Slides
Page 1
2026 First Half Financial Results August 2026
Page 2
2 Disclaimer This document is provided by Cathay Financial Holding Co., Ltd. (the "Company"). Except for the numbers and information included in the Company's financial statements, the information contained in this document has not been audited or reviewed by any accountant or independent expert. The Company makes no express or implied representations or warranties as to the fairness, accuracy, completeness, or correctness of such information or opinions. This document is provided as of the date herein and will not be updated to reflect any changes hereafter. The Company, its affiliates and their representatives and employees do not accept any responsibility or liability for any damage caused by their negligence or any other reasons, nor do they accept responsibility or liability for any loss or damages arising from the use of this document or the information contained herein or anything related to this document. Some figures have been rounded; accordingly, the sum of individual figures may not equal the total or 100%. This document may contain forward-looking statements, including but not limited to all statements that address activities, events or developments that the Company expects or anticipates to take place in the future based on the projections of the Company toward the future, and various factors and uncertainness beyond the Company's control. Therefore, the actual results may differ materially from those contained in the forward-looking statements. This document is not and cannot be construed as an offer to purchase or sell securities or other financial products or solicitation of an offer. This document may not be directly or indirectly reproduced, redistributed or forwarded to any other person and may not be published in whole or in part for any purpose.
Page 3
1H26 Business overview Business performance summary Cathay United Bank Cathay Life Cathay Century Cathay SITE Cathay Securities Appendix Agenda 3Note: Figures in the Cathay United Bank, Cathay Life, and Cathay Century sections are presented on a standalone basis.
Page 4
1H26 Business highlights 4 Cathay United Bank Cathay Life Cathay SITE Cathay Century Cathay Securities ⚫ Net income grew 15% YoY to a first-half record high. ⚫ Loans and deposits delivered strong growth. Net interest income increased 14% YoY . Asset quality remained sound. ⚫ Net fee income rose 11% YoY , driven by strong wealth management momentum. ⚫ New business CSM reached NT$53.9bn; CSM balance rose 6.9% YTD to NT$547.0bn. ⚫ Significantly lower liability interest cost at 2.13% vs. FY25, solid pre-hedging recurring yield of 3.47%, and stable hedging cost supported a positive spread. ⚫ Net worth reached a record high of NT$958.7bn, with equity-to-asset ratio at 11.8%, supported by strong equity markets and sound ALM. ⚫ Written premiums grew steadily, with market share at 13.2%. ⚫ Net income reached a first-half record high, supported by well-contained loss ratios; retained combined ratio declined YoY . ⚫ Listed Cathay’s first active ETF, 00400A, with AUM reaching NT$25.4bn. ⚫ AUM reached NT$3.6tn; mandate AUM totaled NT$1.7tn, ranking No.1 in the industry. ⚫ Recognized by The Asset as Taiwan Asset Management Company of the Year for the 8th consecutive year; ETF 00878 won Best Sustainability ETF for the second time. ⚫ Strengthened digital operating edge through data analytics to optimize customer experience; leveraged group synergies to expand customer base, supporting continued gains in domestic brokerage market share. ⚫ Expanded sub-brokerage product offerings and optimized platform functions, driving sustained growth in sub-brokerage trading value.
Page 5
1H26 Business highlights – Expanding sustainable finance impact 5 2026 Cathay Sustainable Finance and Climate Change Summit (10th year) Record-high participation Strong corporate representation 80%+ Taiwan market cap 850+ Listed companies 50%+ From 6 high- carbon sectors 5,800+ Registrations 2,000+ Institutions Gathering industry, government and academic experts to discuss Asia's sustainable transition 3rd consecutive year with companies representing 80%+ market cap and 50%+ GHG emissions Note: The six high-carbon sectors include petrochemicals, electronics, steel, cement, textiles, and pulp & paper.
