New TAIWAN COOPERATIVE BANK Disclosure/Documents... · 2011. 9. 13. · F i nac l S tem s C o n...

Stock No: 5854

2009ANNUAL REPORT

SINCE 1946

P r o a c t i v e • A g i l e • I n n o v a t i v e

TAIWAN COOPERATIVE

BANK

77, KUANCHIEN ROAD, TAIPEITAIWAN, REPUBLIC OF CHINATEL: +886-2-2311-8811FAX: +886-2-2389-0704http://www.tcb-bank.com.tw

TAIWANCOOPERATIVEBANK

Contents03

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48

54

Letter to Shareholders

Financial Highlights

Organization Chart & Bank's Subsidiaries Chart

Board of Directors & Supervisors & Executive Officers

Bank Profile

Main Business Plans for 2010

Market Analysis

Risk Management

Statement of Internal Control

Supervisors' Report

Financial Statements

Consolidated Financial Statements

Designated Foreign Exchange Banks

Head Office & Overseas Units & Subsidiaries

Since 1946

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TAIWANCOOPEERATIVEBANK

Letter to Shareholders

In the aftermath of financial tsunami, global major countries remained stuck in an economic recession in the fi rst half year of 2009 which resulted in the shrinkage of foreign trade volume and the continuous increase in unemployment rate. As for Taiwan’s economic situation, in terms of the decline in exports and rising unemployment rate, the Central Bank cut discount rate successively to a record low of 1.25% in Jan. and Feb. 2009. However, thanks to a continual recovery of global economy, some economic indicators, such as the import and export growth, industrial production, and private consumption expenditure, have been improved and turned up gradually to the level before the fi nancial tsunami happened. According to the forecast announced in Feb.2010 by the Directorate-General of Budget, Accounting and Statistics (DGBAS), the economic growth rate is -1.87% in 2009.

Even the external environment was severe in 2009, Taiwan Cooperative Bank (hereinafter referred to as TCB) still delivered outstanding operating performance based on the solid business foundation and hard-working employees, and therefore generated a pre-tax profi t of NT$ 8.578 billion and after-tax EPS of NT$ 1.28, outperforming most of peer banks in Taiwan. Besides, TCB keeps occupying leading positions in both deposit and loan businesses in Taiwan banking industry. Furthermore, in the end of Dec. 2009, the non-performing loan (NPL) ratio was 1.43%, a slight drop of 0.09% compared with 1.52% of last year; and the coverage ratio was 65.78%, a huge increase of 8.28% compared with 57.50% of last year. Both fi gures refl ected the apparent enhancement of TCB’s asset quality.

Looking forward to 2010, TCB believes the development of banking business will benefit from the ongoing global economic recovery; however, the unemployment rate stays at a high level, the fiscal deficit deteriorates among US, Japan and Euro zone countries, and sustainability of global economic recovery still remains uncertain. Moreover, after the “Memorandum of Understanding (MOU) on Cross-Strait Financial Supervision” became effective, the development of domestic banking industry, as a result of facing both opportunity and challenge, has reached a brand new milestone. In addition to the planned capital increase to

Even the external environment was severe in 2009, Taiwan Cooperative Bank (hereinafter referred to as TCB) still delivered outstanding operating performance based on the solid business foundation and hard-working employees, and therefore generated a pre-tax profi t of NT$ 8.578 billion and after-tax EPS of NT$ 1.28, outperforming most of peer banks in Taiwan. Besides, TCB keeps occupying leading positions in both deposit and loan businesses in Taiwan banking industry. Furthermore, in the end of Dec. 2009, the non-performing loan (NPL) ratio was 1.43%, a slight drop of 0.09% compared with 1.52% of last year; and the coverage ratio was 65.78%, a huge increase of 8.28% compared with 57.50% of last year. Both fi gures refl ected the

Looking forward to 2010, TCB believes the development of banking business will benefit from the ongoing global economic recovery; however, the unemployment rate stays at a high level, the fiscal deficit deteriorates among US, Japan and Euro zone countries, and sustainability of global economic recovery still remains uncertain. Moreover, after the “Memorandum of Understanding (MOU) on Cross-Strait Financial Supervision” became effective, the development of domestic banking industry, as a result of facing both opportunity and challenge, has reached a brand new milestone. In addition to the planned capital increase to

Even the external environment was severe in 2009, Taiwan Cooperative Bank (hereinafter referred to as TCB) still delivered outstanding operating performance based on the solid business foundation and hard-working employees, and therefore generated a pre-tax profi t of NT$ 8.578 billion and after-tax EPS of NT$ 1.28, outperforming most of peer banks in Taiwan. Besides, TCB keeps occupying leading positions in both deposit and loan businesses in Taiwan banking industry. Furthermore, in the end of Dec. 2009, the non-performing loan (NPL) ratio was 1.43%, a slight drop of 0.09% compared with 1.52% of last year; and the coverage ratio was 65.78%, a huge increase of 8.28%

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2009 ANNUAL REPORTTAIWAN

COOPEERATIVEBANK

3

strengthen TCB’s business per se, TCB will devote itself to cultivating client relationship, reducing cost, and enhancing risk control for the sake of bolstering TCB’s operational foundation in Taiwan. By means of the establishment of BNP Paribas Assurance TCB Life Insurance Company and through more than 300 branches in Taiwan, TCB can offer its integrated banking services and assorted fi nancial products to TCB’s clients and boost the synergy stemmed from cross-selling operations. Besides, TCB aims to set up a branch in Sydney Australia so as to extend its overseas network and increase the proportion of profi t contribution from overseas markets. With respect to the strategy on developing China’s market, TCB will adopt a reliable and appropriate conservative principle to grasp new opportunities derived from the opening up of cross-strait fi nancial sector. Last but not least, TCB will endeavor to create remarkable business performance and mold itself into a top-tier bank in the Asia-Pacifi c Region in a bid to repay the support and encouragement from all TCB’s shareholders.

Major Achievements in 2009 TCB won fi rst-place in “the Forth Program to Encourage Lending by Domestic Banks to Small and

Medium Enterprises” ( appraisal period: Jul. 01, 2008 ~ Dec. 31, 2009), which was implemented by Financial Supervisory Commission (FSC).

TCB successfully issued 5.5-year subordinated fi nancial debentures for a total amount of NT$ 8.1 billion for the sake of elevating the Capital Adequacy Ratio (CAR).

TCB obtained the approval of co-current operation of securities investment consulting business from Financial Supervisory Commission (FSC) in Jul. 2009.

TCB set up Danfong Branch in Taipei County, transformed Jiankang Mini Branch to Jiankang Branch in Taipei City, and closed Guangwu Mini Branch and Magong Branch. Also, TCB moved Dongtoufen Branch in MiaoLi County and Songbei Branch in Taipei City, and changed both name to Jhunan Branch and Nanmen Branch respectively.

TCB completed setting up seven appointed foreign-exchange branches (eg. Jhongsin Branch) and another seven appointed mini foreign-exchange branches (eg. Lujhu Branch). TCB inaugurated purchasing and selling Renminbi Bills business in 119 business units. (In the end of Dec. 2009, there were 277 TCB branches engaging in purchasing and selling Renminbi Bills business)

TCB’s Hong Kong Branch inaugurated “online banking searching service”, “wealth management business” and “online banking – deposit transaction searching service for OBU account” to offer diverse wealth management services as well as convenient and sound E-banking services to Cross-Strait Tri-Regional clients. Also, Hong Kong Branch has received the permission from Financial Supervisory Commission (FSC) to engage in the Renminbi business.

TCB joined in Factors Chain International (FCI Network), whose business region covers over 20 countries, to tightly meet the business demand of clients.

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TCB increased the number of wealth management fl agship branches to 7 and grew the number of exclusive wealth management zone to 264, burnishing its professional wealth management image.

TCB promoted its Wealth Management Infinite Card, Home-loan Platinum Credit Card, and Business Card in order to attract high-quality customers. Besides, regarding Government Internet Purchasing Card, TCB achieved an outstanding result in the payment amount which was ranked No.1 in Taiwan Market.

TCB engaged in the out-of-court pre-negotiation mechanism under the Consumer Debt Resolution ACT.

TCB stepped into consumer loan businesses of “NT$ 200 Billion Special Preferential Housing Loan Program appropriated by Ministry of Interior” and “Winner Personal Consolidated Loan”.

Operating Performance in 2009 Net interest income: NT$ 22,659,445,000.

Net non-interest income: NT$ 9,432,487,000.

Bad-debt expense: NT$ 5,229,495,000.

Operating expense: NT$ 18,284,546,000.

Earnings before income tax: NT$ 8,577,891,000.

Net income: NT$ 6,874,992,000.

Basic earnings per share: NT$ 1.28.

Diluted earnings per share: NT$ 1.27.

TCB stepped into consumer loan businesses of “NT$ 200 Billion Special Preferential Housing Loan Program appropriated by Ministry of Interior” and “Winner Personal Consolidated Loan”.

Operating Performance in 2009 Net interest income: NT$ 22,659,445,000.

Net non-interest income: NT$ 9,432,487,000.

Operating expense: NT$ 18,284,546,000.

Earnings before income tax: NT$ 8,577,891,000.

President

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COOPEERATIVEBANK

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Teng-Cheng Liu , Chairperson；Chiu-Jung Tsai , President (front: from left to right)

Thomas K.T. Ho , E.V.P. & General Auditor；Wen-Long Lin , E.V.P.；Chung-Dea Hsieh, E.V.P.；

John S.C. Chou, E.V.P.；Chen-Yuan Tu, E.V.P.；Hong-Chen Lin, E.V.P. (from left to right)

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Operating Strategies for 2010 Continue to expand demand deposits so as to improve deposit structure and lower funding cost

effectively.

Embrace “quantity equals quality” principle to develop credit business, strive for acting as the Mandated Lead Arranger in domestic and international syndicated loans, and control loan asset quality effectively.

Build up overseas branches vigorously and speed up establishing branches in China so as to increase the proportion of overseas revenue and move forward to become an Asian regional fi nancial institution.

Accelerate the establishment of subsidiaries in life insurance, security investment trust business, and securities, strengthen customized products so as to expand the wealth management business and boost the proportion of non-interest income.

Reinforce the IT system and equipment, intensify the technique of risk control, and strengthen bank-wide risk discipline as well as safety management so as to promote business performance and asset quality.

Fortify talent recruitment and incubation so as to meet the challenges of international banking industry in the gradually complicated and fi ercely competitive environment.

Carry through the implementation and management of budget targets, follow out the cost allocation system continuously, and make flexible use of treasury management strategies so as to upgrade overall business performance.

Business Targets for 2010 Deposits: NT$ 2,017 billion (not including interbank deposits)

Loans: NT$ 1,869.65 billion

Foreign Exchange Transactions: USD 78 billion

Investment: NT$ 378.8 billion

Trust Business: NT$ 120 billion with custodial banking accounting for NT$ 80 billion

Wealth Management Business: Insurance fee income amounts to NT$ 0.406 billion

Securities: NT$ 280 billion

E-banking: NT$ 250 billion in online banking transactions

Credit Card Business: Card transactions amounts to NT$ 18.5 billion and the trade volume of credit card acquiring business amounts to NT$ 48.5 billion

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COOPEERATIVEBANK

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Financial HighlightsCondensed Balance Sheet

NT$,000 2009 2008 2007 2006 2005

CASH,CASH EQUIVALENTS AND DUE FROM THE CENTRAL BANK AND CALL LOANS TO OTHER BANKS

578,730,497 424,355,643 456,860,304 427,274,105 514,225,498

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 25,025,499 31,259,237 41,748,515 47,521,600 22,114,804

SECURITIES PURCHASED UNDER RESELL AGREEMENTS - - - - 219,173

AVAILABLE-FOR-SALE FINANCIAL ASSETS 49,771,450 64,785,297 60,247,280 61,907,516 55,670,846

DISCOUNTS AND LOANS, NET 1,797,418,534 1,832,644,545 1,729,746,205 1,713,813,847 1,274,665,865

RECEIVABLES, NET 12,833,055 20,385,892 27,872,714 27,439,825 27,096,034

HELD-TO-MATURITY FINANCIAL ASSETS 8,366,968 8,171,079 7,527,062 3,163,176 3,281,479

EQUITY INVESTMENTS UNDER THE EQUITY METHOD 7,102,083 5,628,867 5,776,283 4,908,188 1,145,541

PROPERTIES, NET 33,871,628 34,030,468 33,866,474 33,591,776 26,690,671

INTANGIBLE ASSETS 3,703,584 3,624,616 3,434,078 3,494,158 -

OTHER FINANCIAL ASSETS, NET 46,396,845 56,149,881 47,387,263 41,071,681 31,358,683

OTHER ASSETS, NET 5,312,729 6,096,156 7,078,466 9,229,352 9,474,080

TOTAL ASSETS 2,568,532,872 2,487,131,681 2,421,544,644 2,373,415,224 1,965,942,674

DUE TO THE CENTRAL BANK AND OTHER BANKS 194,092,258 202,656,838 254,816,364 254,411,303 249,060,945

DEPOSITS AND REMITTANCES 2,065,393,420 1,983,480,938 1,885,247,837 1,823,373,039 1,533,042,886

FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS 4,826,571 4,525,836 2,650,154 3,403,282 366,277

