Ⅰ.Names, titles, phone numbers, and e-mail addresses of spokesman and acting spokesman Name of spokesman: Spike Wu Title: President Tel.: (02)5576-3701 e-mail address: [email protected] Acting spokesman: Shawn Teng Title: Vice president Tel.: (02)25056966#450 e-mail address: [email protected] Ⅱ.Addresses and phone number of headquarters and branches Headquarters: 1st fl., and 1st basement, No. 44, Zhongshan N. Rd., Sec. 2, Zhongshan District, Taipei City Tel.: (02) 2568-3988 Addresses and telephones of branches: see the “domestic and overseas business points” section of the annual report. Ⅲ.Name, address, website, and phone number of the institution for handling stock register Name: Stock Affairs Agency Department of Taishin International commercial Bank Address: B1,No.96, Sec1, Jianguo N. Rd.,Zhonghsan Dist.,Taipei city. Website: http://www.taishinbank.com.tw Tel.: (02)2504-8125 Ⅳ.Names, addresses, and phone numbers of credit rating institutions Name: Fitch Ratings Address: Room1306, 13th fl.,No.205, Dunhua N. Rd., Songshan Dist., Taipei City Tel.: 886-2-8175-7600 Name: Taiwan Ratings Address: 49th fl. Taipei 101 Tower, No. 7, Xinyi Rd., Sec. 5, Taipei City Tel: 886-2-8722-5800 Ⅴ.Name, address, website, and phone number of certified public accountant and accounting firm for the financial statement in the recent year CPAs: Yang Qinzhen , Weng Rongsui Name of accounting firm: Deloitte & Touche Tax Consulting Co., Ltd. Address: 12th fl., No. 156, Minsheng E. Rd., Sec. 3, Taipei City Website: http://www.deloitte.com.tw Tel.: (02)2545-9988 Ⅵ.Name of exchange for trading in overseas listed securities and information inquiry for the securities: Nil Ⅶ.Company website: http: //www.taishinbank.com.tw I. Message to Shareholders In 2010, strong global economic recovery induced robust upturn of Taiwan’s export, whose value hit record high. Consequently, investment and consumption demand staged a strong performance, enabling Taiwan’s economy to expand 10.8%, the highest in 30 years. Thanks to healthy economic climate and the effort of the management team, the financial holding company, the parent company, raked in after-tax net profi t of NT$7.7 billion in 2010, or NT$1.06 of earnings per share (EPS), with book value reaching NT$12.04 per share, returns on equity (ROE) 9.57%, capital adequacy ratio (CAR)119.34%, and banking BIS (Bank of International Settlement) ratio 13.58%,which underscore the healthy state in assets quality and capital structure. In the aspect of operation, net interest income and net fee income both scored marked growth. The performance ranks among the tops among domestic peers. In 2011, the company has continued to maintain steady profi t growth, racking up NT$0.4 of EPS in the fi rst quarter, ranking fi fth place in the market. The banking operation racked up profi ts which were six-year high in 2010, with net-interest income reaching NT$11.7 billion and net fee income NT$6.6 billion, both up 17%. Thanks to hefty bad-debt collection, net provisions were negative and pre-provision pre-tax earnings grew 20% to NT$8.7 billion. Meanwhile, non-performing loan ratio dropped to 0.33%, NPL coverage jumped to 326%, and ROE hit 13.8%, which were among the tops in the domestic banking sector. The remarkable financial structure and profit-making ability has won the bank awards from various international professional media, including Euromoney, Financial Insights, the Asset, and Asian Banker, as well as the honor of “Bank of the Year” from the Banker. In a domestic banking evaluation for the second quarter of 2010, released by the department of fi nance of National Cheng Chi University in October 2010, Taishin Bank was one of the 17 A-class banks among the 34 domestic banks receiving the evaluation. Consequently, Fitch Rating upgraded its various ratings for Taishin Financial Holding and Bank by one notch in December 2010. After the sellout of a subsidiary securities fi rm in 2009, the fi nancial holding fi rm took over another securities fi rm in 2010 and renamed it as Taishin Securities after capital increment and organizational reshuffl e. Meanwhile, Taishin Securities Investment Trust acquired Taiwan Industrial Bank Investment Trust, thereby boosting the scale of its managed funds to the 16th largest domestically and readying it to become a key platform of the fi nancial holding firm for the design and provision of investment products. The possession of the subsidiaries of securities, fund management, and investment trust consulting in the securities fi eld has made the functions and mechanism of the fi nancial holding fi rm even more complete. In the mainland Chinese market, in 2010 the fi nancial holding company and the bank have signed memorandum of understanding for cooperation with Zijin Holding, Bank of Nanjing, East West Bank (China), and Chengdu Rural Commercial Bank. Among them, there have been actual business exchanges with the Bank of Nanjing, according to a mode which benefi ts both parties. After receiving a green light from the Financial Supervisory Commission (FSC), the company is applying for the establishment