[PPT] - 9M2015 Interim Results Fubon Financial Holdings Fubon Financial PowerPoint Presentation

SLIDE 1

9M2015 Interim Results Fubon Financial Holdings

2015.11.25

Fubon Financial Holdings

SLIDE 2

Disclaimer

This meeting may contain forward-looking statements with respect to the financial condition, results of operations and business of the company. These forward-looking statements represent the company’s expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed. Certain statements, such as those that include the words “potential”, “estimated”, and similar

2

expressions or variations on such expressions may be considered “forward-looking statements”. Financial numbers in this report may include preliminary unaudited numbers or management accounts.

SLIDE 3

Performance review by subsidiary

Fubon Life

Performance highlights of Fubon Financial Holdings

Agenda

Taipei Fubon Bank

3

Fubon Life
Fubon Securities
Fubon Insurance
Fubon Bank (China)

SLIDE 4

Fubon Financial Holdings: Operation highlights

Taipei Fubon Bank Fubon Life

Net profits NT$58,143 million 9M15 with 8.5% yoy growth

Recurring return continue to increase and well above breakeven point Total premium growth led by renewal premium and strong FYP in 3Q15 Net interest revenue and net fee revenue maintains steady Asset quality remains benign 4 Stable market share across business lines

Fubon Insurance Fubon Securities

Total premium growth led by renewal premium and strong FYP in 3Q15 Leading position in premium income with 22.5% market share, with

utstanding underwriting performance

SLIDE 5

Net profits

NT$bn 29.1 38.5 60.2 2012 2013 2014

Fubon Financial Holdings: Profitability

53.6 58.1 9M14 9M15 3.07 3.90 5.89 2012 2013 2014

5

Earning per share (EPS)

NT$

Note: Fubon adopted fair value method for investment property evaluation since September 2014.

5

2012 2013 2014 9M14 9M15 5.24 5.68 9M14 9M15

SLIDE 6

Taipei Fubon Bank 15.1 25% Fubon P&C 2.6 5% Fubon Securities 0.8 1% Fubon Bank (HK) 2.3 4%

Fubon Financial Holdings: Net profits from major subsidiaries

Net profits from major subsidiaries Profit contribution from major subsidiaries

NT$bn NT$bn

53.6 58.1 38.8

9M14 9M15

Fubon Life 38.8 65%

6

Note: (1) Profit contribution are based on the summation of five major subsidiaries; (2) Fubon Bank (China) contributed NT$1.2bn net profits to the Company on the basis of 80% shareholding.

16.6 31.3 2.4 1.2 1.6 15.1 38.8 2.6 0.8 2.3 Fubon FHC Taipei Fubon Bank Fubon Life Fubon P&C Fubon Securities Fubon Bank (HK)

SLIDE 7

Total assets

NT$bn 4,106 4,597 5,438

Fubon Financial Holdings: Assets and net worth

5,207 5,861 9M14 9M15

7

Equity attributable to parent company

NT$bn 2012 2013 2014 306 342 408 2012 2013 2014

Note: Fubon adopted fair value method for investment property evaluation since September 2014.

9M14 9M15 371 356 9M14 9M15

SLIDE 8

ROA

Fubon Financial Holdings: ROA & ROE

0.75% 0.88% 1.21% 2012 2013 2014 1.46% 1.38% 9M14 9M15

8

ROE

2012 2013 2014 10.71% 11.54% 16.07% 2012 2013 2014

Note: Fubon adopted fair value method for investment property evaluation since September 2014.

9M14 9M15 20.04% 20.31% 9M14 9M15

SLIDE 9

Performance review by subsidiary

Fubon Life

Performance highlights of Fubon Financial Holdings

Agenda

Taipei Fubon Bank

9

Fubon Life
Fubon Securities
Fubon Insurance
Fubon Bank (China)

SLIDE 10

25.2% 11.7%

Taipei Fubon Bank: Revenue

Revenue composition of Taipei Fubon Bank

NT$bn

Steadily growth from net interest income and net fees

29.2 33.7 44.1 34.3 32.2

Fubon Bank (China) Treasury & others Net fee income Net interest income

50.0% 46.8% 39.3% 28.3% 25.1% 23.7% 21.7% 28.1% 2012 2013 2014

10

29.2

Note: Consolidated basis; Fubon Bank (China) accounted starting from Jan. 7th, 2014

32.2 37.9% 41.5% 24.0% 26.4% 27.0% 19.4% 11.1% 12.7% 9M14 9M15

SLIDE 11

10.4% 9.7% 5.3% 6.3% 6.2% 4.8% Others Syndication 32.1% 14.7% 11.1% DCI,SI,SN and

thers

Mutual funds

Taipei Fubon Bank: Fee and wealth management revenue

Sources of fee revenue(1) Wealth management revenue(2)

NT$mn NT$mn 8,249 8,512 7,062 7,048 78.0% 79.2% 9M14 9M15 Syndication loan Credit card Wealth management 47.0% 50.9% 3.2% 5.9% 35.2% 32.1% 9M14 9M15

thers

Mutual funds Custodian and trust Insurance commission

11

Note: (1) Fee income including Taipei Fubon Bank standalone and Taipei Fubon Bank Life Insurance Agency. (2) Other income related to wealth management revenue are inclusive in the second chart.

