Fubon Financial : FHC Financial Statements(Consolidated) 2023 Q1

1

Stock Code:2881

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese)

FUBON FINANCIAL HOLDING CO., LTD.

AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Review Report

For the Three Months Ended March 31, 2023 and 2022

Address:	15-16F., No.179, Liaoning St., Taipei City
Telephone:	[phone]

The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.

2

Table of contents

		Contents		Page
1.	Cover Page	1
2.	Table of Contents	2
3.	Independent Auditors' Review Report	3
4.	Consolidated Balance Sheets	4
5.	Consolidated Statements of Comprehensive Income	5
6.	Consolidated Statements of Changes in Equity	6
7.	Consolidated Statements of Cash Flows	7
8.	Notes to the Consolidated Financial Statements
	(1)	Company history		8～11
	(2)	Approval date and procedures of the consolidated financial statements	11
	(3)	New standards, amendments and interpretations adopted		11～14
	(4)	Summary of significant accounting policies		14～18
	(5)	Significant accounting assumptions and judgments, and major sources		18～20
		of estimation uncertainty
	(6)	Explanation of significant accounts		20～430
	(7)	Related-party transactions		431～489
	(8)	Pledged assets		489～492
	(9)	Commitments and contingencies		492～495
	(10)	Losses Due to Major Disasters	496
	(11)	Subsequent Events		496～497
	(12)	Other		497～533
	(13)	Other disclosures
		(a) Information on significant transactions		534～548
		(b) Information on investment in Mainland China		549～550
		(c) Major shareholders	551
	(14)	Segment information		551～552

3

KPMG

110615	5 7 68 (	101	)	Tel	+ 886 2 8101 6666
68F., TAIPEI 101 TOWER, No. 7, Sec. 5,	Fax	+ 886 2 8101 6667
Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)	Web	kpmg.com/tw

Independent Auditors' Review Report

To the Board of Directors

Fubon Financial Holding Co., Ltd.:

Introduction

We have reviewed the accompanying consolidated balance sheets of Fubon Financial Holding Co., Ltd. and its subsidiaries as of March 31, 2023 and 2022, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2023 and 2022, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Financial Holding Companies and International Accounting Standard 34, "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" of the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Fubon Financial Holding Co., Ltd. and its subsidiaries as of March 31, 2023 and 2022, and their consolidated financial performance and their consolidated cash flows for the three months ended March 31, 2023 and 2022 in accordance with the Regulations Governing the Preparation of Financial Reports by Financial Holding Companies and International Accounting Standard 34, "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors' review report are LEE, FENG HUI and WU, LIN.

KPMG

Taipei, Taiwan (Republic of China)

April 27, 2023

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.

4

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Reviewed only, not audited in accordance with Standards on Auditing

FUBON FINANCIAL HOLDING CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2023, December 31 and March 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

