Fubon Financial : FHC Financial Statements(Consolidated) 2023 Q3

1

Stock Code:2881

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

FUBON FINANCIAL HOLDING CO., LTD.

AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Review Report

For the Nine Months Ended September 30, 2023 and 2022

Address:	15-16F., No.179, Liaoning St., Taipei City
Telephone:	[phone]

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.

2

Table of contents

		Contents		Page
1.	Cover Page	1
2.	Table of Contents	2
3.	Independent Auditors' Review 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		8～11
	(2)	Approval date and procedures of the consolidated financial statements	11
	(3)	New standards, amendments and interpretations adopted		11～15
	(4)	Summary of significant accounting policies		16～20
	(5)	Significant accounting assumptions and judgments, and major sources		20～22
		of estimation uncertainty
	(6)	Explanation of significant accounts		23～383
	(7)	Related-party transactions		383～441
	(8)	Pledged assets		442～445
	(9)	Commitments and contingencies		445～447
	(10)	Losses Due to Major Disasters	448
	(11)	Subsequent Events	448
	(12)	Other		448～476
	(13)	Other disclosures
		(a) Information on significant transactions		477～496
		(b) Information on investment in Mainland China		496～497
		(c) Major shareholders	498
	(14)	Segment information		498～500

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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	kpmg.com/tw

Independent Auditors' Review Report

To the Board of Directors

Fubon Financial Holding Co., Ltd.:

Introduction

We have reviewed the accompanying consolidated balance sheets of Fubon Financial Holding Co., Ltd. and its subsidiaries as of September 30, 2023 and 2022, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2023 and 2022, as well as the changes in equity and cash flows for the nine months ended September 30, 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 and International Accounting Standard 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.

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.

3-1

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 Fubon Financial Holding Co., Ltd. and its subsidiaries as of September 30, 2023 and 2022, and their consolidated financial performance for the three months and nine months ended September 30, 2023 and 2022, as well as their consolidated cash flows for the nine months ended September 30, 2023 and 2022 in accordance with the Regulations Governing the Preparation of Financial Reports by Financial Holding Companies and International Accounting Standard 34, "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors' review report are LEE, FENG HUI and WU, LIN.

KPMG

Taipei, Taiwan (Republic of China)

November 16, 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.

4

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

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2023, December 31 and September 30, 2022

(Expressed in Thousands of New Taiwan Dollars)

