Taipei Fubon Commercial Bank Co., 2017/06/16 3 Yrs Financial Ltd

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Taipei Fubon Commercial Bank Co., 2017/06/16 3 Yrs Financial Ltd Stock Symbol: 5836 Printed on January 31, 2020 http://mops.twse.com.tw http://www.fubon.com/banking 2019 1. Spokesperson Name:Roman Cheng Title :President Tel :(886)2-2771-6699#66233 E-mail:[email protected] Acting Spokesperson Name:Mike Liu Title :Executive Vice President Tel :(886)2-2771-6699#66023 E-mail:[email protected] 2. Contact Information –Headquarters and Branches Please see page 25-33 3. Stock Registration Agent Name:Fubon Securities Co., Ltd. Address:2F, No.17, Hsuchang St.,Taipei, Taiwan, R.O.C. Website:www.fubon.com/securities Tel:(886)2-2361-1300 4. Credit Rating Institution Name Address Tel Taiwan Ratings Corporation 49F. Taipei 101 Tower, No.7, Sec. 5, (886)-2-8722 5800 Xinyi Rd., Taipei city 110, Taiwan (R.O.C.) Moody’s Investors Service 24/F, One Pacific Place 88 Queensway (852)-3758-1300 Admiralty, Hong Kong Standard & Poor’s Ratings 49F. Taipei 101 Tower, No.7, Sec. 5, (886)-2-8722 5800 Service Xinyi Rd., Taipei city 110, Taiwan (R.O.C.) 5. Certified Public Accountants for Fiscal Year 2018 CPAs:Jessie Wu , Casey K.C.Lai Company:Deloitte & Touche Address:20F, Taipei Nan Shan Plaza, No. 100, Songren Rd., Xinyi Dist., Taipei 11073, Taiwan (R.O.C.) Website:www.deloitte.com.tw Tel:(886)2-2725-9988 6. Exchange Houses where Overseas Securities are Listed:None 7. Website:www.fubon.com/banking CONTENTS I. Message to Shareholders 1 II. Corporate Profile 5 1. Introduction 5 2. Organizational Structure 7 III. Business Operations 11 1. Business Information 11 2. Business Strategies and Business Plans 13 3. Research & Development Plans 17 4. Employees Profile 19 IV. Special Notes 20 1. Dividend Policy and Implementation Status 20 2.Implementation of the Internal Controls System 21 V. Headquarters and Branches 25 Appendix : Annual Financial Reports for 34 2019 and 2018 I. Message to Shareholders 2019 was a challenging year in terms of global economics. From the China-USA trade conflict to the UK's Brexit and protests in Hong Kong, the financial market had been under the influence of one major crisis after another. Taiwan was one of the few that benefited from the crises, as a shift in production orders combined with back flow of Taiwanese investors stimulated capital expenditure and growth of domestic demands. According to the Directorate-General of Budget, Accounting and Statistics, economic growth for 2019 was better than expected at 2.73%, increasing 0.10% from 2018. The financial industry as a whole generated NT$634.1 billion of pre-tax income, of which the banking industry delivered record-high NT$400 billion in pre-tax income. Taipei Fubon Bank has long adhered to the goal of maintaining consistent growth under controlled risk, and managed to accomplish great business success by focusing on five strategic goals: "lifestyle finance, precision investment, Greater China, technology and brand value" in 2019. The Bank reported 12.19% higher consolidated revenues of NT$51.4 billion for the year; net interest income and net fee income increased 9.27% and 13.90%, respectively, to deliver record-high consolidated net income of NT$20.6 billion, representing a 9.62% growth. Consolidated total assets amounted to NT$3,298 billion at the end of the year, whereas net loan balance was reported at NT$1,491.8 billion and total deposit balance at NT$2,304.2 billion. Below are the outcomes of operational strategies implemented in 2019: (I) Enhanced customer relations and demand-driven Taipei Fubon Bank adheres to a "customer-centric" philosophy and explores innovation and service improvement with a focus on customers' needs, for which it has earned the strong support and trust of its customers. In wholesale banking, the Bank achieved rapid growth in terms of SME credit and foreign currency assets, and saw rising market share in offshore corporate lending/deposit service, ranking 2nd among private banks. Meanwhile, the Bank maintained leading position in syndicated lending, and ranked 2nd among private banks in market share. As for consumer banking, the Bank's ongoing efforts in branch transformation, customer relationship management and localization have enabled product and service innovations that are ultimately reflected in terms of growing deposit, investment, insurance and loan amidst the challenging market. Overall, the Bank delivered more favorable performance compared to the previous year, and ranked 2nd in mortgage balance, 3rd in total insurance sales, and 2nd in regular insurance sales among private banks. (II) Digital transformation and innovation - 1 - The Bank has been introducing new banking models for broader scenarios by incorporating new technologies and innovations with its banking profession as a response to the rapidly changing financial environment. In addition to launching the Omiyage Card for outgoing tourists, Taipei Fubon Bank also cooperated with group affiliates to introduce” momo” co-branded card that increased total outstanding cards to 2.99 million, making it one of the top-5 card issuers in Taiwan. The Bank has