HSBC Taiwan Discovery Forum. Singapore November 7 th, 2014

Transcription

1 HSBC Taiwan Discovery Forum Singapore November 7 th, 2014

2 Disclaimer This presentation and the presentation materials distributed herewith may include forward-looking statements. 2014/3Q financial data are preliminary. All statements, other than statements of historical facts, that address activities, events or developments that SinoPac Financial Holdings Company ( SinoPac ) expects or anticipates will or may occur in the future (including but not limited to projections, targets, estimates and business plans) are forwardlooking statements. SinoPac s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to price fluctuations, actual demand, exchange rate fluctuations, market shares, competition, changes in legal, financial and regulatory frameworks, international economic and financial market conditions, political risks, cost estimates and other risks and factors beyond its control. In addition, SinoPac makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements. 2

3 Agenda SPH Operating Report (p. 2~ p.3) - Concentration of Real Estate Loan in Construction & Housepurchasing/repairing (p. 3) Financial Highlights (p. 4~ p. 6) - SinoPac Holdings (p. 4) - Bank SinoPac (p. 5) - SinoPac Securities (p. 6) Earnings Analysis (p. 7~ p. 15) - SPH Profit Contribution by Subsidiaries (p. 7) - SPH P&L Breakdown (p. 8) - SPH Profit Breakdown (p. 9) - BSP NIM & Spread (p. 10) - BSP Loan Portfolio (p. 11) - BSP Deposit Portfolio ( p. 12) - SPH Fee Income (p. 13) - SPH Operating Expense (p. 14) - BSP Asset Quality (p. 15)

4 Operating Report Modest operating performance, achieving after-tax ROAE of 13.21% 3Q net revenue NT$8,627Mn, QoQ -30.0%; 2014/1-9M net revenue NT$30,295Mn, YoY +25.1% 3Q pre-tax profit NT$4,386Mn, QoQ -9.9%; 2014/1-9M pre-tax profit NT$13,538Mn, YoY +37.9% 3Q after-tax profit NT$3,970Mn, QoQ -6.5%; 2014/1-9M after-tax profit NT$11,170Mn, YoY +34.1% Business operations remain stable resulting in continuous net interest and fee income growth 3Q net interest income NT$4,675Mn(54%), QoQ +2.8%; 2014/1-9M net interest income NT$13,619Mn, YoY +14.9% 3Q fee income NT$2,715Mn(31%), QoQ +14.1%; 2014/1-9M fee income NT$7,582Mn, YoY +19.2%, growth can be attributed to both wealth management and securities brokerage Major achievements SPS was the bookrunner of the first RMB bond issuance for ICBC (Singapore). The issuance was dual listed in both Singapore and Taiwan, of which RMB$2Bn was listed on Taiwan s Gretai Securities Market SPS underwrote ten USD denominated international bonds in 3Q for a total amount of US$6Bn, and the issuers include Société Générale, Deutsche Bank, Citi, Credit Suisse and DBS. Market share for number of issuance ranked first, nearing 48% BSP was awarded with Best Business Innovator and Best Human Capital Planning by Taiwan Academy of Banking and Finance s 7 th Taiwan Banking and Finance Best Practice Awards Fun Cashier received MOEA s 14 th e-21 Golden Network Awards, special recognition in Cloud Application Innovation Fun Cashier and 7-ELEVEN jointly provide customers and merchants more convenient payment method and logistic support 2

5 37.2% 36.8% 36.9% 36.5% Concentration of Real Estate Loan in Construction&House-purchasing/repairing Industry average BSP 39.6% 39.0% 38.5% 37.7% 35.5% 35.9% 34.2% 34.1% 33.7% 33.3% 33.5% 33.2% 34.0% 34.0% 33.7% 33.6% 33.9% 33.9% 34.0% 33.9% 34.2% 34.2% (August) 33.5% 33.3% 2011/2Q 3Q 4Q 2012/1Q 2Q 3Q 4Q 2013/1Q 2Q 3Q 4Q 2014/1Q 2Q 3Q Source: BSP and Central Bank of Taiwan 3

6 SPH Financial Highlights ; Mn Shares /1~9M YoY 2014/3Q 2014/2Q QoQ Share Capital 73,112 75,683 82,077 88, % 88,709 88, % Shares outstanding 7,311 7,568 8,208 8, % 8,871 8, % Total equity 90,089 97, , ,557 11% 116, , % Total assets 1,299,962 1,365,709 1,465,945 1,509, % 1,509,241 1,522, % Net income 3,069 9,624 10,791 11,170 34% 3,970 4,245-6% EPS (NT$) BVPS (NT$) ROAA 0.24% 0.72% 0.75% 0.98% 0.20% 1.05% 1.11% -0.06% ROAE 3.42% 10.26% 10.41% 13.21% 2.35% 13.81% 15.07% -1.26% CAR 126% 121% 105% 110% 4% 110% 104% 6% DLR 109% 110% 111% 112% 1% 112% 112% 0% 4