of a fi nancing fi rm in China, which, if successfully, will further expand the company’s deployment in China. Currently, the two major functional business groups are adjusting their business strategies according to market trends, strengthening various risk management, and simultaneously deep-cultivating existing clients and developing quality new clients, thereby laying the cornerstone for long-term steady growth. Business status and development direction of consumer banking and corporate banking groups follow: 2 2010 Annual Report Consumer Banking Thanks to the concerted effort of its team members, the consumer banking group rendered a remarkable performance in 2010.It was a leader in the auto-loan market, with market share reaching 23%, ranked fourth place in terms of effective credit-card number, and was the champion for the top-notch card sector, with market share of 28.5%. Credit- card spending value grew 21%, higher than the industry average, and the number for acquiring bank business jumped 44%, with market share of 14%, ranking third place. Overall assets quality was also better than market average. Thanks to sustained business growth, decline in provisions, and cost control, profi ts grew steadily in 2010. In the aspect of channel, since the group launched mobile banking in the second half last year, the number of customers has been expanding at an annual clip of 30%. In the future, the group will further strengthen the management of branches and automated channels, in the hope of providing customers even more convenient quality service. Under the “customer-oriented” management concept, in addition to continued deep-cultivation of credit-card business, the group will also actively develop the two major businesses of private wealth management and personal loans. For the contents of service, it will materialize the new concepts of 3S (simple, sincere, and superior), to as to further upgrade service and give customers even more satisfactory fi nancial experience. Corporate Banking Capitalizing on the overall economic recovery and continuing to strengthen core businesses, the corporate banking group also had an outstanding performance in 2010. Its factoring business ranked third place in the market, the trading volume of cash management, including FEDI (financial electronic data exchange) and ACH (automated clearing house), ranked the fi fth market in the market and the number of stock-affairs agency ranked fourth place, and rollout of innovative assets-management fi nancial products continued. Along with the increasing cross-Taiwan fi nancial exchanges, the corporate banking group established an “overseas business department” in 2011, for the purpose of upgrading trade-related financial business for overseas clients, cultivating international fi nancial talents, and providing all-round fi nancial services to overseas Taiwanese-invested businesses, so as to carve out a presence in the greater Chinese market. Amid acute competition of the financial market, the corporate banking group embraces a number of business strategies, including timely grasp of industrial development pulse, focus on rigorous risk management and pursuit of steady profits, effective integration of financial holding company’s resources, integration of the channels of corporate banking and consumer banking in the cultivation of new customers, and dedication to the deep cultivation of customers via more sophisticated segmentation. In the meantime, in line with the new 3S concept, the group will endeavor to provide even more quality professional services to corporate customers and wealth-management customers. Overall speaking, business will achieve another peak, so long as the group can upgrade its domestic market share and steadily develop overseas markets. In 2011, the global economy is expected to expand further. The International Monetary Fund (IMF) predicts that the global economy will grow 4.4% this year, higher than average 4% growth in the past 10 years. Outlook for the U.S. and mainland Chinese economy, both with close linkage with Taiwan’s economy is promising. Under a sustained 2010 Annual Report 3 I. Message to Shareholders expansionary policy, the U.S. economy is picking up and mainland China has targeted to achieve growth rates of 8% for both 2011 and 2012, along with its effort to transform its economic structure. With a heavy reliance on export, Taiwan’s economy also has a promising outlook this year. The Directorate General of Budget, Accounting, and Statistics (DGBAS) forecast Taiwan’s economy will grow 4.9% this year (compared with 5.3% forecast by Taishin Investment Trust Consulting), higher than average 4.2% in the past 10 years. In the mid- and long-term, Taishin Bank embraces the strategy of boosting domestic market share and cautiously pushing international business growth. In 2011, members of the corporate team will still adhere to the corporate core values of “integrity, commitment, innovation, and cooperation” and materialize the values in their services, thereby achieving the fi nancial targets of the customers and shareholders.