Stock No: 5854 Stock SINCE 1946 BANK TAIWAN TAIWAN COOPERATIVE COOPERATIVE

77, KUANCHIEN ROAD, TAIPEI 77, KUANCHIEN ROAD, REPUBLIC OF CHINA TAIWAN, TEL: +886-2-2311-8811 +886-2-2375-2954 FAX: http://www.tcb-bank.com.tw BANK TAIWAN COOPERATIVE Spokesperson:

Tien Lin / Kuan-Young Huang Executive Vice President / Senior Vice President & General Manager TEL : +886-2-23118811 Ext.210 / +886-2-23118811 Ext.216 E-mail: [email protected] / [email protected] CONTENTS

02 Message to Our Shareholders

06 Financial Highlights

09 Organization Chart

10 Board of Directors & Supervisors & Executive Officers

12 Bank Profile

14 Main Business Plans for 2008

16 Market Analysis

20 Risk Management

25 Statement of Internal Control

28 Supervisors’ Report

29 Independent Auditors’ Report

31 Financial Statement

37 Designated Foreign Exchange Banks

41 Service Network Message to Our Shareholders

Message to Our Shareholders

Global financial markets were characterized by relative instability in 2007 because of the impact of the continuing high level of oil prices and the subprime crisis in the United States. Figures released by Global Insight Inc. indicate that global economic performance nevertheless remained stable during the year, with the rate of economic growth reaching 3.8%--only marginally lower than the 3.9% recorded in 2006. Following its outbreak last August, the negative influence of the subprime housing loan crisis in the U.S. spread rapidly throughout the world and, despite the threat of inflation, the U.S. Federal Reserve lowered interest rates three times before the end of 2007, bringing the federal funds rate down from 5.25% to 4.25%, in an attempt to avoid a slowdown in economic growth and alleviate the credit crunch. The European Central Bank, the United Kingdom, Switzerland, Canada, and other countries also announced large infusions of capital and reductions of market interest rates to relieve the credit crisis. The sale by American financial institutions of subprime loans all over the world in the form of securitized products brought huge loses to investment institutions and the public in many countries, and the impact of the subprime issue is expected to continue in 2008. The ceaseless rise in international oil and raw materials prices may lead to a situation of slow growth and high prices—or so-called stagflation—which will increase the difficulty of monetary policy-making by central banks everywhere.

Taiwan benefited from the stable growth of the global economy in 2007. According to figures compiled by the Directorate General of Budget, Accounting and Statistics, the island’s rate of economic growth increased to 5.7% last year, up from 4.89% in 2006. Taiwan’s import and export volumes both topped US$200 billion in 2007, for the second year in a row, reaching record highs of US$219.3 billion and US$246.7 billion, respectively. The trade surplus for the year was US$27.4 billion, up 28.4% over the 2006 figure. Beginning in June the island’s economic indicator light was mostly green, signifying stability, turning to yellow-red in September and October. With the exception of July and August, which were affected by seasonal factors, the unemployment rate stayed below 4% throughout the year. The consumer price index (CPI) was affected by rising vegetable, fruit, and international raw materials prices; it soared to 1.8% for the year, a major increase over the 0.6% recorded in 2006. The wholesale price index (WPI) was boosted by the continuing high prices of crude oil, metals, and bulk grains in the international market, and reached a three-year high of 6.45%. Whether the rise in the CPI will affect consumer confidence and

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willingness to invest is an issue that bears watching.

The Standard Chartered Bank raised the curtain on the acquisition of Taiwan banks by foreign investors by acquiring the Hsinchu International Bank in September 2006, and Citibank, ABN AMRO, and HSBC followed up by acquiring domestic banks in 2007. These acquisitions boosted the number of the Taiwan branches of the four foreign banks to 230, up from the original 27; this will increase the impact on, and challenge to, Taiwan’s domestic banks. The increased competitive impact will be felt especially severely in the wealth management business, which Taiwan banks see as a key area of development, and in the small and medium business market, in which local operators are seen as having the advantage.

As the cash- and credit-card turbulence gradually subsides in Taiwan, the island’s banks are giving increased emphasis to the control of risk. The non-performing-loan (NPL) ratio of domestic banks remained at a low level in 2007, falling to 1.84% at the end of December. Affected by such factors as intense competition in the market and weak demand for capital, the spread between loan and deposit interest rates among domestic banks shrank to a historic low of 1.68% in the second quarter of the year. Then, thanks to repeated interest-rate hikes by the Central Bank and the implementation of a loan-pricing examination policy by the Financial Supervisory Commission, loan pricing developed in a more rational direction and the spread recovered to 1.74% in the fourth quarter. In addition, with all the banks devoting full efforts to the wealth-management business, the amount of funds under management reached NT$8.6 trillion at the end of November. This development helped to boost their profitability.

In general, Taiwan’s domestic banks experienced a great improvement in return on assets (ROA) and return on equity (ROE) in 2007. The Taiwan Cooperative Bank, thanks to the use of its branch network and its advantage as a local operator, again created brilliant operating results for the year. Our pre-tax profit exceeded the NT$10.39 billion recorded in 2006 to reach NT$11.94 billion, giving us better profitability than major domestic financial holding companies. In 2008 Taiwan’s economy will be affected by the slowdown in global economic growth, which will be unfavorable to export performance, and will have to rely on warming domestic demand to support growth. Wealth management and loans to small and medium enterprises will remain the Bank’s core businesses. We will also follow the development of the offshore operations of Taiwanese companies by strengthening the deployment of our overseas business locations and expanding business opportunities as important strategies for boosting profit. In addition, we must pay close attention to the impact of the American subprime housing loan crisis, the implementation of the Consumer Insolvency Act, and trends in the domestic real estate market, and respond appropriately.

Major Achievements in 2007

✿ Expansion of number of branches to 301; the TCB has the biggest branch network in Taiwan, and the second-largest share of the deposit market. ✿ Establishment of centralized operations center.

 Message to Our Shareholders

✿ Inauguration of telemarketing for insurance. ✿ Institution of the Huo Jin Gu guaranteed financing program. ✿ Excellent performance in coordinating with the Financial Supervisory Commission’s expansion of loans to small and medium enterprises; the TCB was chosen as a Grade-A bank in handling SME loans. ✿ Inauguration of “Ministry of The Interior 2007 Home Purchase (Improvement) Loans.” ✿ Issuance of NT$18.81 billion worth of cumulative subordinated debt without a maturity date and NT$1.36 billion worth of long-term subordinated bonds to heighten the Bank’s capital adequacy ratio. ✿ Inauguration of the commodity option. ✿ Inauguration of apartment building community fund trust products. ✿ Planning for the “Residential Mortgage Backed Securitisation” business. ✿ Establishment of the Online Financial Management Platform business and development of a marketing channel for online financial management customers. ✿ Opening of the Hong Kong Branch and submission of applications for branches in Ho Chi Minh City and Sydney. ✿ Installation of the IC debit card function, allowing customers to pay by card at online and physical stores bearing the “Smart Pay” logo. ✿ Introduction of the eATM service for nation-wide online payment of school, public utility, medical, insurance, and community management fees. ✿ Addition of the VISA/PLUS international cash-withdrawal function, enabling holders of Visa cards issued by the Bank to apply for the overseas withdrawal of local currencies at ATMs bearing the PLUS logo. ✿ Institution of the professional manager system at the headquarters securities company in Taipei as well as at the Keelung, Taichung, Tainan, Dong Taoyuan, and Lugang subsidiaries. ✿ Issuance of the Infinity wealth management card and Platinum home-loan card to attract outstanding clients and consolidate the Bank’s customer base. ✿ Inauguration of the IC debit-card invoicing business.

Operating Performance

✿ Net interest income: NT$24,349,684,000. ✿ Net non-interest income: NT$10,214,607,000. ✿ Bad-debt expenses: NT$4,678,962,000. ✿ Operating expenses: NT$17,943,915,000. ✿ Income before income tax: NT$11,941,414,000. ✿ Income after income tax: NT$9,740,373,000. ✿ Net income: NT$9,740,373,000. ✿ Earnings per share: NT$2.04.

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Operating Strategies for 2008

✿ Expansion of demand deposits and heightening of the demand- deposit ratio so as to enhance operating performance and lower capital costs. ✿ Continued development of the lending business, strengthening of post-loan management and marketing promotion, and cultivation of target customer groups so as to expand sources of profit. ✿ Expansion of the wealth-management business and improvement of asset management for clients so as to increase fee income bank-wide. ✿ Vigorous development of new types of business, provision of a diversified range of quality financial services, and efficient capital allocation so as to enhance capital utilization performance. ✿ Enhancement of risk control performance, strengthening of safety management bank-wide, and establishment of a superior working environment. ✿ Thorough implementation of budget targets, full expression of the budget management function, strengthening of the profit-and-loss analysis function, and implementation of a cost-sharing system so as to upgrade the Bank’s profitability.

Business Targets for 2008

✿ Deposits: NT$1,881.3 billion (not including interbank deposits) ✿ Loans: NT$1,793.8 billion (NT$1,091.7 billion in corporate loans and NT$702.1 billion in personal loans) ✿ Guarantees: NT$54.35 billion ✿ Foreign Exchange Transactions: US$68.5 billion ✿ Investments: NT$226 billion ✿ Trust Business: NT$168.99 billion, with custodial banking accounting for NT$80 billion ✿ Commission income from wealth management trust products: NT$1.223 billion, with insurance fee income amounting to NT$163 million ✿ Securities Brokerage: NT$260 billion ✿ Credit Card Business: NT$17.6 billion in card transactions ✿ E-banking: NT$150 billion in online banking transactions, with NT$37 billion in credit card settlement transactions

 Financial Highlights

Financial Highlights

Condensed Balance Sheet Unit: Thousands of New Taiwan Dollars

2007 2006 2005 2004 2003

CASH ,CASH EQUIVALENTS AND DUE FROM THE CENTRAL BANK AND OTHER BANKS - - - 378,754,060 451,190,747 CASH,CASH EQUIVALENTS AND DUE FROM THE CENTRAL BANK AND CALL LOANS TO OTHER BANKS 456,860,304 427,274,105 514,225,498 - - SECURITIES PURCHASED, NET - - - 309,471,455 241,733,762

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 41,748,515 47,521,600 22,114,804 - -

SECURITIES PURCHASED UNDER RESELL AGREEMENTS - - 219,173 - -

AVAILABLE-FOR-SALE FINANCIAL ASSETS 60,247,280 61,907,516 55,670,846 - -

BILLS, DISCOUNTS AND LOANS, NET - - - 1,253,938,099 1,221,224,308

DISCOUNTS AND LOANS, NET 1,729,746,205 1,713,813,847 1,274,665,865 - -

RECEIVABLES, NET 28,871,623 27,439,825 27,096,034 15,558,643 25,569,313

HELD-TO-MATURITY FINANCIAL ASSETS 7,527,062 3,163,176 3,281,479 - -

EQUITY INVESTMENTS UNDER THE EQUITY METHOD 5,776,283 4,908,188 1,145,541 - -

LONG-TERM INVESTMENTS - - - 27,015,586 7,199,815

PROPERTIES, NET 33,866,474 33,591,776 26,690,671 20,101,427 20,341,583

INTANGIBLE ASSETS 3,434,078 3,494,158 - - -

OTHER FINANCIAL ASSETS, NET 47,387,263 41,071,681 31,358,683 - -

OTHER ASSETS, NET 7,078,466 9,229,352 9,474,080 24,175,631 24,274,664 TOTAL ASSETS 2,422,543,553 2,373,415,224 1,965,942,674 2,029,014,901 1,991,534,192 DUE TO THE CENTRAL BANK AND OTHER BANKS 241,924,924 254,411,303 249,060,945 269,101,897 250,331,885

DEPOSITS AND REMITTANCES 1,885,247,837 1,823,373,039 1,533,042,886 1,582,927,974 1,548,537,846 FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR 2,650,154 3,403,282 366,277 - - LOSS SECURITIES SOLD UNDER REPURCHASE AGREEMENTS 43,247,160 57,157,571 39,305,020 - - FUNDS BORROWED FROM THE CENTRAL BANK、BANK 97,212,440 77,864,000 36,044,300 45,319,396 66,482,308 DEBENTURES ACCRUED PENSION COST 1,645,063 1,293,153 292,014 - -

OTHER FINANCIAL LIABILITIES 4,608,630 4,942,175 3,434,269 - -

OTHER LIABILITIES 43,568,619 53,238,451 40,468,046 70,998,459 65,790,234

TOTAL LIABILITIES 2,320,104,827 2,275,682,974 1,902,013,757 1,968,347,726 1,931,142,273

CAPITAL STOCK 47,700,000 45,000,000 25,398,304 25,398,304 22,085,482

RESERVE FOR CAPITALIZATION - - 2,539,830 - -

CAPITAL SURPLUS-PAID-IN CAPITAL IN EXCESS OF PAR VALUE 32,207,944 34,907,944 23,696,319 29,274,539 31,562,831

RETAINED EARNINGS 18,732,715 12,720,380 8,176,723 5,801,247 6,544,960

UNREALIZED REVALUATION INCREMENTS 4,419,580 4,024,155 4,025,113 - -

UNREALIZED GAIN (LOSS) ON FINANCIAL INSTRUMENTS (896,081) 902,595 - - -

CUMULATIVE TRANSLATION ADJUSTMENTS 274,568 177,176 92,628 193,085 198,646

TOTAL STOCKHOLDERS' EQUITY 102,438,726 97,732,250 63,928,917 60,667,175 60,391,919

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Condensed Statement of Income Unit: Thousands of New Taiwan Dollars

2007 2006 2005 2004 2003 NET INTEREST 24,349,684 21,287,921 16,429,931 - - NET REVENUE AND GAIN OTHER THAN INTEREST 10,214,607 12,060,593 8,062,913 - - ALLOWANCE FOR BAD-DEBT EXPENSES 4,678,962 6,987,444 - - - BAD-DEBT EXPENSES FOR LOANS - - 5,389,910 - - OPERATING EXPENSES 17,943,915 15,970,732 16,299,069 - - OPERATING REVENUE - - - 46,224,032 55,119,691 OPERATING COST AND EXPENSES - - - 44,432,869 51,933,012 OPERATING INCOME - - - 1,791,163 3,186,679 NONOPERATING REVENUE - - - 1,034,809 1,067,439 NONOPERATING EXPENSES - - - 1,791,645 1,067,447 INCOME BEFORE INCOME TAX 11,941,414 10,390,338 2,803,865 1,034,327 3,186,671 INCOME BEFORE CUMULATIVE EFFECT OF CHANGES 9,740,373 9,135,146 2,634,351 809,674 2,472,932 IN ACCOUNTING PRINCIPLES CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING - 40,062 - - - PRINCIPLES NET INCOME 9,740,373 9,175,208 2,634,351 809,674 2,472,932

Key Ratios(%)

2007 2006 2005 2004 2003 STABILITY RATIOS DEBT RATIO(TOTAL LIABILITIES/TOTAL ASSETS) 95.75% 95.86% 96.73% 96.97% 96.93% FIXED ASSETS/NET WORTH 33.06% 34.37% 41.75% 33.13% 33.68% LIQUIDITY RESERVE RATIO 15.58% 15.41% 23.81% 32.74% 32.93% PROFITABILITY RATIOS RETURN ON TOTAL ASSETS 0.41% 0.42% 0.13% 0.04% 0.13% RETURN ON EQUITY 9.73% 11.30% 4.23% 1.34% 4.18% NET INCOME RATIO 28.18% 27.39% 10.76% 1.75% 4.49% EARNINGS PER SHARE 2.04 2.31 0.81 0.25 0.75