7 BSP Financial Highlights /1~9M YoY 2014/3Q 2014/2Q QoQ Share Capital 52,574 53,862 59,616 59, % 59,616 59, % Total equity 70,545 78,251 87,552 97,430 14% 97,430 93, % Total assets 1,215,534 1,266,443 1,357,033 1,378, % 1,378,113 1,397, % PPOP 7,167 9,325 12,950 13,718 40% 2,953 6,620-55% Net income 2,464 8,348 9,603 9,631 24% 3,328 3,740-11% EPS (NT$) BVPS (NT$) ROAA 0.21% 0.68% 0.72% 0.91% 0.13% 0.96% 1.06% -0.10% ROAE 3.55% 11.23% 11.46% 13.84% 1.30% 13.83% 16.20% -2.37% Leverage Total deposits 1,005,286 1,038,108 1,100,916 1,100, % 1,100,543 1,124, % Total loans 760, , , , % 814, , % L-to-D ratio 75.6% 77.0% 75.3% 74.0% -0.3% 74.0% 72.2% 1.8% NPL ratio 0.69% 0.34% 0.37% 0.22% -0.22% 0.22% 0.36% -0.15% Coverage ratio 177% 308% 305% 645% 396% 645% 393% 253% Reserve-to-loan ratio 1.22% 1.06% 1.12% 1.41% 0.31% 1.41% 1.43% -0.02% BIS ratio 14.01% 13.68% 12.45% 13.19% 0.50% 13.19% 12.68% 0.51% Tier 1 ratio 9.11% 9.13% 8.99% 9.63% 0.47% 9.63% 9.20% 0.43% Note1: loans portfolio includes credit card revolving balance and FA, excluding non-accrual loans. Note2: numbers are presented on consolidated basis. 5

8 SPS Financial Highlights /1-9M YoY 2014/3Q 2014/2Q QoQ Share capital 15,365 15,365 16,212 16, % 16,212 16, % Total equity 22,185 22,759 23,834 24, % 24,660 24, % Total assets 72,760 82,272 88, ,275 26% 109, , % Capital gain % % Recurring income 5,049 4,181 4,281 4,287 41% 1,520 1, % Net income 423 1,161 1,003 1, % % EPS (NT$) BVPS (NT$) BIS Ratio 465% 372% 351% 368% -13% 368% 336% 32% ROAA 0.56% 1.42% 1.19% 1.55% 0.70% 1.45% 1.57% -0.12% ROAE 1.88% 5.15% 4.32% 6.26% 3.19% 6.30% 6.39% -0.09% Leverage Brokerage market share Avg. balance of margin trading Margin trading market share Note: numbers are presented on consolidated basis. 4.80% 4.99% 5.23% 5.38% 0.22% 5.16% 5.47% -0.31% 16,925 12,514 13,897 17,257 28% 17,965 17, % 5.21% 5.50% 6.23% 6.54% 0.39% 6.54% 6.57% -0.03% 6

9 Profit Contribution by Subsidiaries 7.8% 9.7% 2014/3Q Other Subsidiaries SPS 3, ,033 3, % BSP BSP SPS Other Subsidiaries Total LT inv. Expenses SPH Net income (+/-) QoQ 11% 1% 73% 6% 3% 6% 5.3% 5.3% 10.0% 2014/1~9M 84.7% Other Subsidiaries SPS 9,631 1, ,374 11, BSP :better (+/-) 1, , ,837 YoY 24% 115% 27% 29% 56% 34% :worse BSP SPS Other Subsidiaries Total LT inv. Expenses SPH Net income 7

10 SPH P&L Breakdown 8,627-5, /3Q 800 4, ,970 Net profit Op exp. Provision Net profit before tax Tax Net income (+/-) -3, , QoQ 30% 2% 135% 10% 33% 6% 30,295-14, /1~9M -1,842 13,538-2,368 11,170 Net profit Op exp. Provision Net profit before tax Tax Net income (+/-) 6,076-1,261-1,093 3, ,837 YoY 25% 9% NA 38% 60% 34% Note1: :better :worse Note 2: numbers are presented on consolidated basis. 8

11 SPH Profit Breakdown Quarterly 12,321 8,213 8,713 9,347 8,627 Net interest income Net fee income 5,393 4,079 4,250 4,396 4,548 4,675 2,487 2,074 2,233 2,379 2,715 2,060 2,230 2,464 1,237 Others Net profit Year-to-date 2013/3Q 2013/4Q 2014/1Q 2014/2Q 2014/3Q 30,295 Yearly 39,008 24,219 32,932 11,850 13,619 15,240 28,171 16,099 17,869 6,361 6,008 7,582 9,094 7,653 8,594 8,239 11,325 9,814 5, /1~9M 2014/1~9M Note: numbers are presented on consolidated basis Last 4 Quarters 9