	Assets		September 30, 2023	December 31, 2022	September 30, 2022		Liabilities and Equity		September 30, 2023	December 31, 2022		September 30, 2022
		Amount		%				Amount		%				Amount		%				Amount			%					Amount			%				Amount			%
11000	Cash and cash equivalents (note 6(a))	$	291,155,379			3			316,596,903			3			286,678,955			3		Liabilities:
										21000	Deposits from the central bank and banks	$	164,181,426			1				149,533,515			1		178,866,817			2
11500	Due from the central bank and call loans to banks (note 6(b))		394,697,006			4			415,990,658			4			403,144,781			4	21500	Due to the central bank and banks		2,310,484			-					922,135			-			-				-
12000	Financial assets measured at fair value through profit or loss (notes 6(c)		1,498,955,737			13			1,418,586,039			13			1,441,170,683			13	22000	Financial liabilities measured at fair value through profit or loss (note		120,141,601			1				87,590,556			1		200,864,835			2
	and 8)																									6(c))
12150	Financial assets measured at fair value through other comprehensive		662,945,550			6			961,531,664			9			993,789,312			9	22300	Financial liabilities for hedging (note 6(f))		13,548,912			-					12,922,639			-			22,669,172			-
	income (notes 6(d) and 8)																								22500	Securities sold under repurchase agreements (note 6(t))		115,413,752			1				145,685,557			1		132,336,074			1
12200	Debt investments measured at amortized cost (notes 6(e) and 8)		3,852,305,863			35			3,356,346,543			32			3,428,987,355			32	22600	Commercial papers issued, net (note 6(u))		67,995,137			1				50,243,977			1		52,607,660			1
12300	Financial assets for hedging (note 6(f))		23,035,130			-				19,304,960			-				18,286,026			-		23000	Payables (note 6(v))		169,523,453			2				171,470,259			2		161,472,416			2
12500	Securities purchased under resell agreements (note 6(g))		145,178,206			1			94,887,192			1			128,936,527			1	23200	Current tax liabilities		3,651,903			-					6,390,844			-			7,248,788			-
13000	Receivables, net (note 6(h))		292,002,798			3			243,228,598			2			232,789,775			2	23500	Deposits and remittances (note 6(w))		3,805,374,515			34				3,656,769,828			35		3,642,823,384			34
13200	Current tax assets		3,259,864			-				2,262,308			-				2,094,486			-		24000	Bonds payable (note 6(x))		306,401,315			3				257,381,535			2		259,508,764			2
13300	Assets classified as held for sale, net (note 6(i))		-				-				-				-				328,507			-		24400	Other borrowings (notes 6(y) and 8)		18,396,478			-					13,696,500			-			6,198,470			-
13500	Discounts and loans, net (note 6(j))		2,736,696,256			25			2,586,477,476			24			2,617,586,780			24	24600	Provisions (note 6(z))		4,759,869,364			43				4,710,169,640			45		4,734,106,782			44
13700	Reinsurance contract assets, net (note 6(k))		39,689,962			-				48,389,563			-				48,698,278			-		25500	Other financial liabilities (notes 6(n) and (aa))		625,427,149			6				612,042,078			6		592,118,510			6
15000	Investments accounted for using equity method, net (note 6(l))		58,948,577			-				57,812,659			1			54,931,115			1	26000	Lease liabilities (note 6(q))		20,351,091			-					21,792,236			-			21,832,671			-
15500	Other financial assets, net (notes 6(n) and 8)		524,857,155			5			520,064,178			5			481,798,406			5	29300	Deferred tax liabilities		50,671,302			-					32,848,412			-			43,425,926			-
18000	Investment property, net (notes 6(o) and 8)		312,634,937			3			305,826,478			3			303,165,485			3	29500	Other liabilities (note 6(ab))		88,672,141			1				84,687,792			1			93,124,459			1
18500	Property and equipment, net (notes 6(p) and 8)		66,075,205			1			65,272,146			1			65,216,025			1		Total liabilities		10,331,930,023			93				10,014,147,503			95		10,149,204,728			95
18600	Right-of-use assets, net (note 6(q))		8,752,046			-				9,974,378			-				10,159,243			-			Equity attributable to owners of parent (note 6(ad)):
19000	Intangible assets, net (note 6(r))		33,621,753			-				34,192,088			-				33,768,312			-			Share capital:
19300	Deferred tax assets		61,851,100			-				74,819,172			1			85,233,562			1	31101	Common stock		130,149,732			1				123,952,126			1		123,952,126			1
19500	Other assets, net (notes 6(s) and 8)		75,639,763			1			56,193,707			1			85,567,825			1	31103	Preferred stock		15,999,900			-					15,999,900			-				15,999,900			-
																										Total share capital		146,149,632			1				139,952,026			1			139,952,026			1
																									31500	Capital surplus		165,051,911			2				171,017,736			2		168,792,297			2
																										Retained earnings:
																									32001	Legal reserve		95,593,238			1				90,913,681			1		90,913,681			1
																									32003	Special reserve		261,752,640			2				30,311,999			-			30,311,999			-
																									32011	Undistributed earnings		170,433,707			2				359,918,631			3			396,053,278			4
																										Total retained earnings		527,779,585			5				481,144,311			4			517,278,958			5
																									32500	Total other equity interest		(101,546,379)	(1)		(226,423,522)	(2)	(273,967,761)	(3)
																										Total equity attributable to owners of parent		737,434,749			7				565,690,551			5			552,055,520			5
																									39500	Non-controlling interests (notes 6(m) and (ad))		12,937,515			-					7,918,656			-				21,071,190			-
																										Total equity		750,372,264			7				573,609,207			5			573,126,710			5
	Total assets	$	11,082,302,287			100			10,587,756,710			100			10,722,331,438			100		Total liabilities and equity	$	11,082,302,287			100				10,587,756,710			100		10,722,331,438			100

See accompanying notes to consolidated financial statements.

