WorldReginfo - 20ddee58-dd8a-46a1-a519-d217323dcae2 Table of Contents
Financial Highlights 02 Awards and Achievements 04 Message to Shareholders 06 Fubon Life 14 Taipei Fubon Bank 15 Fubon Bank (Hong Kong) 16 Fubon Bank (China) 17 Fubon Insurance 18 Fubon Securities 19 Investment Management Group 20 Corporate Citizenship 22 A Tribute to Fubon Group Founder 26 WorldReginfo - 20ddee58-dd8a-46a1-a519-d217323dcae2 2014 Annual Report
FUBON PLUS RADIATING POSITIVE ENERGY
Forward-thinking and solid in its approach, Fubon Financial Holdings is a key generator of positive momentum in the financial services sector. By offering the best financial services to Chinese communities in Asia and building a robust organization, we continue to move closer to our vision of becoming one of Asia’s first-class financial institutions.
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Financial Highlights
Fubon Financial Holdings In NT$ Million 2012 2013 (2) 2014
Total Assets 4,105,866 4,596,972 5,438,361
Total Equity 306,429 341,900 416,147
Equity Attributable to Owners of Parent 306,429 341,678 408,043
Net Income 29,149 38,464 60,483
Net Income Attributable to Owners of Parent 29,149 38,514 60,248
Earings Per Share (NTD) 3.07 3.90 5.89
Book Value Per Share (NTD) 32.17 33.39 39.87
Return on Equity (%) (1) 10.7% 11.5% 16.1%
Return on Assets (%) 0.8% 0.9% 1.2%
The figures above are the consolidated results of Fubon Financial Holding Co. and its subsidiaries. (1) The calculation factor of Return on Equity is the amount attributable to parent company. (2) Restated retrospectively for subsequent measurement of investment properties from the cost model to the fair value model.
Total Assets 2012 4,105,866 2013 4,596,972 2014 5,438,361
Equity Attributable to Owners of Parent 2012 306,429 2013 341,678 2014 408,043
Net Income Attributable to Owners of Parent 2012 29,149 2013 38,514 2014 60,248
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Fubon Life Taipei Fubon Bank In NT$ Million 2012 2013 (3) 2014 In NT$ Million 2012 2013 (3) 2014
First Year Premium (1) 245,539 204,152 176,116 Net Interest Income 14,630 15,775 17,329 Commissions and Investment Income 68,640 86,138 109,740 8,253 8,431 10,456 Fee Revenues, Net Operating Revenue 487,777 496,175 516,913 Other Revenues 6,351 9,480 11,845 Operating Costs 460,951 458,303 462,305 Net Income 12,895 25,007 35,367 Operating Expenses 14,739 15,578 16,553
First Year Premium (2) 249,724 212,818 190,974 Pre-Provision Profit 14,495 18,108 23,077 Interest-Sensitive 32,369 110,066 146,821 Provision (reversal) for (542) 3,857 1,987 Investment-Linked 4,185 8,666 14,858 Bad-Debt Losses Traditional 213,170 94,086 29,295 Net Income 12,973 12,153 18,242
Fubon Bank (Hong Kong) (4) Fubon Bank (China) In HK$ Million 2012 2013 2014 In CNY$ Million 2014
Net Interest Income 657 750 842 Net Interest Income 967
Net Fee and Commissions and Fee 218 271 317 101 Commission Income Revenues, Net Other Operating Income 116 154 147 Other Revenues (4) Operating Expenses 791 842 897 Operating Profit before Operating Expenses 473 Gains and Impairment 200 333 409 Pre-Provision Profit 591 Losses Charge for / (write back of) Provision (reversal) for (35) 11 26 59 Impairment Losses Bad-Debt Losses Profit for the Year 306 380 481 Net Income 422
Fubon Insurance Fubon Securities In NT$ Million 2012 2013 (3) 2014 In NT$ Million 2012 2013 (3) 2014
Direct Written Premium 26,600 27,497 29,176 Brokerage Commissions 2,452 2,461 3,008 Net Written Premium 20,047 21,477 22,978 Net Interest Income 886 832 937 Gain on Trading Underwriting Profit 1,885 1,727 1,748 153 618 650 Securities, Net Investment Income 1,746 2,087 1,659 Total Revenues 5,013 5,038 5,447 Net Income 3,056 3,244 2,816 Operating Expenses 4,156 3,971 4,326 Net Claim Ratio 57.18% 56.86% 59.40%
Net Expense Ratio 37.3 0% 36.76% 36.62% Net Combined Ratio 94.48% 93.62% 96.02% Retention 72.51% 75.09% 75.34% Net Income 1,073 1,370 1,356
(1) Excluding Investment-Linked (4) The financial highlights of Fubon Bank (Hong Kong) are from (2) Including Investment-Linked consolidated financial statements. Other subsidiaries are from (3) Restated retrospectively for subsequent measurement of separate financial statements. investment properties from the cost model to the fair value model.
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2014 Awards and Achievements
Asiamoney Business Today Fubon Financial Taipei Fubon Bank Composite Performance Ranking of Financial Holding Companies—1st Place Best Domestic Private Bank in Taiwan/Best Domestic Provider of FX services as Taipei Fubon Bank voted by corporates in Taiwan—ranked 1st/Best Local Cash Management Bank in 8th Evaluation for Wealth Management Banks—Best Service Taiwan as voted by large-sized Corporates Fubon Life Brad Appeal among Businesspeople—3rd Place in Life Insurance Industry Asia Insurance Review and Celent Fubon Securities Fubon Insurance Brad Appeal among Businesspeople—3rd Place in Brokerage Industry Asia Insurance Technology Awards—Innovation Award Wealth Magazine—the 5th Survey of Financial Service Brands & the Corporate Corporate Governance Asia Social Responsibility Award for Financial Holding Company Fubon Financial Chairman Daniel M. Tsai Fubon Financial Asia’s Best CEO (Investor Relations)/Asian Corporate Director Recognition Awards The Corporate Social Responsibility Award for Financial Holding Company—Silver Fubon Financial Winner Recognition Award for Corporate Governance—Taiwan/Best Investor Relations by Taipei Fubon Bank a Taiwan company/Best CSR/Best Investor Relations Professional Best Wealth Management Bank—Silver Winner Fubon Securities Corporate Treasurer Best Domestic Equity House—Sliver Winner/Best Brokerage Service—Sliver Taipei Fubon Bank Winner/Best Local Brokerage Public Image—Sliver Winner Beat Cash Management Bank in Taiwan Fubon Life Best Life Insurance Products—Silver Winner FinanceAsia Taipei Fubon Bank Risk Management, Insurance & Finance Best Foreign Exchange Bank in Taiwan Fubon Financial Most Admired Financial Holding Company—1st Place Fubon Insurance International Finance Magazine Most Admired P&C Company—1st Place Fubon Insurance Fubon Life Best Insurance Company in Taiwan Most Admired Insurance Company—Best Back Office Group—1st Place/Most Admired Insurance Company—Best Field Group—1st Place/The 3rd Asian MILSTE st rd — Excellence Recognition Awards—Bet Insurance Claim—1 Place/The 3 Asian Taipei Fubon Bank Excellence Recognition Awards—High Brand Awareness—2nd Place/The 3rd Asian The Best Private Banking Business in Taiwan/The Best Transactional Bank in Excellence Recognition Awards—Best Sales–2nd Place/The 3rd Asian Excellence Taiwan Recognition Awards—Most Recommended–2nd Place
Reader's Digest Smart Monthly Fubon Life Fubon Life 2014 Trusted Brand Gold Awards—Insurance The 1st Smart Policy Award—Best Family Protection
The Asset Manager Today Fubon Financial Fubon Life st Corporate Award—Platinum Award 2014 Power Brand Survey—1 place in the insurance category Taipei Fubon Bank Best Private Bank in Taiwan/Best Service Providers (Renminbi Bank)/Best Cash Global View Monthly Management Solution/Greater China Awards—Best in Financial Services for large Fubon Life rd corporate in Taiwan/Top Investment House for Taiwan Dollar Bonds–ranked 1st Service Sector Survey—Life Insurance–3 Place Fubon Life Taipei Fubon Bank nd st Service Sector Survey—Banking and Financial Services—2 Place/Bank Image Top Investment House for Taiwan Dollar Bonds—ranked 1 Survey—Best Image—5th Place/Bank Image Survey—Best Service—5th Place/ Bank Image Survey—Product Performance—3rd Place/Bank Image Survey—Client World Finance Events–2nd Place/Bank Image Survey—Investment & Personal Finance—6th Place/ Fubon Life Wealth Management Survey—Best Image Wealth Management Bank—3rd Place/ Insurance Company of the Year 2014, Taiwan Wealth Management Survey—Most Recommended Wealth Management Bank— 4th Place La Vie Fubon Art Fundation Business Next La Vie 2014 Culture and Creative Industry Awards—Best Exposition Fubon Financial Top Green Brand—Financial Sector—Excellence Award CommonWealth Magazine Fubon Securities Fubon Financial Digital Services—2nd Place in Financial and Investment Sector Excellence in Corporate Social Responsibility—among the 10 finalists in the Large Company Category/Most Admired Company—Financial Holdings Sector West Strait Morning Post Fubon Life Fubon Property & Casualty Insurance Golden Service Award—Insurance Sector/Most Admired Company—Insurance West Strait Exemplary Financial Institution Award Sector, 2nd Place Taipei Fubon Bank Strait Herald Most Admired Company—Banking Sector, 2nd Place Fubon Property & Casualty Insurance Fubon Securities Annual Haixi (Xiamen) Top 10 Golden Insurance Companies Survey—Best Service Most Admired Company—Securities Sector, 5th Place Gold Award
