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Table of Contents
Financial Highlights 02
Awards and Achievements 04
Message to Shareholders 06
Fubon Life 14
Taipei Fubon Bank 15
Fubon Bank (Hong Kong) 16
Fubon Bank (China) 17
Fubon Insurance 18
Fubon Securities 19
Investment Management Group 20
Corporate Citizenship 22
Fubon’s Three Principles 26
FUBON PLUSRADIATING POSITIVE ENERGY
Forward-thinking and solid in its approach, Fubon Financial Holdings is
a key generator of positive momentum in the financial services sector.
By offering the best financial services to Chinese communities in Asia
and building a robust organization, we continue to move closer to our
vision of becoming one of Asia’s first-class financial institutions.
2015 Annual Report
1
Financial Highlights
Fubon Financial Holdings
In NT$ Million 2013 (2) 2014 (3) 2015
Total Assets 4,596,972 5,438,358 5,987,468
Total Equity 341,900 416,161 376,077
Equity Attributable to Owners of Parent 341,678 408,057 367,622
Net Income 38,464 60,478 63,806
Net Income Attributable to Owners of Parent 38,514 60,244 63,593
Earings Per Share (NTD) 3.90 5.89 6.21
Book Value Per Share (NTD) 33.39 39.87 35.92
Return on Equity (%) (1) 11.9% 16.1% 16.4%
Return on Assets (%) 0.9% 1.2% 1.1%
The figures above are the consolidated results of Fubon Financial Holdings Co. and its subsidiaries. (1) The calculation factor of Return on Equity is the amount attributable to parent company. (2) Restated retrospectively for subsequent measurement of investment properties from the cost model to the fair value model. (3) Restated retrospectively for the first time adoption of the 2013 IFRSs.
Total Assets
2013
2014
2015
5,438,358
4,596,972
5,987,468
Equity Attributable to Owners of Parent
2013
2014
2015
341,678
408,057
367,622
Net Income Attributable to Owners of Parent
2013
2014
2015
38,514
60,244
63,593
2015 Annual Report
2
Fubon Securities
In NT$ Million 2013 (2) 2014 2015
Brokerage Commissions 2,461 3,008 2,659
Net Interest Income 832 937 940
Gain on Trading Securities, Net
618 650 (26)
Total Revenues 5,038 5,447 5,290
Operating Expenses 3,971 4,326 4,327
Net Income 1,370 1,356 1,348
Fubon Bank (China)
In CNY$ Million 2014 2015
Net Interest Income 928 1,034
Commissions and Fee Revenues, Net
124 118
Other Revenues 13 26
Operating Expenses 473 601
Pre-Provision Profit 591 577
Provision (reversal) for Bad-Debt Losses
59 84
Net Income 422 390
Fubon Insurance
In NT$ Million 2013 (2) 2014 2015
Direct Written Premium 27,497 29,176 30,436
Net Written Premium 21,477 22,978 24,264
Underwriting Profit 1,727 1,748 1,680
Investment Income 2,087 1,659 2,164
Net Income 3,244 2,816 3,213
Net Claim Ratio 56.86% 59.40% 55.78%
Net Expense Ratio 36.76% 36.62% 37.78%
Net Combined Ratio 93.62% 96.02% 93.56%
Retention 75.09% 75.34% 74.41%
Fubon Life
In NT$ Million 2013 (2) 2014 2015
First Year Premium (4) 204,152 176,116 185,654
Investment Income 86,138 109,740 129,923
Operating Revenue 496,175 516,913 585,006
Operating Costs 458,303 462,305 520,881
Net Income 25,007 35,367 41,018
First Year Premium (5) 212,818 190,974 205,282
Interest-Sensitive 110,066 146,821 146,775
Investment-Linked 8,666 14,858 19,627
Traditional 94,086 29,295 38,880
Fubon Bank (Hong Kong) (6)
In HK$ Million 2013 2014 2015
Net Interest Income 750 842 1,073
Net Fee and Commission Income
271 317 353
Other Operating Income 154 147 78
Operating Expenses 842 897 1,027
Operating Profit before Gains and Impairment Losses
333 409 477
Impairment Losses 11 26 71
Profit for the Year 380 481 522
Taipei Fubon Bank
In NT$ Million 2013 (2) 2014 (3) 2015
Net Interest Income 15,775 17,329 17,859
Commissions and Fee Revenues, Net
8,431 10,570 11,130
Other Revenues 9,480 11,731 8,110
Operating Expenses 15,578 16,559 17,191
Pre-Provision Profit 18,108 23,071 19,908
Provision (reversal) for Bad-Debt Losses
3,857 1,987 (247)
Net Income 12,153 18,237 17,783
(4) Excluding Investment-Linked (5) Including Investment-Linked
(6) The financial highlights of Fubon Bank (Hong Kong) are from consolidated financial statements. Other subsidiaries are from separate financial statements.
2015 Annual Report
3
2015 Awards and Achievements
Chinese Management Association Fubon Financial Chairman Daniel M. Tsai Management Medal
2015 MAPECT Taiwan M&A Awards Fubon Financial Chairman Daniel M. Tsai Outstanding Achievement Award
Asiamoney Taipei Fubon Bank Best Local Cash Management Bank—as voted by medium-sized and large corporates / Best Local Private Bank—as voted by AUM > US$25 million customers Fubon Securities Best Domestic Equity House in Taiwan / Best Local Brokerage in Taiwan—3rd place
Asia Asset Management Fubon Asset Management Best New ETF in Asia / Best New ETF in Taiwan
Corporate Governance Asia Fubon Financial Chairman Daniel M. Tsai Asian Corporate Director Recognition Awards / Asia’s Best CEO (Investor Relations) Fubon Financial Recognition Award for Corporate Governance—Taiwan / Best Investor Relations by a Taiwan Company / Best CSR / Best Investor Relations Professional
Euromoney Taipei Fubon Bank Best Domestic Private Bank in Taiwan—2nd Place
Factor Chain International Taipei Fubon Bank Best Factoring Service Quality in Taiwan
FinanceAsia Fubon Financial Best Investor Relations in Taiwan—Banks and Financial Institutions Fubon Securities Best ECM House in Taiwan
Global Finance Taipei Fubon Bank Best Bank in Taiwan
IFR Asia Fubon Financial Taiwan Loan House of the Year
Reader’s Digest Taipei Fubon Bank Trusted Brand Gold Award 2015 in the Wealth Management Bank category Fubon Life Trusted Brand Gold Award 2015 in the Insurance category
The Asian Banker Taipei Fubon Bank Best Internet Banking in Taiwan
The Asset Fubon Financial Corporate Award—Platinum Award Taipei Fubon Bank Best Private Bank in Taiwan / Best Cash
Management Bank in Taiwan / Best Transaction Bank in Taiwan / Best Renminbi Bank in Taiwan / Best Cash Management Solution in Taiwan / Best SME Risk Management Solution in Taiwan (for Lorom Industrial Co., Ltd.) Fubon Life Asian Currency Bond Benchmark Review 2014—Top Investment House for Taiwan Dollar Bonds Fubon Securities Best Initiative in Innovation
The Banker & PWM Taipei Fubon Bank Best Private Bank in Taiwan
World Finance Fubon Life Insurance Company of the Year 2015, Taiwan
Taiwan Tatler Fubon Art Foundation CEO Maggie Tsai Connoisseur of Art
CommonWealth Magazine Fubon Financial Corporate Social Responsibility Awards—one of 10 finalists in the Large Company category Taipei Fubon Bank Golden Service Award—4th Place in the Bank category Fubon Life Golden Service Award—2nd Place in the Life Insurance category Fubon Securities 2015 Digital Life Survey—Best Online Broker—2nd Place
Business Today Taipei Fubon Bank 9th Wealth Management Survey on Banks and Brokerage Firms—Best Wealth Management Bank—2nd Place / Most Customer Trust—1st Place / Best Service—3rd Place Fubon Securities 9th Wealth Management Survey on Banks and Brokerage Firms—Best Potential—1st Place / Best Digital Initiative—3rd Place ; Most Respected Brands by Businesspeople—3rd Place in the Brokerage category
Excellence Magazine Fubon Life 2015 Top Insurance Companies—Best Service Quality Award in the Financial Holding Company category
Wealth Magazine—Taiwan Financial Award Fubon Financial Corporate Social Responsibility Award for Financial Holding Company—Silver Winner Taipei Fubon Bank Best Wealth Management—Silver Winner / Best Mobile Bank—Silver Winner Fubon Life Best Life Insurance Products—Silver Winner Fubon Securities Best Brokerage Service—Gold Winner / Best Local Brokerage Public Image—Silver Winner
Risk Management, Insurance & Finance Fubon Financial Most Admired Financial Holding Company Fubon Insurance Most Admired P&C Insurance Company / 17th Faith, Hope, and Love Awards—Distinguished Profession Award in the Non-Life Insurance category ; Distinguished Policy Designer Award in the Non-Life Insurance category (for a comprehensive mountaineering Insurance) ; Distinguished Contribution Award in Insurance Education in the Non-Life Insurance category ; Distinguished Representative Office Award in the Non-Life Insurance category ; Distinguished Career Achievement Award in the Non-Life Insurance category ; Distinguished Contribution Award in Social Responsibility—Honorable Mention ; Distinguished Policy Designer Award in the Non-Life Insurance category (for an aquaculture insurance)—Honorable Mention Fubon Life Most Admired Insurance Company in the Back-Office Support category / Most Admired Insurance Company in the Field Representative category / Best Brand Recognition / Best Claims Service / Best Sales Representative / Most Recommended Insurance Company / 17th Faith, Hope, and Love Awards—Distinguished Contribution Award in Social Responsibility in the Life Insurance category ; Distinguished Profession Award in the Life Insurance category ; Distinguished Distribution Strategy Award in the Life Insurance category ; Distinguished Representative Office Award in the Life Insurance category ; Distinguished Career Achievement Award in the Life Insurance category
PMI—Taiwan Chapter Taipei Fubon Bank 2015 Enterprise Project Management Benchmarking Award
Next Magazine—12th Top Services Awards Taipei Fubon Bank 2nd Place in the Bank category Fubon Life 2nd Place in the Life Insurance category
Smart Monthly Fubon Life 2nd SMART Insurance Policy Ranking—Excellent Value Award
Global Views Monthly Fubon Financial The 11th CSR Awards—Exemplary Practice as a Happy Company Taipei Fubon Bank Financial & Wealth Management Five Star Awards—Top Prize for Wealth Management Service ; Overall Bank Image—2nd Place ; Wealth Management Brand—1st Place / Most Recommended Wealth Manager—1st Place ; Overall Service—1st Place ; Product Performance—1st Place ; Client Events—1st Place ; Most Popular Bank for Investment
2015 Annual Report