Page 6
4.95 6.09 2.89 11.04 1H25 1H26 76.5 89.4 45.9 165.9 1H25 1H26 51.5 111.2 107.6 FY23 FY24 FY25 3.24 7.29 7.06 FY23 FY24 FY25 6 FVOCI equity disposal gains, net of tax Net income (NT$BN) (NT$) FVOCI equity disposal gains/share, net of tax EPS Note: R/E refers to retained earnings. Amount in R/E shown here represents net income plus after-tax FVOCI equity disposal gains; per-share figures are calculated on the same basis. 1H26 net income reached NT$76.5bn. Net income plus after-tax FVOCI equity disposal gains recognized in retained earnings totaled NT$165.9bn, surpassing the FY25 full-year level and setting a new all-time high. Core business momentum across subsidiaries remained robust. Cathay FHC – Net income & EPS Net income & amount in R/E* EPS & amount in R/E per share*
Page 7
23.4 19.0 1.9 1.3 1.8 27.0 46.2 2.4 1.7 4.4 CUB Cathay Life Cathay Century Cathay SITE Cathay Securities 10.9% 15.6% 5.7% 21.7% 56.3% 20.1%16.9% 16.3% 12.6% 21.1% 66.4% 44.7% Cathay FHC CUB Cathay Life Cathay Century Cathay SITE Cathay Securities 38.3 67.3 2.6 2.4 4.2 43.5 56.6 3.8 2.4 4.5 CUB Cathay Life Cathay Century Cathay SITE Cathay Securities 13.0% 13.3% 10.0% 16.0% 52.3% 24.1%11.7% 13.9% 7.7% 19.8% 46.1% 23.7% Cathay FHC CUB Cathay Life Cathay Century Cathay SITE Cathay Securities 7 Subsidiary net income ROE 1H25 1H26 FVOCI equity FY24 FY25FY24 FY25 1H25 1H26 CUB, Cathay Century, Cathay SITE and Cathay Securities delivered first-half record-high net income. Cathay Life’s net income plus after-tax FVOCI equity disposal gains surpassed the FY25 level and reached a new all-time high. Cathay FHC and major subsidiaries all delivered double-digit ROE. (NT$BN) Cathay FHC – Net income & ROE Note: Figures for net income plus after-tax FVOCI equity disposal gains are presented only for subsidiaries affected by IFRS 17 adoption, as the overlay approach no longer applies and certain financial assets were redesignated as FVOCI. 131.3 3.8 disposal gains, net of tax
Page 8
39.7 70.447.5 54.3 57.0 68.5 101.2 FY23 FY24 FY25 1/1/26 1H26 680.8 1,130.2 801.4 906.5 934.4 1,103.0 1,583.0 FY23 FY24 FY25 1/1/26 1H26 8 (1) (2) After-tax CSM Net worth (NT$BN) (NT$) Cathay FHC – Net worth & BVPS 1H26 net worth reached NT$1.1tn, setting a record high, supported by strong earnings and significant increases in OCI asset and liability valuations. Net worth & adjusted net worth BVPS & adjusted BVPS (1) (2) Note: (1) Net worth includes non-controlling interests and preferred shares; adjusted net worth is defined as net worth plus the after-tax CSM. (2) BVPS is calculated based on net worth attributable to common shareholders. After-tax CSM per share BVPS
Page 9
1H26 Business overview Business performance summary Cathay United Bank Cathay Life Cathay Century Cathay SITE Cathay Securities Appendix Agenda 9Note: Figures in the Cathay United Bank, Cathay Life, and Cathay Century sections are presented on a standalone basis.
