Far Eastern International Bank : Consolidated Financial Statements for the Nine Months Ended September 30, 2022

Far Eastern International Bank Ltd. and Subsidiaries

Consolidated Financial Statements for the

Nine Months Ended September 30, 2022 and 2021 and Independent Auditors' Review Report

The engagement partners on the reviews resulting in this independent auditors' review report are Chun-Hung Chen and Yin-Chou Chen.

Deloitte & Touche

Taipei, Taiwan

Republic of China

November 3, 2022

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with 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 applied in the Republic of China.

For the convenience of readers, the independent auditors' review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' review report and consolidated financial statements shall prevail.

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FAR EASTERN INTERNATIONAL BANK LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)

			September 30, 2022				December 31, 2021				September 30, 2021
ASSETS			(Reviewed)						(Audited)						(Reviewed)
		Amount	%					Amount	%					Amount	%
ASSETS
Cash and cash equivalents (Note 6)	$	5,787,751		1		$	5,017,087		1		$	6,713,097		1
Due from the Central Bank and other banks (Notes 7, 39 and 40)			37,438,105		5					45,873,426		6					46,113,919		7
Financial assets at fair value through profit or loss (Notes 8, 39 and 43)			54,893,850		7					37,662,767		5					33,165,285		5
Financial assets at fair value through other comprehensive income (Notes 9, 11,
21, 28, 40, 43 and 44)			77,677,451		10					113,429,715		16					147,792,861		21
Investment in debt instruments at amortized cost, net (Notes 10, 11, 40 and 43)			77,341,309		10					71,374,127		10					498,629		-
Securities purchased under resale agreements, net (Note 12)			4,570,375		1					5,888,595		1					8,319,247		1
Receivables, net (Notes 13 and 44)			19,092,633		3					24,331,835		3					22,346,005		3
Discounts and loans, net (Notes 14, 39 and 44)			456,590,958		61					407,441,765		56					427,370,009		61
Investment accounted for using equity method (Notes 15 and 28)			1,788,762		-					1,970,175		-					1,957,761		-
Other financial assets, net (Notes 16 and 40)			10,521,786		1					3,971,314		1					3,773,847		1
Property and equipment, net (Notes 17 and 39)			3,040,721		1					2,984,077		1					2,961,277		-
Right-of-use assets, net (Notes 18 and 39)			1,030,400		-					1,018,720		-					1,053,395		-
Intangible assets, net (Note 19)			1,604,041		-					1,623,153		-					1,629,524		-
Deferred tax assets (Notes 4 and 36)			192,859		-					209,623		-					188,152		-
Other assets (Note 39)			295,198		-					258,134		-					265,575		-
TOTAL	$	751,866,199		100		$	723,054,513		100		$	704,148,583		100
LIABILITIES AND EQUITY
LIABILITIES
Due to the Central Bank and other banks (Notes 20 and 44)	$	981,550		-		$	1,791,820		-		$	928,802		-
Funds borrowed from the Central Bank and other banks (Notes 44 and 46)			-		-					77,240		-					59,940		-
Financial liabilities at fair value through profit or loss (Notes 8, 39, 43 and 44)			16,927,444		2					3,002,289		1					2,753,546		1
Securities sold under repurchase agreements (Notes 9, 21, 44 and 46)			-		-					4,959		-					4,991		-
Payables (Notes 22 and 44)			8,304,082		1					5,564,647		1					7,425,013		1
Current tax liabilities (Note 4)			225,833		-					175,662		-					136,920		-
Deposits and remittances (Notes 23, 39 and 44)			618,869,805		83					612,106,685		85					593,837,369		84
Bank debentures (Notes 24, 43, 44 and 46)			20,901,900		3					23,901,900		3					25,001,900		4
Principal received on structured products (Note 44)			29,534,136		4					23,050,606		3					21,031,101		3
Other financial liabilities (Notes 25, 44 and 46)			1,287,487		-					979,213		-					958,594		-
Provisions (Notes 26 and 39)			895,723		-					1,056,482		-					976,233		-
Lease liabilities (Notes 18, 39, 44 and 46)			1,036,806		-					1,026,881		-					1,060,150		-
Other liabilities			537,834		-					614,178		-					622,405		-
Total liabilities			699,502,600		93					673,352,562		93					654,796,964		93
EQUITY ATTRIBUTABLE TO OWNERS OF THE BANK (Notes 9, 15, 28
and 38)
Share capital
Ordinary shares			35,694,838		5					35,139,632		5					35,139,632		5
Advance receipts for share capital			3,893,470		-					-		-					-		-
Total share capital			39,588,308		5					35,139,632		5					35,139,632		5
Capital surplus			349,974		-					456,426		-					456,426		-
Retained earnings
Legal reserve			11,206,638		2					10,294,866		1					10,294,866		2
Special reserve			5,922		-					5,922		-					5,922		-
Unappropriated earnings			3,271,489		-					3,786,263		1					3,157,462		-
Total retained earnings			14,484,049		2					14,087,051		2					13,458,250		2
Other equity			(2,058,732)		-					18,842		-					297,311		-
Total equity			52,363,599		7					49,701,951		7					49,351,619		7
TOTAL	$	751,866,199		100		$	723,054,513		100		$	704,148,583		100

