Fubon Financial 1H2012 Interim Update

Transcription

1 Fubon Financial 1H2012 Interim Update

2 Disclaimer This meeting may contain forward-looking statements with respect to the financial condition, results of operations and business of the company. These forward-looking statements represent the company s expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed. Certain statements, such as those that include the words potential, estimated, and similar expressions or variations on such expressions may be considered forward-looking statements. Financial numbers in this report may include preliminary unaudited numbers or management accounts. 2

3 Agenda Performance highlights of the group Performance review of banking business Performance review of insurance business Overseas deployment update Appendix 3

4 Fubon Financial Net income breakdown Net income as of June, 2012=NT$10,960m Net income by subsidiaries NT$m FBHK, 800, 6% Securities, 551, 4% Others, (682), -6% 15,157 1H11 1H12 10,960 P&C, 1,544, 13% TPFB, 7,169, 58% 5,818 7,169 5,271 Life, 1,577, 13% 1,577 1,907 1,544 1, Fubon FHC TPFB Life P&C Securities Note: NT$1,289 m of committed compensation cost to government regarding sports lottery business 4

5 Assets breakdown by subsidiaries NT$bn Total assets=nt$3,903 billions (June 31, 2012) Securities, 38, 1% P&C, 67, 2% FBHK, 235, 6% Assets YoY growth by subsidiaries 11.7% 9.9% Fubon FHC 17.0% -3.9% 0.2% TPFB Life P&C Securities FBHK TPFB, 1,612, 41% -31.8% Assets-to-Equity (x) Life, 1,975, 50% H Fubon FHC TPFB Life P&C Securities FBHK 5

6 Fubon Financial Return on assets and return on equity Return on assets Return on equity 0.57% 0.79% 0.61% 0.86% 0.22% (1) 0.58% 11.32% 9.35% 13.54% 3.56% (1) 9.23% 0.04% (2) 7.03% 0.68% (2) 0.64% 0.54% 9.98% 8.55% H H2012 Note: (1) Disposal gains of NT$8,029m of Fubon Multimedia Technology in 2011 (2) Disposal gains of NT$810m of Fubon Multimedia Technology in 1H2012 (3) Annualized basis 6

7 Fubon Financial Per share calculations Book value per share (NT$) EPS (NT$) (1) (2) H H2012 Note: (1) Disposal gains of NT$8,029m of Fubon Multimedia Technology in 2011 (2) Disposal gains of NT$810m of Fubon Multimedia Technology in 1H2012 7

8 Available-for-sale movement in shareholder equity Fubon FHC Constituents of AFS NT$m +4,544 23, ,242 NT$ m Taipei Fubon Bank Dec-11 2,565 Jun-12 2,818 18,894 Fubon Securities Fubon Insurance 930 1, ,343 Other subsidiaries (533) (28) Fubon Life 30,856 34,905 Fubon FHC 18,894 24,242 Changed in 1Q 2012 Changed in 1H2012 * Note: The AFS outstanding in Fubon FHC includes deduction of NT$16.6bn, which is the AFS value carried from ING transaction. Balance Dec 2011 Balance Mar 2012 Balance June

9 Cash dividend from domestic stock investment 8,607 9,147 1H 2H (estimates) NT$m 7,597 6,773 6,261 8,456 5,170 7,062 2, , Fubon FHC Fubon Life Fubon Insurance Taipei Fubon Bank Fubon Securities 9

10 Fubon Financial Profit breakdown by business groups NT$m Investment Management, 1,861, 12% Pretax profit by business groups Consumer Finance, 2,334, 15% Financial Market, 1,729, 11% Wealth Management, 2,067, 14% NT$m Pretax profit- Business group 1, Financial Market 1H11 1H12 2,259 2,067 Wealth Management 4,261 3,802 Corporate & Investment Bank 7,629 Insurance, 2,972, 20% Corporate & Investment Bank, 4,261, 28% 2, ,861 2,388 2,334 Note: Sport lottery business is excluded Insurance Investment Management Consumer Finance 10

11 Agenda Performance highlights of the group Performance review of banking business Performance review of insurance business Overseas deployment update Appendix 11

12 Taipei Fubon Bank Loan breakdown Total loans (1) (NT$bn) YoY +14.2% Credit card revolving YoY -1.3% Consumer - unsecured YoY +33.1% Consumer - secured YoY +5.3% Mortgage YoY +3.6% Corporate YoY +5.9% Government YoY +68.9% Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Note: (1) Overdue loans not included.. 12