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Advisory Service—1st Place ; Best Online Platform for Investment Advisory Service—1st Place / Service Sector Survey—3rd Place in the Banking and Financial Services category Fubon Asset Management Award for Best Asset Management Brand—Award of Distinction in the Domestic category / Award for Most Active Asset Management Firm—Award of Excellence in the Domestic category
6th Taiwan Insurance Best Performance Awards Shih Tsan-ming, adviser to Fubon Insurance Lifetime Achievement Award Fubon Insurance Best Customer Service Award—Gold Award / Best Staff Training Award—Gold Award / Best Product Innovation Award—Gold Award / Best ICT Innovation Award—Gold Award / Best Risk Management Award—Silver Award / Best Public Service Award—Silver Award Fubon Life Best Product Innovation Award—Gold Award / Best Risk Management Award—Gold Award / Best Customer Service Award—Silver Award / Best Staff Training Award—Silver Award / Best ICT Innovation Award—Silver Award
Manager Today Fubon Life 2015 Power Brands—Best Life Insurance Company
Republic of China National Enterprise Competitiveness Development Association—National Brand Yushan Award Fubon Life Top Prize in the Best Corporate category / Yushan Award in the Best Corporate category / Yushan Award in the Best Product category
Financial Supervisory Commission Fubon Insurance 2015 Exemplary Pay Increase Practice in the Insurance category / 2015 Outstanding Performance Award in Microinsurance Fubon Life 2015 Exemplary Pay Increase Practice in the Insurance category / 2015 Outstanding Performance Award in Microinsurance
Securities & Futures Institute—13th Golden Goblet Award Fubon Securities Award for Best Companies for Salary Raise Recognition Fubon Asset Management Award of Excellence in Financial Innovation
Joint Credit Information Center Taipei Fubon Bank Gold Quality Award in the Credit Card Data category
Ministry of Culture Fubon Financial 12th Arts & Business Awards—Sponsorship of the Year
Ministry of Education Fubon Art Foundation The Social Education Public Service Award
Sport Administration, Ministry of Education Fubon Financial Sponsorship Gold Medal and Long—Term Sponsorship Award
Health Promotion Administration, Ministry of Health and Welfare Taipei Fubon Bank Recognition of Excellence in Workplace Wellness
Taiwan Stock Exchange Fubon Financial 1st Corporate Governance Ranking—ranked among the top 5% entrants Fubon Securities IPO Fund-raising—1st Place / Market Value in IPO—2nd Place / SPO Fund-raising—3rd Place / Number of IPO Deals—2nd Place / Warrant Trading Turnover—3rd Place
Taiwan Futures Exchange Fubon Asset Management 1st Futures Diamond Award—Outstanding Contribution Award in the Asset Management category—1st Place Fubon Futures Outstanding Contribution Award in the Managed Futures Business / Excellence Award for Trading Accounts Promotion for RMB FX Futures
Taipei City Government Fubon Financial 2015 Taipei Energy Conservation Leadership Awards—2nd Place
Department of Economic Development, Taipei City Government Fubon Financial Shortlisted Applicant for Taipei City’s Energy Label for Commercial Buildings
Department of Health, Taipei City Government Taipei Fubon Bank Recognition of Excellence in Workplace Wellness Management
Department of Environmental Protection, Taipei City Government Fubon Financial Certif icate of Exemplary Leadership in Green Purchasing
GreTai Securities Market Fubon Securities Deal of the Year for Recommending Securities Firm—2nd Place
Dalian City Association of Insurance Industry Dalian Branch, Fubon P&C Insurance Prominent Organization of Insurance Cultural Construction Promotion
Dalian Traffic Radio Station of DLTV Dalian Branch, Fubon P&C Insurance
Awarded as the “Caring Enterprise” of its Charity Event
China Consumer Protection Foundation Fubon P&C Insurance Accredited as a Quality Service Organization for Consumer Interests
Xiamen Auto Collision Repair and Damage Estimating Center Claims Department (Xiamen), Fubon P&C Insurance Recognized as Prominent Service Organization
Tiptop Consultants Ltd. Fubon Bank (Hong Kong) Tiptop Service Award—Persistently Outstanding Service Outlet (2014-2015)
Hong Kong Council of Social Service Fubon Bank (Hong Kong) Caring Company Logo
Hong Kong Red Cross Fubon Bank (Hong Kong) Annual Big Donors—Red Award
VISA Hong Kong Limited Fubon Bank (Hong Kong) 2014 Challengers’ League Largest Payment Volume Growth—Silver Prize / 2014 Challengers’ League Highest Payment Volume—Bronze Prize
Bank of New York Mellon Fubon Bank (Hong Kong) Straight Through Processing Award
Metro Daily and Metro Prosperity Fubon Bank (Hong Kong) Metro Awards for Banking and Finance Corporations 2015—Best Merchant Receivable Financing Bank
MasterCard Worldwide Fubon Bank (Hong Kong) The Highest Growth Rate In 2014 Cardholder Spending In Hong Kong—2nd Runner Up
PCCW Media Limited Fubon Bank (Hong Kong) Yellow Pages Award 2015-16—The Best Merchant Receivable Financing Service
Employees Retraining Board Fubon Bank (Hong Kong) ERB Manpower Developer Award Scheme— Manpower Developer
British Standards Institution Fubon Financial Certif ied to meet both the AA1000 Assurance Standard and GRI’s G4 guidelines for corporate social responsibility reports
2015 Taiwan Corporate Sustainability Fubon Financial Ten Most Sustainable Company Awards / Creativity in Communication Awards / Taiwan Top 50 Corporate Sustainability Report Awards-Financial Industry—Gold Medal
2015 Annual Report
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Message to Shareholders
Dear Shareholders,
2015 was a challenging year marked by heightened volatility in
global financial markets. The contraction in exports weighted
on Taiwan’s domestic sector, with the economy decelerating
to a growth rate below 1%. Despite the economic headwinds,
Fubon Financial Holdings reported net income of NT$63.6 billion
and earnings per share (EPS) of NT$6.21 in another year of
record performance, owing to its well-balanced mix of profitable
businesses. Both figures were the highest in the domestic financial
sector for the seventh consecutive year.
In addition to solidifying its home market success, Fubon Financial
Holdings spent the past year building out its network in Greater
China. Key milestones included an approval for Fubon Life to
establish a subsidiary in Hong Kong, and green light given to
Fubon Securities to acquire up to 40% of China-based Huishang
Futures and raise a Chinese private equity fund. In June, the
Monetary Authority of Singapore agreed in principle to Taipei
Fubon Bank’s plan to set up a branch in Singapore with the start
of operations scheduled for March 2016. The holding company
finished the year on a high note after Fubon Life concluded
an investment in South Korea-based Hyundai Life Insurance
in December, furthering its ambition to become a strong pan-
regional champion.
Looking ahead to 2016, Fubon Financial Holdings will continue
to integrate resources and drive business synergies across
its subsidiaries. FinTech development will remain a priority to
accelerate digital innovation. In order to maintain sound asset
quality, the company will closely monitor economic developments
and changing trends in the industries that it serves for early
detection of risks while implementing effective risk management
and controls.
In support of the Taiwan government’s push for strong pan-Asia
players, Fubon Financial Holdings has been strengthening its
regional presence. The company now operates one of the most
comprehensive financial service platforms across Taiwan, Hong
Kong and China through which it offers banking, insurance, asset
management and other services. In 2016, it will continue to expand
into other markets beyond Greater China as it advances its goal to
become a first-class financial institution in Asia.
Market-Leading Profit for Seventh Straight Year
Looking back at 2015, economic expansion continued in the U.S.,
the eurozone and Japan but at a disappointing rate. Against a
backdrop of stagnant world trade, decelerating growth in China
and depressed oil prices, Taiwan’s exports started declining
every single month since February to end the year down 10.6%.
Weakness in the export sector rippled through the domestic
economy, as evidenced by two consecutive quarters of negative
growth in capital investment, waning consumer confidence
and reluctance to spend. That, in turn, resulted in a modest
contribution of private consumption to gross domestic product at
less than 1% in the second half of the year. Taiwan recorded its
weakest economic growth in six years in 2015 at 0.75%, sharply
down from 3.92% in the prior year.
Despite the economic headwinds, the results of Fubon Financial
Holdings’ subsidiaries were reassuringly strong, especially for
Fubon Life and Taipei Fubon Bank, the group’s two major profit
drivers. The holding company again reported a record profit of
NT$63.6 billion, or 5.6% higher than in 2014, and EPS of NT$6.21.
Both figures were the highest in the domestic financial sector
for the seventh consecutive year. Return on assets and return
on equity arrived at 1.1% and 16.4%, respectively, with the latter
setting a record.
As of the end of 2015, Fubon Financial Holdings had close to NT$6
trillion in assets, also a record high. Total reported assets were
NT$5.9875 trillion, 10.1% higher than a year ago, making Fubon
Financial Holdings Taiwan’s second-largest f inancial holding
company by assets.
Taipei Fubon Bank & Fubon Life: Dual Engines of Profitability
Solid growth seen across key subsidiaries demonstrated Fubon
Financial Holdings’ fundamental strength. Fubon Life and Taipei
Fubon Bank, in particular, represented 92.5% of the parent
company’s net profit.
Fubon Life, the holding company’s insurance arm known for its
well-positioned product lines and large multi-channel network,
reported another year of record profit. It remained Taiwan’s most
profitable life insurer with net income of NT$41.02 billion, up 16%
year-on-year.