been cooperating with Nutmeg, the UK's largest smart investment platform, to operate its own AI-powered investment platform called "Nano Investment." By the end of December, more than NT$1.4 billion of assets were managed under "Nano Investment," making it the largest smart investment platform in Taiwan. For consumer banking, the Bank developed a cloud-based decision-making system aimed at introducing a new customer-centric banking model and delivering service experience that more appropriately meets the needs of the new consumer generation. With regards to new payment and blockchain application, the Bank was the first bank in Taiwan to apply blockchain technology in a sandbox experiment of interbank transfer. This technology even has the potential to be applied in scenarios such as cross-border remittance and supply chain financing in the future. Taipei Fubon Bank has envisioned itself as the pioneer of banking reform and transformation, and takes progressive steps toward accomplishing its vision of "Banking in all aspects of life." Having recently been approved for the co-founding of an online-only bank called "LINE Bank," Taipei Fubon Bank will continue building an ecosystem of strategic partners and exert leadership in digital technology to realize the full potentials of the online-only bank. (III) Overseas expansion and exposure to Taiwanese enterprises Fubon Bank (China) was acquired as a subsidiary bank in 2014, it has set up 27 offices (with one under approval) at locations where Taiwanese enterprises cluster, making it the most wide-spread and the only fully licensed Taiwanese bank in the Mainland. Through this subsidiary, the Bank hopes to introduce "refined banking services" that Taiwan is well-known for and expand alliance with partners from different industries to bring distinctive features into each branch. Targeting Taiwanese enterprises, these offices will bridge capital flow within the Greater China Region and promote further cross-strait economic and financial collaboration. Taipei Fubon Bank cooperates in comprehensive exchanges and cooperation to expand the service scope and fully utilize the competitive edge in the provision of cross-border services. The Bank provides versatile and top-quality financial services and products in an effort to establish a cross-strait financial ecosphere for Taiwanese businesses. In addition to the five overseas branches located in Hong Kong, Vietnam and Singapore, a new Indonesian representative office was set up in 2019 to help Taiwanese enterprises expand into Southeast Asian markets. Together, these offices open the Bank to international banking opportunities, local businesses, multinational customers and prospects of creating a collaborative overseas platform and becoming Asia's No. 1 Financial Institution. In addition to committing to the 361-degree service spirit, the Bank is also dedicated to fulfilling its sustainability vision through constant expansion of financial service capacity. In terms of product innovation - 2 - and financial technology, the Bank has been recognized by domestic and foreign institutions and media including The Asset, Global Finance, Commercial Times and Business Today in numerous awards such as "i-service survey- Bank Category-Gold Award," "Bank of the Year Awards - Taiwan Award," "Best Investment Bank," "Best Private Bank," "Best Wealth Management Service - Gold," "Best Bank for Fintech Innovation," "Best Payment Bank" and "Best Credit Card - Taiwan." With respect to risk management, the Bank maintains rigorous monitoring and control over asset quality and capital adequacy, and managed to keep asset quality strong with an NPL ratio of 0.19% and NPL coverage ratio of 713.11%, and sound capital adequacy ratio (CAR) at 13.35%. Credit rating agencies local and abroad have all awarded the Bank with favorable ratings and stable outlook for its diverse business activities, adequate risk management, reliable source of capital and strong liquidity. Rated company Long-term Short-term Outlook Date of rating rating rating Taiwan Ratings Corp. twAA+ twA-1+ Stable December 6, 2019 Standard and Poor’s A- A-2 Stable December 6, Corporation 2019 Moody’s Investors Service A2 P-1 Stable July 30, 2019 2020 Business plans The global economy should continue to exhibit challenges and high degree of uncertainty throughout 2020. In light of increasing volatility and ongoing reform of the supervisory framework, it is critical for businesses to adopt new technology as means to expand and explore broader profit opportunities. In 2020, Taipei Fubon Bank will be enhancing "cooperation in Greater China, product and portfolio development, group synergy, customer relationship, and overseas expansion" as the key strategies for maintaining earnings growth. (I) Broadened collaboration in the Greater China Region The Bank will continue providing Fubon Bank (China) with total support and expand collaboration on all aspects in order to finance customers' global investments and overseas expansion, and capitalize on emerging trends such as back flow of Taiwanese enterprises and supply chain shift into Southeast Asia.
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