13 Taipei Fubon Bank Loan and deposit NTD deposit* mix (NT$bn) Loan-to-deposit ratio of the Bank % 50.3% 50.3% 52.1% 54.6% 49.8% 49.7% 49.7% 47.9% 45.4% Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 USD deposit* mix (NT$bn) % 80.8% 82.0% 79.8% 82.7% 47.7% 50.3% 48.8% 53.3% 53.5% 52.3% 49.7% 51.2% 46.7% 46.5% Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Jun-11 Sep-11 Dec-11 Mar-12 June-12 Demand deposits Time deposits * Note: The data is on quarterly average basis 13

14 Taipei Fubon Bank Interest yields overview Loan rate(incl. Credit cards) Loan deposit spread Deposit rate 1.76% 1.77% 1.80% 1.83% 1.87% 1.93% 2.03% 2.09% 2.05% 2.05% 1.30% 1.29% 1.28% 1.31% 1.32% 1.32% 1.35% 1.37% 1.32% 1.32% 0.46% 0.48% 0.52% 0.52% 0.55% 0.61% 0.68% 0.72% 0.73% 0.73% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Avg rate of IEA NIM Avg rate of IBL 1.44% 1.46% 1.50% 1.50% 1.53% 1.61% 1.70% 1.78% 1.78% 1.73% 0.96% 0.51% 0.93% 0.93% 0.93% 0.96% 0.98% 0.99% 1.01% 1.02% 0.55% 0.59% 0.59% 0.62% 0.68% 0.76% 0.82% 0.81% 0.98% 0.80% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 14

15 Taipei Fubon Bank Interest & fee income NT$m Net interest income Net fee income 1,952 2,168 1,944 2,080 1,909 2,327 3,721 3,266 3,509 3,565 3,604 3,745 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Major Incomes 5,219 5,677 5,509 5,684 5,630 6,073 Net Fee Income / Major Incomes 37% 38% 35% 37% 34% 38% Note: Fees booked under insurance agency subsidiaries are excluded. 15

16 Taipei Fubon Bank Net fee income breakdown NT$m Others FX Syndication, facoring, gurantee Credit card Wealth management ,408 1,602 1,436 1,575 1,446 1,818 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q % 73.5% 73.5% 76.7% 75.6% 77.8% WM fee as % of total banking fee Note: Please refer to attachment 4 for definition 16

17 Taipei Fubon Bank Wealth management business Wealth management sales breakdown NT$m Insurance Discretionary trust account Structured products Domestic mutual funds Foreign mutual funds 14,797 11, ,086 4,651 33, ,772 3,835 38,139 15, ,880 4,434 26,480 19, ,775 2,835 15,826 16, ,924 3,364 20,939 27,963-11,195 2,506 14,355 Total Wealth Management Fees (NT$m) 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 1,408 1,602 1,436 1,575 1,446 1,818 17

18 Taipei Fubon Bank Other revenue breakdown Revenue mix of Financial Market Group (NT$m) Revenue from TMU business (NT$m) TMU interest rate related FX & Option Other ,212 1, Q11 2Q11 3Q11 4Q11 1Q12 2Q H

19 Taipei Fubon Bank Loan book quality NPL ratio Loan loss reserve & credit cost NT$m H % 0.26% 0.26% 0.24% 0.21% Provision 3,937 1,020 1,060 (641) Write-Off (4,965) (2,305) (712) (223) Jun-11 Sep-11 Dec-11 Mar-12 June-12 Coverage ratio Recovery 1,812 1,646 2,183 1,091 Others (44) (13) % % % % % Reserve 6,627 7,123 9,697 9,911 Provision as of average loan* Annualized credit cost 0.48% 0.12% 0.11% -0.12% Jun-11 Sep-11 Dec-11 Mar-12 June-12 * Note: Credit card revolving and guarantee reserve included. 19

20 Corporate loan quality update Net NPL formation of corporate loans NPL ratio and coverage of corporate loans 500 ProMOS in NPL status 1.1% 0.9% 0.9% NPL ratio Coverage ratio % 350.0% 300.0% 250.0% % 200.0% 150.0% 0.5% 106.1% 100.0% 0.45% 50.0% (300) 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 0.3% Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun % 20

21 Mortgage quality: NPL amount and NPL ratio Overdue 30+ days loans Overdue 90 day+ loans 900 NT$m 900 NT$m Mar-10' Jun-10' Sep-10' Dec-10' Mar-11' Jun-11' Sep-11' Dec-11' Mar-12' Jun-12' Mar-10' Jun-10' Sep-10' Dec-10' Mar-11' Jun-11' Sep-11' Dec-11' Mar-12' Jun-12' Overdue ratio: 30+ day Overdue ratio: 90+ days 0.60% 0.60% 0.40% 0.40% 0.22% 0.19% 0.20% 0.20% 0.03% 0.04% 0.00% 0.00% Mar-10' Jun-10' Sep-10' Dec-10' Mar-11' Jun-11' Sep-11' Dec-11' Mar-12' Jun-12' Mar-10' Jun-10' Sep-10' Dec-10' Mar-11' Jun-11' Sep-11' Dec-11' Mar-12' Jun-12' 21

