First Financial Holding Co., Ltd. (第一金控) 2025 Q1 Operating Report

Company Overview

• Company Name: First Financial Holding Co., Ltd.
• Event: KGI Securities Corporate Seminar (凱基證券企業座談會)
• Report Title: First Financial Holding 2025 Q1 Operating Report (第一金控2025年第一季營運報告)
• Date: August 6, 2025
• Location: Taipei (台北)

Financial Highlights and Key Metrics

Financial Highlights (Consolidated)

First Bank (Non-Consolidated)

Business Segments

Profit Mix for 1Q25 (after consolidation offset)

• Bank (銀行): NT$6,778 million (94.0%)
• Life Insurance (人壽): NT$345 million (4.8%)
• Securities (證券): NT$120 million (1.7%)
• Asset Management (投信 - FSITC): NT$43 million (0.6%)
• AMC (Asset Management Company): NT$49 million (0.7%)
• Others (其他): -NT$129 million (-1.8%)

Major Subsidiaries

• First Bank (第一銀行) - Flagship subsidiary
• First Securities (第一金證券)
• FSITC (第一金投信 - First Financial Securities Investment Trust Co., Ltd.)
• First Life (第一金人壽 - First Life Insurance Co., Ltd.)
• First AMC (第一金資產管理)

Recent Performance and Results (1Q25 vs. 1Q24)

First Financial Holding (Consolidated)

• Net Profit: NT$7.206 billion, up 2.7% YoY.
• EPS: NT$0.51, up 2.0% YoY.
• Comprehensive Income: NT$8.730 billion, down 20.0% YoY.
• Total Assets: NT$4,787.845 billion, up 5.3% YoY.
• Net Revenue: NT$18,275 million, down 2.4% YoY.
• Provision for Bad Debts: NT$(71) million, significantly down from NT$(1,166) million (93.9% decrease).
• Operating Expenses: NT$(8,217) million, up 7.1% YoY.
• Income Tax: NT$(1,681) million, up 19.1% YoY.

First Bank (Non-Consolidated)

• Net Profit: NT$6.778 billion, up 4.4% YoY.
• Net Interest Income: NT$7,119 million, up 2.1% YoY.
• Net Fee Income: NT$3,323 million, up 1.8% YoY.
  • Wealth Management Fee Income: Up 32.3% YoY.
  • Loan-Related Fee Income: Down 42.6% YoY.
• Financial Product Income: NT$4,897 million, up 8.8% YoY.
  • SWAP transaction income up 14.0% YoY.
• Bad Debt Expense (Net): NT$(68) million, significantly down from NT$(1,163) million (94.2% decrease).
• Operating Expenses: NT$7,072 million, up 7.8% YoY.
• Total Loans: NT$2,671.3 billion, up 7.2% YoY.
  • Mortgage Loans: NT$731.6 billion, up 13.2% YoY.
  • Large Corporate Loans: NT$342.8 billion, up 10.8% YoY.
  • SME Loans: NT$954.8 billion, up 2.9% YoY.
  • Foreign Currency Loans: NT$458.4 billion, up 9.6% YoY.
• Total Deposits: NT$3,746.1 billion, up 4.7% YoY.
  • NTD Deposits: NT$2,630.8 billion, up 1.2% YoY.
  • Foreign Currency Deposits: NT$1,115.3 billion, up 14.0% YoY.
• NTD Demand Deposit Ratio (活存比): 61.69% (1Q25), down from 62.75% (2024).
• NPL Ratio: 0.17% (stable).
• Coverage Ratio: 801.27% (up from 742.13% in 1Q24).

First Securities (Non-Consolidated)

• Net Income: NT$120 million, down 61.7% YoY.
• Total Operating Income: NT$542 million, down 31.3% YoY.
• Brokerage Commission: NT$391 million, down 15.9% YoY.
• Net Interest Income: NT$80 million, up 33.3% YoY.
• Underwriting Commission: NT$9 million, down 40.0% YoY.
• Transaction Gains through F/V, net: NT$22 million, down 89.8% YoY.
• ROAE (Annualized): 5.12%, down 63.6% YoY.
• ROAA (Annualized): 1.04%, down 65.3% YoY.
• Brokerage Market Share: 1.22%, down 5.4% YoY.

FSITC (Non-Consolidated)

• Net Income: NT$43 million, up 2.4% YoY.
• Total Operating Income: NT$203 million, up 4.1% YoY.
• Management Fee: NT$199 million, up 5.9% YoY.
• Sales Service Fee: NT$4 million, down 42.9% YoY.
• AUM (Assets Under Management): NT$146,715 million, up 16.6% YoY.
• AUM Ranking: 14 (stable).

First Life

• Net Income after tax: NT$345 million, up 385.9% YoY.
• Operating Revenue: NT$4,864 million, up 10.1% YoY.
• Premium Income: NT$3,869 million, up 4.1% YoY.
• Net Investment Income: NT$957 million, up 47.9% YoY.
• Profit/Loss Before Tax: NT$322 million, up 705.0% YoY.
• ROAE (Annualized): 22.44%, up 318.7% YoY.
• ROAA (Annualized): 1.44%, up 350.0% YoY.

