FEIB 2021 Shareholders’ Meeting

　　FEIB held its 2021 General Shareholders’ Meeting on July 20 2021, at 9:00 a.m. at the Taipei Hero House. FEIB management reported the Bank’s 2020 business performance. Management also delivered its 2021 “new norm” action plan based on its strategic priorities of digital transformation, solid asset growth, and robust earnings for sustainable, long-term business growth.

　　The Shareholders' Meeting approved a dividend distribution of NT$0.517 per share consisting of a cash dividend of NT$0.326 per share and a stock dividend of NT$0.191 per share.  The cash dividend payout ratio was 45%.  Shareholders elected 11 board members, including three independent directors.  Three women serve as Board Members for 27% of the Board, unchanged from the prior term.  Dr. Bao-shuh Paul Lin, the Lifetime Chair Professor of the Department of Computer Science at National Yang Ming Chiao Tung University, is a newly-elected independent director.

　　2020 was a year defined by the devastating COVID-19 pandemic that overwhelmed the global economy.  FEIB’s assets grew 4% year on year to NT$680 billion, while core business revenues, including net interest income and net fee income, rose 7%.  However, hit by the pandemic, net income reached NT$2.5 billion, down 31% year on year, and earnings per share were NT$0.73, slipping 31% due to investment losses and increased bad loan loss provisions.  In 1Q 2021, emerging from the pandemic, profitability recovered with revenue reaching NT$2.8 billion, up 23% year on year.  Net income rebounded to NT$799 million, up 111% year on year.

　　Striving to build brand awareness in FEIB corporate banking, retail banking, and digital banking, the Bank continued its core business growth in 2020.  The Retail Banking Business Unit, which consolidated the wealth management, retail branches, credit card, and consumer banking functions, revamped our client-oriented organization by integrating customer, product, and management platforms.  Seven professional institutes in Taiwan and abroad awarded 12 prizes to the Retail Banking BU and Digital Banking BU.  We are also proud that Far Eastern International Securities Co. Ltd, FEIB’s 100%-owned subsidiary, continued to set record-high annual profits.

　　Although our lead mandate wins for cross-border syndicated loans slowed during COVID-19, we opened our Vietnam Representative Office in Ho Chi Minh as scheduled to capitalize on business opportunities in the dynamic ASEAN market.  In addition, Asian Banking & Finance, the Singapore-based media group hosting one of Asia's most prestigious awards program, granted FEIB the “Green Deal of the Year – Taiwan.”  We are honored that this institution recognizes our bank model and dedicated staff for supporting eco-friendly businesses.

　　Digital innovation is one key slogan in our Bank’s branding.  In addition to end-to-end digitalization, FEIB has been promoting i-application and mobile banking accessibility for customers. We achieved a 95% off-counter (online digital processing) rate and a 72% e-channel customer acquisition rate as of June 2021.  Happy Robot, our AI customer service greeter, has replied to more than 200,000 customer inquiries since its launch in 2020.  Meanwhile, “Bankee,” our social media banking platform for the young generations, is a pioneer in open banking following its approval by the Financial Supervisory Commission in Taiwan.  “Bankee” has connected five technology companies like MAYO Human Capital Inc., a Taiwan online human resources platform, to build up Taiwan’s open-banking ecosystem. Thanks to its unique value proposition, “Bankee” satisfies customers and gains recognition in the marketplace.

　　FEIB embraces social responsibility as a corporate citizen.  FEIB’s Corporate Social Responsibility report has been awarded the “Taiwan Corporate Sustainability Award” and “BSI Sustainability & Resilience Award” for years.  The Taiwan Stock Exchange has selected FEIB as a constituent in the Taiwan environmental, social, and governance (ESG) indices: “FTSE4Good TIP Taiwan ESG Index,” “Corporate Governance 100 Index,” “High-Pay 100 Index,” and “Employee 99 Index.”  In the TWSE’s sixth annual corporate governance review, FEIB ranked in the top 20% among Taiwan listed companies.  Committed to employee growth and development, FEIB has earned 18 consecutive years of a subsidy from the Ministry of Labor recognizing our progress in staff training.  For a greener earth, FEIB provided green financing to 259 companies, representing 13.6% year on year growth and sponsored NT$25 million in green purchase.  To encourage the independence of physically challenged people, FEIB donated NT$49 million to Eden Foundation and hired challenged adults from the Children Are Us Foundation.

　　In 2021, in the post-pandemic new normal, an ever-changing market and unpredictable business environment are the significant challenges that companies face.  FEIB, based on our core strategy of long-term sustainable growth, targets total assets exceeding NT$700 billion.  FEIB’s Corporate Banking is taking root in the ASEAN marketplace with our growing Vietnam Rep Office and a new Singapore Rep Office to open later this year.  Meanwhile, promoting structured loan products and tailor-made financial solutions as our niche, Corporate Banking targets Taiwanese enterprises that are reshoring, thus expanding FEIB’s profit opportunities.

　　FEIB is expediting new and improved digital banking offerings to customers to drive our digital transformation with speed. The FEIB website AI customer service Happy Robot, now increasingly accessible to customers, is on pace to achieve addressing 20% of total customer service inquiries as its goal. Bankee, emphasizing its innovative biz-model in competition with three Taiwan internet-only banks, was selected "Taiwan’s Best Digital Bank” by Asiamoney in June 2021.

　　FEIB’s new Retail Banking Business Unit, leveraging fintech with its customer-centric business model, offers wealth management to diverse customer segments.  Our newly-launched “AI smart RM” connects our relationship management professionals with young customers offering investment suggestions supported by big data analysis. Meanwhile, our financial specialists focus on serving sophisticated high net worth clients. Taiwan’s Wealth Magazine awarded FEIB the distinction of "Best Wealth Management Service Team” and “Best Wealth Growth” in 2021.  In addition, FEIB launched “FE Family+,” a new credit card brand to offer greater shopping benefits to customers and promote card growth.

　　In responding to the “new norm” of an ever-changing, and unpredictable market, FEIB stays agile. We are committed to digital transformation, solid asset growth, and robust earnings to create better value for our shareholders, customers, employees, and society.

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