,422)

-

(288,498)

-

(799,092)

-

49870

Foreign exchange gains

38,663,007

31

(50,866,050)

(73) (141,656,459)

(60)

55,570,118

23

49880

Reversal gains (impairment losses) on assets

(41,356) -

58,685

-

(50,623)

-

(224,535)

-

49890

Share of profit of associates and joint ventures accounted for using equity method (note 6(l))

1,032,479

1

267,346

-

3,820,530

2

2,163,564

1

49898

Profits or losses reclassified by applying overlay approach (note 6(c))

(79,359,652)

(64)

50,091,849

72

39,283,989

17

(40,303,668)

(17)

49900

Net other non-interest revenue

(611,269) (1) (1,957,321)

(3) (3,036,320)

(1)

(2,860,912)

(1)

Net revenue 124,667,860

100

69,995,002

100

237,437,251

100

244,009,241

100

58100

Bad debt expenses and guarantee liability provisions

(3,694,474)

(3)

(3,509,643)

(5)

(8,254,977)

(4)

(8,817,188)

(4)

58300

Net change in provisions for insurance liabilities (note 6(af))

(52,217,154)

(42)

3,692,252

5

(55,366,039)

(23)

(31,961,348)

(13)

Operating expenses:

58501

Employee benefits expenses (note 6(af))

(12,391,873)

(10)

(11,608,716)

(17)

(36,373,459)

(15)

(33,968,841)

(14)

58503

Depreciation and amortization expenses (note 6(af))

(2,081,813)

(2)

(2,028,969)

(3)

(6,180,675)

(3)

(5,991,634)

(2)

58599

Other general and administrative expenses (note 6(af))

(9,417,296)

(8)

(9,422,394)

(13)

(26,512,510)

(11)

(26,591,597)

(11)

Total operating expenses (23,890,982)

(20)

(23,060,079)

(33)

(69,066,644)

(29)

(66,552,072)

(27)

Net income before tax from continuing operations

44,865,250

35

47,117,532

67

104,749,591

44

136,678,633

56

61003

Less: Income tax expenses (note 6(ab))

5,040,554

3

6,998,675

10

13,726,460

6

15,299,823

6

Net income

39,824,696

32

40,118,857

57

91,023,131

38

121,378,810

50

69500

Other comprehensive income (losses):

69560

Items not to be reclassified to profit or loss

69561 Gains (losses) on remeasurements of defined benefit plans (526) - 554

-

(8,080)

-

5,250

-

69562 Revaluation gains on property 841,429 1 3,807

-

934,469

-

105,352

-

69563 Share of other comprehensive income of associates and joint ventures accounted for using 13,757 - (4,946) -

(8,233) -

(10,169) -

equity method - components of other comprehensive income that will not be reclassified to profit or loss (note 6(l))

69565 Change in fair value of financial liability attributable to change in credit risk of liability (note

6(c))

69567 Unrealized gains (losses) on equity instruments measured at fair value through other comprehensive income

- -

2,530,636 1

87 -

87

-

(65) -

(1,494,959)

(2)

2,464,725 1 6,0

(365,494)

(1)

(488,867) -

33,475 2

69569 Income tax related to items not to be reclassified to profit or loss (note 6(ab)) (227,938) - (95,873) -

Subtotal of items not to be reclassified to profit or loss

3,157,358

2

(1,860,951)

(3)

2,893,949

1

6,038,122

2

69570

Items that may be subsequently reclassified to profit or loss

69571

Exchange differences on translation of foreign operations

4,307,390

3

1,385,160

2

(13,336,575)

(5)

10,053,875

4

(134,163)

-

(34,438)

13,068,772

19

13,457,186

179,681

-

19,086

69581 Gains (losses) on financial instruments for hedging (47,268) - - (63,331) -

69583 Unrealized gains (losses) on debt instruments measured at fair value through other comprehensive income

69575 Share of other comprehensive income of associates and joint ventures accounted for using

equity method - components of other comprehensive income that will be reclassified to profit or loss (note 6(l))

3,976,508 3

165,871 -

6 4,796,814 2

- 375,079 -

69578

Other components of other comprehensive income that will be reclassified to profit or loss

(1,842)

-

-

69579

Income tax related to items that may be subsequently reclassified to profit or loss (note 6(ab))

(3,011,291)

(2)

1,786,390

69590 Other comprehensive income reclassified by applying overlay approach 79,359,652 64 (50,091,849)

40,303,668 17

(72)

(39,283,989)

(17)

-

(4,338)

-

- -

3 124,107 - (7,157,259) (3)

Subtotal of items that may be subsequently reclassified to profit or loss 84,749,020

68

(33,806,009)

(48)

(39,058,961)

(16)

48,308,846

20

69500

Other comprehensive income

87,906,378

70

(35,666,960)

(51)

(36,165,012)

(15)

54,346,968

22

Total comprehensive income

$ 127,731,074

102

4,451,897

6

54,858,119

23

175,725,778

72

69901

Consolidated net income attributable to:

Owners of parent

$ 39,521,655

32

39,994,710

57

90,905,174

38

121,309,195

50

69903

Non-controlling interests

303,041

-

124,147

-

117,957

-

69,615

-

$ 39,824,696

32

40,118,857

57

91,023,131

38

121,378,810

50

Total comprehensive income attributable to:

69951

Owners of parent

$ 127,160,353

102

3,389,269

5

54,674,704

23

174,710,636

72

69953

Non-controlling interests

570,721

-

1,062,628

1

183,415

-

1,015,142

-

$ 127,731,074

102

4,451,897

6

54,858,119

23

175,725,778

72

Basic earnings per share (in New Taiwan Dollars) (note 6(ad)) $ 2.82 2.86 6.23 8.40

6

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the nine months ended September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Equity attributable to owners of parent

Total other equity interest Unrealized

gains (losses)

Exchange

Share capital Retained earnings differences on

on financial assets measured at fair value

Change in fair value of financial

liability Gains (losses) Equity related

Other comprehensive income

reclassified by Total equity

Stock dividend

translation of

through other

attributable to

on financial

to assets

applying

attributable

Non-

Common

Preferred

to be

Capital

Legal

Special

Undistributed

foreign

comprehensive change in credit

instruments

Revaluation

classified as

overlay

to owners of

controlling

stock

stock

distributed Total

surplus

reserve

reserve

earnings Total

operations

income risk of liability for hedging surplus held for sale approach Total parent interests Total equity

Balance at January 1, 2024 $ 130,149,732 15,999,900 - 146,149,632 165,040,190 95,593,238 261,752,640 168,806,349 526,152,227 (17,761,886) (42,349,979) - (154,501) 2,715,442 - 22,646,128 (34,904,796) 802,437,253 14,168,572 816,605,825

Net income - - - - - - - 121,309,195 121,309,195 - - - - - - - - 121,309,195 69,615 121,378,810 Other comprehensive income - - - - - - - (4,447) (4,447) 8,954,893 9,191,337 87 (98,906) 83,261 - 35,275,216 53,405,888 53,401,441 945,527 54,346,968

Total comprehensive income - - - - - - - 121,304,748 121,304,748 8,954,893 9,191,337 87 (98,906) 83,261 - 35,275,216 53,405,888 174,710,636 1,015,142 175,725,778