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS 54,241,801 55,961,852 43,247,160 57,157,571 39,305,020

FUNDS BORROWED FROM THE CENTRAL BANK, BANK DEBENTURES 84,420,000 77,771,000 84,321,000 77,864,000 36,044,300

ACCRUED PENSION COSTS 1,906,142 1,763,570 1,645,063 1,293,153 292,014

OTHER FINANCIAL LIABILITIES 3,764,909 4,554,131 4,608,630 4,942,175 3,434,269

OTHER LIABILITIES 49,626,818 49,215,324 42,569,710 53,238,451 40,468,046

TOTAL LIABILITIES 2,458,271,919 2,379,929,489 2,319,105,918 2,275,682,974 1,902,013,757

CAPITAL STOCK 54,855,000 54,855,000 47,700,000 45,000,000 25,398,304

RESERVE FOR CAPITALIZATION - - - - 2,539,830

CAPITAL SURPLUS-PAID-IN CAPITAL IN EXCESS OF PAR VALUE 32,242,401 32,207,944 32,207,944 34,907,944 23,696,319

RETAINED EARNINGS 19,153,442 16,586,850 18,732,715 12,720,380 8,176,723

REVALUATION INCREMENTS ON PROPERTIES 4,333,796 4,420,439 4,419,580 4,024,155 4,025,113

U N R E A L I Z E D G A I N S O N F I N A N C I A L INSTRUMENTS 1,379,021 867,133 (896,081) 902,595 -

CUMULATIVE TRANSLATION ADJUSTMENTS 195,447 162,980 274,568 177,176 92,628

TREASURY STOCK - 100,000 THOUSAND SHARES (1,898,154) (1,898,154) - - -

TOTAL STOCKHOLDERS' EQUITY 110,260,953 107,202,192 102,438,726 97,732,250 63,928,917

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Condensed Statement of IncomeNT$,000 2009 2008 2007 2006 2005

NET INTEREST 22,659,445 27,356,107 24,349,684 21,287,921 16,429,931NET REVENUES AND GAINS OTHER THAN INTEREST 9,432,487 6,912,973 10,214,607 12,060,593 8,062,913

ALLOWANCE FOR BAD-DEBT EXPENSES 5,229,495 6,248,668 4,678,962 6,987,444 -

BAD-DEBT EXPENSES FOR LOANS - - - - 5,389,910

OPERATING EXPENSES 18,284,546 18,512,537 17,943,915 15,970,732 16,299,069

INCOME BEFORE INCOME TAX 8,577,891 9,507,875 11,941,414 10,390,338 2,803,865 INCOME BEFORE CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES 6,874,992 7,530,778 9,740,373 9,135,146 2,634,351 C U M U L AT I V E E F F E C T O F C H A N G E S I N ACCOUNTING PRINCIPLES - - - 40,062 -

NET INCOME 6,874,992 7,530,778 9,740,373 9,175,208 2,634,351

Key Ratios（%）2009 2008 2007 2006 2005

STABILITY RATIOS

DEBT RATIO(TOTAL LIABILITIES/TOTAL ASSETS) 95.69% 95.67% 95.75% 95.86% 96.73%

FIXED ASSETS/NET WORTH 30.72% 31.74% 33.06% 34.37% 41.75%

LIQUIDITY RESERVE RATIO 19.97 13.14 15.58 15.41 23.81

PROFITABILITY RATIOS

RETURN ON TOTAL ASSETS 0.27% 0.31% 0.41% 0.42% 0.13%

RETURN ON EQUITY 6.32% 7.18% 9.73% 11.30% 4.23%

NET INCOME RATIO 21.42% 21.98% 28.18% 27.39% 10.76%

EARNINGS PER SHARE 1.28 1.38 1.78 2.01 0.70

Credit RatingCredit Rating

Rating Agency Global Long Term Global Short Term National Long Term National Short Term Outlook Release Date

S&P/TRC BBB+ A-2 twAA twA-1+ Stable 2010.01.20

Fitch BBB+ F2 AA-(twn) F1(twn) Stable 2009.12.11

Domestic RankingAssets 2

Loans 2

Deposits 2

Branches 1

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COOPEERATIVEBANK

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10

Organization Chart

PresidentExecutive

Vice Presidents

General Auditor

Electronic Banking Department

Credit Card Department

AdministrativeManagement Division

SecuritiesDepartment

Auditing Division,Board of Directors

Personal Banking Department

Loan Assets Management Department

Corporate Banking Department

Secretariat,Board of Directors

Business Management Department

Credit Management Department

Wealth Management Department

Trust Department

International Banking Department

Treasury Department

Accounting Division

Information Technology Division

Credit Analysis and Research Division

Risk Management Division

Human Resource Division

Legal Affairs Division

Shareholders' Meeting

Board of Directors

Chairperson

Supervisors

Centralized Operation

Center

Regional Credit

Management Center

Regional NPL Management

Center

Training Center

Domestic Branches．

Overseas Branches&

Representative Offi ce．

Offshore Banking Branch

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Bank’s Subsidiaries Chart

Cooperative — IAsset Management

Corporation

Shareholding

100.00%

Shareholding

100.00%

Shareholding

100.00%

Shareholding

80.00%

Shareholding

79.67%

TaiwanCooperative Bank

Co-operative Asset Management Co., Ltd.

Cooperative Insurance Brokers Co., Ltd.

United Taiwan Bank

Taiwan Cooperative Bills Finance Corporation


COOPEERATIVEBANK

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Board of Directors & Supervisors & Executive Offi cers

Board of Directors Executive Offi cers

Chairperson

Teng-Cheng Liu

President

Chiu-Jung Tsai

Managing Directors

Chiu-Jung Tsai

Shui-Yuan Wu

Chuan-Chung Liu

Tse-Ching Huang

Executive Vice Presidents

John S.C. Chou

Chung-Dea Hsieh

Chen-Yuan Tu

Hong-Chen Lin

Wen-Long LinDirectors

Dai-Ming Fann

Ting-Jeng Chan

Kuo-Tay Chen

Pei-Chih Chang

Chuang-Chang Chang

Chin-chien Chen

Che-Hui Huang

Chih-Hsing Chang

E-Dawn Chen

Yen-Shu Tsai

Jung-Ching Su

Chih-Yung Chen

Sing-Lon Lin

Chih-Ching Lian

E. V. P. & General Auditor

Thomas K.T. Ho

S.V.P. & G.M., Business Management Department

Wu-Lieh Tsai

S.V.P. & G.M., Corporate Banking Department

Cheng-Hsiu Chen

S.V.P. & G.M., Credit Management Department

Dah-Wei Wu

S.V.P. & G.M., Treasury Department

Pe-Chu Wu

V.P. & G.M., International Banking Department

Meng-Yung Chang

S.V.P. & G.M., Personal Banking Department

Mao Liao

S.V.P. & G.M., Wealth Management Department

Shih-Hong Chao

S.V.P. & G.M., Trust Department

Fei-Ling Hu

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Board of Supervisors Executive Offi cers

Resident Supervisor

Shou-Tzuoo Huang

Supervisors

Jen-Poo Chen

Len-E Chen

Kwo-Chun Lee

Ching-Yu Cheng

S.V.P .& G.M., Securities Department

Shih-Chih Tsai

S.V.P. & G.M., Electronic Banking Department

Chun-Lung Chuo

S.V.P. & G.M., Credit Card Department

Wen-Jenq Wu

S.V.P. & G.M., Loan Assets Management Department

Cheng-Kang Chen

S.V.P. & G.M., Administrative Management Department

Hsueh-Tao Wu

S.V.P. & G.M., Accounting Division

Chen-Tsai Chou

S.V.P. & G.M., Information Technology Division

Hsiang Hu

S.V.P. & G.M., Credit Analysis and Research Division

Michael M.J. Chang

S.V.P. & G.M., Risk Management Division

Shiaw-Yen Lun

S.V.P. & G.M., Human Resource Division

Sue-Chuan Wang

S.V.P. & G.M., Legal Affairs Division

Chih-Cheng Peng

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COOPEERATIVEBANK

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Bank Profi le

Date of establishment : Oct. 5, 1946.

History

TCB was established in 1946 through the reorganization of the “Taiwan Industry Bank” amid the Japanese colonial era. Taiwan Provincial Government along with cooperative groups, farmers’ associations, fi shermen’s associations, and irrigation associations contributed capital to TCB in total amount of 25 million Old Taiwan Dollar.

TCB has constantly expanded its operating scale thanks to the efforts of the entire staff over the past 60 years, and at the end of 2009 its capitalization stood at NT$54.855 billion.

Under the provisions of Article 52 of the Banking Act, TCB achieved corporate status in May 1985 and was reorganized as Taiwan Cooperative Bank Co., Ltd. in Jan. 2001. TCB went public in Jun. 2003 and was listed on the stock market in Nov. 2004. In Feb. 2006, TCB changed its Chinese name, remaining its English name unchanged, and merged with The Farmers Bank of China in May of the same year. As of the end of 2009, TCB has a total of 306 domestic and overseas branches (including the Manila Branch, Los Angeles Branch, Seattle Branch, Hong Kong Branch and Beijing Representative Office, Siahan Office in Taiwan), owning the most extensive branch network among all local banks, and holds the leadership position in terms of deposits and loans. According to the Banker Magazine July 2009, TCB was ranked 160 by asset size in the top 1000 banks in the world, second only to Bank of Taiwan in its home country.

In Dec. 1992, TCB, Bank of Taiwan, Land Bank of Taiwan, and Taiwan Business Bank, jointly established United Taiwan Bank (UTB) in Belgium, and TCB obtained a 70% equity stake in UTB. In Oct. 2009, TCB acquired a 10% stake of UTB from Taiwan Business Bank, worth NT$ 127 million, leading to hold 80% of total shares of UTB. In addition, TCB established and wholly-owned Co-operative Asset Management Corp. in Oct. 2005 and boosted its capital to a total of NT$3.5billion in Mar. 2006. Co-operative Asset Management Corp. established solely with an investment of NT$ 500 million in Cooperative —ⅠAsset Management Corp. in Nov. 2005.

In Nov. 2005, TCB established and wholly owned Cooperative Insurance Brokerage Co., Ltd. with an investment of NT$10 million. In Dec. 2007, TCB established Taiwan Cooperative Bills Finance Corp. with an investment of NT$529.5 million via Debt-for-Equity Swap, taking a 50.56% stake. Moreover, to meet the minimum capital requirements ruled by the competent authority, TCB increased its shareholding in that bills fi nance company to 79.67%, total worth NT$ 2,029.5 million, by a cash increment of NT$ 1,500 million.

In Jan. 2009, TCB and BNP Paribas Assurance signed a joint venture agreement to set up BNP Paribas Assurance TCB Life Insurance Company. TCB possesses 51% of equities, worth NT$ 1,020 million, and BNP Paribas Assurance holds 49% of shares in the new insurance company.

Under its Articles of Incorporation, TCB aims to engage in banking business, developing national economic construction, and providing fi nancial adjustment for cooperative businesses, agriculture industry, and fi shery industry. In addition to providing fi nancing and development assistance for cooperative enterprises, farming and fi shery industries, and small and medium enterprises, TCB also offers deposit, loan, and foreign exchange services for business enterprises in general to facilitate funds utilization and promote the overall economic development. Therefore, TCB is a consolidated international bank providing agriculture, fi shery, and cooperative fi nancing, as well as industrial and commercial corporate fi nancing.

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Main Business Plans for 2010

Operational Management The integrated marketing function will be fulfi lled, and the growth of demand deposits business

will be stimulated by TCB’s dominant market position in credit business. In addition, customers’ cash fl ow will be fully supervised (e.g. through EDI, B2B, etc.) so that TCB could serve as the main bank for its customers.

The increase of demand deposits will be achieved by actively striving for providing services including payroll transfer for enterprises and groups, treasury deposits in all levels of government, payment of compensation on behalf of county or city governments, acting as the custodian bank for security investment trust funds, collection of equity payments for capital increases by public listed companies, agency service for paying out cash dividend, collection and payment for security settlements, and tax payment by direct debit.

The substitution of demand deposits for time deposits as loan collateral will be completely carried out to lower funding costs and heighten the proportion of demand deposits.

Corporate Banking The “quantity equals quality” principle and profi t-chasing mindset will be both espoused, and the

credit business will be expanded diligently.

The development of the real trade-based loan business will be strengthened so as to control the quality of loan assets effectively.

The “Policy Based Loans” and “SME Credit Guarantee Fund” will be wisely adopted to continuously promote SME loan business.

TCB will vigorously strive for acting as the Mandated Lead Arranger in domestic and international syndicated loan markets.

Retail Banking The risk management will be strengthened, and “Personal Secured Home Mortgage Loans by

Region and Grade Measures” and “Personal Credit Loan Scoring System” mechanisms will be employed to control loan quality.

The monitoring and control of loan quality and write-offs of overdue loans will be reinforced so as to prevent non-performing loans.