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Xiamen Media Group Tiptop Consultants Ltd.—Tiptop Service Award Fubon Property & Casualty Insurance Fubon Bank (Hong Kong) Most Attentive Claims Services Team Outlet of the Quarter/Persistently Outstanding Service Outlet/Persistently Outstanding Service Company 2014 Faith, Hope, and Love Awards of Insurance Fubon Insurance Bank of New York Mellon Distinguished Contribution Award for Social Responsibility/Distinguished Policy Fubon Bank (Hong Kong) Designer Award for Non-Life Insurance Company/Distinguished Profession Straight Through Processing Award Award for Non-Life Insurance Company/Distinguished Contribution Award Ministry of Culture for Non-Life Insurance Education/Distinguished Leader Award for Insurance Fubon Cultural & Educational Foundation Organization/Distinguished Profession Award for Non-Life Insurance/Distinguished “Let’s Talk about Media” nominated for Best Host in the General Program Category by Representative Office Award for Non-Life Insurance—1st Business Division/ the Golden Bell Awards/“Young and Vibrant” nominated for Best Youth Program by the Distinguished Award for Non-Life Insurance Career Achievement—Nominated/ Golden Bell Awards Distinguished Representative Office Award for Non-Life Insurance—Nominated, Feng-Shan branch office Ministry of Education Fubon Life Fubon Cultural & Educational Foundation Distinguished Contribution Award for Social Responsibility/Distinguished Silver Prize Profession Award for Life Insurance Company/Distinguished Sales Strategy Award for Insurance Marketing/Distinguished Award for Integrated Marketing Sports Administration, Ministry of Education Communications/Distinguished Representative Office Award for Life Insurance/ Fubon Financial Distinguished Profession Award for Life Insurance/Distinguished Award for Life Sports Activists Awards—Sponsorship Gold Medal and Long-Term Sponsorship Award Insurance Career Achievement/Distinguished Award for Social Contribution Ministry of Labor—Work-Life Balance Award Factor Chain International Fubon Financial Taipei Fubon Bank Family Friendly Award/Health & Wellness Award Best Factoring Service Quality in Taiwan Ministry of Health and Welfare Lipper Fund Award 2014 Fubon Charity Foundation Outstanding National Social Welfare and Charity Foundation Fubon Asset Management Taipei Fubon Bank Charity Foundation Best Three-year/Five-year/Ten-year Fund in the High-Yield Bond US Dollar Outstanding National Social Welfare and Charity Foundation Category—Loomis Sayles High Income Fund/Best Three-year/Five-year Fund in — the Bond US Dollar Category—Loomis Sayles Multisector Income Fund Department of Labor, Taipei City Government Taipei Fubon Bank Morningstar Taiwan Fund Award 2014 Best Labor Safety Award—Recognition of Excellence in Workplace Wellness Fubon Asset Management Management/2014 Award for Best Companies to Work for—Two Stars Best High-Yield Bond Fund—Loomis Sayles High Income Fund Fubon Life 2014 Award for Best Companies to Work for—Two Stars Taipei Foundation Of Finance, Best Fund Award 2014 Fubon Securities Fubon Asset Management 2014 Award for Best Companies to Work for—Two Stars Best Three-year/Five-year Fund in the Global ex Emerging Markets Fixed Income Fund Category—Loomis Sayles High Income Fund/Best Ten-year Fund in the Department of Sports, Taipei City Government Domestic Equity Value Fund Category—Fubon Value Fund Fubon Financial Athletic Angle Award Taiwan Stock Exchange Corporation (TWSE) Taiwan Corporate Governance Association Fubon Securities st nd Fubon Financial IPO Fund-raising—1 Place/Warrant Trading Turnover in 2014—2 Place/New Corporate Governance System—CG6009 Advanced Assessment Certification Warrant Issues in 2014—Most Improvement Taipei Fubon Bank Corporate Governance System—CG6009 Advanced Assessment Certification Gretai Securities Market Fubon Insurance Fubon Securities Corporate Governance System—CG6009 Advanced Assessment Certification Golden Laurel Award—Securities Firm Category for Excellence in Emerging Stock Fubon Life Market Making Corporate Governance System—CG6009 Advanced Assessment Certification
Financial Information Service British Standards Institution Taipei Fubon Bank Fubon Financial Award for Outstanding Contribution in Electronic Payment Service Corporate Social Responsibility Report verified by both AA1000 and GRI G4 assurance standards MerComm, Inc Taipei Fubon Bank Fubon Bank (Hong Kong) BS 10012:2009 Personal Information Management System “2014 International ARC Awards” Gold Winner—Cover Photo/Design: Banking and Fubon Insurance Financial Services:Hong Kong/PRC BS 10012:2009 Personal Information Management System
SGS Certification Employees Retraining Board Fubon Insurance Fubon Bank (Hong Kong) Privacy Compliance Audit ERB Manpower Developer Award Scheme—Manpower Developer 2014 Taiwan Corporate Sustainability Awards Hong Kong Council of Social Service Fubon Financial Fubon Bank (Hong Kong) Taiwan Top 50 Corporate Sustainability Report Awards—Financial Industry—Gold Caring Company Logo Medal
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Daniel M. Tsai Chairman Fubon Financial Holdings
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Message to Shareholders
Dear Shareholders, Return on assets and return on equity were 1.2% and 16.07%, respectively. Book value reached NT$408 billion. The results set The economy in Taiwan showed meaningful recovery in 2014. another record highs. Key drivers came from higher export demand from the U.S. market, a buoyant local stock market and rising volume of Total assets of Fubon Financial Holdings rose 18% to tourist visits. Amid this favorable backdrop, Fubon Financial NT$5.4384 trillion in December 2014. This was mainly driven Holdings and its subsidiaries delivered robust results across the by the growth of Fubon Life, and the acquisition of Fubon Bank board. Our net income of NT$60.2 billion and EPS of NT$5.89 (China). The asset size made Fubon Financial Holdings the set another record high for earnings, and led Taiwan’s financial second-largest among listed financial holding companies in services sector for the sixth consecutive year. Taiwan.
We expand regional platform actively along with our growth Taipei Fubon Bank and Fubon Life: in Taiwan. In January 2014, Fubon Financial Holdings and Dual Engines of Profitability Taipei Fubon Bank acquired an 80% controlling stake in First Fubon Financial Holdings was able to again top the industry Sino Bank, which was later renamed Fubon Bank (China) in in earnings in 2014, owing to robust performances of its major April of the same year. The transaction marks Fubon Financial subsidiaries. Taipei Fubon Bank and Fubon Life stood out as Holdings as the only Taiwanese financial institution with banking key profit engines, which together accounted for 89% of the subsidiaries in Taiwan, Hong Kong and China. It is a critical holding company’s earnings. step forward in the company’s plans to build its presence in the Greater China region. Taipei Fubon Bank’s net income rose 50% to NT$18.2 billion in 2014, contributing 30% of Fubon Financial Holdings’ earnings. Fubon Financial Holdings successfully builds a comprehensive Net interest income increased 10% due to margin improvement, financial service platform across Taiwan, Hong Kong and China, and fee income surged 24%, driven by the growth in the bank’s which serves a full range of financial needs from banking, wealth management business. insurance to asset management. Looking ahead, our team will continue to work together to explore regional growth Fubon Life also posted a solid set of results in 2014. Net opportunity, and move toward the vision of making Fubon income jumped 41% to another all-time high of NT$35.4 billion, Financial Holdings a first-class financial institution in Asia. the best among its domestic peers, accounting for 59% of the holding company’s earnings. The results reflected the insurer’s Profit, Book Value and Assets All at Record Highs diversified investment portfolio and excellent track record of In spite of slower growth in the eurozone, China and Japan investment return. As the investment assets continued to grow, in 2014, and negative impact in the U.S. from snow storms at Fubon Life saw its assets come close to NT$2.8 trillion at 2014 the beginning of 2014, the U.S. economy showed sequential year-end. improvement throughout the year. The U.S. recovery provided a major boost to Taiwan’s exports, in turn bolstering corporate Fubon Life delivered strong performance in premium income, profitability. Corporate activities in making new investments and on the back of flexibility in product design and a multi-channel new hiring increased. Domestic consumption also expanded strategy. First-year premium totaled NT$191 billion for a steadily, along with rising employment, stock-market rallies and market share of 16.3%. Total premium reached NT$425 billion, a record-level of visitors in Taiwan. Taiwan’s economy grew representing a 15.3% share of the market. Both first-year and 3.74% during 2014, up from 2.23% the year before. total premium ranked second in the industry.