22 Agenda Performance highlights of the group Performance review of banking business Performance review of insurance business Overseas deployment update Appendix 22

23 Fubon Insurance Operating snapshot Direct written premium breakdown Net combined ratio Auto Fire Marine Engineering Health/Injury Others Net claim ratio Net expense ratio NT$m 12,680 1,220 1, ,111 2,750 11,607 1,219 1, ,565 13,870 1,300 1, , % 89.0% 91.2% 34.5% 39.6% 34.9% 5,597 5,737 6, % 59.6% 56.3% 1H11 2H11 1H12 1H11 2H11 1H12 23

24 Fubon Life- FYP breakdown by products NT$m 1H11 Total FYP = NT$103,894million 1H12 Total FYP = NT$158,937 million Health, Accidents and others 2.4% Traditional Life-Regular 17.6% Interest- Sensitive Annuity 11.3% Investment- Linked 2.3% Traditional Life-Regular 17.2% Health, Accidents and others 1.8% Interest- Sensitive Annuity 5.2% Investment- Linked 0.2% Traditional Life-Single 66.4% Traditional Life-Single 75.6% 24

25 Underwriting revenue and expenses 1H2011 1H2012 NT$m 226, ,997 NT$m 138,078-50,482-93,129-66,397-9,227-6,124-20,884-10,938-7,405-27,254 Total earned premium Net provision reserve Claim and benefit expense Net commission expense General and administrative expense Total Total earned premium Net provision reserve Claim and benefit expense Net commission expense General and administrative expense Total 25

26 Fubon Life- FYPE breakdown by products NT $m 1H11 FYPE = NT$29,068 million 1H12 FYPE = NT$38,818 million Health, Accidents and others 8.3% Interest- Sensitive Annuity 4.0% Investment- Linked 1.5% Health, Accidents and others 7.0% Interest- Sensitive Annuity 2.1% Investment- Linked 0.3% Traditional Life 86.2% Traditional Life 90.6% 26

27 Fubon Life- Breakdown by channels Breakdown by FYP Breakdown by FYPE Other Bancassurance-TPFB Bancassurance-External Tied agents 10% 10% 23% 24% 15% 14% 19% 19% 51% 52% 33% 34% 16% 14% 33% 33% 1H11 1H12 1H11 1H12 27

28 Fubon Life- Total premium breakdown by products 1H11 Total premium = NT$170,621 million NT $m 1H12 Total premium = NT$238,696 million Interest- Sensitive Annuity 10.1% Investment- Linked 7.1% Health, Accidents and others 10.8% Interest- Sensitive Annuity 6.0% Investment- Linked 3.8% Health, Accidents and others 8.1% Traditional Life 72.0% Traditional Life 82.1% 28

29 Investment portfolio 2011/6/ /12/ /6/30 (NT$bn) Amount % Amount % Amount % Deposit and Cash equivalents % % % Domestic fixed income % % % Overseas fixed income % % % Domestic equity % % % Overseas equity % % % Mortgage loans % % % Policy loans % % % Real estate % % % Total Investments 1, % 1, % 1, % Domestic % 1, % 1, % Overseas % % % 29

30 Overseas fixed income portfolio Overseas fixed income by region European fixed income by country Eurozone Non-eurozone Europe US Asia Other 3.1% 4.5% 6.2% 10.4% 16.7% 19.6% Spain 9.5% Other Europe 2.2% Switzerland 10.4% 39.9% Germany 21.9% 37.4% 38.8% France 24.5% 13.6% 33.0% 13.5% 27.9% 11.5% 23.9% Netherlands 10.6% United Kingdom 20.8% 1H H12 30

31 Hedging cost and composition Q 12 2Q12 1H12 Composition as of 30 June, 2012 (NT$bn) Hedging cost FX gain/ loss (1) FX gain/ loss (2) (In bps) Other currencies 6.2% USD unhedged 6.2% AFS position* 6.0% Hedging cost -81bps -61bps -45bps -53bps Hedging cost including FX -94bps -160bps -79bps -118bps gain/loss (1) Hedging cost including FX bps -77bps -95bps gain/loss (2) Note: (1) without FX reserve mechanism; (2) Including FX reserve mechanism Note: Oversea equities plus mutual funds Fully hedge 81.6% 31