Fubon Life generated first-year premiums of NT$205.3 billion, up
7.5% year-on-year, for a 17.3% market share. Total premiums were
NT$474.4 billion, 11.6% higher than in 2014, for a 16.2% market
share. Both measures of premium income claimed second place
in the industry. With sustained growth of investable assets, Fubon
Life’s total assets crossed the NT$3 trillion mark at 2015 year-end.
Taipei Fubon Bank also posted a solid set of results. Its institutional
franchise saw significant expansion in the SME client base, the
2015 Annual Report
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Daniel M. TsaiChairman
Fubon Financial Holdings
2015 Annual Report
7
scale of overseas branches and volumes of syndicated lending.
In the area of retail banking, the bank’s bancassurance business
grew at a steady pace, and its mortgage business ranked among
the largest in private-sector banks despite a property market
slump. At the same time, it topped peers in the average monthly
amount of credit card transactions per effective card. A balanced
approach to risk and return helped Taipei Fubon Bank deliver
sustained growth, with net profit reaching NT$17.78 billion.
Fubon Insurance: 34 Years of Leadership
Fubon Insurance maintained its leadership position in 2015 for
the 34th consecutive year. Its direct written premiums grew 4.3%
to NT$30.44 billion for a market share of 22.5%, reflecting its
success in leveraging the marketing resources and distribution
capabilities of its parent company. The insurer’s underwriting profit
increased to NT$1.68 billion in spite of severe catastrophic events.
Net income was NT$3.21 billion, or NT$10.1 per share.
Fubon Property & Casualty Insurance, a mainland Chinese
subsidiary that Fubon Insurance founded in October 2010,
operates 42 offices across China. Written premiums for 2015
were RMB870 million, up 25.9% over the prior year. In Xiamen,
the company was ranked the sixth largest player. Country-wide, it
was the fastest growing foreign-owned P&C insurer, finishing 2015
in sixth position out of 22. Fubon Property & Casualty Insurance
achieved a high satisfaction score in a consumer protection survey
by the China Consumer Protection Foundation and performed
well in several auto insurance customer advocacy rankings—a
testament to its high-quality service. Going forward, expansion in
cities of Xiamen, Chongqing and Dalian and provinces of Fujian,
Sichuan and Liaoning will be a key priority for the company.
Fubon Securities saw broad-based growth across its businesses.
The firm was ranked among the top three retail brokers with a 5.19%
market share. In addition, it claimed the second spot whether
measured by value of IPOs, value of SPOs or offerings of emerging
stocks, establishing the firm as a leader in equity underwriting.
Outside its home market, Fubon Securities made signif icant
breakthroughs in 2015, most notably approvals from regulators
to acquire up to 40% of China-based Huishang Futures and
raise a Chinese private equity fund. It plans to form a mainland
securities joint venture as soon as regulations allow. These
new growth initiatives, coupled with a full-service platform of
stock and futures trading, advisory and capital market services,
position Fubon Securities competitively to be a premier securities
firm in Greater China.
Fubon Bank (China): Largest Chinese Branch Network among
Taiwanese Peers
Formerly known as First Sino Bank before its name change in
April 2014, Fubon Bank (China) is a critical element of Fubon
Financial Holdings’ growth strategy as it complements the holding
company’s existing banking network in Greater China. Since the
completion of a restructuring of its share capital, the bank has
made meaningful progress in operations, corporate governance
and risk management along with a larger branch footprint.
Fubon Bank (China) operates 22 offices situated in the Yangtze
River Delta, the Pearl River Delta and along the Bohai Rim,
including a new branch planned in Beijing. As the only Taiwanese-
owned bank that operates in each of China’s four free-trade zones,
it offers the most complete coverage of key Chinese markets
among its Taiwanese peers.
Fubon Bank (Hong Kong) reported net income of HK$522 million
for the year, representing an increase of 8%. In November, Fubon
Bank (Hong Kong) opened its first iBranch in the Wanchai District.
Subsequently, a second iBranch, also the 23rd branch of the
bank, was launched in the Western District. The iBranches feature
video teller machines i-Tellers and other digital banking facilities
designed to enhance service levels and deliver a unique customer
experience. Fubon Bank (Hong Kong) also launched new mobile
banking, e-statement and e-cheque services to respond to
increasing demand for online self-service.
Ambitions for Regional Leadership
In December 2015, Fubon Life became Hyundai Life’s second-
largest shareholder after it acquired a 48% stake, next only to
Hyundai Motor Group, which held 50.2%. Fubon Life also secured
five board seats in the South Korean life insurer. This transaction
marks not only the beginning of a long-term partnership between
Fubon Life and Hyundai Life, but also a milestone in Fubon
Financial Holdings’ ambition to become a regional champion.
Hyundai Motor Group is South Korea’s largest and the world’s fifth
largest auto company. It has extensive holdings in the financial
sector from loans, credit cards to life insurance. With more than
2,300 employees working around 51 offices in South Korea,
Hyundai Life, formerly known as Green Cross Life before it was
acquired by Hyundai Motor Group in 2012, is seen as a solid
starting point for Fubon Life’s expansion into Northeast Asia.
The investment in Hyundai Life marks the latest of Fubon Life’s
efforts to increase its presence in Asia, following a Vietnamese
subsidiary established in 2011 and the receipt of approval in
2015 Annual Report
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Richard M. TsaiVice Chairman
Fubon Financial Holdings
2015 Annual Report
9
Rating Type Rating AgencyCredit Rating
Outlook Effective DateLong-term Short-term
InternationalStandard & Poor’s BBB+ A-2 Stable 2015 / 11 / 20
Moody’s Baa1 Stable 2016 / 01/ 06
Domestic Taiwan Ratings Corp. twAA twA-1+ Stable 2015 / 11 / 20
The ratings Fubon Financial Holdings received in 2015 are as follows:
March 2015 to form a subsidiary in Hong Kong. Under the deal,
Fubon Life will collaborate with Hyundai Life to enhance returns
on investment, develop insurance products specifically to address
the issue of increased life expectancy, and introduce multi-channel
distribution capabilities in order to provide a superior experience
for South Korean customers. On the group level, Fubon Financial
Holdings plans to expand its partnership with Hyundai to other
business segments beyond life insurance.
On top of Fubon Life’s entry into South Korea, Taipei Fubon
Bank is planning a new branch in Singapore, which will start
operations in March 2016. This new location gives Fubon Financial
Holdings a beachhead from which to move into ASEAN markets,
where it will offer products and services that facilitate trade and
investment and help clients participate in Southeast Asia’s growth
opportunities. A supporter of the Taiwan government’s bid to grow
select financial holding companies into regional champions, Fubon
Financial Holdings will continually explore strategic alliances and
collaboration throughout Asia.
Balance Sheet Strength Enabled by Proactive Risk Management
In the process of growing its business, Fubon Financial Holdings
places great emphasis on risk management in order to maintain a
strong capital position and above-peer asset quality. The holding
company’s capital adequacy ratio was 124.83% in 2015, far above
the regulatory requirement of 100%.
In 2015, the Financial Supervisory Commission imposed on local
banks a minimum 1.5% loan-loss provision on credit extended
to China in order to tighten oversight of China-related lending
exposure. Taipei Fubon Bank increased its loan-loss provisioning
during the year and met this regulatory requirement.
Taipei Fubon Bank’s BIS ratio was 13.44% as of the end of 2015,
an indication of the bank’s strong capital position. Even with
steady loan growth, the bank’s non-performing loan ratio was
0.15%, well below the industry average of 0.23%. Its coverage ratio
was 816.4% as of the end of 2015, far higher than the industry
average of 555.43%.
In a report released on November 20, 2015, Taiwan Ratings Corp.
affirmed Fubon Financial Holdings’ long-term rating as twAA
and its short-term rating as twA-1+. Moody’s Investors Service,
in its latest ratings note dated January 6, 2016, maintained its
outlook for the company at Stable. These affirmations reflect the
company’s ability to generate above-average profit margin and
superior asset quality.
Exemplary Practice in Corporate Governance
Fubon Financial Holdings aspires to the highest standards of
corporate governance. It is not only Taiwan’s first listed company
to have established an independent director system, but also
the first domestic financial company to have at least one-third
of its board composed of independent directors. In 2015, Fubon
Financial Holdings was ranked in the top 5% of companies in
the Taiwan Stock Exchange’s f irst-ever ranking of corporate
governance, demonstrating the progress the company delivered
on corporate governance.
In 2015, Corporate Governance Asia awarded Fubon Financial
Holdings with a Recognition Award for corporate governance
for the seventh consecutive year, and honored Fubon Financial
Holdings Chairman Daniel M. Tsai with an Asian Corporate
Director Recognition Award for the sixth year running for his
contributions to corporate governance, social responsibility and
environmental protection.
Transparency is an impor tant cornerstone of corporate
governance. Fubon Financial Holdings was awarded Best Investor
Relations in Taiwan by Corporate Governance Asia for the fifth
straight year, in recognition of the company’s commitment to
transparency in corporate reporting.
For years, Fubon Financial Holdings has leveraged its core
competencies to del iver on i ts commitments to corporate
social responsibility (CSR). The company has been consistently
included in CommonWealth magazine’s top 10 listing of large
companies for distinction in corporate citizenship. In 2015,
it won Ten Most Sustainable Company Award, Creativity in
Communication Award, and Top 50 Corporate Sustainability
Report Gold Award in the Financial category in the Taiwan
Corporate Sustainability Awards.
Apart from its strong financial performance, Fubon Financial
Holdings’ efforts to contribute positive energy to society and act
as a good corporate citizen have been recognized by leading
finance media and trade publications. 2015 marked the fif th
consecutive year that the holding company won the Best CSR
Award from Corporate Governance Asia and a Platinum Award
for Corporate Award from The Asset. It also received a Silver
Award in the Financial Holding Company category from Wealth
magazine’s CSR Awards.
