Thank you for joining Fubon Financial's first quarter results briefing. We'll begin with an overview of the holding company's operating highlights, and then we'll go through the key subsidiaries.

Please turn to page 5. At holding company level, the board of director announced cash dividend per share of $4.25 in year '25, which is the cash payout ratio of 50.8%.

The company's net income reached over $33 billion, and EPS of $2.40 in first quarter '26. If we further include the FVOCI equity disposal gain and losses, the adjusted net income would be $66.35 billion, and adjusted EPS would be $4.74.

The total asset exceeded $13 trillion, that is up by over 8%, and the net worth exceed $1 trillion, that is up by 11.5% year over year. Looking at the major subsidiaries.

Firstly, the Fubon Life reported a net income of over $15 billion, or adjusted net income of over $47 billion. That is also a record high on the adjusted basis.

In the meantime, the foreign currency reserve balance, that $147.4 billion, that reached the highest level in the life industry. Next, the Taipei Fubon Bank, it delivered net income of over $12 billion, that is up by more than 20% year over year, which is another record high.

This is supported by its strong growth in both the net interest income and fee income. In Fubon Securities, its net income reached over $4 billion, and it was up by 154% year over year, and that's a beneficiary from the strong capital market in Taiwan.

In Fubon Insurance, its net income reached over $2.5 billion, or adjusted net income of $2.94 billion. We see the premium growth and the improvement in its net combined ratio.

Moving on to page 6. We can see the first quarter's net income and also the reported EPS of $2.40.

After we include the FVOCI's equity disposal gain and losses, the adjusted net income increased to over $66 billion, and adjusted EPS of $4.74, and both we can see reach a record high. We also see this adjusted basis of the net income, that would provide a more complete view of the financial performance and also the dividend-generating capacity under the new accounting framework.

In page 7, we can see the profit contribution from the major subsidiaries. All key subsidiaries reported a year-over-year growth.

Specifically, in Taipei Fubon Bank, Fubon Securities, Fubon Bank Hong Kong, and Fubon Bank China, each reached its record high net income, while the Fubon Insurance delivered the second-highest level in the first quarter on record. For Life, its adjusted net income reached a record high for the same period.

Moving on to the net income year to April, we can also see the holding company that reached a net profit of over $72 billion with the adjusted net income that increased to over $121 billion. This already exceed the full year's year '25's net income level.

From the major subsidiaries, again, all deliver year-over-year growth, while several business reached its record high for the same period. In Fubon Life, it continued to post a decent momentum with the first year premium reached over $57 billion.

We also see the rise in Taiwan, U.S. equity market contribute to its valuation mark-to-market increase and also the capital gains.

In Taipei Fubon Bank's first 4 months, the total revenue growth is 24% year over year, again driven by NII and fee income, that both grow at a double digit. In Fubon Insurance, written premium, it was up by 9%, while Fubon Securities also maintained a strong momentum with its brokerage and wealth management fee continue to grow.

In page 9, the total asset of the holding company reached over $13 trillion, that is up by more than 8%. While the net worth exceed $1 trillion by March, the adjusted net worth would exceed $1.3 trillion, that's including the after-tax CSM and translate into the adjusted book value per share at $90.6.

In page 10, in terms of profitability, the annualized ROA is 1.04% and ROE at 14%. While including the FVOCI equity disposal gain and losses, the adjusted ROA would increase to over 2% and ROE over 27% on annualized basis for Q1.

Before we moving on to the subsidiaries, also let us brief you the ESG's highlight in Q1. Firstly, Fubon Financial Holding received the highest level of award from the CDP.

It's also a top 5% globally in the insurance sector from S&P Sustainability Yearbook. In addition, several subsidiaries recognized in its stewardship disclosure and also its sustainable finance performance, that reflect the holding company's overall execution in governance, climate, risk management, green finance, and also the transparency.

We'll move on to the performance review of Fubon Life. Please turn to page 13.

Here we summarize Fubon Life's key operating metrics. On the business side, the first year premium and also the new business CSM both increase by double digit.

While on the earnings side, this is the first quarter disclosure under the IFRS 17's framework. The source of profit are mainly from the insurance service results and the financial results that both contribute the reported net income that reach over $15 billion.

Also we have the equity investment now mostly booked under the FVOCI, it's realized gains of $32.2 billion that contribute to the adjusted net income. From the net worth, it's over $630 billion, and including the after-tax CSM that have our adjusted net worth reach $961.9 billion.