32 Cost of liability & Investment return 4.19% 4.16% 4.13% 4.10% 3.82% 3.80% 3.52% 3.63% Jun-11 Dec-11 Mar-12 Jun-12 32

33 Agenda Performance highlights of the group Performance review of banking business Performance review of insurance business Overseas deployment update Appendix 33

34 Performance Highlights of Fubon Bank HK HK$m 1H H 2012 HoH Net interest income % Net Fee and Commission income % Other income * % Operating expenses * (420) (394) -6% Operating profit before gains and impairment losses % (Provision) / write-back for loan losses % Net non-operating income % Income before tax % Net Income % Profit attributable to ordinary shareholders % * Excluding HK$137.2m net gain from collateral recovery of Lehman Brothers in other income and HK$105.3m expenses due to collateral recovery payments to the bondholders in operating expenses, both in 1H

35 Key financial ratios of Fubon Bank HK Impaired loan ratio Coverage ratio 0.50% 97.96% 96.54% 0.33% 81.66% 0.07% Jun-11 Dec-11 Jun-12 NIM Jun-11 Dec-11 Jun-12 ROA 1.12% 1.09% 1.22% 0.58% 0.46% 0.65% Jun-11 Dec-11 Jun-12 Jun-11 Dec-11 Jun-12 35

36 Financial highlight of Xiamen Bank Condensed P&L NPL ratio (%) RMB$m 1H H 2012 HoH NII % Interest income 1,025 1,508 47% Interest expense % Net fees % Investment (57) 66 N.M. Others 0 6 N.M. Total revenue % Expense % PPoP % Provision % Others (1) 7 Tax % Net profits % ROAA 0.77% 1.14% ROAE 16.0% 22.1% NIM 2.88% 2.53% H 2012 Coverage ratio (%) H

37 Growth in Xiamen Bank Loan distribution (RMB$m) Deposit distribution (RMB$m) From Xiamen From other cities From Xiamen From other cities 8,935 11, % 13,605 2,862 21% 15,475 3,989 26% 40,061 1,387 3% 53,653 7,114 13% 45,657 11,079 24% 8, % 10,069 91% 10,743 79% 11,486 74% 18,888 18, % 38,674 97% 46,539 87% 34,578 76% H H

38 Fubon P&C (China) business progress Gross written premium breakdown (1H12) Gross written premium RMB$m Personal Liability 6.4% Others 5.2% Personal line Commercial line Commercial Property 14.5% Personal Accident 9.4% Auto 64.6% H11 2H11 1H12 38

39 Thank you 39

40 Fubon Financial -- Income statement (NT$ million) TPFB P&C Fubon Life Sec Revenues FHC Stand alone FHC Consolidate Insurance premiums - 9, , ,881 Commissions and fees 4, ,624-6,043 Loan interest 9, ,450 Other interest and dividends 3, , ,584 Principal transactions 2, , ,924 Realized gains (losses) -- Debt , ,192 Realized gains (losses) -- Equity , ,918 Other gains (losses) 2,567 (80) (3,895) (1,186) Other income ,675 2,140 Total revenues 20,498 10, ,388 2,818 11, ,022 Interest expense 5, ,242 Total revenues, net of interest expense 14,590 10, ,383 2,809 11, ,780 Benefits, claims, and credit losses Provisions for benefits and claims - 5, , ,689 Provision for credit losses (641) (629) Total benefits, claims and credit losses (641) 5, , ,061 Operating expenses 6,780 3,110 19,463 2, ,846 Net operating profit 8,451 1,854 1, ,326 12,873 Net non-operating income 28 (30) Pretax income 8,479 1,824 1, ,333 13,100 Income taxes 1, ,140 Accumulative effect of accounting changes Net income 7,169 1,544 1, ,960 10,960 Memo: - Commissions and fees: net of fee expenses for banks and insurers. - Other interest: including interest for credit card revolving, interbank lending & bonds, and gains from money market paper. For insurance companies, cash dividends and rental income are also included. - Other gains (losses): FX and derivatives gains/losses. - Other income: mainly income recognized under equity method for TPFB bank and FHC. - Operating expenses: including provision for special reserves 1 / 9

