fubon financial holdings year 2015 overview · 2017. 3. 15. · corporate and mortgage loans growth...

2016.03.30

Fubon Financial Holdings

Year 2015 Overview

2

Disclaimer

This meeting may contain forward-looking statements with respect to the financial

condition, results of operations and business of the company. These forward-looking

statements represent the company’s expectations or beliefs concerning future events

and involve known and unknown risks and uncertainty that could cause actual

results, performance or events to differ materially from those expressed. Certain

statements, such as those that include the words “potential”, “estimated”, and similar

expressions or variations on such expressions may be considered “forward-looking

statements”. Financial numbers in this report may include preliminary unaudited

numbers or management accounts.

3

Performance review by subsidiary

• Fubon Life

• Fubon Securities

Performance highlights of Fubon Financial Holdings

• Fubon Insurance

Agenda

• Taipei Fubon Bank

• Overseas Banking Operation

4

Fubon Financial Holdings: Milestones in 2015

Fubon Life

Diversified investment portfolio and track record of investment

return. Recurring return continue to increase and well above

breakeven point

Strong growth in FYP and renewal premium

Banking franchise

Opportunities in

Overseas market

Taipei Fubon Bank: NII and wealth management growth

Fubon Bank (China): Portfolio review and decent asset quality

Fubon Bank (HK): Growth across revenue lines

Banking branches expansion in China

Strong premium from Fubon P&C (China) with 40 offices

Robust earning

performance

Record high financial results

Highest net profits and EPS among Taiwan FHCs for the 7th

consecutive year

5

Net profits Earning per share (EPS)

NT$ NT$bn

5

Fubon Financial Holdings: Profitability

Note: Fubon adopted fair value method for investment property evaluation since September 2014.

29.1

38.5

60.2 63.6

2012 2013 2014 2015

3.07

3.90

5.89 6.21

2012 2013 2014 2015

6

Fubon Financial Holdings: Net profits from major subsidiaries

Net profits from major subsidiaries Profit contribution from major subsidiaries

NT$bn NT$bn

Note:

(1) Profit contribution are based on the summation of five major

subsidiaries; (2) Fubon Bank (China) contributed NT$1.34bn net

profits to the Company on the basis of 80% shareholding.

Taipei Fubon Bank, 17.8 ,

27.0%

Fubon Life, 41.0 , 62.4%

Fubon P&C, 3.2 , 4.9%

Fubon Securities, 1.3 , 2.0%

Fubon Bank (HK), 2.4 ,

3.7%

60.2

18.2

35.4

2.8 1.4 2.3

63.6

17.8

41.0

3.2 1.3 2.4

FubonFHC

TaipeiFubonBank

Fubon Life FubonP&C

FubonSecurities

FubonBank (HK)

2014 2015

7 7

ROA ROE

Fubon Financial Holdings: ROA & ROE

0.75%

0.88%

1.21%

1.12%

2012 2013 2014 2015

10.71% 11.54%

16.07% 16.40%

2012 2013 2014 2015


4,106 4,597

5,438 5,987

2012 2013 2014 2015

306 342

408 368

2012 2013 2014 2015

8

Total assets Net worth

Capitalization of FHC and subsidiaries

Fubon Financial Holdings: Asset and net worth

NT$bn NT$bn

2015 Regulatory requirements

Fubon Financial CAR 124.8% 100%

Taipei Fubon Bank tier one 11.3% 6.0%

total CAR 13.4% 8.0%

Fubon Bank (HK) tier one 12.1% 6.0%


Fubon Bank (China) tier one 12.6% 7.3%


Fubon Insurance RBC 591.5% 200%

Fubon Life RBC 256.1% 200%

Fubon Securities CAR 440.0% 150%


Market

ranking

Market

share/amount

Monthly per card spending (1) 1 NT$9,001

Loan Syndication (2) 1 6.0%

Mortgage loan(2) 2 5.49%

FX derivative 2 14.3%

Market

ranking

Market

share

FYP through broker 1 20.6%

FYP through bancassurance 1 19.2%

First year premium 2 17.3%

Total premium 2 16.2%

FYP through tied agents 3 14.3%

Market

ranking

Market

share

Emerging stock trading 2 17.27%

IPO amount 2 16.92%

SPO amount 2 15.31%

Brokerage per branch(3) 2 0.09%

Brokerage 3 5.19%

Market

ranking

Market

share

Direct written premium 1 22.48%

Personal line 1 21.85%

Commercial line 1 24.01%

Average premium per employee

(million) 1 NT$11.76

Fubon Life Taipei Fubon Bank

Fubon Insurance Fubon Securities

9

Fubon Financial Holdings: Market position

Note: (1) Ranking among top 6 card issuers; per active card basis; (2) Ranking among private banks; (3) Ranking among top 10 brokers

