0428-§§�H���Ê≠^§�-fn-ol‧[����≠±(�oΩZ).pdf 1 2021/4/28 下午1:42 C M Y CM MY CY CMY K CTBC Bank Co., Ltd. S&P Global Ratings Address: No. 166, 168, 170, 186, 188, Jingmao 2nd Rd., Nangang Dist., Address: Unit 1, Level 69, International Commerce Centre, Taipei City 115, Taiwan (R.O.C.) 1 Austin Rd. West, Kowloon, Hong Kong Tel: +886-2-3327-7777 Tel: +852-2533-3500 Website: https://www.ctbcbank.com Website: https://www.standardandpoors.com Spokesperson Moody’s Investors Service Hong Kong Ltd. Name: Ya-Ling Chiu Address: 24F., One Pacific Place, 88 Queensway, Admiralty, Position: Executive vice president Hong Kong Tel: +886-2-3327-7777 Tel: +852-3758-1300 Email: [email protected] Website: https://www.moodys.com Acting spokesperson Overseas Exchange for Trading of Company Name: Roger Kao securities Position: Senior executive vice president (None) Tel: +886-2-3327-7777 Email: [email protected] For the contact information of our headquarters and various branches in Taiwan and overseas, please refer to page 46-52 Stock Transfer Agency Agency: Corporate Trust Operation and Service Department, CTBC Bank Co., Ltd. Address: 5F., No. 83, Sec. 1, Chongqing S. Rd., Zhongzheng Dist., Taipei City 100, Taiwan (R.O.C.) Tel: +886-2-6636-5566 Website: https://www.ctbcbank.com Certified Public Accountants Names: Lin Wu, Tim Tzang Business Office: KPMG Certified Public Accountants Address: 68F., No. 7, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.) Tel: +886-2-8101-6666 Website: http://www.kpmg.com.tw Credit Rating Institutions Taiwan Ratings Corp. Address: 2F., No. 167, Dunhua N. Rd., Songshan Dist., Taipei City 105, Taiwan (R.O.C.) Tel: +886-2-2175-6800 Website: https://www.taiwanratings.com 0503_中信銀行英文封面裡.indd 1 2021/5/3 上午10:19 Contents 1. Letter to shareholders ................................................................................................................. 2 2. Company profile 2.1 Company overview ................................................................................................................. 7 2.2 Our organization ................................................................................................................... 13 3. Business overview 3.1 Business performance ........................................................................................................... 26 3.2 Employees ............................................................................................................................ 31 3.3 Social responsibility ............................................................................................................. 31 4. Dividend policy and earnings distribution 4.1 Dividend policy and execution status ................................................................................... 40 4.2 Impact of proposed stock dividend on the Company’s business performance and EPS ...... 40 4.3 Information relating to the compensation of employees, directors, and supervisors ........... 41 5. Internal Control Statement ...................................................................................................... 43 6. Audit Committee Report on last year’s financial statement ................................................. 45 7. Head office and domestic branches ......................................................................................... 46 〈Appendix 1〉 Consolidated Financial Reports for 2020 〈Appendix 2〉 Annual Financial Reports for 2020 1 1. Letter to shareholders In product and service innovation, CTBC Bank in November 2020 launched Penny Piggy, the first investment product in the form of a subscription service. With each credit card payment the Dear fellow shareholders: customer makes, the service uses a patented smart investment technology to set aside a small amount of money for investing. Meanwhile, to further optimize the customer experience, CTBC Bank used the LINE Pay platform to embed personal loan services into the most common everyday Upended by Covid-19, the global economy experienced a severe recession in 2020. Governments use scenarios. The service allows loans to be disbursed in as little as three minutes of an application worldwide rapidly launched extensive monetary easing policies and financial stimulus measures in being filed, further putting into practice our “banking everywhere, not just at the bank” philosophy. response to the pandemic. CTBC Bank saw a decline in overall profit due to interest rate drops and In January 2021, CTBC Bank used blockchain to launch Taiwan’s first green power procurement pandemic-impacted overseas asset quality; nevertheless, backed by our appropriate operations in the platform, providing a one-stop shop for green power transaction services and enhancing the capital market and