12 BSP NIM & Spread Interest earning assets & Net interest income NIM & Spread Interest earning assets NII Spread NIM Loan Deposit 1,242,916 3,756 3,894 4,019 1,295,504 4,135 4, % 2.42% 2.46% 2.48% 2.46% 1.63% 1.60% 1.58% 1.57% 1.55% 1.20% 1.22% 1.25% 1.27% 1.30% 0.80% 0.83% 0.89% 0.92% 0.91% 2013/3Q 2013/4Q 2014/1Q 2014/2Q 2014/3Q 2013/3Q 2013/4Q 2014/1Q 2014/2Q 2014/3Q Note: numbers are presented on consolidated basis. 10

13 BSP Loan Portfolio Breakdown /3Q YTD Total Loan 829, , % 383, , , , , , , , , , , , /3Q Consumer 2.9% SME, 18.3% Non- SME 270, , , , , ,831 Individual 45.3% Non-SME 33.5% SME 117, , , , , ,704 17,915 19,500 21,656 22,343 22,726 23, /1Q 2Q 3Q /1Q 2Q 3Q /1Q 2Q 3Q Corporate loans Individual loans Consumer loans Note1: loans portfolio includes credit card revolving balance and FA, excluding non-accrual loans. Note2: numbers are presented on consolidated basis. 11

14 BSP Deposit Portfolio Breakdown Total Deposits NTD Savings FX Savings FX TD NTD TD -2.2% 1,005,286 1,038,108 1,100,916 1,150,090 1,124,978 1,100,543 RMB Deposit 18,725-1% RMB$Mn 16,644 16, % 49.1% 42.1% 40.4% 40.8% 38.5% 12,533 9, % 7.3% 14.4% 17.3% 16.5% 16.5% 11.2% 12.2% 11.9% 11.6% 11.7% 12.6% 31.0% 31.5% 31.6% 30.7% 30.9% 32.4% Current deposits 45.0% /1Q 2014/2Q 2014/3Q Note: numbers are presented on consolidated basis. 2013/3Q 2013/4Q 2014/1Q 2014/2Q 2014/3Q 12

15 SPH Fee Income Breakdown 2013/3Q 2013/4Q 2014/1Q 2014/2Q 2014/3Q Fee income 2,715 2,074 2,233 2,487 2,379 Fee Income Breakdown 1,261 32% SPS related fee income 1, % 7% 7% FX/Others Loan Credit card % WM WM Credit card Loan FX/Others SPS related fee income 2014/3Q Note: numbers are presented on consolidated basis. 13

16 SPH Operating Expense Breakdown Quarterly 55% 55% 50% 12,321 58% 8,213 8,713 9,347 42% 8,627 Net profit Op exp 4,505 4,802 4,710 5,164 5,041 C/I Ratio 2013/3Q 2013/4Q 2014/1Q 2014/2Q 2014/3Q Year-to-date 30,295 Yearly 24,219 56% 49% 62% 28,171 32,932 56% 39,008 51% 13,654 14,915 17,414 18,456 19, /1~9M 2014/1~9M Note: numbers are presented on consolidated basis Last 4 Quarters 14

17 BSP Asset Quality 20,000 19,000 18,000 17,000 16,000 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Reserve/ Loan Ratio - NPL Reserve NPL Ratio Coverage Ratio % % % % % 0.44% 11,468 11, % 0.37% 0.36% 8,729 9,126 9, % 3,503 2,991 2,974 2,922 1, /3Q 2013/4Q 2014/1Q 2014/2Q 2014/3Q 1.10% 1.12% 1.15% 1.43% 1.41% 1.20% -0.80% Note 1: numbers are based on regulator s definition, excluding FA and credit card revolving balance. Note 2: numbers are presented on consolidated basis. 15