Awards and Recognition for Subsidiaries
Fubon Financial Holdings’ subsidiaries have received numerous
accolades of their own. Notable awards earned by Taipei Fubon
2015 Annual Report
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Bank in 2015 included Asiamoney’s Best Local Private Bank
(among high net worth individuals with at least US$25 million in
assets under management) and Best Local Cash Management
Bank (as voted by medium-sized and large corporates); Global
Finance’s Best Bank in Taiwan; and The Asset’s Best Private
Bank, Best Cash Management and Best Transaction Bank
in Taiwan. As proof of its best-in-class wealth management
solutions, the bank won nine awards in Global Views Monthly’s
Financial & Wealth Management Five Star Awards. It secured
second place in the Best Wealth Management Bank category
and f irst place in the Most Customer Trust category in the
Business Today’s 9th Wealth Management Survey on Banks and
Brokerage Firms.
Fubon Life was named for its fourth time Company of the Year
in Taiwan by World Finance, an accolade that demonstrated
the insurer’s years of industry leadership. Moreover, Fubon
Life was awarded second place in the Life Insurance category
in CommonWealth magazine’s Golden Service Award, a top
prize in the Best Corporate category in the 12th National Brand
Yushan Award, and four honors at Risk Management, Insurance
& Finance magazine’s Insurance Quality Award, including Most
Recommended Insurance Company.
Fubon Insurance emerged as Most Admired P&C Insurance
Company among f inance and insurance graduates in a poll
conducted by Risk Management, Insurance & Finance magazine.
It won a total of seven awards in the Faith, Hope and Love
Awards, including Distinguished Profession Award, Distinguished
Policy Designer Award (for a comprehensive mountaineering
insurance policy) and Distinguished Contr ibution Award in
Insurance Education.
Fubon Securities received several prestigious awards in 2015,
inc lud ing F inanceAsia’s Best ECM House in Ta iwan and
Asiamoney’s Best Domestic Equity House in Taiwan. Business
Today’s 9th Wealth Management Survey on Banks and Brokerage
Firms recognized the company as having the most potential as a
wealth manager. The Taiwan Financial Award hosted by Wealth
magazine named Fubon Securities Gold Winner for Best Brokerage
Service and Silver Winner for Local Brokerage Public Image.
Fubon ESG Visioning Project: A Pathway to Sustainability
In late 2015, Fubon Financial Holdings launched the Fubon ESG
Visioning Project, a new initiative aimed at managing business risks
and opportunities of climate change and other environmental and
social issues. As part of the initiative, a task force was created under
the Corporate Governance and Sustainability Committee (formerly
named the Corporate Governance Committee). Led by the president
of Fubon Financial Holdings with oversight from two independent
directors, the ESG Task Force sets out strategic objectives, with
action items developed for each objective, for the short-, mid-, and
long-term horizon. There are six smaller work teams, each focused
on a specific topic area, including the Corporate Governance Team,
the Employee Care Team, the Responsible Finance Team, the
Customer Engagement Team, the Social Commitment Team and
the Environmental Sustainability Team.
Wan-Tsai Tsai, the late founder of the Fubon Group, was a
champion of the spirit expressed in the Chinese idiom of “ploughing
back to the community whatever is due to the community.” The
group’s four main foundations serve as important platforms
through which Fubon Financial Holdings carries out its CSR
initiatives. In addition, the Fubon Volunteer Association and
policies such as paid volunteering leave have been put in place
to encourage employees to contribute their time and skills toward
improving the community.
The Fubon Charity Foundation raised over NT$113 million in
2015 for the Making Friends with Love program, helping 15,709
students continue their studies. The Fubon Cultural & Educational
Foundation continued to promote f inancial education, and
more than 4,000 students in 35 primary schools learned about
managing money responsibly through the Future Tycoon Outreach
Program in the same year.
The Fubon Art Foundation’s Very Fun Park, an annual spectacle of
large-scale installations, marked its tenth anniversary by teaming
up with Google to place the artworks online in what was Asia’s first
virtual “wall-less museum.” From 2000 through 2015, Fubon Forum
attracted more than 180,000 audiences to 1,763 lectures and classes
on the aesthetics in the everyday life. The Taipei Fubon Bank Charity
Foundation, a supporter of the elderly, the physically challenged
and those from economically disadvantaged backgrounds, made
advocacy of dementia its main initiative for 2015, with interactive
e-learning tools developed to increase Fubon employees’ knowledge
about recognizing and diagnosing dementia.
Local Root, Regional Reach
In the year ahead, the world economy is expected to continue
its moderate pace of growth, but downside risks are rising
sharply. Risks factors from further slowdown in China’s economy,
depressed oil prices to heightened volatility in financial markets
are likely to derail growth in Taiwan’s main export destinations.
As Taiwan’s export sector remains under pressure, corporations’
reluctance to invest, along with lower wage growth and diminishing
2015 Annual Report
11
Daniel M. Tsai
Chairman, Fubon Financial Holdings
Richard M. Tsai
Vice Chairman, Fubon Financial Holdings
housing and stock market wealth effects, paints a less-than-
optimistic economic scenario for 2016.
The 2016 initiatives and goals set out for each of the holding
company’s major subsidiaries are as follows:
1. Fubon Life: Key initiatives for 2016 include renewed sales efforts
on annuity plans, health insurance and long-term care plans to
help customers with their retirement planning and risk protection;
continued implementation of the annual recruitment program and
market development strategies to achieve targeted segmentation
and balanced geographic coverage; digital innovation and training
to increase the ability of sales representatives to use technology;
and preparations for a new subsidiary in Hong Kong.
2. Taipei Fubon Bank: The bank’s priorities for 2016 include
deepening client relationships and optimizing its product portfolio;
increasing intra-regional connectivity through a new branch in
Singapore; exploring infrastructure-related opportunities arising
from the One Belt, One Road initiative in order to increase
exposure to international markets and enhance return on assets;
rationalizing the branch network while expanding selectively
in central and southern Taiwan; developing more detai led
segmentation and highly-targeted marketing; and accelerating the
speed of digital and mobile innovation.
3. Fubon Bank (Hong Kong): Key actions for 2016 involve
increasing the number of high-quality SME clients and finding
prospective cl ients with regional scale; strengthening r isk
management to maintain healthy asset quality; optimizing the
branch network and identifying suitable branch locations to
be remodeled into iBranches; increasing sales staf f for the
bank’s market-leading credit receivable factoring business; and
enhancing the bank’s overall return through cross-selling and
client engagement.
4. Fubon Bank (China): Strategic actions will be undertaken in
2016 to upgrade the technology infrastructure, expand the branch
network, form a committee to encourage innovation, enhance
risk management, implement a performance-based pay system,
foster local talents, seek a retail banking license to conduct yuan
business, and strengthen a wide range of capabilities from virtual
banking, financing for the Internet of Things value chain, treasury
management, syndicated lending, investment banking to asset
management. The bank plans to continue leveraging its parent
group’s geographic breadth, strength in cross-border financing
and local market expertise to develop lasting relationships with
Taiwanese businesses operating in China.
5. Fubon Insurance: Main initiatives include increasing online
product line-up to promote sales of insurance over the Web;
using mobile technology to deliver speed and convenience to
customers; developing longer-period health and personal accident
insurance policies in line with eased restrictions on such products;
using reinsurance to limit the insurer’s loss from catastrophe;
encouraging corporate clients to install loss prevention measures
and introducing to them disaster recovery services to minimize the
disruption of operations and property loss.
6. Fubon Securities: Goals set out for the year ahead include
scaling up the wealth management business and developing the
next generation of financial advisors and wealth management
professionals; educating investors about the benefits of a recently
l iberal ized securities lending system, the brokerage ledger
account and less restrictive stock-based loans; capitalizing
on wealth management opportunities with the introduction
of overseas securities units; providing financial advisory and
strategic planning services for IPO prospects in high-potential
sectors of the economy; issuing warrants on popular underlying
stocks to meet investor demand; and increasing the transactions
of government and corporate bonds and raising exposure to
foreign investment products.
Looking ahead, Fubon Financial Holdings plans to build out its
presence across regions and globally as it embraces the Taiwan
government’s policy actions to foster regional champions. A strong
commitment to innovation and corporate citizenship will position
the company for continuing success in the future.
2015 Annual Report
12
1
5
2
6
3
7
4
8
2. Pen-Yuan Cheng Chairman Fubon Life
2. Steve T.H. Chen Chairman Fubon Insurance
1. Vivien Hsu President Fubon Financial Holdings
5. Samuel Hsu Chairman Fubon Securities
4. Jerry Harn President Taipei Fubon Bank
6. Howard Lin Vice Chairman Fubon Life
7. Raymond Lee Chief Executive Officer Fubon Bank (Hong Kong)
8. Dennis Chan President Fubon Bank (China)
2015 Annual Report
13
▲ The year 2016 starts off with a charity speed-walking event that encourages
healthy habits and exercise.
▲ Fubon Life continues to be recognized
with industry awards for leadership and
corporate sustainability.
▲ Three basketball camps held in 2015 help
over 400 disadvantaged children fulfill their
dreams of learning basketball skills.
Industry-leading Performance
In 2015, Fubon Life remained Taiwan’s most profitable life insurer for
a seventh straight year. It posted net profit of NT$41.018 billion, or
NT$7.16 per share, up 16%. First-year premiums reached NT$205.28
billion and total premiums increased 11.6% to NT$474 billion. The
insurer received several prestigious awards, including the National
Brand Yushan Award, which recognized Fubon Life, the only insurer
on the shortlist, for exceptional leadership. World Finance Insurance
named Fubon Life Company of the Year in Taiwan for a fourth straight
year. Thanks to its established reputation, Fubon Life was selected by
finance and insurance graduates for the fifth consecutive year as the
best company to work for. Additionally, it was honored with two Gold
awards at the 6th annual Insurance Excellence Awards and Best Agent
Force at the 4th Best Quality Awards of Insurance.
A Best-in-class Omnichannel Platform
Fubon Life continues to leverage the distribution capabilities of its
parent group to realize the full value of its sales force. In 2015, the
company launched its first offshore insurance unit to better serve
foreigners doing business or travelling in Taiwan. In its second year,
the Beyond the Border recruitment program resulted in the addition
of more than 40 service locations and increased the number of sales
representatives by more than 2,000, the largest sales expansion in
the industry. This program provides a channel for college graduates
to return to their hometown to pursue career with Fubon Life while
supporting growth of local communities.