Appropriation and distribution of retained earnings:

Reversal of special reserve - - - - - - (128,486,405) 128,486,405 - - - - - - - - - - - -

Legal reserve appropriated - - - - - 6,711,672 - (6,711,672) - - - - - - - - - - - -

Cash dividends of common stock - - - - - - - (32,537,433) (32,537,433) - - - - - - - - (32,537,433) - (32,537,433)

Cash dividends of preferred stock - - - - - - - (3,636,543) (3,636,543) - - - - - - - - (3,636,543) - (3,636,543)

Stock dividends from capital surplus 6,507,487 - - 6,507,487 (6,507,487) - - - - - - - - - - - - - - -

Changes in equity of associates and joint

ventures accounted for using equity method - - - - 1,236 - - - - - - - - - - - - 1,236 - 1,236 Changes in ownership interests in subsidiaries - - - - 15 - - - - - - - - - - - - 15 (15) -Changes in non-controlling interests - - - - - - - - - - - - - - - - - - 549,722 549,722 Disposal of investments in equity instruments

measured at fair value through other

comprehensive income - - - - - - - 4,421,015 4,421,015 - (4,421,015) - - - - - (4,421,015) - - -

Balance at September 30, 2024 $ 136,657,219 15,999,900 - 152,657,119 158,533,954 102,304,910 133,266,235 380,132,869 615,704,014 (8,806,993) (37,579,657) 87 (253,407) 2,798,703 - 57,921,344 14,080,077 940,975,164 15,733,421 956,708,585

Balance at January 1,2025 $ 136,657,219 15,999,900 - 152,657,119 159,094,995 102,304,910 133,266,235 410,018,815 645,589,960 (9,550,468) (46,248,945) 52 (237,564) 2,799,709 2,657 47,018,087 (6,216,472) 951,125,602 14,669,153 965,794,755 Net income - - - - - - - 90,905,174 90,905,174 - - - - - - - - 90,905,174 117,957 91,023,131 Other comprehensive income - - - - - - - (3,034) (3,034) (12,448,616) 12,982,728 (52) (7,321) 895,550 (4,131) (37,645,594) (36,227,436) (36,230,470) 65,458 (36,165,012)

Total comprehensive income - - - - - - - 90,902,140 90,902,140 (12,448,616) 12,982,728 (52) (7,321) 895,550 (4,131) (37,645,594) (36,227,436) 54,674,704 183,415 54,858,119

Appropriation and distribution of retained earnings:

Reversal of special reserve - - - - - - (7,467,774) 7,467,774 - - - - - - - - - - - -

Legal reserve appropriated - - - - - 15,561,171 - (15,561,171) - - - - - - - - - - - -

Cash dividends of common stock - - - - - - - (58,079,318) (58,079,318) - - - - - - - - (58,079,318) - (58,079,318)

Cash dividends of preferred stock - - - - - - - (3,689,230) (3,689,230) - - - - - - - - (3,689,230) - (3,689,230)

Stock dividends from capital surplus - - 3,416,430 3,416,430 (3,416,430) - - - - - - - - - - - - - - -

Changes in equity of associates and joint

ventures accounted for using equity method - - - - (59,764) - - - - - - - - - - - - (59,764) - (59,764)

Disposal of subsidiaries or investments

accounted for using equity method - - - - (616,135) - - - - - - - - - - - - (616,135) (154,034) (770,169)

Changes in non-controlling interests - - - - - - - - - - - - - - - - - - (418,196) (418,196)

Disposal of investments in equity instruments measured at fair value through other

comprehensive income - - - - - - - 37,172 37,172 - (37,172) - - - - - (37,172) - - -

Others - - - - - - - - - - - - - (132,576) 132,576 - - - - -

Balance at September 30, 2025 $ 136,657,219 15,999,900 3,416,430 156,073,549 155,002,666 117,866,081 125,798,461 431,096,182 674,760,724 (21,999,084) (33,303,389) - (244,885) 3,562,683 131,102 9,372,493 (42,481,080) 943,355,859 14,280,338 957,636,197

Cash flows from (used in) operating activities:

Income before income tax

$ 104,749,591

136,678,633

Adjustments:

Adjustments to reconcile profit or loss:

Depreciation expenses

4,527,802

4,355,538

Amortization expenses

1,745,876

1,636,096

Allowance on bad debts

8,243,817

8,742,039

Net loss (gain) on financial assets or liabilities at fair value through profit or loss

11,486,719

(19,967,264)

Interest expenses

87,698,261

92,632,853

Interest income

(227,484,212)

(227,082,960)

Dividend income

(39,815,380)

(39,247,333)

Net change in insurance liabilities

13,320,670

29,121,517

Net change in provisions for guarantee liabilities

60,133

24,466

Net change in other provisions

47,483,843

5,486,138

Share of profit of associates and joint ventures accounted for using equity method

(2,145,243)

(2,163,564)

Loss (gain) reclassified by applying overlay approach

(39,283,989)

40,303,668

Gain on disposal of investment properties

(10,704)

(8,640)

Gain on disposal of assets classified as held for sale

(1,570,637)

-

Gain on disposal of investments

(116,676,623)

(128,008,472)

Gain on disposal of investments accounted for using equity method

(104,650)

-

Impairment loss on financial assets

45,717

177,053

Impairment loss on non-financial assets

4,906

47,482

Unrealized foreign exchange loss (gain)

137,366,239

(52,209,220)

Loss (gain) on fair value adjustment of investment property

(444,117)

8,104,600

Other adjustments

(134,804)

(18,648)

Subtotal of adjustments to reconcile profit or loss

(115,686,376)

(278,074,651)

Changes in operating assets and liabilities: Changes in operating assets:

Increase in due from the central bank and call loans to banks

(78,497,614)

(22,188,352)

Decrease in financial assets for hedging and measured at fair value through profit or loss

85,793,531

17,665,882

Increase in financial assets measured at fair value through other comprehensive income

(202,824,672)

(89,317,528)

Decrease (increase) in investments in debt instruments measured at amortized cost

(20,310,927)

47,152,780

Decrease in securities purchased under agreements to resell

271,571

631,630

Increase in receivables

(40,229,540)

(91,731,905)

Increase in discounts and loans

(293,891,016)

(201,862,865)

Decrease (increase) in reinsurance assets

(151,016)

1,587,852

Decrease (increase) in other financial assets

2,362,640

(23,255,331)

Decrease (increase) in other assets

7,941,411

(5,719,467)

Subtotal of changes in operating assets

(539,535,632)

(367,037,304)

Changes in operating liabilities:

Increase in deposits from the central bank and banks

89,666,954

12,626,945

Increase in financial liabilities for hedging and measured at fair value through profit or loss

13,147,221

3,606,197

Increase (decrease) in securities sold under repurchase agreement

1,995,287

(57,537,045)

Increase in payables

53,690,040

32,557,575

Increase in deposits and remittances

244,852,725

338,670,770

Decrease in provisions

(419,787)

(1,269,078)

Decrease in other financial liabilities

(9,740,186)

(5,880,952)

Increase (decrease) in other liabilities

(826,316)

21,218,837

Subtotal of changes in operating liabilities

392,365,938

343,993,249

Subtotal of all adjustments

(262,856,070)

(301,118,706)

