CTBC Holding

Analyst Meeting Financial Review of 4Q23

March 12th, 2024

Investor Relations

DISCLAIMER

This presentation was prepared by CTBC Financial Holding (the "Company"). No representation or warranty, express or implied, is made as to the fairness, accuracy, or completeness of this presentation and the information contained herein. In addition, the Company does not undertake any obligation to publicly update or revise the information contained herein, whether as a result of new information or future events.

The financial information in this presentation is preliminary and subject to audit or review by the Company's auditors. Furthermore, this presentation may include forward-looking statements regarding the Company's future operation or financial condition. Such forward-looking statements are subject to the Company's assumptions and expectations in light of currently available information and involve known and unknown risks, uncertainties, and other factors. Accordingly, the Company's actual performance results may substantially differ from those expressed or implied herein.

Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell any securities of the Company.

© CTBC Financial Holding

2

CTBC FHC

CTBC Holding's 2023 performance summary

Record high net profit of NT$56.1bn in 2023, grew 79% YoY, on resilient

CTBC Holding

profitability at CTBC Bank and earnings recovery at Taiwan Life

Cumulative EPS was NT$2.82; 2023 ROE was 14.6%, outperforming FHC peers

in Taiwan

Reported a net profit of NT$41.3bn for 2023, marking the new record high

CTBC Bank

Strong profitability attributable to sustained NII, solid fee income, and

increased trading income

Adequate capitalization and stable asset quality with benign credit costs

Despite higher hedging cost, 2023 net profit rebounded to NT$12.4bn due to

base effect and improved recurring yield

Taiwan Life

LT value products continued to grow as shown in FYPE growth of 26% in 2023

despite lower FYP sales of interest-sensitive and investment-linked policies

Sufficient capitalization, with RBC ratio at 305%

Other

Total net profit from other subsidiaries including CTBC Securities, CTBC

Venture Capital, CTBC Investments, Taiwan Lottery, and etc. grew 88% YoY

Subsidiaries

in 2023, benefiting from the recovery of capital markets

© CTBC Financial Holding

4

CTBC Holding's 2024 strategic focuses

Banking

Strengthen core franchise and enhance market leadership

  • Target HNWI and further expand WM customer segments
  • Integrate overseas platform and cultivate cross-border financing business amid supply chain relocation trend among TW Corporates
  • Broaden SME customer base, strengthen business model and profitability
  • Improve overseas profitability by focusing on target segments, adjusting loan mix, and strengthening infrastructure and risk mgmt.

Securities & SITE

Integrate resources within the group to strengthen Securities & SITE businesses

  • Enhance profitability and market share by leveraging banking channel and cross-selling capabilities to expand the economies of scales, and developing niche products
  • Solidify competitiveness in equity & bond ETFs, active funds, and offshore funds in order to strengthen market position in the SITE business.

Insurance

Build the foundation to ensure long-term sustainable profits

  • Develop business models focusing on quality over quantity and strengthen asset and liability management to ensure earnings stability and smoothly adopt IFRS 17 and ICS2.0
  • Scale up the agency force and prioritize the growth of value-driven products
  • Adopt dynamic investment strategies by balancing capital allocation and investment returns

Digitalization

Digitally strengthened relationship management to create a new business model

  • Digitalizing end-to-end: Aim for customer experience differentiation and cost efficiency, scale up and redesign customer journey digitization
  • IT Transformation: Modernize technology architecture to support digital transformation, market responsiveness, and operating quality

© CTBC Financial Holding

5

CTBC Holding's profitability

Consolidated net profit

NT$ mn, %

YoY+79.3%

54,205

56,081

42,880

42,853

31,279

2019

2020

2021

2022

2023 1

ROE

%

CTBC Holding

TW FHCs avg.

13.04%

13.70%

14.64%

11.53%

8.16%

2019

2020

2021

2022

2023 1

EPS

NT$, %

YoY+82.1%

2.73

2.82

2.16

2.15

1.55

2019

2020

2021

2022

2023 1

ROA

%

CTBC Holding TW FHCs avg.

0.79%

0.72%

0.67%

0.72%

0.44%

2019

2020

2021

2022

2023

1

CTBC Holding's numbers are presented on a consolidate basis.

1. 2023 numbers are preliminary.