By drawing upon the latest technology, Fubon Life has delivered the
promise of Insurance 3.0, allowing customers to apply for insurance
coverage or change their policies through a mobile app or at the
website. Fubon Life is now the largest life insurer that has deployed
Office 365, a Microsoft platform that enables a full range of cloud
Fubon Life
consultancy services. The company’s integration of digital and
physical channels has led to increased work efficiency, improved
responsiveness and higher customer satisfaction.
Commitment to Customer Service and Corporate Citizenship
Fubon Life’s products are aligned with changing demographic trends,
such as an increasing number of single people, lower birth rates and
rising life expectancy. Of particular note, its comprehensive range
of annuity plans, disability income insurance and health insurance
helps clients prepare for retirement and potential senior care costs.
Fubon Life also provides specialized plans for senior citizen, including
insurance policies that cover specific critical illnesses, accidental
injuries and chronic medical conditions, and long-term care insurance
that features monthly benefit to pay for caregivers. Looking into the
future, the company will continue to offer new products to fulfill its
role of providing financial security for individuals and their families.
During 2015, Fubon Life continued to support clients to minimize the
distress they face in time of crisis. Following a deadly explosion at
a local water park, the company promptly paid injury and hospital
confinement benefit to insured victims who suffered severe burns.
Fubon Life also extended micro-insurance programs to those who
cannot afford traditional insurance. A partnership with Ping An Life
Insurance of China expanded access to medical insurance coverage
and emergency assistance for clients travelling in China.
Fubon Life has a strong commitment to advancing social welfare.
Through activities from lectures on health and wellness, race
walking to charity basketball games, the company increases public
awareness of the importance of healthy lifestyles and exercise
habits. Fubon Life also brings its financial expertise, as well as
human resources, to address challenges faced by the communities.
2015 Annual Report
1414
▲ Taipei Fubon Bank is honored by
PMI-TW with 2015 Enterprise Project
Management Benchmarking Award.
▲ Ta ipe i Fubon Bank lead-manages a
US$500-million syndicated term loan for
China Steel Corporation.
▲ As part of the Bank 3.0 initiative, select
branches are remodeled and integrated
with digital technologies.
Taipei Fubon Bank
Riding Out Market Volatility
The year 2015 was marked by an uneven global economic recovery,
slowing growth in China and heightened volatility in the yuan.
Domestically, exports posted their worst performance since the
2008-09 crisis, and financial institutions faced mounting challenges.
Despite the headwinds, Taipei Fubon Bank’s institutional franchise
saw significant expansion in its SME client base, assets held by
overseas branches and market share in syndicated lending. The
bank’s retail banking business grew stronger, notably in wealth
management, mortgage and insurance, even though housing
activity weakened and risk-wary customers put off investment. A
balanced approach to risk and return enabled the bank to turn in
robust results with net profit of NT$17.78 billion.
Transforming Business for the Digital Future
Taipei Fubon Bank’s business strategies are guided by its vision
to establish a meaningful presence in Asia, and specifically, the
most comprehensive client relationship coverage across five
major financial hubs in Greater China. The bank spent the past
year expanding its presence in China via subsidiary Fubon Bank
(China) and preparing for entry into Singapore. In Taiwan, Taipei
Fubon Bank continued the rationalization of its branch network,
maintaining a market-leading distribution reach in metropolitan
Taipei while expanding selectively in central and southern Taiwan.
In the process of its branch realignment, the bank turned select
branches into smart banking locations that showcase its digital
capabilities and strengthen brand recognition.
Keen to keep up with the digital evolution and to support the
Taiwan government’s Bank 3.0 initiative, in 2015, Taipei Fubon
Bank offered 12 more banking services to be processed online.
The bank also continued building next-generation online and
mobile applications that appeal to today’s tech-savvy consumers
and meet their needs and lifestyles. Its goal is to reinvent itself as
an agile and responsive bank, one that harnesses technology to
provide customers with personalized services and enable them to
shift seamlessly between digital and branch channels.
As evidence of the bank’s success, Global Finance named Taipei
Fubon Bank Best Bank in Taiwan in its annual listing of the best
banks worldwide. Awards from Asiamoney, The Asset, IFR Asia
and FCI acknowledged the bank’s product strength and client
focus in institutional banking. The bank also received top rankings
in surveys conducted by leading f inancial media and trade
publications—among which were The Asian Banker, Euromoney,
The Banker and PWM—in the categories of private banking, wealth
management and client service.
Reaching Sustainability by Balancing Growth and Risk
Looking into 2016, risk control will be a primary goal as well
as challenge for Taipei Fubon Bank amid an uncertain global
outlook, China’s slowing growth, slumping oil prices and volatile
markets. The bank is stepping up efforts to improve management,
streamline processes, and upgrade its infrastructure so as to
drive greater efficiency, productivity and speed to market. In the
institutional banking segment, its priorities are to deepen existing
client relationships, enhance its corporate banking portfolios,
and increase exposure to foreign markets for improved return on
asset. As for retail banking, the bank aims to be the first choice
among consumers with a client-centric approach guiding all its
activities, including network rationalization. The bank will rigorously
maintain its focus on becoming a regional champion by leveraging
its extensive distribution capabilities in Greater China while driving
closer collaboration between business units.
1515
Fubon Bank (Hong Kong)
Prudent Management to Pursue Sustainable Growth
Despite the unfavourable operating environment in the second half
of 2015, Fubon Bank (Hong Kong) reported a net profit of HK$522
million for the year ended 31 December 2015. Excluding a provision
of HK$100 million made against a 2002 lawsuit, the Bank’s net profit
would be HK$622 million, representing a year-on-year increase of
29%, return on average equity increased from 5.18% to 5.86% when
compared with 2014, and return on average assets increased from
0.62% to 0.71%.
Fubon Bank (Hong Kong)’s core operating profit before provisions
for non-performing accounts and the one-off lawsuit posted an
exceptionally strong performance with year-on-year increase of
41%. Net interest income increased by 27% to HK$1,073 million,
mostly driven by the widening of net interest margin and further
aided by the growth in average interest-earning assets. Net interest
margin widened by 20 basis points to 1.40%. This was attributable
to a decrease in the Bank’s cost of funds as well as encouraging
improvement in the loan portfolio yield.
Insurance services income recorded an encouraging growth of
19%, underpinned by the Bank’s enriched product offerings and the
success of the new premium financing product. Securities brokerage
and investment services income also benefited from a more active
stock market and posted a 23% increase. Credit card business
continued its steady growth. After accounting for a revaluation loss on
the derivative financial instruments, non-interest income was reduced
to HK$431 million. The percentage of non-interest income to total
operating income was 28.6% in 2015.
Operating expenses increased by 14% to HK$1,027 million, including
a provision made for the above-mentioned lawsuit against the Bank.
Excluding this item, operating expenses increased only by 3%. Xiamen
Bank Co., Ltd posted solid performance and delivered satisfactory
results in 2015. The Bank’s share of profits from Xiamen Bank Co.,
Ltd recorded a year-on-year increase of 30% to HK$206 million. The
Bank’s capital and liquidity position remained strong. The total capital
ratio and Tier 1 capital ratio stood at 16.62% and 11.81% respectively
as at 31 December 2015. The average liquidity maintenance ratio also
stood at a comfortable level of 45.82% in 2015.
The Fubon Experience
During the year, further steps were taken to enhance the Bank’s retail
banking service channels with the launch of a new retail banking
strategy. The Bank’s first iBranch was launched in November 2015 by
refurbishing the Queen’s Road East Branch in Wanchai. Subsequently,
a second iBranch, also the 23rd branch of the Bank, was opened in
Western District in December 2015. Conveniently located in the city with
contemporary branch design and configuration, the iBranches feature
a wide range of digital banking facilities, including the Bank’s first full
service i-Teller (interactive teller machine), and also promote a paperless
concept. Advancement in the Bank’s e-banking platform, including the
launch of mobile banking, e-statement and e-cheque services, was
also made during the year to offer customers a comprehensive range of
digital banking services and enhanced customer experience.
Looking ahead, Fubon Bank (Hong Kong) will continue to attract
high quality customers in selected market segments with enhanced
services and delivery channels. The corporate banking customer
base will continue its expansion by enhancing the range of products
and services of the Bank, and through the strengthening of marketing
resources in line with the Bank’s corporate business strategy. The
Bank will continue to play an anchor role in the Fubon Group’s
Greater China development strategy.
▲ Advertising campaign carrying
the theme “Creat ing New
Banking Experience For You”
▲ With an aim of providing customers with new banking experiences,
iBranch features i-Teller and a wide range of digital banking
facilities, and also promotes a paperless concept.
▲ The opening of Fubon Bank
(Hong Kong)’s first iBranch—
Queen’s Road East Branch
2015 Annual Report
16
▲ A new sub-branch in Shanghai free-trade zone commences
operations in August 2015.
▲ Fubon Bank (China) inaugurates a state-of-the-art f lagship branch in Lujiazui,
Shanghai in April 2015.
▲ The 2015 Shanghai Financial Summit, organized
by Fubon Bank (China) in August 2015, facilitates
dialogue on economic cooperation in Greater China.
Fubon Bank (China)
In 2015, banks in China faced challenges ranging from an economic
slowdown, wild swings in the stock markets to heightened volatility
in rates due to a more liberalized financial regime. Guided by the
Fubon Group’s strategic goals, Fubon Bank (China) took significant
steps to invest in technology, strengthen risk management and
expand its reach and scale. The bank’s financial performance in
the past year demonstrated its widening lead over foreign-owned
peers, with total assets amounting to 73.64 billion yuan. Non-
performing loan ratio stayed low at 1.04%, loan-loss provision
coverage ratio improved to 265.11%, and net profit after provision
reached 390 million yuan.
