Fubon Year 2010 Q1 Overview

2010.05.06

1

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

expressions or variations on such expressions may be considered “forward-looking

statements”.

2

Agenda

Performance highlights of the group

Performance review of banking business

Performance review of insurance business

Update on CDO exposure

3

Fubon Life Year 2009 Embedded Value

2,436

1,756

(241)

309

599

315

1,008

1,885

2,651

5,970

Fubon FHC TPFB P&C Life Sec

1Q 2009 1Q 2010

Fubon Financial – net income overview

NT$ m

Note: 75% of Fubon Bank (HK) earning is accounted in this page.Antai’s net profit is accounted from 11 Feb, 2009

Net income as of March,2010 =NT$5,970.0m

NT$ m

Net income by subsidiaries

4

Life,

NT$2,651,

44%

TPFB,

NT$1,885,

32%

Sec,

NT$315,

5%

Others,

NT$111,

2%

P&C,

NT$1,008,

17%

Fubon Financial – Return on assets and return on equity

Return on assets Return on equity

0.50%

0.82%

0.57%

0.79% 0.77%

2006 2007 2008 2009 3M 2010

5.3%

8.8%

7.0%

11.3% 11.4%

2006 2007 2008 2009 3M 2010

5

＊ Note : Annualized basis

＊ ＊

Fubon Financial – Per share calculations

Book value per share (NT$) EPS (NT$)

1.09

1.87

1.41

2.44

0.73

2006 2007 2008 2009 3M 2010

21.19 21.47

18.62

25.66 25.79

2006 2007 2008 2009 3M 2010

6

Changed

in 2009 in 1Q10

Balance

Dec 09

(NT$18,316)

+NT$ 35,716

NT$17,400

(NT$ 4,877)

NT$12,523

Balance

Mar 10

Available-for-sale movement in shareholder equity

Fubon FHC

NT$ m

Constituent of AFS

7

BalanceDec 08

Changed

(16,486)(16,486)Minus : Antai Life on merger date (2/11/09)

30,61026,602Fubon Life

(192)(155)Minus :

Other adjustment*

1,218541Fubon Insurance

446195Fubon Securities

17,40012,523Fubon FHC

125312Other subsidiaries

1,6791,514Taipei Fubon Bank

Dec-2009Mar-2010NT$ m

*Note: Other adjustment refers to the mark-to-market value of Antai’s share holding in Fubon FHC before merger. The shares are to be disposed within three years according to Securities and Exchange Act.

� Hidden book value came from book value of Antai Life

(NT$45.5bn on merger date) was higher than transaction

cost (NT$20.4bn)

� From a peer comparison perspective (e.g. P/B multiple),

the hidden book value could be added into the statuary

book value to be comparable.

FHC consolidated balance sheet on merger date*FHC consolidated balance sheet on merger date*

Equity

+ $8.9bn

Liabilities

+$598.1bn

+$33.8bn

+ $11.5bn

Assets

+$643.6bn

+$8.69bn

Antai’s book assets

Assets write-up from:

$8.6bn goodwill

$464m intangible assets

Other adjustments

Antai’s book liabilities

Liabilities write-up

Debt issuance

New share issuance@$21.7/share5% new shares

NT$bn

Merger accounting of Fubon Life

P&L related accountsP&L related accounts

� Revenue: recovery gains of policy reserve

� Recovery came from policy maturity, surrender

and lapse. Liabilities write up balance will

reduce accordingly. It is accounted on a

monthly basis and shown in audited report.

� Cumulative recovery gains as of March 2010

was NT$972m.

� We estimate annual recovery of NT$600~700m

in the next 15 years. Total recovery period is

estimated at 99 years.

� Expense: reduction after debt refinance

� Interest expense booked in 2009 was

NT$615m. The refinance exercise of NT$11bn

in Feb 2010 brought average funding cost to

2.28% from originally 6.326%. Average annual

interest expense would reduce to NT250m in

the next 6 years.

� Cumulative amortization of intangible assets as

of March 2010 was NT$174m. Remaining

amortization period is two years.

� Goodwill amortization is subject to impairment

test. There is no impairment loss in 2009.*Note: Antai merged into Fubon FHC on 2/11/2009

8

Sec, NT$48

, 1%PC, NT$65

, 2%

AM, NT$1

, 0%

Life, NT$1,433

, 45%

FBHK, NT$240

, 8%

TPFB, NT$1,402

, 44%

TPFB

FBHK

Life

PC

Sec

AM

Assets breakdown by subsidiaries

Total assets=NT$3,176.2 billion(31 March, 2010)

NT$bn

Note: Pie charts & statistics represent breakdown of six major subsidiaries.

9

Fubon Financial – Profit breakdown by business groups

Pretax profit by business groups – 1Q 2010 Pretax profit- Business group

Wealth

Mgmt,

NT$712 ,

10%

Insurance,

NT$3,688 ,

50%

Inv Mgmt,

NT$443 ,

6%

Consumer

Fin, NT$848

, 11%

Corp & Inv

Bk,

NT$1,391 ,

19%

Fin Mkt,

NT$308 ,

4%

886

(358)

1,241

308

712

1,391

Fin Mkt Wealth Mgmt Corp & Inv Bk

1Q 2009 1Q 2010

463166

496

3,688

443848

Insurance Inv Mgmt Consumer Fin

10

NT$ m NT$ m

Agenda

Performance highlights of the group

Performance review of banking business

Performance review of insurance business

Update on CDO exposure

11

Fubon Life Year 2009 Embedded Value

128.8 123.1 142.1 150.7185.2

389.2 390.9 380.6 368.8

246.3 258.1 271.2 277.9

281.7

381.1

21.5 22.5 21.7 23.422.5

8.7

8.78.78.9

8.713.1 12.311.7

10.411.2

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

Credit CardRevolving

Consumer -unsecured

Consumer - secured

Mortgage

Corporate

Government

Taipei Fubon Bank – Loan breakdown

Note: (1) Overdue loans not included.

(2) Cash card loans are under unsecured consumer portfolio. Outstanding balance NT$80m as of March 2010.