Fubon Financial Holdings posted another record year of profit. Fubon Insurance: 33 Years of Leadership It was under the backdrop of a balanced and diversified income Thanks to a prudent underwriting policy and adequate cost from major subsidiaries, coupled with stellar performance of control, Fubon Insurance was able to enhance underwriting Fubon Life and Taipei Fubon Bank, the dual earning engine of profit and maintained a strong level of net combined ratio. It the group. Net income of Fubon Financial Holdings was 56% reported net income of NT$2.8 billion in 2014. Direct written higher than in 2013 at NT$60.2 billion, and EPS was NT$5.89. premium totaled NT$29.18 billion for a market share of 22.1%, Both figures were the highest among domestic financial holding extending Fubon Insurance’s leadership in the industry to the companies for the sixth consecutive year. 33rd year in a row.
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Fubon Insurance’s subsidiary in China—Fubon Property & Shanghai to Lujiazui in 2014. The sub-branch was upgraded Casualty Insurance Co., Ltd.—began operations in Xiamen in into a flagship branch with new concepts of design. Additionally, October 2010. It is the first Taiwan-invested P&C insurer in China the bank received approval to open two more sub-branches, after the Taiwan-China Economic Cooperation Framework in Changning District and in the free trade zone in Shanghai, as Agreement became effective. well as a new branch license to operate in Nanjing. The bank plans to start operations in these new locations in 2015. Under the expertise built over decades in the Taiwan market, and a focus on service quality addressing the local markets, Fubon Fubon Bank (China) underwent a comprehensive business Property & Casualty Insurance made meaningful progress in restructuring in 2014. The bank reshaped its retail banking Haixi area and Chongqing city. Meanwhile, the insurer expanded business, launched a state-of-the-art branch showcasing its into Liaoning and Dalian in northeast China. Its service network digital and wealth management capabilities, and became the first reached 31 locations in China. The direct premium was RMB$690 Taiwanese bank to offer a Union Pay Debit card in China. The million in 2014, representing an impressive growth of 80%. The bank’s total assets were RMB$61.6 billion in 2014, up 25% from company ranked the sixth-largest company in Xiamen in terms a year earlier, and net income was RMB$422 million, up 52% of market share, and ranked the eighth among 22 foreign P&C compared to the prior year, with both figures setting record highs. insurers in China. For 2015 and beyond, Fubon Property & The bank’s non-performing loan ratio dropped to 0.89% by the Casuatly Insurance will deepen franchise development in selective end of 2014. locations, including the provinces of Fujian, Sichuan, Liaoning, and the cities of Xiamen, Chongqing and Dalian. It aims to expand the Hong Kong’s economy grew at a modest pace in 2014. The breadth and depth of services in those high-growth markets. launch of the Shanghai-Hong Kong Stock Connect program in November 2014 further cemented Hong Kong’s dominant Fubon Securities reported net income of NT$1.4 billion for 2014, position as an offshore RMB center. Fubon Bank (Hong Kong) reflecting steady progress in its brokerage and margin lending reported net income of HK$481 million for the year, representing businesses. Its market share of domestic stock brokerage ranked an increase of 27% and reaching its highest post-crisis level in the third in the industry at 5.73%, compared to 5.58% in the 2008. Net interest income increased 12% to HK$842 million prior year. With strong headway made in re-consigned trading of while non-interest income rose 9% to HK$465 million. Operating foreign securities, the volume of re-consigned trading rose 36% expenses increased only 7% to HK$897 million. The bank’s year-on-year to NT$89.3 billion. A long-time pioneer in mobile disciplined approach to managing assets quality contributed to trading, Fubon Securities partnered with Taiwan Mobile to launch a low 0.02% impaired loans ratio. With Xiamen Bank continuing “m+ VIP”, value-added services availabe on mobile devices, to its strong growth momentum, Fubon Bank (Hong Kong) saw attract tech-savvy customers. Electronic trading increased to its share of profit from investment in Xiamen Bank rise 27% to 48.75% of trades executed by the company in 2014, up from 42% HK$158 million. In the year ahead, the bank plans to launch new in 2013. branch design and configuration and an enhanced e-banking platform, offering consumers brand-new banking experience that Fubon Bank (China): A Milestone in Regional Expansion transcends their expectations Fubon Bank (China), which was previously known as First Sino Bank prior to April 2014, highly complements Fubon’s existing Above-peer Asset Quality Enabled by a Strong Tradition of banking network that covers Taiwan, Hong Kong and China. The Risk Management transaction represents a milestone in the company’s regional In the process of expanding the company’s operations, Fubon expansion. It also provides a vital platform to deliver Fubon’s Financial Holdings actively manages risk in order to maintain a financial services in the China market. strong capital position and above-peer asset quality. The holding company’s capital adequacy ratio was 137.36% in 2014, far The network of Fubon Bank (China) consists of 3 branches and above the regulatory requirement of 100%. 11 sub-branches. Its locations include the economically vibrant Yangtze and Pearl River deltas, and the region along the Bohai In 2014, the Financial Supervisory Commission imposed a Rim. There are nine sub-branches in China’s financial hub of minimum 1.5% loan loss provision requirement on real estate Shanghai. Other locations are in Suzhou (1 branch), Shenzhen loans with the aim of addressing local banks’ exposure to the (1 branch and 1 sub-branch) and Tianjin (1 branch and 1 sub- property sector. Taipei Fubon Bank met the requirement in the branch). The bank relocated a sub-branch in Qingpu District of same year, well ahead of the regulatory deadline by 2016.
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Richard M. Tsai Vice Chairman Fubon Financial Holdings
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The ratings of various rating agencies in 2014:
Credit Rating Rating Type Rating Agency Outlook Effective Date Long-term Short-term
Standard & Poor’s BBB+ A-2 Stable 2014 / 11 / 18 International Moody’s Baa1 Stable 2014 / 12/ 11 Taiwan Ratings Domestic twAA twA-1+ Stable 2014 / 11 / 19 Corp.
Taipei Fubon Bank’s BIS ratio was 13.11% as of the end of 2014, Transparency is an important cornerstone of corporate an indication of the bank’s strong capital position along with its governance. Fubon Financial Holdings was honored for Best steady loan growth. The bank’s non-performing loan ratio was Investor Relations in Taiwan by Corporate Governance Asia 0.17%, well below the industry average of 0.25%. Its coverage for the fourth year in a row, in recognition of the company’s ratio was 788.58% as of the end of the year, far higher than the long-term commitment to investor relations and information industry average of 516.38%. transparency.
In a report released on November 19, 2014, Taiwan Ratings Meanwhile, Fubon Financial Holdings’ citizenship efforts have Corp. affirmed Fubon Financial Holdings’ long-term rating as attained widespread recognition in Taiwan and abroad. The twAA and its short-term rating as twA-1+. Moody’s Investors company constantly lists among the top ten for corporate Service, in its latest ratings note dated December 11, 2014, citizenship in the large company category by CommonWealth maintained the outlook for the company at Stable. These magazine. It marked the fourth consecutive year in 2014 that affirmations reflect the company’s ability to generate profitability Fubon was honored for Best Corporate Social Responsibility above industry average and superior asset quality. by Corporate Governance Asia, and received a Platinum Award for Corporate Award from The Asset. The company also Setting a Benchmark for Corporate Governance received a Silver Award in Wealth magazine’s Corporate Social In 2014, Fubon Financial Holdings was named the Most Responsibility Award for Financial Holding Company, and was Admired Company among financial holding companies by cited for excellence as a Top Green Brand in the financial sector CommonWealth magazine for the fifth time, and was honored by Business Next. for the third year in a row by the magazine as one of Taiwan’s 10 most admired companies across all sectors. The company’s Awards for Subsidiaries’ Excellence ranking moved up to the sixth place in 2014. CommonWealth Fubon Financial Holdings’ subsidiaries garnered numerous magazine recognized Fubon Financial Holdings for its well- awards and accolades from financial media companies in balanced business lines in banking, insurance and securities Taiwan and globally in 2014. as well as its diverse and growing base of professional talents. During the same year, Fubon Financial Holdings earned the top Taipei Fubon Bank was honored by Asiamoney as Taiwan’s ranking in Business Today’s composite performance ranking of Best Domestic Private Bank, Best Domestic Provider of financial holding companies. FX Services and Best Local Cash Management Bank. FinanceAsia recognized the bank as Best Foreign Exchange Fubon Financial Holdings aspires to the highest standards of Bank in Taiwan, and The Asset named the bank Taiwan’s Best corporate governance. It is not only Taiwan’s first listed company Private Bank. Taipei Fubon Bank was granted BS10012:2009 to have established an independent director system, but also certification, meeting the British Standards Institution’s standard the first domestic financial institution to have over one-third of its that specifies the requirements for a personal Information board members being independent directors. In 2014, Fubon management system. Its premium quality of service allowed the Financial Holdings and its main subsidiaries—Taipei Fubon Bank, bank second spot for banking and financial services in Global Fubon insurance and Fubon Life—all received the corporate Views monthly’s survey of the service sector. It also won the governance system CG6009 advanced assessment certification Best Service Award in Business Today’s annual evaluation of administered by Taiwan Corporate Governance Association, an wealth management banks. achievement unmatched by any other financial holding company. These awards illustrate Fubon Financial Holdings’ efforts and In 2014, Fubon Life was named Insurance Company of the determination in its pursuit of progress in corporate governance. Year by World Finance for the third time. The insurer was rated as the second most admired insurer and awarded the top In 2014, Corporate Governance Asia awarded Fubon Financial honor at the Golden Service Award in the insurance category Holdings with a Recognition Award for corporate governance by CommonWealth magazine. It took home eight awards, for the sixth consecutive year. It also honored Fubon Financial including the Distinguished Profession Award for life insurance Holdings Chairman Daniel M. Tsai with an Asian Corporate companies, at the prestigious Faith, Hope and Love Awards Director Recognition Award for the fifth year running, for of Insurance, and received six honors at the Dragon and his contributions to corporate governance, corporate social Phoenix Insurance Awards organized by the Risk Management, responsibility and environmental sustainability. Insurance & Finance magazine.