The out-of-court pre-negotiation mechanism under the Consumer Debt Resolution ACT will be fully utilized to lower TCB’s non-performing loans, to improve TCB’s asset quality, and to reduce TCB's loss on bad debts.

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COOPEERATIVEBANK

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Treasury Management The Funds Transfer Pricing (FTP) system will be established to meet bank-wide business

development, and the strategy based on the adjustment of interbank offered rate will be carried out, so as to perform fl exible funding allocation and reinforce overall business performance.

Investment targets with growth potential will be chosen diligently in light of the domestic and international economic recovery; on top of that, strategies in regard to adjustment of duration and utilization of Interest Rate Swap (IRS) transaction will be applied to the investment of fi xed income securities so as to avoid the risk derived from the rise of interest rate in the future. As regards the foreign exchange transaction, a trend following approach, based on the relationship between the change of price and demand in the commodity market and foreign exchange rate of commodity currency, will be taken to earn the foreign exchange rate variance gain.

The derivative financial products will be continuously invented to meet the market trend and demand for customers. Moreover, the tailor-made customized products will be developed to the utmost so as to enlarge TCB’s source of profi ts..

The preparatory tasks for the establishment of Suzhou Branch in China will be conducted actively so as to grab business opportunities for serving Taiwanese businessmen.

The security brokerage and underwriting business will be continuously developed, the establishment of the security subsidiary will be planned actively, and then TCB’s scope of business will be broadened.

Wealth Management The wealth management specialist team in TCB branches will be built up, the profi cient fi nancial

personnel will be actively trained, and TCB’s professional image will be enhanced.

The number of wealth management fl agship branch will be increased, the various kinds of fi nancial products will be offered to customers, the customers will be assisted to perform asset allocation, and a win-win situation which benefi ts both TCB and its customers will be created.

The multimedia advertisements and marketing activities will be planned, and the internet sales platforms, client wealth management seminars, as well as community wealth management conferences will be employed, so as to expand TCB’s client base.

The domestic and foreign fund products, structured products, and fi xed-income bond products will be carefully selected, diverse range of products will be provided to customers, and the sales volume of wealth management will be expanded, so as to increase the related fee income, client number, and market share.

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Market Analysis

Areas of Service TCB, as a comprehensive bank, provides an array of fi nancial services in the fi elds of corporate

banking, retail banking, as well as wealth management, and owns a substantial branch network across Taiwan. In the end of 2009, TCB has a total of 301 domestic business units (including Siahan Offi ce). If grouped by counties, Taipei City leads the drive with 70 branches, followed by Taipei County with 40 branches and Taichung City with 30 branches. TCB also has 4 overseas branches in Manila, Seattle, Los Angeles, and Hong Kong, plus 1 representative offi ce in Beijing.

Future Demand and Supply in the Market, and Growth PotentialOn the supply side, the pressure of excessive competition among domestic financial institutions

continues to exist. In 2009, the Central Deposit Insurance Corporation (CDID) auctioned off Chinfon Bank assets to three domestic financial holding companies and banks separately. While domestic financial holding companies have reinforced their banking, life insurance, and securities territories, foreign banks have constantly merged local banks to increase their footholds in Taiwan, further expand their business, and enhance their competitiveness. Furthermore, credit to global economic recovery and MOU on cross-strait fi nancial supervision to come into effect, domestic banks will focus on the financial services between and among Taiwan, China, and Hong-Kong, showing the co-opetition relationships. Meanwhile, in the wake of the situation that China banks come to set up local branches, Taiwan banking environment enters a new era, and how to deepen the mutually-benefi cial cooperation between both sides will be the next huge challenge for Taiwan local bank players.

On the demand side, under the impact of global financial tsunami, the domestic economy has declined sharply and the capital demand from enterprises also has fallen down. The 2009 total outstanding loan amount of Taiwan banking industry posts a 0.72 percent growth year-on-year, hitting a fi ve-year low. In the third quarter of 2009, the loan-deposit interest rate spread of local banks is 1.18%, fully refl ecting the diffi culty of reducing idle funds. However, with the gradual recovery of global and local economies, local businesses will start to strengthen their investment willingness. Besides, thanks to the improved cross-strait relationship, the signing of MOU on cross-strait fi nancial supervision and aggressive negotiations on Economic Cooperation Framework Agreement (ECFA), the cross-strait economy and trade as well as investment exchanges will become more broadened so as to create new demand for funds expectedly, then driving future banking business growth.

16


COOPEERATIVEBANK

17

Competitive Niches

Counted as a benchmark bank with solid foundation and outstanding reputation

Since established in 1946, TCB has continued to deeply cultivate the domestic market, and has had a leading position among local banks in terms of market shares of deposits and loans, asset scales, and syndication loans. Especially, TCB has headed the list of successful local banks in SME loan business. More important, in early 2010, TCB, as the lead arranger, successfully organized an international syndication loan raised by Japan’s leading fi nancial service group, Nomura Holdings Inc., to further promote TCB's international brand recognition.

Employing complete marketing channels to offer a full range of fi nancial services

TCB has over 300 local branches and plenty of financial specialists in a bid to offer the most complete and professional services. For the sake of strengthening competitive advantages, TCB has gradually moved towards a fi nancial holding company, jointly with BNP Paribas Bank Group to set up "BNP Paribas Assurance TCB Life Insurance Co., Ltd" (BNPPA TCB Life) and “BNP Paribas TCB Asset Management Co., Ltd” (BNPP TCB AM). Combining TCB’s abundant experience and resources in all kinds of banking businesses, such as local syndication, foreign exchange, SME loans, wealth management, and electronic banking, with BNP Paribas Bank’s asset management skills and competencies in 45 countries, TCB will rapidly tap into the local markets of bancassurance and asset management to realize the cross-industry synergies.

Obtaining a well established and strong client base

TCB’s 60-year steady and dependable business philosophy has been highly trusted and praised by its more than 62 million clients. Not complacent about its previous achievements, TCB will continue to consolidate its core businesses, including deposits, loans, as well as foreign exchange, and reinforce the innovation of integrated marketing in trust, wealth management, electronic banking, and credit card businesses, to provide clients with complete fi nancial products and convenient fi nancial services. By doing so, TCB could build its unique competitiveness and brand image of “one-stop-shopping” with achievement of a win-win outcome for itself and its clients.

Aggressively planning for overseas deployment to tie in with local management

Although the fi nancial turmoil erupted, Hong Kong Branch of TCB has been the fi rst Taiwanese bank to obtain the permission license to do wealth management business in Hong Kong in order to provide a full spectrum of fi nancial-planning and investment-consulting services in Taiwan, Hong Kong, and China. Meanwhile, to cope with the opening-up of cross-strait financial sectors and the increasing demand from Taiwanese companies in China, TCB maps out to set up a branch in Suzhou, and will

18

actively proceed on cooperation with China banks in all kinds of businesses, including Renminbi inter-bank borrowing, the exchange of credit investigation information, and co-organizing syndication loans to Taiwanese companies. Besides the China market, TCB speeds up the establishment of Sydney Branch. Therefore, TCB is currently moving steadily towards becoming a high-quality Asia-Pacific regional bank.

Favorable and Unfavorable Factors in Future Development, and Countermeasures

Favorable Factors

IHS Global Insight predicted that global GDP will grow 2.8% in 2010 with 11.3% and 11.4% growth in export and import volume respectively. Hence, local and global trade momentums will recover and related economies are expected to continuously improve so as to enhance business capital needs.

In the wake of signing MOU on cross-strait fi nancial supervision, Taiwan’s banks could expand their service locations in China and broaden their business scopes；TCB will aggressively set up branches in China to enhance the services for Taiwanese companies and grab huge business opportunities.

To grasp competitive advantages after the financial tsunami, TCB will energetically enlarge its business territory with the set-ups of "BNPPA TCB Life" and “BNPP TCB AM” in succession. In addition, TCB will take advantage of its over-300-branch channels for cross-selling to strengthen its competitiveness.

After the competent authority, Financial Supervisory Commission has passed a set of regulations governing structured products; therefore, the development of wealth management market will be prone to be solid and mature, enabling to rebuild confidence of people and promote wealth management business well.

Unfavorable Factors

After MOU on cross-strait financial supervision took effect from Jan. 2010, China banks will come to Taiwan for setting up local branches, and thus sharpen the competitive pressure of Taiwan banking market.

The domestic unemployment rate in 2009 is 5.85%, at a record high；the real average monthly salary of 2009 is NT$ 42,509, a decrease of 4.31% year-on-year. Above indications are unbenefi cial for TCB to expand retail banking businesses, such as mortgage loans.

18


COOPEERATIVEBANK

19

The loan-deposit interest rate spread of local banks stays at its low of 1.31% in the forth quarter of 2009, and will not be improved easily under the circumstance that the structure factor of fi erce market competition still can not be eliminated.

The fact that degrees of recovery in various countries are divergent and the timing for each government exiting is also different will aggravate the fl uctuation of interest and foreign exchange rates and therefore increase the risk of economic uncertainty.

Countermeasures

To enhance the robustness of capital structure, TCB draws up to increase capital by earnings recapitalization and capital surplus transferred to common stock, from NT$ 54.8 billion to NT$ 60.0 billion, the minimum capital threshold of fi nancial holding company. Furthermore, TCB plans to increase capital by cash or non-cumulative perpetual subordinated debts so as to improve Tier 1 capital structure.

In line with the development of business and the advance of implementation effi ciency, TCB adopts the disintegration model of fi ve major business groups: risk management, business development, administrative resources, fi nancial marketing, and wealth management, with the aim of proceeding the promotion and collaboration of tasks.

To utilize electronic channels and to constantly increase demand deposits ratio in order to lower funding cost.

To monitor the industrial changes on global and local macro-economies aspects, to implement the risk management thoroughly, and to enhance the quality of TCB’s investment and loan assets for preventing bad debts from occurring.

While the domestic economy gradually turns up and the demand for capital of giant enterprises follows to rebound strongly, TCB will continue to stretch the market share of syndication loan business. Furthermore, TCB will provide integrated financial services and diversified wealth management products through “BNPPA TCB Life” and “BNPP TCB AM” so as to raise fee income of wealth management and trust products.

TCB will grasp the chance of cross-strait fi nancial liberalization, through measurement of different conditions in terms of localities, and active and steady proceedings of the confi guration in China, in order to deeply cultivate the great China market. Furthermore, TCB will establish Sydney Branch to step up expanding overseas footprints and strengthen OBU business so as to increase the weight on overseas earnings.

20

Risk Management

Credit Risk Management System

Credit Risk Strategies, Goals, Policies, and Procedures

The TCB’s credit-risk strategies are established in accordance with overall risk management targets, and are with the use of an effective risk management mechanism to identify, measure, monitor, and control different items of risk to fulfi ll the requirements of Basel II Accord .

The Bank implements investigation and follow-up management, and makes judgments in accordance with information provided by the Joint Credit Information Center and Taiwan Clearing House and Credit Rating Agencies. Risk management is also carried out in the consideration of trends in industrial growth and the needs of regional development, and on the basis of five principles: safety, liquidity, social benefi t, profi tability, and growth potential.

To establish an objective credit investigation mechanism,the Bank is implementing the credit-risk scoring and rating tools that will use systematic and objective models to quantify risk and keep it within bearable limits.

Organization and Framework of Credit Risk Management

The Board of Directors is the Bank’s highest policymaking body for credit risk management, and bears ultimate responsibility for the Bank’s credit risk.

The Risk Management Committee operates the credit risk management mechanism in accordance with credit risk decisions approved by the Board of Directors, reviews credit risk regulations, provides interdepartmental coordination on matters regarding credit risk management, and continuously monitors the performance of implementation.

The Risk Management Division carries out the planning, establishing and coordinating of the Bank's credit risk management practices, monitors the overall credit risk management, regularly summarizes information related to the Bank's credit risk management for the reviews by Board of Directors and Risk Management Committee, and also carries out risk capital requirement calculation and risk information disclosure in accordance with the authorities' regulation.

The headquarters and branches have established Credit Management Committees to review loan cases ,and to approve or reject loan applications in accordance with their level of loan authorization.

The Auditing Division of the Board of Directors carries out its auditing business in a spirit of independence, with at least one inspection per year of businesses related to credit risk and the provision of suggestions for improvement whenever necessary.

20


COOPEERATIVEBANK

21

A Loan Assets Management Committee has been set up to review the disposition and writing off of non-performing loans and loans for collection, and the writing off of losses from the disposition of assumed collateral, so as to strengthen the management of NPLs and loans for collection.

The Corporate Banking Department is responsible for loan review work and for supervising the business units in post-loan review and follow-up management. In case of irregularity in the operation of business units or in important loan cases, special reviews will be carried out as necessary, the causes of the irregularities will be investigated, and criticisms will be raised.

Scope and Characteristics of the Credit Risk Reporting and Measuring System

The Bank submits a regular Credit Risk Information Report (including information on risk positions, asset quality, limits utilization, and exceptional incidents) to high management levels (the Risk Management Committee) and the Board of Directors to serve as a reference in decision-making.

