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August 25, 2026 Financial Review 2026Q2 (Bloomberg: 2801 TT)
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Disclaimer This presentation is provided by Chang Hwa Commercial Bank, Ltd. (‘CHB’).The information contained within is not reviewed or reviewed by any accountant or any independent third party. Users should read this material in conjunction with all other public financial and operational information filed to the competent authorities by CHB. While we endeavor to provide accurate, complete and consistent information herein, CHB makes no guarantee or warranties as to the accuracy or correctness of all the material contained. After this presentation is released to the public, we undertake no obligation to update any relevant data to reflect any change hereafter. Users should also notice that this presentation may contain forward-looking statements. Statements that are not historical facts, including statements relating to the implementation of strategic initiatives, future business development and economic performance, are forward-looking statements. By their nature, forward-looking statements involve uncertainties, risks, assumptions and other factors that could cause actual developments and result to differ materially from our statement in this presentation. These factors include, but not limited to, regulatory developments, competitive conditions, technological developments, general economic conditions and management changes. The information, statements or opinions in this presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to buy any securities or financial instruments or any advice or recommendation respect to such securities or other financial instruments. CHB and its affiliates representatives, no matter for their negligence or any other reasons, should not be liable for any loss or damages arising from the use of or interpretation by others of information contained within this presentation or any matter related to this document. 2
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Economic Outlook 3 Middle East Uncertainty Persists; AI Remains the Key Growth Driver ● Uncertainty surrounding commodity supply and inflation continues to cloud the economic and interest rate outlook. ● Major central banks have adopted a more hawkish stance, with the Fed likely to remain on hold through year-end. ● Strong AI fundamentals remain intact, with continued capital expenditures by major tech companies supporting U.S. and global economic growth. ● The euro area faces slower growth due to its high dependence on external energy supplies. ● China's economy remains export-driven while domestic demand stays subdued; markets are watching for the scale of additional policy stimulus in the second half of the year. AI Fundamentals Remain Solid; Traditional Industries Benefit from the U.S.–Taiwan Tariff Agreement ● Robust AI demand continues to support growth across semiconductors, AI servers, and related supply chains. ● A recovery in U.S. and Chinese manufacturing, together with inventory replenishment and tariff policy adjustments, is expected to support the recovery of traditional industries. ● The housing market is entering a bottoming phase, with prices of existing homes softening, while pre-sale transactions remain sluggish pending further price concessions from developers. ● Ongoing geopolitical tensions in the Middle East may disrupt shipping routes and push up oil prices, posing risks to the petrochemical supply chain while supporting higher freight rates for the shipping industry. ● The NT dollar is expected to remain weak in the near term, while the medium- to long-term outlook will hinge on continued AI momentum.