5

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

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and nine months ended September 30, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars , Except for Earnings Per Common Share)

41000	Interest revenue (note 6(ag))
51000	Less: Interest expenses (note 6(ag))
	Net interest revenue
	Net non-interest revenue
49800	Net service charge and commissions (note 6(n) and (ag))
49810	Net income (losses) of insurance operations (note 6(ag))
49820	Gains (losses) on financial assets or liabilities measured at fair value through profit or loss (note
	6(c))
49825	Gains on investment property (note 6(o))
49835	Realized gains on financial assets measured at fair value through other comprehensive income
	(note 6(d))
49850	Gains (losses) arising from derecognition of financial assets measured at amortized cost (note 6(e))
49870	Foreign exchange gains
49880	Reversal gains (impairment losses) on assets
49890	Share of profit of associates and joint ventures accounted for using equity method (note 6(l))
49898	Profits or losses reclassified by applying overlay approach (note 6(c))
49900	Net other non-interest revenue (expense) (note 6(l))
	Net revenue
58100	Bad debt expenses and guarantee liability provisions
58300	Net change in provisions for insurance liabilities (note 6(ag))
	Operating expenses:
58501	Employee benefits expenses (note 6(ag))
58503	Depreciation and amortization expenses (note 6(ag))
58599	Other general and administrative expenses (note 6(ag))
	Total operating expenses
	Net income before tax from continuing operations
61003	Less: Income tax expenses (note 6(ac))
	Net income
69500	Other comprehensive income (losses):
69560	Items not to be reclassified to profit or loss
69561	Gains on remeasurements of defined benefit plans
69562	Revaluation gains on property
69563	Share of other comprehensive income of associates and joint ventures accounted for using
	equity method - components of other comprehensive income that will not be reclassified to
	profit or loss
69567	Unrealized gains (losses) on equity instruments measured at fair value through other
	comprehensive income
69569	Income tax related to items not to be reclassified to profit or loss (note 6(ac))
	Subtotal of items not to be reclassified to profit or loss
69570	Items that may be subsequently reclassified to profit or loss
69571	Exchange differences on translation of foreign operations
69581	Gains (losses) on financial instruments for hedging
69583	Unrealized gains (losses) on debt instruments measured at fair value through other
	comprehensive income
69575	Share of other comprehensive income of associates and joint ventures accounted for using
	equity method - components of other comprehensive income that will be reclassified to profit
	or loss
69590	Other comprehensive income (losses) reclassified by applying overlay approach
69579	Income tax related to items that may be subsequently reclassified to profit or loss (note 6(ac))
	Subtotal of items that may be subsequently reclassified to profit or loss
69500	Other comprehensive income
	Total comprehensive income
	Consolidated net income attributable to:
69901	Owners of parent
69903	Non-controlling interests
	Total comprehensive income attributable to:
69951	Owners of parent
69953	Non-controlling interests

Basic earnings per share (in New Taiwan Dollars) (note 6(ae))