Hedging Policy, and Strategies and Procedures for Monitoring the Continuing Effectiveness of Risk-Hedging Tools

The TCB has established a Loan and Investment Policy and Credit Risk Management Criteria, and has set up rules for the concentration of different kinds of credit risk and for dealings with materially interested parties so as to manage credit risk effectively and reinforce the Bank’s credit risk management mechanism.

The Bank observes the limit regulations established by the competent agencies in its loan and investment businesses.

The Bank sets limits for the same enterprise, business group, industry, country, and type of collateral, and monitors the limits constantly. It also readjusts the limits on regular and irregular bases so as to avoid the excessive concentration of risk and assure the Bank’s stable operation.

To reduce risk, the Bank carries out its loans or investment business by soliciting suitable collateral or guarantees in accordance with the credit situation of loan clients.

Operational Risk Management System

Strategies and Procedures

The Bank’s strategy for dealing with operational risk is to evaluate the severity and probability of the occurrence of exposure to potential operational risks that have been identifi ed, and then adopt risk hedging, transfer or mitigation, reduction, assumption, or other countermeasures to maintain operational safety and a healthy operating structure that will reduce losses from operational risk.

22

The process of operational risk management includes identifi cation, measuring, monitoring, and reporting. A healthy operational risk management mechanism is used to identify such internal and external factors as business characteristics, personnel, systems, and operating environment; risk is then measured with regard to causes, results, incidence, and impact, and indexes such as operational procedures, personnel, systems, and external incidents are monitored regularly.

Organization and Framework

The Board of Directors is the Bank’s highest policymaking body for operational risk management, and the Risk Management Committee monitors the performance of management and implementation in accordance with the policies of the Board of Directors.

The Risk Management Division formulates bank-wide strategies and procedures for operational risk management, designs and introduces operational risk management mechanisms and tools, establishes and manages the bank-wide loss databank, and reports on operational risk incidents and gives suggestions to the Risk Management Committee and Board of Directors on a regular basis.

Units and personnel at all levels of the Bank observe the Bank’s operational rules, taking care of any operational risks that arise and reporting them immediately. Headquarters units manage and supervise the performance of units throughout the bank in carrying out risk management.

The Auditing Offi ce of the Board of Directors carries out an inspection of the risk management mechanism and loss incident reporting of each unit at least once a year.

Scope and Characteristics of the Operational Risk Reporting and Measurement System

To effectively identify, measure, monitor, and report on all kinds of potential operational risks in everyday business activities and management procedures, the bank has established and centralized a database for the bank-wide management of operational risk incidents, including recording and following up on the causes for the occurrence of risk incidents, amount of losses, disposition process, and impact. Beginning in 2007, analytical reports on bank-wide operational risk information and status of management are submitted regularly to Risk Management Committee and Board of Directors.

Risk Hedging and Risk Mitigation Policies, and Monitoring of Strategies and Procedures for the Continuing Effectiveness of Hedging and Mitigation Tools

Operational rules have been established and implemented in everyday operations; a reporting mechanism for incidents causing losses has been set up, together with self-assessment by the different units and the auditing work of Bank headquarters; and reports are compiled and submitted with the purpose of preventing, and reducing, operational risk.

22


COOPEERATIVEBANK

23

In its operational risk mitigation policy the Bank uses insurance or outsourcing to transfer or mitigate operational risk. It takes out comprehensive banking insurance (including coverage for disloyal behavior by employees, business venues and goods during shipment, counterfeiting of bills and securities, counterfeiting of money, and negligent loss), and fire. Operational risk in outsourcing is prevented by following the rules of the Criteria for the Outsourcing of Operations by the Taiwan Cooperative Bank.

Market Risk Management System

Strategies and Procedures

The Bank bases its market risk management policies on its overall risk management goals and product characteristics, sets investment authorization limits and stop-loss rules, and regularly evaluates and collates management information reports so as to effectively control market risks.

Organization and Framework

The Board of Directors is the Bank’s highest policymaking body for market risk management, and bears ultimate responsibility for the Bank’s market risk.

The Bank’s Risk Management Committee operates the market risk management mechanism in accordance with management decisions approved by the Board of Directors, reviews the limits for different kinds of market risk as well as limits at the sectoral level, and reviews changes in business strategies and market conditions on a scheduled basis or whenever necessary.

The Bank’s Risk Management Division carries out the work of overall market risk management bank-wide, playing the role of a centralized middle offi ce.

The mid-offi ce personnel of the different trading units follow the Bank’s market risk management regulations in managing everyday operations in real time, monitor different limits actively, and submit regular reports to the Risk Management Division.

The Auditing Division of the Board of Directors carries out its auditing business in a spirit of independence, with at least one inspection per year of businesses related to market risk and the provision of suggestions for improvement whenever necessary.

Scope and Characteristics of the Market Risk Reporting and Measurement System

The TCB’s market risk management procedures include identification, assessment, measuring, monitoring, and reporting. Risk management personnel of the different units analyze market risk positions within the scope of their responsibilities; assessment and measurement methods include statistical basic measurement methods, sensitivity analysis, and scenario analysis. Monitoring is

24

used to determine whether trading units as well as the overall and individual trading procedures for fi nancial products, including changes in position, changes in profi t and loss, trading models, and trading instruments, conform to the rules, and whether they are carried out within limits and scope of authorization.

The different trading units report trading information to their superior units on a real-time, daily, or scheduled basis, and assure the accuracy and validity of the information. The Risk Management Division submits regular reports and suggestions to the Risk Management Committee and the Board of Directors on the bank-wide implementation of market risk management, including such factors as market risk positions, risk levels, profit and loss, limits utilization, and the status of compliance with market risk management regulations.

Hedging and Mitigation Policy, and Monitoring of the Continuing Effectiveness of Hedging and Risk Mitigation Policies and Procedures

The Bank’s current risk-avoidance activity is used primarily to avoid the risk of foreign exchange and interest rate changes when investing in foreign-currency capital and securities, and hedging tools are confi ned mainly to derivative swaps. To assess changes in profi t and loss from hedging activities, derivatives traded in hedging transactions are evaluated at least twice a month as to their market value and are combined with the evaluation of profi t and loss on hedged products in reports that are submitted to the Bank’s risk management offi cials. In addition, reports are submitted to the Board of Directors monthly, and, on a seasonal basis, to the Risk Management Committee.

24


COOPEERATIVEBANK

25

Statement of Internal Control

Taiwan Cooperative BankStatement of Internal Control

On behalf of the Taiwan Cooperative Bank we declare that during the period of Jan. 1, 2009 through Dec. 31, 2009 the Taiwan Cooperative Bank did conform to the provisions of the Implementation Rules for Banks’ Internal Control and Auditing Systems by establishing an internal control system, carrying out risk management, and having audits carried out by an impartial and independent auditing unit, with reports submitted on a regular basis to the Boards of Directors and Supervisors. In its operation of the securities business, the Bank assessed the effectiveness of the establishment and implementation of its internal control system in accordance with the items for judgment of the effectiveness of internal control system as contained in the Regulations Governing the Establishment of Internal Control System by Service Enterprises in Securities and Futures Markets promulgated by the Securities and Futures Bureau of the Financial Supervisory Commission. Careful assessment shows that the Bank’s units did effectively carry out internal control and regulatory compliance during this year. This Statement will become a major part of the Bank’s annual report and its public announcements, and will be made public. Any fraudulent statements, undisclosed items, or other illegality will incur legal responsibility under Articles 20, 32, 171, and 174 of the Securities and Exchange Act.

Submitted to the Financial Supervisory Commission, Executive Yuan

Attestor Chairperson:

President:

General Auditor:

Compliance Offi cer:

Jan. 29, 2010

26

Supervisors‘ Report

We have examined, in accordance with Article 219 of the Company Law, the fi nancial statements and consolidated fi nancial statements, proposed distribution of profi t, and business reports as certifi ed by Wang, Hsiao - Hui and Hung-husiang Tsai of Deloitte & Touche, and have found no discrepancies.

Taiwan Cooperative Bank

Resident Supervisor:

Supervisor:

Supervisor:

Supervisor:

Supervisor:

Mar. 23, 2010

26


COOPEERATIVEBANK

27

Financial Statement

INDEPENDENT AUDITORS' REPORT

The Board of Directors and the Stockholders

Taiwan Cooperative Bank, Ltd.

We have audited the accompanying balance sheets of Taiwan Cooperative Bank, Ltd. as of December 31, 2009 and 2008, and the related statements of income, changes in stockholders’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Bank’s management. Our responsibility is to express an opinion on these fi nancial statements based on our audits.

We conducted our audits in accordance with the Rules Governing the Audit of Financial Statements of Financial Institutions by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Those rules and standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as well as evaluating the overall fi nancial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, based on our audits, the financial statements referred to above present fairly, in all material respects, the fi nancial position of Taiwan Cooperative Bank, Ltd. as of December 31, 2009 and 2008, and the results of its operations and its cash fl ows for the years then ended, in conformity with the Guidelines Governing the Preparation of Financial Reports by Public Banks, Guidelines Governing the Preparation of Financial Reports by Futures Commission Merchants, requirements of the Business Accounting Law and Guidelines Governing Business Accounting relevant to financial accounting standards, and accounting principles generally accepted in the Republic of China.

As stated in Note 3 to the financial statements, under an explanation issued by the Accounting Research and Development Foundation of the Republic of China, Taiwan Cooperative Bank, Ltd. should recognize bonus to employees and remuneration to directors and supervisors as compensation expenses effective January 1, 2008. These bonuses and remunerations were previously recorded as appropriations from earnings.

As stated in Notes 3 and 31 to the fi nancial statements, Taiwan Cooperative Bank, Ltd. reclassifi ed its fi nancial assets in accordance with the newly amended Statement of Financial Accounting Standards No. 34 - “Financial Instruments: Recognition and Measurement”.

28

We have also audited the consolidated fi nancial statements of Taiwan Cooperative Bank, Ltd. and its subsidiaries as of and for the years ended December 31, 2009 and 2008, on which we have issued an unqualifi ed opinion and a modifi ed unqualifi ed opinion thereon, respectively, in our report dated February 25, 2010 (not presented herewith).

February 25, 2010

Notice to Readers

The accompanying fi nancial statements are intended only to present the fi nancial position, results of operations and cash fl ows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such fi nancial statements are those generally accepted and applied in the Republic of China.

For the convenience of readers, the auditors’ report and the accompanying fi nancial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language auditors’ report and fi nancial statements shall prevail.

28


COOPEERATIVEBANK

29

TAIWAN COOPERATIVE BANK, LTD.BALANCE SHEETSDECEMBER 31, 2009 AND 2008(In Thousands of New Taiwan Dollars, Except Par Value)

2009 2008Percentage

Increase (Decrease)

ASSETS Amount Amount %

CASH AND CASH EQUIVALENTS $ 45,170,092 $ 40,592,528 11

DUE FROM THE CENTRAL BANK AND CALL LOANS TO OTHER BANKS 533,560,405 383,763,115 39

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 25,025,499 31,259,237 ( 20 )

RECEIVABLES, NET 12,833,055 20,385,892 ( 37 )

DISCOUNTS AND LOANS, NET 1,797,418,534 1,832,644,545 ( 2 )

AVAILABLE-FOR-SALE FINANCIAL ASSETS, NET 49,771,450 64,785,297 ( 23 )

HELD-TO-MATURITY FINANCIAL ASSETS 8,366,968 8,171,079 2

EQUITY INVESTMENTS UNDER THE EQUITY METHOD 7,102,083 5,628,867 26

OTHER FINANCIAL ASSETS, NET 46,396,845 56,149,881 ( 17 )

PROPERTIES

Land (including revaluation increments) 22,484,953 22,481,984 -

Buildings 13,338,972 13,098,990 2

Machinery and equipment 5,454,612 5,208,396 5

Transportation equipment 700,693 687,117 2

Other equipment 1,318,329 1,299,766 1

Leasehold improvements 715,847 641,208 12

44,013,406 43,417,461 1

Less: Accumulated depreciation 10,263,523 9,428,473 9

Less: Accumulated impairment 6,574 1,114 490

33,743,309 33,987,874 ( 1 )

Construction in progress 67,555 24,476 176

Prepayment for equipment 60,764 18,118 235

Properties, net 33,871,628 34,030,468 -

INTANGIBLE ASSETS 3,703,584 3,624,616 2

OTHER ASSETS, NET

Nonoperating assets, net 3,774,850 3,834,123 ( 2 )

Prepaid expenses 748,336 426,511 75

Refundable deposits 664,253 994,879 ( 33 )

Operating deposits and settlement funds 111,962 96,832 16

Collaterals assumed, net - 741,948 ( 100 )

Others 13,328 1,863 615

Other assets, net 5,312,729 6,096,156 ( 13 )

TOTAL $ 2,568,532,872 $ 2,487,131,681 3

30

2009 2008 Percentage Increase (Decrease)

LIABILITIES AND STOCKHOLDERS’ EQUITY Amount Amount %DUE TO THE CENTRAL BANK AND OTHER BANKS $ 194,092,258 $ 202,656,838 ( 4 )

FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS 4,826,571 4,525,836 7

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS 54,241,801 55,961,852 ( 3 )

PAYABLES 46,303,278 45,943,097 1

DEPOSITS AND REMITTANCES 2,065,393,420 1,983,480,938 4

BANK DEBENTURES 84,420,000 77,771,000 9

ACCRUED PENSION COST 1,906,142 1,763,570 8

OTHER FINANCIAL LIABILITIES 3,764,909 4,554,131 ( 17 )

OTHER LIABILITIES 3,323,540 3,272,227 2

Total liabilities 2,458,271,919 2,379,929,489 3CAPITAL

Common stock - NT$10.00 par value; authorized 6,000,000 thousand shares; issued and outstanding 5,485,500 thousand shares 54,855,000 54,855,000 -

CAPITAL SURPLUSAdditional paid-in capital from share issuance in excess of par value 32,207,944 32,207,944 -Other 34,457 - -

Total capital surplus 32,242,401 32,207,944 -

RETAINED EARNINGSLegal reserve 11,253,095 8,993,862 25Unappropriated earnings 7,900,347 7,592,988 4

Total retained earnings 19,153,442 16,586,850 15

OTHER EQUITYUnrealized revaluation increments 4,333,796 4,420,439 ( 2 )Cumulative translation adjustments 195,447 162,980 20Unrealized gain on fi nancial instruments 1,379,021 867,133 59Treasury stock - 100,000 thousand shares ( 1,898,154 ) ( 1,898,154 ) -

Total other equity 4,010,110 3,552,398 13

Total stockholders' equity 110,260,953 107,202,192 3

CONTINGENCIES AND COMMITMENTS

TOTAL $ 2,568,532,872 $ 2,487,131,681 3

30


COOPEERATIVEBANK

31

TAIWAN COOPERATIVE BANK, LTD.STATEMENTS OF INCOMEYEARS ENDED DECEMBER 31, 2009 AND 2008(In Thousands of New Taiwan Dollars, Except Per Share Amounts)


Amount Amount %

INTEREST REVENUE $ 42,980,512 $ 71,779,904 ( 40 )

INTEREST EXPENSE ( 20,321,067 ) ( 44,423,797 ) ( 54 )

NET INTEREST 22,659,445 27,356,107 ( 17 )

NET REVENUE AND GAIN (LOSS) OTHER THAN INTEREST

Service fee income, net 3,313,233 3,467,406 ( 4 )

Gain (loss) on fi nancial assets and liabilities at fair value through profi t or loss 7,617,390 ( 4,689,947 ) 262

Realized gain on available-for-sale fi nancial assets 290,094 156,358 86

Realized loss on held-to-maturity fi nancial assets - ( 140,354 ) 100

Loss from equity investments under the equity method, net ( 91,355 ) ( 96,152 ) ( 5 )

Foreign exchange gain, net ( 4,496,740 ) 5,314,865 ( 185 )

Impairment loss on assets ( 510,368 ) ( 686,006 ) ( 26 )

Gain on fi nancial assets carried at cost 286,801 411,939 ( 30 )

Gain on disposal of properties and nonoperating assets 241,740 298,495 ( 19 )

Recovery of bad debts written off and overdue accounts 2,405,930 2,537,842 ( 5 )

Other noninterest gain, net 375,762 338,527 11

Total net revenue and gain (loss) other than interest 9,432,487 6,912,973 36

TOTAL NET REVENUE 32,091,932 34,269,080 ( 6 )

ALLOWANCE FOR BAD-DEBT EXPENSES ( 5,229,495 ) ( 6,248,668 ) ( 16 )

OPERATING EXPENSES

Personnel ( 12,497,823 ) ( 12,338,982 ) 1

Depreciation and amortization ( 1,146,351 ) ( 1,105,344 ) 4

General and administrative ( 4,640,372 ) ( 5,068,211 ) ( 8 )

Total operating expenses ( 18,284,546 ) ( 18,512,537 ) ( 1 )

(Continued)

32

TAIWAN COOPERATIVE BANK, LTD.STATEMENTS OF INCOMEYEARS ENDED DECEMBER 31, 2009 AND 2008(In Thousands of New Taiwan Dollars, Except Per Share Amounts)


Amount Amount %

INCOME BEFORE INCOME TAX $ 8,577,891 $ 9,507,875 ( 10 )

INCOME TAX EXPENSE ( 1,702,899 ) ( 1,977,097 ) ( 14 )

NET INCOME $ 6,874,992 $ 7,530,778 ( 9 )

2009 2008

Before Income Tax After Income Tax Before Income Tax After Income Tax

EARNINGS PER SHARE

Basic earnings per share $ 1.59 $ 1.28 $ 1.74 $ 1.38

Diluted earnings per share $ 1.58 $ 1.27 $ 1.73 $ 1.37

(Concluded)

32


COOPEERATIVEBANK

33

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ARY

1, 20

08

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000

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47,7

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00

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44

$ 6,

071,

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$

12,6

60,9

65

$ 4,

419,

580

$

274,

568

( $

89

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1 )

$ -

$

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438,

726

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opria

tion o

f the

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earn

ings

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l res

erve

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-

-

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(

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-

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ends

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-

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cum

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( 11

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0

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( 1,

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107,

202,

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Appr

opria

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f the

2008

earn

ings (

Note)

Lega

l res

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(

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9,23

3 )

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ter ap

prop

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( 1,

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102,

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792

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ncom

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009

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4,99

2

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Adjus

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ing fr

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s in p

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veste

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The

rem

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to d

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e inc

ome s

tatem

ents.

34

TAIWAN COOPERATIVE BANK, LTD.STATEMENTS OF CASH FLOWSYEARS ENDED DECEMBER 31, 2009 AND 2008(In Thousands of New Taiwan Dollars)

2009 2008

CASH FLOWS FROM OPERATING ACTIVITIES

Net income $ 6,874,992 $ 7,530,778

Loss (gain) on valuation of fi nancial instruments 876,323 ( 824,507 )

Gain on the sale of available-for-sale fi nancial assets ( 267,480 ) ( 156,358 )

Loss from equity investments under the equity method, net of cash dividends received 190,891 136,363

Impairment loss on assets 510,368 686,006

Depreciation and amortization expenses 1,146,351 1,105,344

Gain on disposal of properties, nonoperating assets and collaterals assumed, net ( 249,558 ) ( 382,485 )

Allowance for bad-debt expenses 5,229,495 6,248,668

Other provisions 38,003 27,274

Amortization of premium or discount on bonds 490,144 645,401

Provision for pension costs 142,572 118,507

Deferred income tax ( 30,795 ) 1,021,161

Loss on the sale of held-to-maturity fi nancial assets - 140,354

Gain on the sale of fi nancial assets carried at cost - ( 173,599 )

Others ( 49,385 ) 29,668

Net changes in operating assets and liabilities

Held-for-trading fi nancial assets 7,681,977 10,809,207

Receivables 4,800,345 1,036,064

Other assets ( 321,825 ) ( 183,491 )

Held-for-trading fi nancial liabilities ( 5,219,971 ) ( 930,668 )

Payables 360,181 6,812,759

Other liabilities 78,034 ( 279,268 )

Net cash provided by operating activities 22,280,662 33,417,178

CASH FLOWS FROM INVESTING ACTIVITIES

Decrease (increase) in due from the Central Bank and call loans to other banks ( 149,797,290 ) 40,596,679

Acquisition of fi nancial assets designated at fair value through profi t or loss - ( 182,581 )

Proceeds of the sale of fi nancial assets designated at fair value through profi t or loss 3,256,114 2,148,775

Decrease (increase) in discounts and loans 30,439,261 ( 111,839,726 )

Acquisition of available-for-sale fi nancial assets ( 11,469,383 ) ( 79,841,482 )

Proceeds of the sale of available-for-sale fi nancial assets 26,950,442 77,612,595

Increase in investments accounted for under the equity method ( 1,627,279 ) -

Acquisition of held-to-maturity fi nancial assets ( 1,442,568 ) ( 6,051,969 )

Proceeds of the sale of and return of principal on held-to-maturity fi nancial assets 1,164,917 5,526,187

Acquisition of debt instruments with no active market ( 3,320,405 ) ( 19,043,506 )

Proceeds of the sale of and return of principal on debt instruments with no active market 13,139,466 9,148,657

Proceeds of the sale of fi nancial assets carried at cost - 385,684

Increase in other fi nancial assets ( 130,529 ) ( 365,033 )

Acquisition of properties, intangible assets and nonoperating assets ( 921,995 ) ( 1,518,547 )

(Continued)34


COOPEERATIVEBANK

35

TAIWAN COOPERATIVE BANK, LTD.STATEMENTS OF CASH FLOWSYEARS ENDED DECEMBER 31, 2009 AND 2008(In Thousands of New Taiwan Dollars)

2009 2008

Proceeds of the sale of properties, nonoperating assets and collaterals assumed $ 377,759 $ 952,515

Decrease (increase) in other assets 303,425 ( 157,590 )

Proceeds of the sale of nonperforming loans 2,480,230 9,364,024

Net cash used in investing activities ( 90,597,835 ) ( 73,265,318 )

CASH FLOWS FROM FINANCING ACTIVITIES

Decrease in due to the Central Bank and other banks ( 8,564,580 ) ( 52,159,526 )

Increase (decrease) in securities sold under repurchase agreements ( 1,720,051 ) 12,714,692

Increase in deposits and remittances 81,912,482 98,233,101

Repayment of bank debentures ( 1,451,000 ) ( 16,540,000 )

Issuance of bank debentures 8,100,000 10,000,000

Decrease in other fi nancial liabilities ( 789,222 ) ( 54,499 )

Decrease in other liabilities ( 696 ) ( 41,992 )

Cash dividends ( 4,308,400 ) ( 1,903,204 )

Bonus to employees and remuneration to directors and supervisors - ( 613,643 )

Acquisition of treasury stock - ( 1,898,154 )

Net cash provided by fi nancing activities 73,178,533 47,736,775

EFFECTS OF EXCHANGE RATE CHANGES ( 283,796 ) 203,383

INCREASE IN CASH AND CASH EQUIVALENTS 4,577,564 8,092,018

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 40,592,528 32,500,510

CASH AND CASH EQUIVALENTS, END OF YEAR $ 45,170,092 $ 40,592,528

SUPPLEMENTAL CASH FLOW INFORMATION

Interest paid $ 24,372,073 $ 44,750,799

Income tax paid $ 774,592 $ 1,354,397

PART-CASH INVESTING ACTIVITIES

Sale of nonperforming loans - current year $ - $ 3,103,990

Receivables from the sale of nonperforming loans - ( 2,483,192 )

Proceeds of the sale of nonperforming loans - previous year 2,480,230 8,743,226

Proceeds of the sale of nonperforming loans $ 2,480,230 $ 9,364,024

(Concluded)Notice to ReadersThe notes to fi nancial statements are published separately. If you have a need of it, please contact International Banking Department (Tel: +886-2-7400628 #331) or Business Management Department (Tel: +886-2-23118811#392). 36

Proactive Agile Innovative

36

Consolidated Financial Statements

INDEPENDENT AUDITORS' REPORT

The Board of Directors and the Stockholders

Taiwan Cooperative Bank, Ltd.

We have audited the accompanying consolidated balance sheets of Taiwan Cooperative Bank, Ltd. and subsidiaries (collectively, the “Company”) as of December 31, 2009 and 2008, and the related consolidated statements of income, changes in stockholders’ equity and cash fl ows for the years then ended. These consolidated fi nancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the Rules Governing the Audit of Financial Statements of Financial Institutions by Certifi ed Public Accountants, the Rules Governing the Audit of Financial Statements by Certifi ed Public Accountants and auditing standards generally accepted in the Republic of China. Those rules and standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated fi nancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, based on our audits, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated fi nancial position of Taiwan Cooperative Bank, Ltd. and subsidiaries as of December 31, 2009 and 2008, and the results of their operations and their cash fl ows for the years then ended, in conformity with the Guidelines Governing the Preparation of Financial Reports by Public Banks, Guidelines Governing the Preparation of Financial Reports by Futures Commission Merchants, and accounting principles generally accepted in the Republic of China.

As stated in Note 3 to the consolidated financial statements, under an explanation issued by the Accounting Research and Development Foundation of the Republic of China, Taiwan Cooperative Bank, Ltd. and subsidiaries should recognize bonus to employees and remuneration to directors and supervisors as compensation expenses effective January 1, 2008. These bonuses and remunerations were previously recorded as appropriations from earnings.

38

As stated in Notes 3 and 32 to the consolidated fi nancial statements, Taiwan Cooperative Bank, Ltd. and subsidiaries reclassifi ed their fi nancial assets in accordance with the newly amended Statement of Financial Accounting Standards No.34- “Financial Instruments: Recognition and Measurement.”

February 25, 2010

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated fi nancial position, results of operations and cash fl ows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated fi nancial statements are those generally accepted and applied in the Republic of China.

For the convenience of readers, the auditors’ report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any confl ict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language auditors’ report and consolidated fi nancial statements shall prevail.