In page 14, it shows the profit composition. As the first time we report the quarterly IFRS 17's results, we can see the insurance service result, $8.4 billion mainly from the CSM amortization and also the RA release.

Also from the financial results, it's $12.3 billion. That is from the recurring positive spread and also the investment gains.

The net income of $15.1 billion, while the adjusted net income reached $47.3 billion. Here, the annualized ROA will be 1.08% and ROE is 10.42%.

In page 15, let's turn to the premiums performance on its standalone basis. The first year premium reached 27.4% growth year over year, while the renewal premium and total premium both increased by double digit.

In the market ranking, Fubon Life is the second largest in terms of FYP, renewal premium, and also total premium among peers. In page 16, we break down the first year premium by product.

The strong capital market condition that support the sales of the participating and also the investment-linked, specifically a single-paid products. In addition, we also see the non-NTD policy contribution increased from 53% up to 62.3% this quarter.

That is mainly driven by the U.S. dollar participating policy.

It also gradually improved the currency matching between asset and liabilities. For the value metrics in page 17, firstly, regarding FYPE, it came down by about 5.3%, mainly because of the higher mix from the short-term payment product.

Even so, we can see FYPE to FYP ratio at over 36%, that is still well above the industry average. From the right-hand side, the new business CSM increased 29.4% year-on-year, although the CSM margin soften slightly as the share from the short-term payment product increase.

In page 18, it shows the channel mix. The internal ones that comes from Fubon Holding's subsidiary and that contribution is 84.8% of the FYP.

That mainly come from Taipei Fubon Bank, tied agent, and also subsidiaries across the board's corporation. The growth specifically strong in the tied agent that increased by 40% year over year, and also Taipei Fubon Bank channel that also grow over 52% year over year.

In page 19, if we look at the CSM movement. Firstly, the balance by end of March is $414.7 billion, which is up by $11.5 billion or 2.8% year to date.

The growth was mainly driven by the new business contribution. At the same time, the CSM release contribute to the underwriting profit, and we can see the quarterly release in Q1 is around 1.7%.

In page 20, this page summarize the investment portfolio. The total invested asset reached over $5 trillion at the end of March, while the total return is 6.46%, including the FVOCI gains.

The company also maintain a sufficient liquidity, while we continue to dynamically adjust the asset allocation according to the market condition. We can see the domestic equity performance was particularly strong, and also the investment returns outperform the market indices.

In page 21, we look specifically at overseas fixed income. The portfolio remained focused on the investment grade corporate credit and financial bonds.

By geography, the investments will be primarily in North America, and followed by Asia and other regions. While the overall mix remains stable.

In page 22, we can see the investment income composition, and specifically from the cancellation of the overlay approach in '26. In '26 Q1, the recurring investment income was $38.8 billion, while the total investment income is $44.9 billion.

That's before the FVOCI gain. After we include the FVOCI gains, the total investment income would up to $81.4 billion.

In page 23, this page focus on the FX management. As we have the new FX AC accounting and also the reserve mechanism, the foreign currencies volatility will be absorbed through the FX reserves, while the reserve balance reached over $147 billion now, that's will be the highest in the industry in March.

In the meantime, as we see the Taiwan and U.S. dollar monetary policy turning more neutral, the improvement trend in the swap cost may become more gradual.

While meanwhile, the Fubon Life will continue its management of hedging and currency exposure prudently. In page 24, regarding the spread, the cost of liability firstly improved year on year as we are under the IFRS 17's current rate basis.

The spread between the investment return and cost of liability, or the spread between the recurring return and cost of liability, we can see all are positive. The recurring return before hedging decline, that is due to the NT dollar's appreciation.

A lower hedging ratio reduced the swap cost and supported the recurring yield after hedge. While the total return, including the FVOCI equity disposal gain and losses, that increase year over year.

In page 25, it shows the movement in the FVOCI and the net worth. The FVOCI unrealized balance, it came down in Q1, mainly due to the capital gain realization as we capture the market opportunities.

While the net worth increased during Q1 is supported mainly by three factors. Firstly is lower fair value of the insurance contract liability as the Taiwan and U.S.

dollar risk-free rates that move higher. Secondly is the contribution from the Q1's earning.

Also thirdly, the changes in the FVOCI assets. Let's move on to Taipei Fubon Bank in page 27 and onwards.