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Sustainable Performance 4 ENVIRONMENT SOCIAL GOVERNANCE ● CDP Climate Change Leadership Level (3 Consecutive Years); 2025 Water Security & Forest Management Level ● FSC Sustainable Finance Evaluation Leadership Award (3 Consecutive Terms) ● Gold Award for Low-Carbon Commuting Excellence ● ESG Business Awards – Carbon Disclosure Award ● Taipei Climate Action Awards – Silver Award ● Net-Zero Lifestyle Excellence Award ● Commercial Times Green Net-Zero Finance Awards – Gold Award ● National Enterprise Environmental Protection Award – Silver Award ● BSI ESG Sustainability Award – Leadership Award (6 Consecutive Years) ● TSAA Sustainability Action Award (SDG 11 / SDG 13 Climate Action) ● MOEA – Outstanding Bank for SME & Microenterprise Development and Export Loan Programs ● Commercial Times – Taiwan Happy Enterprise Awards (Gold Award) ● 1111 Job Bank – Happy Enterprise Awards (Gold Award, Financial Services) & Family-Friendly Workplace Award ● Chang Hwa Bank Archery Team – Champion, 7th Chinese Corporate Archery League ● Ministry of Education – Sports Promoter Award (Bronze, Sponsorship Category) ● No. 1 Microinsurance Distributor (3 Consecutive Years) ● Taipei Workplace Gender Equality Awards (Bronze & Innovation Awards) ● FSC – No. 1 Outstanding SME Lending Bank ● FSC – Outstanding Bank for 20 Years of SME Lending ● Overseas Credit Guarantee Fund – Outstanding Excellence Award (2026) ● FSC – Outstanding SME Lending Program Award ● TAISE – Taiwan Sustainable Investment Awards 2026 (Gold Award – Sustainability Bond, Case Impact) ● Dow Jones Best-in-Class Indices – World (3 Consecutive Years); Emerging Markets (2 Consecutive Years) ● S&P Global Sustainability Yearbook – Top 5% (Four Consecutive Years) ● Taiwan Corporate Governance Evaluation – Top 5% (Five Consecutive Years) ● BSI ESG Sustainability Award – Leadership Award (Six Consecutive Years) ● CG6014 Corporate Governance Evaluation – Excellence Rating ● FSC Fair Customer Treatment Principles Evaluation – Top 25%
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Agenda 5 Operating Results Appendix Operational Highlights Financial Performance
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Operational Highlights (consolidated basis) 6 Profitability Core Business Asset Quality Capital Adequacy Ratio NPL ratio was 0.15%，-0.01% YoY Coverage ratio was 901.58%，+98.92% YoY BIS ratio was 13.99% Loans NT$2,141 bn,+7.17% YoY, Corp.+7.50% YoY，Personal +4.02% YoY， Overseas +26.30% YoY Deposits NT$2,756 bn,+6.39% YoY, NTD Deposit +8.95% YoY FX Deposit -1.74% YoY Net Income After Tax NT$11.31 bn,+23.93% YoY EPS NT$0.94，ROA 0.33%，ROE 5.03% *ROE and ROA are after-tax figures.
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Agenda 7 Operating Results Appendix Financial Performance Operational Highlights
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Asset Size and Net Worth 8 Asset Size (in NT$ bn) Net Worth (in NT$ bn) 2,685 2,901 3,173 3,377 3,311 3,535 2022 2023 2024 2025 2Q25 2Q26 169 188 201 220 202 230 2022 2023 2024 2025 2Q25 2Q26
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Financial Performance 9 Net Income After Tax (in NT$ mn) ROE(%) EPS After tax (in NT$) ROA(%) *ROE and ROA are after-tax figures. 1.04 1.20 1.33 1.51 0.78 0.94 0 1 2 2022 2023 2024 2025 6M25 6M26 6.44 7.27 7.68 8.43 4.53 5.03 2022 2023 2024 2025 6M25 6M26 0.42 0.46 0.49 0.54 0.28 0.33 0 1 2022 2023 2024 2025 6M25 6M26 10,971 12,982 14,945 17,775 9,129 11,314 0 5000 10000 15000 20000 2022 2023 2024 2025 6M25 6M26