38


COOPEERATIVEBANK

39

TAIWAN COOPERATIVE BANK, LTD. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSDECEMBER 31, 2009 AND 2008(In Thousands of New Taiwan Dollars, Except Par Value)

ASSETS2009 2008 Percentage Increase

(Decrease)%Amount Amount

CASH AND CASH EQUIVALENTS $ 45,364,214 $ 40,844,312 11

DUE FROM THE CENTRAL BANK AND CALL LOANS TO OTHER BANKS 528,019,693 375,585,172 41

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 33,297,426 36,440,703 ( 9 )

RECEIVABLES, NET 23,094,880 32,594,209 ( 29 )

DISCOUNTS AND LOANS, NET 1,801,113,000 1,838,147,297 ( 2 )

AVAILABLE-FOR-SALE FINANCIAL ASSETS, NET 54,959,574 68,483,509 ( 20 )

HELD-TO-MATURITY FINANCIAL ASSETS 8,466,968 8,271,079 2

EQUITY INVESTMENTS UNDER THE EQUITY METHOD 81,585 76,596 7

OTHER FINANCIAL ASSETS, NET 51,432,901 62,253,128 ( 17 )

PROPERTIES

Land (including revaluation increments) 22,489,680 22,486,712 -

Buildings 13,343,356 13,103,374 2

Machinery and equipment 5,470,655 5,224,189 5

Transportation equipment 706,828 693,981 2

Other equipment 1,334,303 1,315,991 1

Leasehold improvements 723,593 648,062 12

44,068,415 43,472,309 1

Less: Accumulated depreciation 10,299,958 9,461,828 9

Less: Accumulated impairment 6,574 1,114 490

33,761,883 34,009,367 ( 1 )

Construction in progress 67,555 24,476 176

Prepayment for equipment 60,764 22,018 176

Properties, net 33,890,202 34,055,861 -

INTANGIBLE ASSETS 3,710,918 3,626,396 2

OTHER ASSETS, NET

Nonoperating assets, net 4,032,075 4,076,970 ( 1 )

Prepaid expense 754,710 433,635 74

Refundable deposits 704,594 1,008,849 ( 30 )

Operating deposits and settlement funds 283,356 252,343 12

Collaterals assumed, net 129,202 857,341 ( 85 )

Others 15,567 7,463 109

Other assets, net 5,919,504 6,636,601 ( 11 )

TOTAL $ 2,589,350,865 $ 2,507,014,863 3

40

LIABILITIES AND STOCKHOLDERS’ EQUITY2009 2008 Percentage Increase

(Decrease)%Amount Amount

DUE TO THE CENTRAL BANK AND OTHER BANKS $ 195,272,747 $ 204,503,066 ( 5 )

COMMERCIAL PAPER ISSUED, NET 2,376,721 1,559,382 52

FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS 4,826,571 4,525,836 7

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS 65,525,148 63,308,291 4

PAYABLES 46,376,132 46,130,268 1

DEPOSITS AND REMITTANCES 2,065,065,718 1,983,233,481 4

BANK DEBENTURES 84,420,000 77,771,000 9

ACCRUED PENSION COST 1,906,142 1,763,570 8

OTHER FINANCIAL LIABILITIES 8,195,331 11,759,532 ( 30 )

OTHER LIABILITIES 4,378,882 4,256,881 3

Total liabilities 2,478,343,392 2,398,811,307 3

STOCKHOLDERS' EQUITY OF PARENT COMPANY

Capital stock

Common stock - NT$10.00 par value; authorized 6,000,000 thousand shares; issued and outstanding 5,485,500 thousand shares

54,855,000 54,855,000 -

Capital surplus

Additional paid-in capital from share issuance in excess of par value 32,207,944 32,207,944 -

Other 34,457 - -

Total capital surplus 32,242,401 32,207,944 -

Retained earnings

Legal reserve 11,253,095 8,993,862 25

Unappropriated earnings 7,900,347 7,592,988 4

Total retained earnings 19,153,442 16,586,850 15

Other equity

Unrealized revaluation increments 4,333,796 4,420,439 ( 2 )

Cumulative translation adjustments 195,447 162,980 20

Unrealized gain on fi nancial instruments 1,379,021 867,133 59

Treasury stock - 100,000 thousand shares ( 1,898,154 ) ( 1,898,154 ) -

Total other equity 4,010,110 3,552,398 13

Total stockholders' equity of parent company 110,260,953 107,202,192 3

MINORITY INTEREST 746,520 1,001,364 ( 25 )

Total stockholders' equity 111,007,473 108,203,556 3

CONTINGENCIES AND COMMITMENTS

TOTAL $ 2,589,350,865 $ 2,507,014,863 3

40


COOPEERATIVEBANK

41

TAIWAN COOPERATIVE BANK, LTD. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOMEYEARS ENDED DECEMBER 31, 2009 AND 2008(In Thousands of New Taiwan Dollars, Except Per Share Amounts)


%Amount Amount

INTEREST REVENUE $ 43,212,687 $ 72,050,647 ( 40 )

INTEREST EXPENSE ( 20,438,942 ) ( 44,765,178 ) ( 54 )

NET INTEREST 22,773,745 27,285,469 ( 17 )

NET REVENUE AND GAIN (LOSS) OTHER THAN INTEREST

Service fee income, net 3,503,959 3,645,096 ( 4 )

Gain (loss) on fi nancial assets and liabilities at fair value through profi t or loss

7,635,477 ( 4,589,553 ) 266

Realized gain on available-for-sale fi nancial assets 320,654 175,732 82

Realized loss on held-to-maturity fi nancial assets - ( 140,354 ) 100

Income from equity investments under the equity method, net 9,427 10,115 ( 7 )

Foreign exchange gain, net ( 4,498,914 ) 5,325,375 ( 184 )

Impairment loss on assets ( 510,368 ) ( 984,134 ) ( 48 )

Gains on fi nancial assets carried at cost 287,543 412,543 ( 30 )

Gains on the sale of nonperforming loans 533,967 797,919 ( 33 )

Gains on disposal of properties and nonoperating assets 242,360 298,495 ( 19 )

Recovery of bad debts written off and overdue accounts 2,405,930 2,537,842 ( 5 )

Other noninterest gain, net 285,495 102,858 178

Total net revenue and gain (loss) other than interest 10,215,530 7,591,934 35

TOTAL NET REVENUE 32,989,275 34,877,403 ( 5 )

ALLOWANCE FOR BAD-DEBT EXPENSES ( 5,839,693 ) ( 6,572,902 ) ( 11 )

OPERATING EXPENSES

Personnel ( 12,661,986 ) ( 12,515,542 ) 1

Depreciation and amortization ( 1,154,570 ) ( 1,111,587 ) 4

General and administrative ( 4,732,571 ) ( 5,177,999 ) ( 9 )

Total operating expenses ( 18,549,127 ) ( 18,805,128 ) ( 1 )

(Continued)

42


%Amount Amount

CONSOLIDATED INCOME BEFORE INCOME TAX $ 8,600,455 $ 9,499,373 ( 9 )

INCOME TAX EXPENSE ( 1,786,807 ) ( 2,097,858 ) ( 15 )

CONSOLIDATED NET INCOME $ 6,813,648 $ 7,401,515 ( 8 )

ATTRIBUTABLE TO:

Parent company $ 6,874,992 $ 7,530,778 ( 9 )

Minority interest ( 61,344 ) ( 129,263 ) ( 53 )

$ 6,813,648 $ 7,401,515 ( 8 )

2009Before Income

Tax

2009After Income

Tax

2008Before Income

Tax

2008After Income

Tax

EARNINGS PER SHARE

Basic earnings per share $ 1.59 $ 1.28 $ 1.74 $ 1.38

Diluted earnings per share $ 1.58 $ 1.27 $ 1.73 $ 1.37

(Concluded)

42


COOPEERATIVEBANK

43

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valu

ation

incr

emen

ts

-

-

-

-

-

859

-

-

-

-

859

Chan

ge in

cum

ulati

ve tr

ansla

tion

adju

stmen

ts

-

-

-

-

-

- (

11

1,58

8 )

-

- (

19

,839

) (

13

1,42

7 )

Chan

ge in

unr

ealiz

ed g

ain o

n fi n

ancia

l ins

trum

ents

-

-

-

-

-

-

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1,

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214

-

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,356

1,79

7,57

0

Acqu

isitio

n of

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sury

sto

ck -

100,

000

thou

sand

sh

ares

-

-

-

-

-

-

-

-

(

1,89

8,15

4 )

-

(

1,89

8,15

4 )

BALA

NCE,

DEC

EMBE

R 31

, 200

8

5,

485,

500

54,8

55,0

00

32

,207

,944

8,99

3,86

2

7,

592,

988

4,42

0,43

9

16

2,98

0

86

7,13

3 (

1,

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1,00

1,36

4

10

8,20

3,55

6

Appr

opria

tion

of th

e 200

8 ea

rnin

gs (N

ote)

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l res

erve

-

-

-

2,

259,

233

(

2,25

9,23

3 )

-

-

-

-

-

-Ca

sh d

ivid

ends

-

-

-

-

(

4,30

8,40

0 )

-

-

-

-

-

(

4,30

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0 )

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ce af

ter ap

prop

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n

5,

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54,8

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4,42

0,43

9

16

2,98

0

86

7,13

3 (

1,

898,

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1,00

1,36

4

10

3,89

5,15

6

Cons

olid

ated

net i

ncom

e in

2009

-

-

-

-

6,87

4,99

2

-

-

-

- (

61

,344

)

6,

813,

648

Adju

stmen

t aris

ing

from

cha

nges

in p

erce

ntag

e of

ow

nersh

ip in

inve

stees

-

-

34,4

57

-

-

-

-

-

-

-

34,4

57

Chan

ge in

unr

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ed re

valu

ation

incr

emen

ts

-

-

-

-

-

(

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-

-

-

-

(

86,6

43 )

Chan

ge in

cum

ulati

ve tr

ansla

tion

adju

stmen

ts

-

-

-

-

-

-

32

,467

-

-

-

32

,467

Chan

ge in

unr

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ed g

ain o

n fi n

ancia

l ins

trum

ents

-

-

-

-

-

-

-

51

1,88

8

-

-

511,

888

Chan

ge in

min

ority

inter

est

-

-

-

-

-

-

-

-

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19

3,50

0 ) (

19

3,50

0 )

BALA

NCE,

DEC

EMBE

R 31

, 200

9

5,

485,

500

$

54,8

55,0

00 $

32

,242

,401

$

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95 $

7,

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$

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6 $

19

5,44

7 $

1,

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021

( $

1,89

8,15

4 ) $

74

6,52

0 $

11

1,00

7,47

3

Note

: Th

e re

mun

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to d

irect

ors

and

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rviso

rs o

f $57

,929

thou

sand

and

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us to

em

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ees

of $

463,

433

thou

sand

wer

e de

duct

ed fr

om th

e co

nsol

idat

ed in

com

e st

atem

ents

.

44

TAIWAN COOPERATIVE BANK, LTD. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSYEARS ENDED DECEMBER 31, 2009 AND 2008(In Thousands of New Taiwan Dollars)

2009 2008

CASH FLOWS FROM OPERATING ACTIVITIES

Consolidated net income $ 6,813,648 $ 7,401,515

Loss (gain) on valuation of fi nancial instruments 877,022 ( 825,229 )

Gain on the sale of available-for-sale fi nancial assets ( 298,040 ) ( 175,732 )

Income from equity investments under the equity method, net of cash dividends received ( 5,127 ) ( 7,190 )

Impairment loss on assets 510,368 984,134

Depreciation and amortization expenses 1,154,570 1,111,587

Gain on disposal of properties, nonoperating assets and collaterals assumed, net ( 250,178 ) ( 382,485 )

Allowance for bad-debt expenses 5,839,693 6,572,902

Other provisions 40,708 29,517

Recovery of credits written off 26,466 2,843

Amortization of premium or discount on bonds 600,247 656,062

Provision for pension costs 142,572 118,507

Deferred income tax ( 15,750 ) 1,003,094

Loss on the sale of held-to-maturity fi nancial assets - 140,354

Gain on the sale of fi nancial assets carried at cost - ( 173,599 )

Loss on the sale of debt instruments with no active market 16,328 319,313

Others - ( 61,010 )

Net changes in operating assets and liabilities

Held-for-trading fi nancial assets 4,590,817 7,971,241

Receivables 6,591,289 3,170,650

Other assets ( 321,075 ) ( 163,303 )

Held-for-trading fi nancial liabilities ( 5,219,971 ) ( 930,668 )

Payables 245,863 6,859,189

Other liabilities 82,853 ( 282,828 )

Net cash provided by operating activities 21,422,303 33,338,864

CASH FLOWS FROM INVESTING ACTIVITIES

Decrease (increase) in due from the Central Bank and call loans to other banks ( 152,434,521 ) 40,144,612

Acquisition of fi nancial assets designated at fair value through profi t or loss - ( 182,581 )

Proceeds of the sale of fi nancial assets designated at fair value through profi t or loss 3,256,114 2,148,775

