(Bloomberg: 2880 TT)...2Q 2016 Analyst Meeting (Bloomberg: 2880 TT) Senior Vice President & General...

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2016/8/24

HNFHC 2Q 2016 Analyst Meeting (Bloomberg: 2880 TT)

Senior Vice President & General Manager

Mr. King-huo Lu

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• This document is provided by Hua Nan Financial Holdings Co. Ltd. (“HNFHC”). The information contained in this document is not audited or reviewed by any accountant or any independent expert. HNFHC makes no warranties or representations expressly or impliedly as to the fairness, accuracy, completeness or correctness of such information or opinions. The document is provided as of the date herein and will not be updated to reflect any change hereafter. No responsibility is accepted by HNFHC, its affiliates and their representatives, no matter for their negligence or any other reason, for any loss or damages arising from the use of this document or the information contained herein or anything related to this document.

• This document may contain forward-looking statements, including but not limited

to all statements that address activities, events or developments that HNFHC expects or anticipates to occur in the future, which is based on the projects of HNFHC toward the future, and various factors and uncertainness beyond HNFHC’s control. Therefore, the actual results may differ materially from those contained in the forward-looking statements.

• This document do not constitute a public offer under any applicable legislation or

an offer to sell or solicitation of an offer to buy any securities or financial instruments.

• This document may not be directly or indirectly reproduced, redistributed or

forwarded to any other person and my not be published in whole or in part for any purpose.

Disclaimer

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Operating Results – HNFHC……...…....P.6

Operating Results – Subsidiaries……...P.9

Asset Quality…………………………......P.19

Outlook………………..………………......P.23

2Q2016 Highlights………………..……...P.4

Agenda

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2Q2016 Highlights

5

Performance

HNFHC Profits Rise Moderately

Group’s net income of NT$7,692 million and the EPS of NT$0.78 represents 1% growth YoY compared to the audited net income of NT$7,585 million in 6M2015. Core earnings of HNCB’s Net Revenue grew 5% YoY. From NT$17,156 million in 6M2015 to NT$17,974 million in 6M2016.

HNCB Overall Spread On the Widening trend

Thanks to the robust FX loans demand, HNCB’s Overall Spread were widen compared to the year ago. Overall spread rose 4bp from 1.43% in June 2015 to 1.47% in June 2016.

Expand Overseas Operation

HNCB submitted the application for Myanmar Representative Office in March, 2016. In addition in May, 2016 FSC approved Philippines Manila Branch application. 35.96% of HNCB revenue were from overseas networks in June, 2016.

Innovative Financial Products & Services

HNCB launched National Taiwan University i-Branch in June, 2016 to transforms customer experience in digital banking. Furthermore cardless cash withdraw by using mobile phone were available in selected ATMs.

2Q2016 Highlights

Note：Both 2Q2016 and 6M2016 figures were preliminary based on IFRS. The others were audited based on IFRS.

6

Operating Results – HNFHC

7

(NT$mn or NT$ dollar) 1Q2016 2Q2016 QoQ 6M2015 6M2016 YoY

Net income 3,689 4,003 9% 7,585 7,692 1%

Total assets 2,393,863 2,499,482 4% 2,270,054 2,499,482 10%

Book value 156,779 155,485 -1% 145,909 155,485 7%

EPS 0.37 0.41 11% 0.77 0.78 1%

Book value per share 15.83 15.70 -1% 15.64 15.70 0%

Capital stock 99,063 99,063 0% 93,280 99,063 6%

ROA(%) 0.62 0.65 0.03 0.67 0.63 -0.04

ROE(%) 9.52 10.26 0.74 10.47 9.97 -0.50

CAR(%) 141.78 123.22 -18.56 138.85 123.22 -15.63

Double Leverage Ratio(%) 113.49 111.63 -1.86 108.41 111.63 3.22

Debt/Equity Ratio(%) 14.46 18.48 4.02 15.47 18.48 3.01

HNFHC-Net Income Grew Both In QoQ and YoY


8

(NT$mn)

1Q2016

Net

Income

2Q2016

Net

Income

QoQ

6M2015

Net

Income

6M2016

Net

Income

YoY

HNCB 3,688 3,770 2% 7,269 7,458 3%

HNSC 48 94 96% 275 141 -49%

SCIC 83 184 122% 315 268 -15%

HNIT 14 6 -57% 12 20 67%

HNVC 3 (1) -133% (6) 2 n/a

HNAMC 14 33 136% 28 47 68%

Total 3,850 4,086 6% 7,893 7,936 1%

Subsidiaries-Operating Results

Net income contribution (6M2015) Net income contribution (6M2016)


