Financial Update

First Quarter 2010

Ta Chong Bank

CONFIDENTIAL

1

2

Overview of TC Bank

First Quarter Result Overview

Performance Trend

Bank Profile• Founded in 1992 in Kaohsiung, Taiwan • Listed in Taiwan Stock Exchange in 1999• Chairman: Chen Chien-Ping• President: Edmund Koh• Major shareholders: Carlyle, KYMCO company,

Ching Yuan Investment Co. Ltd• Market Cap: NT$18 billion (USD574 million)• Credit Rating: twA- (long term), twA-2 (short

term)

Business Overview • Three business units: Consumer Banking Group,

Institutional Banking Group and Financial Market Group

• Product coverage: deposit, wealth management, loans, cash management, trade services and finance, trading products, A/R factoring corporate finance and institutional trusts.

• Branch coverage: 68 branches with 35 in the North [8 to be opened], 8 in the Central [1 to be opened] and 25 in the South

• Over 2,900 staff

Overview of TC Bank

Key Financials (as of Mar 31, 2010*)• Asset NT$391 billion [USD12.4 billion]• Deposit NT$308 billion [USD 9.7 billion]• 1Q 2010 Net Profit After Tax: NT$356 million.

[Full Year 2009: NT$1,008 million]• 1Q 2010 EPS: NT 13 cents • Loan to Deposit Ratio: 78.7%• NPL: 0.90%• Coverage Ratio: 180.3%• BIS Ratio: 12.50%• ROE: 6.0%, ROA: 0.4%

* Based on the pre-audited financial statement

3

4

Overview of TCB

First Quarter Result Overview

Performance Trend

5

1Q 2010 Summary

Solid and strong operating profit growth

Asset quality further improved with high coverage and lower NPL

Strong capital position enables TC Bank to better capture the growing opportunity

Indicator 1Q 2010 1Q 2009 4Q 2009

Operating Profit ($ Million)

629 235 382

Net Profit After Tax ($ Million)

356 161 365

ROE (Avg) * 6.0% 2.9% 6.4%

ROA (Avg) * 0.4% 0.2% 0.4%

NIM 1.18% 1.18% 1.12%

NPL Ratio 0.9% 1.9% 1.0%

Coverage Ratio 180.3% 100.2% 160.2%

CAR 12.5% 12.2% 10.9%

* Annualized

Strong organic growth driving improved operating profit

1Q 10 operating profit grew 168% YoY and 65% QoQ supported by strong growth in revenue. Revenue up 42% YoY and 13% QoQ

1Q 10 net profit after tax grew 121% YoY but slight drop of 2% QoQ due to higher provision

NT$ (millions) 1Q10 1Q09 YoY 4Q09 QoQ

Net Inerest Income 1,094 923 19% 1,029 6%

Net Fee Income 632 401 58% 630 0%

Others 167 13 1189% 16 971%

Total Revenue 1,893 1,337 42% 1,674 13%

Total Expenses 1,264 1,101 15% 1,292 -2%

Operating Profit 629 235 168% 382 65%

Provisions 240 492 -51% 6 3960%

Net Profit before Tax 389 (257) NM 376 4%

Income Tax 33 (418) NM 11 204%

Net Profit after Tax 356 161 121% 365 -2%

6

Significant rebound in fee income, grew 58% YoY Strong contribution from Personal Investments, Cards, Unsecured Loan (recurrent

income streams gathering momentum in an upswing)

NT$ (millions) 1Q10 1Q09 YoY 4Q09 QoQ

Personal Investment 310 118 164% 355 -13%

Credit Card 127 78 62% 105 21%

Unsecured Loan Fee 62 22 183% 67 -7%

Guarantee 38 56 -33% 32 16%

Corp. Loan Fee 31 50 -39% 14 116%

Syndicated Fee 30 14 110% 22 32%

Corp. Financial Advisory Fee 12 18 -31% 8 61%

Factoring Service 12 9 42% 14 -11%

Others 10 35 -72% 12 -17%

Net Fee Income 632 401 58% 630 0%

Fee Income / Total Revenue 33% 30% 3% 38% -5%

7

8

Overview of TCB

First quarter Result Overview

Performance Trend

1,317 1,251 1,268 1,256

923772

9211,029 1,094

1.88%

1.53%

1.69%

1.90% 1.85%

1.44%

1.25%

1.04%0.90%

1.18%1.12%1.08%

0.97%

1.18%

1.57%1.63%

1.65%1.72%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

NIM continues to improve Net interest income shown steady growth in last four quarters, lifted by gradual

improvement in NIM from 97 bps in 2Q 09 to 118 bps in 1Q 10

Net Interest Margin Net Interest Margin

NPL Ratio

NPL Ratio

3.28% 1.27% 1.25% CBC DiscountRate

3.42% 3.54% 3.58% 2.58% 1.33% 1.25% 1.25% 1.25% 1.25%

Net Interest Income (NT$ M)