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Fubon Insurance puts a premium on personal information The Fubon Art Foundation devotes itself to bringing arts security. The company successfully built a personal information experiences to the everyday life. For nine years, “Very Fun management system that was the first in Taiwan’s financial Park: Contemporary Art Exhibition in Taipei’s East District” sector to be BS10012:2009 certified and passed a Privacy has embraced the idea of a wall-less museum, providing Compliance Audit guided by SGS Taiwan. The insurer in 2014 opportunities for interaction and making arts accessible to received an Innovation Award at the Asia Insurance Technology everyone. Heading into its 14th year, the Fubon Forum invited Awards co-organized by Asia Insurance Review and Celent. 685 speakers and attracted over 95,000 members, with It also garnered seven awards at the Faith, Hope and Love more than 170,000 individuals attending 1,700 classes on Awards, including the Distinguished Profession Award for Non- life aesthetics. The Taipei Fubon Bank Charity Foundation, Life Insurance Companies. meanwhile, is committed to caring for the elderly, enabling people with disabilities to fully realize their talent, and helping In 2014, Fubon Securities received the IPO of the Year and the economically disadvantaged create savings. Most Improved Brokerage (in terms of the number of warrants issued) awards from the Taiwan Stock Exchange Corp. for its Further Penetration in Taiwan and Growth in the Region outstanding contribution to the development of Taiwan’s capital We expect the global economy to expand at a moderate market and the economy at large. Wealth magazine awarded pace in 2015. Weakening demand combined with declining the securities firm honors including Best Domestic Equity commodities prices could lead to deflationary pressure in House, Best Brokerage Service and Best Local Brokerage certain areas. Central banks in certain markets could take Public Image in its yearly survey of financial service brands. further monetary easing measures. Divergence in economic performance and monetary policy would intensify among the Four Foundations Serving as Catalysts for Change world’s major economies, thus increasing market volatilities Wan-Tsai Tsai, the late founder of the Fubon Group, was and casting uncertainty over global growth. Taiwan, however, a champion of the spirit of “giving back to society what is should see a pick-up in economic activity as it benefits from a reaped from society” throughout his life, whose charitable sustained U.S. recovery, signs of China’s economy stabilizing, efforts continue through Fubon’s four major foundations. and falling oil prices that boost domestic consumption. We These foundations have worked together for years to support expect a more promising economic growth outlook in 2015 than a diverse range of social services as part of their long-term in 2014. corporate social responsibility goals. Moreover, with the establishment of Fubon Volunteer Association, employees Our initiatives and development directions in 2015 for each of are offered incentives such as paid leave to encourage their the subsidiaries are as follows: involvement in community projects. Subsidiaries of the group also work collaboratively in order to maximize resources, build 1. Fubon Life: Regarding the product offering, we focus on synergies and create impact in their shared vision of doing retirement products to help customers with their retirement good to society. planning and risk protection. Products are such as regular-paid policy, medical insurance and long-term care plans. We will Through the Making Friends with Love campaign, the Fubon also offer customers with more diversified choices for insurance Charity Foundation has helped many disadvantaged students products, such as investment-linked policy tracking bond fund stay in school by providing them with emergency relief in times portfolio, discretionary investment accounts, and investment- of crisis. The campaign raised more than NT$115 million in 2014, linked insurance products with monthly distributions. Regarding benefiting 15,974 students. The Fubon Cultural & Educational the channel development, we are implementing a nation-wide Foundation has drawn on Fubon’s core competencies to make development strategy. We aim to transform from an urban- financial literary one of its causes since 2012 with its Future centric business network into a more balanced geographic Tycoon Outreach Program. During the past year, it enlisted coverage nationwide. Meanwhile, cloud service, and service Vivien Hsu, President of Fubon Financial Holdings, and other through various e-channels, will continue to expand along with Fubon executives as instructors to lead financial education further deregulation. sessions at 54 schools. At the sessions, animated videos were played and booklets circulated as tools to impart important In overseas market, the Vietnam subsidiary will promote new messages on managing money. More than 7,000 schoolchildren products and continue to enhance the service quality to its participated in the program. clients. In China, applications for subsidiary license are ongoing.
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We are also in the process of setting up a subsidiary in Hong loss from catastrophe risk, and introduce property restoration Kong upon regulator’s approval. services to facilitate rapid and effective solutions for clients. Its Chinese subsidiary, Fubon Property & Casualty Insurance, 2. Taipei Fubon Bank: The bank will set up new branches in will implement prudent underwriting criteria to ensure overall overseas, expand the scope of business beyond Taiwan, and portfolio quality. The Vietnam subsidiary will increase its build sector and geographic matrixes that support its growth. exposure to personal insurance while reducing reliance on In institutional banking, Taipei Fubon Bank plans to broaden its commercial insurance to achieve a more balanced risk profile. customer base of small- and medium-sized enterprises (SME). Asset contribution from these clients would increase. In terms of 6. Fubon Securities: Our brokerage sales team will develop product offering, we will keep promoting trade-finance products, skill sets and migrate toward the role of financial planners. RMB-denominated products, and bond trading in various This is to support the growth of wealth management and OSU currencies, with the goal of balancing sources of revenue businesses. Meanwhile, the upgrade of online trading platform from various businesses. In response to the government’s will be ongoing. We aim to increase the size of online trading digitalization initiative, the so-called “Bank 3.0”, we will improve transaction continuously. Regarding capital market business, the features and functions of the online and mobile banking we aim to offer clients with integrated solutions that meet their offerings. Meanwhile, we aim to integrate digital channels with needs and forge our long-term relationships. Looking beyond brick-and-mortar branches. By doing so, we can create a Taiwan, Fubon Securities plans to expand its Greater China seamless multi-channel banking experience for our customers, presence through investment in Huishang Futures, and set up and optimize the value of bank branches. a securities joint venture with a China partner upon regulatory relaxation. These actions mark a major step forward in Fubon 3. Fubon Bank (Hong Kong): Key actions for 2015 involve Securities’ aspiration to become the best-in-class securities firm strengthening the bank’s sales force, providing premium in Greater China. financial services tailored to client needs, cultivating new customers and expanding relationships with existing ones. In Fubon Financial Holdings and its subsidiaries will continue to addition, the bank seeks to identify high-quality loan syndication leverage synergies and integrate resources across the group opportunities and to expand the range of its RMB-denominated in 2015. We will continue to enhance franchise value through investment products and services. The establishment of a comprehensive product offerings and premium-quality services. dedicated service center for personal loans will enable the bank Meanwhile, we will actively expand our regional presence. All to further build its personal loan portfolio. More emphasis will be endeavors will bring us closer to our vision: Making Fubon placed on cross selling to increase the bank’s overall sales. Financial Holdings a first-class financial institution in Asia.
4. Fubon Bank (China): The bank will serve Taiwanese businesses and to develop Chinese clientele. Product offerings focus on cross-border financial services, treasury marketing unit Daniel M. Tsai (TMU) service, trade financing, syndicated loans and interbank Chairman, Fubon Financial Holdings financing to capture opportunities in strategically important sectors supported by the Chinese government. Another area of focus will be liquidity management and risk control. The bank will also continue building its franchise and applying for new business licenses. Through the work of the Fubon Bank (China) Charity Foundation, the bank is committed to serving the disadvantaged community through the platform, and to bring in positive ripple effects in China. Richard M. Tsai Vice Chairman, Fubon Financial Holdings 5. Fubon Insurance: We aim to gain a competitive edge through digital innovation. Initiatives include online applications, online claims processing, and new products for sales through internet channels. For commercial lines, we will focus on stabilizing premium rates, utilize reinsurance to limit the insurer’s
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1 2 3 1. Vivien Hsu 2. Victor Kung 3. Pen-Yuan Cheng 4. Jerry Harn President Chairman Chairman President 4 5 Fubon Financial Holdings Fubon Insurance Fubon Life Taipei Fubon Bank 6 7 8 5. Samuel Hsu 6. Howard Lin 7. Raymond Lee 8. Dennis Chan Chairman Vice Chairman Chief Executive Officer President Fubon Securities Fubon Life Fubon Bank (Hong Kong) Fubon Bank (China)
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Fubon Life
▼ In 2014, Fubon Life held “Walk for a Cause” speed- walking races and raised over NT$2 million to support those with vision loss.
