Taishin Financial Holding Company

Transcription

1 Taishin Financial Holding Company 2003 Result Announcement & Analyst Meeting February 10, 2004

2 Agenda Section Performance Review (preliminary) Section Earnings Outlook Section 3 Business Strategy Section 4 Appendix 2

3 Section Performance Review (preliminary)

4 2003 Performance Review by Subsidiary Aftertax Earnings (NT$mn) EPS (NT$) ROE (%) ROA (%) CAR (%) Target Actual* Achievement Target Actual* Actual* Actual* Actual* Taishin FHC 7,231 7, % Taishin Bank 5,476 6, % Taiwan Securities 1,423 1, % Taishin Bills % * Preliminary figures 4

5 2003 Performance Breakdown by Function Wealth Management 16.3% 2003 Revenue* 2003 Pretax Earnings* Wholesale Banking 21.2% Wealth Management 14.9% Wholesale Banking 27.5% Retail Banking 62.5% Retail Banking 57.6% * Preliminary figures 2003 Target Revenue 2003 Target Pretax Earnings Wealth Management 13.6% Wholesale Banking 22.9% Wealth Management 13.4% Wholesale Banking 27.1% Retail Banking 63.5% Retail Banking 59.5% 5

6 Taishin Bank 2003 Financial Results YoY Loan (NT$bn) % Corporate loan as % of total loan 39% 33% Consumer loan as % of total loan 61% 67% Deposit (NT$bn) % Demand deposit as % of total deposit 30% 36% Loan to Deposit Ratio* 88% 92% Interest Spreads 5.97% 6.38% NIM 4.84% 5.17% NPL Ratio 2.45% 1.59% Coverage Ratio 49% 48% Cost/Income Ratio 45% 48% * Yearend data average loan to deposit ratio was 87%. 6

7 Asset Quality Further Improved NPL Amount (NT$mn) NPL Ratio (%) Coverage Ratio Writeoff (NT$mn) Provision (NT$mn) Broadbased NPL Ratio (%) Broadbased Coverage Ratio (%) , % 49% 20,903 6, % 39% , % 48% 9,089 7, % 43% 7

8 Highmargin Products Lead Loan Growth Corporate 39% Mortgage 34% Corporate 33% Mortgage 35% Highmargin 27% Highmargin 32% credit card cash card personal loan auto loan 2 nd mortgage credit card cash card personal loan auto loan 2 nd mortgage Total Loan: NT$338.0bn 17.5% YoY Total Loan: NT$397.2bn 8

9 Fee Income Increased to 17.6% of Total Revenue Gross Fee Composition Grossl Fee Income/Total Revenue (%) 7,000 6,000 5,000 In NT$ mn 4,229 6, % 8.4% 12.2% 03 Total Fee growth: 59% Others 03YoY: 42% Bancassurance 03YoY: 57% 17.6% 4, % 12.4% Loan Services 03YoY: 88% 10.0% 11.8% 3,000 2,000 1, % 2, % 15.6% 5.2% 5.6% 9.5% 13.3% 9.7% 46.9% 55.8% 14.8% 34.7% Treasury 03YoY: 283% Trust 03YoY: 149% Credit Card 03YoY: 18%

10 Section Earnings Outlook

11 Financial Target FHC (F) YoY Aftertax Earnings (NT$mn) 7,584 10,051 33% EPS (NT$) * 28% ROE (%) ROA (%) CAR (%) Double Leverage Ratio (%) Double Leverage Ratio (%)** Book Value per Share (NT$) % P/BV (x)*** P/E (x)*** *EPS of NT$2.88 is not based on fully converted of CB and ECB; If assuming fully diluted, EPS will be NT$2.69. **Excluding preferred shares ***2004/2/9 closing price at NT$

12 Financial Targets Subsidiaries Taishin Bank (F) YoY Pretax Earnings (NT$mn) 8,008 10,721 34% Aftertax Earnings (NT$mn) 6,362 8,290 30% EPS (NT$) % ROE 17.62% 20.28% ROA 1.14% 1.32% Taiwan Securities (F) YoY Pretax Earnings (NT$mn) 1,528 3, % Aftertax Earnings (NT$mn) 1,303 2,293 76% EPS (NT$) % ROE 8.32% 11.87% ROA 2.78% 5.30% Taishin Bills (F) YoY Pretax Earnings (NT$mn) % Aftertax Earnings (NT$mn) % EPS (NT$) % ROE 12.19% 8.95% ROA *Based on financing method 4.72% 0.94%* 12