6

© CTBC Financial Holding

CTBC Holding's capitalization

CTBC Holding's CAR

%

125.0%

130.9%

119.0%

115.7%

118.5%

2019

2020

2021

2022

2023 1

CTBC Bank's CAR2

%

13.8%

14.6%

14.6%

14.1%

13.5%

2019

2020

2021

2022

2023 1

CTBC Holding's numbers are presented on a consolidate basis.

  1. 2023 numbers are preliminary.
  2. CTBC Bank adopted Basel III since 2013.

Taiwan Life RBC

%

298%

309%

342%

305%

275%

2019

2020

2021

2022

2023 1

CTBC Bank's CET1 ratio 2

%

11.3%

12.0%

11.5%

11.1%

10.7%

2019

2020

2021

2022

2023 1

© CTBC Financial Holding

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CTBC Holding's net profit breakdown by entity

CTBC Holding's net profit breakdown

NT$ mn, %

QoQ -10.5% QoQ -122.3%QoQ +137.2%QoQ -62.1%

9,619

7,495

320

-2,087

-357

Bank 1

Life2

Other subsidiaries 3

Holding 4

CTBC

4Q23

Holding 4Q23 1

YoY +11.3%

YoY +463.4%

YoY +87.7%

YoY +79.3%

12,3803,58156,081

4Q231

%

Breakdown

Bank

128%

Life

-28%

Others 3, 4

0%

20231

%

breakdown

Bank

74%

41,333

-1,212

Life

22%

Others 3, 4

4%

Bank 1

Life 2

Other subsidiaries 3

Holding 4

CTBC

1

2023

Holding 2023

CTBC Holding's numbers are presented on a consolidated basis.

  1. 4Q23/2023 numbers are preliminary
  2. Life's numbers are presented on a consolidated basis.
  3. Other subsidiaries include CTBC Securities, CTBC Venture Capital, CTBC Asset Management, Taiwan Lottery, CTBC Investments, and CTBC Finance
  4. Holding (on a non-consolidated basis) is an adjustment item for compiling consolidated statement.

© CTBC Financial Holding

8

CTBC Holding's net profit movements

QoQ chg % / NT$ mn

CTBC Holding excl. Life

Life

QoQ +2.3 %

QoQ +8.2 %

QoQ +7.0%

QoQ -121.7%

QoQ -56.0%

QoQ -62.1%

23,678

+ 847

-221

-1,392

10,415

7,495

-12,504

-2,920

3Q23 profit

Operating

Provision

Expense

Life net profit2

4Q23 profit1

Tax & others3

4Q23 net profit1

before tax

revenue

before tax

before tax

after tax

YoY chg % / NT$ mn

CTBC Holding excl. Life

Life

YoY +18.1%

YoY +9.1%

YoY +21.4%

YoY +923.9%

YoY +42.3%

YoY +79.3%

+ 22,250

+ 12,721

66,934

56,081

47,049

- 761

- 14,141

- 10,853

2022 profit

Operating

Provision

Expense

Life net profit 2

2023 profit1

Tax & others3

2023 net profit1

before tax

revenue

before tax

before tax

after tax

CTBC Holding's numbers are presented on a consolidated basis.

  1. 4Q23/2023 numbers are preliminary.
  2. Life's numbers are presented on a consolidated basis.
  3. Others include minority interest.

© CTBC Financial Holding

9

CTBC Holding's revenue breakdown (excl. Life)

CTBC Holding's revenue breakdown

NT$ mn, %

QoQ

+0.6%

QoQ

-3.8%

QoQ

+12.6%

QoQ

+303.9%

QoQ

+2.3%

YoY

+3.8%

YoY

+14.4%

YoY

+131.6%

YoY

+118.6%

YoY

+18.1%

122,600

144,850

Revenue

4Q22

20,815

19,886

1Q23

NII

19,591 19,758

2Q23

19,326

3Q23

54%

4Q231

62%

Fee

11,664

10,722

8,871 9,820

10,316

Trading,

5,994

6,506

derivatives

5,402

5,777

29%

& FX

2,537

30%

LT

266

211 25

16%

investment

(74) (130)

8%

& others

0%

0%

Net interest income

Fee income

Trading, derivatives &

LT investment &

2022

2023

1

FX

others

CTBC Holding's numbers are presented on a consolidated basis. 1. 4Q23/2023 numbers are preliminary.

© CTBC Financial Holding

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CTBC Financial Holding Co. Ltd. published this content on 12 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 March 2024 11:51:06 UTC.