Chinatrust FHC

Analyst Meeting
Financial Review of 4Q10

February 23, 2011

Investor Relations

DISCLAIMER
THE FINANCIAL INFORMATION IN THESE MATERIALS AS OF AND FOR
THE TWELVE MONTHS ENDED DECEMBER 31, 2010 ARE PRELIMINARY.
CHINATRUST FHC EXPECTS TO FILE ITS UNAUDITED INTERIM
FINANCIAL STATEMENTS, WHICH ARE SUBJECT TO REVIEW BY ITS
AUDITORS, WITH THE ROC SECURITIES AND FUTURES BUREAU ON OR
ABOUT APRIL 30, 2011.
This presentation contains forward-looking statements and information that is, statements
related to future, not past, events. These forward-looking statements are based on the current
expectations and certain assumptions made by Chinatrust and are therefore subject to certain
risks and uncertainties. By nature, these risks and uncertainties could cause actual results,
performance or achievements to differ materially from those indicated. Chinatrust disclaims
any intention or obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
These materials are not an offer for sale of securities in the United States. Securities may not
be sold in the United States absent registration or an exemption from registration under the
U.S. Securities Act of 1933, as amended.

Chinatrust

2010 & 4Q10 Performance

2011 Outlook

Chinatrust

2010 & 4Q10 Performance Highlight

Earnings
momentum is
returning

Business momentum on NII regained in 2010. Driven by strong loan

growth and mild NIM expansion, NII grew 3.2% QoQ & 10.4% YoY.
Fee income grew 5.2% QoQ & 12.7% YoY. In particular, attributing to
heated-up investment needs, major growth driver - wealth management
fees - showed superior performance, grew 17.9% QoQ & 28.3% YoY.

Asset quality remained benign, NPL ratio stood low at 0.58%,

coverage ratio boosted up to 220% as of year-end.

Asset quality
strengthened

Capital
remained
strong

Chinatrust

Attributing to sound asset quality and good recoveries, provision

charges throughout 2010 kept at low level, reduced 85% YoY. Yet QoQ
provision level has increased by NT$ 1.1 billion to partially prepare for
Article 34 implementation.

Capital position remained strong with CFHCs CAR at 116.76%. On

the bank level, CAR was 14.62% & Tier 1 ratio was 11.55%.

CFHCs net profit breakdown

CFHCs net profit breakdown
NT$ mm
QoQ -11.0%
3,236

292

(12)

(24)

(376)

3,502

3,117

CFHC 4Q10

13,181

1,079

53

85

(264)

CFHC 3Q10

YoY +481.4%

14,134

2,431

CTCB

CTIB

CTS

CTAMC &
CTVC &
TW Lottery

CTFHC

CFHC 2010

CFHC 2009

CFHCs numbers are presented on a consolidated basis.

1. 4Q10 & 2010 numbers are preliminary and have yet to be reviewed by our auditors.
2. CTFHC (on a non-consolidated basis) is an adjustment item for compiling consolidated statement.
Chinatrust

CFHCs profitability ratios

Retroactively adjusted EPS & reported EPS, after tax
NT$

ROAE, after tax

%
12.14%

Retroactively adjusted EPS

12.43%

10.50%

Reported EPS

1.21%

1.34

1.46

1.32
2006

0.14

2007

2008

2009

2010

-1.31
-11.80%

1.49

1.51

ROAA, after tax

%

1.32

0.14
2006

-1.46

2007

2008

2009

0.79%
2010

0.86%

0.79%

0.14%
2006

2007

2008

2009

2010

-0.60%
CFHCs numbers are presented on a consolidated basis.
1. EPS in the chart are retroactively adjusted for stock dividend payout from 2006 to 2009
2. 2010 numbers are preliminary and have yet to be reviewed by our auditors.
Chinatrust

CFHCs revenue breakdown

CFHCs Revenue breakdown
NT$ mm, %
QoQ +3.2%
YoY +10.4%

QoQ +5.2%
YoY +12.7%

QoQ +19.5%
YoY -35.9%

QoQ +33.7%
YoY -47.2%

NII
Fee
Trading

QoQ -60.0%
YoY -8.7%

Derivatives &FX
LT Investment & others

5,876

5,887

4Q09
1Q10
2Q10
3Q10
1
4Q10

6,688
6,268 6,467
6,403 6,358
6,055
6,262
6,115

1,307
702

525 628

16

425 589

623

(37)
(547)

47%

49%

49%

8%
6%
-11%

5%
5%
-5%

2009

20101

1,211

249

(378)

48%

(363)

Revenue (NT$ mm)

(1,494)

Net Interest
Income

Fee Income

LT Investment
& Others

Trading 2
Gains

Derivatives &
FX

2009: 46,481

2010: 52,555

+13.1%

3Q10: 13,227

4Q10: 13,669

+3.3%

CFHCs numbers are presented on a consolidated basis.

1. 4Q10 & 2010 numbers are preliminary and have yet to be reviewed by our auditors.
2. 2Q10 trading gains incl. cash dividend totaled NT$1,235mm received from investment in Mega FHC.
Chinatrust

CTCBs lending portfolio breakdown

Loan breakdown1 (incl. credit card revolving balance)
NT$ bn, %
Small business + Car loan

QoQ +2.4%
YoY +11.8%

QoQ +2.2%
YoY +3.6%

QoQ +5.5%
YoY +17.9%

QoQ -1.1%
YoY -7.8%

QoQ +18.7%
YoY +75.0%

Credit Card Revolving

Unsecured Loan
Mortgages

558

582 577 591

Commercial Loans

4Q09

529

1%
2%

1Q10
2Q10
3Q10
4Q10
304 301

1%
2%

7%

8%

33%

31%

57%

58%

2009

2010

305 308 315

67 68 72 75 79
22 22 21 21

20

8 10 12 14

Total Lending Portfolio4 (NT$bn)

Commercial
Loans

Mortgages

Consumer
Loans

Credit Card
Revolving

Small Biz &

Car loan

Dec09: 942

Dec10: 1,023

+8.6%

Sep10: 997

Dec10: 1,023

+2.6%

These numbers are presented on CTCB consolidated basis.

1. Loan breakdown is presented on performing loan basis, excluding non-accrual loans.
2. Commercial loans include foreign currency loans of overseas branches and subsidiaries.
3. 4Q10 & 2010 numbers are preliminary and have yet to be reviewed by our auditors.
4. Total lending portfolio includes performing loans, non-accrual loans and credit card revolving balance.