All data as of 2015

Leading positions across business lines

10

Channels

• Bank branch relocation & Life agency growth

• e-platforms for efficiency and business growth

• Cross-sale synergy

Opportunities

• Growth opportunities in life insurance and wealth

management business

• Portfolio management along with asset growth

Fubon Financial Holdings: Growth

opportunities

Overseas expansion

• Business contribution aim to diversify

•M&A and strategic alliance opportunities from domestic and

overseas

11

Initiatives and development directions

Taipei Fubon Bank

Growth in SME and foreign currency assets

Opportunities from wealth management business

Maintain stable asset quality

Fubon Bank (Hong Kong)

Growth in SME and mass affluent market

Cross-sale wealth management products

New branch and e-banking experience

Fubon Bank (China)

Service and revenue diversification

SME and Taiwanese client expansion

Extension of branch network and e-payment

Fubon Life

Agent expansion national-wide

Retirement planning & Long term care focus

Asset allocation diversification

Fubon Securities

Growth in wealth management business

Continuous growth in online trading

Futures investment plan in China

Fubon Insurance

Product development from life-style concepts

Business diversification in China

Digital channel to facilitate sales and service

12


• Fubon Life



• Fubon Insurance

Agenda



50.0% 46.8% 39.3% 42.1%

28.3% 25.0%

24.0% 26.3%

21.7%

28.2%

25.0% 17.5%

11.7% 14.1%

2012 2013 2014 2015

Fubon Bank (China)

Treasury & others

Net fee income

Net interest income

13

Taipei Fubon Bank: Revenue

Revenue composition of Taipei Fubon Bank

NT$bn

Steadily growth from net interest income and net fees

29.2

33.7

Note: Consolidated basis; Fubon Bank (China) accounted starting from Jan. 7th, 2014

44.1 42.4

77.6% 79.1%

12.0% 11.0%

4.3% 5.2% 6.1% 4.7%

2014 2015

Others

Syndicationloan

Credit card

Wealthmanagement

14

Taipei Fubon Bank: Fee and wealth

management revenue

Sources of fee revenue(1) Wealth management fee(2)

NT$mn NT$mn

Note: (1) Fee income including Taipei Fubon Bank standalone and Taipei Fubon Bank Life Insurance Agency

(2) Wealth management revenue includes fee in the chart and other income (2015: NT$396mn; 2014: NT$743mn)

(3) Data are stand-alone basis in page 14-19

10,582 11,141

8,801 8,208

+7.2%

49.7% 57.6%

3.9%

5.9%

38.9%

30.6%

7.4%

5.9%

2014 2015

SN and others

Mutual funds

Custodian andtrust

Insurancecommission

15

Taipei Fubon Bank: Loan composition

Loans by type

NT$bn 1172.3 YoY +3.5.%

YoY -1.7%

YoY +1.5%

YoY +11.8%

YoY +2.6%

YoY -22.5%

Corporate and mortgage loans growth outperformed market

Loan growth excluding government loans reached 6%

1,132.7

8.9% 6.6%

51.7% 51.3%

34.9% 37.7%

3.9% 3.8%

0.6% 0.6%

Dec-14 Dec-15

Credit card revolving

Other consumer loans

Mortgage loan

Corporate loan

Government loan

203

210

209

211

207

31.1%

32.0% 31.7% 32.4% 33.5%

4Q14 1Q15 2Q15 3Q15 4Q15

SME SME as % of corporate credit

340.2 345.3 340.3 346.4 353.9

245.5 248.5 262.5 255.9 247.1

41.9% 41.9%

44.0%

42.5% 41.1%

4Q14 1Q15 2Q15 3Q15 4Q15

NTD Non-NTD Non-NTD loan as % of corporate loan

16

Taipei Fubon Bank: Corporate credit

Corporate loan by currency SME credit and as % of corporate credit

NT$bn

Foreign currency loan represents 41.1% of corporate loan

SME credit accounts for 33.5% of corporate credit

NT$bn

Note: SME credit and corporate credit include loan and trade finance Note: Ending balance