41 Fubon Financial - Financial summary NT$ millions, except for percentages Full Year Half Year 2012 Change H H Q 2Q HoH QoQ Income Statement Data Revenues : Insurance premiums 145, , , , , , , , % 6.6% Net commissions and fees 10,303 10,862 12,718 12,502 6,380 6,043 2,941 3, % 5.5% Interest and dividends 53,962 56,257 67,024 80,262 36,920 40,034 19,304 20, % 7.4% Principal transactions ,410 5,810 6,700 5,075 6,924 3,564 3, % -5.7% Others * 2,231 3,230 4,741 9,835 2,553 2,140 1, % -36.2% Total revenues 212, , , , , , , , % 6.0% Interest expense 20,567 9,729 8,165 10,290 4,751 6,242 3,061 3, % 3.9% Total revenues, net of interest expense 192, , , , , , , , % 6.0% Benefits, claims and provision for loan losses 148, , , , , , , , % 7.3% Total operating expenses 31,911 47,112 55,613 61,344 28,594 31,846 14,980 16, % 12.6% Net non-operating income (232) (273) (1,316) (213) % 183.7% Income before tax 11,754 21,593 21,772 34,507 17,372 13,100 7,493 5, % -25.2% Net Income 10,875 19,938 19,905 30,543 15,157 10,960 6,864 4, % -40.3% Balance Sheet Data Total assets 2,006,720 3,060,253 3,450,747 3,618,135 3,495,803 3,903,473 3,821,776 3,903, % 2.1% Shareholders' equity 143, , , , , , , , % -1.4% Summary ratios Double leverage 111% 108% 109% 112% 110% 111% 111% 111% Equity / Assets 7.2% 6.8% 6.3% 6.5% 6.4% 6.2% 6.4% 6.2% Return on average assets 0.57% 0.79% 0.61% 0.86% 0.87% 0.58% 0.74% 0.44% Return on average equity 7.03% 11.32% 9.35% 13.54% 13.76% 9.23% 11.48% 6.90% Cash dividend per share NT$0.00 NT$2.00 NT$1.00 NT$1.00 Note: (1)"Others" reflects income recognized for subsidiaries & elimination for consolidation purpose. 2 / 9

42 Taipei Fubon Bank - Financial summary NT$ millions, except for percentages Full Year Half Year 2012 Change H H Q 2Q HoH QoQ Income statement data Interest income 37,755 20,335 19,333 23,526 11,165 13,374 6,615 6, % 2.2% Interest expense 19,780 8,695 7,122 9,581 4,389 5,908 2,894 3, % 4.1% Net interest income 17,975 11,640 12,210 13,944 6,776 7,466 3,721 3, % 0.6% Net fee income 5,331 4,733 7,310 8,144 4,120 4,240 1,909 2, % 22.0% Other income 2,269 5,603 3,683 3,530 1,691 2,885 1,743 1, % -34.5% Total revenue 25,576 21,975 23,203 25,619 12,587 14,590 7,373 7, % -2.1% SG&A expense 12,677 12,419 13,628 13,891 6,502 6,780 3,314 3, % 4.6% Pre-provision profits 12,899 9,557 9,576 11,728 6,085 7,810 4,059 3, % -7.6% Provision for credit losses 5,512 3,937 1,020 1,060 (881) (641) (457) (184) 27.2% 59.7% Net non-operating income / (expenses) (647) (163) % 455.2% Income before tax 7,829 5,647 7,909 10,505 7,048 8,479 4,521 3, % -12.4% Net income 6,021 5,222 7,280 9,054 5,818 7,169 3,914 3, % -16.8% Balance sheet data Gross loans 758, , , , ,084 1,038,228 1,017,906 1,038, % 2.0% Credit card revolving loans 14,639 11,183 9,664 8,364 8,528 7,870 7,931 7, % -0.8% NPL (incl. loans under surveillances) 6,013 4,457 2,734 2,496 2,104 2,180 2,449 2, % -11.0% Allowance for loan losses 4,422 4,975 5,424 8,377 5,482 8,687 8,325 8, % 4.4% Total assets 1,228,059 1,356,995 1,482,753 1,504,860 1,466,517 1,611,930 1,605,402 1,611, % 0.4% Deposits(1) 967,533 1,092,305 1,180,659 1,182,749 1,149,108 1,265,570 1,285,084 1,265, % -1.5% Shareholders' equity 79,422 81,397 85,074 92,089 88,722 99,428 95,525 99, % 4.1% Summary ratios Loan-to-Deposit spread (incl. credit cards) 2.02% 1.23% 1.29% 1.34% 1.34% 1.32% 1.32% 1.32% Loan-to-Deposit spread 1.75% 1.04% 1.15% 1.23% 1.22% 1.23% 1.23% 1.23% Net interest margin 1.61% 0.96% 0.94% 0.99% 0.97% 1.00% 1.02% 0.98% Net fee income / Total revenue 20.8% 21.5% 31.5% 31.8% 32.7% 29.1% 25.9% 32.3% Cost-to-Income ratio 49.6% 56.5% 58.7% 54.2% 51.7% 46.5% 44.9% 48.0% Return on average assets 0.5% 0.4% 0.5% 0.6% 0.8% 0.9% 1.0% 0.8% Return on average equity 7.8% 6.5% 8.7% 10.2% 13.4% 15.0% 16.7% 13.6% NPLs / Gross loans 0.79% 0.53% 0.32% 0.26% 0.23% 0.21% 0.24% 0.21% Allowance / Gross loans 0.6% 0.6% 0.6% 0.9% 0.6% 0.8% 0.8% 0.8% Allowance / NPLs 73.6% 111.6% 198.4% 335.5% 260.6% 398.5% 340.0% 398.5% Equity / Assets 6.5% 6.0% 5.7% 6.1% 6.0% 6.2% 6.0% 6.2% Gross loan to deposit ratio (incl. credit cards) 79.9% 77.5% 73.8% 82.0% 79.9% 82.7% 79.8% 82.7% Gross loan to deposit ratio 78.4% 76.5% 73.0% 81.3% 79.2% 82.0% 79.2% 82.0% Note: (1) Due to the regulation change, structured deposits are classified as other financial liabilities instead of deposits starting from / 9