Chinatrust

Loan growth comparison with industry

Domestic Commercial Loan, YoY %
Industry

Consumer Loan, YoY%

CTCB

Industry

20%

20%

15%

15%

CTCB

10%

10%

5%
5%

0%

0%

-5%

-5%

-10%
2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Mortgage, YoY %

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Total Foreign Currency Loan (incl. o/s sub.), YoY%

Industry

CTCB

CTCB

8%

15%

6%

10%
5%

4%

0%

2%

-5%

0%

-10%

-2%

-15%

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Data source: CBC (Taiwan)

Definition: Domestic Commercial Loan- Loans from all industries, excl. individuals.
Mortgage- House Purchasing Loan
Consumer Loan- Employee Welfare Loan, Other Consumer Loan
Chinatrust

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

CTCBs LDR
LDR1 for Overall, NTD & foreign currency loans
%

Total deposit & lending outstanding

%, NT$ bn
6.87%

5.62%

6.05%

8.26%

6.19%

NTD

5.76%

-1.61%

5.06%

Foreign Currency

Overall

3.51%

81.88%

-0.31%

78.46%
YoY%- Loan & Credit Card Receivables

78.29%

79.78%

79.29%

76.19%

76.36%

YoY%- Deposit
Loans & Credit Card Receivables 2
Deposit
1,321
980

1,347
997

74.18%
1,356
1,033

67.55%

1,061

65.24%
62.00%

Dec 09

Mar 10

Jun 10

Sep 10

74.02%

1,367

1,352
1,032

77.59%

Dec 10

Dec 09

65.23%

60.94%

Mar 10

Jun 10

Sep 10

Dec 10 3

These numbers are presented for CTCB on a consolidated basis.

1. Credit card account receivables are included in the calculation of CTCBs LDR.
2. Loans include both performing and non-accrual loans.
3. Dec. 10 numbers are preliminary and have yet to be reviewed by our auditors.
Chinatrust

CTCBs NIM and spreads

Quarterly NIM & NII
%, NT mm

Overall, NTD, FX spread

%

Net Interest Margin (NIM)

Net Interest Income (NII)

excluding early repayment

penalty from US sub

Overall spread

NTD spread

FX spread

Industry average

1.55%
3.22%

3.22%

3.32%

3.20%

3.21%

1.51%
1.49%
1.47%

5,906

4Q09

1.46%

5,915

1Q10

1.46%

6,067

2Q10

6,270

3Q10

2.09%

2.12%

2.12%

2.12%

1.75%

1.80%

1.78%

1.79%

1.31%

1.36%

4Q09

1Q10

2.21%

6,430

4Q10 1

1.36%

2Q10

1.89%

1.37%

3Q10

4Q101

These numbers are presented on CTCB consolidated basis.

1. 4Q10 numbers are preliminary and have yet to be reviewed by our auditors.

Chinatrust

10

CFHCs fee breakdown

CFHCs fee income comparison and breakdown
NT$ mm, %
Lottery

QoQ -2.6%
YoY -4.9%

QoQ +17.9%
YoY +28.3%

QoQ +8.5%
YoY +10.1%

QoQ -12.9%
YoY +17.6%

QoQ -0.1%
YoY +12.3%

Corporate Business
Retail Business
Wealth Mgmt

2,938

Credit Cards

2,491
2,378 2,340
2,290

4Q09
1Q10
2Q10
3Q10
1
4Q10

1,949
1,810
1,771
1,716 1,725

12%

12%

12%

13%

8%

8%

35%

724

815

39%

937

857 879
765

544 500 543 511 555

667

709 706
706

33%

27%
20101

2009

Total Fees (NT$mm)

Credit Cards

Wealth Mgm t

Retail
Business

Corporate
Business

Lottery

2009: 22,677

2010: 25,563

+12.7%

3Q10: 6,358

4Q10: 6,688

+5.2%

CFHCs numbers are presented on a consolidated basis.

1. 4Q10 & 2010 numbers are preliminary and have yet to be reviewed by our auditors.
Chinatrust

11

CFHCs cost to income ratio

CFHCs Cost-to-Income ratio1 and cost & income
%, NT$ mm

69.1%
62.0%

13,281

8,237

4Q09

60.0%

13,227

13,195

9,140

1Q10

65.2%

58.5%

12,465

7,481

66.0%

63.5%

52,555

13,669

46,481

9,017

30,292

7,724

Non-Interest
Expense

33,362

Revenue

2Q10

3Q10

4Q10

2009

2010

CFHCs numbers are presented on a consolidated basis.

1. Cost-to-Income ratio is derived by dividing Total Non-interest Expense by Pre-provision Operating Revenue.
2. 4Q10 & 2010 numbers are preliminary and have yet to be reviewed by our auditors
Chinatrust

12

USs asset quality is back on track

Asset quality1 for US subsidiary
%, NT$ bn

Changes of CTBUSAs impaired asset transferred to CCC

US$ mm, %
Sales & Paydown

11.71%

US$ 25.6 mm
2.49%

2.40%

0.60%
0.89%
0.09%
NPL ratio
Delinquent ratio
Coverage ratio 1826.90%

0.55%

6.21%

1.69%

0.39%

Chg in
Valuation
Reserve (MTM)

15.0%

US$ -2.7 mm
-1.6%
989.03%

901.24%
412.05%
57.67%

NPL

LHFS & OREO

Performing Loans

42.5
5.0

33.6
0.6

Sep. 2010 Balance

30.1
0.1

28.5
0.2

37.5

33.1

30.0

28.3

Dec 09

Mar 10

Jun 10

Sep 10

25.3

US$ 170.8 mm

0.1
25.1

Dec. 2010 Balance

US$ 147.2 mm
86.5%

US$ 147.2 mm
Dec 10 2

1. Delinquency refers to loans are 30-90days over due, NPLs refers to loans are over 90 days over due.
2. Dec 10 numbers are preliminary and have yet to be reviewed by our auditors.

Chinatrust

13

CTCBs asset quality

NPL1 for loan portfolio
%, NT$ bn

Delinquency1 for loan portfolio

%, NT$ bn

1.40%

1.05%

0.60%
0.80%
0.59%

0.52%
0.51%

0.80%

0.62%
0.50%

0.69%
0.90%

0.56%

0.77%
0.45%

0.68%

0.61%
0.61%

0.58%
0.58%

NPL ratio- CTCB

NPL ratio- CTCB excl. US sub.
NPL amt.- US sub.
NPL amt.- CTCB excl. US sub.

Delinquent ratio- CTCB

Delinquent ratio- CTCB excl. US sub.
Delinquent amt.- US sub.
Delinquent amt.- CTCB excl. US sub.

9.6
12.9

2.6

5.6
0.3
7.0

Dec 09

6.0
5.0
0.0

0.7

5.0

5.0

0.6

0.6

5.3

4.9

5.3

4.4

Mar 10

Jun 10

Sep 10

Dec 10

7.6

6.7
0.1

6.0

7.9

7.0

6.5

0.2
5.8

Dec 09

Mar 10

Jun 10

Sep 10

5.8
0.1
5.7
Dec 10

These numbers are presented for CTCB on a consolidated basis.