17

Taipei Fubon Bank: Interest yield and margin

NIM and loan-to-deposit spread

Loan yield and deposit yield

Note: Loan rate calculation inclusive of credit card revolving

1.07% 1.10% 1.08% 1.04% 1.24% 1.28% 1.31% 1.32%

1Q15 2Q15 3Q15 4Q15

NIM Loan-to-deposit spread

1.10% 1.07% 1.27% 1.29%

2014 2015

2.05% 2.05% 2.05% 2.03%

0.81% 0.77% 0.74% 0.70%

1Q15 2Q15 3Q15 4Q15

Loan rate Deposit rate

2.07% 2.04%

0.79% 0.76%

2014 2015

54.0% 55.1%

46.0% 44.9%

Dec-14 Dec-15

Time

Demand

40.3% 43.4%

59.7% 56.6%

Dec-14 Dec-15

Time

Demand

18

Taipei Fubon Bank: Deposit mix and LDR

NTD loan-to-deposit ratio (LDR) Deposit mix in NTD

Deposit mix in foreign currency

NT$bn

NT$bn

Foreign currency LDR

990 1,088

392 468

89.1% 84.5%

Dec-14 Dec-15

63.6% 53.5%

Dec-14 Dec-15

Note: Ending balance

1,987

(247)

2014 20150.0%

0.2%

0.4%

0.6%

Dec-12 Dec-13 Dec-14 Dec-15

Corporate loan Mortgage loan

19

Taipei Fubon Bank: Asset quality

NPL ratio

NPL ratio by business Net provision

Coverage ratio

0.22%

0.03%

NT$mn

Net recovery

0.17%

0.11% 0.11% 0.12%

0.15%

Dec-14 Mar-15 Jun-15 Sep-15 Dec-15

788.6%

1096.0% 1113.1% 1033.5%

816.4%

Dec-14 Mar-15 Jun-15 Sep-15 Dec-15

20


• Fubon Life



• Fubon Insurance

Agenda



249.7 212.9

191.0 205.3

171.0 207.2 234.0

269.1

2012 2013 2014 2015

Renewal premium

FYP

11.6% yoy growth in total premium income

FYP and renewal premium grew constantly in 2015

21 21

NT$bn

Fubon Life: Total premium

420.7 420.1

425.0

474.4

56.7%

43.3%

55.1%

44.9%

49.3%

50.7%

40.6%

59.4%

FYP composition

22

Fubon Life: First year premium (FYP)

Sustained strong FYP in 4Q15. 7.5% yoy growth in 2015 from diversified type of products

NT$bn 1Q15 2Q15 3Q15 4Q15 2015 % 2014 % YoY

growth

Traditional life: Regular-paid 10.7 14.0 13.0 13.5 51.2 24.9% 50.2 26.3% 2.1%

Traditional life: Single-paid 20.8 21.2 32.8 32.7 107.6 52.4% 112.2 58.8% -4.1%

Interest-sensitive annuity 1.5 3.3 7.0 7.2 19.0 9.2% 8.3 4.4% 127.2%

Investment-linked 3.1 3.3 6.7 6.6 19.6 9.6% 14.9 7.8% 32.1%

Health, accidents and others 1.4 1.8 2.6 2.2 7.9 3.9% 5.4 2.8% 47.0%

Total 37.4 43.6 62.2 62.1 205.3 100.0% 191.0 100.0% 7.5%

FYPE growth 15.5% yoy mainly came from traditional regular-paid policies. FYPE/FYP trend

improvement

VNB grew 10.4% in 2015 yoy based on EV 2014 assumptions

VNB FYPE

23

NT$bn

Fubon Life: Value of new business (VNB) &

First year premium equivalent (FYPE)

FYPE

/FYP

NT$bn

VNB/

FYP 25.4% 30.5% 32.7%

54.2

58.2

67.2

9.5% 9.5% 11.8% 10.3%

1.4% 2.9%

1.8% 2.7%

3.1%

20.1% 19.3%

15.9%

58.3% 67.1%

66.3%

2013 2014 2015

Traditional life:Regular-paid

Traditional life:Single-paid

Investment-linked

Interest-sensitive annuity

Health,accidents andothers

15.0% 18.2% 18.7%

31.8

34.8

38.4

2013 2014 2015

Note: 2015 VNB is based on 2014 EV actuarial assumptions

FYPE by channel

24

Fubon Life: Sales channel

Diversified channel strategy

Agency force growth rate of 12.8% yoy outperformed peers

NT$4.35bn of P&C insurance premium sold through life agency channel, up 14% yoy

83,102 new credit cards promoted by life agency channel

Number of agency force

16,681

18,823

2014 2015

35.7% 34.3%

31.1% 33.6%

18.9% 19.4%

14.3% 12.7%

2014 2015

Other

Bancassurance: through Taipei Fubon bank

Bancassurance: through external banks

Tied agents

25 25

Investment income mainly came from recurring revenue

Total investment income reached a new high level

Fubon Life: Composition of investment income

Note: *2013 data is on pro forma basis to reflect fair value method for investment property evaluation.

