2017新光年報英文版 Pk8nantlnnyg.Pdf
Total Page:16
File Type:pdf, Size:1020Kb
Words from the Chairman p.02 Honors and CONTENTS Achievements p.06 SKFH Overview p.08 Business Plan p.18 Corporate Social Responsibility p.34 Financial Highlights p.44 2017 ANNUAL REPORT/Words from the Chairman 02 03 dimensions to further strengthen performance, increase mance indicators (KPIs) of subsidiaries will be includ- brand recognition, and maximize benefits to sharehold- ed in the company's corporate governance index and ers: corporate governance will be given a higher weight- ing in KPIs. Information security, anti-money (1) Stabilize profits and strengthen risk control: SKL laundering, consumer protection, and regulatory accounts for three-fourths of the total assets of SKFH. compliance will also be listed as key items to Consequently, stabilizing the company's profits is the enhance customer service quality and strengthen top primary. In ongoing adjustments to its business corporate governance. structure, SKL is increasing the proportion of foreign currency policies and protection products to (5) Expand abroad: SKFH will scale up overseas earnings Words from the Chairman optimize liability structure, enhancing the competi- and operations with strict compliance to related laws tiveness of business units, and actively developing and regulations. The company will grow the scale internal and third-party channels. The company will and profit ratios of overseas banking units (OBUs) Impact of the Overall Economic Picture, also strengthen sales of foreign currency policies to and offshore insurance units (OIUs), as well as External Competition, and Regulatory Environment reduce foreign exchange hedging costs and increase enhance the functions of overseas offices and its investment return. At SKB, new profit sources will strengthen strategic alliances with overseas institu- In 2017, the global economy steadily recovered as international trade expanded, US interest rates trended up, and equity gained 23.1% to NT$90.8 billion. be developed, with an emphasis on expanding scale, tions. the stock market reached a series of new highs. Taiwan's economy also gained on record high export orders, while the Overall first year premium (FYP) reached including on growth in overseas earnings, wealth TAIEX crossed the 10,000 mark, driving development in the financial sector. The stronger New Taiwan dollar (NTD) and NT$110.96 billion, with foreign currency management and fee income. Moreover, SKFH and Future Development Strategy regulatory tightening affected business costs, but were net positives overall for profitability in the financial sector. policies accounting for 46.9%, up 118.9% its main subsidiaries undergo monthly stress tests year over year (YoY), reducing the and prepare response measures to strengthen risk SKFH's future development strategy will adhere to Looking ahead to 2018, the International Monetary Fund (IMF) expects the global economy to improve slightly over company's foreign exchange hedging asset quality to continue the steady upward trend in its subsidiaries and required subsidiaries to prepare management. the following principles and operational focuses: costs. SKL also added five state-owned BIS capital adequacy ratio. response plans to promptly control risk. 2017 on sustained growth in the US, Europe, China, Japan and other major economies. In Taiwan, the Directorate △ General of Budget, Accounting and Statistics forecasts further gains in exports and domestic fixed investment. US banks to its channel network, boosting (2) Integrate resources: SKFH will identify and develop Adjust structure to stabilize profitability FYP by 198.3% YoY to cross the NT$10 △ interest rates are anticipated to slowly rise, widening the spread with interest rates in Taiwan and further supporting Other SKFH subsidiaries also achieved steady SKFH and its subsidiaries also earned external financial products needed by customer and deeply Integrate resources to deepen synergies growth in the financial industry. At the same time, the impact of higher income tax on business profits, inflating finan- billion mark. New policy sales and growth: Shin Kong Investment Trust (SKIT) grew plaudits and awards in 2017. The company earned develop cross-selling and precision marketing. △ Prioritize e-operations and pioneer mobile cial asset prices, and potential uncertainties in the political and economic arenas (such as a trade war) could lead to a stacked renewal premium effectively management fee income by 8.1% YoY, Shin Kong CommonWealth magazine's Corporate Social Responsi- Efforts will also be made to expand and deepen services Minsky moment, black swan, or gray rhino incident. reduced cost of liabilities by 14 bps Property Insurance Agency (SKPIA) increased net bility Award in recognition of its