1. Delinquency refers to loans are 30-90days over due, NPLs refers to loans are over 90 days over due.
2. Dec 10 numbers are preliminary and have yet to be reviewed by our auditors.

Chinatrust

14

CTCBs credit cost and coverage ratio

Provisioning ratios1 and quarterly provision costs
%, NT$ mm

NPL coverage ratio and loan loss reserves

%, NT$ bn

1.93%
186.38%

0.11%

0.29%

0.17%

0.45%

0.45%

165.44%
138.06%

0.39%
0.00%

-0.05%

201.63%

181.20%
145.40%

-0.04%

220.14%
201.44%

157.07%

106.93%
Provision ratio- CTCB

Provision- US sub.

Provision ratio- CTCB

excl. US sub.

Provision- IDRP

CR- CTCB

LLR- US sub.

Provision- Normal

CR- CTCB excl. US sub.

LLR- CTCB excl. US sub.

4,649
13.7

12.5

12.4

12.1

2.3

2.1

2.0

10.9

10.2

10.3

10.0

4Q09

1Q10

2Q10

3Q10

2.9

3,622

985
119
909

4Q09

721
268
278
(6)
(4)
1Q10

841
(24)
(96)
2Q10

(110)
484
(65)
(530)
3Q10

12.8
1.4

11.4

1,223
(97)
(141)
2

4Q10

4Q10

These numbers are presented for CTCB on a consolidated basis.

1. Provisioning ratio is calculated by dividing provision to lending balances, including loans and credit card revolving balance. This ratio is presented
on annualized basis.
2. 4Q10 numbers are preliminary and have yet to be reviewed by our auditors.
Chinatrust

15

2010 & 4Q10 Performance

2011 Outlook

Chinatrust

16

2011 is growing on a sound business

foundation
Stableeconomy
economy
with
domestic
investment
& consumption
up
Stable
with
domestic
investment
& consumption
picking picking
up

Sustainable business in our home market

A redefined and clear focus in our global business

Strengthened governance & risk systems with benign credit outlook

Strong capital and funding position

Chinatrust

17

Economic Update
2011 Taiwan GDP Forecast

Academia Sinica

Consumer Confidence Level

4.71%

Chung-Hua Inst. for Economic

Research

4.55%

90

10

80

70

8
7

60

Polaris Research Inst.

4.62%

6
50
5
40

Taiwan Reserch Inst.

4.24%
30

Taiwan Inst. of Economic Research

5.71%

20
Consumer Confidence
Unemployment Rate

10

4.51%

2009-2010 Taiwan Import/Export trend

Rediscount Rate & Spread

US$ mm

Export

Im port

35,000
30,000

-0
Ju 5
nS e 05
p0
D 5
ec
-0
M 5
ar
-0
Ju 6
nS e 06
p0
D 6
ec
-0
M 6
ar
-0
Ju 7
nS e 07
p0
D 7
ec
-0
M 7
ar
-0
Ju 8
nS e 08
p0
D 8
ec
-0
M 8
ar
-0
Ju 9
nS e 09
p0
D 9
ec
-0
M 9
ar
-1
Ju 0
nS e 10
p1
D 0
ec
-1
0

Directorale-General of Budget,
Accounting & Statistics

M
ar

Export order

4.0
3.5

Spread for TW Dom estic Banks (%)

Rediscount Rate

3.0

25,000

2.5

20,000

2.0
1.5

15,000

1.0
10,000
5,000

Data Source: Dept. of Statistics, Ministry of Economic Affairs

Chinatrust

0.5
0.0

Data Source: Central Bank of Taiwan

18

Volume and margin expansion at low credit

costs
Clear recovery from both onshore & offshore
corporate loans post global financial crisis

Persistent consumer loan growth since credit

card crisis
30%

NTD Corp YoY%

25%

FCY Corp YoY%

Total Corp YoY%

15%

Consum er Loans YoY%

20%

Credit Card Rev. Bal. YoY%

Total Unsecured Loans YoY%

10%
0%

5%

-10%
-20%

-5%
-30%

-15%

NIM

2.5%

10
4Q

10

10

09

10
3Q

2Q

1Q

09

09

4Q

3Q

2Q

08

09

1Q

4Q

08

08

08
3Q

2Q

1Q

07

07

4Q

3Q

07

07

2Q

1Q

06

06

4Q

06

06

3Q

2Q

1Q

Credit cycle currently in the trough

16,000

3.5%
3.0%

10

10

Positive NIM outlook in a rate rising cycle

4Q

10

3Q

2Q

09

09

10
1Q

4Q

3Q

09

08

08

08

08

07

09
2Q

1Q

4Q

3Q

2Q

1Q

4Q

07

07

06

06

06

07
3Q

2Q

1Q

4Q

3Q

2Q

1Q

06

-40%

14,000
12,000

Provision (NT$m m )

10,000
8,000

2.0%
1.5%

6,000
4,000
2,000
0
1Q
0
2Q 4
0
3Q 4
0
4Q 4
04
1Q
0
2Q 5
0
3Q 5
0
4Q 5
0
1Q 5
0
2Q 6
0
3Q 6
0
4Q 6
0
1Q 6
0
2Q 7
0
3Q 7
0
4Q 7
0
1Q 7
0
2Q 8
0
3Q 8
0
4Q 8
0
1Q 8
0
2Q 9
0
3Q 9
0
4Q 9
0
1Q 9
1
2Q 0
1
3Q 0
1
4Q 0
10

1.0%

-2,000

Note: CTCBs numbers

Chinatrust

19

Persistent fee growth

Majority of fee items shown decent growth for
2 yr-round better confirms growing trend

Other fees to make up ongoing structural

changes for credit card business

Fee income YoY growth rate (%)

Fee income mix (%)

+0.7%
-2.2%

+1.2%
+11.7%
+6.4%

2008

+12.7%
+12.3%
+17.6%
+10.1%
+28.3%

Lottery
Corporate
Other retail
Wealth Mgmt
Credit Card

-6.3%

-4.9%

2009

2010

0
0
0
0
0
0
0
0
0
0
0

12.4%
12.4%
7.6%

12.0%
13.0%
8.3%

Lottery

32.7%

39.3%

Other retail

Corporate

Wealth Mgmt
Credit Card

35.0%
2008

27.5%
2009

2010

Confirmed card consumption growth

benefited credit card fees

Investment needs heating up wealth

management sales
Sales vol., NT$ mm
114.6

97.6

90.1

88.8

97.9

70.6
45.4

Structured
products
Mutual
Funds

11.9%

Note; CFHC & CTCBs numbers

Chinatrust

Merchant
Acquring
QoQ%

4.7%

10.6%
-3.1% -1.0%

Insurance
premium
2007 2008 2009 1Q10 2Q10 3Q10 4Q10
Avg. Avg. Avg.