NT$bn 2012 2013* 2014 2015 YoY

growth

Recurring investment income 62.7 75.2 88.7 101.0 13.9%

Realized gains from fixed income investment 7.9 8.0 12.1 9.9 -18.6%

Realized gains from equity investment 4.7 4.0 14.0 22.6 61.3%

FX and others -6.6 -6.3 -6.4 -3.6 -43.4%

Investment property fair value movement - 5.4 1.4 0.4 -75.6%

Investment income 68.6 86.3 109.9 130.3 18.6%

Total investment assets 1,932.3 2,227.2 2,588.0 2,814.0 8.7%

2014/12/31 2015/12/31

NT$bn

Deposit and cash equivalent 87.2 3.4% 168.6 6.0%

Domestic fixed income 602.8 23.3% 523.2 18.6%

Overseas fixed income* 1,176.5 45.5% 1,372.6 48.8%

Domestic equity 269.3 10.4% 221.7 7.9%

Overseas equity 177.6 6.9% 182.3 6.5%

Mortgage loans 70.8 2.7% 86.4 3.1%

Policy loans 51.3 2.0% 55.1 2.0%

Real estate 152.5 5.9% 204.1 7.3%

Total Investments 2,588.0 100.0% 2,814.0 100.0%

Domestic 1,233.9 47.7% 1,185.9 42.1%

Overseas* 1,354.1 52.3% 1,628.1 57.9%

26 26

Investment assets grew steadily

Investment portfolio repositioned in response to market volatility

Fubon Life: Investment portfolio

Note: *Including OTC-listed international bond, the international bonds investment reached 7.3% of total investment assets as of 2015

27

Fubon Life: Portfolio of Overseas fixed

income

Overseas fixed income by region Overseas fixed income by asset type

6.0% 3.0%

45.8%

39.2%

44.0% 54.3%

4.2% 3.5%

2014 2015

Others

Corporatecredit

Financialbond

Governmentbond

22.9% 18.4%

50.4% 60.1%

26.7% 21.5%

2014 2015

Asia & Other

North America

Europe

-55

-28

-3

0

2014 2015

CS cost FX gain/loss & net provision of FX reserve

28 28

Hedging cost & FX gain/loss FX position

Recurring return

Fubon Life: Hedging composition

3.84% 3.86%

3.57% 3.70%

2014 2015

Beforehedge

Afterhedge

-58bps -28bps

Currency swap &

FX Policy 75.6%

Naked USD, 10.8%

Other currencies,

1.5% Equities/ mutual funds , 12.1%

29 29

Fubon Life: Positive investment spread

widened Cost of liability improvement and increase in investment return

Positive spread between recurring return and breakeven point (net underwriting cost) widened

Breakeven point = (Profit before tax – Investment income) /

Average investment assets

Investment spread Recurring return and breakeven point

3.88% 3.84%

4.74% 4.97%

2014 2015

Cost of liabilities Investment return

2.91% 2.97%

3.57% 3.70%

2014 2015

Breakeven point Recurring return

57.7

-15.6

32.3

41.0

30 30

Investment Return

Unrealized outstanding

Fubon Life: Investment performance

Improvement in unrealized position

Recurring return grew steadily. Total investment return reached a new high level

NT$bn

3.33% 3.43% 3.48% 3.57% 3.70%

0.47% 0.58% 0.95% 1.17% 1.27%

2011 2012 2013 2014 2015

Recurring investment return Capital gains

3.80% 4.01%

4.42% 4.74%

4.97%

(24.6) (15.6)

6.6 3.6

Sep-15 Dec-15

AFS HTM+Inactive

(18.1) (12.0)

NT$bn Realized

gains

Equity ,fund dividend &

Mark to market

Dec-14 Dec-15

Movement of unrealized gains from AFS assets

31


• Fubon Life



• Fubon Insurance

Agenda



53.1% 54.0%

35.9% 37.0%

2014 2015

Net expense ratio

Net claim ratio

48.7% 49.6%

17.9% 16.4%

6.0% 6.0% 3.6% 3.2%

14.2% 14.9%

9.6% 9.9%

2014 2015

Others

Health/Injury

Engineering

Marine

Fire

Auto

32

Net combined ratio

32

NT$bn

Premium growth outperformed industry. Top 1 position in premium market share.