43 Taipei Fubon Bank - Fee income breakdown & credit card statistics Net Fee Income Breakdown (NT$ m) 1Q Q Q Q H H 2012 FX % % % % % % Agency % % % 0 0.0% % % Guarantee % % % % % % Syndication % % % % % % Custody % % % % % % Factoring % % % % % % Wealth management Mutual funds % % % % 1, % % Insurance commission (1) % % % 1, % 1, % 2, % Trust % % % % % % Credit card % % % % % % Other 6 0.3% % % 8 0.4% % % Total net fee income 1, % 2, % 1, % 2, % 4, % 4, % Of which, Wealth management 1, % 1, % 1, % 1, % 3, % 3, % Note: (1) The insurance commissions include incomes from insurance brokerage company and in Taipei Fubon bank company (2) Corporate banking fees include FX,agency,custody,guarantee, factoring and syndication (3) Wealth management fees include mutual funds, insurance and trust. Credit Card Statistics Mar-11 Jun-11 Mar-12 Jun-12 Jun-11 Jun-12 Cards in force 2,126,787 2,344,841 2,028,666 2,045,974 2,344,841 2,045,974 Active cards 1,557,768 1,555,422 1,405,940 1,391,572 1,555,422 1,391,572 Outstanding revolving balance (NT$m) 8,810 8,506 7,925 7,867 8,506 7,867 YTD spending (NT$m) 32,098 63,071 30,633 60,615 63,071 60,615 Avg per-card spending per mo. (NT$) 5,022 4,659 5,016 4,956 4,659 4, day DLQ 0.15% 0.11% 0.11% 0.10% 0.11% 0.10% 30-day DLQ 0.50% 0.39% 0.39% 0.38% 0.39% 0.38% 4 / 9

44 Fubon Insurance - Financial summary NT$ millions, except for percentages Full Year Half Year 2012 Change H H Q 2Q HoH QoQ Income statement data Gross written premium 23,130 22,412 23,096 25,108 13,085 14,481 7,056 7, % 5.2% Net written premium 15,588 15,444 16,802 18,224 9,215 9,967 5,015 4, % -1.3% Net earned premium 15,566 15,351 16,288 17,689 8,598 9,399 4,702 4, % -0.1% Net claims and claims adjustments 7,324 7,623 8,522 10,108 4,690 5,295 2,737 2, % -6.6% Underwriting & operating expense 5,736 5,406 6,185 6,742 3,175 3,476 1,737 1, % 0.1% Underwriting profit 1,772 1,674 1, % 58.1% Total investment income 1,460 1,458 2,500 2,077 1, % -24.5% Net non-operating income (742) (771) (765) % -59.2% Income before tax 2,490 2,360 3,101 3,588 2,150 1, % -9.2% Net income 2,045 1,371 2,676 3,078 1,907 1, % -16.8% Balance sheet data Fixed income assets 20,532 23,669 22,800 28,007 24,751 21,892 27,127 21, % -19.3% Investment assets 42,780 47,564 49,418 52,382 50,017 45,847 51,752 45, % -11.5% Total assets 59,047 63,368 65,615 69,487 69,802 67,071 71,757 67, % -6.6% Reserves for operations and liabilities 34,094 35,673 36,616 38,828 39,078 39,872 39,348 39, % 1.1% Total liabilities 41,677 41,043 42,968 46,296 47,546 48,255 47,242 48, % 2.0% Shareholders' equity 17,370 22,325 22,647 23,191 22,256 18,816 24,516 18, % -23.1% Summary ratios Net claim ratio 47.1% 49.7% 52.3% 57.1% 54.5% 56.3% 58.2% 54.5% Net expense ratio 36.8% 35.0% 36.8% 36.9% 34.5% 34.9% 34.6% 35.1% Net combined ratio 83.8% 84.7% 89.1% 94.0% 89.0% 91.2% 92.9% 89.6% Total investment return 3.4% 3.2% 5.2% 4.1% 5.0% 3.7% 3.7% 3.0% Solvency margin (NWP / Equity) 89.7% 69.2% 74.2% 78.6% 82.8% 105.9% 81.8% 105.0% Retention ratio 67.4% 68.9% 72.7% 72.6% 70.4% 68.8% 71.1% 66.7% Return on average assets 3.6% 2.2% 4.1% 4.6% 5.6% 4.5% 4.7% 4.0% Return on average equity 10.6% 6.9% 11.9% 13.4% 17.0% 14.7% 13.8% 13.1% 5 / 9