10.6%

5.2%

6.4%
Spending
QoQ%

-1.3%
-4.8%
4Q09

1Q10

2Q10

3Q10

4Q10

20

Key Profit Drivers

2010

Earnings

Credit Costs

Volume drive

Volume growth continued

Slow margin expansion

Strong margin expansion

Strong fee growth

Mild fee growth

Low new NPL influx

Low new NPL influx continued

US NPL clearing up

US overhang removed

IFRS #34 phase II preparation

IFRS #34 impact mitigated

Operating expenses:
Staff bonus increased for
rebounding sales volume

Expenses

Marketing/Branding
Non-operating expenses:
Transfer of Treasury stocks
Pension scheme adjustment

Chinatrust

2011

Operating expenses:
Staff expenses for increased headcount &
sales bonus, pay rise
Marketing/Branding
Risk management strengthening
New biz expansion:
China, BCI & other overseas markets
SME
21

Chinatrust FHC
Analyst Meeting
Financial Review of 4Q10
Appendix

February 23, 2011

Investor Relations

DISCLAIMER
THE FINANCIAL INFORMATION IN THESE MATERIALS AS OF AND FOR
THE TWELVES MONTHS ENDED DECEMBER 31, 2010 ARE PRELIMINARY.
CHINATRUST FHC EXPECTS TO FILE ITS UNAUDITED INTERIM FINANCIAL
STATEMENTS, WHICH ARE SUBJECT TO REVIEW BY ITS AUDITORS, WITH
THE ROC SECURITIES AND FUTURES BUREAU ON OR ABOUT APRIL 30,
2011.
This presentation contains forward-looking statements and information that is, statements
related to future, not past, events. These forward-looking statements are based on the current
expectations and certain assumptions made by Chinatrust and are therefore subject to certain
risks and uncertainties. By nature, these risks and uncertainties could cause actual results,
performance or achievements to differ materially from those indicated. Chinatrust disclaims any
intention or obligation to update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
These materials are not an offer for sale of securities in the United States. Securities may not be
sold in the United States absent registration or an exemption from registration under the U.S.
Securities Act of 1933, as amended.

23

CFHCs Summary Ratios

Yearly Results
2007

2008

Quarterly results
2009

4Q09

1Q10

2Q10

YTD Results
1

3Q10

4Q10

12M09

12M10

0.14

1.32

Per Share Data

EPS (after-tax) (NT$)

1.49

1.51

0.15

DPS (NT$)

1.00

0.50

1.28

12.42

12.06

12.79

12.79

13.23

12.67

12.77

13.14

12.79

13.14

8,410

8,931

9,280

9,280

9,280

9,298

9,893

9,941

9,280

9,941

0.79%

0.86%

0.14%

0.35%

0.85%

0.83%

0.78%

0.69%

0.14%

0.79%

12.14%

12.43%

1.21%

4.19%

11.54%

11.57%

10.60%

8.87%

1.21%

10.50%

Double Leverage Ratio (%)

99.4%

98.3%

98.9%

98.9%

99.0%

99.2%

99.3%

97.3%

98.9%

97.3%

Avg. Equity / Avg. Assets (%)

7.85%

8.30%

8.32%

8.58%

8.55%

8.39%

8.49%

8.83%

8.31%

8.68%

Avg. Loans / Avg. Assets (%)

51.45%

53.37%

53.15%

52.57%

52.40%

53.16%

54.13%

54.71%

53.13%

53.58%

CAR - FHC (%)

114.2%

128.3%

131.8%

131.8%

140.7%

116.4%

120.5%

116.8%

131.8%

116.8%

CAR - Bank (%)

11.13%

12.64%

14.56%

14.56%

15.86%

14.44%

14.85%

14.62%

14.56%

14.62%

8.12%

9.06%

10.95%

10.95%

12.06%

11.00%

11.59%

11.55%

10.95%

11.55%

BVPS (NT$)
Common shares outstanding
(million share)

0.14

0.38

0.35

0.33

0.29

DuPont Analysis
ROAA (after-tax)
(%, annualized YTD earnings)
ROAE (after-tax)
(%, annualized YTD earnings)

Leverage & Solvency Ratios

Tier 1 Ratio - Bank (%)

1. 4Q10 and 12M10 numbers are preliminary and have yet to be reviewed by our auditors.
24

CFHCs Summary Ratios

Yearly Results

Quarterly results

2007

2008

2009

-14.07%

-9.09% -24.88%

4Q09

1Q10

2Q10

YoY Results

3Q10

4Q10

12M09

12M10

Growth Ratios
NII growth
Fee growth
Net profit growth
Loan growth - Bank

32.96%
-230.78%

-10.00%

0.67%

10.25% -83.47%

5.28%

0.18%

2.86%

3.51%

3.17%

-24.88%

10.36%

10.39%

2.66%

-4.50%

3.98%

5.19%

0.67%

12.73%

169.22% 148.12%

-0.10%

-6.75%

-11.01%

-83.47%

481.39%

3.53%

5.08%

-1.47%

-0.58%

2.37%

3.46%

0.23%

2.66%

-1.47%

8.98%

-4.05%

4.15%

6.96%

2.21%

1.98%

0.59%

-0.29%

1.12%

6.96%

3.42%

80.80%

80.58%

74.18%

74.18%

74.02%

76.19%

76.36%

77.59%

74.18%

77.59%

NIM - Bank

2.18%

1.98%

1.44%

1.47%

1.48%

1.47%

1.49%

1.51%

1.44%

1.48%

NII / Operating income

55.5%

49.8%

48.1%

44.1%

47.2%

45.9%

47.4%

47.3%

48.1%

47.0%

Fee / Operating income

42.4%

37.7%

48.8%

46.8%

51.4%

46.3%

48.1%

48.9%

48.8%

48.6%

Cost-to-income ratio

53.4%

51.5%

65.2%

62.1%

60.0%

58.5%

69.1%

66.0%

65.2%

63.5%

NPLs / Total Loans

1.68%

1.68%

1.40%

1.40%

0.80%

0.68%

0.61%

0.58%

1.40%

0.58%

Reserve / Total Loans

1.38%

1.25%

1.49%

1.49%

1.33%

1.27%

1.24%

1.28%

1.49%

1.28%

186.38% 201.63%

220.14%

106.93%

220.14%

0.39%

1.30%

0.19%

Deposit growth - Bank

Performance Ratios
Loan-to-Deposit Ratio - Bank

Asset Quality Ratios (Bank)

Reserve / NPLs
Provision/Avg. Loans &
Revolv. Bal.

81.86%
1.14%

74.63% 106.93%
1.34%

1.30%

106.93% 165.44%
1.93%

0.11%

0.29%

-0.04%

1. 4Q10 and 12M10 numbers are preliminary and have yet to be reviewed by our auditors.