In page 27, we can see the bank deliver a strong revenue growth in Q1, which is increase of over 23%, mainly supported by the net interest income growth of over 25%, and also the net fee income growth of over 27%. The increase in the net interest income reflected both the balance sheet expansion and also a higher net interest margin.

While the fee income was a broad-based growth across major business lines. In page 28, on the loan portfolio perspective, the total credit balance increased over 15% year on year.

Excluding the government lending, we can see both the corporate and retail credit deliver double-digit growth. While in page 29, the corporate business, the NT dollar loans is 13% growth, that also driven by the SME's credit, that's up by 14.4%.

The foreign currency loan grow even faster, that was up by 33%, and it also accounted for over 38% of the total corporate credit end of March. In page 30, in the retail side, firstly, the mortgage increased over 10% year over year, mainly driven by the home equity loans.

Other personal loans that has a very strong momentum of over 40% growth, supported by the unsecured consumer loans. Overall speaking, the bank continue to expand the retail credit while maintaining a disciplined risk management.

In page 31, on the deposit side, it remain a healthy growth momentum of over 12% growth rate, mainly driven by the NT dollar deposit that was up by 17.5%. While the foreign currency deposit up by 4%, mainly by a faster growth in demand deposit.

In page 32, we can see the improving trend in margin. In first quarter, the net interest margin was 1.27%, up by 3 bps quarter over quarter or 11 bps year over year.

A similar trend also deliver in loan-to-deposit spread, up by 8 bps quarter over quarter or 26 bps year on year. Which reflect the effective deposit and loan structures optimization, also a lower deposit cost.

In page 33, the asset quality remain very stable. The NPL ratio is 0.12%, stay a very benign level, while the coverage of over 1,000% that remain well above the market average.

By major product lines, we can also see a steady trend. The provisioning cost on the lower right-hand side chart, we can see mainly reflect a higher general provision, and the annualized credit cost is 29 basis points in Q1 '26.

In page 34, regarding the credit card business, the numbers of active cards is stable, while the spending increased 7%. Its asset quality also remains strong, with the NPL ratio of 0.17%.

In page 35, the fee income growth basically is broad-based, and the growth rate of 27.8%, while the wealth management grow even faster at 29.6%. It mainly supported by the sales of the mutual funds, the insurance, and also the equity and bond product.

In page 36, turning to the overseas operation, the deposit and loans are both increased at double digit, which is 18.6% for deposit and 23% for loans. The net revenue up by 9.7%, while the net income increase slightly lower at 3.7%, mainly reflect a higher general provision along with the loan growth.

Overall speaking, the overseas operation continue to expand while maintain a stable profitability. Next, let's move on to Fubon Securities in page 38.

Fubon Securities deliver a very strong quarter in Q1 '26. Its net income reached $4.23 billion, that is up by over 154%.

That is a record high and supported by the very strong trading volume and also the record index level in Taiwan. The company maintained a top-three market player in its major business lines.

Fubon Securities continue to focus on the wealth management transformation and also enhancing the digital services. Let's move on to Fubon Insurance.

In page 40, it summarize Fubon Insurance key metrics, including the market share of written premium of 27%. The net combined ratio improved to 87.2%.

Also, this is the first quarter report the IFRS 17's framework in Fubon Insurance. We can see its insurance service result was over $2.3 billion, and financial result was over $603 million.

Therefore, its net income reached $2.59 billion, while the adjusted net income would be $2.96 billion. While its capital remain at a decent level, with its net worth of $32 billion.

In page 41, Fubon Insurance direct written premium up by 10.5% and with leading top market share. Net combined ratio improved that reflect its effectiveness in the business mix optimization, and also its discipline in the risk management.

In page 43, let's move on to Fubon Bank China. Its balance sheet and also the profit both improved at a double-digit growth.

The loan balance increased 18.7% growth, and also the deposit up by 16.4% growth. The net interest margin improved by 23 basis points, that supported by the online retail lending and also a lower U.S.

dollar deposit cost. While the NIM, including swap, declined mainly due to a narrower U.S.

dollar and CNY's swap spread. Its net income increased 16.7% year over year, driven by a higher net interest income and also a lower provision.

While its asset quality remain stable. Here we conclude the presentation today.

If you would like to ask questions, please access Fubon's website and click Analyst Meeting webpage under the Investor Relations section. You may type in questions, and management team will respond in live audio meeting session.

Or alternatively, please feel free to contact us at [email protected]. Thank you for your attention.