Cash outflow generated from operations

$ (158,106,479)

(164,440,073)

Interest received

219,613,641

216,690,031

Dividends received

41,267,887

40,277,174

Interest paid

(83,709,204)

(86,576,666)

Income taxes paid

(10,017,492)

(3,896,614)

Net cash flows from operating activities

9,048,353

2,053,852

Cash flows from (used in) investing activities:

Acquisition of investments accounted for using equity method

(2,199,450)

(729,480)

Net cash flow from acquisition of subsidiaries

(690,185)

(40,550)

Proceeds from capital reduction of investments accounted for using equity method

-

24,645

Proceeds from disposal of assets classified as held for sale

1,058,278

-

Acquisition of property and equipment

(5,185,158)

(3,162,530)

Proceeds from disposal of property and equipment

2,649

12,794

Acquisition of intangible assets

(988,827)

(1,179,011)

Acquisition of investment properties

(10,355,126)

(3,387,259)

Proceeds from disposal of investment properties

62,762

46,141

Other investing activities

(7)

57,331

Net cash flows used in investing activities

(18,295,064)

(8,357,919)

Cash flows from (used in) financing activities:

Increase (decrease) in due to the central bank and banks

2,674,027

(1,673,036)

Increase (decrease) in commercial papers payable

(28,989,520)

15,707,211

Proceeds from issuing bonds

87,178,054

43,097,563

Repayments of bonds

(9,742,675)

(10,285,500)

Proceeds from issuing bank financial debentures

23,779,822

6,000,000

Repayments of bank financial debentures

(7,539,949)

(16,889,066)

Increase (decrease) in other borrowings

2,854,331

(1,357,714)

Repayments of lease liabilities

(2,006,887)

(2,153,710)

Cash dividends paid

(61,768,548)

(36,173,976)

Change in non-controlling interests

(418,196)

549,722

Net cash flows from (used in) financing activities

6,020,459

(3,178,506)

Effect of exchange rate changes on cash and cash equivalents

(11,876,560)

3,619,999

Net decrease in cash and cash equivalents

(15,102,812)

(5,862,574)

Cash and cash equivalents at beginning of period

625,596,925

521,490,239

Cash and cash equivalents at end of period

$ 610,494,113

515,627,665

Composition of cash and cash equivalents:

Cash and cash equivalents reported in the statement of financial position

$ 405,376,543

325,367,201

Due from the central bank and call loans to banks qualifying for cash and cash equivalents under the definition of IAS 7

102,794,463

104,645,943

Securities purchased under resell agreements qualifying for cash and cash equivalents under the definition of IAS 7

102,323,107

85,614,521

Cash and cash equivalents at end of period

$ 610,494,113

515,627,665

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements For the nine months ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)
  1. Company history

    1. Fubon Financial Holding Co., Ltd.

      Fubon Financial Holding Co., Ltd. (the Company) was established in December 2001 pursuant to the Financial Holding Company Act in Taiwan.

      In connection with the formation of the Company, substantially all of the assets and liabilities and related operations of Fubon Insurance Co., Ltd. (Fubon Insurance) were transferred to a new wholly owned subsidiary named Fubon Insurance. The name of the "former" Fubon Insurance Co., Ltd. was changed to Fubon Financial Holding Co., Ltd. Furthermore, shares of Fubon Securities Co., Ltd. (Fubon Securities), Fubon Commercial Bank Co., Ltd. (Fubon Bank), and Fubon Life Assurance Co., Ltd. (Fubon Life Assurance) were exchanged for shares in the Company on December 19, 2001.

      On August 28, 2002, shares of Fubon Asset Management Co., Ltd. (Fubon Asset Management) were exchanged for shares in the Company. Starting from March 11, 2011, due to the Company' s corporate restructuring, Fubon Asset Management became a wholly owned subsidiary of Fubon Securities. Starting from December 30, 2019, due to the Company's corporate restructuring, Fubon Asset Management became a wholly owned subsidiary of the Company.

      On December 23, 2002, shares of Taipei Bank Co., Ltd. (Taipei Bank) were exchanged for shares in the Company.

      In September 2003, shares of Fubon Marketing Co., Ltd. (Fubon Marketing) were acquired in cash by the Company. The dissolution and liquidation of Fubon Marketing was approved by the Board of Directors on June 6, 2023. On December 15, 2023, the distribution date and issuance date, a portion of the remaining property was distributed to the Company. Since that day, the company directly held 100% of the equity interest in Fubon Insurance Agency Co., Ltd. ( Fubon Insurance Agency).

      In October 2003, shares of Fubon Financial Holding Venture Capital Co., Ltd. (Fubon Financial Holding Venture Capital) were acquired in cash by the Company.

      In March 2004, 75% of the shares of Common Stock of International Bank of Asia, Limited, renamed Fubon Bank Hong Kong Limited (Fubon Bank (Hong Kong)), were acquired in cash by the Company. On June 13, 2011, 25% of the remaining outstanding shares of Common Stock of Fubon Bank (Hong Kong) were acquired in cash by the Company. On August 16, 2012, Fubon Bank (Hong Kong) redeemed the preferred shares of stock of $4,004,057 thousand held by the Company. On the same date, the Company subscribed in cash of $4,004,057 thousand for the ordinary shares of stock of Fubon Bank (Hong Kong).

      In August 2004, shares of Fubon Asset Management Service Co., Ltd. (Fubon AMC) and Fubon Investment Management Consulting Co., Ltd. (Fubon IMC) were acquired in cash by the Company. On November 7, 2011, the procedures for the liquidation of Fubon IMC were completed.

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

      In March 2008, shares of Taiwan Sport Lottery Co., Ltd. (Taiwan Sport Lottery) were acquired in cash by the Company. In September 2008, the Company owned 51% of the shares of Taiwan Sport Lottery. On July 20, 2011, Taiwan Sport Lottery became wholly owned subsidiary of the Company. The dissolution and liquidation of Taiwan Sport Lottery Co., Ltd. was approved by the Board of Directors in August 2021, and the completed liquidation was declared to the court in February 2022.

      On February 11, 2009, all of the equity shares of ING Life Insurance Co., Ltd. (ING Life Insurance) were exchanged for shares in the Company. On June 1, 2009, ING Life Insurance merged with Fubon Life Assurance Co., Ltd., which was renamed Fubon Life Insurance Co., Ltd.

      On January 7, 2014, 80% of the shares of First Sino Bank, Limited, which was renamed as Fubon Bank (China) Co., Ltd. from April 2014, were acquired in cash by the Company and Taipei Fubon Bank. On October 20, 2016, 20% of the remaining outstanding shares of Fubon Bank (China) were acquired by the Company. Fubon Bank (China) became a wholly owned subsidiary of the Company.

      On March 23, 2021, 53.84% of the shares of JihSun Financial Holding Co., Ltd. (JihSun Financial Holding) were acquired by the Company through the public tender offer. On March 30, 2021, the payments and the settlement were completed. JihSun Financial Holding became a subsidiary of the Company, and the Company continued to increase the shareholding to 100%. The merger was completed on November 11, 2022, and JihSun Financial Holding was the extinguished company. Since that date, the Company has directly held 100% of the equity interest in JihSun International Commercial Bank Co., Ltd. (JihSun Bank), JihSun Securities Co., Ltd. (JihSun Securities), and JihSun International Property Insurance Agency Co., Ltd. (JihSun Property Insurance Agency).