Solid underwriting performance and profitability

Note: Standalone basis Note: Exclusive of auto compulsory due to the claims are reimbursed.

Fubon Insurance: Operating snapshot

Direct written premium by product

29.2 30.4

91.1% 89.0%

Fubon P&C (China): Business progress

Net combined ratio Gross written premium

33

Operation expanded to Sichuan province in 2015. 40 offices in Fujian, Liaoning, and Chongqing

Top 6 among foreign players in Mainland China in terms of premium with 26% growth yoy

80 .0%

80.7%

20.0%

19.3%

2014 2015

RMB$mn

Commercialline

Personalline

872.6

692.5

55.70% 57.90%

14.55% 19.20%

40.90% 41.70%

2014 2015

FixedExp.Ratio

VariableExp.Ratio

Loss Ratio

118.8% 114.4%

34


• Fubon Life



• Fubon Insurance

Agenda



1,356 1,348

2014 2015

5,955 6,025

2014 2015

35

Fubon Securities: Financial highlights

Market share & ranking

Operating revenue

NT$mn

Stable market position in major business

lines

Growth in wealth management business

Leading position in underwriting business

Innovative in brokerage interface

Net profits

2015 Ranking 2014 Ranking

Brokerage per

branch 0.10% #2 0.10% #2

Emerging stock

trading 17.27% #2 18.58% #2

IPO amount 16.92% #2 24.23% #1

SPO amount 15.31% #2 7.24% #5

Brokerage 5.19% #3 5.73% #3

AUM of WM

business (NT$mn) 12,699 #4 - -

NT$mn

36


• Fubon Life



• Fubon Insurance

Agenda



83,860 90,993

2014 2015

10,416

10,806

2014 2015

52,664

58,385

2014 2015

40,368

42,570

2014 2015

37

Fubon Bank (Hong Kong): Key balance

sheet items

Assets

Deposits Loans

Net worth

HK$m

Core revenue grow steadily. Loan mix adjustment to enhance yield

HK$m

HK$m

HK$m

38

Fubon Bank (Hong Kong): Financial

highlight

ROAA & ROAE

NIM Net Profits

NPL ratio & Coverage ratio

HK$m

Earnings growth driven by net interest revenue and net fee revenue

NPL formation due to selective corporate accounts

481

522

2014 2015

1.20%

1.40%

2014 2015

0.02%

0.52%

526.1%

79.0%

2014 2015

NPL ratio Coverage ratio *

0.62% 0.60%

5.18%

4.92%

2014 2015

ROAA ROAE

Note: * Coverage ratio = ( Allowance for loan losses + Secured balance ) / NPL

39

Fubon Bank (China): Key balance sheet

items

Assets Net worth

61,604

73,647

Dec-14 Dec-15

4,547

4,879

Dec-14 Dec-15

21,779 24,159

9,384 6,664

Dec-14 Dec-15

Rediscount Loans (excluding rediscount)

Deposits Loans

RMB$m

30,822 31,163 42,063

46,013

Dec-14 Dec-15

RMB$m RMB$m

RMB$m

40

Fubon Bank (China): Financial highlight

ROAA & ROAE

NIM Net Profits

NPL ratio & Coverage ratio

RMB$m 422

390

2014 2015

1.83% 1.78%

2014 2015

0.76% 0.58%

11.09%

8.28%

2014 2015

ROAA ROAE

0.89% 1.04%

282.3% 265.1%

Dec-14 Dec-15

NPL Coverage ratio

Thank you

Fubon Financial - Financial summary

NT$ millions, except for percentages 2014 2015 YoY 1Q15 2Q15 3Q15 4Q15

Income Statement Data

Net interest income 89,315 94,965 6.3% 22,241 22,387 24,892 25,445

Insurance income 230,938 264,088 14.4% 45,819 56,538 84,384 77,347

Net gains (losses) on FX and financial assets 59,719 73,991 23.9% 19,236 22,537 23,114 9,104

Others 1,863 (2,801) N.M. 515 (1,042) (2,082) (192)

Net revenue 381,835 430,243 12.7% 87,811 100,420 130,308 111,704

Bad debt expense and reserve for guarantee (2,988) (1,212) -59.4% (6) 617 (89) (1,734)

Net change in insurance reserve (257,599) (296,913) 15.3% (50,667) (61,766) (97,407) (87,073)

Operating expense (49,305) (54,300) 10.1% (12,454) (13,117) (13,364) (15,365)