Credit Rating

Global Global National National Rating Agency Outlook Release Date Long Term Short Term Long Term Short Term S&P/TRC BBB+ A-2 twAA twA-1+ Stable 2008.01.23 Moody’s A2 P-1 Aa1.tw TW-1 Stable 2007.12.07

Domestic ranking

Assets 2 Loans 2 Deposits 2 Branches 1

 ORrgGanAiNzaIZtiAonT ICOhNa rt

E.V.P. Tien Lin E.V.P. John S. C. Chou

E.V.P. Chung-Dea Hsieh E.V.P. Chen-Yuan Tu

E.V.P. David Hu General Auditor Chiu-Jung Tsai

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Organization Chart

General Auditor Auditing Division, Board of Directors Secretariat, Board of Directors

Business Management Department Corporate Banking Department Credit Management Department

Treasury Department

International Banking Department Personal Banking Department Wealth Management Department

Trust Department

Securities Department

Electronic Banking Domestic Department Branches

Credit Card Department Regional Loan Assets Credit Overseas Board of Management Department Management Branches Directors Executive Center Shareholders' Vice Meeting President Chairperson Presidents Regional NPL Overseas Secretariat Management Representative Center Office General Affairs Division

Accounting Division Overseas Subsidiary Board of Bank Supervisors Information Technology Division Credit Analysis and Research Division Risk Management Division Human Resource Division Legal Affairs Division Security Management Division

 Board of Directors & Supervisors & Executive Officers

Board of Directors & Supervisors & Executive Officers

Board of Directors Executive Officers Chairperson President Teh-Nan Hsu An-Hsiung Chen Managing Directors Executive Vice Presidents An-Hsiung Chen Tien Lin Chuan-Chung Liu John S.C. Chou Tse-Ching Huang Chung-Dea Hsieh Directors Chen-Yuan Tu Kao-Chi Chen David Hu Jen-Poo Chen Der-Tzon Hsieh Kuo-Tay Chen S.V.P. & G.M., Business Management Department Bor-Wen Lee Hong-Chen Lin Che-Hui Huang S.V.P. & G.M., Corporate Banking Department Chih-Hsing Chang Yang-Jan Fan Jen-Chyuan Lee S.V.P. & G.M., Credit Management Department Shu-Kai Lee Wen-Long Lin Jung-Ching Su S.V.P. & G.M., Treasury Department Chen-Fa Wang Fei-Ling Hu Sing-Lon Lin S.V.P. & G.M., International Banking Department Chih-Ching Lian Michael M.J. Chang Yen-Shu Tsai S.V.P. & G.M., Personal Banking Department Dah-Wei Wu E. V. P. & General Auditor S.V.P. & G.M., Wealth Management Department Chiu-Jung Tsai Mei-Tsu Chen S.V.P. & G.M., Trust Department Wen-Jenq Wu

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Board of Supervisors Executive Officers Resident Supervisor S.V.P. & G.M., Securities Department Hsuan-Chu Lin Shih-Chih Tsai S.V.P. & G.M., Electronic Banking Department Supervisors Meng-Chin Lin Robert K. Su S.V.P. & G.M., Credit Card Department Len-E Chen Ching-Hung Shih Long-Yen Chuang S.V.P. & G.M., Loan Assets Management Department Ching-Yu Cheng Cheng-Hsiu Chen S.V.P. & G.M., Secretariat Kuan-Young Huang S.V.P. & G.M., General Affairs Division Chang-Jung Lin S.V.P. & G.M., Accounting Division Chao-Hsin Lin S.V.P. & G.M., Information Technology Division Hsiang Hu S.V.P. & G.M., Credit Analysis and Research Division Shiann-Wen Wu S.V.P. & G.M., Risk Management Division Chin-Hung Ho S.V.P. & G.M., Human Resource Division Wu-Lieh Tsai S.V.P. & G.M., Legal Affairs Division Chih-Cheng Peng S.V.P. & G.M., Security Management Division Che-Tsung Chang

11 Bank Profile

Bank Profile

Date of establishment: Oct. 5, 1946. History

The Bank was established in 1946 through the reorganization of the “Taiwan Industry Bank” of the Japanese-occupation era. Capitalization in the amount of 25 million Old Taiwan Dollars was provided by the Taiwan Provincial Government along with cooperative groups, farmers’ associations, fishermens' associations, and irrigation associations. The operating scale of the Bank has been constantly expanded thanks to the efforts of its entire staff over the past 60 years, and at the end of 2007 its capitalization stood at NT$47.7 billion.

The Bank achieved corporate status under the provisions of Article 52 of the Banking Law in May 1985. It was reorganized as the Taiwan Cooperative Bank Co., Ltd. on Jan.1, 2001; went public in June 2003; was listed on the stock market on Nov.17, 2004; changed its Chinese name on February10, 2006, but its English name remains unchanged; and merged with The Farmers Bank of China on May 1 that year. As of Dec. 31, 2007 the Bank had a total of 306 domestic and overseas branches (including the Manila Branch, Los Angeles Branch, Seattle Branch, Hong Kong Branch and Beijing Representative Office), and giving us the most extensive branch network of all Taiwan banks and putting us in a position of market leadership in share of deposits and loans. According to the statistics published in the July 2007 issue of The Banker magazine, in the assets ranking of top 1,000 banks the TCB placed 153rd in the world and second in Taiwan, after only the Bank of Taiwan.

The TCB, Bank of Taiwan, Land Bank of Taiwan, and Taiwan Business Bank have jointly established the United Taiwan Bank in Belgium, with the TCB taking a 70% share of its equity. In addition, the TCB established the wholly-owned Cooperative Bank Assets Management Co. on Oct.18, 2005 and, on Mar.22, 2006, boosted its capitalization to a total of NT$3.5billion.

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On Nov.25, 2005 the Bank established the wholly-owned Cooperative Bank Insurance Brokerage Co. with an investment of NT$10 million. Also, established Taiwan Cooperative Bills Finance Corporation with an investment of NT$529,516 thousand via Debt-for-Equity Swap, and taking a 50.56% share of its equity.

Under the TCB Charter, the Bank is charged with carrying out the missions of operating a banking business, developing national economic construction, and providing financial adjustment for the farming and fishery industries. In addition to providing financing for cooperative enterprises, the farming and fishery industries, and small and medium enterprises, the TCB also offers deposit, loan, and foreign exchange services for business enterprises in general to facilitate funds utilization and promote overall economic development. This makes the TCB a consolidated international bank for farming, fishery, cooperative, and business financing.

13 Main Business Plans for 2008

Main Business Plans for 2008

Operational Management

✿ The Bank’s expanded branch network will be used to enlarge the scale of financial EDI and other financial trading in combination with customer funds-flow services. ✿ Government treasury deposits, salary transfers for enterprises and groups, collection of equity payments for capital increases by listed companies, payment of compensation on behalf of county and city governments, collection and payment for securities settlements, and the funds custodianship banking businesses will be vigorously pursued. ✿ Business relations with four major military and government funds will be reinforced. ✿ A bank-wide seal imprint system will be established, the functions of the bills operation center will be enhanced, and remittance and deposit procedures will be simplified so as to lower operating costs and improve service quality as well as customer satisfaction.

Corporate Banking

✿ High-quality corporate loans will continue to be extended, and policy loans and loans to small and medium enterprises will be strengthened. ✿ “Formosa Plastics Online Order Financing,” “Movable Property-secured Receivables Financing,” “E-business Procurement Financing,” and other online financing businesses will be developed in order to strengthen online financing of transactions between high-quality upstream suppliers and downstream dealers. ✿ Foreign-currency trade financing will be strengthened so as to increase the Bank’s market share for the foreign-exchange business. ✿ The substitution of demand deposits for time deposits for use as collateral for loans will be carried out so as to reduce capital costs and heighten the interest-rate spread.

Personal Banking

✿ An automatic valuation model (AVM) for real estate will be established to boost the efficiency of value appraisal and enhance market competitiveness. ✿ POS, online collection, and collection for mail-order purchases will be provided using multiple- purpose cards that combine the functions of credit cards, debit cards, IC bank cards, and stored- value cards. ✿ The nation-wide fee-payment business will be actively developed, with guidance being provided to individual operators to increase nation-wide payment channels for school tuition and fees, community management fees, parking fees, utility fees, telecommunications fees, pay-per-view TV fees, credit-card fees, and charitable donations.

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✿ High-consumption, low-risk Infinity Cards, Platinum Cards, and government e-procurement cards will be vigorously promoted and the number of valid cards will be increased so as to boost the amount of card consumption.

Financial Planning

✿ Work will continue on the establishment of the Ho Chi Minh City Branch and Sydney Branch so as to expand services to Taiwanese businesses in the Asia-Pacific area. ✿ The location of the Hong Kong Branch in an international financial center will be exploited, along with the rapid economic development in neighboring areas, to provide Taiwanese enterprises with a complete range of banking products and professional services and develop the branch into a funding center for Taiwanese businesses. ✿ Implementation of the professional manager system will be accelerated, business units bank- wide will be used for the referral of widespread customer sources, and convenient online trading will be utilized to achieve “any time, any place” securities brokerage transactions. ✿ Risk controls will be strengthened and related rules will be reviewed on a regular basis so as to achieve trading discipline and reduce investment risk. ✿ Capital allocation will be introduced in line with bank-wide development strategies in the quest for optimal capital performance.

Wealth Management

✿ The “special officer, special zone” service system will be implemented and coordinating action by the manager and staff of each branch will be promoted. ✿ The implementation of different marketing programs will be continued and a diverse range of products provided, and new customer sources will be developed in line with various kinds of marketing channels so as to boost the Bank’s market share. ✿ The “TCB Home Loan Securitization” business will be planned and implemented. ✿ Negotiations with investment trust companies will be carried out in regard to the securities investment trust fund custodianship business with the aim of increasing the number and size of funds under the Bank’s custodianship, and the derivatives-related deposit, foreign exchange, securities trading, and RP businesses will be promoted.

15 Market Analysis

Market Analysis

Area of Service The TCB is a comprehensive bank that provides services in the fields of corporate banking, personal banking, wealth management, and professional finance through a nation-wide network of branches. At the end of 2007 the Bank had a total of 301 domestic business units, more than any other bank in Taiwan. It also had six overseas units, in Belgium, Manila, Seattle, Los Angeles, Hong Kong, and Beijing.

Future Supply and Demand in the Market, and Growth Potential On the supply side, excessive competition among domestic financial institutions has led to an intractable thinning of interest-rate spreads and increasingly intense price competition, especially among commercial banks with their high degree of product similarity. Domestic public and private financial institutions are constantly engaged in organizational readjustment and are placing added emphasis on improvement of their financial structures, reinforcement of their risk management, and the introduction of new products. They have also greatly increased their marketing activities. On the demand side, the traditional loan business can hardly fill the diverse financial- management needs of today’s customers, consumption patterns have changed (in such ways as the popularization of e-commerce and the heightening of the spending-on-credit ratio), and demand is growing from capital flowing abroad in search of higher returns in response to the low level of interest rates at home. In their development of business demand, therefore, in the future domestic banks will focus on services such as investment recommendation, tax planning, and wealth- management products.

Competitive Niches

✿ Outstanding reputation and solid operating base The TCB was established in 1946 and today, after decades of healthy operation, tops all other domestic banks in terms of total assets, loans, and deposits. The Bank constantly reinforces its competitive advantages by carrying out organizational re-engineering and strengthening strategic alliances; in addition, it vigorously promotes the corporate banking, consumer banking, wealth management, foreign exchange, trust, and insurance brokerage businesses as it develops into a universal bank. It also works ceaselessly to improve its financial structure, enhance its financial efficiency, and become a leading regional bank.

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✿ Comprehensive branch network with service-channel advantage The TCB has more than 300 domestic business locations with a complete range of financial products, and places strong emphasis on staff training and the strengthening of customer relationship management. It has won the loyalty and confidence of customers by upgrading IT systems and improving operating processes so as to provide a full range of professional financial services in a one-stop-shopping environment.

✿ Large customer base and rich financial management opportunities The TCB was the first Taiwan bank to use an electronic platform to integrate its e-business, corporate banking, credit-card issuance, and bills collection business. By the end of 2007 it had established four flagship financial planning locations and 221 financial planning zones; it has also installed professional financial planners in all branches, and realizes maximum synergies through cross-marketing to its vast customer base.

✿ Vigorous development of overseas markets The TCB’s Hong Kong Representative Office was upgraded to a branch in December 2007, enabling it to provide a more diverse range of financial services to Taiwanese businesses in Taiwan, Hong Kong, and mainland China. In the future, the Bank will focus on the Asia-Pacific region in evaluating the feasibility of establishing new business locations in Vietnam, Singapore, Thailand, Australia, India, and Indonesia, among other places, with the aim of heightening its ratio of profits derived abroad.

Favorable and Unfavorable Factors in Future Development, and Countermeasures

✿ Favorable Factors

✿ The TCB has the largest volume of loans and the most business locations of any Taiwan bank, providing a multiplier effect on its realization of multi-dimensional operations and enhancement of synergies.

✿ The Bank has worked hard at the development of new financial products in recent years, and at expansion of its foreign-currency and OBU businesses through its more than 300 domestic branches, overseas branches in Manila, Los Angeles, Seattle, and Hong Kong, and its subsidiary in Brussels, the Taiwan United Bank, thereby increasing its income and enlarging its market share.

✿ With the government’s continuous promotion of an incentive program for loans to small and medium enterprises, the TCB has extended more loans to SMEs than any other Taiwan bank. The incentive program has helped substantially with the expansion of the Bank’s branch network and the promotion of new businesses.

17 Market Analysis

✿ The Bank constantly cultivates the syndicated loan market with a spirit of pragmatism and an attitude of professionalism, and the steady growth of this business effectively increases the Bank’s income.

✿ The Bank took the lead in introducing loan standards by area and grade, setting high and low percentages for Taiwan’s 319 townships according to the location of the real estate, land prices, and development prospects, and then establishing loan standards in based on ability to repay. This will avoid the risk of bad mortgage debt.

✿ The Bank’s NPL ratio dropped to 1.67% at the end of 2007, and the continuous improvement of asset quality points to even healthier development of operations in the future.

✿ Unfavorable Factors

✿ Despite strenuous efforts by Taiwan’s banks to develop new products, the domestic banking industry is excessively competitive and will likely remain so in the short term. This gives rise to the likelihood of price wars in the sale of financial products. While the TCB enjoys comparative advantage in the traditional deposit and loan business, it is difficult to widen the interest-rate spread and increase operating profit.

✿ The direct-financing market is booming and the methods companies use to raise funds are becoming increasingly diversified. This is unfavorable to the development of the Bank’s loan business.

✿ Some domestic companies are reducing their domestic financial and business scale in response to global deployment and the attraction of mainland China. This depresses the demand for capital in Taiwan and is unfavorable to the further expansion of the Bank’s business.