25

Balance Sheet as of December 31, 2010 of

CFHC and its major subsidiaries
NT$ million

CTCB
(consolidated)

Chinatrust
Chinatrust Chinatrust
Chinatrust
Taiwan
Insurance
Asset
Venture
Securities
Lottery
Brokers
Management
Capital

CFHC
Adjustment
CFHC
(nonItems
(consolidated)
consolidated)

Assets:
Cash and due from banks

125,803

372

2,090

3,737

563

343

3,277

(9,478)

126,707

Securities, net

464,540

3,622

2,769

1,039

348

10,118

482,436

Loans, net

989,417

989,417

A/R, net

124,402

319

118

130

(0)

2,151

1,533

(441)

128,219

146,747

(146,681)

2,197

LT investments, net

2,132

Land, premises and

equipments, net

33,045

65

125

Others

60,984

18

1,654

147

1,012

106

429

(26)

64,325

1,800,323

4,334

8,730

5,040

1,932

704

162,110

(156,626)

1,826,546

(9,478)

1,358,339

Total assets

33,246

Liabilities:
Deposits
Other liabilities
Total liabilities
Minority interests
Total stockholders' equity
Total liabilities and
stockholders' equity

1,367,817

302,897

579

2,781

35

146

465

(441)

306,466

1,670,714

579

2,781

35

146

465

(9,919)

1,664,805

19

96

77

129,532

3,754

5,949

5,006

1,928

557

161,645

(146,726)

161,645

1,800,323

4,334

8,730

5,040

1,932

704

162,110

(156,626)

1,826,546

1. These numbers are preliminary and have yet to be reviewed by our auditors.

26

P&L of CFHC and its subsidiaries for the 12

months ended December 31, 2010
1

NT$ million

CTCB
(consolidated)

Chinatrust
Insurance
Brokers

Chinatrust
Securities

CFHC
Chinatrust
Adjustment
Taiwan
(nonVenture
Items
Lottery
consolidated)
Capital

Chinatrust
Asset
Management

CFHC
(consolidated)

Operating income
Net interest income

24,682

10

112

Fee income

23,852

1,253

473

LT investment income

101

(136)

739

(2)

(752)

25,563

14,403

(14,402)

102

Net trading income/(loss)

1,826

91

91

408

Derivatives & FX

2,683

39

(1)

(33)

(15)

2,673

Others

24,677

2,424

(2,887)

(85)

117

(13)

20

25

(61)

(2,883)

50,256

1,355

631

123

(38)

760

14,683

(15,215)

52,555

(30,948)

(87)

(511)

(7)

(8)

(713)

(672)

817

(32,129)

(1,183)

(46)

(3)

(1,233)

(32,130)

(87)

(557)

(10)

(8)

(713)

(673)

817

(33,362)

Pre-provision Profit

18,126

1,268

73

113

(47)

47

14,011

(14,398)

19,193

Credit Loss Provisions, net

(1,863)

Profit Before Income Tax

16,262

1,268

73

113

(47)

47

14,011

(14,398)

17,330

Net Profit After Income Tax

13,181

1,079

53

88

(42)

39

14,134

(14,398)

14,134

Total operating income

Operating costs
Business tax
Total operating costs

(1)

(1,863)

1. These numbers are preliminary and have yet to be reviewed by our auditors.

27

CFHCs Balance Sheet (consolidated)

Yearly Results

Quarterly Results
Dec 09

Mar 10

Jun 10

2007

2008

2009

Cash and due from banks

166,499

139,552

137,028

137,028

117,757

132,462

144,173

126,707

-12.1%

-7.5%

Securities, net

396,775

376,842

497,895

497,895

530,541

491,739

454,864

482,436

6.1%

-3.1%

Loans, net

875,970

921,675

905,880

905,880

928,924

961,612

964,205

989,417

2.6%

9.2%

A/R, net

140,332

115,704

113,430

113,430

105,985

118,513

116,211

128,219

10.3%

13.0%

LT investments, net

1,962

2,229

2,265

2,265

2,253

2,219

2,250

2,197

-2.3%

-3.0%

Land, premises and

equipments, net

34,105

33,494

34,142

34,142

34,012

33,841

33,600

33,246

-1.1%

-2.6%

Others

72,111

136,010

69,944

69,944

71,390

72,794

74,503

64,325

-13.7%

-8.0%

1,687,754

1,725,505

1,760,586

1,760,586

1,790,862

1,813,179

1,789,806

1,826,546

2.1%

3.7%

1,180,402

1,226,171

1,307,717

1,307,717

1,326,094

1,335,787

1,343,957

1,358,339

1.1%

3.9%

364,195

359,068

303,054

303,054

310,624

328,960

288,246

306,466

6.3%

1.1%

1,544,597

1,585,239

1,610,771

1,610,771

1,636,719

1,664,747

1,632,203

1,664,805

2.0%

3.4%

78

76

90

90

93

95

97

96

-1.5%

6.9%

143,080

140,191

149,725

149,725

154,051

148,337

157,505

161,645

2.6%

8.0%

1,687,754

1,725,505

1,760,586

1,760,586

1,790,862

1,813,179

1,789,806

1,826,546

2.1%

3.7%

NT$ million

Sep 10

Dec 10

QoQ (%) YoY (%)

Assets:

Total assets

Liabilities:
Deposits
Other liabilities
Total liabilities
Minority interests
Total stockholders' equity
Total liabilities and
stockholders' equity

1. Dec 10 numbers are preliminary and have yet to be reviewed by our auditors.

28

CFHCs P&L (consolidated)

Yearly Results
NT$ million

Quarterly Results

YTD Results
1

12M09 12M101 YoY (%)

2007

2008

2009

4Q09

1Q10

2Q10

3Q10

Net interest income

32,743

29,767

22,360

5,876

5,887

6,055

6,268

6,467

3.2%

22,360

24,677

10.4%

Fee income

25,027

22,525

22,677

6,237

6,403

6,115

6,358

6,688

5.2%

22,677

25,563

12.7%

(91)

39

66

25

28

26

23

-12.3%

66

102

55.6%

(210)

1,572

1,448

604

(127)

1,198

162

98

-39.6%

1,448

1,331

-8.1%

461

78

2,336

98

91

109

364

530

45.7%

2,336

1,093

-53.2%

3,061

5,832

2,927

425

589

1,211

623

249

-60.0%

2,927

2,673

-8.7%

(5,332)

76

(573)

(386)

-32.7%

4Q10

QoQ(%)

Operating Income

Long term investment income

Trading income (loss) - equity, MTM
Trading income (loss) - FI , MTM
Derivatives & FX
Other income (loss)
Operating Revenue