Income before tax 71,943 77,818 8.2% 24,684 26,154 19,448 7,532

Net income 60,478 63,806 5.5% 20,143 22,027 16,177 5,459

Net income to parent company 60,244 63,593 5.6% 20,094 21,959 16,090 5,450

Balance Sheet Data

Total assets 5,438,358 5,987,468 10.1% 5,554,450 5,575,005 5,860,919 5,987,468

Equity attributable to parent company 408,057 367,622 -9.9% 439,713 383,657 355,526 367,622

Outstanding shares (million shares) 10,234 10,234 0.0% 10,234 10,234 10,234 10,234

Key Metrics

Return on average assets 1.21% 1.12% 1.47% 1.60% 1.15% 0.38%

Return on average equity 16.07% 16.40% 18.96% 22.19% 16.86% 5.62%

Equity / assets 7.65% 6.28% 8.06% 7.03% 6.21% 6.28%

Double leverage 114.01% 120.55% 113.10% 119.36% 121.04% 120.55%

Capital adequacy ratio 137.36% 124.83%

Cash dividend per share 3.00

Taipei Fubon Bank - Financial summary


Income statement data

Interest income 45,231 46,647 3.1% 11,441 11,572 11,906 11,727

Interest expense (22,964) (23,294) 1.4% (6,118) (5,763) (5,830) (5,584)

Net interest income 22,268 23,352 4.9% 5,324 5,809 6,076 6,143

Net fee income 11,080 11,649 5.1% 3,067 2,963 2,890 2,730

Other income 10,727 7,367 -31.3% 1,943 2,128 2,003 1,293

Total net revenue 44,075 42,369 -3.9% 10,333 10,900 10,969 10,167

Operating expenses (19,293) (20,690) 7.2% (4,903) (5,084) (5,166) (5,537)

Pre-provision profits 24,782 21,679 -12.5% 5,430 5,816 5,803 4,630

Provision for credit losses (2,261) (177) -92.2% 209 740 153 (1,279)

Income before tax 22,521 21,502 -4.5% 5,639 6,556 5,956 3,351

Net income 19,131 18,606 -2.7% 5,048 5,610 5,105 2,842

Net income to parent company 18,237 17,783 -2.5% 4,873 5,372 4,806 2,732

Balance sheet data

Loans and discounts 1,304,563 1,353,533 3.8% 1,339,635 1,329,011 1,357,185 1,353,533

Deposits and remittances 1,606,174 1,813,356 12.9% 1,622,975 1,675,802 1,751,102 1,813,356

Allowance for loan losses* 15,483 14,651 -5.4% 14,575 14,018 13,965 14,651

Total assets 2,165,405 2,409,836 11.3% 2,191,409 2,211,637 2,387,116 2,409,836

Equity attributable to parent company 151,604 165,696 9.3% 156,178 157,422 163,712 165,696

Key metrics



Equity / assets 7.88% 7.69% 7.99% 7.98% 7.70% 7.69%

Cost / income ratio -43.77% -48.83% -47.45% -46.64% -47.10% -54.46%

NPL ratio* 0.17% 0.15% 0.11% 0.11% 0.12% 0.15%

Reserve / NPL* 788.58% 816.37% 1095.99% 1113.09% 1033.47% 816.37%

Tier 1 ratio* 10.43% 11.30% 11.22% 11.30%

BIS ratio* 13.11% 13.44% 13.76% 13.44%

Note: Data mark with * are stand-alone basis

Fubon Life - Financial summary



First year premium 190,974 205,282 7.5% 37,418 43,604 62,152 62,108

Retained earned premium 390,077 440,297 12.9% 92,422 99,205 125,791 122,879

Total investment income 109,876 130,256 18.5% 34,591 36,376 32,907 26,382

Recurring investment income 88,695 101,040 13.9% 19,736 22,885 33,093 25,326

Other investment income 21,181 29,216 37.9% 14,855 13,491 (186) 1,056

Realized gains (losses) from fixed income 12,127 9,870 -18.6% 6,872 4,112 (2,633) 1,520

Realized gains (losses) from equity 14,021 22,622 61.3% 11,331 12,271 (368) (612)

FX and others (6,413) (3,629) -43.4% (3,541) (2,969) 3,301 (420)

Investment property fair value movement 1,446 353 -75.6% 193 77 (486) 569

Other income 2,006 2,159 7.6% 367 458 686 647

Total operating revenue 501,960 572,711 14.1% 127,381 136,038 159,383 149,908

Retained claim payment 168,249 187,601 11.5% 49,610 45,926 44,330 47,735

Net commission expense 23,215 26,093 12.4% 5,378 6,300 7,314 7,101

Net change in insurance liability 254,691 292,665 14.9% 51,957 62,329 91,860 86,518