45 Fubon Life - Financial summary NT$ millions, except for percentages Full Year Half Year 2012 Change H H Q 2Q HoH QoQ Income statement data First year premium(excl. seperated accounts) 117, , , , , ,811 72,782 86, % 18.2% Total earned premium (net) 208, , , , , , , , % 6.9% Total investment income 24,717 39,878 44,418 54,726 26,413 28,733 13,440 15, % 13.8% Recurring investment income 32,275 34,542 43,199 52,003 23,406 25,178 12,083 13, % 8.4% Other investment income (7,558) 5,337 1,219 2,723 3,008 3,555 1,357 2, % 61.9% Other income 10,925 2,779 1,662 2, , % 16.6% Total operating revenue 244, , , , , , , , % 7.7% Claim and benefit expense 92,787 83, , ,195 93,129 66,397 32,028 34, % 7.3% Net commission expense 11,567 12,066 16,635 20,367 9,277 10,938 4,823 6, % 26.8% Net provision in policy reserve 125, , , ,601 50, ,997 81,484 87, % 7.4% General and administrative expense 12,194 10,868 11,412 12,760 6,124 7,405 3,501 3, % 11.5% Other expenses 409 1,229 1,404 2, , % -14.5% Total operating expense 242, , , , , , , , % 8.1% Net non-operating income / (expenses) (69) % 58.8% Income before tax 2,062 11,871 6,583 11,569 5,558 1,694 1, % -40.0% Net income 1,612 10,870 6,626 10,104 5,271 1,577 1, % -61.4% Balance sheet data Fixed income assets 837,156 1,030,338 1,225,806 1,419,109 1,299,361 1,556,587 1,492,762 1,556, % 4.3% Investment assets 894,578 1,133,189 1,379,589 1,573,223 1,467,580 1,753,567 1,674,938 1,753, % 4.7% U-linked assets 113, , , , , , , , % -4.8% Total assets (1) 936,444 1,184,187 1,454,366 1,647,794 1,527,274 1,833,904 1,739,114 1,833, % 5.5% Policy reserve (1)(4) 825,319 1,038,127 1,307,472 1,492,630 1,377,483 1,660,355 1,572,365 1,660, % 5.6% Total reserve (1) 838,315 1,052,463 1,323,746 1,511,771 1,394,734 1,678,486 1,589,968 1,678, % 5.6% Total liabilities (1) 870,071 1,088,650 1,352,941 1,545,935 1,424,705 1,721,439 1,631,802 1,721, % 5.5% Shareholders' equity 66,373 95, , , , , , , % 4.8% Note(1) :excl. seperated accounts Summary ratios Claims and benefits ratio 44.5% 28.8% 37.4% 53.1% 67.4% 29.3% 29.3% 29.4% Expense ratio 5.8% 3.7% 2.8% 3.9% 4.4% 3.3% 3.2% 3.3% Persistency ratio - 13th month 88.2% 87.4% 92.9% 95.4% 94.6% 96.5% 96.2% 96.5% Return on average assets 0.2% 1.0% 0.5% 0.7% 0.7% 0.2% 0.3% 0.1% Return on average equity 2.6% 13.4% 6.7% 9.9% 10.3% 2.9% 4.4% 1.6% Total investment return 3.16% 4.06% 3.78% 3.80% 3.82% 3.68% Note: (1) Exclude seperated accounts (2) Assets under separate accounts are not included in ROA calculation. (3) data are on a pro forma basis. (4) Policy reserve and premium are under new definition of accounting principle No. 40 starting from / 9