      On April 1 and May 16, 2023, due to the Company' s corporate restructuring, JihSun Bank and JihSun Property Insurance Agency completed their respective mergers with Taipei Fubon Bank. After the mergers, JihSun Bank and JihSun Property Insurance Agency became the extinguished companies. On April 9, 2023, due to the Company' s corporate restructuring, JihSun Securities completed its merger with Fubon Securities. After the merger, JihSun Securities became the extinguished company. On July 1, 2023, Fubon Insurance Agency issued new shares to merge Fubon Insurance Agency Co,. Ltd. (Fubon Insurance Agency), with Fubon Insurance Agency as the surviving company and Fubon Insurance Agency as the extinguished company.

      On April 1, 2025, Fubon Asset Management completed mergers with JihSun Securities Investment Trust Co., Ltd. (JihSun SITC). After the mergers, Fubon Asset Management is the surviving company and JihSun SITC is the extinguished company.

      The Company is engaged in the financial businesses including banking, financial bills, credit cards, trust, insurance, securities, futures, ventures, investments in foreign financial institutions approved by the government authorities, investments relevant to other financial services approved by the government authorities and investments, which is excluding the participation in the operation, in the services that are outside the scope of Article 36, Paragraph 2 of Financial Holding Company Act, and approved by the government authorities.

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

    2. Business of consolidated subsidiaries:

      1. Fubon Insurance was incorporated on December 19, 2001 and assumed all rights and liabilities of the former Fubon Insurance Co., Ltd., which was incorporated in 1961. It is engaged in the business of property and casualty insurance.

      2. Fubon Securities was incorporated on July 11, 1988, as a company with an integrated securities firm license. Fubon Securities is engaged in brokerage, margin lending, securities financing and refinancing, securities trading, securities transfer services, securities underwriting, and futures.

      3. Taipei Bank started as a financial institution of the Taipei City Government (TCG) in 1969. On July 1, 1984, it was reorganized into a limited liability corporation and it was renamed as City Bank of Taipei Co., Ltd. On January 1, 1993, the bank's name was subsequently changed to Taipei Bank Co., Ltd. On August 1, 1991, Fubon Bank was authorized to operate as a commercial bank and commenced its commercial operations on April 20, 1992.

        On January 1, 2005, Taipei Bank merged with Fubon Bank to improve operational efficiency and reduce costs. Taipei Bank was the surviving entity from this merger. However, the name Taipei Bank was changed to Taipei Fubon Bank on the same day.

        Taipei Fubon Bank is engaged in authorized operations of commercial banks.

      4. Fubon Bank (Hong Kong) was founded in 1982. It is engaged in the following operations:

        1. Retail and consumer banking;

        2. Corporate banking;

        3. Investment banking;

        4. Investment and financial management services; and

        5. Properties management and other services.

      5. Fubon Life Insurance was incorporated on June 3, 1993, under the laws of the Republic of China (ROC). It is engaged in the business of life insurance underwriting.

        Fubon Life Insurance merged with ING Life Insurance (Taiwan) effective June 1, 2009, with ING Life Insurance (Taiwan) was the surviving entity and then changed its name to Fubon Life Insurance Co., Ltd. Fubon Life Insurance is engaged in life insurance, accident insurance, health insurance, and any business related to life insurance.

      6. Fubon Bank (China) is engaged in foreign currency services and CNY service to customers, in accordance with the " Regulations Governing Foreign Financial Institutions in the People' s Republic of China".

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements
  2. Approval date and procedures of the consolidated financial statements

    The consolidated financial statements for the nine months ended September 30, 2025 and 2024 were authorized for issuance by the Board of Directors on November 20, 2025.

  3. New standards, amendments and interpretations adopted:

    1. The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission,

      R.O.C. which have already been adopted.

      The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025:

      • Amendments to IAS21"Lack of Exchangeability"

    2. The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

      The Group' s anticipated adoption of the new amendments, beginning on January 1, 2026, are expected to have the following impacts:

      New Standards and Amendments Main Amendments Effective date per

      IASB

      IFRS 17 "Insurance Contracts"

      The new standard of accounting for insurance contracts contain recognition, measurement, presentation and disclosure of insurance contracts issued, and the main amendments are as follows:

      • Recognition: an entity recognizes a group of insurance contracts that it issues from the earliest of :

        • the beginning of the coverage period of the group of contracts;

        • the date when the first payment from a policyholder in the group because due; and

        • for a group of onerous contracts, when the group becomes onerous, if facts and circumstances indicate that there is such a group.

      • Measurement: on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. For subsequent measurement, the entity shall estimate the cash flows, discount rates and the adjustment for nonfinancial risk.

      January 1, 2023

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements New Standards and Amendments Main Amendments Effective date per

      IASB

      IFRS 17 "Insurance Contracts"

      Amendments to IFRS 17 "Insurance Contracts"

      • Presentation and disclosure: the presentation of insurance revenue is based on the provision of service pattern and investment components excluded from insurance revenue.

        In addition, at the transition date (the beginning of the annual reporting period preceding the initial application date), entities shall apply IFRS 17 using one of the following methods:

      • Full Retrospective Approach: Entities shall apply the full retrospective approach unless impracticable, in which case the modified retrospective approach or the fair value approach shall be used.

      • Modified Retrospective Approach: May be applied when results can be achieved close to the full retrospective approach without undue cost or effort.

      • Fair Value Approach: The contractual service margin shall be determined as the difference between the fair value of the insurance contract group (as measured under IFRS 13) and the fulfilment cash flows at the transition date.

        The fundamental principles introduced when the Board first issued IFRS 17 "Insurance Contracts" in May 2017 remain unaffected. The amendments are designed to:

      • reduce costs by simplifying some requirements in the Standard;

      • make financial performance easier to explain; and

      • ease transition by deferring the effective date of the Standard to 2023 and by providing additional relief to reduce the effort required when applying IFRS 17 for the first time.

      January 1, 2023

      January 1, 2023

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements New Standards and Amendments Main Amendments Effective date per

      IASB

      Amendments to IFRS 17 "Initial Application of IFRS 17 and IFRS 9 - Comparative Information "

      Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments" regarding the application guidance requirements for Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7

      The amendment adds a new transition option to IFRS 17 Insurance Contracts (the ' classification overlay' ) to alleviate accounting mismatches in comparative information between insurance contract liabilities and related financial assets on the initial application of IFRS 17. It allows presentation of comparative information about financial assets to be presented in a manner that is more consistent with IFRS 9 Financial Instruments.

      The amendments set out:

      The company generally derecognizes its trade payable on the settlement date. However, the amendments provide an exception for the derecognition of financial liabilities. The exception allows the company to derecognize its trade payable before the settlement date, potentially, when it uses an electronic payment system that meets all of the following criteria:

      • no practical ability to withdraw, stop or cancel the payment instruction;

      • no practical ability to access the cash to be used for settlement as a result of the payment instruction; and

      • the settlement risk associated with the electronic payment system is insignificant.

