Fubon Financial : FHC 2023 3Q investor conference (English)

2023 Third Quarter Results

Presentation

2023.11.17

Disclaimer

This document is provided by Fubon Financial Holdings (the "Company"). No representation, warranty or undertaking, express or implied, is or will be given by the Company as to the adequacy, accuracy, completeness and correctness of information contained herein. In addition, no obligation is undertaken by the Company to update or revise the information contained herein due to any changes in circumstances.

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Performance highlights of

Fubon Financial Holdings

Performance review by subsidiary

• Fubon Life
• Taipei Fubon Bank
• Fubon Insurance
• Fubon Securities
• Overseas Banking Operations

Fubon Financial Holdings: Business Highlights

Fubon FHC			• Net profit of NT$67.8bn, down 19.0% YoY and EPS of NT$4.94, both leading among
			FHCs in Taiwan
			• Total assets of NT$11.1tn, up 3.4% YoY and net worth of NT$737.4bn, up 33.6% YoY
			• BVPS at NT$49.30 per common share
Fubon Life			• Net profit of NT$43.13bn, ranked 1st among peers in Taiwan
			• Recurring return before hedging increased YoY. Total investment return reached 4.33%
			• Ranked top 2 in terms of FYP, TP and FYPE in Taiwan
			• Equity to asset ratio about 8.56% and RBC ratio around 350%
Taipei Fubon			• Net profit reached NT$20.24bn, a record high. Net profit up 17% YoY if excluding
Bank			bargain purchase gain in 2022
			• NIM increased 9bps YoY on back of the growth in loans and overseas businesses
			• Net fee income rose 37.6%, reflecting the growth in wealth management and credit card
			businesses
			• Issued 2.46mn credit cards year-to-September, up 4.5x YoY, active cards ranked top 2
			in market
Fubon Insurance			• Net loss of NT$2.41bn, with the loss of NT$6.27bn (pre-tax basis) from Covid-related
			policies. Monthly income has turned positive since April
			• Insurance premium climbed 5.2% YoY. Market leader with market share of 24.1%
			• Investment return at 4.51%, remaining stable in a volatile market	4

Fubon Financial Holdings: Business Highlights

Fubon Securities			• Net profit of NT$5.49bn, up 59.5% YoY, ranking reached top 2 among peers, mainly from
			investment gains as TAIEX trended up
			• After the merger, net profit and market share of major businesses ranked among top 3
			with meaningful increase in business scale
ESG			 Awards and certificate
performance			•	Fubon Financials
and
			 Awarded ESG Corporate Rating "Prime" status, environmental & social aspects as
awards
			Highest level by ISS
				 Awarded Insurance industry ESG Top Rated and ESG Regional Top Rated by
				Sustainalytics
				 Awarded Sustainable Citizenship Awards for sixteen years and Talent Sustainability
				Award for the first year by CommonWealth Magazine
			•	Taipei Fubon Bank
				 Awarded Taiwan's Best Bank for ESG for two consecutive years by Asiamoney
				 Awarded Best Companies to Work for in Asia for three consecutive years by HR
				Asia

5

Fubon Financial Holdings: Business Highlights

ESG performance and awards

• ESG Actions
• • Fubon Life
  • • Green investment reached NT$1,885.1bn
    • Invited over one hundred of suppliers to join ESG environmental sustainability and green procurement conference
  • Taipei Fubon Bank
  • • Green investment and lending reached NT$594.9bn
    • Publication of the first Task Force on Climate-related Financial Disclosures (TCFD) Report and passed BSI Level 5+: Excellence, the highest level of verification
    • Developed AI model for fraud detection and prevention jointly with Criminal Investigation Bureau and formed the Eagle Eye Alliance with 33 banks
  • Fubon Insurance
  • • The first in the industry to propose Net Zero Underwriting by 2050. The goal is no additional underwriting in coal and fossil fuel sectors unless there is carbon reduction action or transformation plan
    • Obtained the UL 2799 Gold-Level Certification for Zero Waste to Landfill, for the headquarter building demolition project
  • Fubon Securities
  • • Green investment reached NT$6.892bn
    • Launched a "ESG zone" for various investment products

6

Fubon Financial Holdings: Profitability

• Net profit NT$67.8bn and EPS NT$4.94, both topped FHCs in Taiwan

Net profit

NT$bn	144.6

90.3

46.9

2020 2021 2022

Earnings per share (EPS)

NT$

12.49

8.54

3.54

	(1)	2020	2021	2022	(2)
Note：(1)	9M22 data were adjusted to reflect the Fubon FHC's stock dividend distribution in 2023					7
(2)	EPS of 2020, 2021 and 2022 would be NT$7.04, NT$11.33 and NT$3.37, respectively, if adjusted to reflect stock dividends from 2021 to 2023

Fubon Financial Holdings: Net profit from major subsidiaries

• Profitability declined due to market and one-off factors: Fubon Life's profit declined on back of volatile financial market, Fubon Insurance's cumulative loss due to Covid-related policies claims while its monthly income turned positive since April, Fubon Bank (China)'s profit decreased due to declining NIM and the rise of total provision ratio for regulatory requirement
• The performance of other subsidiaries was largely robust

	Net profit of the FHC and subsidiaries
NT$bn			9M22		9M23
83.7	83.6
	67.8

43.1

18.8 20.4

3.4

5.5

1.7

2.6

1.7

0.1

-2.4

-17.1

Fubon	Fubon	Taipei Fubon (1)	Fubon	Fubon	Fubon	Fubon
FHC	Life	Bank	Insurance	Securities	Bank (HK)	Bank (China)

Note: (1) Net profit of Taipei Fubon Bank was NT$20.2bn. Taipei Fubon Bank's net profit of NT$20.4bn excludes investment income recognized under equity method from	8
Fubon Bank (China) to avoid double counting

Fubon Financial Holdings: Assets and Net Worth

• Fubon FHC's total assets reached NT$11.1tn, up 3.4% YoY
• Net worth increased 33.6% YoY
• BVPS at NT$49.30 per common share

Total assets

NT$bn

9,244 10,500 10,588

2020 2021 2022

Equity attributable to parent company

NT$bn

Net worth		BVPS (common share basis)		Net worth		BVPS (common share basis)

35.05	49.30
737
552
33.6%
Sep-22	Sep-23

58.12	68.87
950
763	37.90
	566
2020	2021	2022	9

Fubon Financial Holdings: ROA & ROE

• ROA and ROE decreased YoY along with earnings fluctuation
  ROA

1.49%

1.02%

0.45%

2020 2021 2022

ROE

16.88%

13.17%

6.19%

Note: Data are annualized	2020	2021	2022	10