79F9d933-1Baa-4D61-84Ce-683709D8ebac Worldreginfo - 79F9d933-1Baa-4D61-84Ce-683709D8ebac 04 Words from the Chairman
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WorldReginfo - 79f9d933-1baa-4d61-84ce-683709d8ebac WorldReginfo - 79f9d933-1baa-4d61-84ce-683709d8ebac 04 Words from the Chairman 08 SKFH Overview 18 2009 Operation Review 28 2010 Business Plan 38 Giving Back to Society 44 Financial Highlights 2 3 WorldReginfo - 79f9d933-1baa-4d61-84ce-683709d8ebac 04 Words from the Chairman 08 SKFH Overview 18 2009 Operation Review 28 2010 Business Plan 38 Giving Back to Society 44 Financial Highlights 2 3 WorldReginfo - 79f9d933-1baa-4d61-84ce-683709d8ebac Words from the Chairman Driven by loose monetary policies and economic by NT$1.1 billion or 7.5% compared to 2008 driven by various stimulation packages worldwide, 2009 saw the global economy cost reduction measures. The company returned to profitability gradually shaking off the shadows of the financial crisis. in 2009 with after-tax profit of NT$105.7 million. Emerging markets in particular have shown a strong recovery, Shin Kong Bank’s loan strategy balances both income and leading the global economy on its way to recuperation. Taiwan’s risk considerations. Outstanding loans in 2009 was $287.0 economy has benefited from China’s high economic growth, as billion, similar to the figure for 2008. NPL ratio decreased to business orders gradually stabilize and the domestic stock 1.42% while coverage ratio was high at 75.37%, indicating market rises by almost 80%. In 2010, international economy strong risk management. Bad debts expense for 2009 has fallen continues to recover, corporate profitability grows, and 11.9% in comparison to 2008, and quality of asset is sound. consumption power of the general public gradually revives. The Wealth management has also shown signs of recovery as the Directorate General of Budget, Accounting and Statistics securities market recovers; fee income reached NT$670.1 estimates an economic growth rate of 4.72%. Relaxation of million in 2009, a growth of 23.6% compared to 2008. In order to cross-strait financial policies has brought opportunities for the reduce funding cost, the company is actively developing cash banking industry. Every financial institution is searching for management business and increasing savings deposits for opportunities in China. Shin Kong Financial Holding Co., Ltd. securities settlements. As a result, the proportion of savings (SKFH) will also be proactively exploiting this trend. deposits was successfully increased from 31.6% to 42.3%. The bank is also continuing to adjust the number and locations of its Gradual Stabilization of Operations branches, so as to fully achieve the potential of each branch. SKFH has gotten back on track to achieve its budgetary The business model that Shin Kong Bank worked hard to targets after implementing a series of capital strengthening and establish bore fruit and produced after-tax profit of NT$560.3 risk management programs. Consolidated net profit after tax in million in 2009. We expect the bank to continue to generate 2009 was NT$1.13 billion, with profit per share of NT$0.17. steady profits in the future. Consolidated total assets reached NT$1.90 trillion, showing a Due to the dramatic rebound of the equity market during growth of 9.3%. the latter half of 2009, trading volume has also increased; Shin The sales strategy of Shin Kong Life no longer focuses Kong’s securities subsidiaries have shown excellent only on growth of premium income; in order to pursue performance in equity brokerage and proprietary trading. Shin profitability and sustainability, the company has put more Kong Securities and MasterLink Securities together contributed emphasis on value of new business. Despite a decline of 24.1% NT$538.0 million to profitability of SKFH. In order to accelerate in first year premium to NT$68.2 billion, sales of high value the integration of securities resources and enhance capital traditional products grew 121.7%, representing 37.9% of all first efficiency, SKFH implemented the merger of Shin Kong year premium income. New business value grew in comparison Securities and MasterLink Securities in 2009, under which to 2008. Net worth of the company also dramatically increased operations of Shin Kong Securities are transferred to by 130.2%, due to recovery of the stock market as well as MasterLink Securities. MasterLink Securities is one of Taiwan’s capital injection from SKFH. In addition, operating expense fell top 10 securities brokers, with 44 branches and a strong 4 5 WorldReginfo - 79f9d933-1baa-4d61-84ce-683709d8ebac Words from the Chairman Driven by loose monetary policies and economic by NT$1.1 billion or 7.5% compared to 2008 driven by various stimulation packages worldwide, 2009 saw the global economy cost reduction measures. The company returned to profitability gradually shaking off the shadows of the financial crisis. in 2009 with after-tax profit of NT$105.7 million. Emerging markets in particular have shown a strong recovery, Shin Kong Bank’s loan strategy balances both income and leading the global economy on its