Creating Foundation for Growth
In corporate banking, Fubon Bank (China) shifted its lending
focus to public infrastructure and strategic sectors in response to
heightened macro risks and the Chinese government’s One Belt,
One Road initiative. It also renewed efforts on trade finance, which
carries lower risk than other types of financing, and expanded its
client base. As for retail banking, its new debit card—the first ever
issued by a Taiwanese bank operating in China—enjoyed wide
popularity. Meanwhile, additional marketing and product teams
were created to meet rising demand for treasury management. As
further evidence of the depth of its financial and risk management
capabilities, Fubon Bank (China) was among the first foreign-
owned banks allowed to issue certificates of deposit in China. The
bank made fintech development a key priority in 2015, with the
launch of a digital branch and new offerings of mobile banking,
super Internet banking and third-party online payment enabled
by Alipay and UnionPay greatly increasing both the security and
ease of banking.
Fubon Bank (China) continues to build its footprint in China’s
fastest-growing coastal cities. A new sub-branch to be opened in
Kunshan makes Fubon Bank (China) the only Taiwanese-owned
bank with operations spanning the country’s four free-trade zones
in Shanghai, Shenzhen, Tianjin and Kunshan, bringing its network
to 22 locations. In the year ahead, Fubon Bank (China) will expand
into vibrant markets on the Yangtze River with new offices planned
in Chengdu and Wuhan. In addition, the bank is set to open a
branch in Beijing in the first half of 2016, another move that keeps it
one step ahead of Taiwanese competitors.
Connecting Taiwanese Businesses to Opportunities
Fubon Bank (China) formed a charitable foundation in July 2015
in support of low-income women and victims of disasters or
other emergency. Moreover, it strengthened thought leadership
by organizing the 2015 Shanghai Financial Summit, where
scholars and industry leaders exchanged ideas and discussed
ways to deepen economic cooperation in Greater China. In order
to support Taiwanese businesses for future growth and increase
their access to capital, the bank continues to improve products,
services and delivery channels including venture loans, capital
market services, co-branded cards, digital branches, foreign
currency solutions and direct-sold mutual funds. It looks to
provide private banking services at select locations in Shanghai
and a new branch being planned in Chengdu, pending the
issuance of a retail banking license to serve Chinese nationals.
As Fubon Bank (China) competes for a greater market share in
China, its top priority remains being nimble and innovative to
deliver a superior client experience.
1717
Navigating Market Volatility
Despite a challenging environment and severe catastrophic events
in 2015, Fubon Insurance maintained its leadership position for
the 34th consecutive year. Its written premiums amounted to
NT$30.44 billion for a market share of 22.5%, reflecting its success
in leveraging the marketing resources and distribution capabilities
of its parent group. The insurer’s prudent underwriting practices
and rigorous cost controls resulted in net profit of NT$3.21 billion,
or NT$10.1 per share, in line with investor expectations. The
earnings performance stands as a proof of Fubon Insurance’s solid
foundation on which it delivers sustained growth and safeguards
the interests of its policyholders.
Fubon Insurance’s client-first approach focuses on innovating
the customer experience to deliver speed, convenience and
value. During 2015, the insurer saw a higher share of insurance
policies applied online owing to its growing product line-up and
renewed marketing activity. It also added new features to its
mobile application to facilitate policy purchase, self-service for
policy changes and claims reporting. Meanwhile, it continued to
hold loss prevention education seminars aimed at strengthening
clients’ knowledge and awareness of catastrophic risk. Increased
risk preparedness, together with Fubon Insurance’s disaster
restoration and recovery services, can reduce the frequency
and severity of natural and manmade disasters, hence limiting
the economic, social and environmental impact for the affected
business and society.
Expanding Regional Presence
Fubon Property & Casualty Insurance, a mainland Chinese
subsidiary of Fubon Insurance, has 42 offices in cities of Xiamen,
▲ President Ben B.Y. Chen accepts the
Award for Excellence that recognizes
Fubon Insurance for its contribution to
the growth of micro-insurance.
▲ Chairman Steve T.H. Chen shares his
ideas and vision on how insurance can
help protect against unforeseen risks.
▲ A marathon fair raises people’s awareness
of micro-insurance in a fun, engaging way.
Chongqing, Liaoning and Dalian. Written premiums for 2015 were
RMB870 million, up 25.9% over the prior year. In Xiamen, where it
is headquartered, the company was ranked the 6th largest player.
Countrywide, its pace of growth topped those of its foreign peers,
sending its ranking in China’s 22 foreign-owned property and
casualty insurers to the 6th position. Fubon Property & Casualty
Insurance also achieved a high satisfaction score in a consumer
protection survey by the China Consumer Protection Foundation
and received top rankings in several auto insurance customer
satisfaction surveys on claim service quality.
Fubon Insurance (Vietnam) Co. Ltd., another subsidiary of Fubon
Insurance, was incorporated in 2008. It has head office in Ho
Chi Minh City and branches in Hanoi, Binh Duong and Dong Nai.
Written premiums for 2015 were 229.1 billion dong, up 20% over
the prior year. The expertise and experience shared by Fubon
Insurance, combined with in-depth insight into the Vietnam market,
enables Fubon Insurance (Vietnam) to deliver tailored solutions to
its clients. Throughout the years, the insurer has earned a strong
market position as well as trust from both Taiwanese-owned and
Vietnamese corporations for the extensive personal and property
protection it provides to companies, individuals and workers.
At the Forefront of Opportunities
Looking ahead, Fubon Insurance will stay at the forefront of
changing market trends while upholding its core values of integrity,
sincerity, professionalism and innovation. It will also reinforce its
commitment to protecting individuals, families and businesses
against losses through a comprehensive suite of insurance
offerings and by engaging clients in risk preparedness and risk
reduction activities.
Fubon Insurance
2015 Annual Report
18
Fubon Securities
▲ The Electronic Marketing team uses analy tics to enable targeted, data-
driven marketing.
▲ Fubon Secur i t ies and Fubon Asset Management receive three prestigious
awards at the 13th Golden Goblet Award.
▲ Fubon Securities is honored with several awards, inc lud ing Best Brokerage
Service, by Wealth magazine.
Entry into Wealth Management Business
Fubon Securities delivered strong performances across all its businesses
in 2015. It was one of the top three retail brokers with a 5.19% share. Re-
consigned trading of foreign securities was NT$119.3 billion, up 37%
year-over-year. Its number of issued warrants increased to 1,881 for a
6.9% market share. Trades made via mobile devices rose 22.9% year-
over-year, representing 33.5% of its total electronic trading volume. With
a leadership position in capital raising, Fubon Securities received four
prestigious awards from the Taiwan Stock Exchange, including the top
honors for the year’s largest IPO as well as the most IPOs, as measured
by the number of deals and the deals’ combined value. In its first foray
into wealth management, the company launched trust services and
ended 2015 with NT$12.7 billion in assets under management.
The asset-management arm Fubon Asset Management recorded
mutual fund assets of NT$98.8 billion at year-end 2015, up 18% year-
over-year. Including non-publicly offered funds and discretionary
mandates, its total client assets amounted to NT$124.2 billion. The
asset manager debuted in 2015 two ETFs tracking the Tokyo Stock
Price Index, the Fubon Topix Leveraged 2X Index ETF and the Fubon
Topix Inverse-1X Index ETF. To further expand its product line-up, it is
planning conventional, leveraged and inverse ETFs that track Indian
indices slated for launch in early 2016.
Award-winning Mobile Offerings
A pioneer in electronic trading, Fubon Securities continues to provide
innovative product offerings, including a stock market app for the
Apple Watch and an award-winning mobile assistant app. The Asset
has honored the company with Best Initiatives in Innovation, an
award that acknowledges its advanced in mobile trading solutions.
In addition, Fubon Securities has been named recipient of Best
Brokerage Service by Wealth magazine.
In Fubon Futures, its futures advisory business, which manages
the most client assets among peers, delivers superior performance
for its clients. The company received in 2015 the Futures Trading
Diamond Award from the Taiwan Futures Exchange recognizing
its distinguished contribution to the industry. During the same
year, Fubon Asset Management was honored for innovation
demonstrated in Fubon Shanghai Stock Exchange 180 Leveraged
2X Index ETF, the world’s first leveraged and inverse ETF that
tracks the Shanghai Stock Exchange 180 Index, at the 13th Golden
Goblet Award.
Top-tier Position in Greater China
Looking into 2016, Fubon Securities will focus on improving its
structure and capturing efficiencies in order to sustain profit
growth. It also will develop new strategies and reinvent its
business model to respond to new opportunities in digital and
mobile. Another strategic priority is to leverage its parent group’s
brand strength and market-leading positions in core markets
in its aim to be a top-tier investment bank. Meanwhile, Fubon
Asset Management looks to offer more China A-share funds, and
Fubon Investment Service, Fubon Securities’ equity research unit,
expects to expand the reach of its research insight by leveraging
U.S. partner Jefferies’ global distribution platform and client base.
Outside its home market, Fubon Securities has made significant
breakthroughs, most notably approvals from Taiwanese regulators
to acquire up to 40% of Huishang Futures and to raise a private
equity fund. It now looks to form a mainland securities joint
venture as soon as regulations allow. These new growth initiatives,
coupled with a full-service platform of stock and futures trading,
advisory and capital market services, position Fubon Securities
competitively to be a premier securities firm in Greater China.
19
Investment Management Group
▲ The acquisition of the London site of Madame Tussauds in 2015 marks Fubon Life’s third real estate investment in London.
▲ Inaugurated in 2015, a new office tower located on Dunhua S. Road graces the skyline of Taipei’s main business district.
Fubon Life & Fubon Insurance
Delivering Superior Investment Returns
The U.S. Fed ended a seven-year period of close to zero interest
rates in 2015, lif ting the cloud of uncertainty and prompting
investors to pull money out of emerging markets. The inclusion of
the yuan in the SDR basket kept the currency’s internationalization
on track and strengthened China’s commitment to a more flexible
exchange rate regime. However, growth fear spurred capital flight
and caused extreme volatility in the China and Hong Kong stock
markets. Elsewhere, investors grew anxious over provocations
in North Korea and conflicts in Middle East. Navigating the rise
in global market volatility, investment teams of Fubon Life and
Fubon Insurance identified opportunities and delivered strong
returns in 2015. Fubon Life saw its year-end balance of investible
funds increase 10% to NT$2.84 trillion, and return on investment
in the year set another all-time high of NT$130.3 billion. At Fubon
Insurance, assets grew at a steady rate with year-end balance of
investible funds arriving at NT$71.8 billion.