Decrease (increase) in discounts and loans 31,823,416 ( 112,359,730 )

Acquisition of available-for-sale fi nancial assets ( 17,983,633 ) ( 117,249,614 )

Proceeds of the sale of available-for-sale fi nancial assets 31,860,703 111,566,902

Acquisition of held-to-maturity fi nancial assets ( 1,442,568 ) ( 6,051,969 )

Proceeds of the sale of and return of principal on held-to-maturity fi nancial assets 1,164,917 5,526,187

Acquisition of debt instruments with no active market ( 3,320,405 ) ( 19,043,506 )

(Continued)

44


COOPEERATIVEBANK

45

TAIWAN COOPERATIVE BANK, LTD. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSYEARS ENDED DECEMBER 31, 2009 AND 2008(In Thousands of New Taiwan Dollars)

2009 2008

Proceeds of the sale of and return of principal on debt instruments with no active market $ 14,011,146 $ 10,136,135

Proceeds of the sale of fi nancial assets carried at cost - 385,684

Increase in other fi nancial assets ( 130,529 ) ( 365,033 )

Acquisition of properties, intangible assets and nonoperating assets ( 947,759 ) ( 1,546,225 )

Proceeds of the sale of properties, nonoperating assets and collaterals assumed 382,808 952,615

Decrease (increase) in other assets 266,606 ( 165,963 )

Proceeds of the sale of nonperforming loans 2,480,230 620,798

Net cash used in investing activities ( 91,013,475 ) ( 85,482,913 )

CASH FLOWS FROM FINANCING ACTIVITIES

Decrease in due to the Central Bank and other banks ( 9,230,319 ) ( 53,205,947 )

Increase in commercial paper issued 817,339 1,159,808

Increase in securities sold under repurchase agreements 2,216,857 20,057,221

Increase in deposits and remittances 81,832,237 98,375,447

Repayment of bank debentures ( 1,451,000 ) ( 16,540,000 )

Issuance of bank debentures 8,100,000 10,000,000

Increase (decrease) in other fi nancial liabilities ( 3,564,201 ) 4,699,534

Decrease in other liabilities ( 8,862 ) ( 39,611 )

Cash dividends ( 4,308,400 ) ( 1,903,204 )

Bonus to employees and remuneration to directors and supervisors - ( 613,643 )

Acquisition of treasury stock - ( 1,898,154 )

Changes in minority interest ( 137,635 ) -

Net cash provided by fi nancing activities 74,266,016 60,091,451

EFFECTS OF EXCHANGE RATE CHANGES ( 154,942 ) 147,712

INCREASE IN CASH AND CASH EQUIVALENTS 4,519,902 8,095,114

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 40,844,312 32,749,198

CASH AND CASH EQUIVALENTS, END OF YEAR $ 45,364,214 $ 40,844,312

SUPPLEMENTAL CASH FLOW INFORMATION

Interest paid $ 24,498,954 $ 45,089,096

Income tax paid $ 956,422 $ 1,469,275

PART-CASH INVESTING ACTIVITIES

Sale of nonperforming loans - current year $ - $ 3,103,990

Receivables from the sale of nonperforming loans - ( 2,483,192 )

Proceeds of the sale of nonperforming loans - previous year 2,480,230 -

Proceeds of the sale of nonperforming loans $ 2,480,230 $ 620,798

(Concluded) 46

46

INTERNATIONAL BANKING DEPARTMENT3rd Fl., No. 325, Jhongsiao E. Rd., Sec. 4, Taipei City,

Taiwan

TEL:+886-2-27400628 FAX:+886-2-27512962

Telex:17176 TACBID; SWIFT:TACBTWTP

KAOHSIUNG BRANCHNo. 99, Dayong Rd., Kaohsiung City, Taiwan

TEL:+886-7-5514221 FAX:+886-7-5321389

SWIFT:TACBTWTP034

TAICHUNG BRANCHNo. 2, Zihyou Rd., Sec 2, Taichung City, Taiwan

TEL:+886-4-22245121 FAX:+886-4-22220112

SWIFT: TACBTWTP022

JHONGSHAN LU BRANCHNo. 71, Jhongshan N. Rd., Sec. 2, Taipei City, Taiwan

TEL:+886-2-25213211 FAX:+886-2-25232802

SWIFT:TACBTWTP002

BUSINESS DEPARTMENT3rd Fl., No. 77, Kuanchien Rd., Taipei City, Taiwan

TEL:+886-2-23118811 FAX:+886-2-23885075

SWIFT:TACBTWTP056

CHENGDONG BRANCHNo. 87, Songjiang Rd., Taipei City, Taiwan

TEL:+886-2-25070111 FAX:+886-2-25084784

SWIFT:TACBTWTP060

NANJING DONGLU BRANCHNo. 98, Nanjing E. Rd., Sec. 1, Taipei City, Taiwan

TEL:+886-2-25623150 FAX:+886-2-25819592

SWIFT:TACBTWTP041

FUSING BRANCHNo. 237, Fusing S. Rd., Sec. 1, Taipei City, Taiwan

TEL:+886-2-27541111 FAX:+886-2-27541118

SWIFT:TACBTWTP091

Designated Foreign Exchange Banks

MINSHENG BRANCHNo. 126, Minsheng E. Rd, Sec. 3, Taipei City, Taiwan

TEL:+886-2-27181339 FAX:+886-2-27163180

SWIFT:TACBTWTP093

TAINAN BRANCHNo. 48, Chenggong Rd., Tainan City, Taiwan

TEL:+886-6-2232101 FAX:+886-6-2218356

SWIFT:TACBTWTP030

JHONGSIAO BRANCHNo. 285, Jhongsiao E. Rd., Sec. 4, Taipei City, Taiwan

TEL:+886-2-27718811 FAX:+886-2-27311982

SWIFT:TACBTWTP045

WUJHOU BRANCHNo. 237, Songjiang Rd., Taipei City, Taiwan

TEL:+886-2-25077664 FAX:+886-2-25163888

SWIFT:TACBTWTPAAA

DA-AN BRANCHNo. 1, Lane 81, Dunhua S. Rd., Sec. 2, Taipei City,

Taiwan

TEL:+886-2-27553482 FAX:+886-2-27056016

SWIFT:TACBTWTP076

SINYI BRANCHNo. 172, Sinyi Rd., Sec. 4, Taipei City, Taiwan

TEL:+886-2-27067188 FAX:+886-2-27554862

SWIFT:TACBTWTP083

YANPING BRANCHNo. 301, Nanjing W. Rd., Taipei City, Taiwan

TEL:+886-2-25554111 FAX:+886-2-25567742

SWIFT:TACBTWTP004

JHONGHE BRANCHNo. 9, Taihe St., Jhonghe City, Taipei County, Taiwan

TEL:+886-2-22499500 FAX:+886-2-22462494

SWIFT:TACBTWTP062

48

CHANGHUA BRANCHNo. 279, Minsheng Rd., Changhua City, Changhua

County, Taiwan

TEL:+886-4-7225151 FAX:+886-4-7252183

SWIFT:TACBTWTP023

SONGJIANG BRANCHNo. 152, Songjiang Rd., Taipei City, Taiwan

TEL:+886-2-25224567 FAX:+886-2-25314172

SWIFT:TACBTWTP095

CHIAYI BRANCHNo. 279, Guohua St., Chiayi City, Taiwan

TEL:+886-5-2224571 FAX:+886-5-2245297

SWIFT:TACBTWTP028

TAIPEI BRANCHNo. 55, Fusing N. Rd., Taipei City, Taiwan

TEL:+886-2-27724277 FAX:+886-2-27518019

SWIFT:TACBTWTP054

HSINCHU BRANCHNo. 23, Jhongjheng Rd., Hsinchu City, Taiwan

TEL:+886-3-5244151 FAX:+886-3-5225921

SWIFT:TACBTWTP017

TAOYUAN BRANCHNo. 58, Jhongjheng Rd., Taoyuan City, Taiwan

TEL:+886-3-3326121 FAX:+886-3-3338891

SWIFT:TACBTWTP015

BANCIAO BRANCHNo. 20, Wunhua Rd., Sec. 1, Banciao City, Taipei County,

Taiwan

TEL:+886-2-29660971 FAX:+886-2-29660936

SWIFT:TACBTWTP011

DALI BRANCHNo.384, Sec. 1,Chung Hsing Road, Dali City, Taichung

County, Taiwan

TEL:+886-4-24934111 FAX:+886-4-24934125

SWIFT:TACBTWTP102

DONG SINJHUANG BRANCHNo.339, Sihyuan Road, Sinjhuang City, Taipei County,

Taiwan

TEL:+886-2-29973456 FAX:+886-2-29965856

SWIFT:TACBTWTP098

NEIHU BRANCH1F., No 502, Rueiguang Rd., Neihu District, Taipei City,

Taiwan

TEL:+886-2-26590001 FAX:+886-2-26590106

SWIFT:TACBTWTP156

CIANJHEN BRANCHNo. 56, Caoya 1st Rd., Cianjhen District, Kaohsiung City,

Taiwan

TEL:+886-7-8416491 FAX:+886-7-8414953

SWIFT:TACBTWTPAAB

KAOHSIUNG SCIENCE-BASED PARK BRANCH1F, NO.92, Luke 5th Rd., Lujhu Township, Kaohsiung