46 Fubon Securities - Financial summary NT$ millions, except for percentages Full Year Half Year 2012 Change H H Q 2Q HoH QoQ Income statement data Brokerage commissions 3,291 4,382 4,385 3,764 1,976 1, % -31.7% Net interest income 1,344 1,021 1,391 1, % -5.1% Fee income % 56.1% Net principal transactions 261 1, , % 2.7% Net financial products gains (75) % -74.2% Other income % -3.8% Total operating revenue 5,290 7,138 7,103 6,774 3,705 2,548 1,489 1, % -28.8% Total operating expense 4,194 4,664 5,070 5,073 2,441 2,251 1,142 1, % -2.8% Net non-operating income / (expenses) , % -46.6% Income before tax 1,349 2,751 2,278 2,808 1, % -88.9% Net income 1,199 2,408 2,051 2,666 1, % -86.6% Balance sheet data Margin loans 8,510 21,128 25,398 14,260 21,704 13,668 15,701 13, % -12.9% Total assets 46,390 47,507 59,507 44,872 55,625 37,911 46,528 37, % -18.5% Current liabilities 13,373 15,867 27,949 12,037 23,652 8,396 13,648 8, % -38.5% Total liabilities 13,809 16,370 28,377 12,309 23,887 8,679 13,934 8, % -37.7% Total shareholders' equity 32,581 31,137 31,130 32,563 31,738 29,232 32,594 29, % -10.3% Summary ratios Consolidated data Total expenses / Total revenues 79.3% 65.3% 71.4% 74.9% 65.9% 88.3% 76.7% 104.7% Return on average assets 2.2% 5.1% 3.8% 5.1% 5.2% 2.7% 4.3% 0.6% Return on average equity 3.6% 7.6% 6.6% 8.4% 9.5% 3.6% 6.0% 0.9% Margin loans / Total assets 18.3% 44.5% 42.7% 31.8% 39.0% 36.1% 33.7% 36.1% Margin loans / Shareholders' equity 26.1% 67.9% 81.6% 43.8% 68.4% 46.8% 48.2% 46.8% Equity / Total assets 70.2% 65.5% 52.3% 72.6% 57.1% 77.1% 70.1% 77.1% Other Data - Unconsolidated Revenue / Employee Commission / Broker Compensation / Revenue 38% 32% 34% 33% 30% 40% 36% 40% 7 / 9

47 Fubon Bank (Hong Kong) - Financial Summary HK$ millions, except for percentages Full Year Half Year 2012 Change H H Q 2Q HoH QoQ Income Statement Data Interest Income 2,246 1,559 1,196 1, % 2.2% Interest Expense 1, % -0.9% Net Interest Income 989 1, % 5.4% Net Fee Income % -59.2% Other Income % % Total Revenue 1,455 1,421 1,138 1, % 5.5% SG&A Expense % 6.1% Provision for Loan Losses % 73.1% Net non-operating income % % Income Before Tax % 84.0% Net Income % 101.0% Balance Sheet Data Gross Loans 33,330 29,113 29,145 32,402 32,010 30,848 31,667 30, % -2.6% Allowance for Loan Losses % -12.3% Total Assets 65,642 60,979 61,780 60,256 61,213 62,941 61,633 62, % 2.1% Deposits 47,998 46,602 46,038 43,788 45,077 43,858 44,139 43, % -0.6% Shareholders' Equity 4,721 4,935 5,094 5,051 5,196 6,929 5,180 6, % 33.8% NPLs % -15.2% Summary Ratios Net Interest Margin 1.76% 1.94% 1.56% 1.09% 1.12% 1.22% 1.20% 1.24% Net Fee Income / Total Revenue 18.2% 14.8% 22.6% 20.7% 18.5% 21.4% 31.2% 12.1% Cost-to-Income Ratio 66.4% 67.2% 75.2% 87.4% 83.3% 76.8% 76.6% 77.0% Return on average assets 0.16% 0.04% 0.43% 0.46% 0.58% 0.65% 0.42% 0.86% Return on Average Equity 2.3% 0.5% 5.3% 5.5% 6.65% 6.62% 5.13% 8.84% NPLs / Gross Loans 1.22% 1.78% 0.66% 0.33% 0.50% 0.07% 0.08% 0.07% Allowance / Gross Loans 0.89% 1.86% 0.97% 0.50% 0.86% 0.21% 0.23% 0.21% Allowance / NPLs 72.7% 104.2% 147.2% 154.2% 170.7% 285.4% 275.9% 285.4% Equity / Assets 7.2% 8.1% 8.2% 8.4% 8.5% 11.0% 8.4% 11.0% Gross Loan to Deposit Ratio 69.4% 62.5% 63.3% 74.0% 71.0% 70.3% 71.7% 70.3% Loan-to-Deposit Spread 2.02% 2.34% 1.71% 0.94% 1.04% 1.06% 0.97% 1.15% 8 / 9

48 Outstanding Shares As of Jun 30, 2012 (million shares) Issued shares : 9,064 Treasury shares : (1) Outstanding shares 9,063 9 / 9