Taishin Financial Holding Company

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

Agenda Section 1 2003 Performance Review (preliminary) Section 2 2004 Earnings Outlook Section 3 Business Strategy Section 4 Appendix 2

Section 1 2003 Performance Review (preliminary)

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 7,584 104.9% 2.15 2.25 14.6 1.23 129.10 Taishin Bank 5,476 6,362 116.2% 2.09 2.55 17.62 1.14 10.28 Taiwan Securities 1,423 1,303 91.6% 1.22 1.14 8.32 2.78 368.25 Taishin Bills 638 799 125.2% 1.24 1.56 12.19 4.72 18.86 * Preliminary figures 4

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

Taishin Bank 2003 Financial Results 2002 2003 YoY Loan (NT$bn) 338 397 17.5% Corporate loan as % of total loan 39% 33% Consumer loan as % of total loan 61% 67% Deposit (NT$bn) 385 434 12.7% 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. 2003 average loan to deposit ratio was 87%. 6

Asset Quality Further Improved NPL Amount (NT$mn) NPL Ratio (%) Coverage Ratio Writeoff (NT$mn) Provision (NT$mn) Broadbased NPL Ratio (%) Broadbased Coverage Ratio (%) 2002 8,439 2.45% 49% 20,903 6,255 3.03% 39% 2003 6,395 1.59% 48% 9,089 7,177 1.78% 43% 7

Highmargin Products Lead Loan Growth 2002 2003 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

15000 10000 5000 0 0.3 0 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 6,733 17.4% 8.4% 12.2% 03 Total Fee growth: 59% Others 03YoY: 42% Bancassurance 03YoY: 57% 17.6% 4,000 19.5% 12.4% Loan Services 03YoY: 88% 10.0% 11.8% 3,000 2,000 1,000 8.6% 2,551 10.4% 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% 2001 2002 2003 0 2001 2002 2003 9

Section 2 2004 Earnings Outlook

Financial Target FHC 2003 2004 (F) YoY Aftertax Earnings (NT$mn) 7,584 10,051 33% EPS (NT$) 2.25 2.88* 28% ROE (%) 14.60 16.16 ROA (%) 1.23 1.36 CAR (%) 129 138 Double Leverage Ratio (%) 110 98 Double Leverage Ratio (%)** 118 104 Book Value per Share (NT$) 15.87 17.51 10% P/BV (x)*** 1.70 1.54 P/E (x)*** 12.0 9.3 *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$26.9 11

Financial Targets Subsidiaries Taishin Bank 2003 2004 (F) YoY Pretax Earnings (NT$mn) 8,008 10,721 34% Aftertax Earnings (NT$mn) 6,362 8,290 30% EPS (NT$) 2.55 3.29 29% ROE 17.62% 20.28% ROA 1.14% 1.32% Taiwan Securities 2003 2004 (F) YoY Pretax Earnings (NT$mn) 1,528 3,274 114% Aftertax Earnings (NT$mn) 1,303 2,293 76% EPS (NT$) 1.14 1.80 58% ROE 8.32% 11.87% ROA 2.78% 5.30% Taishin Bills 2003 2004 (F) YoY Pretax Earnings (NT$mn) 902 701 22% Aftertax Earnings (NT$mn) 799 596 25% EPS (NT$) 1.56 1.16 26% ROE 12.19% 8.95% ROA *Based on financing method 4.72% 0.94%* 12

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

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) 360,700 278,000 77% 300,000 8% Credit Card (Number of cards) 62,300 149,628 140% 160,000 7% Fee Income from TMU NT$360mn NT$836mn 232% NT$1.56bn 87% Note: accumulated figures 14

Taishin Bank Other Key Targets 2003 2004 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

Total Loan to Grow 21% YoY 2003 2004 (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

Section 3 Business Strategy

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

etail Banking Revenue Breakdown 2003 2004 (F) Loan Spread 82% Fee Income 17% Loan Spread 84% Fee Income 15% Others 1% Others 1% 19

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

ealth Management Revenue Breakdown 2003 2004 (F) Fee Income 76% Fee Income 76% Loan Spread 14% Trading 6% Others 4% Loan Spread 9% Trading 7% Others 8% 21

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

holesale Banking Revenue Breakdown 2003 2004 (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

holesale Banking Key Indicator ECB (US$mn) Bond Underwriting (NT$bn) Syndication (NT$bn) Factoring (NT$bn) IPO/SPO Derivative 2003 120 17 3 85 Top 3 Top 5 2004 (F) 400 35 20 160 Top 3 Top 3 24