SLIDE 12

33.2% 36.8% 3.9% 3.7% 0.6% 0.6% Credit card revolving

Taipei Fubon Bank: Loan composition

Loans by type

NT$bn 1163.7 YoY +2.8% YoY +0.3%

Corporate and mortgage loans continue growing Loan growth excluding government loans reached 8.3%

1,131.9 12.4% 7.7% 49.9% 51.2% 33.2% 36.8% Sep-14 Sep-15 Other consumer loans Mortgage loan Corporate loan Government loan

12

YoY -2.4% YoY +13.8% YoY +5.5% YoY -36.0%

Note: Data are stand-alone basis in page 12-16

SLIDE 13

337.5 340.1 345.2 340.1 346.3 NTD Non-NTD Non-NTD loan as % of corporate loan

Taipei Fubon Bank: Corporate credit

Corporate loan by currency SME credit and as % of corporate credit

NT$bn

Foreign currency loan represents 41.9% of corporate loan in 3Q15 SME credit accounts for 32.4% of corporate credit in 3Q15

NT$bn 210 209 211 SME SME as % of corporate credit 227.6 241.1 243.5 256.8 250.1 40.3% 41.5% 41.4% 43.0% 41.9% 3Q14 4Q14 1Q15 2Q15 3Q15

13

Note: Management account basis. SME credit and corporate credit include loan and trade finance

198 203 30.1% 31.1% 32.0% 31.7% 32.4% 3Q14 4Q14 1Q15 2Q15 3Q15

SLIDE 14

Taipei Fubon Bank: Interest yield and margin

NIM and loan-to-deposit spread

1.07% 1.10% 1.08% 1.24% 1.28% 1.31% NIM Loan-to-deposit spread 1.10% 1.08% 1.27% 1.27%

14

Loan yield and deposit yield

Note: Loan rate calculation inclusive of credit card revolving

1Q15 2Q15 3Q15 2.06% 2.05% 0.79% 0.77% 9M14 9M15 2.05% 2.05% 2.05% 0.81% 0.77% 0.74% 1Q15 2Q15 3Q15 Loan rate Deposit rate 9M14 9M15

SLIDE 15

53.3% 52.3% 46.7% 47.7% Sep-14 Sep-15 Time Demand

Taipei Fubon Bank: Deposit mix and LDR

NTD loan-to-deposit ratio (LDR) Deposit mix in NTD

NT$bn 988 1,068 91.0% 85.0% Sep-14 Sep-15 38.4% 42.2% 61.6% 57.8% Sep-14 Sep-15 Time Demand Sep-14 Sep-15

15

Deposit mix in foreign currency

NT$bn

Foreign currency LDR

376 440 Sep-14 Sep-15 63.5% 59.4% Sep-14 Sep-15

SLIDE 16

Taipei Fubon Bank: Asset quality

NPL ratio Coverage ratio

0.20% 0.17% 0.11% 0.11% 0.12% Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 589.5% 788.6% 1096.0% 1113.1% 1033.5% Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 41

1,027

9M14 9M15 0.0% 0.2% 0.4% 0.6%

Sep-12 Sep-13 Sep-14 Sep-15 Corporate loan Mortgage loan

16

NPL ratio by business Net provision

0.16% 0.02% NT$m Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Net recovery

SLIDE 17

Performance review by subsidiary

Fubon Life

Performance highlights of Fubon Financial Holdings

Agenda

Taipei Fubon Bank

17

Fubon Life
Fubon Securities
Fubon Insurance
Fubon Bank (China)

SLIDE 18

4.3% growth in total premium income Renewal premium accounted for 58.1% of total premium in 9M15

40.6% 49.3% 55.1% Renewal premium 420.7 NT$bn 420.1 425.0

Fubon Life: Total premium

327.3 341.3 51.0% 58.1% 49.0% 41.9% 9M14 9M15 59.4% 50.7% 44.9% 55.1% 2012 2013 2014 Renewal premium FYP