▲ In its 11th year, the Taipei Fubon Marathon has become one of the most spectacular ▲ Fubon Life's basketball camps running events in Taiwan with over help aboriginal children realize 100,000 runners participating in 2014. their basketball dreams, with More than NT$22 million has been raised over 70 employees volunteering since its inception for charitable causes. in the camps.
Setting New Benchmark for Excellence insurance and investment solutions through agents, banks 2014 was an exceptional year for Fubon Life. Net income and alternative channels. The company’s product offerings rose 41% to a fresh record of NT$35.367 billion, or NT$8.04 are not only aligned with the changing economic trend, but per share, the highest among peers for the sixth year in a also tailored to meet different needs for different stages of life. row. First-year and total premiums reached NT$190.97 billion Among its most popular products are annuities, long-term and NT$425.04 billion, respectively. The company was able care plans and investment-linked insurance plans with a wide to expand its asset base rapidly with total assets exceeding selection of sub-funds. Considering the health care needs of NT$2.79 trillion at year-end 2014. Moreover, Fubon Life an aging population, Fubon Life allows its policyholders to port garnered several awards for its commitment to performance, the sum insured under their old policies to long-term care plans professionalism, quality of service and social engagement. The or hospital indemnity insurance. company was honored with World Finance’s Award for Best Insurance Company in Taiwan, making it the only Taiwanese By drawing on the latest technology, Fubon Life has delivered insurer to have received the prestigious award three times. For the promise of Insurance 3.0, allowing customers to apply the fourth time Fubon Life ranked among the finalists in the life for insurance coverage or make changes to their policies insurance sector of CommonWealth Magazine’s Golden Service through a mobile app or at the website. Electronic files enable Awards, and was named the sector leader for its third time. policyholders to access policy information from their mobile 2014 also marked the fifth consecutive year that it had placed in device at anytime and anywhere. Fubon Life has also pioneered the top two spots on the magazine’s Most Admired Companies with its creative combination of personal connection and mobile list in the insurance category, and it topped the list for its fourth technology, where tablet-equipped customer service agents come time. Fubon Life led all its peers with eight awards at the “Faith, out from behind the counter to serve customers waiting in queue. Hope and Love Awards of Insurance.” Apart from industry-wide recognition, the company attained two-star status in Taipei City A Champion of Good Corporate Responsibility Government’s employee wellness ranking, and was selected Fubon Life’s operations are underpinned by a commitment for the fourth straight year as the best company to work for by to empowering staff, improving customer experience and finance and insurance graduates. expanding access to distribution channels while providing security for society. With support from the Fubon Group’s Insurance 3.0: Better, Faster, Smarter foundations, the company will continue to champion causes By leveraging the parent group’s resources and distribution of education, sports and the disadvantaged in order to network, Fubon Life delivers a diverse range of banking, demonstrate exemplary corporate citizenship.
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Taipei Fubon Bank
▲ The relocation and reopening of Huajiang branch in its new location was celebrated in 2014. ▲ Taipei Fubon Bank lead-managed a US$135-million syndicated term loan for China Lesso ▲ The Bank teaches children about budgeting and Group Holdings managing money through its Budding Millionaire Limited in 2014. Money Management Camp.
Evolving with Fresh Thinking, Innovative Technologies In the retail banking segment, the bank’s sales of structured In 2014, Taipei Fubon Bank continued to align its organizational products and mutual funds increased 26% and 15% compared structure, product development, business processes and to the prior year, separately. Residential mortgage balances grew information technology systems with changes in market conditions 10% despite the sentiment within the housing market tempered to ensure that greater operating efficiencies would be achieved. by government’s efforts to hold down property prices. Credit Thanks to a dedicated staff, the bank delivered strong performance card spending rose 11% to NT$156.8 billion, with average across its main businesses. Net revenue was NT$39.63 billion, an monthly spending per active card nearing NT$8,000, the highest 18% increase year-over-year. This included net interest income of among Taiwan’s top 6 card issuers. NT$17.33 billion and net fee income of NT$10.46 billion, up 10% and 24% year-over-year, respectively. Net profit after provisions The success of Taipei Fubon Bank’s business has led to grew 50% to NT$18.24 billion. numerous recognitions and accolades by the financial industry’s leading trade publications, including Asiamoney, Finance Asia Achieving a Well-Balanced Business Portfolio, Enabling and the Asset. Sustained Growth Apart from driving growth across its businesses, Taipei Fubon Being Customer-Oriented, Adding Value to Services Bank expanded its foreign branch network beyond the United Looking at the year ahead, Taipei Fubon Bank will employ States, Hong Kong and Vietnam with the acquisition of First Sino rigorous risk controls in response to the volatile economic and Bank, which became its subsidiary and was renamed Fubon market environments. Key priorities for the corporate segment Bank (China). The deal marks the first time a Taiwan bank buys will include driving asset growth, enhancing return on assets and into a mainland counterpart, further facilitating the delivery of developing innovative products to meet client demand arising Taipei Fubon Bank’s service platform for Taiwan corporations from a possible interest rate hike. On the retail banking side, the and expanding the variety of its China-related financial services. bank will introduce a number of information system projects, broadening its set of online and mobile banking capabilities The bank topped its private-sector peers in syndicated loans so as to integrate digital channels and branch networks into with a 9.2% market share, according to International Financing a seamless service. Furthermore, Taipei Fubon Bank will drive Review. Taipei Fubon Bank continued to be the second-largest greater integration and partnership between its units in Taiwan trader of forex derivatives in nominal outstanding value, and it and China, with its strengthened regional presence supporting ranked third in terms of domestic bond-trading volume with a its aspiration to be one of the leading banks in Asia. 6.0% market share as of December 2014.
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Fubon Bank (Hong Kong)
▲ The series highlight was Fubon Bank (Hong Kong)’s 10th Anniversary Cocktail Reception which was well attended by business partners and customers. ▲ Fubon Bank (Hong Kong) launched
a series of celebratory anniversary ▲ Opening of Fubon Bank activities and promotional campaign Personal Loan Centre carrying the theme “Serving You and Tsuen Wan Securities with Heart”, including a new Services Centre at Tsuen corporate advertising campaign. Wan Branch.
Prudent Business Direction delivers Strong Performance To further strengthen Tier 1 capital and to allow greater flexibility in Fubon Bank (Hong Kong) Limited (“the Bank”) registered a net business development, Fubon Financial injected a further HK$1.5 profit of HK$481 million for the year ended 31 December 2014, billion in the form of common equity into the Bank in June 2014. representing an increase of 27% as compared with 2013. Our total capital ratio and Tier 1 capital ratio increased to 17.96% and 12.65% respectively as at 31 December 2014. Return on Net interest income increased by 12% to HK$842 million in average assets edged up to 0.62% and return on average equity 2014. We made good progress in optimizing the loan portfolio also rose to 5.18% in 2014. mix and delivered solid growth in corporate and commercial lending businesses. This mitigated the significantly higher Creating New Banking Experience deposit costs during the first half of the year. Non-interest 2014 marked the 10th anniversary of the Bank as a member of income rose by 9% to HK$465 million, in which credit related Fubon Financial. During the year, a series of celebratory activities and and trade finance fee income surged by 34%. Operating income promotional campaigns were launched under the theme of “Serving rose by 11% year-on-year to HK$1,306 million while operating You with Heart”. To strategically redeploy our marketing resources expenses increased by only 7% to HK$897 million. Cost-to- and realign our business focuses, we restructured our corporate and income ratio declined to 68.70%. institutional banking units to heighten our focus on local corporate. In retail banking, we have upgraded our Tsuen Wan Branch to a The Bank continued to exercise prudent controls on asset flagship branch with the opening of the Bank’s first Personal Loan quality. As a result, the impaired loans ratio remained at a very Centre and a new Securities Services Centre. low level of 0.02%. There was a net charge of HK$16 million for impairment losses on advances to customers in 2014, other Looking ahead, we will continue to play an important role in the impairment charges remained low at HK$10 million. Xiamen Fubon Group’s Greater China development strategy by providing Bank continued its strong performance and delivered good critical cross-border services to the Group’s Mainland and results in 2014. The Bank’s share of profits from Xiamen Bank Taiwanese customers. At the same time, we will continue to focus reached a record high of HK$158 million, representing a 27% on expanding our local franchise by improving our service delivery growth from 2013. capabilities. This year, we will reinforce our service proposition for affluent retail customers with the launch of new branch design and Total assets rose by HK$12 billion to HK$84 billion as of 31 configuration and an enhanced e-banking platform. We will continue December 2014. We managed to achieve a 16% increase in our service-oriented approach and will provide our customers with the Bank’s loan portfolio in 2014 and customer deposits also safe and high quality financial service. We are committed to create a increased by 8%. Loan to deposit ratio remained at a very new banking experience for our customers. comfortable level of 75.09%.