$

$

$

$

$

$

$

For the three months ended September 30				For the nine months ended September 30
2023					2022							2023						2022
Amount	%			Amount	%			Amount	%			Amount	%
71,498,277		129			57,266,537				89			199,793,297			130			153,404,819				53
27,160,947		49		14,088,694			22		73,857,153		48		29,713,108			10
44,337,330		80		43,177,843			67		125,936,144		82		123,691,711			43
50,745		-			115,510			-			(668,578)	-			576,322			-
(19,941,223)	(36)	(28,269,727)		(44)	(50,414,143)	(33)	2,698,693			1
(60,698,773)	(109)	(121,622,123)		(189)	35,074,638		23		(390,127,574)		(134)
(1,226,208)	(2)	(871,748)		(1)	4,226,276		3		2,282,050			1
1,936,878		3		2,230,123			3		2,954,533		2		5,193,770			2
(543,434)	(1)	(2,442,482)		(4)	(389,137)	-			3,799,618			1
67,213,863		121		121,160,292			189		92,810,580		60		243,449,492			84
(247,814)	-			(90,497)		-			(1,260,817)	(1)	(1,639,969)		(1)
794,699		1		(157,396)		-			2,113,336		1		1,196,558			-
25,452,607		46		51,682,388			80		(53,441,774)	(35)	295,704,259			102
(1,687,983)	(3)	(456,241)		(1)	(3,340,676)	(2)	3,771,200			1
55,440,687		100		64,455,942			100		153,600,382		100		290,596,130			100
(2,516,867)	(4)	(1,061,889)		(2)	(6,480,415)	(4)	(3,895,468)		(1)
606,635		1		(28,754,313)		(45)	(9,852,779)	(6)	(130,664,804)		(45)
(10,586,389)	(19)	(9,652,990)		(15)	(31,080,616)	(20)	(29,029,759)		(10)
(1,851,333)	(3)	(1,749,405)		(2)	(5,485,057)	(4)	(5,216,804)		(2)
(8,741,512)	(16)	(5,659,561)		(9)	(21,960,659)	(14)	(16,980,584)		(6)
(21,179,234)	(38)	(17,061,956)		(26)	(58,526,332)	(38)	(51,227,147)		(18)
32,351,221		59		17,577,784			27		78,740,856		52		104,808,711			36
7,611,445		14		2,855,272			4		11,498,957		8		19,802,461			7
24,739,776		45		14,722,512			23		67,241,899		44		85,006,250			29
(6,192)	-			22,268			-			(4,279)	-			33,823			-
1,456		-			5,494			-			7,550		-			189,759			-
5,463		-			(2,843)		-			(21,386)	-			(31,342)		-
(1,328,971)	(3)	(3,366,085)		(5)	6,607,494		4		(13,571,437)		(4)
(97,777)	-			323,227			-			(32,583)	-			757,877			-
(1,426,021)	(3)	(3,017,939)		(5)	6,556,796		4		(12,621,320)		(4)
6,017,923		11		5,123,988			8		5,817,429		4		10,412,532			3
31,126		-			(132,299)		-			82,375		-			(486,081)		-
(10,264,594)	(19)	(51,267,770)		(80)	84,559,087		55		(196,884,748)		(68)
(20,869)	-			(364,826)		(1)	(232,298)	-			(535,792)		-
(25,452,607)	(46)	(51,682,388)		(80)	53,441,774		35		(295,704,259)		(102)
890,651		2		9,965,391			16		(22,701,181)	(15)	48,900,067			17
(28,798,370)	(52)	(88,357,904)		(137)	120,967,186		79		(434,298,281)		(150)
(30,224,391)	(55)	(91,375,843)		(142)	127,523,982		83		(446,919,601)		(154)
(5,484,615)	(10)	(76,653,331)		(119)	194,765,881		127		(361,913,351)		(125)
24,907,940		45		14,310,098			22		67,812,976		44		83,713,989			29
(168,164)	-			412,414			1		(571,077)	-			1,292,261			-
24,739,776		45		14,722,512			23		67,241,899		44		85,006,250			29
(4,693,541)	(9)	(74,709,638)		(116)	195,115,551		127		(354,742,885)		(122)
(791,074)	(1)	(1,943,693)		(3)	(349,670)	-			(7,170,466)		(3)
(5,484,615)	(10)	(76,653,331)		(119)	194,765,881		127		(361,913,351)		(125)
		1.91						1.10					4.94						6.20

See accompanying notes to consolidated financial statements.