18 18

SLIDE 19

FYP composition

Fubon Life: First year premium (FYP)

Strong FYP growth of 42.7% in 3Q15 qoq, which mainly from traditional life and health & accidents products

NT$bn 1Q15 2Q15 3Q15 9M15 % 9M14 % YoY growth

19

Traditional life: Regular-paid 10.7 14.0 13.0 37.7 26.3% 40.8 25.4%

7.6%

Traditional life: Single-paid 20.8 21.2 32.8 74.9 52.3% 98.0 61.2%

23.6%

Interest-sensitive annuity 1.5 3.3 7.0 11.8 8.2% 5.8 3.6% 103.2% Investment-linked 3.1 3.3 6.7 13.1 9.1% 11.6 7.2% 12.8% Health, accidents and others 1.4 1.8 2.6 5.7 4.0% 4.0 2.5% 42.7% Total 37.4 43.6 62.2 143.2 100.0% 160.2 100.0%

10.6%

SLIDE 20

FYPE growth mainly came from traditional regular-paid policies and health, accidents and

thers policies

VNB grew 3% in 9M15 yoy based on 2014 EV calculation assumptions VNB

Traditional life: Regular-paid Traditional life: Single-paid

FYPE

46.9 NT$bn

Fubon Life: Value of new business (VNB) & First year premium equivalent (FYPE)

47.8 NT$bn

27.6 28.4

8.8% 12.0% 1.2% 2.5% 2.6% 2.9% 20.9% 15.6% 66.5% 67.0% 9M14 9M15 Single-paid Investment-linked Interest-sensitive annuity Health, accidents and

thers

20

29.3% 33.4% FYPE /FYP

9M14 9M15

17.2% 19.8% VNB/ FYP

SLIDE 21

FYP by channel

Fubon Life: Sales channel

Diversified channel strategy Growth of the size in agency force

utperformed peers.

NT$3.2bn of P&C insurance premium sold through agency channel, up 14% yoy 64,182 new credit cards promoted by agency channel

Other Bancassurance: through Taipei Fubon Bank Bancassurance: through external banks Tied agents

21 Number of agency force

29.5% 28.1% 41.9% 36.8% 17.0% 24.2% 11.7% 10.9% 9M14 9M15

16,297 18,178 9M14 9M15

SLIDE 22

Investment income growth outpaced investment assets growth Investment income mainly came from recurring revenue

Fubon Life: Composition of investment income

NT$bn 9M14 9M15 2012 2013* 2014 YoY growth Recurring investment income 67.5 75.7 62.7 75.2 88.7 12.1% Realized gains from fixed income investment 10.6 8.4 7.9 8.0 12.1

20.8%

22 22

Note: *2013 data is on pro forma basis to reflect fair value method for investment property evaluation.

Realized gains from fixed income investment 10.6 8.4 7.9 8.0 12.1

20.8%

Realized gains from equity investment 12.1 23.2 4.7 4.0 14.0 91.7% FX and others

5.9
3.2
6.6
6.3
6.4
45.8%

Fair value movement from investment property 1.3

0.2
5.4

1.4

115.4%

Investment income 85.6 103.9 68.6 86.3 109.9 21.3% Total investment assets 2,466.1 2,747.7 1,932.3 2,227.2 2,588.0 11.4%

SLIDE 23

Investment portfolio repositioned in response to market volatility in 3Q15

Fubon Life: Investment portfolio

2014/9/30 2015/6/30 2015/9/30 NT$bn Deposit and cash equivalent 132.8 5.4% 159.4 6.0% 172.5 6.3% Domestic fixed income 631.5 25.6% 576.3 21.7% 564.3 20.5% 23 23 Overseas fixed income* 1,072.9 43.5% 1,145.0 43.1% 1,304.0 47.5% Domestic equity 256.2 10.4% 262.4 9.9% 213.0 7.8% Overseas equity 119.3 4.8% 213.9 8.1% 172.0 6.3% Mortgage loans 65.9 2.7% 79.4 3.0% 82.9 3.0% Policy loans 50.3 2.0% 51.6 1.9% 53.4 1.9% Real estate 137.1 5.6% 168.6 6.3% 185.7 6.8% Total Investments 2,466.1 100.0% 2,656.5 100.0% 2,747.7 100.0% Domestic 1,273.9 51.7% 1,250.5 47.1% 1,197.0 43.6% Overseas* 1,192.2 48.3% 1,406.0 52.9% 1,550.8 56.4%

Note: *Including OTC-listed international bond, the international bonds investment reached 6.8% of total investment assets as of end-September