92%

4% 4%

0% 0%

0%

HNCB HNSC SCIC HNIT HNVC HNAMC

94%

2% 3%

0% 0%

1%

HNCB HNSC SCIC HNIT HNVC HNAMC

9

Operating Results - Subsidiaries

10

13.28%12.37% 12.17%

9.88% 9.00% 9.25%

2015 6M2015 6M2016

CAR Tier 1

132.41

72.69 74.58

2015 6M2015 6M2016

Net Income

9.01%10.43% 9.69%

0.58% 0.55% 0.63%

2015 6M2015 6M2016

ROE (after tax) ROA (after tax)

5.60% 5.59%5.85%5.87% 5.89%

6.00%

2015 6M2015 6M2016

Deposits Loans

HNCB-Operating Results

Profitability Market Share

Returns CAR & Tier I

Note：6M2016 figures were preliminary based on IFRS. The others were audited based on IFRS.

Unit: NT$100mn

11

1371,164

2,882

12,973

6201,457

2,956

12,941

NII Fee Income Financial Assets and

Liabilities

Others

6M2015 6M2016

+3%

Net Revenue

6M2015 6M2016 YoY

17,156 17,974 + 5 % -0.25%

+353% +25%

HNCB-Net Revenue Grew 5% YoY

Unit: NT$mn


12

1.39% 1.39% 1.39% 1.40% 1.40% 1.41% 1.42%1.40% 1.39%

1.46%

1.57%1.58%1.52%

1.68%1.64%1.62%

1.85%1.83%

2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016

Spread (NTD) Spread (FX)

1.40% 1.42% 1.43% 1.42% 1.43% 1.44% 1.46% 1.47% 1.47%

1.09% 1.11%1.11%1.10% 1.08%1.09%1.09%1.04%

1.06%

2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016

Spread (Overall) NIM

HNCB-Spread On The Widening Trend

Spread (FX) YoY+23bp

Spread (NTD)

YoY-1bp

Spread (Overall) YoY+4bp

13

2,266

7,052 7,074 7,189

5,762 5,780 5,776

1,849 2,104

2Q2015 1Q2016 2Q2016

Overseas & OBU Corporate Consumer

YoY +4 %

39%

48%

13%

47%

39%

14%

47%

38%

15%

15,231

9,426 9,878 10,223

5,343 5,271 5,593

2Q2015 1Q2016 2Q2016

Demand Deposit Time Deposit

36% 35%

64% 65%

14,663 14,769

35%

65%

15,149 14,958 15,816

Loan-Deposit Ratio 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 79.72% 79.70% 77.77% 77.35% 75.24%

QoQ +2 %

HNCB-Loans Grew 4% YoY Unit:NT$100mn

NTD Deposits Breakdown Total Loans Breakdown

NTD Demand Deposit Ratio 65 %

14

500

2,314

4,361

14

4,937

839

631

2,248

4,163

10

4,953

809

1,8492,266

2Q2015 2Q2016

Overseas &OBUOtherConsumerMortgage

Other Corp.LoanSME

Large Corp.

Government

15,231

4 %

15 %

34 %

15 %

3 %

29 %

32 %

6 %

14,663

+3%

YoY +4 %

+5%

13 %

6 %

28 %

15 %

+4%

-21%

-0.3%

+23%

HNCB-Overseas & OBU Loans Grew Strongly

Government

SME

Large Corp.

Overseas & OBU

Mortgage

Other Consumer

Unit:NT$100mn

15

245157217

552

1,711

171230

594

1,729

232

Wealth

Management

F/X Loans Credit Cards Others

6M2015 6M2016

Net Fee Income

6M2015 6M2016 YoY

2,882 2,956 + 3 % +1%

+9% +6% -5% +8%

HNCB-Net Fee Income Grew 3% YoY

Unit: NT$mn


16

350 417

2,914 2,890

5,596 5,782

6M2015 6M2016

Employee Benefits Depreciation and amortizationOther general admin expenses

8,860 9,089

YoY + 3%

8,860 9,089

17,97417,156

6M2015 6M2016

Net Revenue Operating Expenses

51.64% 50.57%

YoY - 1.07%

HNCB- Cost Income Ratio

Unit: NT$mn

Operating Expenses Cost-Income Ratio


17

3.51 2.75

1.41

2015 6M2015 6M2016

Net Income

4.62%

2.97%2.42%

1.24% 0.99%

1.90%

2015 6M2015 6M2016

ROE(after tax)

ROA(after tax)