✿ The rapid expansion of foreign bank branches in Taiwan poses a new threat to the wealth management business and local-niche advantage of domestic banks.

✿ The implementation of the Consumer Insolvency Act will potentially have a negative impact on promotion of the consumer-loan business.

✿ Countermeasures

✿ In the face of the ever-tighter integration of international financial markets and the rapid financial and economic changes that are constantly taking place, the TCB will set up comprehensive risk management policies and rules and will control risk dynamically in response to changes in the operating environment.

18 ANNUAL REPORT

✿ The Bank will engage constantly in organizational re-engineering and readjustment of its division of labor, working not only to add new overseas branches and expand overseas markets but also vigorously to develop electronic financial services.

✿ In response to the trend toward financial integration in the Asia-Pacific region, the TCB will strive to strengthen its ability to offer a complete spectrum of financial services by proactively seeking strategic alliances with partners having business fields and locations that complement the TCB’s own and that can provide added value.

✿ The Bank will vigorously pursue the right to serve as lead bank for syndicated loans and will strive toward the goal of being managing bank, and will develop related derivative businesses.

✿ The TCB will strive to develop a full spectrum of banking businesses by continuing to work on the establishment of asset management and insurance brokerage subsidiaries, constantly cultivating corporate loans, and devoting full efforts to the development of the consumer financing and wealth management businesses.

✿ The Bank will strive to enhance staff quality and reinforce competitiveness by continuing to recruit outstanding personnel, adjusting its human resources policy, and carrying out personnel training.

✿ The Bank will use its widespread branch network and corporate-loan customer base to develop overall marketing capabilities and strengthen the development of the OBU financing business and non-L/C financing business in response to international trends. The Bank will also work to facilitate development of its foreign exchange business by integrating Hong Kong and Taiwan resources to provide clients with funds-flow services.

19 Risk Management

Risk Management

Credit Risk Management System

✿ Credit Risk Strategies, Goals, Policies, and Procedures

✿ The TCB’s credit-risk strategies are established in accordance with overall risk management targets, and are with the use of an effective risk management mechanism to identify, measure, monitor, and control different items of risk to fulfill the requirements of Basel II Accord.

✿ The Bank implements pre-loan screening and post-loan follow-up management, and makes judgments in accordance with the information provided by the Joint Credit Information Center and Taiwan Clearing House. Risk management is also carried out in consideration of trends in industrial growth and the needs of regional development, and on the basis of five principles: safety, liquidity, fairness, profitability, and growth potential.

✿ To establish an objective credit investigation mechanism, the Bank is implementing the credit-risk scoring and rating tools that will use systematic and objective models to quantify risk and keep it within bearable limits.

✿ Organization and Framework of Credit Risk Management

✿ The Board of Directors is the Bank’s highest policymaking body for risk management, and bears ultimate responsibility for the Bank’s credit risk.

✿ The Risk Management Committee operates the credit risk management mechanism in accordance with credit risk decisions approved by the Board of Directors, reviews credit risk regulations, provides interdepartmental coordination on matters regarding credit risk management, and continuously monitors the performance of implementation.

✿ The headquarters and branches have established Credit Management Committees to review loan cases, and to approve or reject loan applications in accordance with their level of loan authorization.

✿ A Loan Assets Management Committee has been set up to review the disposition and writing off of non-performing loans and loans for collection, and the writing off of losses from the disposition of assumed collateral, so as to strengthen the management of NPLs and loans for collection.

✿ A Credit Review Section has been set up within the Department of Loan Assets Management to supervise the carrying out of review and follow-up management by business units of loans that have been extended.

20 ANNUAL REPORT

✿ Scope and Characteristics of the Credit Risk Reporting and Measuring System The Bank submits a regular Credit Risk Information Report (including information on risk positions, asset quality, limits utilization, and exceptional incidents) to high management levels (the Risk Management Committee) and the Board of Directors to serve as a reference in decision-making.

✿ Hedging Policy, and Strategies and Procedures for Monitoring the Continuing Effectiveness of Risk-Hedging Tools

✿ The TCB has established a Loan and Investment Policy and Credit Risk Management Criteria, and has set up rules for the concentration of different kinds of credit risk and for dealings with materially interested parties so as to manage credit risk effectively and reinforce the Bank’s credit risk management mechanism.

✿ The Bank sets limits for the same enterprise, business group, industry, country, and type of collateral, and monitors the limits constantly. It also readjusts the limits on regular and irregular bases so as to avoid the excessive concentration of risk and assure the Bank’s stable operation.

✿ To reduce risk, the Bank carries out its loan business by soliciting suitable collateral or guarantees in accordance with the credit situation of loan clients

Operational Risk Management System

✿ Strategies and Procedures

✿ The Bank’s strategy for dealing with operational risk is to evaluate the severity and probability of the occurrence of exposure to potential operational risks that have been identified, and then adopt risk hedging, transfer or mitigation, reduction, assumption, or other countermeasures to maintain operational safety and a healthy operating structure that will reduce losses from operational risk.

✿ The process of operational risk management includes identification, measuring, monitoring, and reporting. A healthy operational risk management mechanism is used to identify such internal and external factors as business characteristics, personnel, systems, and operating environment; risk is then measured with regard to causes, results, incidence, and impact, and indexes such as operational procedures, personnel, systems, and external incidents are monitored regularly. Information on bank-wide exposure to operational risk, and status of management, is collected, analyzed, and reported to high management levels, the Risk Management Committee, and the Board of Directors.

21 Risk Management

✿ Organization and Framework

✿ The Board of Directors is the Bank’s highest unit of policymaking for operational risk management, and the Risk Management Committee monitors the performance of management and implementation in accordance with the policies of the Board of Directors.

✿ The Risk Management Division formulates bank-wide strategies and procedures for operational risk management, designs and introduces operational risk management mechanisms and tools, establishes and manages the bank-wide loss databank, and reports on operational risk incidents and gives suggestions to the Risk Management Committee and Board of Directors on a regular basis.

✿ Units and personnel at all levels of the Bank observe the Bank’s operational rules, taking care of any operational risks that arise and reporting them immediately. Headquarters units manage and supervise the performance of units throughout the bank in carrying out risk management.

✿ The Auditing Office of the Board of Directors carries out an inspection of the risk management mechanism and loss incident reporting of each unit at least once a year.

✿ Scope and Characteristics of the Operational Risk Reporting and Measurement System To effectively identify, measure, monitor, and report on all kinds of potential operational risks in everyday business activities and management procedures, the Bank has established and centralized a database for the bank-wide management of operational risk incidents, including recording and following up on the causes for the occurrence of risk incidents, amount of losses, disposition process, and impact. Beginning in 2007, analytical reports on bank-wide operational risk information and status of management are submitted regularly to the Risk Management Committee and Board of Directors.

✿ Risk Hedging and Risk Mitigation Policies, and Monitoring of Strategies and Procedures for the Continuing Effectiveness of Hedging and Mitigation Tools

✿ Operational rules have been established and implemented in everyday operations; a reporting mechanism for incidents causing losses has been set up, together with self-assessment by the different units and the auditing work of Bank headquarters; and reports are compiled and submitted with the purpose of preventing, and reducing, operational risk.

✿ In its operational risk mitigation policy the Bank uses insurance or outsourcing to transfer or mitigate operational risk. It takes out comprehensive banking insurance (including coverage for disloyal behavior by employees, business venues and goods during shipment, counterfeiting of bills and securities, counterfeiting of money, and negligent loss), and fire. Operational risk in outsourcing is prevented by following the rules of the Criteria for the

22 ANNUAL REPORT

Outsourcing of Operations by the Taiwan Cooperative Bank.

Market Risk Management System

✿ Strategies and Procedures The Bank bases its market risk management policies on its overall risk management goals and product characteristics, sets investment authorization limits and stop-loss rules, and regularly evaluates and collates management information reports so as to effectively control market risks.

✿ Organization and Framework

✿ The Bank’s Risk Management Committee operates the market risk management mechanism in accordance with management decisions approved by the Board of Directors, reviews the limits for different kinds of market risk as well as limits at the sectoral level, and reviews changes in business strategies and market conditions on a scheduled basis or whenever necessary.

✿ The Bank’s Risk Management Division carries out the work of overall market risk management bank-wide, playing the role of a centralized middle office.

✿ The mid-office personnel of the different trading units follow the Bank’s market risk management regulations in managing everyday operations in real time, monitor different limits actively, and submit regular reports to the Risk Management Division.

✿ Scope and Characteristics of the Market Risk Reporting and Measurement System

✿ The TCB’s market risk management procedures include identification, assessment, measuring, monitoring, and reporting. Risk management personnel of the different units analyze market risk positions within the scope of their responsibilities; assessment and measurement methods include statistical basic measurement methods, sensitivity analysis, and scenario analysis. Monitoring is used to determine whether trading units as well as the overall and individual trading procedures for financial products, including changes in position, changes in profit and loss, trading models, and trading instruments, conform to the rules, and whether they are carried out within limits and scope of authorization.

✿ The different trading units report trading information to their superior units on a real-time, daily, or scheduled basis, and assure the accuracy and validity of the information. The Risk Management Division submits regular reports and suggestions to the Risk Management Committee and the Board of Directors on the bank-wide implementation of market risk management, including such factors as market risk positions, risk levels, profit and loss, limits utilization, and the status of conformance with market risk management regulations.

23 Risk Management / Statement of Internal Control

✿ Hedging and Mitigation Policy, and Monitoring of the Continuing Effectiveness of Hedging and Risk Mitigation Policies and Procedures The Bank’s current risk-avoidance activity is used primarily to avoid the risk of foreign exchange and interest rate changes when investing in foreign-currency capital and securities, and hedging tools are confined mainly to derivative swaps. To assess changes in profit and loss from hedging activities, derivatives traded in hedging transactions are evaluated at least twice a month as to their market value and are combined with the evaluation of profit and loss on hedging products in reports that are submitted to the Bank’s risk management officials at least twice a month. In addition, monthly reports are submitted to the business committee and Board of Directors, and, on a seasonal basis, to the Risk Management Committee.

24 ANNUAL REPORT

Taiwan Cooperative Bank Statement of Internal Control

On behalf of the Taiwan Cooperative Bank we declare that during the period of Jan. 1, 2007 through Dec. 31, 2007 the Taiwan Cooperative Bank did conform to the provisions of the Implementation Rules for Banks’ Internal Control and Auditing Systems by establishing an internal control system, carrying out risk management, and having audits carried out by an impartial and independent auditing unit, with reports submitted on a regular basis to the Boards of Directors and Supervisors. In its operation of the securities business, the Bank assessed the effectiveness of the establishment and implementation of its internal control system in accordance with the items for judgment of the effectiveness of internal control system as contained in the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets promulgated by the Securities and Futures Bureau of the Financial Supervisory Commission. Careful assessment shows that the Bank’s units did effectively carry out internal control and regulatory compliance during this year, and did strengthen internal control in regard to the deposit business. This Statement will become a major part of the Bank’s annual report and its public announcements, and will be made public. Any fraudulent statements, undisclosed items, or other illegality will incur legal responsibility under Articles 20, 32, 171, and 174 of the Securities and Exchange Act.

Submitted to the Financial Supervisory Commission, Executive Yuan

Attestor

Chairperson:

President:

General Auditor:

Compliance Officer:

Jan. 25, 2008

25 MSteastesmageen t oo fo Iunrt esrhnaarle Cholndterorsl

Statement Internal Control of Securities Business

According to a self-audit carried out by the Taiwan Cooperative Bank, the internal control system of the Bank did conform to the following conditions during the period of Jan.1, 2007 through Dec.31, 2007:

1. The Taiwan Cooperative Bank fully realizes that the establishment, implementation, and maintenance of an internal control system is the responsibility of the Bank’s Board of Directors and management team, and has in fact established such a system. The purpose of the system is to provide reasonable assurance that the objectives of effective and efficient business operations (including profitability, performance, and protection of asset quality), the reliability of financial reporting, and compliance with related laws and regulations are being achieved.

2. Internal control systems have inherent limitations, however well they are designed, and an effective international control system can only provide reasonable assurance of the achievement of the three objectives mentioned above. Moreover, the effectiveness of an internal control system may change along with environmental or situational changes. However, the Bank’s internal control system contains a self-monitoring mechanism, and corrective action is taken as soon as a deficiency is identified.

3. Based on the judgment items in the criteria for evaluation of internal control systems as contained in the Guidelines for the Establishment of Internal Control Systems by Securities and Futures Enterprises, the TCB has carried out an evaluation to ascertain the effectiveness of the design and implementation of its internal control system. The criteria adopted for the evaluation of internal control systems under the Guidelines include five factors: (1) the control environment, (2) risk evaluation, (3) control operations, (4) information and communication, and (5) supervision. Each of these component elements contains a number of items. For detailed information on these items, please refer to the provisions of the Guidelines.

4. The TCB has adopted the internal control judgment criteria mentioned above to evaluate the effectiveness of the establishment and implementation of its internal control system.

26 ANNUAL REPORT

5. Based on the results of the evaluation mentioned above, we believe that the establishment and implementation of the internal control system (including the supervision and management of subsidiaries) during the period mentioned above, including the extent of achievement of the known operational effectiveness and efficiency objectives, the reliability of financial reporting, and compliance with related laws and regulations, were effective and able to assure the reasonable achievement of the objectives described above.

6. This Statement will become a major part of the TCB’s Annual Report and Public Statement, and will be released to the public. Any discrepancy or omission in the content of the public statement would be a violation of Articles 20, 32, 171, and 174 of the Securities and Exchange Act and would incur legal responsibility.

7. The content of this Statement was approved by the 16 directors present at the TCB Board of Directors Meeting on Jan. 25, 2008, with no objection.

Taiwan Cooperative Bank

Chairperson:

President:

Feb. 18, 2008

27 Supervisors' Report / Independent Auditors' Report

Supervisors' Report

We have examined, in accordance with Article 219 of the Company Law, the financial statements and consolidated financial statements, proposed distribution of profit, and business reports as certified by Li-Chi Chen and Ryh-Yan Chang of Deloitte & Touche, and have found no discrepancies.

Taiwan Cooperative Bank

Supervisor:

Supervisor:

Supervisor:

Supervisor:

Mar. 19, 2008

28 ANNUAL REPORT

Independent Auditors’ Report

The Board of Directors and the Stockholders

Taiwan Cooperative Bank, Ltd.

We have audited the accompanying balance sheets of Taiwan Cooperative Bank, Ltd. as of December 31, 2007 and 2006, and the related statements of income, changes in stockholders’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Bank’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the Rules Governing the Audit of Financial Statements of Financial Institutions by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Those rules and standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, based on our audits, the financial statements referred to above present fairly, in all material respects, the financial position of Taiwan Cooperative Bank, Ltd. as of December 31, 2007 and 2006, and the results of its operations and its cash flows for the years then ended, in conformity with the Guidelines Governing the Preparation of Financial Reports by Public Banks, requirements of the Business Accounting Law and Guidelines Governing Business Accounting relevant to financial accounting standards, and accounting principles generally accepted in the Republic of China.

As stated in Note 3 to the financial statements, Taiwan Cooperative Bank, Ltd. adopted on January 1, 2006 the newly released Statements of Financial Accounting Standards (“Statements”) No. 34 - “Accounting of Financial Instruments” and No. 36 - “Disclosure and Presentation of Financial Instruments” and related revisions of previously released Statements.