6

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

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the nine months ended September 30, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

														Equity attributable to owners of parent
																								Total other equity interest
																						Unrealized
																						gains (losses)
																						on financial					Other
																						assets					comprehensive
				Share capital							Retained earnings				Exchange	measured at					income
													differences on	fair value	Gains (losses)			reclassified by			Total equity
																				translation of	through other	on financial			applying			attributable to	Non-
		Common	Preferred			Capital	Legal	Special	Undistributed				foreign	comprehensive	instruments	Revaluation	overlay			owners of	controlling
Balance at January 1, 2022		stock	stock	Total	surplus	reserve	reserve	earnings	Total	operations	income	for hedging	gains	approach	Total	parent	interests	Total equity
$	118,049,644		15,999,900		134,049,544		173,363,019		76,665,185		29,125,366		372,901,683			478,692,234			(26,871,549)		10,059,931		322,363		2,451,220		177,502,547		163,464,512		949,569,309			34,273,188			983,842,497
Net income		-		-		-		-		-		-		83,713,989		83,713,989		-		-		-		-		-		-		83,713,989		1,292,261		85,006,250
Other comprehensive income		-		-		-		-		-		-		(6,963)	(6,963)	10,052,101		(166,223,659)	(253,495)	160,832		(282,185,690)	(438,449,911)	(438,456,874)	(8,462,727)	(446,919,601)
Total comprehensive income		-		-		-		-		-		-		83,707,026		83,707,026		10,052,101		(166,223,659)	(253,495)	160,832		(282,185,690)	(438,449,911)	(354,742,885)	(7,170,466)	(361,913,351)
Appropriation and distribution of retained earnings:
Special reserve appropriated		-		-		-		-		-		1,186,633		(1,186,633)	-			-		-		-		-		-		-		-			-			-
Legal reserve appropriated		-		-		-		-		14,248,496		-		(14,248,496)	-			-		-		-		-		-		-		-			-			-
Cash dividends of common stock		-		-		-		-		-		-		(41,317,375)	(41,317,375)	-		-		-		-		-		-		(41,317,375)	-			(41,317,375)
Cash dividends of preferred stock		-		-		-		-		-		-		(3,026,121)	(3,026,121)	-		-		-		-		-		-		(3,026,121)	-			(3,026,121)
Stock dividends from capital surplus		5,902,482		-		5,902,482		(5,902,482)	-		-		-			-			-		-		-		-		-		-		-			-			-
Changes in equity of associates and joint ventures
accounted for using equity method		-		-		-		(55,515)	-		-		-			-			-		(1,667)	-		-		-		(1,667)	(57,182)	-			(57,182)
Changes in ownership interests in subsidiaries		-		-		-		1,386,684		-		-		-			-			(138)	239,500		-		-		-		239,362		1,626,046		(1,626,669)	(623)
Changes in non-controlling interests		-		-		-		-		-		-		-			-			-		-		-		-		-		-		-			(4,407,093)	(4,407,093)