SLIDE 24

Fubon Life: Portfolio of Overseas fixed income

Overseas fixed income by region Overseas fixed income by asset type

43.8% 4.7% 3.8%

Others

24.1% 23.8%

24

6.1% 3.5% 45.4% 40.6% 43.8% 52.1% Sep-14 Sep-15

Others Corporate credit Financial bond Government bond

24.8% 17.5% 51.0% 58.7% Sep-14 Sep-15

Asia & Other North America Europe

SLIDE 25

60
28
12

CS cost FX gain/loss & net provision of FX reserve

36
17
29
67
51

108 1Q15 2Q15 3Q15

Hedging cost & FX gain/loss FX position

Fubon Life: Hedging composition

68 bps

78 bps

72 bps
28 bps

Naked USD, 10.2% Other currencies , 1.4% Equities/ mutual funds , 13.2%

9M14 9M15

103 bps

25 25

Recurring return

Fully hedge, 75.2% 3.97% 3.92% 3.67% 3.77%

9M14 9M15 Before hedge After hedge

SLIDE 26

Fubon Life: Positive investment spread widened

Cost of liability improvement and increase in investment return Positive spread between recurring return and breakeven point (net underwriting cost) widened Investment spread Recurring return and breakeven point

5.02% 5.36% Cost of liabilities Investment return 3.67% 3.77%

Breakeven point Recurring return

26 26

Breakeven point = (Profit before tax – Investment income) / Average investment assets

3.89% 3.86% Sep-14 Sep-15 2.90% 2.88% 3.67% Sep-14 Sep-15

SLIDE 27

22.4

24.6
4.2

3.0 11.5 21.3

Movement of unrealized gains from AFS assets

Fubon Life: Net worth

Movement of unrealized gains driven by market volatility Meaningful recovery in the unrealized position by Oct-end

NT$bn 38.5 Realized losses Equity dividend Realized gains 192.5 223.6 247.4 208.8 172.5 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15

24.6

0.9 21.3

27 27

Net worth of Fubon Life

NT$bn Jun-15 Mark to market Mark to market Sep-15 Oct-15 gains

SLIDE 28

Performance review by subsidiary

Fubon Life

Performance highlights of Fubon Financial Holdings

Agenda

Taipei Fubon Bank

28

Fubon Life
Fubon Securities
Fubon Insurance
Fubon Bank (China)

SLIDE 29

9.4% 9.7%

Others

Net combined ratio

NT$bn

Top 1 position in premium market share at 22.5% Solid earnings and operating performance

Fubon Insurance: Operating snapshot

Direct written premium by product

21.9 22.8 89.6% 87.9% 53.5% 53.9% 34.4% 35.7% 9M14 9M15

Net expense ratio Net claim ratio

47.1% 48.3% 19.7% 17.5% 5.9% 6.2% 3.7% 3.4% 14.1% 14.9% 9M14 9M15

Others Health/Injury Engineering Marine Fire Auto

29 29

Note: Standalone basis Note: Exclusive of auto compulsory due to the claims are reimbursed.

SLIDE 30

Performance review by subsidiary

Fubon Life

Performance highlights of Fubon Financial Holdings

Agenda

Taipei Fubon Bank

30

Fubon Life
Fubon Securities
Fubon Insurance
Fubon Bank (China)

SLIDE 31

Fubon Securities: Financial highlights

Market share & ranking Stable market position in major business lines Growth in wealth management business Underwriting business catching up momentum

9M15 Ranking 9M14 Ranking

Brokerage per branch

0.09% #2 0.10% #2

Emerging stock trading

16.42% #2 18.94% #2

Brokerage

5.13% #3 5.81% #3

SPO amount

11.16% #3 7.37% #4

AUM of WM business (NT$mn)

12,831 #4

31

Operating revenue

NT$m

Net profits

business (NT$mn)

12,831 #4

4,642

4,229 9M14 9M15 1,246 788 9M14 9M15 NT$m

SLIDE 32

Performance review by subsidiary

Fubon Life

Performance highlights of Fubon Financial Holdings

Agenda

Taipei Fubon Bank

32

Fubon Life
Fubon Securities
Fubon Insurance
Fubon Bank (China)

SLIDE 33

71.4% 68.2% 77.1% 28.6% 31.8% 22.9% Sep-14 Jun-15 Sep-15 Rediscount Loans (excluding rediscount)

Fubon Bank (China): Key balance sheet items

Deposits Loans

RMB$m 31,278 29,813 38,920 41,185 41,222 Sep-14 Jun-15 Sep-15 29,493 Sep-14 Jun-15 Sep-15