(2,013)
58,978

8
59,820

46,481

13,323

(403) (1,522)
12,465

13,195

13,227

13,669

3.3%

(5,332) (2,883)
46,481

52,555

-46%
13.1%

Non interest expenses

Operating expenses
Business tax
Total non-interest expenses

(29,977) (29,446) (29,194)

(1,522)

(1,391)

(1,098)

(31,498) (30,837) (30,292)

(29,194) (32,129)

10.1%

(328)

9.2%

(1,098) (1,233)

12.3%

(8,278) (7,481) (7,724) (9,140) (9,017)

-1.3%

(30,292) (33,362)

10.1%

(371)

5,045

(295)

4,984

(309)

Credit loss provisions, net

(9,915) (12,621) (12,433)

Net profit before income tax

17,565

16,362

3,756

395

4,716

4,751

4,197

3,666

-12.6%

3,756

17,330

361.4%

Net profit after income tax

13,339

14,707

2,431

1,515

3,759

3,756

3,502

3,117

-11.0%

2,431

14,134

481.4%

1,050

1,050

1,050

263

263

263

263

263

0.2%

1,050

1,050

0.0%

12,289

13,657

1,381

1,253

3,497

3,493

3,240

2,854

-11.9%

1,381

13,084

847.4%

(4,650)

(268)

5,471

(300)

27,480

Income after preferred dividend

16,189

-1.7%

Pre-provision profit

Preferred dividend

28,983

(7,907) (7,185) (7,415) (8,840) (8,689)

(720)

4,087
110

4,651
(985)

13.8%
-991.7%

16,189

19,193

(12,433) (1,863)

18.6%
-85.0%

1. 4Q10 and 4M10 numbers are preliminary and have yet to be reviewed by our auditors.

29

CTCBs Balance Sheet (consolidated)

Yearly Results

Quarterly Results
Dec 09

Mar 10

Jun 10

Sep 10

QoQ (%)

YoY (%)

2007

2008

2009

Cash and due from banks

161,812

134,154

135,831

135,831

113,941

128,262

139,167

125,803

-9.6%

-7.4%

Securities, net

316,504

350,549

471,148

471,148

512,966

474,679

429,678

464,540

8.1%

-1.4%

Loans, net

875,970

921,675

905,880

905,880

928,924

961,612

964,205

989,417

2.6%

9.2%

A/R, net

137,311

114,399

111,341

111,341

103,659

115,909

113,614

124,402

9.5%

11.7%

LT investments, net

1,896

2,170

2,203

2,203

2,190

2,157

2,185

2,132

-2.4%

-3.2%

Land, premises and

equipments, net

33,766

33,171

33,843

33,843

33,720

33,559

33,398

33,045

-1.1%

-2.4%

Others

63,408

132,788

66,888

66,888

67,444

69,687

70,448

60,984

-13.4%

-8.8%

1,590,667 1,688,906 1,727,135

1,727,135 1,762,844 1,785,865 1,752,695 1,800,323

2.7%

4.2%

1,187,249 1,236,505 1,322,542

1,322,542 1,348,692 1,356,600 1,352,706 1,367,817

1.1%

3.4%

302,897

10.9%

6.3%

1,607,417 1,638,860 1,664,833 1,625,784 1,670,714

2.8%

3.9%

NT$ million

Dec 10

Assets:

Total assets
Liabilities:
Deposits
Other liabilities
Total liabilities
Minority interests
Total stockholders' equity
Total liabilities and
stockholders' equity

299,956

337,550

284,876

1,487,205 1,574,055 1,607,417

284,876

290,168

308,233

273,078

59

58

71

71

74

76

78

77

-1.9%

8.5%

103,403

114,792

119,646

119,646

123,910

120,956

126,833

129,532

2.1%

8.3%

1,727,135 1,762,844 1,785,865 1,752,695 1,800,323

2.7%

4.2%

1,590,667 1,688,906 1,727,135

1. Dec 10 numbers are preliminary and have yet to be reviewed by our auditors.

30

CTCBs P&L (consolidated)

Yearly Results

Quarterly Results
1

QoQ(%)

12M09

6,270

6,430

2.5%

22,384

24,682

10.3%

5,828

5,829

6,209

6.5%

21,321

23,852

11.9%

25

27

26

22

-14.1%

67

101

50.0%

577

(127)

510

195

237

21.1%

1,189

815

-31%

2,027

29

80

102

327

502

53.8%

2,027

1,011

-50%

2,961

431

597

1,158

606

321

-47.0%

2,961

2,683

-9.4%

(5,923)

(165)

(500)

(1,578)

(508)

(302)

-40.6%

(5,923)

(2,887)

-51%

44,027

50,256

14.1%

(30,948)

9.8%

(1,076)

(1,183)

9.9%

-1.3% (29,256)

(32,130)

9.8%

18,126

22.7%

(1,863)

-85.0%

2007

2008

2009

Net interest income

31,997

29,495

22,384

5,906

5,915

6,067

Fee income

22,032

19,593

21,321

8,030

5,986

(94)

37

67

(1,089)

961

1,189

NT$ million

YTD Results

4Q09

1Q10

2Q10

3Q10

4Q10

12M10

YoY (%)

Operating Income

Long term investment income

Trading income (loss) -equity,MTM
Trading income (loss) - FI , MTM

1,139

Derivatives & FX

2,405

Other income (loss)

Operating Revenue

(2,310)
54,080

(0)
5,676
(281)
55,481

44,027

14,815

11,976

12,115

12,746 13,420

(8,498)

(6,923)

(7,195)

(8,486) (8,345)

(1,076)

(365)

(285)

(288)

(29,912) (29,125) (29,256)

(8,863)

(7,207)

(7,482)

5,952

4,769

4,633

5.3%

Non interest expenses

Operating expenses
Business tax
Total non-interest expenses
Pre-provision profit
Credit loss provisions, net

(28,510) (27,802) (28,180)

(1,401)

24,169

(1,324)

26,356

14,771

(10,076) (12,612) (12,433)

(4,650)

(268)

(292)

(319)

(8,778) (8,663)
3,968

(721)

110

4,756

-1.7% (28,180)
9.3%

19.9%

14,771

(985) -991.2% (12,433)

Net profit before income tax

14,093

13,743

2,338

1,302

4,500

3,912

4,078

3,772

-7.5%

2,338

16,262

595.5%

Net profit after income tax

11,102

12,552

1,202

2,173

3,587

2,943

3,415

3,236

-5.2%

1,202

13,181

996.9%

1. 4Q10 and 12M10 numbers are preliminary and have yet to be reviewed by our auditors.
2. Fee jumped up from 4Q09 partially due to change of profit sharing scheme between CTCB and CTIB.