18 Appendix 1/13 SPH's Balance Sheet (Consolidated) - IFRS Pro Forma NT$ Mn Yearly Results Quarterly Results Q13 4Q13 1Q14 2Q14 3Q14 QoQ(%) YoY(%) YTD(%) Assets: Cash and cash equivalents 21,464 36,441 28,074 36,441 42,037 22,536 24, Due from the central bank and call loans to banks 87,672 61,148 79,466 61,148 91,082 90,802 85, Financial assets at fair value through profit or loss 57,105 54,465 56,304 54,465 74,671 79,415 79, Derivative financial assets for hedging Securities purchased under agreements to resell 3,754 2,658 3,010 2,658 10,023 26,582 21, Receivables, net 87, , , , , , , Current tax assets Discounts and loans, net 771, , , , , , , Available-for-sale financial assets 56,039 63,585 57,908 63,585 64,781 57,335 67, Held-to-maturity investments 219, , , , , , , Investments accounted for using equity method, net Other financial assets, net 27,585 42,100 32,717 42,100 72,031 65,645 48, Investment property, net 1,756 1,746 1,748 1,746 1,743 1,740 1, Property, plant and equipment, net 14,218 13,999 14,044 13,999 13,958 13,909 13, Intangible assets, net 3,125 3,041 3,068 3,041 3,028 2,991 3, Deferred tax assets 2,993 2,718 2,538 2,718 2,592 2,720 2, Other assets, net 11,043 9,830 12,387 9,830 17,229 20,049 9, Total Assets 1,365,709 1,465,945 1,428,337 1,465,945 1,546,737 1,522,549 1,509, Liabilities and equity Liabilities Deposits from the central bank and banks 70,454 87,589 70,467 87,589 92,681 78,895 70, Commercial papers issued 12,875 18,301 18,200 18,301 28,738 29,318 29, Financial liabilities at fair value through profit or loss 10,087 14,072 12,794 14,072 23,410 21,603 21, Derivative financial liabilities for hedging Securities sold under agreement to repurchase 22,609 20,099 19,607 20,099 19,647 24,104 36, Payable 37,142 34,183 31,750 34,183 31,865 38,037 39, Current tax liabilities 545 1, ,056 2,082 1,779 1, Deposit and remittance 1,026,128 1,086,645 1,077,617 1,086,645 1,136,662 1,113,228 1,087, Bank notes payable 43,002 45,087 43,089 45,087 43,488 45,987 48, Short-term borrowings 11,088 10,198 8,654 10,198 9,473 11,068 8, Long-term borrowings 8,120 10,145 8,445 10,145 9,029 7,873 7, Preferred stock liabilities Provisions 3,139 3,176 3,031 3,176 3,198 3,205 3, Other financial liabilities 15,635 18,125 18,263 18,125 21,659 26,037 28, Deferred income tax liabilities 1,299 1,240 1,265 1,240 1,324 1,296 1, Other liabilities 5,756 7,498 9,073 7,498 12,062 7,359 9, Total liabilities 1,267,982 1,357,438 1,322,944 1,357,438 1,435,347 1,409,831 1,392, Capital stock 75,683 82,077 82,077 82,077 82,077 88,709 88, Capital surplus 1,802 1,524 1,524 1,524 1,524 1,524 1, Retain earnings 20,633 22,775 20,377 22,775 25,731 20,594 24, Other equity interest (391) 2,070 1,354 2,070 1,998 1,830 1, Total equity attributable to owners of parent 97, , , , , , , Non-controlling interests TOTAL 1,365,709 1,465,945 1,428,337 1,465,945 1,546,737 1,522,549 1,509,241 (0.87)

19 Appendix 2/13 Balance Sheet of SPH and its subsidiaries for the 9 months ended Sep. 30, 2014 BSP SPS Trust Leasing Others Sum Adj. Items SPH (Consoliated) (Consolidated) (Consolidated) (Consolidated) Assets: Cash and cash equivalents 17,964 8, ,830-3,387 24,443 Due from the central bank and call loans to banks 85, , ,852 Financial assets at fair value through profit or loss 40,033 39, , ,377 Derivative financial assets for hedging Securities purchased under agreements to resell 16,340 4, , ,060 Receivables, net 140,447 32, ,597 1, ,890-1, ,427 Current tax assets 1, ,083 2,362-2, Discounts and loans, net 791, , ,788-2, ,012 Available-for-sale financial assets 64, ,061 67, ,664 Held-to-maturity investments 179, , ,543 Investments accounted for using equity method, net , , , Other financial assets, net 20,713 16, ,048 1,564 51,242-2,356 48,885 Investment property, net , ,430-2,693 1,737 Property, plant and equipment, net 10,882 2, , ,842 Intangible assets, net 1, , ,012 Deferred tax assets 2, , ,926 Other assets, net 4,489 4, , ,740 Total Assets 1,378, ,275 1,691 27, ,733 1,654, ,968 1,509,241 Liabilities and equity Liabilities Deposits from the central bank and banks 70, , ,212 Commercial papers issued, net 0 13, ,725 10,505 29, ,667 Financial liabilities at fair value through profit or loss 17,818 3, , ,107 Derivative financial liabilities for hedging Securities sold under agreement to repurchase 5,906 30, , ,067 Payable 18,372 19, ,871 40,858-1,463 39,395 Current tax liabilities 1, ,187 3,836-2,119 1,717 Deposit and remittance 1,093, ,093,600-5,744 1,087,856 Bank notes payable 48, , ,567 Short-term borrowings 0 2, , , ,558 Long-term borrowings 0 1, ,232 1,200 10,436-2,586 7,850 Preferred stock liabilities Provisions 2, , ,221 Other financial liabilities 16,872 11, , ,015 Deferred income tax liabilities , ,309 Other liabilities 3,981 3, , , ,127 Total liabilities 1,280,683 84, ,624 16,808 1,404,916-12,231 1,392,684 Capital stock 59,616 16,212 1,534 4,275 90, ,427-83,718 88,709 Capital surplus 10, ,524 12,383-10,859 1,524 Retain earnings 27,281 8, ,024 61,026-36,461 24,565 Other equity interest ,528 3,397-1,699 1,699 Total equity attributable to owners parent 97,430 24,660 1,505 4, , , , ,497 Non-controlling interests TOTAL 1,378, ,275 1,691 27, ,733 1,654, ,968 1,509,241