      January 1, 2023

      January 1, 2026

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements New Standards and Amendments Main Amendments Effective date per

      IASB

      Annual Improvements to IFRS Accounting Standards-Volume 11

      The amendments set out:

      1. IFRS 1 " First-time Adoption of International Financial Reporting Standards":

        The amendments address a potential confusion arising from an inconsistency in wording between paragraph B6 of IFRS 1 and requirements for hedge accounting in IFRS 9 Financial Instruments.

      2. IFRS 7 " Financial Instruments: Disclosures":

        The amendments address a potential confusion in IFRS 7 arising from an obsolete reference to a paragraph that was deleted from the standard when IFRS 13 Fair Value Measurement was issued.

      3. IFRS 9 "Financial Instruments":

        • Derecognition of a lease liability

          The IASB' s amendment states that if a lease liability is derecognized, then the derecognition will be accounted for under IFRS 9, (i.e. the difference between the carrying amount and the consideration paid is recognized in profit or loss). However, when a lease liability is modified, the modification will be accounted for under IFRS 16 Leases.

        • Transaction price

          The amendments require companies to initially measure a trade receivable without a significant financing component at the amount determined by applying IFRS 15 Revenue from Contracts with Customers. The amendments remove the conflict between IFRS 9 and IFRS 15 over the amount at which a trade receivable is initially measured.

          January 1, 2026

          FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements New Standards and Amendments Main Amendments Effective date per

          IASB

          Annual Improvements to IFRS Accounting Standards-Volume 11

          Amendments to IFRS 9 and IFRS 7 "Contracts Referencing Nature-dependent Electricity"

      4. IFRS 10 " Consolidated Financial Statements":

        The amendments clarify the determination of a 'de facto agent'.

      5. IAS 7 "Statement of Cash Flows":

        The amendments address a potential confusion in applying paragraph 37 of IAS 7 that arises from the use of the term 'cost method'.

        Nature-dependent electricity contracts, which are often structured as power purchase agreements (PPAs), help entities to secure their electricity supply from sources such as wind and solar power. The amount of electricity generated under these contracts can vary based on uncontrollable factors such as weather conditions. Current accounting requirements in IFRS 9 may not adequately capture how these contracts affect an entity's performance.

        To allow entities to better reflect these contracts in the financial statements, the IASB has made amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures.

        The amendments set out:

        • clarifying the application of the ' own-use' requirements: The amendments allow an entity to apply the own-use exemption to power purchase agreements if the entity has been, and expects to be, a net-purchaser of electricity for the contract period;

        • permitting hedge accounting if these contracts are used as hedging instruments in hedges of forecast electricity transactions; and

        • adding new disclosure requirements to enable investors to understand the effect of these contracts on an entity' s financial performance and cash flows.

          January 1, 2026

          January 1, 2026

          FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

          Except as otherwise provided in the following paragraph, the Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the above mentioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation.

          1. The Group will adopt IFRS 17 "Insurance Contracts" and amendments to IFRS 17 " Insurance Contracts" from January 1, 2026. To comply with the new standard, the Group has launched the implementation project, including personnel training, development of accounting policies and methodology, evaluation and adoption of actuarial assumptions, construction of measurement models, adjustment of operating processes, system development and testing, planning of internal control processes, financial statement presentation and disclosure, risk management, etc. The implementation is progressing in accordance with the established timeline and remains under continuous assessment. Furthermore, the subsidiaries, Fubon Hyundai Life Insurance Co., Ltd., Fubon Life Insurance (Hong Kong) Company Limited and Fubon Reinsurance Labuan Co. Ltd. have adopted IFRS 17 in accordance with local regulations.

            As of the date of issuance of the consolidated financial statements, significant progress has been made in the implementation of IFRS 17. However, the impact on the consolidated financial statements remains uncertain and is currently unable to be disclosed. The Group expects that the opening balance effects for the subsidiaries, Fubon Hyundai Life Insurance Co., Ltd., Fubon Life Insurance (Hong Kong) Company Limited, Fubon Life Insurance (Vietnam) Co., Ltd. and Fubon Reinsurance Labuan Co. Ltd. will not have a material impact on the consolidated financial statements.

          2. Amendments to IFRS 9 and IFRS 7 " Amendments to the Classification and Measurement of Financial Instruments" regarding the application guidance requirements for Section 4.1 of IFRS 9 and the related disclosure requirements of IFRS 7 will not have a significant impact on the consolidated financial statements.

    3. The impact of IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

      The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

      New Standards and Amendments Main Amendments Effective date per

      IASB

      Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture"

      The amendments address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011) in dealing with the sale or contribution of assets between an investor and its associate or joint venture.

      The main consequence of the amendments is that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.

      Effective date to be determined by IASB

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements New Standards and Amendments Main Amendments Effective date per

      IASB

      IFRS 18 "Presentation and Disclosure in Financial Statements"

      The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

      • A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ' operating profit' subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company' s main business activities.

      • Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

      • Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

      January 1, 2027 note：On September 25, 2025, the FSC

      issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC.

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements New Standards and Amendments Main Amendments Effective date per

      IASB

      IFRS 19 "Subsidiaries without Public Accountability: Disclosures"

      Amendments to IFRS 19 "Subsidiaries without Public Accountability: Disclosures"

      The new standard allows eligible subsidiaries to apply the reduced disclosure requirements in the new standard while applying the requirements in other IFRS Accounting Standards except for the disclosure requirements. Eligible subsidiaries may voluntarily choose to apply the new standard in its financial statements provided that, at the reporting date:

      • it does not have public accountability; and

      • its ultimate or intermediate parent produces consolidated financial statements under IFRS Accounting Standards.

      A subsidiary applying the new standard is required to clearly state that the new standard has been adopted.

      Due to the timing of IFRS 19's publication in May 2024, disclosure requirements in new or amended IFRS Accounting Standards issued between 28 February 2021 and May 2024 were included in IFRS

      19 without reductions. The IASB subsequently issued amendments to IFRS

      19 in August 2025, which reduced the disclosure requirements for the relevant standards issued in that period.

      January 1, 2027

      January 1, 2027

      The Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation.

  4. Summary of material accounting policies:

    1. Statement of compliance

      The consolidated financial statements have been prepared in accordance with the " Regulations Governing the Preparation of Financial Reports by Financial Holding Companies" and with the International Accounting Standards ("IASs") 34, "Interim Financial Reporting" endorsed and issued into effect by the FSC.

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

      The consolidated financial statements have not contained all the necessary information that should be disclosed which the consolidated financial statements have been prepared in accordance with the IFRS, IAS and interpretations endorsed and issued into effect by the FSC (TIFRS Accounting Standards).

      Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2024. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2024.