Section 4 Appendix

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

Financial Statements Taishin Bank Income Statement NT$mn 2002 2003* YoY Operating Income 22,238 26,690 20.0% Net Interest Income 18,833 21,745 15.5% Fee Income 1,729 2,693 55.8% Investment Income 551 296 46.3% Net Trading Income (Loss) 545 1,583 190.5% Others 580 373 35.7% Operating Expense 10,099 12,934 28.1% Nonoperating Income (Loss) (106) 1,433 Pretax, Preprovision Profit (PPP) 12,033 15,189 26.2% Loan Loss Provisions 7,208 7,182 0.4% Net Profit before Income Tax 4,825 8,007 66.0% Income Tax 748 1,645 119.9% Net Profit after Income Tax 4,077 6,362 56.1% EPS (NT$) 1.67 2.55 52.7% Balance Sheet NT$mn 2002 2003* YoY Total Assets 497,702 614,319 23.4% Liabilities 462,363 570,528 23.4% Shareholders' Equity 35,339 43,791 23.9% Paidin Capital 27,000 28,468 5.4% Common Shares 23,000 24,468 6.4% Preferred Shares 4,000 4,000 0.0% * Preliminary figures 27

Financial Statements Taiwan Securities Income Statement NT$mn 2002 2003* YoY Operating Income 3,568 4,748 33.1% Net Brokerage Revenue 1,977 1,909 3.4% Net Underwriting Revenue 160 147 8.1% Gain (Loss) on Trading 208 1,184 469.2% Net Interest Income 948 985 3.9% Others 275 523 90.2% Operating Expense 2,906 3,405 17.2% NonOperating Income (Loss) 61 186 204.9% Net Profit before Income Tax 723 1,528 111.4% Income Tax 392 268 31.6% Net Profit after Income Tax 331 1,302 293.5% EPS (NT$) 0.32 1.14 256.3% Balance Sheet NT$mn 2002 2003* YoY Total Assets 48,799 44,824 8.1% Total Liabilities 35,061 27,243 22.3% Shareholders' Equity 13,738 17,581 28.0% Paidin Capital 11,235 13,000 15.7% * Preliminary figures 28

Financial Statements Taishin Bills Income Statement NT$mn 2002 2003* YoY Operating Income 1,173 1,126 4.0% Net Interest Income 123 116 5.7% Fee Income 169 176 4.1% Net Trading Income (Loss) 881 834 5.3% Operating Expense 158 170 7.6% Pretax, Preprovision Profit (PPP) 1,015 956 5.8% Loan Loss Provisions 144 54 62.5% Net Profit before Income Tax 871 902 3.6% Income Tax 94 103 9.6% Net Profit after Income Tax 777 799 2.8% EPS (NT$) 1.51 1.56 3.3% Balance Sheet NT$mn 2002 2003* YoY Total Assets 14,187 19,802 39.6% Liabilities 7,753 13,019 67.9% Shareholders' Equity 6,434 6,783 5.4% Paidin Capital 5,140 5,140 0.0% * Preliminary figures 29

Net Interest Margin Improved Sharply 4.84% 5.17% 4.29% 2001 2002 2003 30

Credit Card Remains Steady Growth In thousand Card in Force In NT$bn Revolving Balance 51.5 4,119 3,369 39.4 2,370 22.5 2001 2002 2003 2001 2002 2003 2003 Market Share: 13% 31

Cash Card Up 109% Card Issued Revolving Balance NT$bn In thousand In NT$bn 692 22.1 373 10.6 70 2.4 2001 2002 2003 2001 2002 2003 2003 Market Share: 15% 2003 Market Share: 10% 32

Mortgage Rose 20% YoY NT$bn NonARMs 29% 138 113 118 130 ARMs 71% (including 15% of offset mortgage loan) 1Q03 2Q03 3Q03 4Q03 33

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

TSC & TBF Financial Results Taiwan Securities EPS (NT$) ROE ROA Brokerage Market Share** (Ranking) Underwriting cases (Ranking) *Preliminary figure **Yearend market share 2002 0.32 2.44% 0.71% 4.1% (6) 27 (3) 2003* 1.14 8.32% 2.78% 4.8% (4) 22 (2) Taishin Bills EPS (NT$) ROE ROA Market Share (Ranking) Trading Volume Underwriting *Preliminary figure **Till Nov of 2003 2002 1.51 12.80% 5.46% 7.0% (8) 5.2% (7) 2003* 1.56 12.19% 4.72% 6.0% (7)** 6.1% (5) 35