20 Appendix 3/13 SPH's P&L (Consolidated) - IFRS NT$ Mn Yearly Results Quarterly Results YTD Results Q13 4Q13 1Q14 2Q14 3Q14 QoQ(%) YoY(%) 9M13 9M14 YoY(%) Interest revenue 25,243 26,820 6,774 7,076 7,515 7,896 7, ,744 23, Interest expense 10,003 10,721 2,695 2,827 3,119 3,347 3, ,894 9, Net interest Income 15,240 16,099 4,079 4,250 4,396 4,548 4, ,850 13, Net revenues other than interest Commissions and fee revenues, net 7,653 8,594 2,074 2,233 2,487 2,379 2, ,361 7, Gains from financial assets and liabilities at fair value through P/L 4,215 5,845 1,670 1,801 2, ,044 3, Realized gains from available-for-sale financial assets Realized gain (loss) on HTM financial assets Realized gains from unquoted equity instrument NA Share of profit (loss) of associates and joint ventures accounted for using equity method NA , Foreign exchange gains, net 380 1, , (Impairment losses) reversal gains on assets NA NA Rental revenue Other revenues, net , ,184 1, Total net revenues 28,171 32,932 8,213 8,713 9,347 12,321 8, ,219 30, Bad debt expenses and guarantee liability provisions , , , , Operating expenses 17,414 18,456 4,505 4,802 4,710 5,164 5, ,654 14, Employee benefits expense 10,966 11,439 2,859 2,794 3,073 3,361 3, ,645 9, Depreciation and amortization Others 5,611 6,075 1,411 1,778 1,400 1,566 1, ,297 4, Bad debts and guarantee liability provisions & Operating expenses 16,848 20,430 5,343 6,028 5,064 7,453 4, ,403 16, Income (loss) before income tax 11,324 12,501 2,869 2,685 4,283 4,868 4, ,816 13, Income tax (benefit) expense 1,700 1, , ,483 2, Profit (loss) 9,624 10,791 2,462 2,458 2,955 4,245 3, ,333 11,

21 Appendix 4/13 P&L of SPH and its subsidiaries for the 9 months ended Sep. 30, 2014 BSP SPS Trust Leasing Others Sum Adj. Items SPH (Consoliated) (Consolidated) (Consolidated) (Consolidated) Interest revenue 21, , ,283 Interest expense 9, , ,664 Net interest Income 12, , ,619 Net revenues other than interest Commissions and fee revenues, net 4,783 2, , ,582 Gains from financial assets and liabilities at fair value through P/L 2,530 1, , ,724 Realized gains from available-for-sale financial assets Realized gain (loss) on held-to-maturity financial assets Realized gains from unquoted equity instrument Share of profit (loss) of associates and joint ventures accounted for using equity method ,379 11,286-11, Foreign exchange gains, net (Impairment losses) reversal gains on assets Rental revenue Other revenues, net 4, , ,184 Total net revenues 24,622 4, ,793 42,050-11,755 30,295 Bad debt expenses and guarantee liability provisions 1, , ,842 Operating expenses 10,904 3, , ,915 Employee benefits expense 6,776 2, , ,581 Depreciation and amortization Others 3, , ,624 Bad debts and guarantee liability provisions & Operating expenses 12,743 3, , ,757 Income (loss) before income tax 11,878 1,231 (133) ,476 24,911-11,373 13,538 Income tax (benefit) expense 2, (10) , ,368 Profit (loss) 9,631 1,140 (123) ,532 22,543-11,373 11,170 Attributable to Profit(loss), attributable to owners of parent 9,631 1,140 (123) ,532 22,543-11,373 11,171 Profit(loss), attributable to non-controline interests (0) (0) 0 (0)