    2. Principles of consolidation

      The following entities have been included in the consolidated financial statements:

      Percentage of Ownership (%)

      Name of Investor Subsidiary Main Activities

      The Company Fubon Insurance Property and casualty insurance

      September

      30, 2025

      100.00 %

      December 31,

      2024

      100.00 %

      September

      30, 2024

      100.00 %

      The Company

      Taipei Fubon Bank

      Banking

      100.00 %

      100.00 %

      100.00 %

      The Company

      Fubon Life Insurance

      Life insurance

      100.00 %

      100.00 %

      100.00 %

      The Company

      Fubon Securities

      Securities business

      100.00 %

      100.00 %

      100.00 %

      The Company, Fubon Life

      Fubon Financial Holding

      Venture Capital

      100.00 %

      100.00 %

      100.00 %

      Insurance, Fubon

      Venture Capital

      Insurance and Fubon

      Securities

      The Company

      Fubon Bank (Hong

      Banking

      100.00 %

      100.00 %

      100.00 %

      Kong)

      The Company

      Fubon AMC

      Creditor's rights

      100.00 %

      100.00 %

      100.00 %

      management

      The Company

      Fubon Asset

      Investment trust

      100.00 %

      100.00 %

      100.00 %

      Management

      The Company

      Fubon Insurance Agency

      Life, property and

      100.00 %

      100.00 %

      100.00 %

      casualty insurance agent

      The Company and Taipei

      Fubon Bank (China)

      Banking

      100.00 %

      100.00 %

      100.00 %

      Fubon Bank

      Taipei Fubon Bank

      TFB Capital

      Venture Capital

      100.00 %

      100.00 %

      100.00 %

      Fubon Securities

      Fubon Futures

      Futures

      100.00 %

      100.00 %

      100.00 %

      Fubon Securities

      Fubon Investment

      Investment Service

      100.00 %

      100.00 %

      100.00 %

      Service

      Fubon Securities Fubon investment holding BVI (Note 3)

      Investment Holding

      - % -

      % 100.00 %

      Fubon Securities Fubon Securities Venture Capital

      Venture Capital

      100.00 %

      100.00 %

      100.00 %

      Fubon Securities

      Fubon Mintou Venture

      Capital

      Venture Capital

      67.00 %

      67.00 %

      67.00 %

      Fubon Securities

      Fubon Securities (Hong Kong)

      Securities business

      100.00 %

      100.00 %

      100.00 %

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

      Percentage of Ownership (%)

      Name of Investor Subsidiary Main Activities

      September

      30, 2025

      December 31,

      2024

      September

      30, 2024

      Fubon Securities JS CRESVALE Securities International

      Securities business

      100.00 %

      100.00 %

      100.00 %

      JS CRESVALE Securities

      JS CRESVALE Capital

      Stock and futures

      100.00 %

      100.00 %

      100.00 %

      International

      brokerage, sales of

      Fubon Asset Management

      Fubon Private Equity

      mutual funds

      Investment and

      100.00 %

      100.00 %

      100.00 %

      investment service management

      Fubon Asset Management

      Fubon Fund Management

      (Hong Kong)

      Asset Management

      100.00 %

      100.00 %

      100.00 %

      Fubon Private Equity

      Fubon Digital Music Asset Management

      Venture Capital

      51.00 %

      51.00 %

      51.00 %

      Fubon Digital Music Asset Management

      Fubon Digital Music GP Limited

      General Partner of Private Equity

      100.00 %

      100.00 %

      100.00 %

      Fubon Insurance

      Fubon Insurance (Vietnam)

      Insurance business

      100.00 %

      100.00 %

      100.00 %

      Fubon Insurance

      Fubon Insurance Broker (Thailand) (Note 1)

      Insurance Broker

      48.97 %

      48.97 %

      48.97 %

      Fubon Insurance

      Fubon Insurance Broker (Philippines)

      Insurance Broker

      99.99 %

      99.99 %

      99.99 %

      Fubon Insurance

      Fubon Reinsurance Labuan Co. Ltd.

      Reinsurance business

      100.00 %

      100.00 %

      100.00 %

      Fubon Insurance and Fubon Life Insurance

      Fubon Property & Casualty Insurance (Xiamen)

      Insurance business

      80.00 %

      80.00 %

      80.00 %

      Fubon Life Insurance

      Fubon Life Insurance (Vietnam)

      Insurance business

      100.00 %

      100.00 %

      100.00 %

      Fubon Life Insurance

      Fubon Life Insurance (Hong Kong)

      Insurance business

      100.00 %

      100.00 %

      100.00 %

      Fubon Life Insurance

      Fubon Hyundai Life Insurance

      Insurance business

      83.22 %

      83.22 %

      83.22 %

      Fubon Life Insurance

      Carter Lane (Guernsey)

      Real estate investment and management

      100.00 %

      100.00 %

      100.00 %

      Fubon Life Insurance

      Bow Bells House (Jersey)

      Real estate investment and management

      100.00 %

      100.00 %

      100.00 %

      Fubon Life Insurance

      Fubon MTL Property (Jersey)

      Real estate investment and management

      100.00 %

      100.00 %

      100.00 %

      Fubon Life Insurance

      Fubon Ellipse (Belgium)

      Real estate investment and management

      100.00 %

      100.00 %

      100.00 %

      Fubon Life Insurance

      Fubon Eurotower (Luxembourg)

      Real estate investment and management

      100.00 %

      100.00 %

      100.00 %

      Fubon Life Insurance

      Fubon Green Power

      Energy technical

      74.98 %

      74.98 %

      74.98 %

      Fubon Life Insurance Fubon Life Singapore

      Pte. Ltd. (Note 5)

      services Financing business

      100.00 %

      - % - %

      Fubon Green Power Li Tong Management Consultant Co., LTD

      Energy technical services

      100.00 %

      100.00 %

      100.00 %

      Fubon Green Power Sumray Power Company (Note 4)

      Energy technical services

      100.00 %

      - % - %

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

      Percentage of Ownership (%)

      September

      December 31,

      September

      Name of Investor

      Subsidiary

      Main Activities

      30, 2025

      2024

      30, 2024

      Fubon Financial Holding

      Fubon Sports &

      Sports service business

      100.00 %

      100.00 %

      100.00 %

      Venture Capital

      Entertainment

      Fubon Financial Holding

      Fubon Stadium

      Stadium management

      100.00 %

      100.00 %

      100.00 %

      Venture Capital

      Fubon Bank (Hong Kong)

      Fubon Nominees (Hong

      Financial sector

      100.00 %

      100.00 %

      100.00 %

      Kong) (Note 2)

      business

      Fubon Bank (Hong Kong)

      Fubon Credit (Hong

      Financial sector

      100.00 %

      100.00 %

      100.00 %

      Kong) (Note 2)

      business

      Fubon Bank (Hong Kong)

      FB Securities (Hong

      Securities brokerage

      100.00 %

      100.00 %

      100.00 %

      Kong) (Note 2)

      Fubon Bank (Hong Kong)

      Fubon Insurance Brokers

      Insurance agent

      100.00 %

      100.00 %

      100.00 %

      (Note 2)

      Note 1: Fubon Insurance Broker (Thailand) is set up by a joint venture between Fubon Insurance and Futai Holding Co., Ltd. etc.. Since Fubon Insurance has subscribed for the shares of Fubon Insurance Broker (Thailand) on November 5, 2013 and has control over operating activities, Fubon Insurance Broker (Thailand) is regarded as a subsidiary.

      Note 2: These entities are the major subsidiaries of Fubon Bank (Hong Kong).

      Note 3: The dissolution and liquidation of Fubon Investment Holding (BVI) Ltd. was completed on December 9, 2024, upon receipt of the official certificate issued by the local authority.

      Note 4: On March 21, 2025, this company became a subsidiary of Fubon Green Power. Note 5: On July 7, 2025, this company became a subsidiary of Fubon Life Insurance.

