CTBC Financial : 2023Q1 CTBC Holding Financial Statements(consolidated)

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Stock Code: 2891

CTBC FINANCIAL HOLDING CO., LTD. AND

SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Review Report

For the Three Months Ended March 31, 2023 and 2022

Address:	27F and 29F, No.168, Jingmao 2nd Rd., Nangang Dist., Taipei City 115,
	Taiwan, R.O.C.
Telephone:	886-2-3327-7777

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.

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Table of contents

		Contents		Page
1.	Cover Page	1
2.	Table of Contents	2
3.	Independent Auditors' 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
	(2)	Approval date and procedures of the consolidated financial statements	8
	(3)	New standards, amendments and interpretations adopted		9～11
	(4)	Summary of significant accounting policies		12～37
	(5)	Significant accounting assumptions and judgments, and major sources	37
		of estimation uncertainty
	(6)	Explanation of significant accounts		37～202
	(7)	Related-party transactions		203～216
	(8)	Pledged assets		216～217
	(9)	Commitments and contingencies		217～226
	(10)	Losses Due to Major Disasters	226
	(11)	Subsequent Events	226
	(12)	Other		227～272
	(13)	Other disclosures
		(a) Information on significant transactions		273～277
		(b) Information on investment in mainland China		277～278
		(c) Major shareholders	278
	(14)	Segment information	279

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KPMG

110615	5 7 68 (	101	)	Tel	+ 886 2 8101 6666
68F., TAIPEI 101 TOWER, No. 7, Sec. 5,		Fax	+ 886 2 8101 6667
Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)		Web	home.kpmg/tw

Independent Auditors' Review Report

To the Board of Directors of CTBC Financial Holding Co., Ltd.:

Introduction

We have reviewed the accompanying consolidated balance sheets of CTBC Financial Holding Co., Ltd. ("the Company" ) and its subsidiaries as of March 31, 2023 and 2022, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2023 and 2022, 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, the Regulations Governing the Preparation of Financial Reports by Public Banks, the Regulations Governing the Preparation of Financial Reports by Securities Firms, the Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, the Regulations Governing the Preparation of Financial Reports by Insurance Companies, and International Accounting Standards (" IASs" ) 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.

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 the Company and its subsidiaries as of March 31, 2023 and 2022, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2023 and 2022 in accordance with the Regulations Governing the Preparation of Financial Reports by Financial Holding Companies, the Regulations Governing the Preparation of Financial Reports by Public Banks, the Regulations Governing the Preparation of Financial Reports by Securities Firms, the Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, the Regulations Governing the Preparation of Financial Reports by Insurance Companies, and IASs 34, "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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.

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Emphasis of Matter

The judicial cases as stated in Note 9(b). Part of judicial cases are still under investigation by the judiciary, and the results remain uncertain. Our conclusion is not qualified in respect of this matter.

The engagement partners on the review resulting in this independent auditors'review report are Chen, Chun- Kuang and Chen, Fu-Jen.

KPMG

Taipei, Taiwan (Republic of China)

May 26, 2023

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.

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

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH STANDARDS ON AUDITING AS OF MARCH 31, 2023 AND 2022

CTBC FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2023, December 31 and March 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