County, Taiwan

TEL:+886-7-6955151 FAX:+886-7-6955255

SWIFT:TACBTWTP318

SHUANGHE BRANCHNo. 196, Jian 1st Rd., Jhonghe City, Taipei County,

Taiwan

TEL:+886-2-82271627 FAX:+886-2-82271617

SWIFT:TACBTWTP144

ZIHCIANG BRANCH1~3F, No.85, Sec. 2, Nanjing E. Rd., Taipei City, Taiwan

TEL:+886-2-21003100 FAX:+886-2-25314470

SWIFT:TACBTWTP501

GANGDU BRANCHNo.230, Jhongjheng 4th Rd., Cianjin District, Kaohsiung

City, Taiwan

TEL:+886-7-2914131 FAX:+886-7-2517850

SWIFT:TACBTWTP524

48


COOPEERATIVEBANK

49

SINJHONG BRANCHNo.91, Mincyuan Rd., West District, Taichung City,

Taiwan

TEL:+886-4-22237711 FAX:+886-4-22231448

SWIFT:TACBTWTP516

DONG CHIAYI BRANCHNo.425, Mincyuan Rd., Chiayi City, Taiwan

TEL:+886-5-2225281 FAX:+886-5-2231981

SWIFT:TACBTWTP584

PINGJHONG BRANCH1~3F., No.287, Minsheng Rd., Pingtung City, Pingtung

County, Taiwan

TEL:+886-8-7326391 FAX:+886-8-7336594

SWIFT:TACBTWTP579

YUANSIN BRANCHNo.733, Sec. 1 , Jhongshan Rd., Yuanlin Township,

Changhua County, Taiwan

TEL:+886-4-8322741 FAX:+886-4-8358196

SWIFT:TACBTWTP560

CHIHKAN BRANCHNo.204, Chenggong Rd., North District, Tainan City,

Taiwan

TEL:+886-6-2201302 FAX:+886-6-2264704

SWIFT:TACBTWTP521

DONG TAOYUAN BRANCHNo.12, Jhonghua Rd., Taoyuan City, Taoyuan County,

Taiwan

TEL:+886-3-3355009 FAX:+886-3-3365363

SWIFT:TACBTWTP543

JHUCIAN BRANCHNo.60, Dongmen St., Hsinchu City, Taiwan

TEL:+886-35-215120 FAX:+886-35-250270

SWIFT:TACBTWTP563

BEI LUODONG BRANCHNo.54, Jhongjheng N. Rd., Luodong Township, Yilan

County, Taiwan

TEL:+886-39-545795 FAX:+886-39-576276

SWIFT:TACBTWTP541

FONGJHONG BRANCHNo.351, Jhongjheng Rd., Fongyuan City, Taichung

County, Taiwan

TEL:+886-4-25280369 FAX:+886-4-25278825

SWIFT:TACBTWTP554

BANSIN BRANCH1~2F, No.30, Sec. 1, Wunhua Rd., Banciao City, Taipei

County, Taiwan

TEL:+886-2-22726850 FAX:+886-2-29606365

SWIFT:TACBTWTP531

DUNNAN BRANCHNo.362, Sec. 1, Dunhua S. Rd., Da-an District, Taipei

City, Taiwan

TEL:+886-2-27011117 FAX:+886-2-27075176

SWIFT:TACBTWTP503

JHONGLUN BRANCHNo.45, Dongsing Rd., Sinyi District, Taipei City, Taiwan

TEL:+886-2-87681717 FAX:+886-2-87682169

SWIFT:TACBTWTP504

LISIN BRANCH1~3F, No.119, Jhongshan Rd., Jhongli City, Taoyuan

County, Taiwan

TEL:+886-3-4222131 FAX:+886-3-4253090

SWIFT:TACBTWTP544

NAN SANCHONG BRANCHNo.120, Jhengyi N. Rd., Sanchong City, Taipei County,

Taiwan

TEL:+886-2-29817117 FAX:+886-2-29848861

SWIFT:TACBTWTP532

50

BEI SHIHLIN BRANCH1F, No.837~849, Sec. 5, Jhongshan N. Rd., Shihlin

District, Taipei City, Taiwan

TEL:+886-2-88665959 FAX:+886-2-88665353

SWIFT:TACBTWTP508

SHIHCYUAN BRANCHNo.189, Bo-ai 1st Rd., Sanmin District, Kaohsiung City,

Taiwan

TEL:+886-7-3230611 FAX:+886-7-3230668

SWIFT:TACBTWTP527

BAOCIAO BRANCH1F, No.2, Lane 235, Baociao Rd., Sindian City, Taipei

County, Taiwan

TEL:+886-2-29185506 FAX:+886-2-29185512

SWIFT:TACBTWTP535

SINTAI BRANCHNo.115, Sintai Rd., Sinjhuang City, Taipei County, Taiwan

TEL:+886-2-29986688 FAX:+886-2-29986633

SWIFT:TACBTWTP536

SIHU BRANCH1F, No.206~208, Rueiguang Rd., Neihu District, Taipei

City, Taiwan

TEL:+886-2-27971989 FAX:+886-2-26581027

SWIFT:TACBTWTP510

NAN SIJHIH BRANCH1F, No.94-1, Sec. 1, Sintai 5th Rd., Sijhih City, Taipei

County, Taiwan

TEL:+886-2-26968888 FAX:+886-2-26962222

SWIFT:TACBTWTP538

NANKAN BRANCHNo.11, Nanshang Rd., Lujhu Township, Taoyuan County,

Taiwan

TEL:+886-3-3221199 FAX:+886-3-3225477

SWIFT:TACBTWTP545

CISIAN BRANCHNo.216, Cisian 1st Rd., Sinsing District, Kaohsiung City,

Taiwan

TEL:+886-7-2365503 FAX:+886-7-2361016

SWIFT:TACBTWTP525

WORLD TRADE CENTER BRANCH2F, No.333, Sec. 1, Keelung Rd., Sinyi District, Taipei

City, Taiwan

TEL:+886-2-27291333 FAX:+886-2-27576171

SWIFT:TACBTWTP505

RENDE BRANCHNo.4~8, Sec. 3, Jhongjiheng Rd., Rende Township, Tainan

County, Taiwan

TEL:+886-6-2794616 FAX:+886-6-2700594

SWIFT:TACBTWTP570

YANJI BRANCH1~2F, No.376-1, Sec. 4, Ren-ai Rd., Da-an District, Taipei

City, Taiwan

TEL:+886-2-27069955 FAX:+886-2-27042086

SWIFT:TACBTWTP506

HSINCHU SCIENCE-BASED INDUSTRIAL PARK BRANCH1~2F, No.1, Keji Rd., Hsinchu City, Taiwan

TEL:+886-35-783962 FAX:+886-35-781859

SWIFT:TACBTWTP564

JHONGGANG BRANCHNo.152, Sec. 3, Wunsin Rd., Situn District, Taichung City,

Taiwan

TEL:+886-4-23138811 FAX:+886-4-23136493

SWIFT:TACBTWTP517

JHANGHE BRANCH1~2F, No.246-1, Liancheng Rd., Jhonghe City, Taipei

County, Taiwan

TEL:+886-2-22262829 FAX:+886-2-22256481

SWIFT:TACBTWTP534

50


COOPEERATIVEBANK

51

WUCYUAN BRANCHNo.61, Sec. 2, Gongyi Rd., Taichung City, Taiwan

TEL:+886-4-23229191 FAX:+886-4-23200601

SWIFT:TACBTWTP069

NANTOU BRANCHNo.96, Jhongshan St., Nantou City, Nantou County,

Taiwan

TEL:+886-49-2234141 FAX:+886-49-2228485

SWIFT:TACBTWTP025

TUCHENG BRANCHNo.96, Sec.2, Jhongyang Rd., Tucheng City, Taipei

County, Taiwan

TEL:+886-2-22651611 FAX:+886-2-22651667

SWIFT:TACBTWTP145

GANGSHAN BRANCHNo.2, Siaocian Rd., Gangshan Township, Kaohsiung

County, Taiwan

TEL:+886-7-6216161 FAX:+886-7-6216195

SWIFT:TACBTWTP033

FONGYUAN BRANCHNo.102, Jhongjheng Rd., Fongyuan City, Taichung

County, Taiwan

TEL:+886-4-25231122 FAX:+886-4-25272540

SWIFT:TACBTWTP020

JHONGSHAN BRANCHNo.2, Sec. 2, Nanjing E. Rd., Jhongshan District, Taipei

City, Taiwan

TEL:+886-2-25214065 FAX:+886-2-25319567

SWIFT:TACBTWTP502

DONG JHUBEI BRANCHNo.343, Jhongjheng, E. Rd., Jhubei City, Hsinchu County,

Taiwan

TEL:+886-3-5540108 FAX:+886-3-5540110

SWIFT:TACBTWTP551

BEI HSINCHU BRANCHNo.168, Beida Rd., Hsinchu City, Taiwan

TEL:+886-3-5284001 FAX:+886-3-5247655

SWIFT:TACBTWTP124

JHUBEI BRANCHNO.261, Guangming 6th Rd., Jhubei City, Hsinchu

County, Taiwan

TEL:+886-3-5546000 FAX:+886-3-5545614

SWIFT:TACBTWTP131

NAN TAICHUNG BRANCHNo.789, Jhongming S. Rd., Taichung City, Taiwan

TEL:+886-4-22617211 FAX:+886-4-22633964

SWIFT:TACBTWTP107

JHONGSING BRANCHNo.5, Gongyuan Rd., Central District, Taichung City,

Taiwan

TEL:+886-4-22241161 FAX:+886-4-22257517

SWIFT:TACBTWTP050

YUNLIN BRANCHNo.223, Minsheng Rd., Douliou City, Yunlin County,

Taiwan

TEL:+886-5-5324811 FAX:+886-5-5320332

SWIFT:TACBTWTP566

YONGKANG BRANCHNo.357, Jhonghua Rd., Yongkang City, Tainan County,

Taiwan

TEL:+886-6-2316971 FAX:+886-6-2316924

SWIFT:TACBTWTP153

WANNEI BRANCHNo.675, Jiangong Rd., Sanmin District, Kaohsiung City,

Taiwan

TEL:+886-7-3861591 FAX:+886-7-3869394

SWIFT:TACBTWTP128

52

KAOHSIUNG SOFTWARE PARK BRANCHNo. 11-2, Chenggong 2nd Rd., Qianzhen District,

Kaohsiung City, Taiwan

TEL:+886-7-5351888 FAX:+886-7-5352008

SWIFT:TACBTWTP352

SANCHONG BRANCHNo. 17, Zhengyi S. Rd., Sanchong City, Taipei County,

Taiwan

TEL:+886-2-29738111 FAX:+886-2-29722766

SWIFT:TACBTWTP010

MIAOLI BRANCHNo. 660, Zhongzheng Rd., Miaoli City, Miaoli County,

Taiwan

TEL:+886-37-320921 FAX:+886-37-336917

SWIFT:TACBTWTP018

SHALU BRANCHNo. 106, Shatian Rd., Shalu Township, Taichung County,

Taiwan

TEL:+886-4-26622141 FAX:+886-4-26622149

SWIFT:TACBTWTP021

YUANLIN BRANCHNo. 844, Sec.1, Zhongshan Rd., Yuanlin Town, Changhua

County, Taiwan

TEL:+886-4-8322181 FAX:+886-4-8330573

SWIFT:TACBTWTP024

FONGSHAN BRANCHNo. 95, Zhongzheng Rd., Fengshan City, Kaohsiung

County, Taiwan

TEL:+886-7-7460181 FAX:+886-7-7101465

SWIFT:TACBTWTP032

DATONG BRANCHNo. 10, Sec.3, Chengde Rd., Datong Dist., Taipei City,

Taiwan

TEL:+886-2-25932323 FAX:+886-2-25983642

SWIFT:TACBTWTP043

SAVMIN BRANCHNo. 30, Bo-ai 1st Rd., Sanmin District, Kaohsiung City,

Taiwan

TEL:+886-7-3127191 FAX:+886-7-3211992

SWIFT:TACBTWTP059

DONG SANCHONG BRANCHNo. 37, Sec. 2, Sanhe Rd., Sanchong City, Taipei County,

Taiwan

TEL:+886-2-29728111 FAX:+886-2-29739025

SWIFT:TACBTWTP067

ERCHONG BRANCHNo. 81, Sec. 1, Guangfu Rd., Sanchong City, Taipei

County, Taiwan

TEL:+886-2-29993399 FAX:+886-2-29993399

SWIFT:TACBTWTP158

52


COOPEERATIVEBANK

53

Auditing Division, Board of DirectorsTel: +886-2-23317531

Secretariat, Board of Directors Tel: +886-2-23118811

Business Management DepartmentTel: +886-2-23118811

Treasury Department Tel: +886-2-27312798

Corporate Banking Department Tel: +886-2-23118811

Credit Management DepartmentTel: +886-2-23118811

International Banking DepartmentTel: +886-2-27400628

Personal Banking DepartmentTel: +886-2-23317531

Trust DepartmentTel: +886-2-23118001

Wealth Management DepartmentTel: +886-2-23611100

Securities DepartmentTel: +886-2-27312798

Head Offi ce

77, Kuanchien Road, Jhongcheng District,Taipei 100, Taiwan,

Tel:+886-2-23118811; Fax:+886-2-23890704

Web Site http://www.tcb-bank.com.tw

Electronic Banking DepartmentTel: +886-2-23317531

Credit Card DepartmentTel: +886-2-23317531

Loan Assets Management DepartmentTel: +886-2-23118811

Administrative Management DivisionTel: +886-2-23118811

Accounting DivisionTel: +886-2-23118811

Information Technology DivisionTel: +886-2-27045799

Credit Analysis & Research DivisionTel: +886-2-23118811

Human Resource DivisionTel: +886-2-23118811

Risk Management DivisionTel: +886-2-23118811

Legal Affairs DivisionTel: +886-2-23118811

54

Overseas Units

United Taiwan Bank 7 th Floor, Boulevard du Regent 45/46,

1000 Brussels, Belgium

Tel:+322-2305359

Fax:+322-2300470

E-mail: [email protected]

Manila Offshore Banking Branch26th Floor, Citibank Tower,

8741 Paseo de Roxas, Makati,

Metro Manila, The Philippines

Tel:+632-8481959

Fax:+632-8481952


Los Angeles Branch601, South Figueroa St., Suite 3500,

Los Angeles, CA 90017 U.S.A.

Tel:+1-213-4895433

Fax:+1-213-4895195


Seattle Branch1201, Third Ave., Suite 1200,

Seattle, WA 98101 U.S.A.

Tel: +1-206-5872300

Fax: +1-206-6224491

E-mail: bank@tcbseattle .com

Hong Kong Branch13 th Floor, Dah Sing Financial Centre,

108 Gloucester Rd., Wanchai, H.K.

Tel:+852-25981128

Fax:+852-25981028


Beijing Representative Offi ceRoom 1805, Offi ce Tower 1, Henderson Centre,

18, Jianguomen Nei Avenue, Beijing China PRC 100005

Tel:+86-10-65188173/74/75 Fax:+86-10-65188172


Subsidiaries

Co-operative Asset Management Co., Ltd.7 th Floor, No.325, Sec. 4, Jhongsiao E. Rd., Taipei City,

Taiwan

Tel:+886-2-87720868

Fax:+886-2-87727153

E-mail:[email protected]

Cooperative Insurance Brokers Co., Ltd.5th Floor, No.85, Yanping S. Rd., Taipei City, Taiwan

Tel:+886-2-23898811

Fax:+886-2-23891155


United Taiwan Bank 7 th Floor, Boulevard du Regent 45/46, 1000 Brussels,

Belgium

Tel:+322-2305359

Fax:+322-2300470


Taiwan Cooperative Bills Finance Corporation14 th Floor, No.85/87, Sec. 2, Nanjing E. Rd., Taipei City,

Taiwan

Tel:+886-2-25221656

Fax:+886-2-25221552


Cooperative-I Asset Management Corporation7 th Floor, No.325, Sec. 4, Jhongsiao E. Rd., Taipei City,

Taiwan

Tel:+886-2-87720868

Fax:+886-2-87727153


Offshore Banking Unit

Offshore Banking Branch6 th Floor, No.325, Sec. 4, Jhongsiao E. Rd., Taipei City,

Taiwan

Tel:+886-2-27400628

Fax:+886-2-27781615

54


COOPEERATIVEBANK

55

Spokesperson:John S.C. Chou / Hsueh-Tao Wu

Executive Vice President / Senior Vice President & General ManagerTel: +886-2-23118811 Ext.208 / +886-2-23118811 Ext.300

E-mail:[email protected] / [email protected]

Taiwan Cooperative Bank77, Kuanchien Road, Taipei Taiwan, Republic of China

Tel:(02)23118811Fax:(02)23890704

http:// www.tcb-bank.com.tw

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