Page 10
1,539.7 1,717.2 2,447.2 2,849.5 3,986.9 4,566.7 1H25 1H26 885.2 1,067.5 1,352.1 1,477.8 451.2 516.6 21.4 21.6 2,709.9 3,083.5 1H25 1H26 Cathay United Bank – Loan & deposit breakdown 10 Loan breakdown Deposit breakdown Loans grew 14% YoY ,with double-digit growth in corporate and consumer loans, while mortgage loans maintained steady growth. Deposits grew 15% YoY ,with demand deposit ratio rising to 62.4%. (NT$BN) (NT$BN)Credit card Mortgage Consumer Corporate Demand deposit Time deposit 0.7% 16.8% 47.9% 34.6% 0.8% 16.6% 49.9% 32.7% 14% 61.4% 38.6% 62.4% 37.6% 15%
Page 11
Cathay United Bank – Interest yield 11 Interest spread and NIM both expanded, driven by strong FX loan growth and a higher demand deposit ratio. Spread NIM Quarterly Note: Credit card-related loans are included in the calculation of interest spread. .5 . 2. 2. 2. 2. 2. .04 .0 .05 2. 2 2. 2. 2. 4 2. 2. 0 . 2 . . . . . . 5 . 0 . 2 . . 5 . . . . . .2 . .40 . . . .4 .50 .55 .55 .55 .5 .55 .55 .5 . 0. 0 0. 0 .2 . .4 .5 .5 .54 .52 .50 . . . .2 .20 . 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 1.91% 1.84% 1.73% 1.70% 1.75% 1.83% 1.86% 1.87% 1.85% 1.86% 1.89% 1.90% 1.91% 1.95% 1.40% 1.37% 1.36% 1.40% 1.46% 1.55% 1.61% 1.57% 1.55% 1.57% 1.54% 1.56% 1.59% 1.63%
Page 12
3.2 4.3 0.9 0.8 1H25 1H26 0.14% 0.14% 1200% 1100% 1H25 1H26 0.11% 0.15% 1445% 1060% FY24 FY25 9.8 8.5 1.2 1.6 FY24 FY25 Cathay United Bank – Credit quality 12 NPL & coverage ratio Gross provision & recovery Gross provision Recovery 0.16 % 0.19 %Mortgage NPL 0.11 % 0.19 %Mortgage NPL Asset quality remained sound, with NPL at 0.14% and coverage ratio at 1100%. NPL ratio Coverage ratio (NT$BN)
Page 13
217.3 214.6 281.9 314.7 378.3 FY22 FY23 FY24 FY25 1H26 304.2 324.0 335.2 361.8 376.6 FY22 FY23 FY24 FY25 1H26 Cathay United Bank – SME & FX loans 13 SME loans Foreign currency loans SME loans grew steadily, up 7% YoY . FX loans grew 34% YoY ,or 26% YoY excluding FX impact, driven by supply chain realignment and corporate overseas capex demand. (NT$BN) (NT$BN) As % of total loans 12.8% 12.8%14.5%15.3% 12.3% 10.8% 11.1%9.6%10.9% 12.4% Note: Total loans exclude credit card revolving balance. +7% YoY +34% YoY
Page 14
18.4% 16.7% 1H25 1H26 5.2 5.4 1H25 1H26 Cathay United Bank – Offshore earnings 14 Offshore earnings As % of CUB pre-tax profits (NT$BN) Offshore earnings grew 5% YoY , supported by growth in deposits, loans and investment income. 9.1 7.2 3.2 6.3 7.6 FY21 FY22 FY23 FY24 FY25 34.0% 23.4% 8.9% 13.8% 14.6% FY21 FY22 FY23 FY24 FY25 5%
Page 15
5.1 4.1 11.2 13.9 0.03 0.070.7 0.70.9 1.117.8 19.8 1H25 1H26 4.2 5.2 7.0 9.3 10.4 11.8 10.6 11.3 16.0 20.5 0.2 0.2 0.1 0.01 0.1 0.6 0.6 0.6 0.6 0.9 1.3 1.5 1.7 1.9 2.0 18.2 18.1 20.7 27.8 33.9 FY21 FY22 FY23 FY24 FY25 Cathay United Bank – Net fee income 15 Net fee income Annual net fee income Net fee income rose 11% YoY ,driven by strong wealth management momentum, with wealth management fees up 25% YoY. Others Credit card related FX Syndicated loans Wealth management 22% 34% 15% (NT$BN)(NT$BN) Others Credit card related FX Syndicated loans Wealth management 5.9% 2.6% 60.4% 30.8% 0.3% 7.3% 3.6% 64.9% 23.4% 0.9% 5.3%3.7% 62.5% 28.3% 0.2% 20.4% 0.4% 5.6% 3.4% 70.2% 11%