General and administrative expense 13,652 15,526 13.7% 3,491 3,601 3,761 4,672

Other expenses 1,078 1,932 79.2% 379 664 447 441

Total operating costs and expenses 460,885 523,816 13.7% 110,816 118,821 147,713 146,466

Net non-operating income / (expenses) 222 518 133.7% 144 91 141 141

Income before tax 41,296 49,413 19.7% 16,710 17,309 11,812 3,583

Net income 35,367 41,018 16.0% 13,252 15,827 9,770 2,169

Net income to parent company 35,367 41,018 16.0% 13,252 15,827 9,770 2,169

Balance sheet data

Total assets 2,790,427 3,035,563 8.8% 2,845,002 2,843,190 2,951,402 3,035,563

Total assets (general account) 2,653,199 2,900,201 9.3% 2,708,199 2,709,001 2,821,057 2,900,201

Insurance liabilities 2,257,099 2,565,049 13.6% 2,303,213 2,361,552 2,478,613 2,565,049

Total liabilities 2,566,830 2,852,781 11.1% 2,597,645 2,634,408 2,778,892 2,852,781

Total liabilities (general account) 2,429,603 2,717,419 11.8% 2,460,842 2,500,220 2,648,546 2,717,419

Equity attributable to parent company 223,597 182,782 -18.3% 247,357 208,781 172,511 182,782

Key matrices



Equity / Assets 8.01% 6.02% 8.69% 7.34% 5.85% 6.02%

Claims and benefits ratio 43.13% 42.61% 53.68% 46.29% 35.24% 38.85%

Expense ratio 3.50% 3.53% 3.78% 3.63% 2.99% 3.80%

Persistency ratio - 13th month 95.12% 96.66% 95.24% 95.22% 94.57% 96.66%

Persistency ratio - 25th month 89.67% 92.07% 90.13% 90.43% 90.71% 92.07%

Fubon Insurance - Financial summary



Direct written premiums 32,718 35,016 7.0% 8,150 9,540 8,452 8,874

Retention of earned premiums 24,653 27,139 10.1% 6,450 6,833 7,024 6,833

Net income from investment 2,498 2,811 12.5% 735 852 739 485

Other operating revenue 1,082 1,295 19.7% 297 304 331 363

Retained insurance payments 13,128 14,250 8.5% 3,218 3,348 3,796 3,887

Net change in liability reserve 626 656 4.7% 352 256 377 (329)

Commission and operating expenses 11,363 12,772 12.4% 2,885 3,203 3,178 3,506

Non-Operating Income (109) (96) -12.2% (22) (29) (36) (9)

Income before tax 3,007 3,472 15.5% 1,005 1,153 707 607

Net income 2,420 2,839 17.3% 826 962 566 485

Net income to parent company 2,816 3,213 14.1% 895 1,050 674 595

Balance sheet data

Total assets 83,349 89,213 7.0% 86,170 87,732 90,125 89,213

Investment assets 60,362 64,689 7.2% 63,377 61,978 64,278 64,689

Policy reserve 44,930 47,470 5.7% 45,445 47,350 48,059 47,470


Summary ratios



Total investment return 4.21% 4.50% 4.83% 5.57% 4.74% 3.10%

Solvency margin (NWP/equity) 94.11% 97.95% 87.28% 104.81% 97.27% 99.62%

Retention ratio 76.11% 75.30% 76.42% 74.35% 75.13% 75.46%

Fubon Securities - Financial summary



Brokerage commissions 3,204 3,044 -5.0% 692 790 771 791

Net interest income 932 942 1.0% 247 274 202 219

Fee income 157 298 89.7% 19 26 11 242

Net principal transactions and financial products gains 575 324 -43.6% 348 (92) (266) 334

Other income 1,089 1,419 30.3% 182 399 626 212

Total operating revenue 5,955 6,025 1.2% 1,488 1,398 1,345 1,797

Total operating expense (5,146) (5,216) 1.4% (1,214) (1,305) (1,292) (1,405)