2.58%2.62% 2.67%

2015 6M2015 6M2016

Brokerage

3.45%3.53%3.50%

2015 6M2015 6M2016

Margin Lending

HNSC-Operating Results

Profitability Brokerage Market Share

Returns Margin Lending Market Share


Unit: NT$100mn

18

5.80%6.24%

6.03%

2015 6M2015 6M2015

Written Premium Market Share

59.24%59.07%59.37%

33.72%32.37%35.47%

2015 6M2015 6M2016

Net Claim Ratio Net Expense Ratio

15.17%16.22%

12.68%

3.87% 4.04% 3.20%

2015 6M2015 6M2016

ROE(after tax) ROA(after tax)94.84%

報酬率

91.44% 92.96%

78.46

42.79 44.85

2015 6M2015 6M2016

Written Premium

SCIC-Operating Results

Gross Written Premium Unit: NT$100mn


Market Share

Net Combined Ratio

19

Asset Quality

20

31 31 30 35 40

0

50

100

2Q15 3Q15 4Q15 1Q16 2Q16

6M2015 6M2016 YoY

Provision 551 873 + 58 %

Write-Off 1,002 998 - 0.4 %

Recovery 705 528 - 25 %

Reserve 16,318 16,188 - 0.8 %

YoY+900 million

0.21% 0.21% 0.21% 0.23%0.26%

528.72% 538.61% 537.90%

448.85% 400.74%

200%250%300%350%400%450%500%550%600%650%700%750%800%850%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

2Q15 3Q15 4Q15 1Q16 2Q16

NPL ratio Coverage ratio

HNCB-Asset Quality

Unit: NT$mn


NPL Unit: NT$100mn

NPL Ratio & Coverage Ratio

21

17 15 17 20 24

0.42%0.37% 0.41%

0.48%0.56%

051015202530

0.00%0.20%0.40%0.60%0.80%1.00%

2Q15 3Q15 4Q15 1Q16 2Q16

YoY+200 million YoY+0.14%

20.5 0.7

1.6 1.60.07%

0.02% 0.03%0.07% 0.07%

00.511.522.53

0.00%0.05%0.10%0.15%0.20%

2Q15 3Q15 4Q15 1Q16 2Q16

0 0 0.211

00

0.51

1.52

2Q15 3Q15 4Q15 1Q16 2Q16

5 4 711

7

02468

1012

2Q15 3Q15 4Q15 1Q16 2Q16

HNCB-Corp. NPL

Large Corp. NPL ratio & NPL

Unit: NT$100mn

Large Corp. New NPL formation

Unit: NT$100mn

SME NPL ratio & NPL

Unit: NT$100mn

SME New NPL formation

Unit: NT$100mn

22

411

8 10

11

0.18%

0.22%

0.16%0.20%

0.22%

0

5

10

15

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

2Q15 3Q15 4Q15 1Q16 2Q16

YoY+0.04%

3

8

3 3 3

02468

10

2Q15 3Q15 4Q15 1Q16 2Q16

HNCB-Mortgage NPL Unit: NT$100mn

Mortgage NPL ratio & NPL Mortgage New NPL formation

23

Outlook

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Strategy & Achievement

A First-Class

Regional Financial Holding Company 4. Boost Cross-Selling Capabilities

28% of subsidiary's business is contributed by cross-selling

1. Diversify Source of Income 36% of HNFHC income were from non interest income

2. Balance Group’s Profit Contribution 6% of revenue contributed by non-bank subsidiaries

Vision Strategy and Achievement in 2Q2016

3. Expand Overseas Operation 36% of HNCB revenue were from overseas networks

5. Strengthen Capital Levels HNFHC CAR：123.22%

HNCB CAR：12.17% & HNCB Tier 1：9.25%

25

HNCB & Other

Subsidiaries

HNCB Diversify Source of Income: By enhancing Wealth Management Services, deepen

credit cards products and services offering, seeking higher investment returns and boost cross selling activities to raise non interest income.

Expand Overseas Operation: HNCB formally submitted the application to open Philippines Manila Branch to the BSP in July. When the branch opens, it will allow us to tap into the fast growing Philippines domestic market.

Innovative Financial Products & Services: HNCB launched “Smart and Young”(SnY) Digital Banking account in July to help the younger one to achieve their life time goal.

Outlook

HNSC Diversify Source of Income: Promote Wealth Management Services by offering

products such as securities lending, insurance, mutual funds and trust. Expand Overseas Operation: Develop HNSC’s knowhow into the South East

Asia region by seeking qualified securities house in Vietnam. As well as leveraging the OSU capabilities.

Digital channel transformation: By training the existing securities sales force to become qualified wealth management advisor. The value added process shall enhance customer loyalty given the digital channel are increasingly taking over the role of existing brick & mortar channel.