33

Assets Net worth

Sep-14 Jun-15 Sep-15 56,620 65,541 69,033 Sep-14 Jun-15 Sep-15 4,433 4,669 4,791 Sep-14 Jun-15 Sep-15

SLIDE 34

Fubon Bank (China): Financial highlight

NIM Net Profits

RMB$m 105 112 135 3Q14 2Q15 3Q15 1.86% 1.92% 1.85% 3Q14 2Q15 3Q15

34

ROAA & ROAE NPL ratio & Coverage ratio

Note: ROAA and ROAE are annualized basis

3Q14 2Q15 3Q15 0.94% 1.03% 1.13% 264.7% 252.2% 228.8% Sep-14 Jun-15 Sep-15 NPL Coverage ratio 0.73% 0.71% 0.80% 9.57% 9.72% 11.39% 3Q14 2Q15 3Q15 ROAA ROAE 3Q14 2Q15 3Q15

SLIDE 35

Thank you

SLIDE 36

Fubon Financial - Financial summary

(Pro Forma)

NT$ millions, except for percentages 2013 2014 YoY 9M14 9M15 YoY 1Q15 2Q15 3Q15 Income Statement Data Net interest income 73,264 89,242 21.8% 66,141 69,521 5.1% 22,241 22,387 24,893 Insurance income 266,247 230,938

13.3%

176,681 186,741 5.7% 45,819 56,538 84,384 Net gains (losses) on FX and financial assets 37,776 59,792 58.3% 48,684 64,887 33.3% 19,236 22,537 23,114 Others 2,895 1,863

35.6%

2,347 (2,610) N.M. 515 (1,043) (2,082) Net revenue 380,182 381,835 0.4% 293,853 318,539 8.4% 87,811 100,420 130,308 Bad debt expense and reserve for guarantee 4,083 2,989

26.8%

828 (522) N.M. 6 (617) 89 Net change in insurance reserve (288,362) (257,599)

10.7%

(194,512) (209,840) 7.9% (50,667) (61,766) (97,407) Operating expense (43,539) (49,299) 13.2% (35,837) (38,935) 8.6% (12,454) (13,117) (13,364) Operating expense (43,539) (49,299) 13.2% (35,837) (38,935) 8.6% (12,454) (13,117) (13,364) Income before tax 44,199 71,949 62.8% 62,676 70,286 12.1% 24,684 26,154 19,448 Net income 38,464 60,483 57.2% 53,772 58,347 8.5% 20,143 22,027 16,177 Net income to parent company 38,514 60,248 56.4% 53,578 58,143 8.5% 20,094 21,959 16,090 Balance Sheet Data Total assets 4,596,972 5,438,358 18.3% 5,206,759 5,860,919 12.6% 5,554,450 5,575,005 5,860,919 Equity attributable to parent company 341,678 408,057 19.4% 371,087 355,526

4.2%

439,713 383,657 355,526 Outstanding shares (million shares) 10,234 10,234 0.0% 10,234 10,234 0.0% 10,234 10,234 10,234 Key Metrics Return on average assets 0.88% 1.21% 1.46% 1.38% 1.47% 1.60% 1.15% Return on average equity 11.54% 16.07% 20.05% 20.31% 18.96% 22.19% 16.86% Equity / assets 7.44% 7.65% 7.28% 6.21% 8.06% 7.03% 6.21% Double leverage 115.29% 114.01% 115.29% 121.04% 113.10% 119.36% 121.04% Capital adequacy ratio 141.53% 137.36% Cash dividend per share 1.50 3.00

SLIDE 37

Taipei Fubon Bank - Financial summary

(Pro Forma)

NT$ millions, except for percentages 2013 2014 YoY 9M14 9M15 YoY 1Q15 2Q15 3Q15 Income statement data Interest income 27,680 45,157 63.1% 33,770 34,919 3.4% 11,441 11,572 11,906 Interest expense (11,904) (22,964) 92.9% (17,146) (17,710) 3.3% (6,118) (5,763) (5,830) Net interest income 15,775 22,194 40.7% 16,624 17,209 3.5% 5,324 5,809 6,076 Net fee income 8,445 10,967 29.9% 8,625 8,919 3.4% 3,067 2,963 2,890 Other income 9,471 10,914 15.2% 9,029 6,074

32.7%

1,943 2,128 2,003 Total revenue 33,691 44,075 30.8% 34,277 32,202

6.1%

10,333 10,900 10,969 Operating expenses (15,582) (19,287) 23.8% (13,843) (15,153) 9.5% (4,903) (5,084) (5,166) Pre-provision profits 18,109 24,788 36.9% 20,434 17,049

16.6%

5,430 5,816 5,803 Provision for credit losses (3,857) (2,261)