31

CTCBs Loan Breakdown - Consolidated

Yearly Results

Quarterly Results
Dec 09

Mar 10

Jun 10

Sep 10

QoQ (%)

YoY (%)

2007

2008

2009

103,272

119,021

102,645

102,645

100,461

108,683

111,388

116,295

4.4%

13.3%

Commerce & services

57,598

53,476

52,501

52,501

50,497

42,416

31,473

31,070

-1.3%

-40.8%

Government & Non-prof. Org.

29,514

33,732

46,569

46,569

86,455

94,751

91,620

93,369

1.9%

100.5%

Construction & real estate

31,752

31,856

25,192

25,192

25,059

27,233

27,913

27,644

-1.0%

9.7%

Finance & insurance

35,884

39,020

30,857

30,857

26,573

30,879

23,022

25,454

10.6%

-17.5%

Others

47,034

34,754

65,680

65,680

69,280

61,568

64,779

67,336

3.9%

2.5%

NTD loans

305,054

311,859

323,444

323,444

358,324

365,530

350,195

361,169

3.1%

11.7%

Foreign currency loans

195,765

232,379

205,150

205,150

199,223

216,009

226,812

228,732

0.8%

11.5%

500,819

544,238

528,594

528,594

557,547

581,539

577,006

589,901

2.2%

11.6%

295,164

301,301

303,593

303,593

301,319

304,982

307,924

314,553

2.2%

3.6%

3,630

1,249

254

254

148

79

40

19

-51.8%

-92.4%

71,982

67,166

67,301

67,301

67,796

71,777

75,259

79,379

5.5%

17.9%

5,434

5,349

7,596

7,596

8,343

9,542

11,532

13,721

19.0%

80.6%

376,210

375,066

378,744

378,744

377,607

386,380

394,755

407,673

3.3%

7.6%

11,174

14,051

12,285

12,285

6,282

6,093

4,507

4,632

2.8%

-62.3%

888,203

933,355

919,623

919,623

941,436

974,012

976,269

1,002,206

2.7%

9.0%

NT$ million

Dec 10

Corporate loans
Manufacturing

Sub-total
Retail loans
Mortgages
Car loans
Unsecured loans
Small business loan
Sub-total
Non-accrual account
Total loans

1. Dec 10 numbers are preliminary and have yet to be reviewed by our auditors.

32

CTCBs Deposit Breakdown - Consolidated

Yearly Results

Quarterly Results
1

QoQ(%)

YoY (%)

2007

2008

2009

Dec 09

Mar 10

Jun 10

Sep 10

90,634

87,985

122,781

122,781

113,667

125,278

121,035

119,994

-0.9%

-2.3%

281,839

257,161

363,212

363,212

376,711

359,415

413,729

403,726

-2.4%

11.2%

372,473

345,145

485,993

485,993

490,378

484,692

534,764

523,721

-2.1%

7.8%

Time deposits (incl. CD)

232,414

260,041

255,691

255,691

293,519

306,239

247,076

256,188

3.7%

0.2%

Time saving deposits

257,743

264,071

235,708

235,708

232,066

229,686

232,209

234,850

1.1%

-0.4%

490,158

524,112

491,399

491,399

525,585

535,925

479,285

491,038

2.5%

-0.1%

977

458

1,573

1,573

1,414

526

660

535

-19.0%

-66.0%

323,641

366,790

343,576

343,576

331,315

335,457

337,997

352,524

4.3%

2.6%

1,187,249

1,236,505

1,322,542

1,322,542

1,348,692

1,356,600

1,352,706

1,367,817

1.1%

3.4%

NT$ million

Dec 10

Deposits
Checking & demand deposits
Saving deposits
Sub-total
Time & savings

Sub-total
Remittances
Foreign currency deposits
Total deposits

1. Dec 10 numbers are preliminary and have yet to be reviewed by our auditors.

33

CTCBs Spread - Consolidated

Yearly Results
%

Quarterly Results
4Q09

1Q10

2Q10

3Q10

YTD Results
1

1
12M10 YoY (% )

2007

2008

2009

Lending rate

3.82%

3.81%

2.43%

2.25%

2.25%

2.23%

2.27%

2.40%

13bp

2.43%

2.29%

-14bp

Deposit rate

1.35%

1.49%

0.74%

0.51%

0.45%

0.45%

0.48%

0.51%

2bp

0.74%

0.47%

-26bp

2.47%

2.32%

1.70%

1.75%

1.80%

1.78%

1.79%

1.89%

10bp

1.70%

1.82%

12bp

Lending rate

7.31%

5.48%

4.09%

3.83%

3.78%

3.87%

3.74%

3.69%

-5bp

4.09%

3.77%

-32bp

Deposit rate

3.39%

2.41%

0.95%

0.61%

0.56%

0.55%

0.54%

0.48%

-7bp

0.95%

0.53%

-42bp

3.92%

3.07%

3.14%

3.22%

3.22%

3.32%

3.20%

3.21%

2bp

3.14%

3.24%

10bp

Lending rate

4.57%

4.22%

2.83%

2.63%

2.60%

2.60%

2.61%

2.70%

9bp

2.83%

2.63%

-20bp

Deposit rate

1.87%

1.75%

0.79%

0.53%

0.48%

0.48%

0.50%

0.50%

0bp

0.79%

0.49%

-31bp

2.70%

2.47%

2.04%

2.09%

2.12%

2.12%

2.12%

2.21%

9bp

2.04%

2.14%

11bp

2.18%

1.98%

1.44%

1.47%

1.46%

1.46%

1.49%

1.51%

2bp

1.44%

1.48%

4bp

4Q10

QoQ(% )

12M09

NTD

NTD spread

Foreign currency

Foreign currency spread

NTD & foreign currency

Overall spread
NIM

1. 4Q10 & 12M10 numbers are preliminary and have yet to be reviewed by our auditors.
2. Credit card receivables are excluded in the calculation of NTD, foreign currency, and overall loan spread, and is included in the calculation of NIM.