SCIC Diversify Source of Income: Develop new sales channel to increase personal

insurance market share. Expand Overseas Operation: As OIU open its door for business, which will allow

SCIC to participate business opportunities internationally and diversify the associated risks.

Innovative Financial Products & Services: Optimizing internet platform to increase sales from digital channels.

26

Q & A

27

Appendix

28

HNFHC Condensed Consolidated Income Statements

Expressed In Millions of New Taiwan Dollars, Except Earnings Per Share

2014 2015 Change 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 Change 6M2015 6M2016 Change

(%) (%) (%)

Interest Income 39,285 39,826 1.38% 10,045 10,109 9,888 9,784 9,734 9,939 2.11% 20,154 19,673 -2.39%

Interest Expense (13,762) (13,506) -1.86% (3,433) (3,406) (3,359) (3,308) (3,220) (3,209) -0.34% (6,839) (6,429) -6.00%

Interest Income, Net 25,523 26,320 3.12% 6,612 6,703 6,529 6,476 6,514 6,730 3.32% 13,315 13,244 -0.53%

Service fee and commission income, net 7,510 7,299 -2.81% 1,828 1,802 1,686 1,983 1,617 2,090 29.25% 3,630 3,707 2.12%

Income from insurance premiums, net 2,301 2,581 12.17% 765 792 540 484 868 733 -15.55% 1,557 1,601 2.83%Gains(losses) on financial assets and

liabilities at fair value through profit or

loss

4,156 3,611 -13.11% (785) (631) 4,710 317 (1,236) 1,267 -202.51% (1,416) 31 -102.19%

Realized gains(losses) of available-for-

sale financial assets676 642 -5.03% 214 102 361 (35) 210 140 -33.33% 316 350 10.76%

Realized gains or losses on held-to-

maturity financial assets0 0 - 0 0 0 0 0 0 - 0 0 -

Share of the profit or loss of associates

and joint ventures(5) (7) 40.00% (2) (1) 0 (4) (2) 0 -100.00% (3) (2) -33.33%

Gains on investment properties 274 254 -7.30% 47 67 65 75 91 108 18.68% 114 199 74.56%

Foreign exchange gains, net (2,124) (2,077) -2.21% 1,157 926 (4,268) 108 1,607 (867) -153.95% 2,083 740 -64.47%

Impairment loss (89) 5 -105.62% 0 2 (12) 15 0 4 - 2 4 100.00%

Other non-interest income 595 956 60.67% 142 299 440 75 606 325 -46.37% 441 931 111.11%

Net Income Excluding Interest Income 13,294 13,264 -0.23% 3,366 3,358 3,522 3,018 3,761 3,800 1.04% 6,724 7,561 12.45%

Net Revenues 38,817 39,584 1.98% 9,978 10,061 10,051 9,494 10,275 10,530 2.48% 20,039 20,805 3.82%

Bad-debt expenses (1,640) (1,187) -27.62% (126) 238 (1,053) (246) (109) (251) 130.28% 112 (360) -421.43%

Provisions for the insurance reserve (307) (388) 26.38% (249) (210) (53) 124 (345) (110) -68.12% (459) (455) -0.87%

Operating Expenses (21,321) (21,814) 2.31% (5,296) (5,490) (5,359) (5,669) (5,503) (5,667) 2.98% (10,786) (11,170) 3.56%

Employee Benefits (13,952) (13,697) -1.83% (3,352) (3,456) (3,314) (3,575) (3,510) (3,536) 0.74% (6,808) (7,046) 3.50%

Depreciation and amortization (923) (927) 0.43% (219) (215) (238) (255) (264) (275) 4.17% (434) (539) 24.19%

Other general and administrative expenses (6,446) (7,190) 11.54% (1,725) (1,819) (1,807) (1,839) (1,729) (1,856) 7.35% (3,544) (3,585) 1.16%

Consolidated income before income tax

from continuing operations15,549 16,195 4.15% 4,307 4,599 3,586 3,703 4,318 4,502 4.26% 8,906 8,820 -0.97%

Income Tax Expense (2,418) (2,114) -12.57% (641) (680) (581) (212) (629) (499) -20.67% (1,321) (1,128) -14.61%

Consolidated net income 13,131 14,081 7.23% 3,666 3,919 3,005 3,491 3,689 4,003 8.51% 7,585 7,692 1.41%

Basic earnings per share 1.41 1.42 0.71% 0.39 0.38 0.30 0.35 0.37 0.41 10.81% 0.77 0.78 1.30%

Other comprehensive income 1,491 832 -44.20% 185 (18) 729 (64) 20 945 4625.00% 167 965 477.84%