41.4%

(231) 1,102 N.M. 209 740 153 Income before tax 14,252 22,527 58.1% 20,203 18,151

10.2%

5,639 6,556 5,956 Net income 12,153 19,136 57.5% 17,270 15,764

8.7%

5,048 5,610 5,105 Net income 12,153 19,136 57.5% 17,270 15,764

8.7%

5,048 5,610 5,105 Net income to parent company 12,153 18,242 50.1% 16,574 15,051

9.2%

4,873 5,372 4,806 Balance sheet data Loans and discounts 1,102,747 1,304,563 18.3% 1,274,217 1,357,185 6.5% 1,339,635 1,329,011 1,357,185 Deposits and remittances 1,351,974 1,606,174 18.8% 1,557,593 1,751,102 12.4% 1,622,975 1,675,802 1,751,102 Allowance for loan losses* 13,218 15,483 17.1% 13,650 13,965 2.3% 14,575 14,018 13,965 Total assets 1,766,806 2,165,405 22.6% 2,089,583 2,387,116 14.2% 2,191,409 2,211,637 2,387,116 Equity attributable to parent company 134,236 151,604 12.9% 149,022 163,712 9.9% 156,178 157,422 163,712 Key metrics Return on average assets 0.72% 0.97% 1.19% 0.92% 0.93% 1.03% 0.90% Return on average equity 10.06% 12.76% 15.60% 12.73% 12.67% 13.91% 12.19% Equity / assets 7.60% 7.88% 8.01% 7.70% 7.99% 7.98% 7.70% Cost / income ratio

46.25%
43.76%
40.39%
47.06%
47.45%
46.64%
47.10%

NPL ratio* 0.12% 0.17% 0.20% 0.12% 0.11% 0.11% 0.12% Reserve / NPL* 973.96% 788.58% 589.50% 1033.47% 1095.99% 1113.09% 1033.47% Tier 1 ratio* 10.38% 10.43% 11.22% BIS ratio* 13.45% 13.11% 13.76% Note: Data mark with * are stand-alone basis

SLIDE 38

Fubon Life - Financial summary

(Pro Forma)

NT$ millions, except for percentages 2013 2014 YoY 9M14 9M15 YoY 1Q15 2Q15 3Q15 Income statement data First year premium 212,818 190,974

10.3%

160,232 143,174

10.6%

37,418 43,604 62,152 Retained earned premium 386,587 390,077 0.9% 299,383 317,418 6.0% 92,422 99,205 125,791 Total investment income 86,280 109,876 27.3% 85,588 103,874 21.4% 34,591 36,376 32,907 Recurring investment income 75,171 88,695 18.0% 67,531 75,714 12.1% 19,736 22,885 33,093 Other investment income 11,108 21,181 90.7% 18,058 28,160 55.9% 14,855 13,491 (186) Realized gains (losses) from fixed income 7,984 12,127 51.9% 10,601 8,351

21.2%

6,872 4,112 (2,633) Realized gains (losses) from equity 4,037 14,021 247.3% 12,131 23,234 91.5% 11,331 12,271 (368) FX and others (6,270) (6,413) 2.3% (5,938) (3,209)

46.0%

(3,541) (2,969) 3,301 Investment property fair value movement 5,357 1,446

73.0%

1,264 (216) N.M. 193 77 (486) Other income 2,868 2,006

30.0%

1,416 1,511 6.7% 367 458 686 Total operating revenue 475,735 501,960 5.5% 386,387 422,803 9.4% 127,381 136,038 159,383 Retained claim payment 126,814 168,249 32.7% 129,661 139,866 7.9% 49,610 45,926 44,330 Net commission expense 21,744 23,215 6.8% 18,028 18,992 5.3% 5,378 6,300 7,314 Net change in insurance liability 286,668 253,157

11.7%

191,712 205,008 6.9% 51,576 61,948 91,483 Net change in insurance liability 286,668 253,157

11.7%

191,712 205,008 6.9% 51,576 61,948 91,483 General and administrative expense 12,222 13,652 11.7% 10,112 10,854 7.3% 3,491 3,601 3,761 Other expenses 897 1,078 20.2% 723 1,491 106.3% 379 664 447 Total operating costs and expenses 448,344 459,352 2.5% 350,237 376,211 7.4% 110,435 118,440 147,336 Net non-operating income / (expenses) 477 222