	Assets		March 31, 2023					December 31, 2022	March 31, 2022		Liabilities and Equity		March 31, 2023	December 31, 2022	March 31, 2022
		Amount			%				Amount		%				Amount		%				Amount			%					Amount			%				Amount		%
11000	Cash and cash equivalents (notes 6(a))	$	226,605,917				2			316,596,903			3			258,226,283			2		Liabilities:
											21000	Deposits from the central bank and banks	$	147,393,414		1			149,533,515			1			190,020,406		2
11500	Due from the central bank and call loans to banks (notes 6(b) and 8)		405,003,298				4			415,990,658			4			394,744,628			4	21500	Due to the central bank and banks		2,222,151		-					922,135		-				11,894,074		-
12000	Financial assets measured at fair value through profit or loss (notes 6(c)		1,506,673,721				14			1,418,586,039			13			1,515,657,072			14	22000	Financial liabilities measured at fair value through profit or loss (note		65,132,202			1				87,590,556			1			91,996,865		1
	and 8)																										6(c))
12150	Financial assets measured at fair value through other comprehensive		691,255,996				7			961,531,664			9			1,115,669,426			11	22300	Financial liabilities for hedging (note 6(f))		13,872,448			-					12,922,639			-				9,742,675		-
	income (notes 6(d) and 8)																									22500	Securities sold under repurchase agreements (note 6(s))		86,792,457			1				145,685,557			1			164,909,587		2
12200	Debt investments measured at amortized cost (notes 6(e) and 8)		3,731,520,474			35		3,356,346,543			32			3,231,623,910			31	22600	Commercial papers issued, net (note 6(t))		61,133,990		1			50,243,977		1		32,946,486		-
12300	Financial assets for hedging (note 6(f))		16,223,929				-				19,304,960			-				6,688,536			-		23000	Payables (note 6(u))		149,615,542			1				171,470,259			2			160,745,305		2
12500	Securities purchased under resell agreements (note 6(g))		106,346,503				1			94,887,192			1			126,230,430			1	23200	Current tax liabilities		7,509,250			-					6,390,844			-				21,303,783		-
13000	Receivables, net (note 6(h))		242,158,990				2			243,228,598			2			252,454,394			3	23500	Deposits and remittances (note 6(v))		3,672,954,676			35				3,656,769,828			35			3,452,708,647		33
13200	Current tax assets		2,424,109			-				2,262,308		-				1,606,927			-		24000	Bonds payable (note 6(w))		263,590,565		2			257,381,535		2		261,026,101		2
13500	Discounts and loans, net (note 6(i))		2,555,299,154			24		2,586,477,476		24		2,557,380,290			24	24400	Other borrowings (notes 6(x) and 8)		21,268,809			-					13,696,500			-				1,984,249		-
13700	Reinsurance contract assets, net (note 6(j))		50,527,785			-				48,389,563		-				29,549,531			-		24600	Provisions (note 6(y))		4,690,937,510			44				4,710,169,640			45			4,577,184,522		43
15000	Investments accounted for using equity method, net (note 6(k))		57,521,680				1			57,812,659			1			45,283,905			-		25500	Other financial liabilities (notes 6(m) and (z))		603,754,358		6			612,042,078			6			609,723,072		6
15500	Other financial assets, net (notes 6(m) and 8)		507,510,686			5		520,064,178			5			535,162,513			5	26000	Lease liabilities (note 6(p))		21,023,974			-					21,792,236			-				21,687,452		-
18000	Investment property, net (notes 6(n) and 8)		308,387,538			3		305,826,478			3			304,991,193			3	29300	Deferred tax liabilities		30,132,047			-					32,848,412			-				19,774,146		-
18500	Property and equipment, net (notes 6(o) and 8)		65,324,631			1		65,272,146			1			65,115,891			1	29500	Other liabilities (note 6(aa))		70,096,275			1				84,687,792			1			55,591,913			1
18600	Right-of-use assets, net (note 6(p))		9,495,559				-				9,974,378			-				10,229,800			-			Total liabilities		9,907,429,668			93				10,014,147,503			95			9,683,239,283		92
19000	Intangible assets, net (note 6(q))		33,748,917				-				34,192,088			-				34,351,143			-			Equity attributable to owners of parent (note 6(ac)):
19300	Deferred tax assets		52,828,313				-				74,819,172			1			34,218,370			-			Share capital:
19500	Other assets, net (notes 6(r) and 8)		60,762,211			1		56,193,707			1			58,070,970			1	31101	Common stock		123,952,126			1				123,952,126			1			118,049,644		1
																										31103	Preferred stock		15,999,900			-					15,999,900			-				15,999,900			-
																											Total share capital		139,952,026			1				139,952,026			1			134,049,544			1
																										31500	Capital surplus		170,933,870			2				171,017,736			2			173,404,074		2
																											Retained earnings:
																										32001	Legal reserve		90,913,681			1				90,913,681			1			76,665,185		1
																										32003	Special reserve		30,311,999			-					30,311,999			-				29,125,366		-
																										32011	Undistributed earnings		373,521,891			4				359,918,631			3			419,504,008			4
																											Total retained earnings		494,747,571			5				481,144,311			4			525,294,559			5
																										32500	Total other equity interest		(92,519,265)	(1)		(226,423,522)	(2)	29,197,798		-
																											Total equity attributable to owners of parent		713,114,202			7				565,690,551			5			861,945,975			8
																										39500	Non-controlling interests (notes 6(l) and (ac))		9,075,541			-					7,918,656			-				32,069,954			-
																											Total equity		722,189,743			7				573,609,207			5			894,015,929			8
	Total assets	$	10,629,619,411				100			10,587,756,710			100			10,577,255,212			100		Total liabilities and equity	$	10,629,619,411			100				10,587,756,710			100			10,577,255,212		100

See accompanying notes to consolidated financial statements.