Future Outlook and Guidance

• Proposed 2024 Dividend Distribution (subject to 2025 shareholders' meeting resolution):
  • Cash Dividend: NT$0.95 per share
  • Stock Dividend: NT$0.25 per share
  • Total Dividend: NT$1.20 per share
  • Cash Dividend Payout Ratio: 52.5% (for capital strengthening)

Strategic Initiatives and Plans

• Capital Strengthening: The proposed 2024 cash dividend payout ratio of 52.5% is set to facilitate capital strengthening.

Key Charts, Graphs, and Data Points

FFHC Consolidated Net Profit & Annualized ROAE Trend

• Accumulated Net Profit (NT$ mn):
  • 3M23: 6,630
  • 3M24: 7,015
  • 3M25: 7,206
• Annualized ROAE (%):
  • 3M23: 11.52%
  • 3M24: 11.04%
  • 3M25: 10.60%

First Bank Net Profit & Annualized ROAE Trend

• Accumulated Net Profit (NT$ mn):
  • 3M23: 6,320
  • 3M24: 6,493
  • 3M25: 6,778
• Annualized ROAE (%):
  • 3M23: 10.72%
  • 3M24: 10.04%
  • 3M25: 9.68%

First Bank Pre-tax Profit Structure (1Q25 vs 1Q24)

• Net Interest Income: 45.7% (1Q25) vs 44.7% (1Q24)
• Net Fee Income: 21.3% (1Q25) vs 20.9% (1Q24)
• Investment Income/Other Financial Products: 30.6% (1Q25) vs 27.3% (1Q24)
• Bad Debt Expense (Net): -0.4% (1Q25) vs -7.5% (1Q24)
• Operating Expenses: -45.4% (1Q25) vs -42.0% (1Q24)
• Pre-tax Profit: 54.2% (1Q25) vs 50.5% (1Q24)

First Bank Total Loan Structure (1Q25)

• Consumer Loans (消金放款): 31.3% (Mortgage 27.4%, Other Consumer 3.9%)
• Corporate Loans (法金放款): 68.7% (Large Corporate 12.8%, SME 35.8%, Foreign Currency 17.2%, Government & Public Sector 2.9%)

First Bank Loan Concentration by Specific Industries (1Q25)

• Manufacturing (製造業): 23.12%
  • Plastics & Chemicals (塑化): 4.11%
  • Metals (金屬): 5.28%
  • Electronics & Information (電子資訊): 5.01%
  • Machinery (機械): 3.78%
• Non-Manufacturing (非製造業): 76.88%
  • Construction (營造): 2.92%
  • Wholesale & Retail (批發零售): 9.57%
  • Real Estate (不動產): 11.32%
  • Transportation & Storage (運輸倉儲): 2.55%
  • Banking & Insurance (銀行及保險): 5.35%

First Bank Mortgage Loan Regional Breakdown (1Q25)

• Taipei, New Taipei, Keelung (北北基): 43.3%
• Taoyuan, Hsinchu, Miaoli (桃竹苗): 19.8%
• Taichung, Changhua, Nantou (中彰投): 12.8%
• Yunlin, Chiayi, Tainan (雲嘉南): 10.0%
• Kaohsiung, Pingtung (高屏): 11.1%
• Yilan, Hualien, Taitung (宜蘭花東): 3.0%

FFHC Group Capital Adequacy Ratio Trend

• 2H22: 125.16%
• 1H23: 128.09%
• 2H23: 130.05%
• 1H24: 122.45%
• 2H24: 126.05%
• 1Q25: 133.09%
• Statutory Capital Adequacy Ratio: 100%

First Bank Capital Adequacy Ratio & Tier 1 Capital Trend

• CAR:
  • 2H22: 13.76%
  • 1H23: 14.26%
  • 2H23: 14.56%
  • 1H24: 13.87%
  • 2H24: 14.45%
  • 1Q25: 15.30%
• Tier 1 Capital:
  • 2H22: 11.80%
  • 1H23: 12.32%
  • 2H23: 12.61%
  • 1H24: 11.96%
  • 2H24: 12.29%
  • 1Q25: 13.11%

Important Product Names, Terms, and Concepts

Products & Services

• Wealth Management (財富管理): Includes Fund Sales (基金銷售), Bank Insurance (銀行保險), and Custody (保管).
• Mortgage Loans (房屋貸款): A key part of consumer lending.
• Corporate Loans (法金放款): Includes Large Corporate Loans (大企業放款) and SME Loans (中小企業放款).
• Foreign Currency Loans (外幣放款): Loans denominated in foreign currencies.
• Credit Card (信用卡): Credit card services.
• SWAP Transaction Income (SWAP交易收入): Income from swap transactions.
• Brokerage Commission (經紀手續費): Fees from securities brokerage.
• Underwriting Commission (承銷手續費): Fees from securities underwriting.
• Transaction Gains through F/V, net (透過損益按公允價值衡量之金融資產損益淨額): Net gains/losses from financial assets measured at fair value through profit or loss.
• Management Fee (經理費): Fees for asset management services.
• Sales Service Fee (銷售服務費): Fees for sales services.

