Far Eastern International Bank : Consolidated Financial Statements for the Six Months Ended June 30, 2022

Far Eastern International Bank Ltd. and Subsidiaries

Consolidated Financial Statements for the

Six Months Ended June 30, 2022 and 2021 and Independent Auditors' Review Report

Other Matter

We have also audited the parent company only financial statements of Far Eastern International Bank Ltd. as of and for the six months ended June 30, 2022 and 2021 on which we have issued an unmodified opinion.

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

August 12, 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)

			June 30, 2022						December 31, 2021				June 30, 2021
			(Reviewed)						(Audited)						(Reviewed)
ASSETS			Amount	%					Amount	%					Amount	%
ASSETS
Cash and cash equivalents (Note 6)	$	6,518,128		1		$	5,017,087	1		$	7,007,881	1
Due from the Central Bank and other banks (Notes 7, 38 and 39)			62,543,692		8					45,873,426	6					32,055,145	5
Financial assets at fair value through profit or loss (Notes 8, 38 and 42)			44,974,556		6					37,662,767	5					28,007,635	4
Financial assets at fair value through other comprehensive income (Notes 9, 11,
21, 28, 39, 42 and 43)			92,033,798		12					113,429,715	16					175,131,389	25
Investment in debt instruments at amortized cost, net (Notes 10, 11, 39 and 42)			77,076,813		10					71,374,127	10					497,896	-
Securities purchased under resale agreements, net (Note 12)			2,049,469		-					5,888,595	1					7,778,401	1
Receivables, net (Notes 13 and 43)			20,467,533		3					24,331,835	3					20,962,581	3
Discounts and loans, net (Notes 14, 38 and 43)			438,518,383		58					407,441,765	56					415,859,730	60
Investment accounted for using equity method (Notes 15 and 28)			1,796,758		-					1,970,175	-					1,935,893	-
Other financial assets, net (Notes 16 and 39)			6,714,071		1					3,971,314	1					4,182,639	1
Property and equipment, net (Notes 17 and 38)			3,007,599		1					2,984,077	1					2,978,750	-
Right-of-use assets, net (Notes 18 and 38)			1,136,184		-					1,018,720	-					1,119,361	-
Intangible assets, net (Note 19)			1,610,412		-					1,623,153	-					1,635,895	-
Deferred tax assets (Notes 4 and 36)			188,862		-					209,623	-					184,801	-
Other assets			222,539		-					258,134	-					243,422	-
TOTAL		$	758,858,797		100			$	723,054,513	100		$	699,581,419	100
LIABILITIES AND EQUITY
LIABILITIES
Due to the Central Bank and other banks (Notes 20 and 43)	$	3,755,846		-		$	1,791,820	-		$	296,172	-
Funds borrowed from the Central Bank and other banks (Notes 43 and 45)			-		-					77,240	-					40,540	-
Financial liabilities at fair value through profit or loss (Notes 8, 38, 42 and 43)			11,383,678		2					3,002,289	1					3,013,418	-
Securities sold under repurchase agreements (Notes 9, 21, 43 and 45)			-		-					4,959	-					5,102	-
Payables (Notes 22 and 43)			11,970,875		2					5,564,647	1					12,485,321	2
Current tax liabilities (Note 4)			213,205		-					175,662	-					111,765	-
Deposits and remittances (Notes 23, 38 and 43)			627,077,365		83					612,106,685	85					583,843,941	84
Bank debentures (Notes 24, 42, 43 and 45)			23,901,900		3					23,901,900	3					25,001,900	4
Principal received on structured products (Note 43)			28,758,964		4					23,050,606	3					22,395,321	3
Other financial liabilities (Notes 25, 43 and 45)			928,274		-					979,213	-					852,651	-
Provisions (Notes 26 and 38)			925,987		-					1,056,482	-					989,959	-
Lease liabilities (Notes 18, 38, 43 and 45)			1,138,616		-					1,026,881	-					1,125,279	-
Other liabilities			525,883		-					614,178	-					638,090	-
Total liabilities			710,580,593		94					673,352,562	93					650,799,459	93
EQUITY ATTRIBUTABLE TO OWNERS OF THE BANK (Notes 9, 15 and 28)
Share capital
Ordinary shares			35,139,632		4					35,139,632	5					34,481,044	5
Reserve for capitalization			555,206		-					-		-					658,588	-
Total share capital			35,694,838		4					35,139,632	5					35,139,632	5
Capital surplus			456,426		-					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			2,457,684		-					3,786,263	1					2,418,368	-
Total retained earnings			13,670,244		2					14,087,051	2					12,719,156	2
Other equity			(1,543,304)	-					18,842	-					466,746	-
Total equity			48,278,204		6					49,701,951	7					48,781,960	7
TOTAL		$	758,858,797		100			$	723,054,513	100		$	699,581,419	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 June 30					For the Six Months Ended June 30
	2022			2021			2022			2021
		Amount	%				Amount	%				Amount	%				Amount	%
INTEREST REVENUES
(Notes 29 and 38)	$ 2,764,113		94	$ 2,330,417		85	$ 5,117,043	93	$ 4,672,618	84
INTEREST EXPENSES
(Notes 18, 29 and 38)		965,909		33	731,873	27	1,695,813	31	1,514,821	27
NET INTERESTS		1,798,204		61	1,598,544		58	3,421,230	62	3,157,797	57
NET REVENUES AND GAINS
OTHER THAN INTEREST
Net service fee income
(Notes 30 and 38)	801,450		27	754,373	27	1,468,135	27	1,651,209	29
Gain on financial assets and
liabilities at fair value
through profit or loss
(Notes 31, 38 and 42)	7,966	-	268,417	10	113,688	2	554,282	10
Realized gain on financial
assets at fair value through
other comprehensive income
(Notes 9 and 28)	78,995	3	18,379	1	75,652	1	247	-
Net foreign exchange gain	153,085		5	9,473	-	220,107	4	10,578	-
Shares of profit of associates
for using equity method
(Note 15)	26,874	1	51,806	2	58,081	1	90,026	2
Others	79,038	3	51,785	2	134,854	3	118,157	2
Total net revenues and
gains other than interest		1,147,408	39	1,154,233		42	2,070,517	38	2,424,499	43
NET REVENUES		2,945,612		100	2,752,777		100	5,491,747	100	5,582,296	100
NET PROVISION FOR LOSS
ON BAD DEBTS EXPENSE,
COMMITMENT AND
GUARANTEE (Notes 13, 14,
16, 26 and 38)	81,268	3	455,214	17	288,355	5	589,455	11
OPERATING EXPENSES
Employee benefits expense
(Notes 4, 27, 32, 33 and 38)	1,053,529		36	995,755	36	2,035,168	37	2,058,213	37
Depreciation and amortization
(Notes 17, 18, 19 and 34)	182,595		6	176,772	6	362,100	7	355,742	6
Other general and
administrative expenses
(Notes 18, 35 and 38)		453,054		15	404,553	15	880,106	16	936,834	17
Total operating expenses		1,689,178		57	1,577,080		57	3,277,374	60	3,350,789	60
INCOME BEFORE INCOME
TAX	1,175,166		40	720,483	26	1,926,018	35	1,642,052	29
INCOME TAX EXPENSE
(Notes 4 and 36)	186,477		7	70,515	2	276,617	5	193,003	3
NET INCOME FOR THE
PERIOD		988,689		33	649,968	24	1,649,401	30	1,449,049	26

(Continued)

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