840.7836.0815.7 889.7807.6 YTD +5.8%YoY +10.2%

YTD +22.9%

YTD +1.4%

YTD +3.3%

Total loans (1) (NT$bn)

12

81.5% 81.5% 80.7% 77.5% 80.5%

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

Taipei Fubon Bank-Loan & Deposit

Loan growth YoY

Deposit growth YoY

Fubon’s Loan/ Deposit ratio

-1.5%

3.5%

8.5%

13.5%

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

Industry Fubon

10.15%

3.06%

0.0%

5.0%

10.0%

15.0%

20.0%

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

Industry Fubon

10.51%

6.29%

13

32% 36%41% 45% 49%

68% 64%59% 55%

51%

1Q09 2Q09 3Q09 4Q09 1Q10

Lower cost Higher cost

Solid deposit franchise

Averaged NTD deposits mix Averaged USD deposits mix

NT$bn NT$bn

181 172 164 169

14

42% 44% 46% 46% 45%

58% 56% 54% 54% 55%

1Q09 2Q09 3Q09 4Q09 1Q10

Lower cost Higher cost

818 859 878 919 175950

Taipei Fubon Bank – Interest yields overview

15

3.47%

0.46%

1.76%1.77%1.83%1.92%

2.34%

3.66%3.69%3.86%

0.52%0.65%0.76%1.01%

1.65% 1.65% 1.68% 1.59% 1.30%1.25%1.18%1.16%

1.33%

1.88%1.98%

2.04%2.21%

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

Loan rate(incl. Credit cards)

Deposit rate

Loan deposit spread

3.15%

1.44%1.47%1.54%1.66%

2.12%

3.28%3.32%3.46%

0.51%0.56%0.68%0.78%

1.03%

1.83% 1.74% 1.78% 1.67%

0.96%0.94%0.89%0.90%1.12%1.54%1.58%1.64%1.69%

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

Avg rate of IEA

Avg rate of IBL

NIM

Taipei Fubon Bank – Interest & fee Income

3,2272,731 2,737 2,945

894

1,082

1,408

3,049

1,3001,457

1Q09 2Q09 3Q09 4Q09 1Q10

Net Fee Income

Net Interest Income

33.1%

4,402

Net Fee/Major Incomes

Major Incomes

21.7%

4,121

28.4%

3,813

32.2%

4,037

31.6%

4,457

Note: Fees booked under insurance agency subsidiaries are excluded.

NT$ m

16

645771

1,0331,202

997

189

210

198

223

236

221

236

288

292

295

118

123

124

12

99

1Q09 2Q09 3Q09 4Q09 1Q10

Other

Corporate banking

Credit card

Wealth management

Taipei Fubon Bank – Net fee income breakdown

Note: Please refer to attachment 4 for definition

69.5% 61.3%62.9%57.6%55.0%

WM fee as % of total banking fee

NT$ m

17

6,812 5,742 3,871 6,244 4,295

13,73622,579

34,375

45,825

36,5931,867

2,996

2,275

3,865

14,179

17,867

16,274

23,083

19,426123

97

14

3,414

337

561

1Q09 2Q09 3Q09 4Q09 1Q10

Collective investment trust funds

Insurance

Structured notes

Foreign Mutual funds

Domestic Mutual funds

Taipei Fubon Bank – Wealth management business

1,202 9971,033771645

Total Wealth Management Fees (NT $m)

79,114

37,155

Note: Others represent collective investment trust funds

Wealth management sales breakdown

NT$ m

49,522

56,919

18

63,744

76.9% 80.3% 76.8%

124.3%111.6%

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

Taipei Fubon Bank – Quality of loan book

*Note: Credit card revolving included.

Provision & Recovery *

0.73%0.66% 0.65%

0.53%0.47%

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

NPL ratio

Coverage ratio

Provision as of average loan*

0.12%

230

6,614

615

(647)

262

1Q10

0.74%

1,033

6,384

475

(941)

1,499

4Q09

438434423Recovery

5,3515,5335,922Reserve

(182)(389)96Reserve

Movement

0.34%0.38%0.40%Annualized Credit cost

(1,307)(1,587)(1,129)Write-Off

688762802Provision

3Q092Q091Q09(NT$ m)

19

Corporate loan quality update (1)

Net NPL formation of Corp loans

NT $m

20

NPL ratio and coverage of corporate loans

(LHS) (RHS)

1.47%

0.9%

67.1%

102.0%

0.8%

0.9%

1.0%

1.1%

1.2%

1.3%

1.4%

1.5%

1.6%

Mar-08'

Jun-08'

Sep-08'

Dec-08'

Mar-09'

Jun-09'

Sep-09'

Dec-09'

Mar-10'

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

110.0%

NPL ratio Coverage ratio

(300)

(100)

100

300

500

700

900

1,100

1,300

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

Net formation

Corporate loan quality update (2)

90 days overdue ratio of SME

21

90 days overdue ratio of large corporate

0.32%

0.60%

0.00%

0.20%

0.40%

0.60%

0.80%

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

3.88%

2.53%

0.00%

2.00%

4.00%

6.00%

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

Mortgage quality: NPL amount and NPL ratio

Overdue 30+ days loans Overdue 90 day+ loans

Overdue ratio: 30+ day Overdue ratio: 90+ days

NT$ m NT$ m

22

-

300

600

900

1,200

1,500

1,800

Dec-08' Mar-09' Jun-09' Sep-09' Dec-09' Mar-10'

0.22%

0.68%

0.00%

0.20%

0.40%

0.60%

0.80%

Dec-08' Mar-09' Jun-09' Sep-09' Dec-09' Mar-10'

-

300

600

900

1,200

1,500

1,800

Dec-08' Mar-09' Jun-09' Sep-09' Dec-09' Mar-10'

0.50%

0.19%

0.00%

0.20%

0.40%

0.60%

0.80%

Dec-08' Mar-09' Jun-09' Sep-09' Dec-09' Mar-10'