Financial Terminology

• After-tax Net Profit (稅後淨利): Net income after tax.
• Comprehensive Income (綜合損益): Total comprehensive income.
• EPS (每股盈餘): Earnings Per Share.
• Book Value Per Share (每股淨值): Shareholders' equity per share.
• Capital Stock (股本): Share capital.
• ROAE (淨值報酬率): Return on Average Equity.
• ROAA (資產報酬率): Return on Average Assets.
• Capital Adequacy Ratio (資本適足率 - CAR): Ratio of a bank's capital to its risk-weighted assets.
• Tier 1 Capital (第一類資本): Core capital.
• Double Leverage Ratio (雙重槓桿比率): Ratio of equity investment to shareholders' equity.
• Net Interest Income (淨利收): Income from interest-earning assets minus interest-bearing liabilities.
• Net Fee Income (淨手續費收益): Income from fees and commissions.
• Provision for Bad Debts (呆帳準備): Funds set aside for potential loan losses.
• Operating Expenses (營業費用): Expenses incurred in normal business operations.
• NPL Ratio (逾放比): Non-Performing Loan ratio.
• Coverage Ratio (覆蓋率): Loan loss provision to non-performing loans.
• Loan-to-Deposit Ratio (存放比): Ratio of total loans to total deposits.
• Interest Spread (存放利差): Difference between average lending and deposit rates.
• Net Interest Margin (淨利息收益率 - NIM): Net interest income as a percentage of interest-earning assets.
• Cost to Income Ratio (成本收益比): Operating expenses as a percentage of total income.
• AUM (資產管理規模): Assets Under Management.
• Cash Dividend Payout Ratio (現金股利派發率): Percentage of earnings paid out as cash dividends.

Geographic/Regional Terms

• OBU (Offshore Banking Unit): Offshore banking operations.
• Greater China (大中華): Refers to mainland China, Hong Kong, Macau, and Taiwan.
• North America (北美): North American region.
• ASEAN (東協): Association of Southeast Asian Nations.
• Domestic Market (國內市場): Taiwan market.
• Overseas Branches (海外分行): Branches located outside Taiwan.
• 北北基 (Taipei, New Taipei, Keelung): Northern Taiwan region.
• 桃竹苗 (Taoyuan, Hsinchu, Miaoli): Northwestern Taiwan region.
• 中彰投 (Taichung, Changhua, Nantou): Central Taiwan region.
• 雲嘉南 (Yunlin, Chiayi, Tainan): Southwestern Taiwan region.
• 高屏 (Kaohsiung, Pingtung): Southern Taiwan region.
• 宜蘭花東 (Yilan, Hualien, Taitung): Eastern Taiwan region.

Disclaimers and Footnotes

• "This presentation is provided by First Financial Holding and has not been reviewed by an accountant or any independent third party."
• "Users should refer to the financial and business information publicly disclosed by First Financial Holding to the competent authority for complete and accurate information."
• "We strive to ensure the accuracy, completeness, and precision of the content of this presentation, but First Financial Holding does not guarantee that all information is accurate and error-free. After the presentation is made public, we are not obligated to promptly revise the relevant content due to changes in circumstances."
• "Users should also note that this presentation may contain forward-looking statements. Any non-historical information, including the company's business strategies, operating plans, and future outlook, falls within the scope of forward-looking statements. Forward-looking statements inherently involve uncertainties, risks, assumptions, or other factors such as: regulatory changes, competitive environment, technological development, economic conditions, and operational changes, all of which may lead to significant differences between the company's actual operating results and the statements in this presentation."
• "The content, statements, or claims in this presentation are not an offer to buy or sell, or an invitation or recommendation to buy or sell any securities or financial products. First Financial Holding Group and its representatives, regardless of negligence or other reasons, shall not be liable for any damages arising from the use or citation of this presentation or any other damages caused by this presentation."

Footnotes

• 合併沖銷後之金額 (Amount after consolidation offset)
• 年化後數字 (Annualized figures)
• 雙重槓桿比率 = 股權投資/股東權益 (Double Leverage Ratio = Equity Investment / Shareholders' Equity)
• 總放款不含催收款 (Total loans exclude overdue loans)
• 中小企業放款依經濟部”中小企業認定標準” (SME loans based on MOEA "SME Recognition Standards")
• 其他包含其他消費性貸款及政府及公營事業放款 (Others include other consumer loans and government & public sector loans)
• 總放款 = 放款+進/出口買匯+催收款項 (Total loans = Loans + Import/Export Bills Purchased + Overdue Loans)
• 利差及淨利息收益率均為累積年度平均數 (Interest spread and NIM are accumulated annual average figures)
• 以上利率均為季度加權平均數字 (All rates are quarterly weighted average figures)
• 財富管理手續費收入 = 基金銷售+銀行保險+保管 (Wealth management fee income = Fund sales + Bank insurance + Custody)
• 分行(含海外分行)通路手續費 (Branch (including overseas branches) channel fee income)
• EPS is adjusted retroactively for stock dividends paid the next year.
• Non-consolidated basis.