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Last update:2018/07/18

Operations

Taiwan Financial Holdings
​​1.​ 2018 Business Plan

(1)Expand our global presence: Comply with the New Southbound Policy, build up an international business network

Comply with the government's New Southbound Policy; rely primarily on the Bank of Taiwan to implement strategies; methodically pursue a two-track approach based on the government's New Southbound Policy and its policy of developing Taiwan as a global financial center; actively apply to set up additional overseas business locations; cooperate with international financial institutions; develop international services.

(2)Business Development: Comply with government policy, provide financing to support industrial activity

Comply with government policies by promoting the financing of innovative industries, green energy, and infrastructure projects; focus on urban renewal and renovation of hazardous and dilapidated buildings, achieve residential justice; support the Long-term Care 2.0 Plan by promoting retirement trusts, long-term care insurance, disabled care insurance, and other products designed to meet the needs of senior citizens.

(3)Services innovation: Closely monitor FinTech trends, develop forward-looking financial services

​Stock up on FinTech patents; optimize functionality of mobile and online banking services; develop mobile payment services; develop forward-looking, value-added, user-friendly integrated digital financial services; step up implementation of information security management; provide customers with the best possible services.

(4)Legal Compliance: Bring operations in line with international rules; abide by statutory and self-regulatory requirements

Bring operations in line with international rules; continue improving coordination, cooperation, and exchange mechanisms pertaining to the three lines of defense in effective risk management and control; ensure effective implementation of internal controls and internal audits; oversee implementation by subsidiaries of AML/CFT-related internal control and reporting operations; carry out legal compliance education and training; abide by financial industry self-regulatory rules; build a positive corporate culture.

(5​)Bolster capital: Plan asset-backed capital increases, improve business development capacity

Set up diversified channels for bolstering the regulatory capital of subsidiaries; use state-owned real estate (originally owned by the BOT but later donated to the national treasury) to back a BOT capital increase; allocate budget funds for, and follow regular procedures in implementing, capital increase operations. The purpose of these undertakings is to strengthen BOT's business development capacity.

(6)Risk Management: Strengthen risk management, improve group's asset quality

Improve management of credit, market, operational, and legal risks; manage interested-party transactions, large exposures, and risk concentrations; improve tracking of early credit warning signs; carry out asset evaluations, credit reviews, and follow-up evaluations; institute a stronger mechanism for management of capital allocations; maintain an appropriate balance between risks and returns; ensure high asset quality.

(7)Talent Cultivation:Vigorously implement people-centered business management, cultivate personnel with diverse abilities

Respond to the need for universal banking and innovative development by practicing people-centered business management, strengthening personnel training, and carrying out the Young Management Development Program and the Training Program for International Financial Professionals; cultivate talent with mastery of a diverse range of core skills; bolster professional development; and enhance the group's growth potential.

(8)Social Responsibility:Maintain positive concern for social well-being, put financial expertise to work in support of community service

Incorporate the group's financial expertise into the design of credit cards, disaster relief loans, charitable trusts, and whole life insurance products in order to show positive concern for social well-being; promote the development of green finance; support cultural and creative industries, arts, culture, sports, environmental protection activities, and other community service activities; and continue carrying out financial and economic forums to promote academic exchange in the financial field.​​​
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2. Short-term and Long-term Business Development Plans

(1)Short-term business development plan

Establish a strong home base in Taiwan and strengthen our investment and financing businesses; make flexible use of an integrated marketing system, spur diversification of business at all TFH subsidiaries; seize business opportunities connected with government policies, spur groupwide profit growth; develop forward-looking financial services, provide customers with a high-quality service experience; maintain legal compliance, improve internal audit and internal control mechanisms; use state-owned real estate to back a capital increase, bolster capital, and ensure stable management; implement risk management, ensure high asset quality; train more effectively, cultivate employees with core skills; put financial expertise to work for community service, fulfill corporate social responsibility.

(2)​Long-term business development plan

Act in line with 5P (People-centered, Portfolio-sound, Performance-driven, Prospection-oriented and Principle-based) business operating policy and 5S (Scale, Scope, Soundness, Superior Management and Social Responsibility) competitive strategies, accurately identify trends and the direction of government policy; build a global business network and make skillful use of financial technology; work to achieve better operating results; create a solid capital base; implement risk management and legal compliance; seek sustainable and sound development of the group; build up TFH as the nation's flagship financial holding company.

3. Cross-Selling

(1)Cross-selling synergies

A. The group will continue integrating marketing resources to support achievement of the group's strategic goal of creating business synergies. The 2017 Plan for Integrated Marketing among Group Subsidiaries covered the six principal business lines of corporate finance & bulk collections, wealth management, life insurance, investment of life insurance funds, securities brokerage, and securities underwriting. We will make use of BOT's highly developed channel resources and huge client base to tap into the synergies of cross-selling. Quantifiable items sold via the cross-selling platform contributed NT$848 million to the Group's profits in 2017.

B. To coordinate with the FSC's decision to expand the range of securities products that can be cross-sold at a financial holding company's various business locations, the TFH Group obtained approval to begin opening securities margin trading accounts at BOT's cross-selling business counters from June 1, 2017. This will facilitate efforts to diversify business operations and earn greater returns through cross-selling of securities.

(2)Resource integration and cost reductions​​

​TFH continued to promote its groupwide shared operating platforms project; effectively integrated and used logistics resources; and used shared operating platforms for eight major shared business operations (information operations, education and training, legal affairs, property management, community service promotions, purchasing operations, financial and economic information exchange, and human resource exchange) to reap greater benefits from centralized management and professional specialization. Our logistics platform handled 3,511 cross-subsidiary operations in 2017, reducing measurable operating costs over the course of the year by NT$37 million, thus reducing operating costs by tapping into group synergies.​