Agenda

Performance highlights of the group

Performance review of banking business

Performance review of insurance business

Update on CDO exposure

23

Fubon Life Year 2009 Embedded Value

2,567 2,393 2,481 2,525 2,686

1,525

963 767 8921,143

473

424

507

388

232

334

1,107

1,078 1,076 1,140

1,228

444 354243 233

1Q09 2Q09 3Q09 4Q09 1Q10

Auto Fire Marine Engineering Others

Fubon Insurance – operating snapshot

Direct written premium breakdown

NT $m

Note: Reinsurance premiums are excluded24

5,1445,0115,090 5,8986,060

Net combined ratio

40.7%49.9%

55.9% 52.2% 53.6%

36.1%

35.1%32.8%

33.4% 38.5%

1Q09 2Q09 3Q09 4Q09 1Q10

Net Claim Ratio Net Expense Ratio

Fubon Insurance – Net combined ratio

76.8%82.7%

89.3% 90.7%

25

88.7%

9,3562,934

20,720

11,625

29,942

43,988 47,327

5,140

6,666

2,8171,121

18,782

1,797 921 163

1,20715,472

15,974

12,656

20,7701,654

1,791

1,093

1,1951,176

1Q09 2Q09 3Q09 4Q09 1Q10

Health, Accidents and others

Traditional Life

Investment-Linked

Interest-Sensitive Annuity

Interest-Sensitive Life

Fubon Life- FYP breakdown by products

56,034 67,703 70,55736,96245,032

FYP breakdown by products

NT $m

Note: data before the merger of Fubon and Antai is on a pro-forma basis

26

484 752 494

1,818

4,577 4,859

08' quarterly

average

09' quarterly

average

1Q10

Health Higher margin traditional life

Sum

2,302

5,328 5,353

Note: data before the merger of Fubon and Antai is on a pro-forma basis 27

Fubon Life- FYP breakdown by products

FYP breakdown by products

21%

8%3% 1%

46%

31%

53%65% 67%

3%

14%

12%

4% 2%

28%

42%

29% 28% 29%

2% 5% 3% 2% 2%

0%

1Q09 2Q09 3Q09 4Q09 1Q10

Health, Accidents and others

Traditional Life

Investment-Linked

Interest-Sensitive Annuity

Interest-Sensitive Life

9,4693,273

23,102

12,584

31,060

45,144 48,42910,229

12,217

8,260 6,329

26,856

32,550

34,713

3,066 3,041 1,528

6,636

27,336

39,0527,737

9,591

8,825

9,5229,051

1Q09 2Q09 3Q09 4Q09 1Q10

Health, Accidents and others

Traditional Life

Investment-Linked

Interest-Sensitive Annuity

Interest-Sensitive Life

Fubon Life- Total premium breakdown by products

100,67986,63062,532 104,38975,369

Total premium breakdown by products

NT $m

Note: data before the merger of Fubon and Antai is on a pro-forma basis 28

Sum

FYP breakdown as of March 2010

Others

10%

Tied Agents

11%

Fubon Life- breakdown by channels

APE* breakdown as of March 2010

Others

14% Tied Agents

25%

*Note : APE is the abbreviation of annual premium equivalent .

Bancassurance-TPFB34%

Bancassurance-External

45%

29

Bancassurance-External

39%

Bancassurance-TPFB22%

Investment portfolio

30

-2.4%29.3%357.231.7%358.6Overseas

2.4%70.7%862.668.3%772.5Domestic

-100.0%1,219.8100.0%1,131.0Total investments

-0.4%4.4%53.54.8%53.9Real estate

-0.2%3.6%43.83.8%42.9Policy loans

-0.4%3.0%36.83.4%38.2Mortgage loans

0.2%0.6%6.90.3%3.7Overseas equity

-0.7%8.0%98.28.8%99.1Domestic equity

-2.7%28.7%350.331.4%354.9Overseas fixed Income

-1.3%42.0%512.743.4%490.5Domestic fixed Income

5.4%9.6%117.64.2%47.9Deposit and cash equivalents

Weighting Change

%Amount%Amount（NT$bn）

2010/03/312009/12/31

Domestic Fixed Income PortfolioOversea Fixed Income Portfolio

71% 70%

1% 1%

16% 17%

9% 8%

3% 4%

Year 2009 March 2010

Bond Funds

Corp bonds

Bank debentures

Others

Gov Bonds & T-Bills

19% 17%

20%19%

45% 49%

2% 2%

12%

2% 2%

11%

Year 2009 March 2010

Others

Corp bonds

CDO

Bank notes

Agency CMO/MBS

Gov Bonds & T-Bills

Reshuffle fixed income portfolio

31

USD

unhedged

7%

Fully

Hedged

82%

Basket

Hedge

8%

Other

currencies

3%

Hedging cost and composition

99bps

-0.159

2009

-90bps

-98bps

0.24

-3.24

2009

35bps

-0.056

1Q 2010

-98bps

-65bps

-0.30

-0.58

1Q 2010

55bps

-0.088

4Q 2009

-107bps

-73bps

-0.28

-0.61

4Q 2009

155bps

Implied annualized hedging cost - on shore

-0.263TWD/USD six months swap points - on shore

1Q 2009

Reference:

3bpsHedging cost after FX gain/loss

-154bpsHedging cost

0.99FX gain (loss) (NT$bn)

-0.97 Hedging cost (NT$bn)

1Q 2009

Fubon LifeComposition as of 31 March, 2010

32

Cost of liability & Investment return

Cost of liability and investment return Cost* of liability on new money

4.95% 4.88%4.71%

4.56%4.42%

3.84%4.06%3.98%

3.12%

3.62%

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

Cost of liability Investment return

1.50%

1.65%

1.80%

1.95%

2.10%

2.25%

2.40%

2.55%

2.70%

2.85%

3.00%

3.15%

3.30%

3.45%

Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

2.19%

2.59%

*Note: The cost is based on 12 months moving average

33

2.78%

3.27%

1.71%1.67%

Agenda

Performance highlights of the group

Performance review of banking business

Performance review of insurance business

Update on CDO exposure

34

Fubon Life Year 2009 Embedded Value

Details of CDO and SIV exposure

35

7,929Total

4Fubon Bank HK

SIV

2.7%0.0%0.0%74.1%23.2%0.0%7,925Subtotal

100.0%0.0%0.0%0.0%0.0%0.0%41Fubon Bank HK

0.0%0.0%0.0%0.0%0.0%0.0%0Taipei Fubon Bank

9.0%0.0%0.0%43.7%47.3%0.0%646Fubon P&C

1.6%0.0%0.0%77.2%21.1%0.0%7,238Fubon Life

CDO

B or belowBBBBBAAAAAA

Credit rating distribution (%)Net

amountNT$ m

Update of CDO impairment / mark to market

36

*Note: Data for Fubon HK reflects the change of market value

7,91813,7445,8262,0532,623990160Total (75% of Fubon HK)