Othe comprehensive income for the

period, net of income tax14,622 14,913 1.99% 3,851 3,901 3,734 3,427 3,709 4,948 33.41% 7,752 8,657 11.67%

Attributable to：

Owner of the Company 13,131 14,081 7.23% 3,666 3,919 3,005 3,507 3,709 3,983 7.39% 7,585 7,692 1.41%

Non-controlling interests 0 0 - 0 0 0 0 0 0 - 0 0 -(Audit) (Audit) (Review) (Audit) (Review) (Audit) (Review) (Preliminary) (Audit) (Preliminary)

Period (IFRSs)Year (IFRSs) Quarter (IFRSs)

29

HNFHC Condensed Balance Sheets

Expressed In Millions of New Taiwan Dollars, unless otherwise indicated


Balance Sheets (%) (%) (%)

Investments accounted for using equity method 158,940 173,369 9.08% 162,941 157,864 170,230 173,369 177,239 172,892 -2.45% 157,864 172,892 9.52%

Total assets 159,999 175,562 9.73% 164,131 168,482 171,574 175,562 179,446 184,218 2.66% 168,482 184,218 9.34%

Total liabilities 16,057 22,494 40.09% 16,341 22,575 21,933 22,494 22,669 28,735 26.76% 22,575 28,735 27.29%

Total Stockholders' equity 143,942 153,068 6.34% 147,790 145,907 149,641 153,068 156,777 155,484 -0.82% 145,907 155,484 6.56%

Consolidated Balance Sheets

Total assets 2,259,951 2,350,289 4.00% 2,262,312 2,270,054 2,342,582 2,350,289 2,393,863 2,499,482 4.41% 2,270,054 2,499,482 10.11%

Total liabilities 2,116,007 2,197,219 3.84% 2,114,520 2,124,145 2,192,939 2,197,219 2,237,084 2,343,996 4.78% 2,124,145 2,343,996 10.35%

Total Stockholders' equity

Parent stockholders' equity 143,942 153,068 6.34% 147,790 145,907 149,641 153,068 156,777 155,484 -0.82% 145,907 155,484 6.56%

Minority Interest 2 2 0.00% 2 2 2 2 2 2 0.00% 2 2 0.00%

Capital Stock 93,280 99,063 6.20% 93,280 93,280 99,063 99,063 99,063 99,063 0.00% 93,280 99,063 6.20%

CHECK (Audit) (Audit) (Review) (Audit) (Review) (Audit) (Review) (Preliminary) (Audit) (Preliminary)

Period (IFRSs)Quarter (IFRSs)Year (IFRSs)

30

HNFHC Condensed Income Statements



Operating Income (%) (%) (%)

Income from investments

accounted for using equity

method

13,672 14,250 4.23% 3,819 4,074 3,138 3,219 3,850 4,086 6.13% 7,893 7,936 0.54%

Other revenue 26 37 42.31% (1) 1 40 (3) (3) - -100.00% - (3) -

Operating Expenses (395) (481) 21.77% (108) (112) (125) (136) (110) (115) 4.55% (220) (225) 2.27%

Interest and Other

Expenses And Losses(163) (189) 15.95% (44) (45) (47) (53) (48) (47) -2.08% (89) (95) 6.74%

Income before income tax 13,140 13,617 3.63% 3,666 3,918 3,006 3,027 3,689 3,924 6.37% 7,584 7,613 0.38%

Income after income tax 13,131 14,081 7.23% 3,666 3,919 3,005 3,491 3,689 4,003 8.51% 7,585 7,692 1.41%

Basic earnings per

share(before tax) 1.41 1.37 -2.84% 0.39 0.38 0.30 0.30 0.37 0.40 8.11% 0.77 0.77 -

Basic earnings per

share(after tax) 1.41 1.42 0.71% 0.39 0.38 0.30 0.35 0.37 0.41 10.81% 0.77 0.78 1.30%

(Audit) (Audit) (Review) (Audit) (Review) (Audit) (Review)(Preliminary) (Audit) (Preliminary)


31

HNFHC Key Financial Ratios

UNIT：%


ROA(after tax) 8.45 8.39 -0.06 9.05 9.24 8.52 8.39 8.31 8.55 0.24 9.24 8.55 -0.69

ROE(after tax) 9.39 9.48 0.09 10.05 10.47 9.62 9.48 9.52 9.97 0.45 10.47 9.97 -0.50

Double Leverage Ratio (Note1) 110.64 113.26 2.62 110.46 108.19 114.21 113.26 113.05 111.20 -1.85 108.19 111.20 3.01

Capital Adequacy Ratio (Consolidated basis) (Note2) 139.55 141.78 2.23 139.55 138.85 138.85 141.78 141.78 123.22 -18.56 138.85 123.22 -15.63

Note1：Double Leverage Ratio=Long-term Investment/Stockholders' Equity

Note2：Revise semiannually.