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Fubon Bank (China)
▲ Fubon Bank (China) accelerates its transition to a more competitive business model, making a major step toward its goal of becoming the best financial service provider across Taiwan, China and Hong Kong.
▲ The flagship branch of Fubon Bank (China) in Lujiazui, Shanghai was launched in November 2014.
In 2014, China’s economy experienced a transition to a “new Delta and the region around Bo Sea in North China, where normalcy,” and Chinese banks faced heightened uncertainty large communities of Taiwanese-owned businesses are and challenges amid concerns about the sustainability of concentrated. In 2014, the bank relocated a sub-branch in China’s growth model, the emergence of online banking and Qingpu District of Shanghai to Lujiazui and upgraded it into reforms of state-owned enterprises. a full-service branch. It also received approval to open two sub-branches in Changning District and the free trade zone Reshaping Business to Achieve Breakthrough Growth in Shanghai as well as a branch in Nanjing, all of which are Facing the complex and competitive operating environment, scheduled to start operations in 2015. Fubon Bank (China) made several major changes to reshape its business. First, it moved toward a customer-focused Embarking on a Path to Transformation organization and away from its former structure that comprised Looking into 2015, Fubon Bank (China) will remain focused on a head office and various branch offices. Second, it enhanced its core business of serving Taiwan corporations. It will also risk capabilities, streamlined business processes, upgraded reach out to mainland Chinese clients through its offerings of its technology infrastructure and improved efficiency. Third, it cross-border financial services, treasury management, trade restructured the consumer banking business, put into place an financing, syndicated loans and interbank financing, capturing electronic platform, launched a flagship branch showcasing the opportunities in strategically important sectors supported by bank’s digital banking and wealth management capabilities, Chinese government policies. In staff development, Fubon and became the first Taiwan bank to offer a UnionPay Debit Bank (China) will accelerate its recruitment and training of Card in China. local talent in order to build a strong sales team. On the front of infrastructure investment, the bank will optimize mid- and The bank’s actions to replace higher-risk assets, diversify back-office banking processes and upgrade information sources of funding and improve liquidity management have technology systems to enhance its big data analytics and positively impacted its results. At December 31, 2014, the bank’s remote administration capabilities. Risk management will be total assets were 61.6 billion yuan, 25% higher than a year another area of focus, where the bank plans to strengthen ago. Net profit increased 52% to 422 million yuan. Both assets liquidity management and augment risk oversight. While Fubon and net profit reached their highest levels since the bank’s Bank (China) continues to build its franchise, it will not overlook incorporation. Meanwhile, non-performing loan ratio dropped to its responsibility as a corporate citizen; through Fubon Bank 0.89% at year end from 1.45% in the year beginning. (China) Charity Foundation, which provides support to those from disadvantaged backgrounds, the bank aims to become a Fubon Bank (China) has 14 offices in economically vibrant catalyst for change in the communities it serves. markets including the Yangtze River Delta, the Pearl River
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Fubon Insurance
▲ Fubon Insurance dominated the 2014 Faith, Hope, and Love Awards of Insurance with seven distinguished awards and three recognitions of excellence. President Steve T.H. Chen was honored with the Best Insurance Leader Award.
▼ A marathon fair promoting micro-insurance policies raises people’s awareness of micro-insurance in a fun, engaging way.
▲ Chairman Victor Kung gives insight on how to enhance return on investment through outsourcing amid changing global economic conditions at the 2014 EAIC.
Enhancing Customer Experience through Innovation, province serving as a stronghold in its development. The insurer Pursuing Excellence in Performance wrote 690 million yuan of direct premiums in 2014, achieving In 2014, Fubon Insurance wrote direct premiums of NT$29.2 an impressive growth of 80% year-on-year. It claimed the sixth- billion, and its 22% market share topped the industry for the largest market share in Xiamen, where it is headquartered, and 33rd consecutive year. The company’s prudent underwriting ranked eighth among China’s 22 foreign property and casulty practices and strict cost controls resulted in underwriting profit insurers. By drawing on expertise built over decades in Taiwan of NT$1.75 billion, net profit of NT$2.8 billion and earnings per and with the delivery of service rooted in a deep appreciation share of NT$8.9, in line with investor expectations. The well- of the local communities, Fubon Property & Casualty Insurance rounded performance was a testament to the strength of Fubon garnered widespread acknowledgement from the local Insurance’s business model, upon which it has depended to authority, customers and partners. deliver growth and to protect the interests of its policyholders. Founded in 2008, Fubon Insurance’s subsidiary in Vietnam— Over the years, Fubon Insurance has won wide acclaim for Fubon Insurance (Vietnam) Co. Ltd.—has head office in Ho Chi its commitment to innovative services that anticipate, meet Minh City and branches in Hanoi, Binh Duong and Danang, and exceed client expectations. Riding the digital wave, the forming a service network that covers the northern, central and company has pioneered with a mobile application platform and southern parts of the country. The company wrote 191.1 billion led the market with “instant assistance” service, with the mobile dong of direct premiums in 2014, a 19% increase year-on-year. technology making claims process easier as well as ensuring Fubon Insurance (Vietnam) provides complete personal and timely resolutions for policyholders. As a result, it was honored property protection to Vietnam’s companies, individuals and in the innovation category of the Asia Insurance Technology workers with the same commitment displayed when servicing Awards. In November 2014, Fubon Insurance became the first the needs of Taiwanese business people and corporations. property and casualty insurer to have received approval for providing coverage online. Having gained a key competitive Adhering to Principles of Sustainable Development, advantage by investing in the Internet, the company aims to Fulfilling Social Responsibility continue delivering flexible, diverse and user-friendly online In the year ahead, Fubon Insurance will stay true to its core services to policyholders. values of integrity, sincerity, professionalism and innovation. It will also reinforce its commitment to sustainability with the upmost Expanding Global Footprint, Making Positive Impact comprehensive product offerings, through the delivery of higher- Abroad, Fubon Property & Casualty Insurance, a mainland quality, more-comprehensive coverage, and by creating a more subsidiary of Fubon Insurance, has 31 offices that span the satisfactory service experience—as part of its mission to protect cities of Xiamen, Chongqing, Liaoning and Dalian, with Fujian individuals, families and businesses against risks and losses.
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Fubon Securities
▲ Known for its charitable giving, Fubon Securities in 2014 treated children from Haiduan Township to a fun-filled tour of Taipei City.
▲ President Leo Cheng receives a trophy from William ▲ A pioneer in mobile Tseng, chairman of the Financial Supervisory trading, Fubon Commission, and Hsieh Chin-ho, publisher of Wealth Securities launched Magazine. Fubon Securities was honored as winner valued-added mobile in three categories in Wealth Magazine’s 2014 Survey services for its “M+” of Financial Service Brands. VIP account holders.
A Foundation Built upon Professionalism Fubon Securities continued to provide investors an easy, Fubon Securities delivered strong performances across all convenient way to trade and manage account information of its businesses in 2014, further cementing its leadership through M+ VIP accounts on Taiwan Mobile’s M+ mobile position. The company was ranked the third largest network. In 2014, electronic trades accounted for 42.5% of domestic stock brokerage firm with a 5.73% market share. all trades brokered by company, the highest percentage of Re-cosigned trading of stocks was NT$89.3 billion, up 36% any securities firm in Taiwan. At Fubon Futures, a platform year-over-year. The number of warrants offered by Fubon for strategic advisory services was in place to facilitate Securities increased 50% to 2,099 in the amount of NT$260 informed decision-making. billion to represent 9.4% of the market. On the underwriting side, Fubon Securities advised on the IPO for Aerospace Pursuing Leadership in Greater China Industrial Development Corp., with the deal receiving the Going forward, the development of Fubon Securities will be IPO of the Year Award from the Taiwan Stock Exchange. underpinned by a focus on sustainable growth, structural adjustments and business optimization. It will also make Fubon Asset Management leads Taiwan market to issue the a greater push into the wealth management business, first direct Shanghai A share investment ETF, Fubon SSE 180 with plans to add bonds and structured products to the ETF, underscoring the company’s commitment to product range of investable assets for its money trusts. Fubon innovation. An expanded product line-up drove assets of Investment Service will integrate its research capabilities publicly offered funds up 25% to NT$83.8 billion, and total that exist across China, Hong Kong and Taiwan to assist assets under management, which include privately placed with the trading and broking of China- and Hong Kong- funds and discretionary mandates, reached NT$125.5 billion. listed stocks, while Fubon Asset Management will offer more China A-share funds to capitalize on growing demand. As Enhanced Service for Fubon Securities, after major breakthroughs last year in Fubon Securities moved ahead of its peers with the launches expanding footprint in the Greater China market, it will seek of custody service for foreign institutional investors and OSU to form a mainland Chinese joint venture should regulations business so as to deliver integrated equities trading services allow. Developed with the needs of today’s investors in in the best one-stop shop style. The company renewed mind and supported by capital market subsidiaries across its focus on the bond business with a wider range of fixed geographies, Fubon Securities’ comprehensive suite of income strategies available to investors. In derivatives, more trading and investment consulting services well-positions warrants were offered based on securities with attractive the company to achieve its goal of being a recognized leader risk/reward profiles, such as Fubon Shanghai Stock in the Greater China region. Exchange 180 Leveraged 2X Index ETF. In mobile trading,
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Investment Management Group
▲ Final beam is raised at a topping-out ceremony for a new hotel in prime location of Taipei City.