7,92914,3086,3792,3822,861984151Total

41,3431,33996137800Fubon Bank HK

031531517414100Taipei Fubon Bank

SIV：：：：

41913872352575-21-34 Fubon Bank HK

6461,29965305171360Fubon P&C

7,2389,5072,26901,214869185 Fubon Life

Corporate CDO：：：：

0206206206000Fubon Life

07257256883700Taipei Fubon Bank

Subprime CDO：：：：

Cumulative2007200820091Q 2010

Nominal net amount

Nominal gross amount

Impairment Losses/ mark to-market NT$ m

Agenda

Performance highlights of the group

Performance review of banking business

Performance review of insurance business

Update on CDO exposure

37

Fubon Life Year 2009 Embedded Value

EV and AV of Fubon Life

NT$ bn 2008/12/31 2009/12/31

Adjusted Net Worth 39.3 76.4

VIF (before CoC) 70.0 88.3

CoC (31.5) (35.8)

EV 77.7 128.8

V1NB 11.8 17.9

AV (10 years NB) 157.7 250.0

AV(20 years NB) 188.6 296.7

38

Assumptions for investment yield

39

� EV 2009 VIF: Year 2010 to 2046 at 3.68%~5.36%; Year 2047+: 5.37%

V1NB: Year 2010 to 2063 at 3.35%~5.36%; Year 2064+: 5.37%

� EV 2008 VIF: Year 2009 to 2049 at 3.66%~5.36%; Year 2050+: 5.37%

V1NB: Year 2009 to 2081at 3.04%~5.36%; Year 2082+: 5.37%

� The investment return change is mostly due to initial point of 10-year risk-free rate increase (from 1.41% of 2008 to 2.29% of 2009), the 10-year risk-free rate is still assumed to reach 4% over 10 years. Spreads for asset classes with respect to relevant risk-free rates, are applied to give the asset class yields.

The investment return curve is determined by considering the asset mix, business and existing asset run-off.

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%

Year 10 20 30 40

2009 VIF 2008 VIF

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%

Year 10 20 30 40

2009 V1NB 2008 V1NB

3.04%

3.35%

3.68%3.66%

1 1

YoY comparison of Adjusted Net Worth

NT$ bn 2008/12/31 2009/12/31

Statutory Net Worth 66.4 95.5

Special Reserve

Contingency/Catastrophe3.7 4.1

Adjusted Market Value of fixed

Income to Book Value(30.3) (22.7)

Goodwill (0.5) (0.5)

Adjusted Net Worth 39.3 76.4

40

�Statutory net worth increased by NT$29.2bn mainly due to net profit of Year 2009(NT$10.9bn) and unrealized gains(NT$17.1bn) on AFS for the recovery of economy.

�In order to reflect the book yield assumption of fixed income assets, we deductedthe AFS unrealized gains on shareholder equity.

Statutory Net Worth

as of Dec. 31, 2009

Special Reserve Adjusted Market Value

of f ixed Income to Book

Value

Goodw ill Adjusted Net Worth

as of Dec. 31, 2009

Movement of Adjusted Net Worth

95.5 +4.1 -22.7

-0.5 76.4

NT$ bn

41

Value of In-force Movement

2008 VIF

(before CoC)

Model

Change

Valuation Date

Movement

Data

Change

Assumption

Change

2009 VNB

(before CoC)

2009 VIF

(before CoC)

70.0 -2.1 -1.0 -1.1 +1.4

+20.9 88.3

NT$ bn

42

Growth of VIF reflected contribution of strong FYP momentum in 2009

EV & AV Sensitivities

Base Case Scenario

Inv Return

- 0.25%

Inv Return

+ 0.25%

RDR

-1%

RDR

+ 1%

Adjusted Net Worth 76.4 76.4 76.4 76.4 76.4

VIF (before CoC) 64.4 112.0 88.3 93.9 83.5

CoC (37.2) (34.4) (35.8) (33.0) (38.0)

EV 103.6 154.0 128.8 137.2 121.9

V1NB 15.6 20.2 17.9 20.1 16.0

AV (10 years NB) 209.1 290.4 250.0 273.2 230.1

AV (20 years NB) 249.7 343.0 296.7 325.6 271.9

NT$ bn

All else equal except All else equal except

VIF : Year 2010 to 2046 at 3.68%~5.36%;

Year 2047+: 5.37%

V1NB: Year 2010 to 2063 at 3.35%~5.36%;

Year 2064+: 5.37%

43

VIF Sensitivities

VIF before

CoCChange CoC

VIF after

CoC

Base Scenario 88.3 (35.8) 52.4

Mortality +10% 85.2 (3.0) (35.7) 49.5

Mortality -10% 92.2 3.9 (35.9) 56.3

Morbidity +10% 72.8 (15.5) (35.8) 37.0

Morbidity -10% 103.7 15.5 (35.8) 67.9

Lapses +10% 87.2 (1.0) (35.3) 52.0

Lapses -10% 89.4 1.2 (36.4) 53.0

Expenses +10% 85.9 (2.4) (35.8) 50.0

Expenses -10% 90.6 2.4 (35.8) 54.8

NT$ bn

Valuation Date:

31 December 2009

Solvency Basis:

200% RBC

VIF Sensitive Analysis

44

V1NB Sensitivities

V1NB before

CoCChange CoC

V1NB after

CoC

Base Scenario 20.9 (3.0) 17.9

Mortality +10% 20.8 (0.1) (3.0) 17.8

Mortality -10% 21.1 0.1 (3.0) 18.0

Morbidity +10% 20.4 (0.6) (3.0) 17.4

Morbidity -10% 21.5 0.6 (3.0) 18.5

Lapses +10% 20.2 (0.7) (2.9) 17.3

Lapses -10% 21.8 0.8 (3.2) 18.6

Expenses +10% 20.6 (0.3) (3.0) 17.6

Expenses -10% 21.3 0.3 (3.0) 18.3

NT$ bn

Valuation Date:

31 December 2009

Solvency Basis:

200% RBC

V1NB Sensitive Analysis

45

Embedded Value: Supplementary Information

46

Solvency Capital� Relaxations on 20% of URGL from stock investment is still recognized in 2009 and

resume original practice after 2009

� Two relaxations introduced in year 2008 are stipulated as permanent practice

• Preferred share and surplus-like debenture issued are allowed to be counted as

shareholder’s capital.

• Special catastrophe reserve is counted as shareholder’s capital as well

� The cost of capital is based on future capital requirement maintaining regulatory

minimum RBC level of 200% and considering following factors

• Future required capital is projected based on local RBC framework considering current

business profile and future business plan.