29 Independent Auditors' Report / Financial Statement

We have also audited the consolidated financial statements of Taiwan Cooperative Bank, Ltd. and its subsidiaries as of and for the years ended December 31, 2007 and 2006, on which we have issued an unqualified opinion and a modified unqualified opinion thereon, respectively, in our report dated February 22, 2008 (not presented herewith).

February 22, 2008

Notice to Readers

The accompanying financial statements are intended only to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such financial statements are those generally accepted and applied in the Republic of China.

For the convenience of readers, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

30 ANNUAL REPORT

Financial Statement

TAIWAN COOPERATIVE BANK, LTD. BALANCE SHEETS DECEMBER 31, 2007 AND 2006 (In Thousands of New Taiwan Dollars, Except Par Value)

Percentage 2007 2006 Increase (Decrease) ASSETS Amount Amount %

CASH AND CASH EQUIVALENTS (Notes 4 and 28) $ 32,500,510 $ 46,000,637 ( 29 )

DUE FROM THE CENTRAL BANK AND CALL LOANS TO OTHER BANKS (Notes 5, 28 and 29) 424,359,794 381,273,468 11

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Notes 2, 3 and 6) 41,748,515 47,521,600 ( 12 )

RECEIVABLES, NET (Notes 2, 7 and 28) 28,871,623 27,439,825 5

DISCOUNTS AND LOANS, NET (Notes 2, 8 and 28) 1,729,746,205 1,713,813,847 1

AVAILABLE-FOR-SALE FINANCIAL ASSETS (Notes 2, 3 and 9) 60,247,280 61,907,516 ( 3 )

HELD-TO-MATURITY FINANCIAL ASSETS (Notes 2 and 10) 7,527,062 3,163,176 138

EQUITY INVESTMENTS UNDER THE EQUITY METHOD (Notes 2 and 11) 5,776,283 4,908,188 18

OTHER FINANCIAL ASSETS, NET (Notes 2 and 12) 47,387,263 41,071,681 15

PROPERTIES (Notes 2 and 13) Land (including revaluation increments) 22,211,380 21,959,067 1 Buildings 13,017,330 12,585,683 3 Machinery and equipment 4,768,094 4,587,398 4 Transportation equipment 687,891 641,167 7 Other equipment 1,280,397 1,250,229 2 Leasehold improvements 565,913 500,997 13 42,531,005 41,524,541 2 Less: Accumulated depreciation 8,689,285 7,940,207 9 Less: Accumulated impairment 86,215 1,114 7,639 33,755,505 33,583,220 1 Construction in progress 42,545 8,556 397 Prepayment for land and buildings 54,664 - - Prepayment for equipment 13,760 - -

Properties, net 33,866,474 33,591,776 1

INTANGIBLE ASSETS (Notes 2, 3, 14 and 35) 3,434,078 3,494,158 ( 2 )

OTHER ASSETS, NET (Notes 2, 15, 25 and 30) Nonoperating assets, net 3,961,244 4,380,199 ( 10 ) Deferred income tax assets, net 694,462 2,020,098 ( 66 ) Collaterals assumed, net 985,947 1,316,824 ( 25 ) Refundable deposits 1,094,801 1,165,995 (6 ) Settlement funds 96,806 72,262 34 Others 245,206 273,974 ( 11 )

Other assets, net 7,078,466 9,229,352 ( 23 )

TOTAL $ 2,422,543,553 $ 2,373,415,224 2

31 Financial Statement

Percentage 2007 2006 Increase (Decrease) LIABILITIES AND STOCKHOLDERS’ EQUITY Amount Amount %

DUE TO THE CENTRAL BANK AND OTHER BANKS (Notes 16 and 28) $ 241,924,924 $ 254,411,303 ( 5 )

FUNDS BORROWED FROM THE CENTRAL BANK 12,891,440 13,713,000 ( 6 )

FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Notes 2, 3, 6 and 20) 2,650,154 3,403,282 ( 22 )

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS (Notes 2, 17 and 28) 43,247,160 57,157,571 ( 24 )

PAYABLES (Note 18) 40,114,451 49,262,796 ( 19 )

DEPOSITS AND REMITTANCES (Notes 19 and 28) 1,885,247,837 1,823,373,039 3

BANK DEBENTURES (Note 20) 84,321,000 64,151,000 31

ACCRUED PENSION COST (Notes 2 and 23) 1,645,063 1,293,153 27

OTHER FINANCIAL LIABILITIES (Notes 21 and 28) 4,608,630 4,942,175 ( 7 )

OTHER LIABILITIES (Notes 2, 13, 22 and 28) 3,454,168 3,975,655 ( 13 )

Total liabilities 2,320,104,827 2,275,682,974 2

STOCKHOLDERS' EQUITY Capital Common stock - NT$10 par value; authorized 6,000,000 thousand shares; issued and outstanding 4,770,000 thousand shares in 2007 and 4,500,000 thousand shares in 2006 47,700,000 45,000,000 6 Capital surplus - paid-in capital in excess of par value 32,207,944 34,907,944 (8 ) Retained earnings Legal reserve 6,071,750 3,319,187 83 Unappropriated earnings 12,660,965 9,401,193 35 Total retained earnings 18,732,715 12,720,380 47 Other equity Unrealized revaluation increments 4,419,580 4,024,155 10 Cumulative translation adjustments 274,568 177,176 55 Unrealized gain (loss) on financial instruments ( 896,081 ) 902,595 (199 ) Total other equity 3,798,067 5,103,926 (26 )

Total stockholders' equity 102,438,726 97,732,250 5

CONTINGENCIES AND COMMITMENTS (Notes 2 and 30)

TOTAL $ 2,422,543,553 $ 2,373,415,224 2

32 ANNUAL REPORT

TAIWAN COOPERATIVE BANK, LTD.

STATEMENTS OF INCOME YEARS ENDED DECEMBER 31, 2007 AND 2006 (In Thousands of New Taiwan Dollars, Except Per Share Amounts)

Percentage 2007 2006 Increase (Decrease) Amount Amount % INTEREST REVENUE (Notes 2, 28 and 32) $ 66,367,211 $ 57,670,073 15 INTEREST EXPENSE (Notes 2, 28 and 32) ( 42,017,527 ) ( 36,382,152 ) 15 NET INTEREST 24,349,684 21,287,921 14 NET REVENUE AND GAIN OTHER THAN INTEREST Service fee income, net (Notes 2, 28 and 32) 3,332,734 2,193,679 52 Gain (loss) on financial assets and liabilities at fair value through profit ( 148,847 ) 935,674 ( 116 ) or loss (Notes 2 and 32) Realized gain on available-for-sale financial assets (Notes 2 and 32) 667,864 609,614 10 Income from equity investments under the equity method (Notes 2 and 341,711 200,446 70 11) Foreign exchange gain (loss), net (Note 2) 579,098 ( 102,174 ) 667 Reversal of impairment loss (impairment loss) on assets (Notes 2, 12, 13 ( 439,680 ) 4,886 ( 9,099 ) and 15) Gain on financial assets carried at cost (Note 2) 617,887 367,847 68 Gain on disposal of properties (Note 2) 1,120,181 514,994 118 Recovery of bad debts written off and overdue accounts 3,599,636 6,664,834 ( 46 ) Other noninterest gain, net (Notes 2 and 28) 544,023 670,793 ( 19 ) Total net revenue and gain other than interest 10,214,607 12,060,593 ( 15 ) TOTAL NET REVENUE 34,564,291 33,348,514 4 ALLOWANCE FOR BAD-DEBT EXPENSES (Notes 2 and 8) ( 4,678,962 ) ( 6,987,444 ) ( 33 ) OPERATING EXPENSES Personnel (Notes 2 and 24) ( 11,842,537 ) ( 10,618,431 ) 12 Depreciation and amortization (Notes 2 and 24) ( 1,103,517 ) ( 1,050,202 ) 5 General and administrative ( 4,997,861 ) ( 4,302,099 ) 16 Total operating expenses ( 17,943,915 ) ( 15,970,732 ) 12

INCOME BEFORE INCOME TAX 11,941,414 10,390,338 15

INCOME TAX EXPENSE (Notes 2 and 25) ( 2,201,041 ) ( 1,255,192 ) 75

INCOME BEFORE CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES $ 9,740,373 $ 9,135,146 7

CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES (NET OF INCOME TAX EXPENSE OF $21,589 THOUSAND FOR THE ACCOUNTING CHANGES) (Note 3) - 40,062 ( 100 ) NET INCOME $ 9,740,373 $ 9,175,208 6

2007 2006 Before Income After Income Before Income After Income Tax Tax Tax Tax EARNINGS PER SHARE (Note 27) Basic $ 2.50 $ 2.04 $ 2.63 $ 2.31

The accompanying notes are an integral part of the financial statements.

(With Deloitte & Touche audit report dated February 22, 2008) (Concluded)

33 34

F i TAIWAN COOPERATIVE BANK, LTD. n a n c i STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY a l

YEARS ENDED DECEMBER 31, 2007 AND 2006 S t a

(In Thousands of New Taiwan Dollars) t e

Other Equity m e

Unrealized Unrealized n

Issued and Outstanding Capital Stock Capital Surplus - Revaluation Cumulative Gain (Loss) on t (Note 26) Reserve for Paid-in Capital in Retained Earnings (Note 26) Increments Translation Financial Total Shares Capitalization Excess of Par Unappropriated (Notes 2, 13, 15 Adjustments Instruments Stockholders’ (In Thousands) Common Stock (Note 26) Value (Note 26) Legal Reserve Special Reserve Earnings and 26) (Notes 2 and 3) (Notes 2 and 3) Equity BALANCE, JANUARY 1, 2006 2,539,830 $ 25,398,304 $ 2,539,830 $ 23,696,319 $ 2,528,882 $ 2,993,505 $ 2,654,336 $ 4,025,113 $ 92,628 $ - $ 63,928,917 Effects of accounting changes(Note 3) ------(23,157 ) 852,057 828,900

Special reserve transferred to unappropriated earnings - - - - - (2,993,505 ) 2,993,505 - - - - Appropriation of the 2005 earnings Legal reserve - - - - 790,305 - (790,305 ) - - - - Cash dividends ------(738,135 ) - - - (738,135 ) Stock dividends 369,068 3,690,674 - - - - (3,690,674 ) - - - - Remuneration to directors and supervisors ------(18,440 ) - - - (18,440 ) Bonus to employees ------(147,524 ) - - - (147,524 ) Appropriation to farmers' associations ------(36,778 ) - - - (36,778 ) Balance after appropriation 2,908,898 29,088,978 2,539,830 23,696,319 3,319,187 - 225,985 4,025,113 69,471 852,057 63,816,940 Capital surplus transferred to capital stock in February 2006 253,983 2,539,830 (2,539,830 ) ------Issuance of common stock for a merger with the Farmers Bank of China in May 2006 896,861 8,968,610 - 7,029,173 - - - 177,148 17,219 118,054 16,310,204 Capital increase in December 2006 440,258 4,402,582 - 4,182,452 ------8,585,034 Net income in 2006 ------9,175,208 - - - 9,175,208 Change in unrealized revaluation increments ------(178,106 ) - - (178,106 ) Cumulative translation adjustments ------90,486 - 90,486 Unrealized loss on financial instruments ------(67,516 ) (67,516 ) BALANCE, DECEMBER 31, 2006 4,500,000 45,000,000 - 34,907,944 3,319,187 - 9,401,193 4,024,155 177,176 902,595 97,732,250 Appropriation of the 2006 earnings Legal reserve - - - - 2,752,563 - (2,752,563 ) - - - - Cash dividends ------(3,150,000 ) - - - (3,150,000 ) Remuneration to directors and supervisors ------(64,226 ) - - - (64,226 ) Bonus to employees ------(513,812 ) - - - (513,812 ) Balance after appropriation 4,500,000 45,000,000 - 34,907,944 6,071,750 - 2,920,592 4,024,155 177,176 902,595 94,004,212 Capital surplus transferred to capital stock in August 2007 270,000 2,700,000 - (2,700,000 ) ------Net income in 2007 ------9,740,373 - - - 9,740,373 Change in unrealized revaluation increments ------395,425 - - 395,425 Cumulative translation adjustments ------97,392 - 97,392 Unrealized loss on financial instruments ------(1,798,676 ) (1,798,676 ) BALANCE, DECEMBER 31, 2007 4,770,000 $ 47,700,000 $ - $ 32,207,944 $ 6,071,750 $ - $ 12,660,965 $ 4,419,580 $ 274,568 $ (896,081 ) $ 102,438,726

The accompanying notes are an integral part of the financial statements. (With Deloitte & Touche audit report dated February 22, 2008) ANNUAL REPORT

TAIWAN COOPERATIVE BANK, LTD.

STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2007 AND 2006 (In Thousands of New Taiwan Dollars)

2007 2006

CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 9,740,373 $ 9,175,208 Cumulative effect of changes in accounting principles - (40,062 ) Loss (gain) on valuation of financial instruments 339,077 (32,117 ) Gain on the sale of available-for-sale financial assets (578,873 ) (461,284 ) Income from equity investments under the equity method, net of cash dividends received (199,182 ) (198,691 ) Impairment loss (reversal of impairment loss) on assets 439,680 (4,886 ) Depreciation and amortization 1,103,517 1,050,202 Gain on disposal of properties, nonoperating assets and collaterals assumed, net (1,190,465 ) (542,807 ) Allowance for bad-debt expenses 4,678,962 6,987,444 Other provisions 9,059 4,840 Amortization of premium or discount on bonds 735,296 900,095 Provision for pension costs 351,910 506,102 Deferred income tax 1,333,830 961,089 Loss (gain) on the sale of financial assets carried at cost (273,380 ) 8,659 Others (15,526 ) (22,143 ) Net changes in operating assets and liabilities Held-for-trading financial assets 7,444,082 (6,118,571 ) Receivables 241,617 4,581,919 Other assets 11,381 242,769 Held-for-trading financial liabilities (2,492,428 ) (99,729 ) Payables (9,164,188 ) 1,861,554 Other liabilities (143,196 ) 286,987

Net cash provided by operating activities 12,371,546 19,046,578

CASH FLOWS FROM INVESTING ACTIVITIES Decrease (increase) in due from the Central Bank and call loans to other banks (43,086,326 ) 161,558,713 Acquisition of financial assets designated at fair value through profit orloss (1,470,751 ) (1,755,108 ) Proceeds of the sale of financial assets designated at fair value through rofitp or loss 1,148,257 1,391,843 Decrease in securities purchased under resell agreements - 219,173 Increase in discounts and loans (30,562,426 ) (7,974,800 ) Acquisition of available-for-sale financial assets (75,893,498 ) (49,324,666 ) Proceeds of the sale of available-for-sale financial assets 75,722,340 48,764,316 Acquisition of held-to-maturity financial assets (4,365,905 ) (562,891 ) Return of principal on held-to-maturity financial assets - 901,950 Increase in equity investments under the equity method - (3,455,000 ) Acquisition of debt instruments with no active market (15,184,077 ) (13,812,724 ) Proceeds of the sale of and return of principal on debt instruments with no active market 8,361,762 10,729,488 (Continued)

35 Financial Statement / Designated Foreign Exchange Banks

TAIWAN COOPERATIVE BANK, LTD.

STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2007 AND 2006 (In Thousands of New Taiwan Dollars)

2007 2006

Acquisition of financial assets carried at cost $ - $ (673 ) Proceeds of the sale of financial assets carried at cost 336,484 1,238 Decrease (increase) in other financial assets (439,175 ) 372,345 Acquisition of properties, intangible assets and nonoperating assets (1,339,393 ) (739,555 ) Proceeds of the sale of properties, nonoperating assets and collaterals assumed 1,984,626 2,769,798 Decrease (increase) in other assets 58,946 (17,027 ) Proceeds of the sale of nonperforming loans 8,645,318 13,254,754 Cash and cash equivalents arising from a merger with the Farmers Bank of China - May 1, 2006 - 14,039,052

Net cash provided by (used in) investing activities (76,083,818 ) 176,360,226

CASH FLOWS FROM FINANCING ACTIVITIES Decrease in due to the Central Bank and other banks (12,486,379 ) (53,550,583 ) Decrease in funds borrowed from the Central Bank (821,560 ) (4,061,737 ) Increase in financial liabilities designated at fair value through profit or loss - 1,800,000 Increase (decrease) in securities sold under repurchase agreements (13,910,411 ) 10,846,724 Increase (decrease) in deposits and remittances 61,874,798 (169,789,123 ) Issuance of bank debentures 20,170,000 25,200,000 Decrease in other financial liabilities (333,545 ) (341,695 ) Decrease in other liabilities (4,335 ) (766,066 ) Bonus to employees and remuneration to directors and supervisors (576,979 ) (165,964 ) Cash dividends and appropriation to farmers' associations (3,135,216 ) (771,220 ) Capital increase - 8,585,034

Net cash provided by (used in) financing activities 50,776,373 (183,014,630 )

EFFECTS OF EXCHANGE RATE CHANGES (564,228 ) (386,806 )

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (13,500,127 ) 12,005,368

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 46,000,637 33,995,269

CASH AND CASH EQUIVALENTS, END OF YEAR $ 32,500,510 $ 46,000,637

SUPPLEMENTAL CASH FLOW INFORMATION Interest paid $ 40,898,578 $ 34,120,609 Income tax paid $ 725,022 $ 729,397

PART-CASH INVESTING ACTIVITIES Sales of nonperforming loans - current $ 10,929,032 $ 12,416,059 Receivables from the sale of nonperforming loans (8,743,226 ) (6,459,512 ) Proceeds of the sale of nonperforming loans - previous year 6,459,512 7,298,207 Proceeds of the sale of nonperforming loans $ 8,645,318 $ 13,254,754

NON-CASH INVESTING ACTIVITIES Acquisition of Taiwan Cooperative Bills Finance Corporation by the Bank's creditor's rights to stockholder's rights, resulting in a decrease in receivables and an increase in equity-method investments $ 529,516 $ -

The accompanying notes are an integral part of the financial statements. (With Deloitte & Touche audit report dated February 22, 2008) (Concluded)

36 ANNUAL REPORT

Designated Foreign Exchange Banks

INTERNATIONAL BANKING MINSHENG BRANCH DEPARTMENT No. 126, Minsheng E. Rd, Sec. 3, Taipei City, Taiwan 3rd Fl., No. 325, Jhongsiao E. Rd., Sec. 4, Taipei TEL:+886-2-27181339 FAX:+886-2-27163180 City, Taiwan SWIFT:TACBTWTP093 TEL:+886-2-27400628 ; FAX:+886-2-27512962 Telex:17176 TACBID ; SWIFT:TACBTWTP TAINAN BRANCH No. 48, Chenggong Rd., Tainan City, Taiwan KAOHSIUNG BRANCH TEL:+886-6-2232101 FAX:+886-6-2218356 No. 99, Dayong Rd., Kaohsiung City, Taiwan SWIFT:TACBTWTP030 TEL:+886-7-5514221 ; FAX:+886-7-5321389 SWIFT:TACBTWTP034 JHONGSIAO BRANCH No. 285, Jhongsiao E. Rd., Sec. 4, Taipei City, TAICHUNG BRANCH Taiwan No. 2, Zihyou Rd., Sec 2,Taichung City, Taiwan TEL:+886-2-27718811 FAX:+886-2-27311982 TEL:+886-4-22245121 ; FAX:+886-4-22220112 SWIFT:TACBTWTP045 SWIFT:TACBTWTP022 WUJHOU BRANCH JHONGSHAN LU BRANCH No. 237, Songjiang Rd., Taipei City, Taiwan No. 71, Jhongshan N. Rd., Sec. 2, Taipei City, TEL:+886-2-25077664 FAX:+886-2-25163888 Taiwan SWIFT:TACBTWTPAAA TEL:+886-2-25213211 FAX:+886-2-25232802 SWIFT:TACBTWTP002 DA-AN BRANCH No. 1, Lane 81, Dunhua S. Rd., Sec. 2, Taipei City, BUSINESS DEPARTMENT Taiwan 3rd Fl., No. 77, Kuanchien Rd., Taipei City, Taiwan TEL:+886-2-27553482 FAX:+886-2-27056016 TEL:+886-2-23118811 FAX:+886-2-23885075 SWIFT:TACBTWTP076 SWIFT:TACBTWTP056 SINYI BRANCH CHENGDONG BRANCH No. 172, Sinyi Rd., Sec. 4, Taipei City, Taiwan No. 87, Songjiang Rd., Taipei City, Taiwan TEL:+886-2-27067188 FAX:+886-2-27554862 TEL:+886-2-25070111 FAX:+886-2-25084784 SWIFT:TACBTWTP083 SWIFT:TACBTWTP060 YANPING BRANCH NANJING DONGLU BRANCH No. 301, Nanjing W. Rd., Taipei City, Taiwan No. 98, Nanjing E. Rd., Sec. 1, Taipei City, Taiwan TEL:+886-2-25554111 FAX:+886-2-25567742 TEL:+886-2-25623150 FAX:+886-2-25819592 SWIFT:TACBTWTP004 SWIFT:TACBTWTP041 JHONGHE BRANCH FUSING BRANCH No. 9, Taihe St., Jhonghe City, Taipei County, Taiwan No. 237, Fusing S. Rd., Sec. 1, Taipei City, Taiwan TEL:+886-2-22499500 FAX:+886-2-22462494 TEL:+886-2-27541111 FAX:+886-2-27541118 SWIFT:TACBTWTP062 SWIFT:TACBTWTP091 CHANGHUA BRANCH No. 279, Minsheng Rd., Changhua City, Taiwan TEL:+886-4-7225151 FAX:+886-4-7252183 SWIFT:TACBTWTP023

37 Designated Foreign Exchange Banks

SONGJIANG BRANCH CIANJHEN BRANCH No. 152, Songjiang Rd., Taipei City, Taiwan No. 56, Caoya 1st Rd., Cianjhen District, Kaohsiung TEL:+886-2-25224567 FAX:+886-2-25314172 City, Taiwan, SWIFT:TACBTWTP095 TEL:+886-7-8416491 FAX:+886-7-8414953 SWIFT:TACBTWTPAAB CHIAYI BRANCH No. 279, Guohua St., Chiayi City, Taiwan KAOHSIUNG SCIENCE-BASED PARK TEL:+886-5-2224571 FAX:+886-5-2245297 BRANCH SWIFT:TACBTWTP028 1F, NO.92, Luke 5th Rd., Lujhu Township, Kaohsiung County, Taiwan, TAIPEI BRANCH TEL:+886-7-6955151 FAX:+886-7-6955255 No. 55, Fusing N. Rd., Taipei City, Taiwan SWIFT:TACBTWTP318 TEL:+886-2-27724277 FAX:+886-2-27518019 SWIFT:TACBTWTP054 SHUANGHE BRANCH No. 196, Jian 1st Rd., Jhonghe City, Taipei County, HSINCHU BRANCH Taiwan, No. 23, Jhongjheng Rd., Hsinchu City, Taiwan TEL:+886-2-82271627 FAX:+886-2-82271617 TEL:+886-3-5244151 FAX:+886-3-5225921 SWIFT:TACBTWTP144 SWIFT:TACBTWTP017 ZIHCIANG BRANCH TAOYUAN BRANCH 1~3F, No.85.87, Sec. 2, Nanjing E. Rd., Jhongshan No. 58, Jhongjheng Rd., Taoyuan City, Taiwan District, Taipei City, Taiwan, TEL:+886-3-3326121 FAX:+886-3-3338891 TEL:+886-2-21003100 FAX:+886-2-25314470 SWIFT:TACBTWTP015 SWIFT:TACBTWTP501

BANCIAO BRANCH GANGDU BRANCH No. 20, Wunhua Rd., Sec. 1, Banciao City, Taipei No.230, Jhongjheng 4th Rd., Cianjin District, County, Taiwan Kaohsiung City, Taiwan, TEL:+886-2-29660971 FAX:+886-2-29660936 TEL:+886-7-2914131 FAX:+886-7-2517850 SWIFT:TACBTWTP011 SWIFT:TACBTWTP524

DALI BRANCH SINJHONG BRANCH No.384, Sec. 1,Chung Hsing Road, Dali City, No.91, Mincyuan Rd., West District, Taichung City, Taichung County, Taiwan, Taiwan, TEL:+886-4-24934111 FAX:+886-4-24934125 TEL:+886-4-22237711 FAX:+886-4-22231448 SWIFT:TACBTWTP102 SWIFT:TACBTWTP516

DONG SINJHUANG BRANCH DONG CHIAYI BRANCH No.339, Sihyuan Road, Sinjhuang City, Taipei No.425, Mincyuan Rd., Chiayi City, Taiwan, County, Taiwan, TEL:+886-5-2225281 FAX:+886-5-2231981 TEL:+886-2-29973456 FAX:+886-2-29965856 SWIFT:TACBTWTP584 SWIFT:TACBTWTP098 PINGJHONG BRANCH NEIHU BRANCH 1~3F., No.287, Minsheng Rd., Pingtung City, 1F., No 502, Rueiguang Rd., Neihu District, Taipei Pingtung County, Taiwan, City, Taiwan, TEL:+886-8-7326391 FAX:+886-8-7336594 TEL:+886-2-26590001 FAX:+886-2-26590106 SWIFT:TACBTWTP579 SWIFT:TACBTWTP156

38 ANNUAL REPORT

YUANSIN BRANCH CHENGJHONG BRANCH No.733, Sec. 1 , Jhongshan Rd., Yuanlin Township, No.53, Huaining St., Jhongjheng District, Taipei City, Changhua County, Taiwan, Taiwan, TEL:+886-4-8322741 FAX:+886-4-8358196 TEL:+886-2-23110681 FAX:+886-2-23316711 SWIFT:TACBTWTP560 SWIFT:TACBTWTP504

CHIHKAN BRANCH LISIN BRANCH No.204, Chenggong Rd., North District, Tainan City, 1~3F, No.119, Jhongshan Rd., Jhongli City, Taoyuan Taiwan, County, Taiwan, TEL:+886-6-2201302 FAX:+886-6-2264704 TEL:+886-3-4222131 FAX:+886-3-4253090 SWIFT:TACBTWTP521 SWIFT:TACBTWTP544

DONG TAOYUAN BRANCH NAN SANCHONG BRANCH No.12, Jhonghua Rd., Taoyuan City, No.120, Jhengyi N. Rd., Sanchong City, Taipei Taoyuan County, Taiwan, County, Taiwan, TEL:+886-3-3355009 FAX:+886-3-3365363 TEL:+886-2-29817117 FAX:+886-2-29848861 SWIFT:TACBTWTP543 SWIFT:TACBTWTP532

JHUCIAN BRANCH CISIAN BRANCH No.60, Dongmen St., Hsinchu City, Taiwan, No.216, Cisian 1st Rd., Sinsing District, Kaohsiung TEL:+886-35-215120 FAX:+886-35-250270 City, Taiwan, SWIFT:TACBTWTP563 TEL:+886-7-2365503 FAX:+886-7-2361016 SWIFT:TACBTWTP525 BEI LUODONG BRANCH No.54, Jhongjheng N. Rd., Luodong Township, Yilan WORLD TRADE CENTER BRANCH County, Taiwan, 2F, No.333, Sec. 1, Keelung Rd., Sinyi District, TEL:+886-39-545795 FAX:+886-39-576276 Taipei City, Taiwan, SWIFT:TACBTWTP541 TEL:+886-2-27291333 FAX:+886-2-27576171 SWIFT:TACBTWTP505 FONGJHONG BRANCH No.351, Jhongjheng Rd., Fongyuan City, Taichung RENDE BRANCH County, Taiwan, No.4~8, Sec. 3, Jhongjiheng Rd., Rende Township, TEL:+886-4-25280369 FAX:+886-4-25278825 Tainan County, Taiwan, SWIFT:TACBTWTP554 TEL:+886-6-2794616 FAX:+886-6-2700594 SWIFT:TACBTWTP570 BANSIN BRANCH 1~2F, No.30, Sec. 1, Wunhua Rd., Banciao City, YANJI BRANCH Taipei County, Taiwan, 1~2F, No.376-1, Sec. 4, Ren-ai Rd., Da-an District, TEL:+886-2-22726850 FAX:+886-2-29606365 Taipei City, Taiwan, SWIFT:TACBTWTP531 TEL:+886-2-27069955 FAX:+886-2-27042086 SWIFT:TACBTWTP506 DUNNAN BRANCH No.362, Sec. 1, Dunhua S. Rd., Da-an District, Taipei HSINCHU SCIENCE-BASED INDUSTRIAL City, Taiwan, PARK BRANCH TEL:+886-2-27011117 FAX:+886-2-27075176 1~2F, No.1, Keji Rd., Hsinchu City, Taiwan, SWIFT:TACBTWTP503 TEL:+886-35-783962 FAX:+886-35-781859 SWIFT:TACBTWTP564

39 Designated Foreign Exchange Banks / Service Network

JHONGGANG BRANCH NANKAN BRANCH No.152, Sec. 3, Wunsin Rd., Situn District, Taichung No.11, Nanshang Rd., Lujhu Township, Taoyuan City, Taiwan, County, Taiwan TEL:+886-4-23138811 FAX:+886-4-23136493 TEL:+886-3-3221199 FAX:+886-3-3225477 SWIFT:TACBTWTP517 SWIFT:TACBTWTP545