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Comprehensive Income 10 (In NT$ mn ) 6M25 6M26 YoY(%) Net Revenue 22,534 25,829 14.62% Provision, Net 1,146 1,491 30.11% Operating Expense 10,407 11,225 7.86% Net Income Before tax 10,981 13,113 19.41% Income Tax Expense 1,852 1,799 -2.88% Net Income After tax 9,129 11,314 23.93% Other comprehensive income -2,890 7,472 358.54% Total comprehensive income 6,239 18,786 201.08%
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Net Revenue 11 6M26 Net Revenue BreakdownNet Revenue (in NT$ mn) 6M25 6M26 YoY 22,534 25,829 +14.62% 12,965 3,696 5,405 469 15,222 5,006 5,198 404 NII Net Fee Income Gain on Invest. Others 6M25 6M26 NII, 58.93% Net Fee Income, 19.38% Gain on Invest., 20.12% Others, 1.57%
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Net Fee Income 12 6M26 Net Fee Income BreakdownNet Fee Income (in NT$ mn) 6M25 6M26 YoY 3,696 5,006 +35.45% 2,738 713 242 3 3,926 773 238 69 Wealth Management Loan FX Others 6M25 6M26 Wealth Management 78.42% Loan 15.45% FX 4.75% Others 1.38%
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Agenda 13 Financial Performance Operating Results Appendix Operational Highlights
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1,702 1,784 295 357 6M25 6M26 NTD FX 1,997 Loan Breakdown by Currency 14 6M26 Loan Breakdown by CurrencyLoan Balance (in NT$ bn) *.Loan includes ordinary loans, advances (credit card), factoring A/R, exchange bills negotiated, and import / export bills negotiated, and excludes overdue loans. 2,141 FX YoY+21.03% NTD YoY+4.77% NTD, 83.33% FX, 16.67% Total YoY+7.17%
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Loan Breakdown by Customer 15 6M26 Loan Breakdown by CustomerLoan Balance (in NT$ bn) *.Loan includes ordinary loans, advances (credit card), factoring A/R, exchange bills negotiated, and import / export bills negotiated, and excludes overdue loans. 375 415 659 694 74 66171 2165 7 583 605 131 137 6M25 6M26 Large Corp. SME Gov.-linked Overseas Other Corp. Mortgage Other consumer Total YoY+7.17% Large Corp. YoY +10.84% SME YoY +5.25% Gov.-linked YoY -11.02% Overseas YoY +26.30% Mortgage YoY+3.82% 2,141 1,997 Large Corp., 19.41% SME, 32.42% Gov.-linked, 3.09% Overseas, 10.07% Other Corp., 0.34% Mortgage, 28.26% Other consumer, 6.41%
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Overseas Loan Breakdown by Regions 16 6M26 Overseas Loan Breakdown by RegionsOverseas Loan Balance (in NT$ bn) *.Loan includes ordinary loans, advances (credit card), factoring A/R, exchange bills negotiated, and import / export bills negotiated, and excludes overdue loans. 6M25 6M26 YoY 171 216 +26.30% 84 69 17 102 92 22 Europe and America Asia( China excluded) China 6M25 6M26 Europe and America, 47.30% Asia( China excluded), 42.44% China, 10.26%
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Overseas & OBU Performance 17 Overseas & OBU PPOP (in NT$ mn) 6M26 PPOP Breakdown Overseas & OBU PPOP proportion 4,656 2,145 2,655 5,726 3,537 2022 2023 2024 2025 6M26 28.4% 11.0% 12.4% 23.9% 24.2% 0.00% 25.00% 50.00% 2022 2023 2024 2025 6M26 Domestic, 75.78% OBU, 12.98% Overseas , 11.24%
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Deposit Breakdown by Currency 18 Deposit Balance (in NT$ bn) 6M26 Deposit Breakdown by Currency NTD Deposit Balance (in NT$ bn) FX Deposit Balance (in NT$ bn) 1,971 2,147 620 609 6M25 6M26 NTD FX 2,591 2,756 Total YoY +6.39% NTD, 77.91% FX, 22.09% 1,169 1,238 802 909 6M25 6M26 Demand deposit Time deposit 1,971 2,147 TD YoY +13.36% DD YoY +5.92% Total YoY +8.95% Total YoY -1.74% TD YoY-3.57% DD YoY+3.60% 159 165 461 444 6M25 6M26 Demand deposit Time deposit 620 609
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LDR 19 Total LDR NTD LDR FX LDR 73.93% 73.47% 73.99% 77.11% 77.45% 2022 2023 2024 2025 6M26 84.89% 85.40% 85.02% 85.34% 82.92% 2022 2023 2024 2025 6M26 43.29% 40.77% 41.78% 49.88% 58.19% 2022 2023 2024 2025 6M26