• K-value moves linearly from 0.46 as of 2009 to 0.50 in 2011 and beyond

• Investments in insurance-related business is added on top of RBC 200% required

capital.

47

Economic Assumptions in Year 2009

Corporate tax rateTax

10%Discount Rate

Year 2010 to 2063 at 3.35%~5.36%；

Year 2064 and beyond assume flat rate at 5.37% Investment Return – V1NB

Year 2010 to 2046 at 3.68%~5.36%；

Year 2047 and beyond assume flat rate at 5.37% Investment Return - Inforce

DescriptionsAssumptions

48

Non-Economic Assumptions

2009 actual expenses are lower than last year due to actual active

expenses management results.

Integrated expense study, expense assumption is based on company

latest experience and varies by product categories.

Expense

Interest sensitive annuity – higher than last year to reflect actual

experience

Others – better than last year to reflect actual experience.

Lapse

Cancer and surgical products – increase deterioration rate to reflect

actual experience

Others – the morbidity assumption for other products are unchanged

Morbidity

Lower than last year to reflect actual experienceMortality

ChangesAssumption

49

Thank you

50

(NT$ million) TPFB P& C Fubon Life Sec AM FHC Combined

Revenues

Insurance premiums 0 3,945 98,529 0 0 0 102,474

Commissions and fees 1,408 0 85 1,100 119 0 2,713

Loan interest 3,437 0 0 316 0 0 3,753

Other interest and dividends 1,217 276 8,355 16 1 3 9,868

Principal transactions 759 485 2,577 9 0 (26) 3,805

Realized gains (losses) -- Debt 80 3 734 4 0 0 820

Realized gains (losses) -- Equity 123 485 2,665 190 0 0 3,463

Other gains (losses) 556 (3) (822) (185) 0 (26) (479)

Other income 165 0 340 120 0 6,444 1,191

Total revenues 6,986 4,707 109,886 1,561 120 6,421 123,804

Interest expense (1,602) 0 (2) (5) 0 (546) (2,155)

Total revenues, net of interest expense 5,384 4,707 109,884 1,555 120 5,875 121,649

0 0 0 0 0 0 0

Benefits, claims, and credit losses 0 0 0 0 0 0 0

Provisions for benefits and claims 0 (2,113) (101,317) 0 0 0 (103,430)

Provision for credit losses (263) (23) 0 0 0 0 (286)

Total benefits, claims and credit losses (263) (2,136) (101,317) 0 0 0 (103,716)

0

Operating expenses (2,920) (1,378) (5,926) (1,151) (95) (104) (11,574)

Net operating profit 2,201 1,193 2,642 404 25 5,772 6,359

Net non-operating income 75 (14) 20 4 (3) 2 84

Pretax income 2,276 1,178 2,661 408 22 5,774 6,443

Income taxes (391) (171) (10) (93) (4) 196 (473)

Accumulative effect of accounting changes 0 0 0 0 0 0 0

Net income 1,885 1,008 2,651 315 18 5,970 5,970

Memo:

- Commissions and fees: net of fee expenses for banks and insurers.

-

- Other gains (losses): FX and derivatives gains/losses.

- Other income: mainly income recognized under equity method for TPFB bank and FHC.

- Operating expenses: including provision for special reserves

Fubon Financial -- Income statement (preliminary)

Other interest: including interest for credit card revolving, interbank lending & bonds, and gains from money market paper. For insurance companies,

cash dividends and rental income are also included.

Attachment1

Fubon Financial - Financial summary

08-to-09 2010

2006 2007 2008 2009 Change 1Q 4Q 1Q YoY

Income Statement Data

Revenues :

Insurance premiums 73,793 78,091 145,874 297,020 103.6% 86,497 96,806 102,474 18.5%

Net commissions and fees 10,784 15,409 10,303 10,862 5.4% 1,787 2,981 2,713 51.8%

Interest and dividends 54,278 52,021 53,962 56,257 4.3% 15,972 13,667 13,622 -14.7%

Principal transactions 4,733 5,491 354 11,410 3120.9% 1,653 4,777 3,805 130.2%

Others * 2,666 3,194 2,231 3,230 44.8% 1,251 526 1,191 -4.8%

Total revenues 146,255 154,206 212,724 378,779 78.1% 79,778 118,758 123,804 55.2%

Interest expense 24,803 21,088 20,567 9,729 -52.7% 3,086 1,879 2,155 -30.2%

Total revenues, net of interest expense 121,452 133,118 192,157 369,049 92.1% 76,692 116,879 121,649 58.6%

Benefits, claims and provision for loan losses 86,444 84,325 148,260 300,070 102.4% 63,521 98,412 103,716 63.3%

Total operating expenses 26,045 30,959 31,911 47,112 47.6% 10,516 12,969 11,574 10.1%

Net non-operating income 643 (1,144) (232) (273) -17.8% 159 (4) 84 -47.1%

Income before Tax 9,606 16,689 11,754 21,593 83.7% 2,814 5,494 6,443 129.0%

Net Income 8,400 14,432 10,875 19,938 83.3% 2,436 5,224 5,970 145.0%

Balance Sheet Data

Total assets 1,724,453 1,803,936 2,006,720 3,060,253 52.5% 2,729,308 3,060,253 3,176,191 16.4%

Shareholders' equity 163,532 165,728 143,715 208,468 45.1% 158,549 208,468 209,552 32.2%

Summary ratios

Double leverage 102% 102% 111% 108% 114% 108% 111%

Equity / Assets 9.5% 9.2% 7.2% 6.8% 5.8% 6.8% 6.6%

Return on average assets 0.50% 0.82% 0.57% 0.79% 0.41% 0.69% 0.77%

Return on average equity 5.26% 8.77% 7.03% 11.32% 6.45% 10.17% 11.43%

Cash dividend per share NT$1.00 NT$1.50 NT$0.00 NT$2.00

2009 Change

Note: "Others": reflects income recognized for subsidiaries & elimination for consolidation purpose .