    3. Insurance liability

      In accordance with Jin-Guan-Bao-Cai-Zi No. 11404924811, the Company and its subsidiaries adjusted the calculation basis for the provision of policy reserves while simultaneously releasing the excess amount of policy reserves obtain by the difference between prior to the adjustment and the recalculated amount. The recalculated policy reserves reflect the adjustments made to the reserve basis for certain effective insurance contracts that met the conditions set forth in the directive. These adjustments include raising the policy reserve interest rate within a range of 25 basis points, or a revision of mortality assumptions based on the Sixth Mortality Table of Taiwan's life insurance industry as promulgated under Jin-Guan-Bao-Cai-Zi No. 11004909551, or a concurrent application of both adjustments.

    4. Reserve for foreign exchange valuation

      In May 2025, the Group submitted an application to the Financial Supervisory Commission for approval to adopt the provisions of Policy 3.1 of " Guidelines of Foreign Exchange Valuation Reserve for Life Insurance Business". Upon receiving approval from the competent authority, the Group reclassified the designated reserve items under specific liabilities into the foreign exchange valuation reserve.

      Following Jin-Guan-Bao-Cai-Zi No. 11404924811 dated June 30, 2025, the Company and its subsidiaries has released the approved relevant reserves. In addition, in June 2025, the Group fully reallocate the released reserves into foreign exchange valuation reserve under the provision of Policy

      3.1 of "Guidelines of Foreign Exchange Valuation Reserve for Life Insurance Business".

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

    5. Employee benefits

      Pension cost for an interim period is calculated on a year to date basis by using the actuarially determined pension cost rate at the reporting date of prior year, adjusted for significant market fluctuations since the reporting date of prior year and for significant curtailments, settlements, or other significant one-time events.

    6. Income tax

      The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting.

      Income tax expenses for the period are measured by multiplying together the pre-tax income for the interim reporting period and the management's best estimate of effective annual tax rate. This should be recognized fully as tax expense for the current period.

      The income tax expenses recognized directly in equity or other comprehensive income arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases, which is measured at tax rates when it is expected to be realized.

  5. Significant accounting assumptions and judgments, and major sources of estimation uncertainty

    The preparation of the consolidated financial statements in conformity with the Regulations and IFRS Accounting Standards (in accordance with IAS 34 " Interim Financial Reporting" and endorsed by the FSC) requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

    Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Group's risk management. Revisions to estimates are recognized prospectively in the period of the change and future periods.

    Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is as follows:

    1. Fair value of financial instruments

      The fair value of non-active market or non-quoted financial instruments is determined using valuation techniques. In this case, the fair value is based on observable data of similar financial instruments or valuation model. If there are no observable market parameters, the fair value of financial instruments is evaluated based on appropriate assumptions. When the fair value is determined by the valuation model, the model shall be calibrated to ensure that all output data and the results reflect the actual market price. The models use only observable data as possible.

      Information on major assumptions for determining the fair value of financial instruments and the sensitivity analysis of those assumption, please refer to note 6 (ag).

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

    2. Insurance liability and reserve for insurance contract with nature of financial instruments

      The Company and its subsidiaries measure insurance liabilities in accordance with the "Regulations Governing the Provision of Various Reserves".

      Provision of life insurance liability reserve applies lock-in assumptions. All products are calculated on the basis of the reserve at the time of issuance with the exclusion of insurance products listed under Note 4 (c) "Insurance liabilities" which are accounted for with respect to the validity of the contract.

      Reserve for unearned premium is calculated according to the risks of respective insurance, and is determined by the actuary based on the characteristic of respective insurance.

      Claim reserve is estimated by Loss Development Triangle Method. The final claim cost is calculated using primary assumptions including claim development factor and expected claim rate. The claim development factor and the expected claim rate are calculated based on the historical claim experience and adjusted by the Company and its subsidiaries' policy factors such as charge rate and claim management.

      The estimation of liability adequacy test follows the "Code of Conduct of Actuarial Practice for the Statements of Financial Accounting Standards No 4" pronounced by the Actuarial Institute of the Republic of China. The estimated present value of the future cash flow of insurance contract when Company and its subsidiaries assess liability adequacy reserve is based on the reasonable estimated future insurance payment, premium revenue and relevant expenses.

      The professional judgment applied to the abovementioned liability evaluation process will affect the amount recognized for net changes in insurance liability, net changes in insurance contract with nature of financial instruments, insurance liability and reserve for insurance contract with nature of financial instruments.

    3. Debt investments and loans classified as financial assets measured at amortized cost or fair value through other comprehensive income, and expected credit loss of its receivables

      The Company and its subsidiaries' financial assets impairment which applies Lifetime ECL measurement or 12-month ECL measurement is determined by whether the credit risk has increased significantly since initial recognition. Lifetime ECL measurement applies for those financial assets that have suffered a significant increase in credit risk since initial recognition and 12-month ECL measurement for those have not. To measure expected credit losses, the Company and its subsidiaries consider PD (probability of default) of the financial asset or the issuer or counterparty, which is included in LGD (loss given default). Then LGD is multiplied by EAD (exposure at default). The Company and its subsidiaries consider the impact of the time value of money and estimate the expected credit losses of twelve months and the duration, respectively. The Company and its subsidiaries have considered historical experience, current economic conditions and forward-looking information at the reporting date to determine the assumptions and the selected inputs to be used in calculating the impairments.

      FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

    4. Fair value of investment property

      The fair value of investment property is derived from valuation techniques. Assumptions which are used in applying valuation techniques, such as income approach, comparison approach or cost approach, will have impacts on the fair value of investment property.

    5. Income taxes and deferred tax assets and liabilities

      The Company and its subsidiaries calculate the income tax in accordance with the local ordinances. The possible difference in tax base and calculation between the Company and its subsidiaries and the tax authorities leads to the uncertainty of income tax. The Company and its subsidiaries recognize related income tax and deferred income tax by assessing possible additional income tax pursuant to the transactions and calculations for the tax. If the final tax determined by the authorities differs from the initial recognized amount, the difference will affect the income tax and deferred income tax accounts.

      The assessment of the recoverable of deferred tax assets is based on future profitability estimation. If the estimated assumption of profitability has been changed, the Company and its subsidiaries may adjust the recognized amount of deferred tax assets.

  6. Explanation of significant accounts

(a)

Cash and Cash Equivalents

September 30,

December 31,

September 30,

2025

2024

2024

Cash on hand and petty cash

$ 8,656,921

15,648,897

8,425,040

Bank deposits

286,830,455

236,796,100

188,671,747

Cash equivalents

54,863,054

38,445,779

64,578,331

Notes and checks for clearing

1,621,172

1,225,948

1,332,388

Due from banks

53,475,462

87,003,622

62,407,956

Less: Guarantee deposits

70,521

70,157

48,261

Total

$ 405,376,543

379,050,189

325,367,201

For consolidated statements of cash flows, cash and cash equivalents include accounts as of

September 30, 2025 and 2024, listed below:

September 30,

September 30,

2025

2024

Cash and cash equivalents in consolidated balance sheets

$ 405,376,543

325,367,201

Due from the central bank and call loans to banks qualifying

102,794,463

104,645,943

for cash and cash equivalents under the definition of IAS 7

Securities purchased under resell agreements qualifying for

102,323,107

85,614,521

cash and cash equivalents under the definition of IAS 7

Cash and cash equivalents in consolidated statements of

$ 610,494,113

515,627,665

cash flows

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The amounts of loss allowance were as follows:

September 30,

2025

December 31,

2024

September 30,

2024

Loss allowance $ 2,916 15,269 10,482

For credit risk, the assessment of impairment and the change of loss allowance, please refer to note 6 (ai) for details.

