Confidential Presentation to Strengthening our Core Business FY2015 Investor Conference Jesse Ding, Chairman March 10, 2016
Notice Certain information contained herein constitutes “forward-looking statements”, which can be identified by the use of forward- looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “estimate”, “intend”, “continue”, or “believe” or variations thereon or comparable terminology. Although we believe that the expectations and assumptions reflected in these forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements. Due to various risks and uncertainties, actual events or results or the actual performance of EnTie Commercial Bank, Limited and its subsidiaries (“EnTie”) may differ materially from those reflected or contemplated in such forward-looking statements. The forward-looking statements included in this presentation are made only at the date of this presentation and, except as may be required by applicable laws, EnTie does not undertake to update such forward-looking statements to reflect new information, future events or otherwise. Certain of the economic and financial market information contained herein (including certain forward-looking statements and information) has been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of EnTie or its representatives or any other person assumes any responsibility for the accuracy of such information. Subject to certain exceptions under applicable laws, any person who receives certain material information relating to the business of EnTie which may be contained in this presentation is prohibited from trading in the shares of EnTie or undertaking certain other transactions related to such shares until such material information is deemed to be made public under applicable laws. By accepting delivery of this presentation, you agree to treat the information contained herein as confidential and to treat it in a confidential manner. You agree not to reproduce or provide this presentation to others without prior written consent of EnTie Commercial Bank, Limited. 2
Agenda Introduction of EnTie Bank Financial Performance 2016 Outlook Appendix - Share Price Performance 3
New President and CEO (1) High structured succession planning and talent development program Claudie Yu, 6 years of experiences in EnTie 2014 to date Head of Retail Banking, EnTie Commercial Bank 2009 - 2013 Head of Wealth Management Banking, EnTie Commercial Bank 2008 - 2009 Chief Operating Officer, Noah Private Wealth Management (Shanghai) Private Banking Relationship Manager, Senior Vice President, Credit 2007 - 2008 Suisse Bank, Hong Kong Branch President & Chief Operating Officer, ABN AMRO Asset Management, 2004 - 2006 Taiwan Education BA, National Head of Financial Institutions Business Development, ING AnTai Life 1986 2002 - 2004 Insurance, Taiwan Taiwan University 26+ years of experiences in Senior Vice President, Head of Marketing & Product Development, 1997 - 2002 foreign and local Personal Financial Services, HSBC Taiwan commercial banks 1989 -1997 Various positions within Citibank Consumer Banking, Taiwan Notes : (1) The effective date will be upon the approvals of the reorganization and revision proposals of Regulations Governing the Organization of Managerial Departments from the board of directors at the next board meeting (April 28, 2016), as well as the approval from the FSC, whichever occurs latter 4
INTRODUCTION OF ENTIE BANK 5
Snapshot of EnTie Introduction to EnTie Bank Company overview Selected Key Metrics / Ratios (NT$ million) 2014 2015 EnTie is one of the 16 “ new” private banks Income Statement Items established in the wave of liberalization of Net Interest Income 4,138.82 4,275.68 Taiwan’s banking industry in early 1990’s Net Fee Income 2,482.08 2,246.59 The Bank completed its initial public Operating Income 7,184.25 7,857.42 offering on GreTai Securities Market in Pre-Provision Operating Profit 3,925.97 4,528.51 1995 and moved to list on Taiwan Stock Exchange in 1999 Net Profit (stated) 3,201.48 3,295.13 Basic EPS (NT$) 1.91 1.96 EnTie acquired the Seventh Credit Balance Sheet Items Cooperative of Taipei City in July 1998 Gross Loans 193,779.25 182,966.20 The Bank is now operated with 1,803 Total Deposits 262,745.65 248,627.26 employees