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Spread and NIM 20 *.IFRS and quarterly basis.*.IFRS and quarterly basis. Total Loan to Deposit Spread NTD Loan to Deposit Spread FX Loan to Deposit spreadNIM 2.71% 2.71% 2.71% 2.70% 2.69% 1.51% 1.49% 1.44% 1.39% 1.39% 1.20% 1.22% 1.27% 1.31% 1.30% 2Q25 3Q25 4Q25 1Q26 2Q26 Lending Rate Deposit Rate Spread 2.30% 2.31% 2.33% 2.33% 2.31% 1.08% 1.09% 1.09% 1.09% 1.08% 1.22% 1.22% 1.24% 1.24% 1.23% 2Q25 3Q25 4Q25 1Q26 2Q26 Lending Rate Deposit Rate Spread 0.87% 0.87% 0.92% 0.95% 0.95% 2Q25 3Q25 4Q25 1Q26 2Q26 NIM 5.08% 4.95% 4.76% 4.55% 4.55% 2.96% 2.86% 2.66% 2.45% 2.43% 2.12% 2.09% 2.10% 2.10% 2.12% 2Q25 3Q25 4Q25 1Q26 2Q26 Lending Rate Deposit Rate Spread
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Fed Funds Rate vs. CBC Discount Rate Trends 21 Fed Funds Rate VS. CBC Discount Rate 2022/3 0.50% 2022/5 1% 2022/6 1.75% 2022/7 2.50% 2022/9 3.25% 2022/11 4.00% 2022/12 4.50% 2023/1 4.75% 2023/3 5.00% 2023/6 5.25% 2023/7 5.50% 2024/9 5.00% 2024/11 4.75% 2024/12 4.50% 2025/09 4.25% 2025/10 4.00% 2025/12 3.75% 2022/3, 1.375% 2022/6 1.500% 2022/9 1.625% 2022/12 1.750% 2023/3 1.875% 2024/3 2.000% Fed Funds Rate CBC Discount Rate
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Cost-Income Ratio 22 Cost-Income RatioOperating Expense (in NT$ mn) 10,407 11,225 6M25 6M26 22,534 25,829 10,407 11,225 46.18% 43.46% 6M25 6M26 Net Revenue (in NT$ mn) Operation Expense (in NT$ mn) Cost-Income Ratio
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Loan Provision, Write-off and Recovery 23 Provision (in NT$ mn) Recovery (in NT$ mn) Write-Off (in NT$ mn) Reserve (in NT$ mn) 2,441 2,234 6M25 6M26 1,356 760 6M25 6M26 1,296 744 6M25 6M26 26,480 29,847 6M25 6M26
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NPL Ratio and Coverage Ratio 24 NPL Ratio Coverage Ratio 3,225 3,229 3,323 3,291 3,243 0.16% 0.16% 0.16% 0.16% 0.15% 2Q25 3Q25 4Q25 1Q26 2Q26 NPL Balance(in NT$ mn) NPL Ratio 25,884 26,904 27,812 28,459 29,242 802.66% 833.27% 836.89% 864.67% 901.58% 2Q25 3Q25 4Q25 1Q26 2Q26 Loan loss reserved(in NT$ mn) Coverage Ratio
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Asset Quality 25 Large Corp. Mortgage SME 162 116 86 72 58 0.03% 0.02% 0.02% 0.01% 0.01% 2Q25 3Q25 4Q25 1Q26 2Q26 NPL Balance(in NT$ mn) NPL Ratio 1,889 2,030 2,109 2,091 2,121 0.27% 0.28% 0.28% 0.28% 0.28% 2Q25 3Q25 4Q25 1Q26 2Q26 NPL Balance(in NT$ mn) NPL Ratio 629 595 550 608 564 0.13% 0.12% 0.11% 0.12% 0.11% 2Q25 3Q25 4Q25 1Q26 2Q26 NPL Balance(in NT$ mn) NPL Ratio
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Credit Rating & CAR 26 Credit Rating Capital Adequacy Ratio (%) Moody’s ( 2026/4,Review) ： － Long Term Rating：A2 － Short Term Rating：P-1 － Outlook：Stable S&P (2025/11,Review) ： － Long Term Rating：A － Short Term Rating：A-1 －Outlook：Stable 14.57 14.65 14.55 14.38 13.99 12.21 12.31 12.24 12.23 11.75 2Q25 3Q25 4Q25 1Q26 2Q26 BIS Tier 1
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2026 Operating Strategy 27 Dual-Wing Strategy Restructure．Spread．Fee．Synergy．Digitalize．Capital．Quality．Compliance Anchor Funding Deepen Client Partnerships Transform Growth Expand Trade & SME Finance Navigate by Data Maximize Customer Value Empower Wealth Elevate Wealth Management 2.0 Value Pricing Secure Robust Profitability Lead in ESG Drive Sustainable Finance Driving Sustainability through Capital Vitality and Mutual Prosperity
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Agenda 29 Financial Performance Appendix Operating Results Operational Highlights
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BALANCE SHEETS(Consolidated) 30
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STATEMENTS OF COMPREHENSIVE INCOME(Consolidated) 31