Opportunities and Challenges
In the year ahead, divergent monetary policy will continue to shake
global markets as the U.S tightens financial condition while Europe
and Japan expand monetary stimulus. A glut of crude oil is showing
no signs of easing after the sanctions on Iran and the U.S. oil
export ban were lifted, and slumping oil prices are increasing fiscal
pressures on oil-exporting nations. Geopolitical risks, in particular
rising tensions in the Middle East, will be another destabilizing factor
for global markets. Moves in the yuan should continue to affect short-
term market sentiment in Asia and worldwide. In the long term, the
13th Five Year Plan (2016–2020) is expected to help China move to
a more sustainable growth path with its vision to implement supply-
side reforms, encourage consumption and speed up urbanization.
All in all, markets in 2016 are likely to be driven by monetary and fiscal
policy actions, oil prices and China’s growth levels.
Amidst a backdrop of diverging monetary policy and moderate
economic growth, investment teams of Fubon Life and Fubon
Insurance will follow global events closely to determine the
opportune time to invest while being selective in the targets they
want to invest in. The portfolios will be invested primarily in global
and domestic fixed-income securities and stock with high dividend
and blue chips in order to strenghten the function of asset-liability
management. They will also seek high-quality real estate assets
and opportunities to invest in public infrastructure in order to
generate sustainable long-term returns.
Direct Investment
Unleashing Profit Potential
The group’s direct investment division identifies and secures
new business opportunities through joint venture or by investing
directly in high-potential companies in the healthcare, information
technology, cultural and creative, green energy, infrastructure and
financial industries. Its goal is to seize the opportunities that arise
from Taiwan’s ongoing transition to a knowledge-based, service-
driven economy.
The group ended the year 2015 with direct investment valued at
NT$7.543 billion, including NT$2.418 billion in healthcare; NT$1.803
billion in infrastructure; NT$1.398 billion in cultural and creative
industries and media channels; NT$454 million in f inancials;
NT$417 million in venture capital; NT$370 million in energy and
environmental engineering; NT$305 million in hospitality, food and
beverage; NT$308 million in IT and e-commerce; and NT$25 million
in sports and entertainment.
2015 Annual Report
20
Board of Directors
Chairman
Daniel M. Tsai Fubon Financial Holdings
Vice Chairman
Richard M. Tsai Fubon Financial Holdings
Independent Directors
Louis Cheung Managing Partner Boyu Capital
Ming-Je Tang Professor Department of International Business National Taiwan University
Jing-Sen Chang Executive & Independent Director Taipei Fubon Bank
Jin-Ji Chen Professor Department of Business Administration CTBC Financial Management College
Directors
Jain-Rong Su Commissioner Department of Finance Taipei City Government
Fang-Ling Yang Commissioner Department of Legal Affairs Taipei City Government
Hsiu-Chu Liang Commissioner Department of Budget, Accounting and Statistics Taipei City Government
Vivien Hsu President Fubon Financial Holdings
Pen-Yuan Cheng Chairman Fubon Life
Samuel Hsu Chairman Fubon Securities
Jerry Harn President Taipei Fubon Bank
Management Committee
Daniel M. Tsai Chairman Fubon Financial Holdings
Richard M. Tsai Vice Chairman Fubon Financial Holdings
Vivien Hsu President Fubon Financial Holdings
Pen-Yuan Cheng Chairman Fubon Life
Steve T.H. Chen Chairman Fubon Insurance
Jerry Harn President Taipei Fubon Bank
Samuel Hsu Chairman Fubon Securities
Howard Lin Vice Chairman Fubon Life
Raymond Lee Chief Executive Officer Fubon Bank (Hong Kong)
Dennis Chan President Fubon Bank (China)
(Information above as of end of February 2016)
2015 Annual Report
21
Dynamic Fubon, Creating a Common Good
Spreading Love—One Step at a Time
Fubon Financial Holdings acts as a “social catalyst,”
embracing corporate social responsibility. Through
ethical management practices and forward thinking,
we have emerged as a positive force in the financial
sector, committed to creating a common good.
Fubon Charity Foundation
Fubon Cultural and Educational Foundation
Fubon Art Foundation
Taipei Fubon Bank Charity Foundation
Shanghai Fubon Charity Foundation
2015 Annual Report
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▲ Pop singer Jay Chou is a spokesman for Making Friends with Love, a
tuition assistance program for disadvantaged students.
Fubon Charity Foundation
The first philanthropic arm of the Fubon Group, the Fubon Charity Foundation
serves as a vital platform for the group to fulfill its corporate citizenship goals.
Highlights of 2015 included:
“Making Friends with Love”: The initiative raised NT$113,109,000, helping
more than 15,709 students continue their studies.
“Exchanging Points for Love”: The initiative raised NT$1,597,100 in funds that
were donated to 13 charities.
“Emergency Relief”: Programs supported or coordinated by the foundation
included financial aid to individuals with emergency situations; a special fund
for medical emergency; a disaster recovery program for victims of the 921
earthquake; a micro-insurance program jointly funded by Fubon Life and Fubon
Insurance; tuition assistance for orphaned children of rescue workers who died
in the wake of Typhoon Morakot; Fubon Group employees’ donations to victims
of a deadly explosion at a local water park; and “1919 Go Exercise–Fubon
Emergency Household Relief Plan.” Funds of NT$26,930,389 were contributed
to support 14,255 individuals, families and groups.
“Make a Wish, Build a Future”: The campaign granted the wishes of 9,852
children from disadvantaged backgrounds.
“Fubon Social Welfare Ambassador”: The initiative supported 74 small to mid-
sized nonprofits that provide a wide range of social and community services.
“Joy of Giving Blood”: Employees of the Fubon Group mobilized to help with
the annual blood drive, with 4,024 units of blood collected. The blood drive was
honored by the Taiwan Blood Services Foundation for a seventh straight year.
“Fubon Volunteer Association”: 3,285 members contributed 15,818 hours of
service.
The Fubon Charity Foundation is committed to making a meaningful impact on
the communities it serves. In 2016 and beyond, it will remain at the forefront of
philanthropy, spreading love and care to where they are needed.
2015 Annual Report
23
▲ At the annual art festival Very Fun Park, artist Yu Wen-Fu covers the façade of an idle building with over 60,000
bamboo sticks.
▲ Fubon employees experience rice farming and learn about sustainable agriculture through Fubon EDU’s environmental day trips.
Fubon Art FoundationFubon Cultural & Educational Foundation
Established in 1997, the Fubon Art Foundation has a long-standing
commitment to sharing art with the community. Past and current
projects include Very Fun Park, Fubon Forum, Art Map and Fun Art
Radio. The foundation also develops corporate gifts for Fubon Financial
Holdings and its members using licensed images from aspiring artists,
underscoring its efforts to make art a part of everyday life.
In 2015, Very Fun Park celebrated its 10th anniversary by selecting
10 locations in eastern Taipei as creative hubs. Nearly 30 artists
invigorated neglected parts of the city with art installations, which
engage viewers in a visual and physical dialogue with space. The
project compiled its own virtual collection, the first of its kind in Asia,
by using Google’s online platform through which the public can
access images of the artists’ work.
In its 15th year, Fubon Forum provides the public an opportunity
for learning and enrichment with lectures on living an aesthetically
fulfilling life. To date, 772 speakers have shared their insights in
1,763 lectures and classes, attracting audiences of over 180,000.
The 36 public lectures and 28 fee-charging classes organized in
2015 featured, among others, Ichizawa Shinzaburo, president of
Ichizawa Shinzaburo Hanpu; Fumio Nanjo, director of the Mori Art
Museum; Teruo Kurosaki, founding director of Freedom University;
Masaaki Kanai, president of MUJI; and Colm Tóibín, a renowned Irish
writer. The prestigious list of guest speakers highlights a growing
international reputation of Fubon Forum.
In the year ahead, the Fubon Art Foundation will build a cloud
platform through which to display digital representations of its
art exhibitions. It also will continue with projects that help people
develop an appreciation of ar t and heighten their aesthetic
experience of everyday life.
The Fubon Cultural & Educational Foundation has guided teenagers
on their journey of life, helping them harness their potential and
develop a global mindset. In 2015, its efforts were focused on youth
education, parental-child communication, financial literacy and the
celebration of positive energy.
The foundation launched Rolling Film School, a series of film
appreciation classes at 15 senior high and vocational schools
to help students learn about films through screenings, lectures,
and a digital platform designed to support the teaching about the
film medium. The foundation looks to eventually make Rolling film
school an elective course in Taiwan’s secondary education.
Meanwhile, the Young Voice Workshop continued to empower
young people to find their voice, express their opinion on public
issues and showcase their talent. Let’s Talk about Media radio
show once again served as a vital platform for dialogue between
parents and chi ldren. A video channel that turns i ts radio
broadcasts into Internet programming has attracted over 4.5 million
viewers as of the end of 2015.
The Future Tycoon Outreach Program offered financial education
to more than 4,000 students at 35 primary schools in 2015. The
program also enlisted teachers to contribute their hands-on
experience to the development of teaching materials and organized
two workshops on personal finance.
Fubon EDU, yet another annual initiative, was developed to help Fubon
Group employees engage in sustainability. Highlights of 2015 included
support to farmers who adopt safe and sustainable practices, movie
screenings, lectures on the power of positive energy, and social media
campaigns—all with the goal of creating positive change for society.
2015 Annual Report
24
▲ Chairman Daniel M. Tsai offers words of encouragement to winners of the Artistic Achievement Awards for the
Disabled.
▲ Foundation staff members explain the benefit of broken bones insurance cover to an elderly beneficiary.