  1. Due from the Central Bank and Call Loans to Banks

    September 30,

    December 31,

    September 30,

    2025

    2024

    2024

    Call loans to banks

    $ 283,037,930

    299,268,487

    289,854,499

    Deposit reserves

    172,636,298

    129,103,649

    150,783,901

    Due from the central bank－others

    16,048,734

    11,942,116

    13,904,923

    Total

    $ 471,722,962

    440,314,252

    454,543,323

    Under a directive issued by the Central Bank of the Republic of China, New Taiwan dollar (TWD)-denominated deposit reserves are determined by applying a prescribed percentage to the average monthly balances of customers' TWD-denominated deposits.

    Details of the deposit reserves from Taipei Fubon Bank were as follows:

    September 30,

    December 31,

    September 30,

    2025

    2024

    2024

    Deposit reserves for checking account

    $ 64,838,632

    25,430,014

    49,740,931

    Required deposit reserves

    $ 81,581,701

    77,505,647

    75,530,920

    The deposit reserves for checking account are not interest bearing and may be withdrawn anytime. The required deposit reserves are subject to withdrawal restrictions. In addition, foreign-currency deposit reserves are determined by applying a prescribed percentage to the balances of foreign-currency deposits. These reserves may be withdrawn anytime but bear no interests.

    Fubon Bank (China) uses the ending balance of deposits at the end of the month or certain balances reached at the average of 10-day periods as basis for making provisions, as required under the regulations of the People's Bank of China.

    The amounts of loss allowance were as follows:

    September 30,

    2025

    December 31,

    2024

    September 30,

    2024

    Loss allowance $ 55,278 28,021 18,947

    For credit risk, the assessment of impairment and the change of loss allowance, please refer to note 6 (ai) for details.

    FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

  2. Financial Instruments Measured at Fair Value through Profit or Loss

    Financial assets mandatorily measured at fair value through profit or loss:

    Non-hedge derivative instruments

    September 30,

    2025

    December 31, 2024 September 30, 2024

    Interest rate contracts

    $ 12,034,903

    14,235,075

    10,897,394

    Currency rate contracts

    35,902,605

    42,125,852

    43,447,119

    Options contracts

    1,910,573

    2,463,523

    2,093,478

    Cross currency swap contracts

    543,972

    544,162

    322,412

    Others

    1,589,011

    1,956,149

    2,055,061

    Subtotal

    51,981,064

    61,324,761

    58,815,464

    Non-derivative financial assets

    Government bonds

    9,155,783

    7,947,369

    24,492,758

    Corporate bonds

    17,243,516

    11,989,371

    21,805,577

    Financial bonds

    47,747,122

    41,459,380

    45,906,974

    Stocks

    686,052,040

    592,862,738

    564,619,792

    Beneficiary certificates

    735,443,999

    884,223,718

    880,045,694

    Commercial papers

    140,880,845

    113,428,760

    98,607,921

    Treasury bills

    8,554,722

    7,546,989

    5,703,117

    Beneficiary securities

    58,577,037

    49,503,343

    53,806,933

    Convertible corporate bonds

    34,069,877

    33,102,115

    33,513,945

    Structured products

    52,328,730

    51,363,062

    54,177,679

    Negotiable certificates of deposit

    805,291

    5,044,657

    4,530,382

    Others

    1,775,488

    2,608,941

    2,797,764

    Less: Guarantee deposits

    -

    -

    1,282,622

    Subtotal

    1,792,634,450

    1,801,080,443

    1,788,725,914

    Financial assets designated as at fair

    value through profit or loss:

    Government bonds

    989,794

    1,225,795

    776,432

    Financial bonds

    -

    -

    26

    Subtotal

    989,794

    1,225,795

    776,458

    Total

    $ 1,845,605,308

    1,863,630,999

    1,848,317,836

    FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

    Financial liabilities designated as at fair value through profit or loss:

    September 30,

    2025

    December 31, 2024 September 30, 2024

    Non-hedge derivative instruments

    Structured products

    $ 2,442,182

    2,497,270

    3,830,392

    Non-derivative financial liabilities Exchange traded notes

    98,282

    92,834

    109,165

    Financial bonds

    -

    37,296

    -

    Subtotal

    2,540,464

    2,627,400

    3,939,557

    Held-for-trading financial liabilities: Non-hedge derivative instruments

    Interest rate contracts

    11,403,517

    12,340,056

    9,856,604

    Currency rate contracts

    46,463,650

    67,962,452

    36,990,923

    Options contracts

    14,583,099

    14,072,766

    13,529,603

    Others

    1,383,063

    1,428,211

    1,713,130

    Subtotal

    73,833,329

    95,803,485

    62,090,260

    Non-derivative financial liabilities

    Stock borrowing and short selling

    14,717,637

    3,382,013

    2,502,668

    Bonds borrowing and short selling

    7,260,539

    3,977,203

    10,915,526

    Subtotal

    21,978,176

    7,359,216

    13,418,194

    Total

    $ 98,351,969

    105,790,101

    79,448,011

    1. The guarantee of financial assets measured at fair value through profit or loss provided as pledged assets, please refer to note 8 for details.

    2. The Bank subsidiaries are engaged in derivative transactions mainly to accommodate customers' needs, to manage their exposure positions, and to accommodate their fund needs in different currencies.

    3. The financial instruments at fair value through profit or loss are hybrid financial instruments or are designated for eliminating inconsistencies in accounting recognition.

    4. On October 7, 2024, Taipei Fubon Bank issued unsecured senior bank debentures amounting to US$1,150 thousand with a 6-month maturity and combination of fixed interest rate and combined interest rate (interval interest-bearing type). Taipei Fubon Bank may either redeem the bonds in full at the face value on the interest payment date or make bond repayments on the maturity date.

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The change in fair value attributable to changes in credit risk recognized as other comprehensive income was calculated as the difference between the total change in fair value of bank debentures and the change in fair value due to the change in market risk factors. The amount of fair value change attributable to market risk factor was calculated using benchmark interest yield curves as at the end of the reporting period holding the credit risk margin constant and the debtor's cost of funds with a maturity date, and discounted by estimated future cash flows.

Information on financial liabilities designated as at fair value through profit or loss by Taipei Fubon Bank, were as follows:

Changes in the fair value attributable to changes in the credit risk of financial

liabilities

Amount changed in current period

－For the nine months ended September 30, 2025 $ 65

－For the nine months ended September 30, 2024 $ (87)

Cumulative amount changed

－As of September 30, 2025 $ -

－As of December 31, 2024 $ (65) －As of September 30, 2024 $ (87)

The difference between the carrying amount and the contract maturity amount

Fair value

Less: Contract maturity amount

September 30,

$ -

37,296

-

-

37,709

-

$ -

(413)

-

2025

December 31,

2024

September 30,

2024

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