13 FHC Target Breakdown by Function 2003 Revenue 2003 Pretax Earnings Wealth Management 16.3% Wholesale Banking 21.2% Wealth Management 14.9% Wholesale Banking 27.5% Retail Banking 62.5% Retail Banking 57.6% 2004 Target Revenue 2004 Target Pretax Earnings Retail Banking 64.3% Wealth Management 16.5% Wholesale Banking 19.2% Wealth Management 23.3% Retail Banking 49.7% Wholesale Banking 26.9% 13

14 Crossselling selling Performance Third Party s Products 2003 Target 2003 Actual Achievement Rate 2004 Target YoY Bancassurance (first premium) NT$5.3bn NT$6.8bn 128% NT$8.0bn 18% Bancassurance (fee) NT$548mn NT$568mn 104% NT$600mn 6% Sales of Mutual Fund/Structured Notes (volume) NT$68.2bn NT$69.8bn 102% NT$136.6bn 96% Sales of Mutual Fund/Structured Notes (fee income) NT$602mn NT$892mn 148% NT$2.24bn 151% Selfdeveloped Products 2003 Target 2003 Actual Achievement Rate 2004 Target YoY Cash Card (Number of cards) 360, ,000 77% 300,000 8% Credit Card (Number of cards) 62, , % 160,000 7% Fee Income from TMU NT$360mn NT$836mn 232% NT$1.56bn 87% Note: accumulated figures 14

15 Taishin Bank Other Key Targets YoY Loan NT$397bn NT$480bn 21% Deposit NT$434bn NT$550bn 27% NIM 5.17% 5.30% Cost/Income Ratio 48% 48% NPL Ratio 1.59% 1.35% Coverage Ratio 48% 48% Broadbased NPL Ratio 1.78% 1.50% Broadbased Coverage Ratio 43% 43% 15

16 Total Loan to Grow 21% YoY (F) Corporate 33% Highmargin 32% Mortgage 35% Corporate 30% Highmargin 35% Mortgage 35% credit card cash card personal loan auto loan 2 nd mortgage credit card cash card personal loan auto loan 2 nd mortgage Total Loan: NT$397bn 21% YTD Total Loan: NT$480bn 16

17 Section 3 Business Strategy

18 Business Strategies Retail Banking Expand market share New products and new channels Payforperformance incentive program Leveraging existing customer base by utilizing CRM Retain profitability by focusing on high ROA products Cash card Credit card revolving loans & M&A opportunities Unsecured personal loans Enhance risk management Application and behavior scoring Basel II implementation Foreign consulting for cash cards 18

19 etail Banking Revenue Breakdown (F) Loan Spread 82% Fee Income 17% Loan Spread 84% Fee Income 15% Others 1% Others 1% 19

20 Business Strategies Wealth Management Further integrate resources and channels within FHC platform Further strengthen VIP service network Enforce nationwide chainstore collective VIP service model Enhance FA/PM talents and capacity Implement AUMemphasized performance reward system Aggressively expand brokerage market share Expand across key product lines: equities, margin loans, futures, and derivatives Leverage TSC s and Taishin Bank s branch networks Capture M&A opportunities to fill in current branch network gap Increase proprietary position to capture the current bull market 20

21 ealth Management Revenue Breakdown (F) Fee Income 76% Fee Income 76% Loan Spread 14% Trading 6% Others 4% Loan Spread 9% Trading 7% Others 8% 21

22 Business Strategies Wholesale Banking Focus on key account & midcorp clients Secure major deals in ECB and/or syndication loans Enhance sales forces & provide full range products Upgrade sales platform Integrate sales forces across different product units Recruit more RM/PM talents Implement performancedriven reward systems Facilitate China Market Leverage China Desk & HK subsidiaries Enhance Risk Management Continuous investment in risk management systems 22

23 holesale Banking Revenue Breakdown (F) Others 3% Cash Mgmt 5% Trading 34% Fee Income 21% Loan Spread 37% Others 4% Cash Mgmt 5% Trading 34% Fee Income 30% Loan Spread 27% 23

24 holesale Banking Key Indicator ECB (US$mn) Bond Underwriting (NT$bn) Syndication (NT$bn) Factoring (NT$bn) IPO/SPO Derivative Top 3 Top (F) Top 3 Top 3 24