32

HNCB Condensed Income Statements

Expressed In Millions of New Taiwan Dollars, Except Earnings Per Share


(%) (%) (%)

Interest Income 38,474 38,959 1.26% 9,816 9,871 9,689 9,583 9,538 10,490 9.98% 19,687 20,028 1.73%

Interest Expense (13,538) (13,260) -2.05% (3,371) (3,343) (3,304) (3,242) (3,158) (3,929) 24.41% (6,714) (7,087) 5.56%

Interest Income, Net 24,936 25,699 3.06% 6,445 6,528 6,385 6,341 6,380 6,561 2.84% 12,973 12,941 -0.25%

Service fee and commission income, net 5,726 5,665 -1.07% 1,454 1,428 1,316 1,467 1,281 1,675 30.76% 2,882 2,956 2.57%

Gains(losses) on financial assets and liabilities at fair value through profit

or loss105 (8) -107.62% (38) (44) (47) 121 136 23 -83.09% (82) 159 -293.90%

Realized gains(losses) of available-for-sale financial assets 325 442 36.00% 173 52 295 (78) 181 127 -29.83% 225 308 36.89%

Realized gains or losses on held-to-maturity financial assets 0 0 - 0 0 0 0 0 0 - 0 0 -

Share of the profit or loss of associates and joint ventures 261 343 31.42% 94 76 68 105 76 143 88.16% 170 219 28.82%

Financial assets carried at cost 204 204 - 0 125 79 0 0 141 - 125 141 -

Foreign exchange gains, net 1,763 1,411 -19.97% 299 309 602 201 187 281 50.27% 608 468 -23.03%

Impairment loss 3 0 -100.00% 0 0 0 0 0 0 - 0 0 -

Gains on investment properties 212 267 25.94% 58 60 60 89 75 87 16.00% 118 162 37.29%

Other non-interest income 104 400 284.62% 94 43 239 24 553 67 -87.88% 137 620 352.55%

Net Income Excluding Interest Income 8,703 8,724 0.24% 2,134 2,049 2,612 1,929 2,489 2,544 2.21% 4,183 5,033 20.32%

Net Revenues 33,639 34,423 2.33% 8,579 8,577 8,997 8,270 8,869 9,105 2.66% 17,156 17,974 4.77%

Bad-debt expenses (1,616) (1,121) -30.63% (111) 265 (1,032) (243) (101) (244) 141.58% 154 (345) -324.03%

Provisions for the insurance reserve 0 0 - 0 0 0 0 0 0 - 0 0 -

Operating Expenses (17,427) (17,757) 1.89% (4,367) (4,493) (4,394) (4,503) (4,501) (4,588) 1.93% (8,860) (9,089) 2.58%

Employee Benefits (11,400) (11,091) -2.71% (2,750) (2,846) (2,698) (2,797) (2,847) (2,935) 3.09% (5,596) (5,782) 3.32%

Depreciation and amortization (762) (759) -0.39% (177) (173) (196) (213) (217) (200) -7.83% (350) (417) 19.14%

Other general and administrative expenses (5,265) (5,907) 12.19% (1,440) (1,474) (1,500) (1,493) (1,437) (1,453) 1.11% (2,914) (2,890) -0.82%

Income before income tax from continuing operations 14,596 15,545 6.50% 4,101 4,349 3,571 3,524 4,267 4,273 0.14% 8,450 8,540 1.07%

Income Tax Expense (2,161) (2,304) 6.62% (575) (606) (522) (601) (579) (503) -13.13% (1,181) (1,082) -8.38%

Net income 12,435 13,241 6.48% 3,526 3,743 3,049 2,923 3,688 3,770 2.22% 7,269 7,458 2.60%

Basic earnings per share 1.84 1.93 4.89% 0.52 0.55 0.45 0.41 0.52 0.53 1.92% 1.07 1.05 -1.87%

Other comprehensive income 1,378 921 -33.16% 127 (121) 987 (72) (38) 978 -2673.68% 6 940 15566.67%

Total comprehensive income for the period 13,813 14,162 2.53% 3,653 3,622 4,036 2,851 3,650 4,748 30.08% 7,275 8,398 15.44%

(Audit) (Audit) (Review) (Audit) (Review) (Audit) (Review) (Preliminary) (Audit) (Preliminary)

Year (IFRSs) Quarter (IFRSs) Period (IFRSs)

33

HNCB Condensed Balance Sheets



(%) (%) (%)