JHANGHE BRANCH WUCYUAN BRANCH 1~2F, No.246-1, Liancheng Rd., Jhonghe City, Taipei No.61, Sec. 2, Gongyi Rd., Taichung City, Taiwan County, Taiwan, TEL:+886-4-23229191 FAX:+886-4-23200601 TEL:+886-2-22262829 FAX:+886-2-22256481 SWIFT:TACBTWTP069 SWIFT:TACBTWTP534 NANTOU BRANCH BEI SHIHLIN BRANCH No.96, Jhongshan St., Nantou City, Nantou County, 1F, No.837~849, Sec. 5, Jhongshan N. Rd., Shihlin Taiwan District, Taipei City, Taiwan, TEL:+886-49-2234141 FAX:+886-49-2228485 TEL:+886-2-88665959 FAX:+886-2-88665353 SWIFT:TACBTWTP025 SWIFT:TACBTWTP508 TUCHENG BRANCH SHIHCYUAN BRANCH No.96, Sec.2,Jhongyang Rd., Tucheng City, Taipei No.189, Bo-ai 1st Rd., Sanmin District, Kaohsiung County, Taiwan City, Taiwan, TEL:+886-2-22651611 FAX:+886-2-22651667 TEL:+886-7-3230611 FAX:+886-7-3230668 SWIFT:TACBTWTP145 SWIFT:TACBTWTP527 GANGSHAN BRANCH BAOCIAO BRANCH No.2, Siaocian Rd., Gangshan Township, Kaohsiung 1F, No.2, Lane 235, Baociao Rd., Sindian City, County, Taiwan Taipei County, Taiwan, TEL:+886-7-6216161 FAX:+886-7-6216195 TEL:+886-2-29185506 FAX:+886-2-29185512 SWIFT:TACBTWTP033 SWIFT:TACBTWTP535 FONGYUAN BRANCH SINTAI BRANCH No.102, Jhongjheng Rd., Fongyuan City, Taichung No.115, Sintai Rd., Sinjhuang City, Taipei County, County, Taiwan Taiwan, TEL:+886-4-25231122 FAX:+886-4-25272540 TEL:+886-2-29986688 FAX:+886-2-29986633 SWIFT:TACBTWTP020 SWIFT:TACBTWTP536

SIHU BRANCH JHONGSHAN BRANCH 1F, No.206~208, Rueiguang Rd., Neihu District, No.2, Sec. 2, Nanjing E. Rd., Jhongshan District, Taipei City, Taiwan, Taipei City, Taiwan TEL:+886-2-27971989 FAX:+886-2-26581027 TEL:+886-2-25214065 FAX:+886-2-25319567 SWIFT:TACBTWTP510 SWIFT:TACBTWTP502

NAN SIJHIH BRANCH DONG JHUBEI BRANCH 1F, No.94-1, Sec. 1, Sintai 5th Rd., Sijhih City, Taipei No.343, Jhongjheng, E. Rd., Jhubei City, Hsinchu County, Taiwan, County 302, Taiwan TEL:+886-2-26968888 FAX:+886-2-26962222 TEL:+886-3-5540108 FAX:+886-3-5540110 SWIFT:TACBTWTP538 SWIFT:TACBTWTP551

40 ANNUAL REPORT

Service Network

Head Office

77, Kuanchien Road, Jhongcheng District,Taipei 100, Taiwan, Tel:+886-2-23118811; Fax:+886-2-23752954 Web Site http://www.tcb-bank.com.tw

Auditing Division, Board of Directors Electronic Banking Department Tel: +886-2-23118811 Tel: +886-2-23317531

Secretariat, Board of Directors Credit Card Department Tel: +886-2-23118811 Tel: +886-2-23317531

Business Management Department Loan Assets Management Department Tel: +886-2-23118811 Tel: +886-2-23118811

Treasury Department General Affairs Division Tel: +886-2-27312798 Tel: +886-2-23118811

Corporate Banking Department Accounting Division Tel: +886-2-23118811 Tel: +886-2-23118811

Credit Management Department Information Technology Division Tel: +886-2-23118811 Tel: +886-2-27045799

International Banking Department Credit Analysis & Research Division Tel: +886-2-27400628 Tel: +886-2-23118811

Personal Banking Department Human Resource Division Tel: +886-2-23317531 Tel: +886-2-23118811

Trust Department Risk Management Division Tel: +886-2-23118001 Tel: +886-2-23118811

Wealth Management Department Legal Affairs Division Tel: +886-2-23611100 Tel: +886-2-23118811

Securities Department Security Management Division Tel: +886-2-23712798 Tel: +886-2-23118811

Secretariat Tel: +886-2-23118811

41 Service Network

Domestic Units

Offshore Banking Unit ★ Wujhou Branch 6th Fl., No. 325, Jhongsiao E. Rd., Sec. 4, Taipei, No.237, Sungchiang Rd., Taipei, Taiwan Taiwan Tel:+886-2-25077666 Tel: +886-2-27400628 Datong Branch ★ Business Department No.10, Sec. 3, Chengde Rd., Taipei, Taiwan 77, Kuanchien Rd., Taipei, Taiwan, Tel:+886-2-25932323 Tel:+886-2-23118811 Shihpai Branch Taida Branch No.201, Sec. 2, Shihpai Rd., Taipei, Taiwan B1, No.7, Jhongshan S. Rd., Taipei, Taiwan Tel:+886-2-28747611 Tel:+886-2-23568071 ★ Jhongsiao Branch Dunhua Branch No. 285, Sec. 4,Jhongsiao E. Rd., Taipei, Taiwan No.88, Sec. 1, Dunhua S. Rd., Taipei, Taiwan Tel:+886-2-27718811 Tel:+886-2-27769666 Sansing Branch ★ Taipei Branch No. 77, Sec. 2, Keelung Rd., Taipei, Taiwan No.55, Fuhsing N. Rd., Taipei, Taiwan Tel:+886-2-27388181 Tel:+886-2-27724277 Songshan Branch Dadaocheng Branch No. 622, Sec. 4, Bade Rd., Taipei, Taiwan No.67, Sec. 2, Chungking N. Rd., Taipei, Taiwan Tel:+886-2-27656261 Tel:+886-2-25568111 Shihlin Branch ★ Jhongshan Lu Branch No. 282, Chungcheng Rd., Shihlin District, Taipei, No.71, Sec. 2, Jhongshan N. Rd., Taipei, Taiwan Taiwan Tel:+886-2-25213211 Tel:+886-2-28313141

★ Yanping Branch Jingmei Branch No.301, Nanking W. Rd., Taipei, Taiwan No. 457, Sec. 6, Roosevelt Rd., Taipei, Taiwan Tel:+886-2-25554111 Tel:+886-2-29318111

Simen Branch ★ Chengdong Branch No.77, Kunming Street., Taipei, Taiwan No.87, Songjiang Rd., Taipei, Taiwan Tel:+886-2-23814949 Tel:+886-2-25070111

Dongmen Branch ★ Da-an Branch No.208, Sec. 2, Hsinyi Rd., Taipei, Taiwan No.1, Lane 81, Sec.2 Dunhua S. Rd., Taipei, Taiwan Tel:+886-2-23933123 Tel:+886-2-27553482

★ Nanjing Donglu Branch Mincyuan Branch No.98, Sec. 1, Nanjing E. Rd., Taipei, Taiwan No.58, Sec. 3, Mincyuan E. Rd., Taipei, Taiwan Tel:+886-2-25623150 Tel:+886-2-25057011 ★ foreign exchange unit

42 ANNUAL REPORT

Beining Branch Minzu Branch No.16, Sec.4, Nanking E. Rd.,Taipei, Taiwan No.277, Sec.3, Chengde Rd.,Taipei, Taiwan Tel:+886-2-25798811 Tel:+886-2-25962271

Dong Taipei Branch ★ Fusing Branch No.325, Sec. 4, Jhongsiao E. Rd., Taipei, Taiwan No.237, Sec.1, Fusing S. Rd.,Taipei, Taiwan Tel:+886-2-27721234 Tel:+886-2-27541111

Chengnei Branch Shuanglian Branch No.87, Hengyang Rd., Taipei, Taiwan No.113, Minsheng W. Rd.,Taipei, Taiwan Tel:+886-2-23311041 Tel:+886-2-25577151

Jianguo Branch ★ Minsheng Branch No.77, Sec. 3, Sinyi Rd., Taipei, Taiwan No.126, Sec.3, Minsheng E. Rd.,Taipei, Taiwan Tel:+886-2-27027850 Tel:+886-2-27181339

Yuanshan Branch Sinsheng Branch No. 89-4, Sec. 2, Chungshan N. Rd., Taipei, Taiwan No.93, Sec.1, Sinsheng S. Rd.,Taipei, Taiwan Tel:+886-2-25113245 Tel:+886-2-27771888

★ Sinyi Branch ★ Songjiang Branch No.172, Sec. 4, Sinyi Rd., Taipei, Taiwan No.152, Songjiang Rd.,Taipei, Taiwan Tel:+886-2-27067188 Tel:+886-2-25224567

Changchun Branch Yongji Branch No.201, Changchun Rd., Taipei, Taiwan No.279, Songshan Rd., Taipei, Taiwan Tel:+886-2-25035015 Tel:+886-2-27675226

Ren-ai Branch Fudan Branch No.325, Sec. 4, Ren-ai Rd., Taipei, Taiwan No.100, Sec.4, Shihmindadao ,Taipei, Taiwan Tel:+886-2-27763071 Tel:+886-2-27215551

Yucheng Branch ★ Neihu Branch No.815, Sec. 5, Jhongsiao E. Rd., Taipei, Taiwan No.502, Rueiguang Rd., Neihu , Taipei, Taiwan Tel:+886-2-27856060 Tel:+886-2-26590001

Guting Branch Nangang Branch No.65, Sec.1, Hoping E. Rd., Taipei, Taiwan No.19-13, Sanjhong Rd., Nangang , Taipei, Taiwan Tel:+886-2-23949205 Tel:+886-2-26550777

Chang-an Branch ★ Zihciang Branch No.9, Sec.1, Chang-an E. Rd., Taipei, Taiwan No.85, Sec.2, Nanjing E. Rd., Taipei, Taiwan Tel:+886-2-25637181 Tel:+886-2-21003100

Songsing Branch ★ Jhongshan Branch No.202-1, Sec.5, Nanking E. Rd.,Taipei, Taiwan No.2, Sec.2, Nanjing E. Rd., Taipei, Taiwan Tel:+886-2-27643131 Tel:+886-2-25214065

★ foreign exchange unit 43 Service Network

★ Dunnan Branch Gongguan Mini-Branch No.362, Sec.1, Dunhua S. Rd., Taipei, Taiwan No.29, Lane 113, Sec.4, Luosihfu Rd., Taipei, Taiwan Tel:+886-2-27011117 Tel:+886-2-27357457

★ Chengjhong Branch Jhongcin Mini-Branch No.53, Huaining St. Taipei, Taiwan No.360, Sec.6, Jhongsiao E. Rd., Taipei, Taiwan Tel:+886-2-23110681 Tel:+886-2-27857291

★ World Trade Center Branch Jiankang Mini-Branch 2nd Fl., No.333, Sec.1, Jilong Rd., Taipei, Taiwan No.131, Jiankang Rd., Taipei, Taiwan Tel:+886-2-27291333 Tel:+886-2-27627184

★ Yanji Branch Bo-ai Mini-Branch No.376-1, Sec.4, Renai Rd., Taipei, Taiwan No.172-1, Boai Rd., Taipei, Taiwan Tel:+886-2-27069955 Tel:+886-2-23822835

Guangfu South Road Branch Jieshou Mini-Branch No.102, Guangfu S.Rd., Taipei, Taiwan No.164, Boai Rd., Taipei, Taiwan Tel:+886-2-27518770 Tel:+886-2-23710461

★ Bei Shihlin Branch Wunhua Mini-Branch No.837, Sec.5, Jhongshan N. Rd., Taipei, Taiwan No.107, Linsen S. Rd., Taipei, Taiwan Tel:+886-2-88665959 Tel:+886-2-23413261

Sinwei Branch Fusinggang Branch No.303, Sec.1, Fusing S. Rd., Taipei, Taiwan No.70, Sec.2, Jhongyang N. Rd., Taipei, Taiwan Tel:+886-2-27053828 Tel:+886-2-28941534

★ Sihu Branch Bei Yuanshan Branch No.206, Rueiguang Rd., Taipei, Taiwan No.31, Sec.3, Jhongshan N. Rd., Taipei, Taiwan Tel:+886-2-27971989 Tel:+886-2-25971630

Dahu Branch Songbei Branch No.314, Sec.6, Mincyuan E. Rd., Taipei, Taiwan No.174, Sec.2, Minsheng E. Rd., Taipei, Taiwan Tel:+886-2-26328600 Tel:+886-2-25035523

Daciao Branch Ganghu Branch No.136, Mincyuan W. Rd., Taipei, Taiwan No. 223, Jhongyang Rd., Nangang , Taipei, Taiwan Tel:+886-2-25579577 Tel:+886-2-27862268

National Medical Center Branch Jilin Branch No.325, Sec.2, Chenggong Rd., Neihu , Taipei, No.125, Sec.2, Minsheng E. Rd., Taipei, Taiwan Taiwan Tel:+886-2-25633906 Tel:+886-2-87925745 Nanking West Road Branch No.46, Nanking W. Rd., Taipei, Taiwan Tel:+886-2-25523000 ★ foreign exchange unit

44 ANNUAL REPORT

Yonghe Branch ★ Banciao Branch No. 575, Jhongjheng Rd., Yonghe City, Taiwan No.20, Sec.1, Wunhua Rd., Banciao City, Taiwan Tel:+886-2-29236611 Tel:+886-2-29660971

★ Jhonghe Branch Pucian Branch No.9, Taihe St. Jhonghe City, Taiwan 2nd Fl., No.33, Sec.2, Sanmin Rd., Banciao City, Tel:+886-2-22499500 Taiwan Tel:+886-2-29631122 ★ Shuanghe Branch No.196, Jianyi Rd., Jhonghe City, Taiwan ★ Tucheng Branch Tel:+886-2-82271627 No.96, Sec.2, Jhongyang Rd., Tucheng City, Taiwan Tel:+886-2-22651611 Nanshihjiao Branch No.20, Sec.1, Sing S. Rd., Jhonghe City, Taiwan Sijhih Branch Tel:+886-2-29461266 No.225, Jhongsiao E. Rd., Sijhih City, Taiwan Tel:+886-2-26413211 Sindian Branch No.32, Guangming St., Sindian City, Taiwan Sansia Branch Tel:+886-2-29111111 No.61, Wunhua Rd., Sansia Township, Taipei County, Taiwan Liuho Branch Tel:+886-2-26747999 No.2, San Min Rd., Sindian City, Taiwan Tel:+886-2-29172911 Danshuei Branch No.119, Jhongjheng Rd., Danshuei Township, Taipei Sanchong Branch County, Taiwan No.17, Jhengyi S. Rd., Sanchong City, Taiwan Tel:+886-2-26211415 Tel:+886-2-29738111 Erjhong Branch Dong Sanchong Branch No.81, Sec.1, Guangfu Rd., Sanchong City, Taiwan No.37, Sec.2, Sanhe Rd., Sanchong City, Taiwan Tel:+886-2-29993399 Tel:+886-2-29728110 Wugu Branch Bei Sanchong Branch No.2, Sec.1, Jhongsing Rd., Wugu Township, Taipei No.360, Sec.4, Sanhe Rd., Sanchong City, Taiwan County, Taiwan Tel:+886-2-22870432 Tel:+886-2-89769698

Sinjhuang Branch Shulin Branch No.200, Jhongjheng Rd., Sinjhuang City, Taiwan No.152, Sec.1, Jhongshan Rd., Shulin City, Taipei Tel:+886-2-29929981 County, Taiwan Tel:+886-2-86872211 ★ Dong Sinjhuang Branch No.339, Sihyuan Rd., Sinjhuang City, Taiwan Taishan Branch Tel:+886-2-29973456 No.148, Sec. 3, Mingjhih Rd., Taishan Township, Taipei County, Taiwan Haishan Branch Tel:+886-2-29082811 No.443, Sec.2, Wunhua Rd., Banciao City, Taiwan Tel:+886-2-22551333

★ foreign exchange unit

45 Service Network

Bei Sansia Branch Bei Shulin Branch No.71, Wunhua Rd., Sansia Township, Taipei No.793, Jhongjheng Rd., Shulin City, Taipei County, County, Taiwan Taiwan Tel:+886-2-26711110 Tel:+886-2-26762789

★ Bansin Branch Guangwu Mini-Branch No.30, Sec. 1, Wunhua Rd., Banciao City, Taipei No.1, Sec. 3, Jhongjheng Rd., Sansia Township, County, Taiwan Taipei County, Taiwan Tel:+886-2-22726850 Tel:+886-2-26712493

★ Nan Sanchong Branch Wugu Industrial Park Branch No.120, Jhengyi N. Rd., Sanchong City, Taipei No.119, Wugong Rd., Wugu Township, Taipei County, Taiwan County, Taiwan Tel:+886-2-29817117 Tel:+886-2-22989898.