			March 31, 2023	December 31, 2022	March 31, 2022				March 31, 2023	December 31, 2022		March 31, 2022
	ASSETS		Amount	%				Amount	%				Amount	%			LIABILITIES AND EQUITY		Amount	%				Amount	%				Amount	%
11000	Cash and cash equivalents (Note 4 and 6(a))	$	112,687,606				1				133,810,551				2				137,073,851				2			Liabilities:
11500	Due from the central bank and call loans to banks		421,163,279		5			496,634,588		6			355,128,602	5	21000	Deposits from the central bank and banks (Note 6(t)	$	58,991,035		1		97,583,735		1		36,649,522		1
	(Note 6(b), 7 and 8)																									and 7)
12000	Financial assets measured at fair value through profit		640,130,117		8			544,996,150		7			565,547,585	8	21500	Due to the central bank and banks (Note 6(u) and 8)		36,440,979	-			32,321,883		-			30,795,123		-
	or loss (Note 4, 6(c) and (v), and 7)																								22000	Financial liabilities measured at fair value through		65,653,796		1		81,699,567		1		66,020,279		1
12150	Financial assets measured at fair value through other		464,145,718		6			421,220,955		5			584,444,847	8		profit or loss (Note 4 and 6(c))
	comprehensive income (Note 4, 6(d) and (v), and																								22300	Financial liabilities-hedging (Note 4 and 6(f))		4,491	-			503,026		-			146,305		-
	8)																								22500	Securities sold under repurchase agreements (Note 4		192,777,262		2		143,653,675		2		160,099,402		2
12200	Investments in debt instruments measured at		2,259,055,538		29			2,159,112,374		28			1,946,898,904	27		and 6(v))
	amortized cost (Note 4, 6(e) and (v), and 8)																								22600	Commercial papers issued-net (Note 6(w))		32,290,006	-			30,418,562		-			28,731,556		-
12300	Financial assets-hedging (Note 4 and 6(f))		193,065	-				18,389		-				110,242	-		23000	Payables (Note 6(x) and 7)		109,439,171	1	102,380,066	1	93,148,141		1
12500	Securities purchased under resell agreements (Note 4		9,857,053		-				12,767,234		-				8,317,930	-		23200	Current income tax liabilities (Note 4)		9,554,449	-			2,306,287		-			12,465,102		-
	and 6(g))																								23500	Deposits and remittances (Note 6(y) and 7)		4,689,759,462	61	4,582,270,589	60	4,078,433,829		57
13000	Receivables-net (Note 4, 6(h), (j) and (av), 7 and 8)		229,126,237	3		223,214,005		3			217,105,719	3	24000	Bonds payable (Note 6(c) and (z))		134,426,641	2	134,418,666	2	139,534,431		2
13200	Current income tax assets (Note 4)		8,034,175		-				1,854,674		-				2,026,571	-		24600	Provisions (Note 4, 6(j), (aa), (ae) and (af))		1,846,846,817	23	1,866,524,163	24	1,827,490,483		26
13500	Loans-net (Note 4, 6(i), (j) and (av), and 7)		3,263,187,316	43		3,280,389,318	43		2,889,075,453	41	25500	Other financial liabilities (Note 4, 6(ab) and (ap))		211,108,023	3	205,062,362		3		204,838,935		3
13700	Reinsurance contract assets-net (Note 4 and 6(k))		4,091,251	-				4,075,788		-				3,633,110	-		26000	Lease liabilities (Note 4, 6(ac) and 7)		16,337,940		-			16,988,265		-			16,164,995		-
15000	Investment under equity method-net (Note 4 and		16,282,276		-				15,747,528		-				16,650,752	-		29300	Deferred tax liabilities (Note 4)		7,413,158	-			7,490,212	-			4,787,094		-
	6(l))																								29500	Other liabilities (Note 6(ad))		25,937,483			-				24,049,797			-				22,480,430			-
15500	Other financial assets-net (Note 4, 6(j), (n) and (ap),		156,178,115		2			157,339,951		2			172,243,845	2		Total liabilities		7,436,980,713		94		7,327,670,855		94		6,721,785,627		93
	and 8)																									Stockholders' equity - parent company:
18000	Investment property-net (Note4, 6(o) and 8)		104,036,146		1		101,486,456		1			93,238,063	1	31100	Capital stock:
18500	Premises and equipment-net (Note 4 and 6(p))		48,762,425	1		49,024,168		1			49,128,575	1	31101	Common stock (Note 6(ah))		195,838,008	3	195,840,746	3	194,969,896		3
18600	Right-of-useassets-net (Note 4 and 6(q))		17,021,768		-				17,433,219		-				17,103,938	-		31103	Preferred stock (Note 6(ah))		4,999,900	-			4,999,900	-			4,999,900		-
19000	Intangible assets-net (Note 4 and 6(r))		39,213,458	-				39,264,903		1			38,516,474	1	31500	Capital surplus (Note 6(ah))		59,395,602	1	59,458,927	1	58,708,500		1
19300	Deferred income tax assets (Note 4)		13,941,065		-				15,218,285		-				18,821,283	-		32000	Retained earnings:
19500	Other assets-net (Note 4, 6(s) and 8)		54,744,129	1		46,884,577		1			48,567,185	1	32001	Legal reserve		41,494,198		1		41,494,198		1		36,121,821		1
																									32003	Special reserve		20,112,570	-			20,112,570	-			13,959,593		-
																									32011	Undistributed earnings (Note 6(ai))		134,776,178	2	121,798,299		2		143,662,745		2
																									32500	Other equity interest (Note 6(ah))		(55,304,758)	(1)	(74,208,394)	(1)	(33,592,608)	-
																									39500	Non-controlling interest (Note 6(m))		23,558,326			-				23,326,012			-				23,017,455			-
																										Total equity		424,870,024			6			392,822,258			6			441,847,302			7
	TOTAL ASSETS	$	7,861,850,737		100			7,720,493,113		100			7,163,632,929		100		TOTAL LIABILITIES AND EQUITY	$	7,861,850,737			100			7,720,493,113			100			7,163,632,929			100

See accompanying notes to financial statements.