Disposal of investments in equity instruments measured at
fair value through other comprehensive income		-		-		-		-		-		-		(776,806)	(776,806)	-		776,806		-		-		-		776,806		-			-			-
Others		-		-		-		591		-		-		-			-			-		3,137		-		-		-		3,137		3,728		2,230		5,958
Balance at September 30, 2022	$	123,952,126		15,999,900		139,952,026		168,792,297		90,913,681		30,311,999		396,053,278		517,278,958		(16,819,586)	(155,145,952)	68,868		2,612,052		(104,683,143)	(273,967,761)	552,055,520		21,071,190		573,126,710
Balance at January 1,2023
$	123,952,126		15,999,900		139,952,026		171,017,736		90,913,681		30,311,999		359,918,631		481,144,311		(16,326,395)	(130,388,631)	9,943		2,476,262		(82,194,701)	(226,423,522)	565,690,551		7,918,656		573,609,207
Net income		-		-		-		-		-		-		67,812,976		67,812,976		-		-		-		-		-		-		67,812,976		(571,077)	67,241,899
Other comprehensive income		-		-		-		-		-		-		(18,606)	(18,606)	5,080,271		74,834,939		76,945		7,550		47,321,476		127,321,181		127,302,575		221,407		127,523,982
Total comprehensive income		-		-		-		-		-		-		67,794,370		67,794,370		5,080,271		74,834,939		76,945		7,550		47,321,476		127,321,181		195,115,551		(349,670)	194,765,881
Appropriation and distribution of retained earnings:
Special reserve appropriated		-		-		-		-		-		231,440,641		(231,440,641)	-			-		-		-		-		-		-		-			-			-
Legal reserve appropriated		-		-		-		-		4,679,557		-		(4,679,557)	-			-		-		-		-		-		-		-			-			-
Cash dividends of common stock		-		-		-		-		-		-		(18,592,819)	(18,592,819)	-		-		-		-		-		-		(18,592,819)	-			(18,592,819)
Cash dividends of preferred stock		-		-		-		-		-		-		(3,515,980)	(3,515,980)	-		-		-		-		-		-		(3,515,980)	-			(3,515,980)
Stock dividends from capital surplus		6,197,606		-		6,197,606		(6,197,606)	-		-		-			-			-		-		-		-		-		-		-			-			-
Changes in equity of associates and joint ventures
accounted for using equity method		-		-		-		(15,472)	-		-		-			-			-		-		-		-		-		-		(15,472)	-			(15,472)
Changes in ownership interests in subsidiaries		-		-		-		247,253		-		-		(5,617)	(5,617)	(206,669)	(1,298,042)	6,470		-		9,523		(1,488,718)	(1,247,082)	1,198,164		(48,918)
Changes in non-controlling interests		-		-		-		-		-		-		-			-			-		-		-		-		-		-		-			4,170,365		4,170,365
Disposal of investments in equity instruments measured at
fair value through other comprehensive income		-		-		-		-		-		-		943,497		943,497		-		(943,497)	-		-		-		(943,497)	-			-			-
Others		-		-		-		-		-		-		11,823		11,823		-		-		-		(11,823)	-		(11,823)	-			-			-
Balance at September 30, 2023	$	130,149,732		15,999,900		146,149,632		165,051,911		95,593,238		261,752,640		170,433,707		527,779,585		(11,452,793)	(57,795,231)	93,358		2,471,989		(34,863,702)	(101,546,379)	737,434,749		12,937,515		750,372,264