53.5%

369 377 2.2% 144 91 141 Income before tax 26,260 41,296 57.3% 35,366 45,831 29.6% 16,710 17,309 11,812 Net income 25,007 35,367 41.4% 31,253 38,849 24.3% 13,252 15,827 9,770 Net income to parent company 25,007 35,367 41.4% 31,253 38,849 24.3% 13,252 15,827 9,770 Balance sheet data Total assets 2,435,617 2,790,427 14.6% 2,661,325 2,951,402 10.9% 2,845,002 2,843,190 2,951,402 Total assets (general account) 2,293,859 2,653,199 15.7% 2,524,955 2,821,057 11.7% 2,708,199 2,709,001 2,821,057 Insurance liabilities 1,986,309 2,257,099 13.6% 2,182,434 2,478,613 13.6% 2,303,213 2,361,552 2,478,613 Total liabilities 2,265,425 2,566,830 13.3% 2,468,788 2,778,892 12.6% 2,597,645 2,634,408 2,778,892 Total liabilities (general account) 2,123,667 2,429,603 14.4% 2,463,780 2,648,546 7.5% 2,460,842 2,500,220 2,648,546 Equity attributable to parent company 170,192 223,597 31.4% 192,537 172,511

10.4%

247,357 208,781 172,511 Key matrices Return on average assets 1.09% 1.35% 1.64% 1.80% 1.88% 2.25% 1.36% Return on average equity 14.84% 17.96% 22.98% 26.15% 22.51% 29.28% 19.73% Equity / Assets 6.99% 8.01% 7.23% 5.85% 8.69% 7.34% 5.85% Claims and benefits ratio 32.80% 43.13% 43.31% 44.06% 53.68% 46.29% 35.24% Expense ratio 3.16% 3.50% 3.38% 3.42% 3.78% 3.63% 2.99% Persistency ratio - 13th month 94.40% 95.12% 94.97% 94.57% 95.24% 95.22% 94.57% Persistency ratio - 25th month 91.17% 89.67% 89.40% 90.71% 90.13% 90.43% 90.71%

SLIDE 39

Fubon Insurance - Financial summary

(Pro Forma)

NT$ millions, except for percentages 2013 2014 YoY 9M14 9M15 YoY 1Q15 2Q15 3Q15 Income statement data Direct written premiums 29,448 32,718 11.1% 24,355 26,142 7.3% 8,150 9,540 8,452 Retention of earned premiums 22,152 24,653 11.3% 18,169 20,307 11.8% 6,450 6,833 7,024 Net income from investment 2,671 2,498

6.5%

2,062 2,326 12.8% 735 852 739 Other operating revenue 877 1,082 23.3% 781 932 19.3% 297 304 331 Retained insurance payments 11,517 13,128 14.0% 9,302 10,363 11.4% 3,218 3,348 3,796 Net change in liability reserve 731 626

14.4%

930 985 5.9% 352 256 377 Commission and operating expenses 9,899 11,363 14.8% 8,122 9,266 14.1% 2,885 3,203 3,178 Commission and operating expenses 9,899 11,363 14.8% 8,122 9,266 14.1% 2,885 3,203 3,178 Non-Operating Income (67) (109) 63.2% (71) (87) 21.6% (22) (29) (36) Income before tax 3,485 3,007

13.7%

2,588 2,865 10.7% 1,005 1,153 707 Net income 2,911 2,420

16.9%

2,100 2,354 12.1% 826 962 566 Net income to parent company 3,244 2,816

13.2%

2,372 2,619 10.4% 895 1,050 674 Balance sheet data Total assets 78,325 83,349 6.4% 80,807 90,125 11.5% 86,170 87,732 90,125 Investment assets 58,420 60,362 3.3% 58,247 64,278 10.4% 63,377 61,978 64,278 Policy reserve 40,586 44,930 10.7% 44,507 48,059 8.0% 45,445 47,350 48,059 Equity attributable to parent company 28,313 27,665

2.3%

26,235 28,099 7.1% 30,057 28,829 28,099 Summary ratios Return on average assets 3.88% 3.07% 3.52% 3.62% 3.90% 4.50% 2.61% Return on average equity 12.96% 10.06% 11.59% 12.52% 12.40% 14.87% 9.67% Total investment return 4.92% 4.21% 4.71% 4.98% 4.83% 5.57% 4.74% Solvency margin (NWP/equity) 81.69% 94.11% 97.83% 99.39% 87.28% 104.81% 97.27% Retention ratio 75.36% 76.11% 75.81% 75.24% 76.42% 74.35% 75.13%

SLIDE 40

Fubon Securities - Financial summary

(Pro Forma)

NT$ millions, except for percentages 2013 2014 YoY 9M14 9M15 YoY 1Q15 2Q15 3Q15 Income statement data Brokerage commissions 2,636 3,204 21.5% 2,391 2,254