22 Liabilities and Equity Liabilities Deposits from the central bank and banks 70,454 87,589 70,467 87,589 92,681 78,895 70, Financial liabilities at fair value through profit or loss 8,672 11,832 10,187 11,832 20,681 18,387 17, Derivative financial liabilities for hedging Securities sold under agreement to repurchase 1, , Payable 22,252 17,233 16,449 17,233 15,347 17,117 18, Current tax liabilities ,860 1,559 1, Deposit and remittance 1,029,885 1,092,092 1,084,167 1,092,092 1,141,144 1,117,707 1,093, bank debentures 43,002 45,087 43,089 45,087 43,488 45,987 48, Short-term borrowings Other financial liabilities 5,685 7,620 7,590 7,620 10,865 15,340 16, Provisions 2,860 2,880 2,755 2,880 2,905 2,913 2, Deferred tax liabilities 1, Other liabilities 1,870 2,612 2,849 2,612 9,008 4,236 3, Total liabilities 1,188,192 1,269,481 1,239,842 1,269,481 1,339,819 1,303,512 1,280, Capital stock 53,862 59,616 59,616 59,616 59,616 59,616 59, Capital surplus 10,413 10,413 10,413 10,413 10,413 10,413 10, Retain earnings 13,844 17,650 15,877 17,650 20,213 23,953 27, Other equity interest NA NA Total equity 78,251 87,552 85,747 87,552 90,370 93,989 97, TOTAL 1,266,443 1,357,033 1,325,589 1,357,033 1,430,189 1,397,501 1,378, Appendix 5/13 BSP's Balance Sheet (Consolidated) - IFRS Yearly Results Quarterly Results Q13 4Q13 1Q14 2Q14 3Q14 QoQ(%) YoY(%) YTD(%) Assets Cash and cash equivalents 19,132 34,215 26,087 34,215 39,846 19,914 17, Due from the central bank and call loans to banks 87,672 61,148 79,466 61,148 91,082 90,802 85, Financial assets at fair value through profit or loss 27,631 25,969 29,465 25,969 43,077 42,293 40, Derivative financial assets for hedging Securities purchased under agreements to resell ,101 22,657 16, Receivables, net 61, , , , , , , Current tax assets 1,240 1,290 1,302 1,290 1,297 1,173 1, Discounts and loans, net 770, , , , , , , Available-for-sale financial assets 55,788 59,756 55,594 59,756 61,314 53,899 64, Held-to-maturity investments 219, , , , , , , Other financial assets, net 4,459 16,030 8,312 16,030 44,134 37,283 20, Property, plant and equipment, net 11,099 11,002 10,996 11,002 11,000 10,951 10, Intangible assets, net 2,047 1,982 2,000 1,982 1,976 1,949 1, Deferred tax assets 2,813 2,570 2,392 2,570 2,462 2,434 2, Other assets, net 2,277 1,485 1,852 1,485 10,401 13,058 4, Total 1,266,443 1,357,033 1,325,589 1,357,033 1,430,189 1,397,501 1,378,

23 Appendix 6/13 BSP's P&L (Consolidated) - IFRS NT$ Mn Yearly Results Quarterly Results YTD Results Q13 4Q13 1Q14 2Q14 3Q14 QoQ(%) YoY(%) 9M13 9M14 YoY(%) Interest revenue 23,663 24,994 6,312 6,561 6,960 7,287 7, ,432 21, Interest expense 9,401 10,120 2,556 2,667 2,941 3,152 2, ,453 9, Net interest Income 14,262 14,874 3,756 3,894 4,019 4,135 4, ,980 12, Net revenues other than interest 0 Commissions and fee revenues, net 4,652 5,522 1,298 1,322 1,506 1,511 1, ,199 4, Gains from financial assets and liabilities at fair value through P/L 2,719 4,133 1,269 1,095 1, ,038 2, Realized gains from available-for-sale financial assets NA Realized gain (loss) on held-to-maturity financial asset Realized gains from unquoted equity instrument Foreign exchange gains, net 325 1, NA , (Impairment losses) reversal gains on assets NA Rental revenue Other revenues, net , ,167 4, Total net revenues 21,898 26,378 6,565 6,584 7,557 10,360 6, ,793 24, Bad debt expenses and guarantee liability provisions , , , , Operating expenses 12,573 13,428 3,286 3,466 3,412 3,740 3, ,962 10, Employee benefits expense 7,699 8,049 2,037 1,791 2,135 2,412 2, ,258 6, Depreciation and amortization Others 4,311 4,726 1,087 1,509 1,111 1,161 1, ,217 3, Bad debts and guarantee liability provisions & Operating expenses 11,976 15,378 4,105 4,666 3,793 6,011 2, ,713 12, Income (loss) before income tax 9,922 10,999 2,460 1,919 3,765 4,348 3, ,081 11, Income tax (benefit) expense 1,574 1, , ,294 2, Profit (loss) 8,348 9,603 2,053 1,816 2,563 3,740 3, ,787 9,