Assets

Cash and cash equivalents, due from the

Central Bank and other banks190,535 294,479 54.55% 210,045 213,937 237,529 294,479 233,679 269,377 15.28% 213,937 269,377 25.91%

Financial assets at fair value through profit or

loss, net50,430 60,788 20.54% 47,020 50,079 63,660 60,788 57,743 70,019 21.26% 50,079 70,019 39.82%

Available-for-sale financial assets, net 86,970 85,324 -1.89% 81,849 87,779 81,009 85,324 119,859 106,214 -11.38% 87,779 106,214 21.00%

Held-to-maturity financial assets, net 266,975 269,281 0.86% 267,170 270,481 309,881 269,281 311,905 369,037 18.32% 270,481 369,037 36.44%

Investments accounted for using equity

method2,011 2,123 5.57% 2,094 1,947 2,056 2,123 2,194 2,022 -7.84% 1,947 2,022 3.85%

Receivables, net 28,906 19,972 -30.91% 26,155 34,127 22,133 19,972 34,722 33,654 -3.08% 34,127 33,654 -1.39%

Loans, net 1,477,976 1,479,315 0.09% 1,465,854 1,453,098 1,470,397 1,479,315 1,483,826 1,511,119 1.84% 1,453,098 1,511,119 3.99%

Plant, property, and equipment 29,762 28,763 -3.36% 29,969 29,303 29,279 28,763 28,489 30,017 5.36% 29,303 30,017 2.44%

Other assets 77,335 60,187 -22.17% 80,591 74,753 72,023 60,187 70,095 51,373 -26.71% 74,753 51,373 -31.28%

Total Assets 2,210,900 2,300,232 4.04% 2,210,747 2,215,504 2,287,967 2,300,232 2,342,512 2,442,832 4.28% 2,215,504 2,442,832 10.26%

Liabilities

Deposits and remittances 1,831,117 1,921,637 4.94% 1,850,371 1,841,706 1,865,061 1,921,637 1,937,812 2,028,847 4.70% 1,841,706 2,028,847 10.16%

Other liabilities 239,863 224,459 -6.42% 216,803 235,050 271,622 224,459 246,914 260,297 5.42% 235,050 260,297 10.74%

Total Liabilities 2,070,980 2,146,096 3.63% 2,067,174 2,076,756 2,136,683 2,146,096 2,184,726 2,289,144 4.78% 2,076,756 2,289,144 10.23%

Stockholders' Equity 139,920 154,136 10.16% 143,573 138,748 151,284 154,136 157,786 153,688 -2.60% 138,748 153,688 10.77%

Total Liabilities and Stockholders' Equity 2,210,900 2,300,232 4.04% 2,210,747 2,215,504 2,287,967 2,300,232 2,342,512 2,442,832 4.28% 2,215,504 2,442,832 10.26%

(Audit) (Audit) (Review) (Audit) (Review) (Audit) (Review) (Preliminary) (Audit) (Preliminary)


34

HNSC Condensed Income Statements



(%) (%) (%)

Operating Revenue

Commissions And Fees - Brokerage 1,519 1,315 -13.43% 351 292 501 171 365 210 -42.47% 643 575 -10.58%

Commissions And Fees - Underwriting 41 23 -43.90% 8 2 3 10 9 2 -77.78% 10 11 10.00%

Gains(Losses) on sales of securities 98 0 -100.00% 97 60 (159) 2 21 28 33.33% 157 49 -68.79%

Stock affairs agent fees 28 26 -7.14% 6 6 8 6 6 7 16.67% 12 13 8.33%

Interest Income,Net 633 589 -6.95% 164 170 129 126 121 117 -3.31% 334 238 -28.74%

Dividend income 168 41 -75.60% - 7 46 (12) 0 11 - 7 11 57.14%

Gains(Losses) on valuation of securities (10) (58) 480.00% 8 (83) 16 1 42 4 -90.48% (75) 46 -161.33%

Gains(Losses) on warrants issued 4 68 1600.00% 5 21 36 6 (6) 7 -216.67% 26 1 -96.15%

Commissions And Fees - Futures (6) 39 -750.00% - 17 (17) 39 0 18 - 9 18 100.00%

Gains(Losses) on derivative instruments 12 2 -83.33% (12) 8 18 (12) (13) (21) 61.54% 4 (34) -950.00%

Others 2 89 4350.00% 10 14 25 40 30 26 -13.33% 25 56 124.00%

Operating Revenue 2,489 2,134 -14.26% 637 514 606 377 575 409 -28.87% 1,152 984 -14.58%

Operating Expenses (2,005) (1,989) -0.80% (501) (470) (650) (368) (536) (452) -15.67% (971) (988) 1.75%