▲ The signing of a superficies rights agreement for the A25 land plot in Xinyi District of Taipei City.
Fubon Life & Fubon Insurance In 2015, the global economy should continue to grow at a Navigating Market Volatility moderate pace. The investment teams of Fubon Life and Fubon Market volatility was high at certain times in 2014 amid the end Insurance, whose balance sheets are supported by sufficient of the U.S. Fed’s quantitative easing, geopolitical tensions and and strong cash flows, look to invest in high yield stocks, blue the uneven pace of economic recovery in major economies. chips and fixed-income securities with higher ratings both Nonetheless, the global markets began a path to greater domestically and abroad while strengthening the function of stability as the U.S. recovery gained ground, the Fed provided asset-liability management. They will also seek high-quality real more clarity about its policy, and ECB and BOJ stepped up estate assets to take advantage of the easing of restrictions monetary easing, thereby creating favorable liquidity conditions for investing in overseas properties and to sustain long-term for growth. Navigating the fast-changing tides of the markets, returns for the companies. investment teams of Fubon Life and Fubon Insurance identified opportunities and delivered robust performance by investing in Direct Investment a wide variety of financial instruments. Fubon Life saw its year- Unearthing Value end balance of usable capital increase 15% to NT$2.57 trillion, The Group’s direct investment division continues to explore and return on investment in the year reached an all-time high of the possibility of establishing new businesses through joint NT$109.9 billion. At Fubon Insurance, usable capital grew at a ventures or investing in high-potential unlisted companies in steady rate, with year-end balance arriving at NT$68.5 billion. the healthcare, information technology, cultural and creative, renewable energy, infrastructure and financial industries. It On the policy front, the world should shift into a multi-track is aiming to capture opportunities that arise from Taiwan’s trajectory in fiscal and monetary policy heading into 2015, given ongoing economic transformation. increasingly diverging trends in economic growth of developed countries and emerging economies. The flow of hot money will The group finished the year 2014 with direct investment valued be under spotlight as both geopolitical situations and the U.S. at NT$8.863 billion, including NT$3.391 billion in infrastructure; Fed’s monetary policy propel money flow in and out of financial NT$962 million in cultural and creative industries and media markets in search for safety, leading to heightened volatility in channels; NT$1.386 billion in healthcare; NT$660 million in equity, foreign currency markets and fixed-income securities. energy and environmental engineering; NT$236 million in IT Weaker oil prices are expected to impact petroleum exporting and e-commerce; NT$1.399 billion in financials; NT$501 million countries and related industries while also putting down in venture capital; NT$305 million in food & beverage; and inflation prospects around the world, thus adding uncertainty to NT$23 million in sports and entertainment. the global growth outlook with far-reaching implications.
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Board of Directors Management Committee
Chairman Directors Daniel M. Tsai Chairman Daniel M. Tsai Jain-Rong Su Fubon Financial Holdings Fubon Financial Holdings Commissioner Department of Finance, Richard M. Tsai Vice Chairman Taipei City Government Vice Chairman Fubon Financial Holdings Richard M. Tsai Fang-Ling Yang Fubon Financial Holdings Commissioner Vivien Hsu Department of Legal Affairs, President Independent Directors Taipei City Government Fubon Financial Holdings
Louis Cheung Hsiu-Chu Liang Victor Kung Managing Partner Commissioner Chairman Boyu Capital Department of Budget, Fubon Insurance Accounting and Statistics Ming-Je Tang Taipei City Government Pen-Yuan Cheng Professor Chairman Department and Graduate Institute Victor Kung Fubon Life of International Business, Chairman National Taiwan University Fubon Insurance Jerry Harn President Peng-Yuan Cheng Taipei Fubon Bank Chairman Fubon Life Samuel Hsu Chairman Samuel Hsu Fubon Securities Chairman Fubon Securities Howard Lin Vice Chairman Jerry Harn Fubon Life President Taipei Fubon Bank Raymond Lee Chief Executive Officer Fubon Bank (Hong Kong)
Dennis Chan President Fubon Bank (China)
(Information above as of end of February 2015)
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Dynamic Fubon, Creating a Common Good Spreading Love—One Step at a Time
Fubon Financial Holdings acts as a “social catalyst,” embracing corporate social responsibility. Through ethical management practices and forward thinking, we have emerged as a positive force in the financial sector, committed to creating a common good.
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Fubon Charity Foundation Fubon Cultural and Educational Foundation Fubon Art Foundation Taipei Fubon Bank Charity Foundation
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▲ The Annual Fubon Volunteer Day concludes with great success. ▲ The “Sending Knowledge to Tribes – Mobile Library” initiative, fosters a love of reading in children.
Fubon Charity Foundation Fubon Cultural & Educational Foundation
As the Fubon Group’s first philanthropic arm, the Fubon Charity The Fubon Cultural & Educational Foundation has guided Foundation serves as one of the group’s important platforms teenagers on their journey of life for many years, helping them through which to fulfill its corporate social responsibility. harness their potential and develop a global mindset. In 2014, the foundation’s four areas of focus were the “Young Voice” workshops, parental-child communication, financial literacy At the Forefront of Corporate Citizenship education and aboriginal education initiative. Highlights of the foundation’s work in 2014 include: “Making Friends with Love”: The campaign raised The “Young Voice” workshops empower young people to find NT$115,013,400 during the year, helping more than 15,974 their voice and express their opinion on public matters through creative work. In 2014, screenings of short films and exhibitions students continue their studies. of photography were held in Taipei and Kaohsiung to showcase “Exchanging Points for Love”: The campaign raised the talent of young workshop participants, collectively attracting NT$1,939,250 in funds that were donated to 13 social charities. 36,000 visitors. “Emergency Relief Fund”: The fund lent support to 5,752 individuals and families with grants of NT$18,255,506. “Let’s Talk about Media,” a radio show co-produced by the foundation and the Taipei-based Broadcasting Corporation of “The Annual Fubon Volunteer Day”: The Fubon Group held China, serves as a vital platform for dialogue between parents its first-ever annual day of volunteer service, mobilizing 965 and children. The show garnered two Golden Bell Broadcasting employees as volunteers escorting disadvantaged children in Award nominations for 2014. A video channel that turns the two Fubon-sponsored field trips. program’s radio broadcasts into Internet programming has consistently averaged daily viewers of 10,000. “Give Blood Now!”: The week-long event resulted in donation of 4,397 units of blood, or 1.1 million c.c., at 26 group locations In addition, the “Future Tycoon Outreach Program” again in 17 cities and counties; the foundation was honored for enlisted Fubon executives including Vivian Hsu, president of the sixth consecutive year by the Taiwan Blood Services Fubon Financial Holdings, and Morris Huang, executive vice Foundation for its outstanding contribution. president of Taipei Fubon Bank, as instructors to lead financial education sessions at 54 schools. At the sessions, animated “Fubon Volunteer Association”: 2,461 members contributed videos were played and booklets circulated as tools to impart 15,564 hours of service. important messages on managing money. Almost 7,000 schoolchildren participated in the program during the year. The Fubon Charity Foundation is committed to exploring ways to make a meaningful and lasting impact on the communities As part of the foundation’s “Sending Knowledge to Tribes—Mobile it serves. In 2014, the Ministry of Health and Welfare awarded Library” initiative to help children in remote aboriginal communities develop an appreciation for reading, book buses crisscrossed the foundation an “excellent” rating in recognition of its work for the country, with volunteers holding story-reading sessions in a social change. Going forward, the foundation will remain at the vibrant, engaging way. To date, more than 170 elementary schools forefront of philanthropy, spreading love and care to wherever have benefited from the mobile library service. they are needed.
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▲ Japanese architect Kengo Kuma at the ▲ The three-year “Poverty-busting Savings Plans” have concluded Fubon Forum in 2014. with encouraging results.