way to recuperation. Taiwan’s risk considerations. Outstanding loans in 2009 was $287.0 economy has benefited from China’s high economic growth, as billion, similar to the figure for 2008. NPL ratio decreased to business orders gradually stabilize and the domestic stock 1.42% while coverage ratio was high at 75.37%, indicating market rises by almost 80%. In 2010, international economy strong risk management. Bad debts expense for 2009 has fallen continues to recover, corporate profitability grows, and 11.9% in comparison to 2008, and quality of asset is sound. consumption power of the general public gradually revives. The Wealth management has also shown signs of recovery as the Directorate General of Budget, Accounting and Statistics securities market recovers; fee income reached NT$670.1 estimates an economic growth rate of 4.72%. Relaxation of million in 2009, a growth of 23.6% compared to 2008. In order to cross-strait financial policies has brought opportunities for the reduce funding cost, the company is actively developing cash banking industry. Every financial institution is searching for management business and increasing savings deposits for opportunities in China. Shin Kong Financial Holding Co., Ltd. securities settlements. As a result, the proportion of savings (SKFH) will also be proactively exploiting this trend. deposits was successfully increased from 31.6% to 42.3%. The bank is also continuing to adjust the number and locations of its Gradual Stabilization of Operations branches, so as to fully achieve the potential of each branch. SKFH has gotten back on track to achieve its budgetary The business model that Shin Kong Bank worked hard to targets after implementing a series of capital strengthening and establish bore fruit and produced after-tax profit of NT$560.3 risk management programs. Consolidated net profit after tax in million in 2009. We expect the bank to continue to generate 2009 was NT$1.13 billion, with profit per share of NT$0.17. steady profits in the future. Consolidated total assets reached NT$1.90 trillion, showing a Due to the dramatic rebound of the equity market during growth of 9.3%. the latter half of 2009, trading volume has also increased; Shin The sales strategy of Shin Kong Life no longer focuses Kong’s securities subsidiaries have shown excellent only on growth of premium income; in order to pursue performance in equity brokerage and proprietary trading. Shin profitability and sustainability, the company has put more Kong Securities and MasterLink Securities together contributed emphasis on value of new business. Despite a decline of 24.1% NT$538.0 million to profitability of SKFH. In order to accelerate in first year premium to NT$68.2 billion, sales of high value the integration of securities resources and enhance capital traditional products grew 121.7%, representing 37.9% of all first efficiency, SKFH implemented the merger of Shin Kong year premium income. New business value grew in comparison Securities and MasterLink Securities in 2009, under which to 2008. Net worth of the company also dramatically increased operations of Shin Kong Securities are transferred to by 130.2%, due to recovery of the stock market as well as MasterLink Securities. MasterLink Securities is one of Taiwan’s capital injection from SKFH. In addition, operating expense fell top 10 securities brokers, with 44 branches and a strong 4 5 WorldReginfo - 79f9d933-1baa-4d61-84ce-683709d8ebac customer base, while Shin Kong Securities has proven track markets, thereby building a stronger foundation for future warming through energy conservation and carbon emission Future Outlook records in e-trading and proprietary trading. The businesses of business development of Shin Kong Life. reduction measures. SKFH is actively engaged in this cause. In The global economy is expected to stabilize gradually the two companies are highly complementary. Synergies from support of the “Earth Hour” event organized by the World despite potential market volatility and challenges as various their integration will enhance the profitability of MasterLink Enforcing Risk Management Wildlife Fund, electricity was cut for an hour at 26 SKL buildings, countries exit their rescue efforts. In addition to closely Securities, which SKFH, as MasterLink’s largest shareholder, 107 SKB branches, outside walls, company occupied floors, Substantive programs are being carried out regarding the monitoring developments in the global economy, SKFH will will also benefit. Integration of the securities businesses has advertising signs and other facilities to encourage participation four pillars of risk management: “risk management culture, risk continue to: promoted a closer partnership and greater trust between in energy saving and carbon reduction efforts. management mechanisms, risk evaluation tools, and risk MasterLink Securities and SKFH, which is beneficial to further ■Pursue growth of core businesses and strengthen profitability management performance system”. For example, SKFH has Shin Kong Life Foundation (SKLF) has long been a collaboration and negotiations for potential merger in the future.