Others Nonoperating Gains Or Loss 182 301 65.38% 40 107 50 104 28 144 414.29% 147 172 17.01%

Income (Loss) Before Income Tax From

Continuing Operations666 446 -33.03% 176 151 6 113 67 101 50.75% 328 168 -48.78%

Income Tax Expense (89) (95) 6.74% (26) (27) (24) (18) (19) (8) -57.89% (53) (27) -49.06%

Net Income (Loss) 577 351 -39.17% 150 124 (18) 95 48 93 93.75% 275 141 -48.73%

Other Comprehensive Income 176 (32) -118.18% 27 131 (214) 24 (25) (89) 256.00% 158 (114) -172.15%

Total Comprehensive Income For The Year 752 319 -57.58% 177 255 (232) 119 23 4 -82.61% 433 27 -93.76%

EPS 0.71 0.43 -39.44% 0.19 0.15 (0.02) 0.11 0.06 0.11 83.33% 0.34 0.17 -50.00%

Total Assets 28,224 28,309 0.30% 31,480 29,602 32,057 28,309 27,567 28,886 4.78% 27,252 28,886 6.00%

Total Liabilities 16,376 16,543 1.02% 19,458 17,722 20,410 16,543 15,779 17,322 9.78% 15,373 17,322 12.68%

Total Stockholder's Equity 11,848 11,766 -0.69% 12,022 11,880 11,647 11,766 11,788 11,564 -1.90% 11,880 11,564 -2.66%

ROE(After Tax) 4.99% 2.97% -2.02% 5.03% 4.62% 2.91% 2.97% 1.63% 2.42% 48.29% 4.62% 2.42% -47.62%

ROA(After Tax) 2.06% 1.24% -0.82% 2.01% 1.90% 1.13% 1.24% 0.69% 0.99% 43.49% 1.90% 0.99% -47.89%

Standalone basis


35

SCIC Condensed Income Statements



(%) (%) (%)

Operating Revenue 5,780 6,351 9.88% 1,519 1,636 1,573 1,623 1,595 1,646 3.20% 3,155 3,241 2.73%

Operating Cost (3,885) (4,296) 10.58% (1,049) (1,094) (1,130) (1,023) (1,160) (1,091) -5.95% (2,143) (2,251) 5.04%

Gross Profit Margin 1,895 2,055 8.44% 470 542 443 600 435 555 27.59% 1,012 990 -2.17%

Operating Expense (1,240) (1,365) 10.08% (316) (338) (323) (388) (344) (340) -1.16% (654) (684) 4.59%

Operating Net Income (Loss) 655 690 5.34% 154 204 120 212 91 215 136.26% 358 306 -14.53%

Nonoperating Gains (Loss) 8 4 -50.00% - 2 1 1 3 4 33.33% 2 7 250.00%

Income (Loss) Before

Income Tax from

continuing operations

663 694 4.68% 154 206 121 213 94 219 132.98% 360 313 -13.06%

Income Tax Benefit (Expense) (92) (88) -4.35% (18) (27) (19) (24) (11) (34) 209.09% (45) (45) -

Net Income (Loss) 571 606 6.13% 136 179 102 189 83 185 122.89% 315 268 -14.92%

Other Comprehensive Income (60) (63) 5.00% 32 (23) (50) (22) 91 41 -54.95% 9 132 1366.67%

Total Comprehensive Income For The Year 511 543 6.26% 168 156 52 167 174 226 29.89% 324 400 23.46%

EPS 2.85 3.03 6.32% 0.68 0.89 0.51 0.95 0.42 0.92 119.05% 1.57 1.34 -14.65%

Total Assets 15,099 16,239 7.55% 15,514 16,120 16,335 16,239 17,287 17,214 -0.42% 16,120 17,214 6.79%

Total Liabilities 11,269 12,081 7.21% 11,516 12,181 12,344 12,081 12,955 12,921 -0.26% 12,181 12,921 6.08%

Total Stockholder's Equity 3,830 4,158 8.56% 3,998 3,939 3,991 4,158 4,332 4,293 -0.90% 3,939 4,293 8.99%

ROE(After tax) 15.44% 15.17% -0.27% 13.90% 16.22% 14.22% 15.17% 7.82% 12.68% 62.15% 16.22% 12.68% -3.54%

ROA(after tax) 3.90% 3.87% -0.03% 3.55% 4.04% 3.54% 3.87% 1.98% 3.20% 61.62% 4.04% 3.20% -0.84%

Standalone basis


(Bloomberg: 2880 TT)...2Q 2016 Analyst Meeting (Bloomberg: 2880 TT) Senior Vice President & General...

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