NT$ millions, except for percentagesFull Year

Attachment2

Taipei Fubon Bank - Financial summary

08-to-09 2010

2006 2007 2008 2009 Change 1Q 4Q 1Q YoY QoQ

Income statement data

Interest income 41,585 37,041 37,755 20,335 -46.1% 6,079 4,533 4,652 -23.5% 2.6%

Interest expense 23,293 19,859 19,780 8,695 -56.0% 2,852 1,588 1,602 -43.8% 0.9%

Net interest income 18,292 17,181 17,975 11,640 -35.2% 3,227 2,945 3,049 -5.5% 3.6%

Net fee income 5,731 7,268 5,331 4,733 -11.2% 894 1,457 1,408 57.5% -3.3%

Other income 1,540 2,799 2,269 5,603 146.9% 1,520 1,460 926 -39.1% -36.6%

Total revenue 25,563 27,249 25,576 21,975 -14.1% 5,641 5,862 5,384 -4.6% -8.1%

SG&A expense 11,648 12,389 12,677 12,419 -2.0% 2,971 3,512 2,920 -1.7% -16.9%

Provision for credit losses 15,034 10,302 5,512 3,937 -28.6% 802 1,585 263 -67.2% -83.4%

Net non-operating income 210 (509) 441 27 -93.9% 102 11 75 -26.5% 597.3%

Income before tax (909) 4,048 7,829 5,647 -27.9% 1,970 775 2,276 15.5% 193.7%

Net income 440 3,354 6,021 5,222 -13.3% 1,756 954 1,885 7.3% 97.5%

Balance sheet data

Gross loans 618,406 662,359 758,269 835,739 10.2% 802,227 835,739 885,367 10.4% 5.9%

Credit card revolving loans 21,920 17,774 14,639 11,183 -23.6% 13,061 11,183 10,431 -20.1% -6.7%

NPL (incl. Loans under surveillances) 12,003 7,885 6,013 4,457 -25.9% 5,873 4,457 4,188 -28.7% -6.0%

Allowance for loan losses 7,663 5,308 4,422 4,975 12.5% 4,518 4,975 5,205 15.2% 4.6%

Total assets 1,085,028 1,099,741 1,228,059 1,356,995 10.5% 1,235,805 1,356,995 1,401,501 13.4% 3.3%

Deposits 802,964 816,152 967,533 1,092,305 12.9% 1,000,515 1,092,305 1,112,597 11.2% 1.9%

Shareholders' equity 72,279 75,094 79,422 81,397 2.5% 81,162 81,397 83,143 2.4% 2.1%

Summary ratios

Loan-to-Deposit spread (incl. credit cards) 2.59% 2.13% 2.02% 1.23% 1.33% 1.25% 1.30%

Loan-to-Deposit spread 1.96% 1.80% 1.75% 1.04% 1.10% 1.09% 1.14%

Net interest margin 1.90% 1.66% 1.61% 0.96% 1.12% 0.94% 0.96%

Net fee income / Total revenue 22.4% 26.7% 20.8% 21.5% 15.9% 24.9% 26.2%

Cost-to-Income ratio 45.6% 45.5% 49.6% 56.5% 52.7% 59.9% 54.2%

Return on average assets 0.0% 0.3% 0.5% 0.4% 0.6% 0.3% 0.5%

Return on average equity 0.6% 4.6% 7.8% 6.5% 8.7% 4.7% 9.2%

NPLs / Gross loans 1.94% 1.19% 0.79% 0.53% 0.73% 0.53% 0.47%

Allowance / Gross loans 1.2% 0.8% 0.6% 0.6% 0.6% 0.6% 0.6%

Allowance / NPLs 63.8% 67.3% 73.6% 111.6% 76.9% 111.6% 124.3%

Equity / Assets 6.7% 6.8% 6.5% 6.0% 6.6% 6.0% 5.9%

Gross loan to deposit ratio (incl. credit cards) 79.7% 83.3% 79.9% 77.5% 81.5% 77.5% 80.5%

Gross loan to deposit ratio 77.0% 81.2% 78.4% 76.5% 80.2% 76.5% 79.6%

Note: -

2009 ChangeFull YearNT$ millions, except for percentages

Attachment 3

Taipei Fubon Bank - Fee income breakdown & credit card statistics

Net Fee Income Breakdown

(NT$ m)

FX 353 4.4% 345 5.5% 296 5.0% 64 5.5% 75 5.6% 78 4.8% 78 4.5% 76 4.6%

Agency 119 1.5% 119 1.9% 113 1.9% 18 1.5% 20 1.5% 21 1.3% 54 3.1% 23 1.4%

Custody 136 1.7% 110 1.7% 154 2.6% 34 2.9% 36 2.7% 42 2.6% 42 2.4% 42 2.6%

Trust 289 3.6% 267 4.2% 343 5.8% 92 7.8% 75 5.6% 86 5.2% 90 5.2% 70 4.3%

Mutaul funds 5,135 63.8% 2,586 41.0% 2,156 36.6% 274 23.4% 439 32.8% 603 36.7% 840 48.6% 709 43.6%

Credit card 232 2.9% 771 12.2% 820 13.9% 189 16.1% 210 15.7% 198 12.1% 223 12.9% 236 14.5%

Guarantee 226 2.8% 235 3.7% 227 3.9% 59 5.0% 57 4.2% 55 3.3% 56 3.2% 57 3.5%

Lottery -2 0.0% 19 0.3% 53 0.9% 10 0.8% 13 1.0% 14 0.8% 17 1.0% 10 0.6%

Syndication 545 6.8% 503 8.0% 247 4.2% 46 3.9% 48 3.6% 92 5.6% 61 3.6% 98 6.0%

Other 236 2.9% 378 6.0% 323 5.5% 108 9.2% 110 8.2% 111 6.7% -5 -0.3% 89 5.4%

Insurance(1) 780 9.7% 970 15.4% 1,153 19.6% 279 23.8% 257 19.2% 344 20.9% 272 15.7% 219 13.4%

Total net fee income 8,048 100.0% 6,301 100.0% 5,885 100.0% 1,173 100.0% 1,339 100.0% 1,644 100.0% 1,729 100.0% 1,627 100.0%

Of which, Wealth management 6,204 77.1% 3,823 60.7% 3,652 62.0% 645 55.0% 771 57.6% 1,033 62.9% 1,202 69.5% 997 61.3%

Note:

(1) The fee income is booked in insurance agency company which is a subsidiary of Taipei Fubon bank.