See accompanying notes to consolidated financial statements.

7

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

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the nine months ended September 30, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

For the nine months ended

September 30

Cash flows from (used in) operating activities:		2023		2022
Income before income tax	$	78,740,856		104,808,711
Adjustments:
Adjustments to reconcile profit or loss:
Depreciation expenses		3,984,545		3,915,210
Amortization expenses		1,500,512		1,301,594
Allowance on bad debts		6,433,616		3,900,358
Net loss (gain) on financial assets or liabilities at fair value through profit or loss		(21,244,768)	422,640,402
Interest expenses		73,857,153		29,713,108
Interest income		(199,793,297)	(153,404,819)
Dividend income		(44,737,434)	(41,478,506)
Net change in insurance liabilities		19,896,350		99,197,482
Net change in provisions for guarantee liabilities		8,240		34,026
Net change in other provisions		(8,904,667)	33,457,450
Share of profit of associates and joint ventures accounted for using equity method		(2,113,336)	(1,196,558)
Loss (profit) reclassified by applying overlay approach		53,441,774		(295,704,259)
Loss (gain) on disposal of investment properties		36,846		(20,224)
Gain on disposal of investments		(32,464,970)	(63,999,182)
Impairment loss on financial assets		1,260,298		1,643,079
Impairment loss (reversal gain) on non-financial assets		1,813		(3,185)
Unrealized foreign exchange gain		(89,789,310)	(242,074,527)
Loss on fair value adjustment of investment property		755,499		2,712,928
Other adjustments		(29,076)	(5,844,697)
Subtotal of adjustments to reconcile profit or loss
	(237,900,212)	(205,210,320)
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease (increase) in due from the central bank and call loans to banks		(55,020,953)	11,799,395
Increase in financial assets for hedging and measured at fair value through profit or loss		(9,103,108)	(75,626,698)
Decrease (increase) in financial assets measured at fair value through other comprehensive income		15,311,331		(29,965,063)
Decrease in investments in debt instruments measured at amortized cost		18,159,830		59,610,216
Decrease (increase) in securities purchased under agreements to resell		(665,516)	263,379
Decrease (increase) in receivables		(42,742,083)	27,461,911
Increase in discounts and loans		(144,603,717)	(81,763,361)
Increase in reinsurance assets		(1,649,639)	(13,514,921)
Decrease in other financial assets		1,535,135		14,697,483
Increase in other assets		(15,022,138)	(11,136,596)
Subtotal of changes in operating assets
	(233,800,858)	(98,174,255)
Changes in operating liabilities:
Increase (decrease) in due to the central bank and banks		14,442,442		(9,820,625)
Increase in financial liabilities for hedging and measured at fair value through profit or loss		13,503,537		44,854,464
Decrease in securities sold under repurchase agreement		(30,857,269)	(37,169,378)
Decrease in payables		(11,471,915)	(42,612,093)
Increase in deposits and remittances		129,777,236		231,366,051
Decrease in provisions		(526,847)	(1,094,311)
Increase in other financial liabilities		16,025,654		16,658,212
Increase in other liabilities		3,582,490		8,498,119
Subtotal of changes in operating liabilities		134,475,328		210,680,439
Subtotal of all adjustments		(337,225,742)	(92,704,136)

See accompanying notes to consolidated financial statements.

7-1

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

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (CONT'D)

For the nine months ended September 30, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

For the nine months ended

September 30

Cash inflow (outflow) generated from operations		2023			2022
$	(258,484,886)			12,104,575
Interest received		184,041,013		141,218,940
Dividends received		45,298,629		41,378,713
Interest paid		(63,736,108)	(24,649,963)
Income taxes paid		(7,533,476)	(18,584,690)
Net Cash flows from (used in) operating activities
	(100,414,828)	151,467,575
Cash flows from (used in) investing activities:
Acquisition of investments accounted for using equity method		(305,000)	(12,626,762)
Proceeds from disposal of investments accounted for using equity method		36		-
Net cash flow from acquisition of subsidiaries		-			(7,276,448)
Proceeds from disposal of assets classified as held for sale		71,245		-
Acquisition of property and equipment		(2,982,394)	(1,704,172)
Proceeds from disposal of property and equipment		27,382		18,146
Acquisition of intangible assets		(753,312)	(789,426)
Acquisition of investment properties		(5,191,336)	(3,364,427)
Proceeds from disposal of investment properties		59,543		123,228
Other investing activities		(886)	(74)
Net cash flows used in investing activities
	(9,074,722)	(25,619,935)
Cash flows from (used in) financing activities:
Increase (decrease) in due to the central bank and banks		1,353,473		(13,592,297)
Increase in commercial papers payable		17,751,160		23,166,390
Proceeds from issuing bonds		47,085,553		15,081,926
Repayments of bonds		(3,523,899)	(14,453,050)
Proceeds from issuing bank financial debentures		19,424,557		17,030,392
Repayments of bank financial debentures		(12,527,440)	(24,716,057)
Increase in other borrowings		4,699,978		4,927,604
Repayments of lease liabilities		(2,152,014)	(2,005,692)
Cash dividends paid		(22,108,799)	(44,343,496)
Change in non-controlling interests		4,170,365		3,572,895
Other financing activities		(46,407)	-
Net cash flows from (used in) financing activities
	54,126,527		(35,331,385)
Effect of exchange rate changes on cash and cash equivalents		1,950,291		9,733,458
Net increase (decrease) in cash and cash equivalents		(53,412,732)	100,249,713
Cash and cash equivalents at beginning of period		573,733,858		503,419,124
Cash and cash equivalents at end of period	$	520,321,126		603,668,837
Composition of cash and cash equivalents:
Cash and cash equivalents reported in the statement of financial position	$	291,155,379		286,678,955
Due from the central bank and call loans to banks qualifying for cash and cash equivalents under the definition of IAS 7		86,552,261		190,154,455
Securities purchased under resell agreements qualifying for cash and cash equivalents under the definition of IAS 7		142,613,486		126,835,427
Cash and cash equivalents at end of period	$	520,321,126		603,668,837