24 7.81 Appendix 7/13 SPS's Balance Sheet (Consolidated)-IFRS Pro Forma 4Q12 4Q13 Yearly Results Quarterly Results YTD Results Q13 4Q13 1Q14 2Q14 3Q14 QoQ(%) YoY(%) YTD(%) Assets: Current assets 76,340 83,050 81,125 83,050 87,901 97, , Cash and cash equivalents 2,842 4,267 5,466 4,267 3,191 3,424 8, Financial assets at fair value through profit or loss 29,637 28,574 26,927 28,574 31,645 37,156 39, Securities purchased under agreements to resell 3,612 2,658 3,010 2,658 2,882 3,846 4, Margin loans receivable 12,593 15,784 15,881 15,784 19,990 21,022 21, Other current assets 27,656 31,768 29,842 31,768 30,194 31,570 29, Non-current assets 5,932 5,858 5,870 5,858 5,754 5,729 5, Financial assets at cost 1,009 1, , Properties and equipments, net 2,442 2,381 2,406 2,381 2,354 2,339 2, Intangible & other assets 2,481 2,451 2,474 2,451 2,405 2,453 2, Total assets 82,272 88,908 86,996 88,908 93, , , Liabilities and stockholders' equity Liabilities Current liabilities 59,102 63,698 62,538 63,698 67,986 77,050 83, Liabilities for bonds with attached repurchase agreements 21,644 19,647 19,150 19,647 19,098 23,624 30, Futures traders' equity 9,964 10,535 10,703 10,535 10,824 10,727 11, Notes payable and accounts payable 10,270 11,971 11,544 11,971 13,942 15,647 14, Other current liabilities 17,224 21,545 21,141 21,545 24,123 27,051 27, Non-current liabilities 411 1,377 1,117 1,377 1,407 1,433 1, Total liabilities 59,513 65,074 63,655 65,075 69,393 78,483 84, Capital stock 15,365 16,212 16,212 16,212 16,212 16,212 16, Capital surplus Retained earnings 7,366 7,504 7,048 7,504 7,867 7,909 8, Other items of equity Total equity 22,759 23,834 23,341 23,834 24,262 24,264 24, TOTAL 82,272 88,908 86,996 88,908 93, , , Note: SPS s numbers are based on accounting rules of securities firms.

25 Appendix 8/13 Yearly Results Quarterly Results YTD Results Q13 4Q13 1Q14 2Q14 3Q14 QoQ(%) YoY(%) 9M13 9M14 YoY(%) Net interest income , Net fee income 2,828 2, ,993 2, Gains (Losses) on sales of securities, net Stock affairs agent fees Dividend income Gains (Losses) on warrant issued, net Gains (Losses) from futures transactions Gains (Losses) from options transactions SPS's P&L (Consolidated)-IFRS Pro Forma Gains (Losses) from derivative instruments transactions Gains (Losses) from valuation of operating securities Other operating income Non-operating income-net Total net revenues 5,474 5,360 1,397 1,741 1,596 1,657 1, ,619 4, Operating expenses 4,221 4,319 1,031 1,238 1,139 1,225 1, ,081 3, Pre-tax income (loss) 1,252 1, , Income tax benefit (expense) Net income (Loss) 1,161 1, , Note: SPS s numbers are based on accounting rules of securities firms.

26 Appendix 9/13 BSP's Loan Breakdown (Consolidated) Yearly Results Quarterly Results Items Q13 4Q13 1Q14 2Q14 3Q14 QoQ(%) YoY(%) YTD(%) Corporate loans Manufacturing 178, , , , , , , Electronics Indusrty 78,823 81,554 68,685 81,554 75,033 69,504 72, Chemical products 55,272 60,664 53,051 60,664 53,917 54,035 54, Conventional industry 42,575 45,512 44,823 45,512 49,749 48,735 47, Electric fixture 1,739 1,518 1,891 1,518 2,412 2,079 2, FI & security house & insurance 17,307 19,712 17,942 19,712 23,636 22,824 17, Installment & leasing 5,451 5,030 4,092 5,030 12,566 13,442 13, Construction & real estate 51,044 49,925 49,146 49,925 42,075 41,885 41, Wholesales/retail 59,660 80,988 72,707 80,988 81,374 83,871 83, Service industry 36,941 37,657 39,265 37,657 38,296 38,475 39, State-owned company 33,150 30,938 33,299 30,938 30,618 29,588 28, Others 16,146 19,836 19,756 19,836 16,891 14,572 16, Factoring 13,383 5,777 13,362 5,777 4,620 4,395 5, Sub total 411, , , , , , , Individual loans Mortgage loans 362, , , , , , , Car loans and others 5,751 7,657 7,104 7,657 8,915 9,312 9, Sub total 368, , , , , , , Consumer loans Unsecured loans 12,054 15,234 15,442 15,234 15,111 15,511 15, Credit card 8,966 7,628 7,882 7,628 7,394 7,463 7, Sub total 21,020 22,861 23,324 22,861 22,505 22,974 22, Total 801, , , , , , , Note: Loans portfolio includes non-accrual loans.