(2) Corporate banking fees include FX,agency,custody,guarantee and syndication

(3) Wealth management fees include trust, mutual funds and insurance

Credit Card Statistics

Cards in force

Active cards

Outstanding receivables (NT$m)

Outstanding revovling balance (NT$m)

YTD spending (NT$m)

Avg per-card spending per mo. (NT$)

90-day DLQ

30-day DLQ

YTD net charge-off ratio (annualized)

4Q 2009

Dec-09

1,924,327

1Q 2010

Dec-07 Dec-08 Dec-09 Jun-09 Sep-09 Mar-10

2008 2009

2,136,223

Mar-09

2,084,209 1,982,046

1,571,312 1,461,751

2,391,390 2,187,774 1,924,327

1,421,569 1,416,7351,451,4621,421,374

17,774 14,639

29,468 24,798 22,680

11,183 12,306 11,687

22,129 22,226

21,281

13,061

43,959 69,850

21,686

4,363 3,742

119,209 103,472 96,928

3,954 3,442 3,724

0.94%

3,306

0.49% 0.72% 0.63%

3.07% 2.99% 1.48%

1.02% 0.89%

3.02% 2.27% 1.92%

7.27%11.35% 8.81% 5.19% 6.80% 5.86%

2007 1Q 2009 2Q 2009 3Q 2009

1,421,374

22,680

11,183

96,928

3,954

0.49%

1.48%

5.19%

1,888,105

1,400,004

21,279

1.03%

1.93%

10,431

27,038

4,741

0.38%

Attachment4

Fubon Insurance - Financial summary

08-to-09 2010

2006 2007 2008 2009 Change 1Q 4Q 1Q YoY QoQ

Income statement data

Gross written premium 24,197 23,939 23,130 22,412 -3.1% 6,385 5,401 6,149 -3.7% 13.9%

Net written premium 14,858 15,127 15,588 15,444 -0.9% 3,975 3,947 4,240 6.7% 7.4%

Net earned premium 14,884 14,764 15,566 15,351 -1.4% 3,885 3,851 3,945 1.5% 2.5%

Net claims and claims adjustments 8,108 7,009 7,324 7,623 4.1% 1,582 2,012 2,113 33.6% 5.0%

underwriting & operating expense 5,521 5,778 5,736 5,406 -5.7% 1,402 1,482 1,385 -1.2% -6.6%

Underwriting profit 1,243 1,433 1,851 1,734 -6.3% 722 278 370 -48.7% 33.3%

Total investment income 1,948 1,862 1,460 1,458 -0.2% 277 674 762 175.0% 13.1%

Net non-operating income (365) (651) (820) (832) -1.4% (260) 16 46 N.M 196.5%

Income before tax 2,826 2,644 2,490 2,360 -5.2% 739 967 1,178 59.5% 21.8%

Net income 2,400 2,012 2,045 1,371 -33.0% 599 858 1,008 68.3% 17.4%

Balance sheet data

Fixed income assets 20,629 19,994 20,532 23,669 15.3% 18,835 23,669 24,372 29.4% 3.0%

Investment assets 41,533 43,138 42,780 47,564 11.2% 41,594 47,564 48,617 16.9% 2.2%

Total assets 51,590 54,448 59,047 63,368 7.3% 61,868 63,368 64,664 -3.7% 4.8%

Reserves for operations and liabilities 22,699 24,639 34,094 35,673 4.6% 35,205 35,673 36,333 3.2% 1.9%

Total liabilities 29,959 33,209 41,677 41,043 -1.5% 43,780 41,043 42,010 -4.0% 2.4%

Shareholders' equity 21,631 21,239 17,370 22,325 28.5% 18,088 22,325 22,654 25.2% 1.5%

Summary ratios

Net claim ratio 54.5% 47.5% 47.1% 49.7% 40.7% 52.2% 53.6%

Net expense ratio 37.1% 39.1% 36.8% 35.2% 36.1% 38.5% 35.1%

Net combined ratio 91.6% 86.6% 83.9% 84.9% 76.8% 90.7% 88.7%

Interest yield on fixed income investment 3.3% 3.7% 4.3% 3.8% 4.6% 3.9% 3.5%

Total investment return 4.3% 4.4% 3.4% 3.2% 2.6% 5.7% 6.3%

Solvency margin (NWP / Equity) 68.7% 71.2% 89.7% 69.2% 87.9% 70.7% 74.9%

Retention ratio 61.4% 63.2% 67.4% 68.9% 62.3% 73.1% 69.0%

Return on average assets 4.2% 3.8% 3.6% 2.2% 4.0% 5.3% 6.3%

Return on average equity 9.4% 9.4% 10.6% 6.9% 13.5% 15.7% 17.9%

Change2009NT$ millions, except for percentages

Full Year

Attachment 5

Fubon Life - Financial summary

YoY 2010

2007 2008 2009 Change 1Q 4Q 1Q YoY QoQ

Income statement data

First year premium(exclude investment-linked) 51,771 118,337 190,847 61.3% 43,864 65,126 69,600 58.7% 6.9%

Total earned premium (net) 153,903 208,517 290,488 39.3% 68,669 92,955 98,529 43.5% 6.0%

Total investment income 30,492 24,717 39,878 61.3% 7,278 11,166 10,931 50.2% -2.1%

Other income 14,846 10,925 2,779 -74.6% 1,097 463 425 -61.2% -8.1%

Total operating revenue 199,241 244,159 333,145 36.4% 77,045 104,584 109,884 42.6% 5.1%

Claim and benefit expense 88,387 92,787 83,580 -9.9% 17,166 27,844 27,305 59.1% -1.9%

Net commission expense 11,900 11,567 12,066 4.3% 3,142 3,213 3,342 6.4% 4.0%

Net provision in policy reserve 71,533 125,382 213,665 70.4% 52,693 66,976 74,012 40.5% 10.5%

General and administrative expense 12,952 12,194 10,868 -10.9% 2,565 2,846 2,492 -2.8% -12.4%

Total operating expense 185,236 242,236 321,408 32.7% 76,004 100,990 107,243 41.1% 6.2%

Net non-operating income (27) 139 133 -3.8% 22 45 20 -10.3% -55.7%

Income before tax 13,977 2,062 11,871 475.7% 1,063 3,639 2,661 150.4% -26.9%

Net income 12,128 1,612 10,870 574.4% 499 3,257 2,651 431.3% -18.6%

Balance sheet data

Fixed income assets 680,607 837,156 1,028,178 22.8% 876,372 1,028,178 1,114,690 27.2% 8.4%

Investment assets 762,608 894,578 1,131,029 26.4% 946,131 1,131,029 1,219,769 28.9% 7.8%