Beisin Branch Dapinglin Branch No.288, Guangming Street, Sindian City, Taipei No.67, Mincyuan Rd., Sindian City, Taipei County, County, Taiwan Taiwan Tel:+886-2-29188321 Tel:+886-2-29138611

★ Jhanghe Branch Sinshu Branch No.246-1, Liancheng Rd., Jhonghe City, Taipei No.224, Sinshu Rd., Sinjhuang City, Taipei County, County, Taiwan Taiwan Tel:+886-2-22262829 Tel:+886-2-22012797

★ Baociao Branch Yingge Branch No.2, Lane 235, Baociao Rd., Sindian City, Taipei No.126, Jianguo Rd, Yingge Township, Taipei County, Taiwan County, Taiwan Tel:+886-2-29185506 Tel:+886-2-86781188

★ Sintai Branch Luzhou Branch No.115, Sintai Rd., Sinjhuang City, Taipei County, No.222-6, Jixian Rd, Luzhou City, Taipei County, Taiwan Taiwan Tel:+886-2-29986688 Tel:+886-2-22839988

Bei Tucheng Branch Lide Branch No.200, Sec. 1, Syuefu Rd., Tucheng City, Taipei No.105, Lide St., Jhonghe City, Taipei County,Taiwan County, Taiwan Tel:+886-2-82282121 Tel:+886-2-22731688 Keelung Branch ★ Nan Sijhih Branch No.255, Ren-er Rd., Keelung City, Taiwan No.94-1, Sec. 1, Sintai 5th. Rd., Sijhih City, Taipei Tel:+886-2-24284181 County, Taiwan Tel:+886-2-26968888 Heping Branch No.389, Jhongjheng Rd., Keelung City, Taiwan Tel:+886-2-24622155

★ foreign exchange unit

46 ANNUAL REPORT

Dong Keelung Branch Jhongli Branch No.143, Shihsin 1st. Rd., Keelung City, Taiwan No.180, Jhongshan Rd., Jhongli City, Taoyuan Tel:+886-2-24283111 County, Taiwan Tel:+886-3-4225141 Yilan Branch No.30, Sec. 3, Jhongshan Rd., Yilan City, Taiwan Longtan Branch Tel:+886-3-9323911 No.221, Jhongjheng Rd., Longtan Township, Taoyuan County, Taiwan Luodong Branch Tel:+886-3-4893512 No.51, Gongjheng Rd., Luodong Township, Yilan County, Taiwan Jhongyuan Branch Tel:+886-3-9545191 No.392, Sec. 2, Jhongbei Rd., Jhongli City, Taoyuan County, Taiwan Su-ao Branch Tel:+886-3-4688998 No.56, Yugang Rd., Su-ao Township, Yilan County, Taiwan Hueilong Branch Tel:+886-3-9962521 No.163, Sec. 1, Wanshou Rd., Gueishan Township, Taoyuan County, Taiwan ★ Bei Luodong Branch Tel:+886-3-82098266 No.54, Jhongjheng N. Rd., Luodong Township, Yilan County, Taiwan Nan Taoyuan Branch Tel:+886-3-9545795 No.845, Jhongshan Rd., Taoyuan City, Taiwan Tel:+886-3-3692188 Jiaosi Branch No.32, Sec. 5, Jiaosi Rd., Jiaosi Township, Yilan Pingjhen Branch County, Taiwan No.290, Sec. 2, Huannan Rd., Pingjhen City, Taoyuan Tel:+886-3-9887100 County, Taiwan Tel:+886-3-4689299 ★ Taoyuan Branch No.58, Jhongjheng Rd., Taoyuan City, Taiwan Linkou Branch Tel:+886-3-3326121 No.49, Wunhua 2nd. Rd., Gueishan Township, Taoyuan County, Taiwan Cihwun Branch Tel:+886-3-3183880 No.720, Jhongjheng Rd., Taoyuan City, Taiwan Tel:+886-3-3578811 ★ Dong Taoyuan Branch No.12, Jhonghua Rd., Taoyuan City, Taiwan Dasi Branch Tel:+886-3-3355009 No.43, Sinyi Rd., Dasi Township, Taoyuan County, Taiwan ★ Lisin Branch Tel:+886-3-3874666 No.119, Jhongshan Rd., Jhongli City, Taoyuan County, Taiwan Gueishan Branch Tel:+886-3-4222131 No.1068, Sec. 2, Wanshou Rd., Gueishan Township, Taoyuan County, Taiwan. ★ Nankan Branch Tel:+886-3-3299661 No.11, Nanshang Rd., Lujhu Township, Taoyuan County, Taiwan Tel:+886-3-3221199 ★ foreign exchange unit

47 Service Network

Dahan Branch Jingguo Branch No.97, Cihhu Rd., Dasi Township, Taoyuan County, No.71, Zihyou Rd., Hsinchu City, Taiwan Taiwan Tel:+886-3-5311966 Tel:+886-3-3885696 Jhudong Branch Sinming Branch No.92, Sec. 2, Changchun Rd., Jhudong Township, No.366, Jhongjheng Rd., Jhongli City, Taoyuan Hsinchu County, Taiwan County, Taiwan Tel:+886-3-5963126 Tel:+886-3-4939393 Jhubei Branch Yangmei Branch No.261, Guangming 6th. Rd., Jhubei City, Hsinchu No.197, Sec. 2, Jhongshan N. Rd., Yangmei County, Taiwan Township, Taoyuan County, Taiwan Tel:+886-3-5546000 Tel:+886-3-4313838 Dong Jhudong Branch Long-An Branch No.9, Donglin Rd., Jhudong Township, Hsinchu No.140, Long-an Street, Taoyuan City, Taiwan County, Taiwan Tel:+886-3-3789988 Tel:+886-3-5942751

Bade Branch ★ Dong Jhubei Branch No.767, Sec. 1, Jieshou Rd., Bade City, Taoyuan No.343, Jhongjheng E. Rd., Jhubei City, Hsinchu County, Taiwan County, Taiwan Tel:+886-3-2185888 Tel:+886-3-5540108

Dacheng Branch Lioujia Branch No.221, Dacheng Rd., Yangmei Township, Taoyuan No.259, East Sec. 1, Guangming 6th. Rd., Jhubei County, Taiwan City, Hsinchu County, Taiwan Tel:+886-3-2888890 Tel:+886-3-6586969

★ Hsinchu Branch Miaoli Branch No.23, Jhongjheng Rd., Hsinchu City, Taiwan No.660, Jhongjheng Rd., Miaoli City, Taiwan Tel:+886-3-5244151 Tel:+886-37-320921 Bei Hsinchu Branch Toufen Branch No.168, Beida Rd., Hsinchu City, Taiwan Tel:+886-3-5284001 No.70, Ren-ai Rd., Toufen Township, Miaoli County, Taiwan Guangfu Branch Tel:+886-37-665115 No.57, Dongguang Rd., Hsinchu City, Taiwan Bei Miaoli Branch Tel:+886-3-5753666 No.396, Jhongjheng Rd., Miaoli City, Taiwan ★ Jhucian Branch Tel:+886-37-351111 No.60, Dongmen Street, Hsinchu City, Taiwan Tel:+886-3-5215121 Dong Toufen Branch No.107, Jhongjheng Rd., Toufen Township, Miaoli ★ Hsinchu Science-Based Industrial Park Branch County, Taiwan No.1, Keji Rd., Hsinchu City, Taiwan Tel:+886-37-671818 Tel:+886-3-5783962 ★ foreign exchange unit

48 ANNUAL REPORT

★ Fongyuan Branch Pinglin Mini-Branch No.102, Jhongjheng Rd., Fongyuan City, Taiwan No.348, Sec. 2, Jhongshan Rd., Taiping City, Tel:+886-4-25231122 Taichung County, Taiwan Tel:+886-4-23930519 Nan Fongyuan Branch No.138, Yuanhuan S. Rd., Fongyuan City, Taiwan Cingcyuangang Mini-Branch Tel:+886-4-25244180 No.600, Sec. 4, Jhongcing Rd., Daya Township, Taichung County, Taiwan Shalu Branch Tel:+886-4-25610514 No.106, Shatian Rd., Shalu Township, Taichung County, Taiwan Daya Branch Tel:+886-4-26622141 No.95, Sec. 2, Yahuan Rd., Daya Township, Taichung County, Taiwan ★ Dali Branch Tel:+886-4-25660199 No.384, Sec. 1, Jhongsing Rd., Dali City, Taichung County,Taiwan ★ Taichung Branch Tel:+886-4-24934111 No.2, Sec. 2, Zihyou Rd., Taichung City, Taiwan Tel:+886-4-22245121 Taiping Branch No.84, Jhongsing Rd., Taiping City, Taichung Jhongsing Branch County,Taiwan No.5, Gongyuan Rd., Taichung City, Taiwan Tel:+886-4-22761515 Tel:+886-4-22241161

Wurih Branch ★ Wucyuan Branch No.598, Sec. 1, Jhongshan Rd., Wurih Township, No.61, Sec. 2, Gongyi Rd., Taichung City, Taiwan Taichung County, Taiwan Tel:+886-4-23229191 Tel:+886-4-23369911 Situn Branch Shengang Branch No.67, Sec. 3, Wunsin Rd., Taichung City, Taiwan No.35, Shencing Rd., Shengang Village, Shengang Tel:+886-4-23112411 Township, Taichung County, Taiwan Tel:+886-4-25621111 Beitun Branch No.670, Sec. 4, Wunsin Rd., Taichung City, Taiwan ★ Fongjhong Branch Tel:+886-4-22301199 No.351, Jhongjheng Rd., Fongyuan City, Taiwan Tel:+886-4-25280369 Nan Taichung Branch No.789, Jhongming S. Rd., Taichung City, Taiwan Bei Dali Branch Tel:+886-4-22617211 No.261, Sec. 2, Sinren Rd., Dali City, Taichung County, Taiwan Nantun Branch Tel:+886-4-24836699 No.103, Sec. 2, Wucyuan W. Rd., Taichung City, Taiwan Dong Shalu Branch Tel:+886-4-24752171 No.26, Rihsin Street, Shalu Township, Taichung County, Taiwan Si Taichung Branch Tel:+886-4-26653311 No.151, Sec. 2, Hankou Rd., Taichung City, Taiwan Tel:+886-4-23170311

★ foreign exchange unit

49 Service Network

Bei Taichung Branch Meichun Branch No.375, Wucyuan Rd., Taichung City, Taiwan No.188, Sec. 2, Meichun Rd., Taichung City, Taiwan Tel:+886-4-22055588 Tel:+886-4-22614377

Jyungong Branch Liming Branch No.315, Sec.1, Dongshan Rd., Taichung City, Taiwan No.1064, Sec. 1, Liming Rd., Taichung City, Taiwan Tel:+886-4-22390128 Tel:+886-4-23892493

Yong-An Branch Changping Branch No.15, Yung Fu Rd., Taichung City, Taiwan No.163, Sec. 1, Changping Rd., Taichung City, Tel:+886-4-24623181 Taiwan Tel:+886-4-22443037 Jhongcyuan Branch No.478, Jhongjheng Rd., Taichung City, Taiwan Jingwu Branch Tel:+886-4-22037979 No.170, Jingwu E. Rd., Taichung City, Taiwan Tel:+886-4-22116358 Taiyuan Branch No.247, Beitun Rd., Taichung City, Taiwan Wunsin Branch Tel:+886-4-22334291 No.316, Sec. 1, Wunsin Rd., Taichung City, Taiwan Tel:+886-4-23223300 Songjhu Branch No.95, Sec.2, Changping Rd., Taichung City, Taiwan ★ Sinjhong Branch Tel:+886-4-24228751 No.91, Mincyuan Rd., Taichung City, Taiwan Tel:+886-4-22237711 Jinhua Branch No.328, Jinhua Rd., Taichung City, Taiwan ★ Jhonggang Branch Tel:+886-4-23609617 No.152, Sec.3, Wunsin Rd., Taichung City, Taiwan Tel:+886-4-23138811 Jhongcing Branch No.7, Jhongcing Rd., Taichung City, Taiwan Weidao Branch Tel:+886-4-22913176 No.337, Daya Rd., Taichung City, Taiwan Tel:+886-4-22987988 Jiancheng Branch No.1499, Jiancheng Rd., Taichung City, Taiwan Jhongming South Road Branch Tel:+886-4-22873311 No.451, Jhongming S. Rd., Taichung City, Taiwan Tel:+886-4-23764066 Chaoma Branch No.122-17, Sec. 2, Jhonggang Rd., Taichung City, Shueinan Mini-Branch Taiwan No.111, Lane 68, Fusing N. Rd., Taichung City, Tel:+886-4-27013115 Taiwan Tel:+886-4-27029354 Dong Taichung Branch No.380, Sec. 3, Fusing Rd., Taichung City, Taiwan Fongjia Branch Tel:+886-4-22203161 No.252, Sec.2 Situn Rd., Taichung City, Taiwan Tel:+886-4-27089075

★ foreign exchange unit

50 ANNUAL REPORT

★ Nantou Branch Hemei Branch No.96, Jhongshan Street, Nantou City, Taiwan No.361, Sec. 6, Luhe Rd., Hemei Township, Tel:+886-49-2234141 Changhua County, Taiwan Tel:+886-4-7570123 Jhushan Branch No.839, Sec. 3, Jishan Rd., Jhushan Township, Sihu Branch Nantou county, Taiwan No.56, Sihuan Rd., Sihu Township, Changhua Tel:+886-49-2652721 County, Taiwan Tel:+886-4-8829121 Puli Branch No.299, Sec. 2, Jhongshan Rd., Puli Township, Yuanlin Branch Nantou county, Taiwan No.844, Sec. 1, Jhongshan Rd., Yuanlin Township, Tel:+886-49-2986411 Changhua County, Taiwan Tel:+886-4-8322181 Caotun Branch No.864, Jhongjheng Rd., Caotun Township, Nantou Jhangjhong Branch county, Taiwan No.345, Sec. 1, Jhongshan Rd., Changhua City, Tel:+886-49-2338141 Taiwan Tel:+886-4-7251161 Jiji Branch No.176, Minsheng Rd., Jiji Township, Nantou Dajhu Branch county, Taiwan No.208, Sec. 2, Jhangnan Rd., Changhua City, Tel:+886-49-2761501 Taiwan Tel:+886-4-7373311 Dong Puli Branch No.320, Jhongjheng Rd., Puli Township, Nantou Shengang Branch county, Taiwan No.35, Sinsing Rd., Shengang Township, Changhua Tel:+886-49-2989160 county, Taiwan Tel:+886-4-7996922 Yuegang Mini-Branch No.15, Longcyuan Lane, Tianliao Village, Jiji ★ Yuansin Branch Township, Nantou county, Taiwan No.733, Sec. 1, Jhongshan Rd., Yuanlin Township, Tel:+886-49-2781414 Changhua county, Taiwan Tel:+886-4-8322741 ★ Changhua Branch No.279, Minsheng Rd., Changhua City, Taiwan Nan Changhua Branch Tel:+886-4-7225151 No.43, Siaoyang Rd., Changhua City, Taiwan Tel:+886-4-7254611 Jhangying Branch No.532, Minzu Rd., Changhua City, Taiwan Beidou Branch Tel:+886-4-7229221 No.168, Jhongjheng Rd., Beidou Township, Changhua county, Taiwan Jhangchu Branch Tel:+886-4-8880181 No.321, Sec. 1, Jhongjheng Rd., Changhua City, Taiwan Tel:+886-4-7240082

