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$, % | ||||
YoY+82.1% | ||||
2.73 | 2.82 | |||
2.16 | 2.15 | |||
1.55 | ||||
2019 | 2020 | 2021 | 2022 | 2023 1 |
ROA | ||||
% |
CTBC Holding TW FHCs avg.
0.79%
0.72% | 0.67% | 0.72% | |||
0.44% | |||||
2019 | 2020 | 2021 | 2022 | 2023 | 1 |
CTBC Holding's numbers are presented on a consolidate basis. | |
1. 2023 numbers are preliminary. | 6 |
© CTBC Financial Holding |
CTBC Holding's capitalization
CTBC Holding's CAR
%
125.0% | 130.9% | 119.0% | |
115.7% | 118.5% | ||
2019 | 2020 | 2021 | 2022 | 2023 1 |
CTBC Bank's CAR2
%
13.8% | 14.6% | 14.6% | 14.1% | 13.5% |
2019 | 2020 | 2021 | 2022 | 2023 1 |
CTBC Holding's numbers are presented on a consolidate basis.
- 2023 numbers are preliminary.
- CTBC Bank adopted Basel III since 2013.
Taiwan Life RBC
%
298% | 309% | 342% | 305% |
275% | |||
2019 | 2020 | 2021 | 2022 | 2023 1 |
CTBC Bank's CET1 ratio 2
%
11.3% | 12.0% | 11.5% | 11.1% | |
10.7% | ||||
2019 | 2020 | 2021 | 2022 | 2023 1 |
© CTBC Financial Holding | 7 |
CTBC Holding's net profit breakdown by entity
CTBC Holding's net profit breakdown
NT$ 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.
- 4Q23/2023 numbers are preliminary
- Life's numbers are presented on a consolidated basis.
- Other subsidiaries include CTBC Securities, CTBC Venture Capital, CTBC Asset Management, Taiwan Lottery, CTBC Investments, and CTBC Finance
- 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.
- 4Q23/2023 numbers are preliminary.
- Life's numbers are presented on a consolidated basis.
- 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 | 10 |
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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.