U-linked assets 130,071 113,874 157,693 38.5% 112,829 157,693 159,118 41.0% 0.9%

Total assets(1) 797,628 936,444 1,183,181 26.3% 985,439 1,183,181 1,273,460 29.2% 7.6%

Policy reserve(1) 701,533 825,319 1,038,127 25.8% 877,982 1,038,127 1,111,997 26.7% 7.1%

Total reserve(1) 713,520 838,315 1,052,437 25.5% 891,454 1,052,437 1,126,849 26.4% 7.1%

Total liabilities(1) 739,124 870,071 1,087,648 25.0% 927,089 1,087,648 1,179,285 27.2% 8.4%

Shareholders' equity 58,503 66,373 95,533 43.9% 58,350 95,533 94,175 61.4% -1.4%

Note(1) :excl. investment-linked

Summary ratios

Claims and benefits ratio 57.4% 44.5% 28.8% 25.0% 30.0% 27.7%

Expense ratio 8.4% 5.8% 3.7% 3.7% 3.1% 2.5%

Persistency ratio - 13th month N.A 88.2% 87.4% 89.2% 87.4% 86.3%

Return on average assets 1.6% 0.2% 1.0% 0.2% 1.1% 0.9%

Return on average equity 18.2% 2.6% 13.4% 3.2% 13.9% 11.2%

Interest yield on fixed income investment 2.81% 3.18% 3.27%

Total investment return 4.28% 3.16% 4.06%

Note: (1) Exclude investment-linked

(2) Assets under separate accounts are not included in ROA calculation.

(3) All data are on a pro forma basis.

NT$ millions, except for percentages2009 Change

Attachment6

Fubon Securities - Financial summary

08-to-09 2010

2006 2007 2008 2009 Change 1Q 4Q 1Q YoY QoQ

Income statement data

Brokerage commissions 3,721 5,046 3,291 4,382 33.2% 619 1,244 1,050 69.6% -15.6%

Net interest income 1,247 1,607 1,344 1,021 -24.1% 190 289 325 71.4% 12.6%

Fee income 276 210 165 244 48.1% 34 111 69 104.4% -38.0%

Net principal transactions 1,808 2,392 261 1,387 431.8% 267 211 (25) N.M N.M

Net financial products gains 239 (194) 168 57 -65.7% 1 60 34 4762.5% -43.7%

Total operating revenue 7,358 9,167 5,290 7,138 34.9% 1,122 1,945 1,458 30.0% -25.0%

Total operating expense 4,139 4,886 4,194 4,664 11.2% 882 1,461 1,151 30.6% -21.2%

Net non-operating income 653 382 253 277 9.4% 75 63 101 34.7% 59.5%

Income before tax 3,871 4,663 1,349 2,751 103.8% 315 547 408 29.4% -25.4%

Net income 2,859 3,923 1,199 2,408 100.7% 309 478 315 2.0% -34.1%

Balance sheet data

Margin loans 22,320 26,225 8,510 21,128 148.3% 10,875 21,128 21,218 95.1% 0.4%

Total assets 60,548 63,727 46,390 47,507 2.4% 39,012 47,507 48,388 24.0% 1.9%

Current liabilities 26,618 27,962 13,373 15,867 18.6% 10,574 15,867 16,670 57.6% 5.1%

Total liabilities 27,412 28,827 13,809 16,370 18.5% 11,015 16,370 17,191 56.1% 5.0%

Total shareholders' equity 33,136 34,900 32,581 31,137 -4.4% 27,997 31,137 31,196 11.4% 0.2%

Summary ratios

Consolidated data

Total expenses / Total revenues 56.3% 53.3% 79.3% 65.3% 78.6% 75.1% 78.9%

Return on average assets 4.8% 6.3% 2.2% 5.1% 2.9% 3.9% 2.6%

Return on average equity 8.9% 11.5% 3.6% 7.6% 4.1% 6.2% 4.0%

Margin loans / Total assets 36.9% 41.2% 18.3% 44.5% 27.9% 44.5% 43.9%

Margin loans / Shareholders' equity 67.4% 75.1% 26.1% 67.9% 38.8% 67.9% 68.0%

Equity / Total assets 54.7% 54.8% 70.2% 65.5% 71.8% 65.5% 64.5%

Other Data - Unconsolidated

Revenue / Employee 3.5 4.5 2.4 3.2 2.1 3.5 2.6

Commission / Broker 3.2 4.6 2.7 3.5 2.1 3.9 3.3

Compensation / Revenue 29% 28% 38% 32% 38% 39% 39%

NT$ millions, except for percentagesFull Year Change2009

Attachment 7

Fubon Asset Management - Financial summary

08-to-09 2010

2006 2007 2008 2009 Change 1Q 4Q 1Q YoY QoQ

Income statement data

Fee and commission income 707 697 422 464 10.0% 78 167 119 52.6% -28.7%

Total operating expense 416 422 350 349 -0.3% 74 99 95 28.4% -4.1%

Net non-operating income (588) (683) (657) (15) 97.7% (15) 1 (2)86.7% N.M

Income before tax (298) (408) (587) 100 N.M (11) 69 22 N.M -68.1%

Net income (393) (478) (366) 66 N.M (7) 51 18 N.M -65.0%

Balance sheet data

Total assets 1,224 1,045 924 1,003 8.5% 891 1,003 996 11.8% -0.7%

Shareholders' equity 1,075 597 865 932 7.7% 858 932 949 10.6% 1.8%

Other data

AUM 157,400 124,700 94,800 170,100 79.4% 115,700 170,100 164,700 42.4% -3.2%

Bond fund 93,300 49,600 46,200 56,800 22.9% 64,800 56,800 52,600 -18.8% -7.4%

Equity 18,600 24,000 12,200 23,700 94.3% 13,900 23,700 25,900 86.3% 9.3%

Others 45,500 51,100 36,400 89,600 146.2% 37,000 89,600 86,200 133.0% -3.8%

Summary ratios

Expense ratio 58.9% 60.5% 82.9% 75.2% 94.9% 59.3% 79.8%

Return on average assets -27.6% -42.1% -37.2% 6.9% -3.1% 21.2% 7.2%

Return on average equity -30.9% -57.2% -50.1% 7.4% -3.3% 22.7% 7.7%

NT$ millions, except for percentagesFull Year Change2009

Attachment8

Outstanding Shares

(million shares)

Issued shares : 8,125

Treasury shares : -

Outstanding shares 8,125

As of March 31, 2010

Attachment 9