34

CTCBs NII & Fee Breakdown - Consolidated

NII Breakdown
Yearly Results

Quarterly Results
1

YoY (%)

28,734

27,522

-4.2%

-1.3%

2,811

2,481

-11.8%

1,243

5.0%

4,641

4,764

2.6%

(2,568)

(2,698)

5.1%

6,270

6,430

2.5%

QoQ(%)

12M09

7,271

3.4%

622

614

1,176

1,184

(2,394)

(2,426)

5,915

6,067

2007

2008

2009

Loan interest & other interest

49,297

45,357

28,734

6,711

6,508

6,711

7,032

Revolving interest

5,008

4,357

2,811

654

639

606

Interest income from

marketable securities

8,208

8,149

4,641

1,110

1,161

(2,569)
5,906

Interest expense

(30,517) (28,368) (13,803)

Net interest income

31,997

29,495

22,384

4Q09

YTD Results

1Q10

2Q10

3Q10

4Q10

12M10

(13,803) (10,085)
22,384

24,682

-26.9%
10.3%

Fee Breakdown
Yearly Results
2007

2008

Quarterly Results
2009

4Q09

1Q10

2Q10

3Q10

YTD Results
1

4Q10

QoQ(%)

12M09

YoY (%)

12M10

Retail business group

Credit card business

6,882

7,873

7,380

1,949

1,810

1,716

1,771

1,725

-2.6%

7,380

7,021

-4.9%

8,895

4,689

6,773

4,231

1,993

2,097

2,153

2,562

19.0%

6,773

8,805

30.0%

1,238

1,716

1,917

544

500

543

511

555

8.5%

1,917

2,110

10.1%

Corporate business group

2,585

2,532

2,529

665

746

762

688

662

-3.8%

2,529

2,858

13.0%

Lottery Center

2,432

2,783

2,722

667

937

709

706

706

-0.1%

2,722

3,058

12.3%

22,032

19,593

21,321

8,056

5,986

5,828

5,829

6,209

6.5%

21,321

23,852

11.9%

Wealth management business

Banking business

Total fee income

1. 4Q10 and 12M10 numbers are preliminary and have yet to be reviewed by our auditors.
2. Wealth management fee jumped up from 4Q09 partially due to change of profit sharing scheme between CTCB and CTIB.

35

CTCBs Asset Quality - Consolidated

Yearly Results

Quarterly Results

(NT$mm)

2007

2008

2009

4Q09

1Q10

90-days NPLs - beginning

14,187

14,945

15,651

15,779

12,852

7,563

6,653

19,977

12,488

9,610

969

(2,422)

1,291

(3,896)

(2,868)

(2,200)

New NPL influx, net of recovery &

others
Write-offs & other deductions
90-days NPLs - ending

(19,219) (11,782) (12,409)

2Q10

3Q10

YTD Results
1

QoQ(%)

12M09

5,983

-10.1%

15,651

65

561

766.6%

9,610

(735)

(734)

5,983

4Q10

YoY (%)

12,852

-17.9%

12M10

(505) -105.3%

-0.2%

(11,823)

(6,537)

-44.7%

-2.9%

12,852

5,810

-54.8%

706 -451.5%

11,389

1,649

-85.5%

14,945

15,651

12,852

12,852

7,563

6,653

5,810

Provision for loan loss, net

6,898

7,688

11,389

4,600

266

879

(201)

Provision for credit card loss, net

3,228

2,512

970

112

(66)

22

207

863.2%

970

171

-82.4%

2,412

74

(63)

(5)

(92)

69

71

3.8%

74

43

-42.2%

(110)

985 -991.2%

12,433

1,863

-85.0%

13,743

12,789

-6.9%

Provisions for credit loss

Others, net

(51)

Total provisions

10,076

12,612

12,433

4,649

268

721

Total reserves

12,233

11,680

13,743

13,743

12,512

12,400

Yearly Results

12,063

12,789

6.0%

Quarterly Results
Dec 09

Mar 10

Jun 10

YTD Results

Sep 10 Dec 101

QoQ
(bp;pp)

YoY
(bp;pp)

2007

2008

2009

Corporate NPL ratio

1.44%

1.69%

1.78%

1.78%

0.85%

0.72%

0.68%

0.69%

1bp

1.78%

0.69%

-1pp

Retail NPL ratio

2.01%

1.66%

0.86%

0.86%

0.73%

0.63%

0.52%

0.42%

-10bp

0.86%

0.42%

-44bp

Total NPL ratio

1.68%

1.68%

1.40%

1.40%

0.80%

0.68%

0.61%

0.58%

-3bp

1.40%

0.58%

-1pp

12M09

12M10

90-day NPL ratio

1. 4Q10 and 12M10 numbers are preliminary and have yet to be reviewed by our auditors.

36

CTCBs Credit Card & Cash Card Business

Credit Card Business
Yearly Results
(NT$mm, %)

2007

Card in circulation (accumulative) (thousand)

Card consumption (Cash advance & spending)
(yearly & quarterly)

5,632

2008

Quarterly Results
2009

5,118

4,948

Dec 09

Mar 10

Jun 10

4,948

4,978

5,033

Sep 10 Dec 101 QoQ(%) YoY (%)

5,096

5,166

1.4%

4.4%

283,095

270,183

242,238

68,686

65,362

64,536

67,897

72,261

6.4%

5.2%

Revolving balance

32,630

23,640

22,046

22,046

21,827

20,507

20,561

20,332

-1.1%

-7.8%

Credit card receivables (incl. non-accrual

account)

70,367

63,386

60,767

60,767

56,305

59,516

56,465

58,948

4.4%

-3.0%

1,029

919

872

872

842

783

764

729

-4.6%

-16.4%

15pp

59pp

Reserves for credit card loss

Coverage ratio (over 90 days overdues)

100.00% 117.64% 176.19%

176.19% 189.35% 208.67% 220.86% 235.37%

Delinquency ratio (30 - 90 days overdues)

1.87%

1.91%

1.59%

1.59%

1.55%

1.36%

1.35%

1.19%

-16bp

-40bp

NPL ratio (90-day overdues)

1.46%

1.23%

0.81%

0.81%

0.79%

0.63%

0.61%

0.53%

-9bp

-29bp

8.11%

4.19%

1.75%

1.69%

0.34%

0.16%

-0.03%

-0.22%

-18bp

-2pp

Write off ratio (180 days overdues)

Cash Card Business

Yearly Results
2007
2008
2009

(NT$mm, %)
Card in circulation (accumulative) (thousand)
Debt outstanding
Reserves for cash card loss
Coverage ratio (over 90 days overdues)

Dec 09

Mar 10

Quarterly Results
Jun 10
Sep 10 Dec 101 QoQ(%) YoY (%)

190

144

117

117

112

107

102

98

-4.4%

-16.6%

14,190

9,902

7,566

7,566

7,079

6,657

6,254

5,833

-6.0%

-22.9%

417

296

308

308

296

267

271

315

1.7%

2.6%

100.00%

102.86%

141.83%

141.83%

142.69%

150.28%

180.71%

385.23%

205pp

243pp

Delinquency ratio (30-90 days overdues)

3.54%

2.70%

1.76%

1.76%

1.65%

1.41%

1.10%

0.93%

-16bp

-83bp

NPL ratio (90 days overdues)

2.94%

2.90%

2.87%

2.87%

2.93%

2.67%

2.40%

1.40% -100bp

-146bp

26.07%

19.18%

7.39%

7.39%

6.11%

7.92%

8.13%

8.48%

Write off ratio (180 days overdues)

35bp

1pp

1. Dec 10 numbers are preliminary and have yet to be reviewed by our auditors.
2. Write off ratios are YTD annualized numbers.
37