5.7%

692 790 771 Net interest income 827 932 12.7% 690 723 4.6% 247 274 202 Fee income 271 157

42.1%

123 56

54.7%

19 26 11 Net principal transactions and financial products gains 872 575

34.1%

436 (9) N.M. 348 (92) (266) Other income 1,018 1,089 7.0% 1,004 1,208 20.3% 182 399 626 Total operating revenue 5,619 5,955 6.0% 4,642 4,229

8.9%

1,488 1,398 1,345 Total operating expense (4,774) (5,146) 7.8% (3,765) (3,811) 1.2% (1,214) (1,305) (1,292) Net non-operating income / (expenses) 590 15.1% 9.7% 128 180 193 Net non-operating income / (expenses) 590 678 15.1% 457 501 9.7% 128 180 193 Income before tax 1,434 1,488 3.7% 1,334 919

31.1%

402 272 245 Net income 1,370 1,356

1.0%

1,246 788

36.7%

362 193 233 Net income to parent company 1,370 1,356

1.0%

1,246 788

36.7%

362 193 233 Balance sheet data Margin loans 14,581 16,338 12.1% 16,907 10,219

39.6%

17,830 15,185 10,219 Total assets 57,768 69,957 21.1% 66,759 81,215 21.7% 81,455 83,085 81,215 Equity attributable to parent company 30,455 31,333 2.9% 31,080 31,064

0.1%

32,046 31,146 31,064 Key metrics Return on average assets 2.42% 2.12% 2.67% 1.39% 1.91% 0.94% 1.13% Return on average equity 4.56% 4.39% 5.40% 3.37% 4.57% 2.45% 3.00% Equity / assets 52.7% 44.79% 46.56% 38.25% 39.34% 37.49% 38.25% Expenses / revenues

85.0%
86.41%
81.12%
90.12%
81.60%
87.30%
90.12%

Margin loans / total assets 25.2% 23.35% 25.33% 12.58% 21.89% 18.28% 12.58% Margin loans / shareholders' equity 47.9% 52.14% 54.40% 32.90% 55.64% 48.75% 32.90%

SLIDE 41

Fubon Bank (China) - Financial Summary

RMB millions, except for percentages 2013 2014 YoY 9M14 9M15 YoY 1Q15 2Q15 3Q15 Income Statement Data Interest income 2,243 2,425 8.1% 1,856 1,680

9.5%

572 559 550 Interest expense (1,361) (1,846) 35.7% (1,388) (1,476) 6.4% (515) (482) (480) Net interest income 882 579

34.4%

468 204

56.4%

57 77 70 Net fee income 157 141

10.0%

105 96

8.8%

30 34 31 Other income (40) 250 N.M. 143 447 213.2% 101 156 190 Operating expenses (322) (378) 17.4% (258) (340) 31.9% (101) (120) (120) Pre-provision profits 677 591

12.7%

458 406

11.2%

88 147 172 Provision for credit losses (337) (59)

82.4%

(42) 15 N.M. 18 (4) 1 Income before tax 341 532 56.2% 415 421 1.4% 106 143 173 Income before tax 341 532 56.2% 415 421 1.4% 106 143 173 Net income 277 422 52.4% 329 331 0.7% 84 112 135 Balance Sheet Data Loans 31,031 31,163 0.4% 31,278 29,813

4.7%

28,237 29,493 29,813 Deposits 44,070 42,063

4.6%

38,920 41,222 5.9% 37,882 41,185 41,222 Total assets 49,401 61,604 24.7% 56,620 69,033 21.9% 60,885 65,541 69,033 Total equity 3,062 4,547 48.5% 4,433 4,791 8.1% 4,578 4,669 4,791 Key metrics Return on average assets 0.59% 0.76% 0.83% 0.68% 0.55% 0.71% 0.82% Return on average equity 9.39% 11.09% 11.70% 9.46% 7.39% 9.75% 11.54% Equity / assets 6.20% 7.38% 7.83% 6.94% 7.52% 7.12% 6.94% Cost / income ratio

28.99%
35.08%
32.46%
41.70%
48.02%
41.27%
37.86%

NPL ratio 0.86% 0.89% 0.94% 1.13% 1.17% 1.03% 1.13% Reserve / NPL 290.53% 282.25% 264.71% 228.81% 230.00% 252.23% 228.81% Loan to deposit ratio 71.07% 70.13% 72.15% 69.32% 68.74% 69.10% 69.32% Tier 1 ratio 11.02% 13.93% 16.17% 12.72% 13.65% 13.04% 12.72% BIS ratio 12.16% 15.08% 17.31% 13.87% 14.80% 14.19% 13.87%