★ foreign exchange unit

51 Service Network

Lugang Branch ★ Dong Chiayi Branch No.120, Minzu Rd., Lugang Township, Changhua No.425, Mincyuan Rd., Chiayi City, Taiwan county, Taiwan Tel:+886-5-2225281 Tel:+886-4-7788511 Puzih Branch Douliou Branch No.62, Haitong Rd., Puzih City, Chiayi County, No.3, Datong Rd., Douliou City, Yunlin county, Taiwan Taiwan Tel:+886-5-3794171 Tel:+886-5-5323981 Bei Puzih Branch Beigang Branch No.3, Wunhua N. Rd., Puzih City, Chiayi County, No.53, Yimin Rd., Beigang Township, Yunlin county, Taiwan Taiwan Tel:+886-5-3790808 Tel:+886-5-7836136 ★ Tainan Branch Huwei Branch No.48, Chenggong Rd., Tainan City, Taiwan No.15, Jhongjheng Rd., Huwei Township, Yunlin Tel:+886-6-2232101 county, Taiwan Tel:+886-5-6313821 Bei Tainan Branch No.159, Sec. 3, Simen Rd., Tainan City, Taiwan Linnei Branch Tel:+886-6-2209211 No.21, Jhongsi Rd., Linjhong Village, Linnei Township, Yunlin county, Taiwan Chenggong Branch Tel:+886-5-5897811 No.97, Sec. 1, Beimen Rd., Tainan City, Taiwan Tel:+886-6-2269161 Yunlin Branch No.223, Minsheng Rd., Douliou City, Yunlin county, Nansing Branch Taiwan No.72, Sec. 2, Minsheng Rd., Tainan City, Taiwan Tel:+886-5-5324811 Tel:+886-6-2221291

Nan Huwei Branch Chengda Branch No.67, Sinyi Rd., Huwei Township, Yunlin county, No.138, Shengli Rd., Tainan City, Taiwan Taiwan Tel:+886-6-3028001 Tel:+886-5-6328851 Dong Tainan Branch ★ Chiayi Branch No.197, Sec. 2, Jhonghua E. Rd., Tainan City, Taiwan No.279, Guohua Street, Chiayi City, Taiwan Tel:+886-6-2882211 Tel:+886-5-2224571 ★ Chihkan Branch Bei Chiayi Branch No.204, Chenggong Rd., Tainan City, Taiwan No.3, De-an Rd., Chiayi City, Taiwan Tel:+886-6-2201302 Tel:+886-5-2815500 Fucheng Branch Nan Chiayi Branch No.380, Sec. 2, Jiankang Rd., Tainan City, Taiwan No.746, Minzu Rd., Chiayi City, Taiwan Tel:+886-6-2910896 Tel:+886-5-2286311

★ foreign exchange unit

52 ANNUAL REPORT

Kaiyuan Branch ★ Cianjhen Branch No.147, Kaiyuan Rd., Tainan City, Taiwan No.56, Caoya 1st. Rd., Kaohsiung City, Taiwan Tel:+886-6-2753345 Tel:+886-7-8416491

Bei-An Branch Nan Kaohsiung Branch No.210, Sec.1 Bei-An Rd., Tainan City, Taiwan No.94, Sanduo 3rd. Rd., Kaohsiung City, Taiwan Tel:+886-6-2526718 Tel:+886-7-3348141

Sinying Branch Sinsing Branch No.115, Jhongshan Rd., Sinying City, Tainan County, No.110, Cisian 2nd. Rd., Kaohsiung City, Taiwan Taiwan Tel:+886-7-2887121 Tel:+886-6-6324121 Siande Branch Jiali Branch No.182, Gongjheng Rd., Kaohsiung City, Taiwan No.83, Hoping Street, Jiali Township, Tainan County, Tel:+886-7-7112046 Taiwan Tel:+886-6-7223131 Dong Kaohsiung Branch No.2, Jhongjheng 3rd. Rd., Kaohsiung City, Taiwan Yongkang Branch Tel:+886-7-2366431 No.357, Jhonghua Rd., Yongkang City, Tainan County, Taiwan Guanghua Branch Tel:+886-6-2316971 No.148-82, Guanghua 1st. Rd., Kaohsiung City, Taiwan Bei Sinying Branch Tel:+886-7-2223020 No.360, Ming Chih Rd., Sinying City, Tainan County, Taiwan Bei Kaohsiung Branch Tel:+886-6-6562718 No.232, Jhonghua 3rd. Rd., Kaohsiung City, Taiwan Tel:+886-7-2863000 ★ Rende Branch No.4, Sec. 3, Jhongjheng Rd., Rende Township, Lingya Branch Tainan County, Taiwan No.394, Cingnian 1st. Rd., Kaohsiung City, Taiwan Tel:+886-6-2794616 Tel:+886-7-2918151

Nan Yongkang Branch Sanmin Branch No.202, Jhonghua Rd., Yongkang City, Tainan No.30, Bo-ai 1st. Rd., Kaohsiung City, Taiwan County, Taiwan Tel:+886-7-3127191 Tel:+886-6-3121916 Wannei Branch Sinshih Branch No.675, Jiangong Rd., Kaohsiung City, Taiwan No.321-2, Jhongjheng Rd., Sinshih Township, Tainan Tel:+886-7-3861591 County, Taiwan Tel:+886-6-5999111 Cianjin Branch No.45, Jhonghua 4th. Rd., Kaohsiung City, Taiwan ★ Kaohsiung Branch Tel:+886-7-3363966 No.99, Dayong Rd., Kaohsiung City, Taiwan Tel:+886-7-5514221

★ foreign exchange unit

53 Service Network

Tashun Branch Kaohsiung Branch No.20, Tashun 3rd. Rd., Kaohsiung City, Taiwan No.352, Zhonghua 1st. Rd., Kaohsiung City, Taiwan Tel:+886-7-7131886 Tel:+886-7-5223311

Yisin Lu Branch ★ Gangshan Branch No.119, Yisin 2nd. Rd., Kaohsiung City, Taiwan No.2, Siaocian Rd., Gangshan Township, Kaohsiung Tel:+886-7-3332020 County, Taiwan Tel:+886-7-6216161 Zuoying Branch No.580, Bo-ai 2nd. Rd., Kaohsiung City, Taiwan Lujhu Branch Tel:+886-7-5562226 No.682, Jhongshan Rd., Lujhu Township, Kaohsiung County, Taiwan ★ Gangdu Branch Tel:+886-7-6966122 No.230, Jhongjheng 4th. Rd., Kaohsiung City, Taiwan Fongshan Branch Tel:+886-7-2914131 No.95, Jhongcheng Rd., Fongshan City, Kaohsiung County, Taiwan ★ Cisian Branch Tel:+886-7-7460181 No.216, Cisian 1st. Rd., Kaohsiung City, Taiwan Tel:+886-7-2265503 Wujia Branch No.164, Wujia 2nd. Rd., Fongshan City, Kaohsiung Dagangpu Branch County, Taiwan No.176, Minsheng 1st. Rd., Kaohsiung City, Taiwan Tel:+886-7-7172250 Tel:+886-7-2265666 Singfong Branch ★ Shihcyuan Branch No.32, Jhongshan Rd., Fongshan City, Kaohsiung No.189, Bo-ai 1st. Rd., Kaohsiung City, Taiwan County, Taiwan Tel:+886-7-3230611 Tel:+886-7-7453101

Jiouru Branch Dafa Branch No.581, Jyuemin Rd., Kaohsiung City, Taiwan No.345, Fonglin 3rd Rd., Daliao Township, Tel:+886-7-3805001 Kaohsiung County, Taiwan Tel:+886-7-7830589 Siaogang Branch No.526, Hongping Rd., Kaohsiung City, Taiwan Fongsong Branch Tel:+886-7-8062289 No.3-4, Fongsong Rd., Fongshan City, Kaohsiung County, Taiwan Jhongjheng Mini-Branch Tel:+886-7-7471131 No.2, Jhongjheng 1st. Rd., Kaohsiung City, Taiwan Tel:+886-7-7498998 Bei Gangshan Branch No.12, Jhongshan N. Rd., Gangshan Township, Singhe Mini-Branch Kaohsiung County, Taiwan No.98, Jhongshan 3rd. Rd., Kaohsiung City, Taiwan Tel:+886-7-6222871 Tel:+886-7-3308565

★ foreign exchange unit

54 ANNUAL REPORT

Meinong Branch Linyuan Branch No.43, Sec. 1, Jhongcheng Rd., Meinong Township, No.200, Linyuan N. Rd., Linyuan Township, Kaohsiung County, Taiwan Kaohsiung County, Taiwan Tel:+886-7-6816101 Tel:+886-7-6416171

Dashu Branch Pingtung Branch No.2-8, Jhongsing E. Rd., Dashu Township, No.42, Jhongcheng Rd., Pingtung City, Taiwan Kaohsiung County, Taiwan Tel:+886-8-7343611 Tel:+886-7-6517726 Pingnan Branch Liouguei Branch No.255, Mingsheng Rd., Pingnan City, Taiwan No.107, Kangfu Rd., Yibao Village, Liouguei Tel:+886-8-7665511 Township, Kaohsiung County, Taiwan. Tel:+886-7-6892113 Chaojhou Branch No.91-1, Sinsheng Rd., Chaojhou Township, Neimen Branch Pingtung County, Taiwan No.148, Nanping Rd. Guanting Village, Neimen Tel:+886-8-7883101 Township, Kaohsiung County, Taiwan Tel:+886-7-6672322 ★ Pingjhong Branch No.287, Mingsheng Rd., Pingtung City, Taiwan Gouping Mini-Branch Tel:+886-8-7326391 No.11-1, Dingjhuang, Yongsing Village, Neimen Township, Kaohsiung County, Taiwan Bei Chaojhou Branch Tel:+886-7-6601607 No.112, Sinsheng Rd., Chaojhou Township, Pingtung County, Taiwan Renmei Branch Tel:+886-8-7891636 No.87-2, Syuetang Rd., Renmei Village, Niaosong Township, Kaohsiung County, Taiwan Donggang Branch Tel:+886-7-7321370 No.186, Sec. 1, Guangfu Rd., Donggang Township, Pingtung County, Taiwan Dahua Mini-Branch Tel:+886-8-8353701 No.12-3, Benguan Rd., Dahua Village, Niaosong Township, Kaohsiung County, Taiwan Wandan Branch Tel:+886-7-3707332 No.661, Sec. 2, Jhongsing Rd., Wanhuei Village, Wandan Township, Pingtung County, Taiwan ★ Kaohsiung Science-Based Park Branch Tel:+886-8-7779311 No.92, Luke 5th. Rd., Lujhu Township, Kaohsiung County, Taiwan Siahan Office Tel:+886-7-6955151 No.103-4, Sianan Village, Wandan Township, Pingtung County, Taiwan Dashe Branch Tel:+886-8-7072407 No.177-1, Cha-Pin Rd., Dashe Township, Kaohsiung County, Taiwan Fangliao Branch Tel:+886-7-3582121 No.3-1, Fude Rd., Tianshih Village, Fangliao Township, Pingtung County, Taiwan Tel:+886-8-8717871

★ foreign exchange unit

55 Service Network

Shepi Mini-Branch Taitung Branch No.43-1, Shekou Village, Wandan Township, No.336, Sec. 1, Jhonghua Rd., Taitung City, Taiwan Pingtung County, Taiwan Tel:+886-89-323011 Tel:+886-8-7071578 Dong Taitung Branch Wansin Mini-Branch No.181, Datong Rd., Taitung City, Taiwan No.530, Wansin Rd., Sinjhuang Village, Wandan Tel:+886-89-325130 Township, Pingtung County, Taiwan Tel:+886-8-7772056 Penghu Branch No.26, Ren-ai Rd., Magong City, Taiwan Hualien Branch Tel:+886-6-9272767 No.124, Jhongshan Rd., Hualien City, Taiwan Tel:+886-3-8338111 Magong Branch No.21, Sinming Rd., Magong City, Taiwan Bei Hualien Branch Tel:+886-6-9263141 No.371, Jhongshan Rd., Hualien City, Taiwan Tel:+886-3-8350151

Overseas Units United Taiwan Bank Seattle Branch 7 th Floor, Boulevard du Regent 45/46 1201, Third Ave., Suite 1200, 1000 Brussels, Belgium Washington Mutual Tower, Seattle, Tel:+322-2305359 WA 98101 U.S.A. Fax:+322-2300470 Tel: +1-206-5872300 E-mail: [email protected] Fax: +1-206-6224491 E-mail: [email protected] Manila Offshore Banking Branch 26th Floor, Citibank Tower, Hong Kong Branch 8741 Paseo de Roxas, Makati, 13th Floor, Dah Sing Financial Centre, Metro Manila, The Philippines 108 Gloucester Rd., Wanchai, H.K. Tel:+632-8481959 Tel:+852-25981128 Fax:+632-8481952 Fax:+852-25981028 E-mail: [email protected] E-mail: [email protected]

Los Angeles Branch Beijing Representative Office 601, South Figueroa St. Suite 3500, Room 1805, Office Tower 1, Henderson Centre, 18, Los Angeles, CA 90017 U.S.A. Jianguomen Nei Avenue, Beijing China P.C.100005 Tel:+1-213-4895433 Tel:+86-10-65188173/74/75 Fax:+1-213-4895195 Fax:+86-10-65188172 E-mail:[email protected] E-mail: [email protected]

56 Spokesperson:

Tien Lin / Kuan-Young Huang Executive Vice President / Senior Vice President & General Manager TEL : +886-2-23118811 Ext.210 / +886-2-23118811 Ext.216 E-mail: [email protected] / [email protected] Stock No: 5854 Stock SINCE 1946 BANK TAIWAN TAIWAN COOPERATIVE COOPERATIVE

77, KUANCHIEN ROAD, TAIPEI 77, KUANCHIEN ROAD, REPUBLIC OF CHINA TAIWAN, TEL: +886-2-2311-8811 +886-2-2375-2954 FAX: http://www.tcb-bank.com.tw BANK TAIWAN COOPERATIVE