Fubon Art Foundation Taipei Fubon Bank Charity Foundation
Since it was established in 1997, Fubon Art Foundation has Since its inception, the Taipei Fubon Bank Charity Foundation focused on the importance of “sharing” art. has been dedicated to the cause and care of the elderly, the physically challenged and economically disadvantaged. For 9 years, “Very Fun Park” has supported the concept of The foundation has been rated as “excellent” for four the “museum without walls”, using it to bring together a wide consecutive years in the government’s evaluation of charitable range of contemporary art forms and display works of art on organizations. the streets of Taipei City. In 2014, the foundation identified the word “Embrace” as key to living a positive life and showed In 2014, as part of its continued support for less-resourceful pieces at 20 locations in the Songshan Cultural and Creative elderly people, the foundation offered health visits and home- Park. A total of 28 artists/groups from around the world took delivered meals to seniors living alone on Orchid Island on the part, showcasing the possibilities created when art and space weekend and holidays. It also lent assistance to those who care engage in dialogue. full-time for family members with dementia. A total of 178 “Giving Family Caregivers a Breather” excursions were organized Over the past 14 years the Fubon Forum has invited 685 during the year, giving the participating 3,730 caregivers an speakers from Taiwan and overseas and attracted more opportunity to get together to share support and information. than 95,000 members, with 170,000 individuals attending 1,700 life aesthetics classes. In 2014, 26 free lectures and In addition, two “Poverty-busting Savings Plans,” programs 46 fee-charging classes were held, highlighting the growing that match savings made by students from low-income families international reputation of the lectures. dollar-for-dollar, were concluded in Chiayi City and Taitung County. To date, close to 300 students have achieved greater Over the next year, as “Very Fun Park” moves into its 10th self-reliance through regular savings. year, the Fubon Art Foundation will work to establish a digital platform and digitize the Fubon lectures through cloud The “All Love Orchestra,” composed of past winners of technology. We will also continue our work with Eastern the Taipei Fubon Bank Artistic Award for Disabled Talents, District “Mapper” magazine, “Fun Art Radio” show and the continued to perform around the country, with two large development of artist authorized gifts presented by the Fubon concerts held at National Concert Hall and the Chung Shan Group, as we strive to make art an integral part of daily and we Hall, in particular, stirring the audience to rousing applause. also believed art is commitment to life. The ensemble also shared inspiring stories about how they had overcome physical disabilities with courage and determination.
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Creating Wealth for the Nation, The Honorable Mr. Wan-Tsai Tsai, the founder of the Fubon Group, passed away peacefully with his family by his side on Bringing Prosperity to the People October 5, 2014. He was 86.
Mr.Tsai epitomized the down-to-earth hardworking A Tribute to Fubon Group Founder businessman. Starting with a nascent 10-staff property and WAN-TSAI TSAI. casualty insurance operation, he built a peerless financial empire with the most comprehensive service and product portfolio in Taiwan, and cultivated diversified business interests ranging from real-estate investments to holdings in the telecommunications, multi-media, and cultural and arts industries. Mr. Tsai personally selected the name “Fubon” for the company he had built, which in Chinese reflects his vision of a prosperous nation and harmonious society.
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Mr. Tsai was a champion of public service and an enthusiastic and Richard M. Tsai, complemented and supported each other philanthropist. He was a three-term legislator, advisor to the and forged an indelible father-and-son kinship that not only grew Executive Yuan and senior advisor to the president, and held deeper and stronger in time but also anchored the phenomenal leadership roles in numerous civic groups, such as the Friends growth of the conglomerate they nurtured together. The public’s of Police Association of R.O.C (Taiwan), Taipei Municipal regard of Mr. Tsai as the foremost authority in home governance Athletics Federation, and Taipei Chamber of Commerce. Mr. Tsai as well as corporate governance. envisioned Fubon as an engine of social change, and charged the group’s six philanthropic foundations with a long-term A wise man is gone, but his spirit and legacy remain. Mr. Tsai mandate to support worthwhile social and charitable causes. will be long remembered as a man of grace and compassion as well as one of the great forces behind Taiwan’s economic At home as well as in business, Mr. Tsai was a gentle humble progress. His legacy will inspire and guide the Fubon Group man who personified the virtues of “Integrity, Diligence and in its ongoing quest to be a leading financial institution in Asia Modesty” and treated others with due fairness and consideration. and a positive force in the promotion of worthwhile civic and Under his leadership, Mr. Tsai and his two heirs, Daniel M. Tsai philanthropic causes.
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Fubon Financial Holding Co., Ltd. Fubon Bank (China) Co., Ltd. Fubon Asset Management Co., Ltd. Year of Founding: Dec. 2001 Year of Founding: March 1997 Year of Founding: Sep. 1992 Chairman: Daniel M. Tsai Chairman: Pei Li Hong Chairman: Gang Shyy President: Vivien Hsu President: Dennis Chan President: Henry Lin Capital: NT$102.34 Billion Capital: 2.1 Billion (RMB) Capital: NT$1.92 Billion 237 Section 1 Jianguo S Road 1-3F, 5F, 18-20F, Oriental Financial Plaza 108 Section 1 Dunhua S Road Taipei Taiwan Tower A, Taipei Taiwan Te l: (8862) 6636-6636 1168 Century Avenue, Pudong, Shanghai Te l: (8862) 8771-6688 Fa x: (8862) 6636-0111 Te l : 86-21-2061 9888 Fax: (8862) 8771-6788 www.fubon.com Fax: 86-21-5840 9900 www.fubon.com www.fubonchina.com Fubon Life Insurance Co., Ltd. Fubon Direct Marketing Co., Ltd. Year of Founding: July 1987 Fubon Insurance Co., Ltd. Year of Founding: Aug. 1997 Chairman: Pen-Yuan Cheng Year of Founding: April 1961 Chairman: Thomas Liang President: Benson Chen Chairman: Victor Kung President: Alex Yeh Capital: NT$43.98 Billion President: Steve T.H. Chen Capital: NT$145 Million 108 Section 1 Dunhua S Road Capital: NT$3.18 Billion 9 Xiangyang Road Taipei Taiwan Taipei Taiwan 237 Section 1 Jianguo S Road Te l: (8862) 2370-5199 Te l: (8862) 8771-6699 Taipei Taiwan Fax: (8862) 2370-5100 Fax: (8862) 8809-8889 Tel: (8862) 2706-7890 www.fubon.com www.fubon.com Fax: (8862) 2325-4723 www.fubon.com Fubon Financial Holding * Aetna Life Insurance Company of Venture Capital Corp. America,Taiwan Branch was established Fubon Securities Co., Ltd. Year of Founding: Oct. 2003 in 1987 and then bought by ING Group in Year of Founding: July 1988 Chairman: Richard M. Tsai 2000 and renamed ING Life Taiwan. The Chairman: Samuel Hsu President: Chu-Hsin Lee branch became an ING Life subsidiary President: Leo Cheng Capital: NT$2.73 Billion in 2006, which was later bought by the Capital: NT$16.6 Billion 108 Section 1 Dunhua S Road Fubon Group. Fubon Life was launched 169 Section 4 Ren Ai Road Taipei Taiwan in 1993. The two insurers formally Taipei Taiwan Te l: (8862) 6606-9088 merged in 2009. Te l: (8862) 8771-6888 Fax: (8862) 8771-4697 Fax: (8862) 8771-6636 www.fubon.com Taipei Fubon Commercial Bank www.fubon.com Co., Ltd. Fubon Sports & Entertainment Co., Ltd. Year of Founding: April 1969 Fubon Securities Investment Year of Founding: Sep. 2007 Chairman: Daniel M. Tsai Services Co., Ltd. Chairman: Richard M. Tsai President: Jerry Harn Year of Founding: May 1987 President: Chris Tsai Capital: NT$89.18 Billion Chairman: Philip Hu Capital: NT$20 Million 169 Section 4 Ren Ai Road President: Charles Hsiao 108 Section 1 Dunhua S Road Taipei Taiwan Capital: NT$300 Million Taipei Taiwan Te l: (8862) 2771-6699 108 Section 1 Dunhua S Road Tel: (8862)6606-9088 Fax: (8862) 6606-9398 Taipei Taiwan Fax: (8862)8771-4697 www.fubon.com Te l: (8862) 2781-5995 www.fubon.com Fax: (8862) 2773-5601 Fubon Bank (Hong Kong) Limited www.fubon.com Fubon AMC Co., Ltd. Year of Founding: Jan. 1970 Year of Founding: Aug. 2004 Chairman: Richard M. Tsai Fubon Futures Co., Ltd. Chairman: Jerry Harn Chief Executive Officer: Raymond Lee Year of Founding: May 1998 President: Philip Chao Capital: NT$19.76 Billion Chairman: Raymond Yang Capital: NT$2.5 Billion 38 Des Voeux Road Central, President: Phoebe Chang 50 Section 2 Zhongshan N Road Hong Kong Capital: NT$1 Billion Taipei Taiwan Te l : (852) 2842-6222 9 Xiangyang Road Taipei Taiwan Te l: (8862) 6618-0588 Fax: (852) 2810-1483 Te l: (8862) 2388-2626 Fax: (8862) 6608-0166 www.fubonbank.com.hk Fa x: (8862) 2370-1110 www.fubon.com www.fubon.com
(Information above as of end of February 2015)
28 WorldReginfo - 20ddee58-dd8a-46a1-a519-d217323dcae2 Fubon annual report is printed on heavy-metal-free paper and with eco-friendly soybean-based ink. (Information above as of end of February 2015) Copyright © 2015 Fubon Financial Holding Co., Ltd. All Rights Reserved. Printed in Taiwan 3/2015. WorldReginfo - 20ddee58-dd8a-46a1-a519-d217323dcae2 WorldReginfo - 20ddee58-dd8a-46a1-a519-d217323dcae2