27 Appendix 10/13 NPL BSP's Loan Asset Quality Yearly Results Quarterly Results YTD Results Q13 4Q13 1Q14 2Q14 3Q14 QoQ(%) YoY(%) 9M13 9M14 YoY(%) 90-days NPLs - beginning 5,081 2,673 2,403 3,503 2,991 2,974 2, ,673 2, New NPL influx 2,618 4,256 2, ,415 1, NPL recovery 4,172 1, , ,260 1, Write-offs 854 2, , days NPLs - ending 2,673 2,991 3,503 2,991 2,974 2,922 1, ,503 1, Total reserves for loans 8,241 9,126 8,729 9,126 9,336 11,468 11, ,729 11, Provisions for loan loss 2 2,836 1,069 1, , ,529 2, Recovery - Loan , NPL ratio 0.34% 0.37% 0.44% 0.37% 0.37% 0.36% 0.22% -0.15% -0.22% 0.44% 0.22% -0.22% Coverage ratio % % % % % % % % % % % % Note: Loans portfolio includes non-accrual loans and is on a consolidated basis.

28 Appendix 11/13 BSP's Fee Breakdown (Consolidated) Yearly Results Quarterly Results YTD Results Q13 4Q13 1Q14 2Q14 3Q14 QoQ(%) YoY(%) 9M13 9M14 YoY(%) Wealth management 2,845 3, ,004 1, ,691 3, Mutual funds 1,165 1, ,282 1, Trust & custodian bank Life insurance 1,462 1, ,237 1, Property insurance Loan fees Corporate loans Individual & consumer loans Factoring & A/R financing Credit card Others Import & export service Guarantees & acceptances Others Total fee income 4,652 5,522 1,298 1,322 1,506 1,511 1, ,199 4,

29 Appendix 12/13 BSP's Credit Card Business Yearly Results Quarterly Results YTD Results Q13 4Q13 1Q14 2Q14 3Q14 QoQ(%) YoY(%) 9M13 9M14 YoY(%) Credit card business Cards in force(thousand) 2,248 2,137 2,124 2,137 2,151 2,164 2, % 1.89% 2,124 2, % Active cards(thousand) 1,324 1,308 1,279 1,308 1,294 1,284 1, % 1.77% 1,279 1, % Account receivables 17,116 16,684 16,534 16,684 15,682 17,423 16, % -0.24% 16,534 16, % Revolving balance 5,911 5,197 5,337 5,197 4,961 4,859 4, % -6.63% 5,337 4, % Total consumption 88,451 90,042 21,926 23,168 21,421 23,244 22, % 3.73% 66,875 67, % Avg spending per card(nt$) 66,495 69,666 17,158 17,843 16,511 18,054 17, % 2.22% 51,821 52, % Asset quality NPL ratio(90-day past due) 0.44% 0.32% 0.34% 0.32% 0.31% 0.24% 0.28% 0.04% -0.06% 0.34% 0.28% -0.06% Coverage ratio 429% 593% 566% 593% 654% 767% 715% -51% % 566% 715% 149% Write-offs % % % Net charge off ratio -0.92% -0.83% -0.83% -0.83% -0.76% -0.77% -0.83% -0.05% 0.01% -0.83% -0.83% 0.01%

30 Appendix 13/13 FENB Summary Ratios US$mn Yearly Results Quarterly Results YTD Results Q13 4Q13 1Q14 2Q14 3Q14 9M13 9M14 Net income after tax Total assets 1,133 1,319 1, ,427 1,397 1,323 1,397 Total equity Total deposits ,031 Total loans Per Share Data EPS(after-tax)(US$) DuPont Analysis ROAA(after-tax) (%, annualize YTD earnings) 2.17% 0.56% 0.32% 0.29% 0.36% 0.08% 0.57% 0.66% 0.34% ROAE(after-tax) (%, annualize YTD earnings) 8.85% 2.18% 1.24% 1.24% 1.55% 0.34% 2.71% 2.50% 1.52% Loan-to-Deposit Ratio (%) 80.17% 92.12% 81.69% 92.12% 90.77% 82.78% 88.42% 81.69% 88.42% Loan to Deposit Spread (%) 3.87% 3.52% 3.43% 3.18% 3.08% 3.11% 3.04% 3.70% 3.08% NIM (%) 3.25% 2.83% 2.76% 2.57% 2.55% 2.57% 2.32% 2.96% 2.48% Cost/Income Ratio (%) 83.53% 83.87% 84.56% 85.41% 79.78% 69.93% 64.42% 83.35% 71.00% Asset Quality Ratios NPLs / Total loans (%) 2.20% 0.15% 0.66% 0.15% 0.18% 0.18% 0.10% 0.66% 0.10% Reserve / NPLs (%) % % % % % % % % % Write-off (US$) Leverage & Solvency Ratios BIS (%) 32.45% 27.77% 26.89% 27.65% 27.50% 24.62% 24.21% 26.89% 24.21% Tier 1 Ratio (%) 31.18% 26.51% 25.63% 26.39% 26.24% 23.36% 22.95% 25.63% 22.95%