and 54 branches, of which 34 Total Assets 335,076.45 322,504.81 are in the affluent Greater Taipei area (as Shareholders’ Equity (stated) 27,976.35 30,482.15 of Feb.26) Stated Book Value Per Share (NT$) 16.66 18.15 In November 2007, Longreach Group Key Ratios (%) made an investment in EnTie, acquiring Net Interest Margin / Net Interest Spread 1.28% / 1.25% 1.41% / 1.38% approx. a 58% stake with full management rights Fee as % of Operating Income 34.55% 28.59% Cost-to-Income Ratio 45.35% 42.37% EnTie’s latest ratings is A(twn)/F1/Stable ROAA / ROAE 0.94% / 12.03% 1.00% / 11.27% assigned by Fitch Ratings in 2015 Loan-to-Deposit Ratio 73.75% 73.60% As of March 9, 2016, the Bank’s market CET1 / Tier 1 / CAR 10.22% / 10.97% / 12.51% 11.73% / 12.42% / 13.22% cap is NT$24.90bn or US$0.75bn NPL Ratio / Coverage Ratio 0.38% / 323.45% 0.98% / 149.33% 6
A Rare, High Quality Franchise Introduction to EnTie Bank Sector Leading Profitability Profile… …Driven by Fee Income Franchise Fee Income Ratio Fee Income Pre-tax ROAA Pre-tax ROAE (L5Y Avg.) (%) (3) Ratio Development (%) (3) (L5Y Avg.) (%) (1) (L5Y Avg.) (%) (1) 33.71 16.47 1.17 33.36 34.64 32.75 35.36 25.68 32.46 10.55 0.65 (2) (2) EnTie Industry EnTie Industry EnTie Industry '11 '12 '13 '14 '15 …And Strong Cost Discipline and Efficiency High Quality Capitalization (4) Cost-to-Income Ratio PBT per Employee Tier 1 (%) CET1 (%) (L5Y Avg.) (%) (3) (L5Y Avg.) (NT$MM) (1) 52.69 2.19 12.42 11.73 43.00 9.87 9.56 1.60 (2) (2) EnTie Industry EnTie Industry EnTie Industry EnTie Industry Notes: (1) For EnTie, PBT is adjusted for preferred dividends, and ROAE is calculated based on IFRS-based shareholder’s equity (2) For industry data, annualized 2015 figures based on 9M2015 numbers are adopted when calculating averages (3) Fee income ratio is calculated as net fee income / (net fee income + net interest income); for EnTie, net interest income and operating income are adjusted for preferred dividends (4) 2015 year-end data for EnTie; 1H2015 for industry 7
Business Segments Introduction to EnTie Bank Diversified financial services platform Corporate Banking Retail Banking And Markets (31.3% of 2015 Operating Income) (68.7% of 2015 Operating Income) Corporate Banking Financial Markets Consumer Finance Wealth Management (50.2% of 2015 (18.5% of 2015 (15.2% of 2015 (16.1% of 2015 Operating Income) Operating Income) Operating Income) Operating Income) Offer loans, trade financing, Responsible for Focused on the Fee income and AUM cash management, trusts, deployment of funds, distribution and focused wealth syndicated financing and controlling on funding management of management distributes structured credit solutions cost, ALM, and interest Consumer Finance insurance, mutual funds to corporate customers rate/FX related trading products (such as and structured investment mortgage, personal products to qualified Strategically focused on Following the approval to loans, credit card, etc) customers through 54 niche mid-sized enterprise research and promote branches segment with broad newly financial products Strategically focused on Strategically focused on industry focus and channel management, provided tailor-made providing high net worth controlling time and financial solutions customers installment speed in response to type protection-based demand and changes insurance product of retail market 8
FINANCIAL PERFORMANCE 9
2015 Strategies Financial Performance We continued to focus on core earnings growth in FY2015 by strengthening asset-liability management and emphasizing yield-enhancing asset expansion in a prudent risk-calculated way Optimized funding structure by increasing demand deposits and re-balancing corporate/retail mix Expanded corporate customer base by better sourcing structured deals in our targeted segments Increased unsecured lending to consumer with accurate segmentation and pricing Deepened relationship with existing wealth management customers by penetrating into the next generation of the family Captured financial market opportunities by dynamic asset allocation assisted by trading discipline in volatilities Integrated enabling functions by a timely and comprehensive management reporting system 10
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