See accompanying notes to consolidated financial statements.

8

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

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the nine months ended September 30, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

1. Company history
2. 1. Fubon Financial Holding Co., Ltd.
      Fubon Financial Holding Co., Ltd. (the Company) was established in December 2001 pursuant to the Financial Holding Company Act in Taiwan.
      In connection with the formation of the Company, substantially all of the assets and liabilities and related operations of Fubon Insurance Co., Ltd. (Fubon Insurance) were transferred to a new wholly owned subsidiary named Fubon Insurance. The name of the "former" Fubon Insurance Co., Ltd. was changed to Fubon Financial Holding Co., Ltd. Furthermore, shares of Fubon Securities Co., Ltd. (Fubon Securities), Fubon Commercial Bank Co., Ltd. (Fubon Bank), and Fubon Life Assurance Co., Ltd. (Fubon Life Assurance) were exchanged for shares in the Company on December 19, 2001.
      On August 28, 2002, shares of Fubon Asset Management Co., Ltd. (Fubon Asset Management) were exchanged for shares in the Company. Starting from March 11, 2011, due to the Company' s corporate restructuring, Fubon Asset Management became a wholly owned subsidiary of Fubon Securities. Starting from December 30, 2019, due to the Company's corporate restructuring, Fubon Asset Management became a wholly owned subsidiary of the Company.
      On December 23, 2002, shares of Taipei Bank Co., Ltd. (Taipei Bank) were exchanged for shares in the Company.
      In September 2003, shares of Fubon Marketing Co., Ltd. (Fubon Marketing) were acquired in cash by the Company.
      In October 2003, shares of Fubon Financial Holding Venture Capital Co., Ltd. (Fubon Financial Holding Venture Capital) were acquired in cash by the Company.
      In March 2004, 75% of the shares of Common Stock of International Bank of Asia, Limited, renamed Fubon Bank Hong Kong Limited (Fubon Bank (Hong Kong)), were acquired in cash by the Company. On June 13, 2011, 25% of the remaining outstanding shares of Common Stock of Fubon Bank (Hong Kong) were acquired in cash by the Company. On August 16, 2012, Fubon Bank (Hong Kong) redeemed the preferred shares of stock of $4,004,057 thousand held by the Company. On the same date, the Company subscribed in cash of $4,004,057 thousand for the ordinary shares of stock of Fubon Bank (Hong Kong).
      In August 2004, shares of Fubon Asset Management Service Co., Ltd. (Fubon AMC) and Fubon Investment Management Consulting Co., Ltd. (Fubon IMC) were acquired in cash by the Company. On November 7, 2011, the procedures for the liquidation of Fubon IMC were completed.

(Continued)