The accompanying notes are an integral part of the consolidated financial statements.

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FAR EASTERN INTERNATIONAL BANK LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

		For the Three Months Ended September 30					For the Nine Months Ended September 30
	2022			2021					2022			2021
		Amount	%				Amount	%				Amount	%				Amount	%
INTEREST REVENUES
(Notes 29 and 39)	$ 3,346,828		116	$ 2,375,237		85	$ 8,463,871	101	$ 7,047,855	84
INTEREST EXPENSES				52	720,533		26	3,191,414	38	2,235,354	27
(Notes 18, 29 and 39)	1,495,601
NET INTERESTS	1,851,227		64			1,654,704			59		5,272,457		63		4,812,501		57
NET REVENUES AND GAINS
OTHER THAN INTEREST
Net service fee income
(Notes 30 and 39)	591,568		21		773,463			28		2,059,703		25		2,424,672		29
Gain on financial assets and
liabilities at fair value
through profit or loss
(Notes 31, 39 and 43)	101,856		4		172,677			6		215,544		3		726,959		9
Realized gain on financial
assets at fair value through
other comprehensive income
(Notes 9 and 28)	92,913		3		72,847		3		168,565	2		73,094	1
Net foreign exchange gain	148,872		5		42,500			1		368,979		4		53,078		1
Shares of profit of associates
for using equity method
(Note 15)	28,808		1		30,683			1		86,889		1		120,709		1
Others	61,820		2		57,902			2		196,674		2		176,059		2
Total net revenues and
gains other than interest		1,025,837		36			1,150,072			41			3,096,354		37			3,574,571		43
NET REVENUES	2,877,064		100		2,804,776			100		8,368,811		100		8,387,072		100
PROVISION FOR LOSS ON
BAD DEBTS EXPENSE,
COMMITMENT AND
GUARANTEE (Notes 13, 14,
16, 26 and 39)	111,999		4		277,459			10		400,354		5		866,914		10
OPERATING EXPENSES
Employee benefits expense
(Notes 4, 27, 32, 33, 38
and 39)	1,057,085		37	988,439		35	3,092,253	37	3,046,652	36
Depreciation and amortization
(Notes 17, 18, 19 and 34)	186,511		6		178,732			6		548,611		6		534,474		7
Other general and
administrative expenses
(Notes 18, 35 and 39)		545,905		19			499,463			18			1,426,011		17			1,436,297		17
Total operating expenses	1,789,501		62		1,666,634			59		5,066,875		60		5,017,423		60
INCOME BEFORE INCOME
TAX	975,564		34		860,683			31		2,901,582		35		2,502,735		30
INCOME TAX EXPENSE
(Notes 4 and 36)	121,096		4		94,653		4		397,713	5		287,656	3
NET INCOME FOR THE
PERIOD		854,468		30	766,030		27	2,503,869	30	2,215,079	27

(Continued)

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