Shanghai Fubon Charity FoundationTaipei Fubon Bank Charity Foundation
In 2015, the Taipei Fubon Bank Charity Foundation added three adult
day care centers in Guangyuan and Litao villages and on the Orchid
Island of Taitung County to help seniors live happily and healthy in
a stimulating social environment. In celebration of the Double Ninth
Festival, the foundation held seven recreational activities for the elderly
to enjoy the company of their peers, and gave away hat-and-scarf gift
sets to help them stay warm during the winter months.
Moreover, the foundation was actively involved in increasing
awareness and advocacy of dementia. It circulated information packs,
put up posters at the branches of Taipei Fubon Bank, and placed
dementia testing forms and screening guidelines in the bank’s ATM
areas. It also developed wearable NFC wristbands to locate dementia
patients in partnership with Taiwan Mobile Network, an affiliate of the
Fubon Group, and the Federation for the Welfare of the Elderly.
With a commitment to supporting family caregivers, the foundation
provided a total of 250 support group events for caregivers of people
with dementia and respite events for those who care for family
members affected by disabilities, giving caregivers the chance to take
a breather, re-energize and connect with others.
The Artistic Achievement Awards for the Disabled entered its
seventh year in 2015, giving people with disabilities an opportunity
to showcase their musical and performance talent. The All Love
Orchestra, an ensemble composed of past award winners, continued
to tour around Taiwan, and their rousing performances brightened
up a wide variety of occasions from school graduations, awards
ceremonies, festive celebrations to adult day care events.
The Shanghai Fubon Charity Foundation was established
by Fubon Bank (China) on July 24, 2015, and is a private
foundation registered with the Shanghai Civil Affairs Bureau.
The foundation was created with a mission to support low-
income women and spread positive energy to where it is
needed. It has empowered numerous women by providing
them access to education, healthcare and emergency aid,
particularly the vulnerable individuals who are disengaged from
supports and services.
To date, the Shanghai Fubon Charity Foundation has focused its
charitable efforts on two programs: contributions to the families
of female fire personnel and the widows and orphaned children
of firefighters who died in the line of duty at massive explosions
at the Port of Tianjin in August 2015; and a partnership with
Fubon Insurance to offer broken bones insurance to insured
female seniors above 70 years of age. Starting off with 20 pilot
locations in Shanghai, the free insurance cover is being offered
across the city with an estimated 1,500 elderly people to benefit
per year.
The Shanghai Fubon Charity Foundation is following in the
footsteps of larger, long-established charities affiliated with
Fubon Financial Holdings as it focuses resources to address
local needs and give back to the community. Heading into 2016,
the foundation will remain committed to uniting people and
organizations to make a meaningful difference in the lives of low-
income women. It also will strive each day to earn public trust
and confidence that is critical to achieving its mission.
2015 Annual Report
25
Fubon traces its roots to 1961 when Fubon Insurance, formerly known
as Cathay Insurance, began operations as Taiwan’s first private P&C
insurance company. Since then, Fubon has grown into one of Taiwan’s
largest conglomerates with presence in most major sectors of the
domestic economy.
In 1985, Mr. Wan-Tsai Tsai, the late founder of the Fubon Group,
articulated three principles—integrity, diligence and modesty—to be
followed at both the personal and corporate level. He defined integrity
as the foundation for conducting oneself, diligence as the foundation for
building entrepreneurship, and modesty as the foundation for cultivating
one’s nature and dealing with people. Setting the example himself, Mr.
Tsai had encouraged every employee to put these principles into action.
Through integrity, diligence and modesty, the Group has laid the
building blocks of success. For Mr. Tsai, integrity is exhibited by being
trustworthy and using judgment and common sense in business
decision-making. A financial company must strive to act with integrity
as clients trust it to be a good steward of their assets. Without trust, a
business cannot succeed. A highly-valued traditional virtue, diligence
has been embedded in Fubon’s corporate culture and embraced by all
employees, whose dedication and hard work enables Fubon to build
leading positions in various markets. Modesty, in summary, is the quality
of being humble, unpretentious, and showing leniency to others but not
to oneself.
For more than half a century, Fubon has solidified its presence in Taiwan
while actively gaining a foothold in other Asian markets. Fubon Financial
Holdings is Taiwan’s second-largest financial holding company known
for its market-leading, comprehensive range of financial services. Its
subsidiaries rank among the top performers in their respective sectors.
In 2015, Fubon Financial Holdings again topped the industry with the
best profit performance and remained the most profitable financial
holding company for seven years in a row.
Looking ahead, Fubon will continue to uphold its three principles
and apply its four core values of integrity, sincerity, professionalism
and innovation to guide management decisions. These standards of
professional and ethical conduct create an obligation to develop the
business for the long term, act responsibly as a corporate citizen, and
bring positive energy to where it is needed. They also lay a strong
foundation for continuing success as Fubon Financial Holdings
advances its goal to become a first-class financial institution in Asia.
Fubon’s Three Principles: Integrity, Diligence, Modesty
2015 Annual Report
26
Wan-Tsai Tsai
Founder and Chairman,
Fubon Group
2015 Annual Report
27
Fubon Financial Holding Co., Ltd.Year of Founding: Dec. 2001Chairman: Daniel M. TsaiPresident: Vivien HsuCapital: NT$102.34 Billion237 Section 1 Jianguo S RoadTaipei TaiwanTe l : (8862) 6636-6636Fax: (8862) 6636-0111www.fubon.com
Fubon Life Insurance Co., Ltd.Year of Founding: July 1987Chairman: Pen-Yuan ChengPresident: Benson ChenCapital: NT$57.32 Billion108 Section 1 Dunhua S RoadTaipei TaiwanTe l : (8862) 8771-6699Fax: (8862) 8809-8889www.fubon.com
* Aetna Life Insurance Company of America, Taiwan Branch was established in 1987 and then bought by ING Group in 2000 and renamed ING Life Taiwan. The branch became an ING Life subsidiary in 2006, which was later bought by the Fubon Group. Fubon Life was launched in 1993. The two insurers formally merged in 2009.
Taipei Fubon Commercial BankCo., Ltd.Year of Founding: April 1969Chairman: Daniel M. TsaiPresident: Jerry HarnCapital: NT$98.04 Billion169 Section 4 Ren Ai RoadTaipei TaiwanTe l : (8862) 2771-6699Fax: (8862) 6606-9398www.fubon.com
Fubon Bank (Hong Kong) LimitedYear of Founding: Jan. 1970Chairman: Richard M. TsaiChief Executive Officer: Raymond LeeCapital: NT$20.61 Billion38 Des Voeux Road Central, Hong KongTe l : (852) 2842-6222Fax: (852) 2810-1483www.fubonbank.com.hk
Fubon Bank (China) Co., Ltd.Year of Founding: March 1997Chairman: Pei Li HongPresident: Dennis ChanCapital: RMB2.1 Billion1-3F, 5F, 18-20F, Oriental Financial Plaza Tower A, 1168 Century Avenue, Pudong, ShanghaiTe l : 86-21-2061 9888Fax: 86-21-5840 9900www.fubonchina.com
Fubon Insurance Co., Ltd.Year of Founding: April 1961Chairman: Steve T.H. ChenPresident: Ben B.Y. ChenCapital: NT$3.18 Billion237 Section 1 Jianguo S RoadTaipei TaiwanTe l : (8862) 2706-7890Fax: (8862) 2325-4723www.fubon.com
Fubon Securities Co., Ltd.Year of Founding: July 1988Chairman: Samuel HsuPresident: Leo ChengCapital: NT$16.64 Billion169 Section 4 Ren Ai RoadTaipei TaiwanTe l : (8862) 8771-6888Fax: (8862) 8771-6636www.fubon.com
Fubon Securities InvestmentServices Co., Ltd.Year of Founding: May 1987Chairman: Philip HuPresident: Charles HsiaoCapital: NT$300 Million108 Section 1 Dunhua S RoadTaipei TaiwanTe l : (8862) 2781-5995Fax: (8862) 2773-5601www.fubon.com
Fubon Futures Co., Ltd.Year of Founding: May 1998Chairman: Raymond YangPresident: Phoebe ChangCapital: NT$1 Billion9 Xiangyang Road Taipei TaiwanTe l : (8862) 2388-2626Fax: (8862) 2370-1110www.fubon.com
Fubon Asset Management Co., Ltd.Year of Founding: Sep. 1992Chairman: Gang ShyyPresident: Henry LinCapital: NT$1.92 Billion108 Section 1 Dunhua S RoadTaipei TaiwanTe l : (8862) 8771-6688Fax: (8862) 8771-6788www.fubon.com
Fubon Direct Marketing Co., Ltd.Year of Founding: Aug. 1997Chairman: Thomas LiangPresident: Alex YehCapital: NT$145 Million9 Xiangyang Road Taipei TaiwanTe l : (8862) 2370-5199Fax: (8862) 2370-5100www.fubon.com
Fubon Financial Holding Venture Capital Corp.Year of Founding: Oct. 2003Chairman: Richard M. TsaiPresident: Mike LinCapital: NT$2.73 Billion108 Section 1 Dunhua S RoadTaipei TaiwanTe l : (8862) 6606-9088Fax: (8862) 8771-4697www.fubon.com
Fubon Sports & Entertainment Co., Ltd.Year of Founding: Sep. 2007Chairman: Richard M. TsaiPresident: Chris TsaiCapital: NT$20 Million108 Section 1 Dunhua S Road Taipei TaiwanTel: (8862)6606-9088Fax: (8862)8771-4697www.fubon.com
Fubon AMC Co., Ltd.Year of Founding: Aug. 2004Chairman: Jerry Harn President: Philip ChaoCapital: NT$2.5 Billion50 Section 2 Zhongshan N RoadTaipei TaiwanTe l : (8862) 6618-0588Fax: (8862) 6608-0166www.fubon.com
(Information above as of end of February 2016)
2015 Annual Report
28
Fubon annual report is printed on heavy-metal-free paper and with eco-friendly soybean-based ink.
Copyright © 2016 Fubon Financial Holding Co., Ltd. All Rights Reserved. Printed in Taiwan 3/2016.