Net non-operating income / (expenses) 678 685 1.0% 128 180 193 184

Income before tax 1,488 1,494 0.4% 402 272 245 575

Net income 1,356 1,348 -0.6% 362 193 233 560

Net income to parent company 1,356 1,348 -0.6% 362 193 233 560

Balance sheet data

Margin loans 16,338 11,950 -26.9% 17,830 15,185 10,219 11,950

Total assets 69,957 84,481 20.8% 81,455 83,085 81,215 84,481


Key metrics



Equity / assets 44.79% 37.38% 39.34% 37.49% 38.25% 37.38%

Expenses / revenues -86.41% -86.57% -81.60% -87.30% -90.12% -86.57%

Margin loans / total assets 23.35% 14.14% 21.89% 18.28% 12.58% 14.14%

Margin loans / shareholders' equity 52.14% 37.84% 55.64% 48.75% 32.90% 37.84%

Fubon Bank (Hong Kong) - Financial Summary

HK$ millions, except for percentages 2014 2015 YoY 1H15 2H15 HoH


Interest income 1,677 1,809 7.9% 881 929 5.5%

Interest expense (835) (736) -11.8% (381) (355) -6.9%

Net interest income 842 1,073 27.5% 499 574 14.9%

Net fee income 317 353 11.2% 198 155 -21.9%

Other income 147 78 -47.2% 115 (37) N.M.

Total revenue 1,306 1,504 15.1% 813 691 -14.9%

Operating expenses (897) (1,027) 14.4% (455) (572) 25.6%

Provision for loan losses/ write-back (16) (58) 270.9% (10) (48) 405.0%

Net non-operating income 161 194 20.5% 101 93 -7.5%

Income before tax 555 613 10.6% 449 164 -63.3%

Net income 481 522 8.4% 378 144 -61.9%

Balance Sheet Data

Gross loans 40,368 42,570 5.5% 44,338 42,570 -4.0%

Customers Deposits 52,664 58,385 10.9% 56,901 58,385 2.6%

Allowance for loan losses 46 75 63.4% 46 75 64.6%

Total assets 83,860 90,993 8.5% 89,910 90,993 1.2%

Shareholders' equity 10,416 10,806 3.7% 10,798 10,806 0.1%

Key metrics

Return on average assets 0.62% 0.60% 0.88% 0.33%

Return on average equity 5.18% 4.92% 7.18% 2.69%

Equity / assets 12.42% 11.88% 12.01% 11.88%

Net fee income / total revenue 24.30% 23.47% 24.39% 22.38%

Cost / income ratio -68.70% -68.29% -56.04% -82.70%

NPL ratio 0.02% 0.52% 0.02% 0.52%

Reserve / NPL 526.05% 33.95% 497.23% 33.95%

Gross Loans/Customers Deposits ratio 76.65% 72.91% 77.92% 72.91%

Tier 1 ratio 12.65% 11.81% 11.81% 11.81%

BIS ratio 17.96% 16.62% 16.58% 16.62%

Fubon Bank (China) - Financial Summary

RMB millions, except for percentages 2014 2015 YoY 1Q15 2Q15 3Q15 4Q15


Interest income 2,425 2,232 -7.9% 572 559 550 552

Interest expense (1,846) (1,925) 4.3% (515) (482) (480) (449)

Net interest income 579 307 -47.0% 57 77 70 102

Net fee income 141 120 -14.8% 30 34 31 25

Other income 250 669 167.6% 101 156 190 222

Operating expenses (378) (519) 37.1% (101) (120) (120) (178)

Pre-provision profits 591 577 -2.4% 88 147 172 170

Provision for credit losses (59) (84) 41.0% 18 (4) 1 (98)

Income before tax 532 493 -7.3% 106 143 173 72

Net income 422 390 -7.5% 84 112 135 59

Balance Sheet Data

Loans 31,163 30,822 -1.1% 28,237 29,493 29,813 30,822

Deposits 42,063 46,013 9.4% 37,882 41,185 41,222 46,013

Total assets 61,604 73,647 19.5% 60,885 65,541 69,033 73,647

Total equity 4,547 4,879 7.3% 4,578 4,669 4,791 4,879

Key metrics



Equity / assets 7.38% 6.63% 7.52% 7.12% 6.94% 6.63%

Cost / income ratio -35.08% -43.72% -48.02% -41.27% -37.86% -48.11%

NPL ratio 0.89% 1.04% 1.17% 1.03% 1.13% 1.04%

Reserve / NPL 282.25% 265.11% 230.00% 252.23% 228.81% 265.11%

Loan to deposit ratio (Renminbi) 70.13% 74.91% 68.74% 69.10% 69.32% 74.91%

Tier 1 ratio 13.93% 12.59% 13.65% 13.04% 12.72% 12.59%

BIS ratio 15.08% 13.73% 14.80% 14.19% 13.87% 13.73%

fubon financial holdings year 2015 overview · 2017. 3. 15. · corporate and mortgage loans growth...

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