long-term dedication to business cooperation among subsidiaries. △ (0.14%). income by 5.5%, and Shin Kong Venture Capital (SKVC) corporate social responsibility (CSR) and sustainability. Create profit sources and expand markets boosted net income by 110.5%, erasing accumulated SKL's achievements in social responsibility, personnel (3) Develop digital banking: SKFH will respond to △ Business Results in 2017 Enhance funds utilization with attention to Shin Kong Bank (SKB), one of SKFH's losses ahead of plan. training, product, service innovation, and information disruptive innovation and changing modes of finan- compliance and risk control dual profit engines, posted a consolidat- security were recognized by more than 20 top awards, cial consumption in the digital era through the "Shin Shin Kong Financial Holding (SKFH) posted a strong performance in 2017 thanks to the collective efforts of its direc- △ tors and employees. The company and its subsidiaries significantly exceeded annual profit targets. SKFH's consolidated ed after-tax profit of NT$4.06 billion in Enhancing resource integration across subsidiaries including the Taiwan Corporate Sustainability Award Kong: Pioneering a Digital Mobile Future" strategy. Fulfill corporate responsibility and implement after-tax profit rose by 120.0% from the previous year to NT$11.22 billion. Consolidated total comprehensive income 2017. Over the year, the bank grew its to build synergy has been a focal task for SKFH. In 2017, (TCSA) in the Overall Performance Category, Top 10 corporate governance gained 58.1% to NT$20.51 billion, consolidated total assets rose 7.2% to NT$3.4 trillion, shareholders' equity increased loan portfolio by 5.2% while paying the company launched several integration mechanisms. Outstanding Corporation in the Golden Peak Award, 1. Automating workflow to boost service efficiency: by 16.4% to NT$141.31 billion, and book value per share reached NT$13.87, the highest level since the end of 2008. As attention to both income and risk The SKFH Investment Information Platform (House View) Taiwan Insurance Excellence Award Gold Award, Insur- SKFH will optimize service flow with big data and these figures show, SKFH is steadily moving forward and reaping preliminary results. management, and scaled up its interna- integrates subsidiaries' strengths in information and ance Faith, Hope, and Love Award, and Smart Monthly's artificial intelligence (AI) applications, including tional syndicated loan portfolio by analysis to give investment departments an accurate big Smart Recommended Outstanding Policy. SKB was risk prediction models and smart robots. The SKFH's improved performance also earned high marks from market investors. The company's market value rose by 92.4%. Customer segmentation and picture view of the economy and market trends, awarded the Best Service Innovation Award for company will also continue to develop and NT$26.7 billion from NT$80.8 billion at the end of 2016 to NT$107.5 billion at the end of 2017. In the same period, the preferential lending were focal areas. improve the quality and effectiveness of investment Electronic Cashflow and the Best Financial Services promote new payment tools. ratio of foreign holdings grew from 17.8% to 26.8%. The bank also increased earnings from decisions by subsidiaries, and introduce financial Award in Excellence Magazine's Best Bank Survey, fund utilization and boosted net interest products to meet market demand in a timely manner. affirming the bank's ongoing progress in providing a 2. Attracting and retaining clients with an innova- SKFH's core subsidiary Shin Kong Life Insurance (SKL) significantly improved operations as investment income grew income by 4.7%. The bank's net interest SKFH also continued developing its customer relation- spectrum of convenient digital financial services. tive service experience: SKFH will introduce LIFE and cost of liabilities fell. In 2017, the company's consolidated after-tax profit surged by NT$6.83 billion to NT$6.97 spread was 1.96%, beating the industry ship management (CRM) system to deepen integrated Lab and other new types of channels; use AI and billion, consolidated total comprehensive income rose 79.4% to NT$16.77 billion, and consolidated shareholders’ average. SKB also skillfully managed and precision marketing to clients across subsidiaries. Overview of 2018 Business Plan big data to mine customer needs and increase Apart from intensifying product cross-selling, SKFH repurchase rates; apply Fintech to optimize expanded mechanisms for business cooperation across Effective management of group subsidiaries is the customer experience and improve transaction subsidiaries. Such efforts have reaped strong results, core guiding value of SKFH's development strategy and security; and expand click-and-mortar