07.2020 Group Briefing
2020 General Shareholders’ Meeting of FEIB
Far Eastern International Bank / Xiao Peiyi
Digital Innovation, Highest Profit in 4 yr, and Accumulate Growth Momentum
The 2020 general shareholders’ meeting of FEIB (TPE: 2845) was held at 9:00 a.m. on June 11 at Auditorium of Taipei Hero House, where management team reported FEIB’s 2019 business performance. Striving from 3 pivot strategies, i.e. “digital innovation, leading niche competitiveness, and group synergy enforcement”, FEIB reported business results and laid down future plans for long-term steady growth.
The shareholders' meeting also approved dividend distribution of NT$0.743 per share which consisted of cash dividend of NT$ 0.468 per share and stock dividend of NT$ 0.275 per share. The cash dividend yield was around 4%.
The Highest Profit in 4 Years
In 2019, FEIB’s overall profitability gained momentum. The net income was NT$3.633 billion and EPS was NT$1.08. Both grew by 3% from last year, and were the highest in four years. Total assets exceeded NT$650 billion, ROA was 0.57% and ROE was 7.89%. With high profitability, the asset quality remained healthy, with NPL ratio at 0.28% and NPL coverage ratio at 513%.
Entering 2020, the worldwide outbreak of COVID-19 as a black swan event attacked globe market and economics. While the Bank’s asset grew 7.2% YOY in Q1’2020, profitability suffered from the pandemic. The income before tax of Q1’2020 was down to NT$ 0.402Bn, caused by investment m-t-m loss and increased provisions for bad loans. Nevertheless, investment value has recovered gradually since April. Besides, FEIB always invests more in bonds than in stocks, so as the pandemic is eased, and markets are back to normal, the Bank’s profit has returned to high ground in April.
2019 major development of core business:
- The Bank has gained reputation in lead mandates of cross-border and international syndicated loans. Asian Banking & Finance, a media group in Singapore, held the Asia's most prestigious awards program for the corporate banking to recognize the “Syndicated Loan of the Year–Taiwan “ to FEIB. It’s a good start for FEIB to set up representative offices in Singapore and Vietnam.
- FEIB gained 10 patents in FinTech category in 2019. The Bank has total 30 patents up to now to deliver R&D capability in FinTech.
- Under Open API environment, FEIB leveraged FE Integrated Payment Platform to co-launch HG Pay with HAPPYGO Company and FE retail stores. The payment App advances mobile payment service with FE synergy benefits by integrating and connecting reward points and money flow processing seamlessly.
- Among all the Taiwanese banks, FEIB’s Bankee social bank was the only brand invited to “Singapore Fintech Festival 2019”. Also in cooperating with Fintech initiative company “Howinvest ”, Bankee became one of the earliest 3 regulatory sandbox projects approved by FSC.
- FE Happy Card, positioned as the flagship card for FE Group, has led FEIB’s card business growing for cards in force exceeding 1.5 million.
- FEIB’s personal loan business, as niche in consumer banking, achieved 9% growth in scale. The car loan business, allied with strategic partners, remained the #1 leading business share in the market.
- As recognition of product innovation and service excellence, the Bank won total 18 domestic and foreign awards from 11 professional institutions and famous financial media for excellent wealth management, customer service, and digital business model development.
2 Major CSR Awards and 4 SEG Indices
FEIB believes strongly in its social responsibility as a corporate citizen. The CSR report was continually awarded by “Taiwan Corporate Sustainability Award” and “BSI Sustainability Excellence Award” for years. And FEIB stock was included in TWSE’s (Taiwan Stock Exchange) “ FTSE4Good TIP Taiwan ESG Index”, “Corporate Governance 100 Index”, “High-Pay 100 Index”, and “Employee 99 Index” as SEG (Social, environmental and governance) indices. FEIB’s main commitment includes:
- FEIB ranked top 20% among listed companies in the 6th corporate governance review by Taiwan Stock Exchange.
- In support of green energy and environmental protection, FEIB participated green financing with 228 companies and green credit outstanding grew 22%. Besides, the Bank purchased green energy of 1.82 times more, and added two demonstration sites for ISO 50001 energy management, in order to meet the international standards of carbon reduction.
- Committed in employee training, FEIB not only gained subsidy from MOL (Ministry of Labor) for 17 consecutive years but also was honored by TTQS (Talent Quality-management System) Gold Medal Award for human resource enhancement program.
- To encourage independency of physically and mentally challenged individuals, FEIB accumulatively donated NT$47MM to Eden Foundation via Eden Honor Cards, and continually supported challenged adults of Eden Foundation and Children Are Us Foundation via part-time employment program.
- FEIB issued 2020 calendar “Taiwan's High Mountain Cabins” to introduce beauty of nature and promote “Leave No Trace Principles”, which encouraged exploration and preservation of Taiwan natural environment.
Strategies for Long-term Steady Growth
Looking forward 2020, the restructured Retail Banking Group, integrating sales channels with wealth management, branch service, credit card, consumer financing, insurance agency products is up and running started in Jan. On the other hand, the Corporate Banking Group pauses the plan of setting up representative offices in Singapore and Vietnam due to concerns of coronavirus pandemic. As ASEAN market is booming and supply chain is shifting, FEIB will deepen the overseas business opportunities firmly and pay close look to investment flows of overseas Taiwanese entrepreneurs.
Regarding digital innovation, FEIB has been pushing digital banking readiness, such as launching i-Customer service in Jan., achieving almost 93% off-counter rate and highest ever 37% e-channel customer acquisition rate in May 2020. Meanwhile, Digital Banking Group plans to launch Smart RM and increasingly connect Happy Credit Card with FE retailing brands to build up FE living community. By leveraging open API, a financial open platform BaaP is created allowing Bankee introducing new business model quickly, and surging new account opening. Bankee has launched friDay 57 App with FET for assisting young people saving and a P2P platform for corporate fundraising with BZNK so far this year. In addition, it won the silver award of "Best Business Model Innovation “and the bronze award of “Best Technology Innovation” by Business Next Magazine recently.
As branding recognition, FEIB’s wealth management business was awarded the "Best Wealth Manager Team “ and ”Best Growth of Wealth” by Wealth Magazine in early this year. Furthermore, Far Eastern International Security, a bank’s subsidiary, achieved record high profit in April against the market downturn.
Amid world’s new normal following post-pandemic economy and China-U.S. confrontation, FEIB will keep agile and prudent in coping with changes, and adhere to long-term stable growth path for achieving common benefit for shareholders, customers, employees, and society.#