9

1,094

3,644

5,092

FY2008 FY2009 1Q 10

Net Interest Income (NT$ M)

Stable fee income and over $600 million for three consecutive quarters.

Net Fee

Income (NT$ M)

Fee Income /

Total Revenue

23 27 38 48 57 74130 7963 61 62 72 78 9692

105 127141 191 167 90148

205 11391

123

264223 226

84

118

206 304355 310

72

581

401

294

493503491

639 630632

37.6%

30.0%

19.8%

24.9%

27.2%26.0%

37.9% 37.6%

33.4%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

Syndicated / Advisory /

Wealth Management

Guarantee / Factoring

Credit Card

Other

Fee Income / TotalRevenue

2,251

1,780

632

33.4%

36.1%

24.7%

FY2008 FY2009 1Q2010

10

Cost-to-Income

Ratio

Cost-to-Income Ratio

7,192

6,243

1,264

4,7024,802

1,893

66.8%75.3%

66.8%

2008 2009 1Q2010

Total Expense (NT$ M)

Total Revenue (NT$ M)

1,161 1,184 1,165 1,101 1,128 1,1801,292 1,264

1,885 1,8491,977

1,4811,337

1,5481,684 1,674

1,893

1,291

72.9%

82.4%78.7%

65.3%64.0%61.6%

70.0%77.2%

66.8%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

Total Expense (NT$ M)

Total Revenue (NT$ M)

Smart, well-executed investments drove higher revenues which led to improvements in our cost-to-income ratio

Cost-to-income ratio improved to 66.8% (driven by revenue growth)

11

12 11 11 11 10 11 14 15 14

85 87 89 89 88 90104 105

125 128 126 123 120 118116 123

103

119

242235221 227 227 222 218 219

236

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

Corporate

Mortgage

Others

Loans grew by $24 billion up 12% YoY Despite a proactive decision and action to exit $18 billion lower Corporate Loans to

pre-empt deteriorating credit conditions

* Others include UPL and Cash Card

1Q10 Loan by ProductsEOP Balance (NT$ B)

12

Others6%

Corporate51%

Mortgage43%

Deposit grew by $55 billion, up 22% YoY CASA to total deposit ratio further improved to 38% in 1Q 10

Loan-to-Deposit Ratio

Time Deposit

(NT$ B)

Current / Saving

(NT$ B)

1Q10 Deposit by Types

Time Deposit

CASA

78 70 71 65 68 7899 108 115

161 167 177 199 185 181

194 197 192

308305293259253263248238239

78.7%77.1%80.4%

84.6%86.1%84.5%

91.4%95.5%

92.6%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

13

Retail

50%

Corporate50%

67% 70% 71% 75% 73% 70% 66% 65% 62%

33% 30% 29% 25% 27% 30% 34% 35% 38%

Proactive and effective risk portfolio management. Both coverage and NPL well above the industry average.

Coverage Ratio

NPL Ratio

TCB

Industry Average

TCB

Industry Average

* Industry average is as of February 2010

0.9%

1.4%

1.9%1.9%1.7%

1.5%

1.9%

1.3%1.0%

180.3%

151.6%

94.5%100.2%100.6%101.1%101.9%102.7%

160.2%

92.2%78.6%

71.3%68.7%69.5%66.9%67.4%66.9%

90.5%

1.1%

1.5%

1.6%1.5%1.5%1.6%

1.7%

1.4%

1.2%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

14

Capital position remains strong with tier 1 ratio of 11.5% and total CAR of 12.5%

CAR

Tier 2 Capital

(NT$ M)

Tier 1 Capital

(NT$ M)

$4,000 million new sub-debt

15

29,252 28,148 27,473 27,480 27,425 25,929 26,574 26,283 28,188

2,548

11.6%12.2%12.0%

11.5%11.5%12.2%

10.7% 10.7%

12.5%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

Q & A

16