growth in wealth management and consumer finance, we maintained the best efficiency, transparency, and safety of green power transactions. This partnership is another operating performance in the industry. We also partnered with the government to provide various demonstration of CTBC Bank’s efforts to promote environmental and social sustainability in the relief loans to those affected by the pandemic, including by utilizing our digital capabilities to help financial industry, to realize its corporate social responsibility (CSR), and to keep pace with 280,000 workers apply for relief loans as well as to provide SME relief loans to soften the impact international sustainability developments. on these businesses. Regarding organizational changes, to enhance the strategic development of our overseas Looking ahead in 2021, the pandemic will continue to affect the global economy. As such, our Bank institutional finance business, we established an Overseas Branch Business Division under the has adopted various measures to stabilize our business operations, fulfill our social responsibility, International Business Group in January 2021 to integrate the business planning and execution of comply with government policies, and help our customers and employees overcome whatever overseas branches and offices with cross-border business development and management, which was challenges the future brings. previously managed by various regional business divisions under the International Business Group. Moreover, to improve the quality of credit investigations and accelerate the cultivation of talent, 2020 business plan and implementation results CTBC Bank established an Institutional Banking Credit Analysis Division in January 2021 to be In terms of its financial performance in 2020, CTBC Bank reported annual consolidated net revenue responsible for the business planning and execution of institutional finance credit investigation of NT$98.9 billion, consolidated pre-tax income of NT$32.3 billion, and consolidated after-tax business and relevant research, analysis, and recommendations, thereby improving credit risk income of NT$27.3 billion, with a consolidated after-tax ROE of 8.77%, which placed us in the management and effectively assisting institutional finance business operations. leading position in the industry. Due to the impact of the pandemic, we saw a 5% decline in consolidated net revenue and a 12% decline in consolidated after-tax income from the 2019 fiscal We also continued our efforts in digital innovation last year. The Data Intelligence R&D Division, year, achieving 83% of the consolidated after-tax net profit estimated in our target budget released Global Information Service Division, and Digital Finance Division jointly formed the Financial the previous year. Technology Development Center in January 2020, in which the Data Intelligence R&D Division was simultaneously designated to manage data governance, AI technology, and the development of In major business developments, CTBC Bank, as the leader in Taiwan’s mobile payment market and data operation strategy. In the future, this integrated fintech team will develop and promote fintech believing that finance will grow even more deeply integrated into daily life, collaborated with strategy and operations through agile development, helping to promote innovative services and instant messaging service LINE to issue the CTBC LINE Pay card. As of the end of 2020, we had implement our Bank’s digital transformation. issued 3.75 million CTBC LINE Pay cards, making it the most widely issued card ever in Taiwan. In addition, as mentioned, we utilized digital innovation and a rapid response approach to process CTBC Bank received substantial acclaim in 2020 from domestic and international institutions. It approximately 280,000 worker relief loan applications in just six weeks, accounting for a quarter of was ranked 155th among the global top 1,000 banks by The Banker, taking first place in Taiwan for the applications processed by all banks nationwide. In using our leading digital abilities to actively the fourth consecutive year. The Bank was the only financial institution in Taiwan to be named support this government relief loan program, we also advanced toward our goal of increasing among the Top 20 Asia-Pacific Banks and to receive a Best Bank in Taiwan award from IDC. It financial inclusion. was also selected as the Best Bank in Taiwan by Euromoney, Asiamoney, FinanceAsia, and The 2 1. Letter to shareholders In product and service innovation, CTBC Bank in November 2020 launched Penny Piggy, the first investment product in the form of a subscription service. With each credit card payment the Dear fellow shareholders: customer makes, the service uses a patented