25 Section 4 Appendix

26 FHC Target Breakdown by Subsidiary 2003 Revenue* 2003 Pretax Earning* TSC 11.7% TBF 2.5% Others 1.1% TSC 14.5% TBF 8.5% Others 1.3% TSB 84.7% TSB 75.7% *Combined revenue and profit * Preliminary Figures 2004 (F) Revenue 2004 (F) Pretax Earnings TSC 13.3% TBF 2.8% Others 0.8% TSB 83.1% TSC 23.1% TBF 4.9% Others 1.2% TSB 70.8% * Combined figures of 5 subsidiaries 26

27 Financial Statements Taishin Bank Income Statement NT$mn * YoY Operating Income 22,238 26, % Net Interest Income 18,833 21, % Fee Income 1,729 2, % Investment Income % Net Trading Income (Loss) 545 1, % Others % Operating Expense 10,099 12, % Nonoperating Income (Loss) (106) 1,433 Pretax, Preprovision Profit (PPP) 12,033 15, % Loan Loss Provisions 7,208 7, % Net Profit before Income Tax 4,825 8, % Income Tax 748 1, % Net Profit after Income Tax 4,077 6, % EPS (NT$) % Balance Sheet NT$mn * YoY Total Assets 497, , % Liabilities 462, , % Shareholders' Equity 35,339 43, % Paidin Capital 27,000 28, % Common Shares 23,000 24, % Preferred Shares 4,000 4, % * Preliminary figures 27

28 Financial Statements Taiwan Securities Income Statement NT$mn * YoY Operating Income 3,568 4, % Net Brokerage Revenue 1,977 1, % Net Underwriting Revenue % Gain (Loss) on Trading 208 1, % Net Interest Income % Others % Operating Expense 2,906 3, % NonOperating Income (Loss) % Net Profit before Income Tax 723 1, % Income Tax % Net Profit after Income Tax 331 1, % EPS (NT$) % Balance Sheet NT$mn * YoY Total Assets 48,799 44, % Total Liabilities 35,061 27, % Shareholders' Equity 13,738 17, % Paidin Capital 11,235 13, % * Preliminary figures 28

29 Financial Statements Taishin Bills Income Statement NT$mn * YoY Operating Income 1,173 1, % Net Interest Income % Fee Income % Net Trading Income (Loss) % Operating Expense % Pretax, Preprovision Profit (PPP) 1, % Loan Loss Provisions % Net Profit before Income Tax % Income Tax % Net Profit after Income Tax % EPS (NT$) % Balance Sheet NT$mn * YoY Total Assets 14,187 19, % Liabilities 7,753 13, % Shareholders' Equity 6,434 6, % Paidin Capital 5,140 5, % * Preliminary figures 29

30 Net Interest Margin Improved Sharply 4.84% 5.17% 4.29%

31 Credit Card Remains Steady Growth In thousand Card in Force In NT$bn Revolving Balance ,119 3, , Market Share: 13% 31

32 Cash Card Up 109% Card Issued Revolving Balance NT$bn In thousand In NT$bn Market Share: 15% 2003 Market Share: 10% 32

33 Mortgage Rose 20% YoY NT$bn NonARMs 29% ARMs 71% (including 15% of offset mortgage loan) 1Q03 2Q03 3Q03 4Q03 33

34 2003 Credit Exposure by Industry as % of Total Credit % Manufacturing 38.9% Textile 3.0% Petrochemical 4.3% Metal & Machinery 3.3% High Tech 17.2% Others 11.1% Construction 10.6% Retail & Wholesale 11.8% Transportation & Telecom 4.6% FI & Securities 21.9% Others 12.1% Total 100% 34

35 TSC & TBF Financial Results Taiwan Securities EPS (NT$) ROE ROA Brokerage Market Share** (Ranking) Underwriting cases (Ranking) *Preliminary figure **Yearend market share % 0.71% 4.1% (6) 27 (3) 2003* % 2.78% 4.8% (4) 22 (2) Taishin Bills EPS (NT$) ROE ROA Market Share (Ranking) Trading Volume Underwriting *Preliminary figure **Till Nov of % 5.46% 7.0% (8) 5.2% (7) 2003* % 4.72% 6.0% (7)** 6.1% (5) 35