Page 16
3,051 692 312 6,990 4,884 1,201 368 7,325 Mutual Funds Securities & Structured products Trust & Custody Insurance 3,445 1,349 342 6,053 5,248 1,996 533 7,984 6,353 1,790 627 11,484 Mutual Funds Securities & Structured products Trust & Custody Insurance 16 Wealth management fees breakdown FY24 FY25FY231H25 1H26 (NT$MN) 1H25 1H26 FY23 FY24 FY25 Wealth management fee income 11,152 13,917 11,344 15,963 20,483 YoY growth (%) 34.4% 24.8% 7.1% 40.7% 28.3% WM fees rose 25% YoY , driven by strong sales momentum in mutual funds, securities & structured products, along with steady growth in insurance products. WM customers and AUM continued to grow steadily. Note: If income from selling treasury products (bonds, structured products, and foreign exchange) were included, 1H26 WM income would be NT$17.4bn. Cathay United Bank – Wealth management fees 60% 74%
Page 17
1H26 Business overview Business performance summary Cathay United Bank Cathay Life Cathay Century Cathay SITE Cathay Securities Appendix Agenda 17Note: Figures in the Cathay United Bank, Cathay Life, and Cathay Century sections are presented on a standalone basis.
Page 18
+3.8 +134.6 (33.0) +23.6 (86.4) 18.5 (14.9) 46.2 +85.1 131.2 1 2 3 4 5 6 7 8 9 10 Cathay Life – Earnings breakdown 18 Earnings breakdown 38.8BN22.2BN (NT$BN) Steady CSM release contributed to insurance service result, while positive recurring spread supported financial result. Net income reached NT$46.2bn. Net income plus after-tax FVOCI equity disposal gains recognized in retained earnings totaled NT$131.2bn, surpassing the FY25 level and setting a new all-time high. OthersCSM & RA release Recurring investment income Hedging cost Other investment income Net income (A) FVOCI equity disposal gains, net of tax (B) Amount in R/E (A) + (B) Other operating result, non- operating income, income tax Insurance finance expenses Insurance service result Financial result Note: R/E refers to retained earnings.
Page 19
13.5 16.9 13.8 2.6 1.8 1.1 7.1 5.7 6.1 2.3 4.6 16.1 1.9 2.0 2.1 27.4 30.9 39.3 1H24 1H25 1H26 18.0 40.3 24.3 2.7 2.4 2.5 7.1 5.7 6.1 22.8 45.0 160.3 1.9 2.0 2.1 52.4 95.3 195.4 1H24 1H25 1H26 Cathay Life – FYP & APE 19 First Year Premium Annualized FYP (APE) 55% 69% FX policies % (excl. Investment- linked) 76% Others Traditional life- Savings Health and accident Investment-linked & Interest sensitive annuity Traditional life- Protection Others Traditional life- Savings Health and accident Investment-linked & Interest sensitive annuity Traditional life- Protection (NT$BN) (NT$BN) FYP and APE rose 105% and 27%, respectively, driven by continued strong sales momentum in investment-linked products amid strong equity markets. FYP from high-CSM-contribution health and accident products increased YoY. Note: Annualized FYP (APE) = 10% x single-paid FYP + 20% x 2-yr-paid FYP + … + 50% x 5-yr-paid FYP + 100% x 6-yr and above payment term FYP 1.1% 82.1% 1.3% 12.4% 3.1%43.4% 13.5%5.1% 34.3% 3.7% 82% 105% 7.0% 8.5% 9.5% 49.2% 25.8% 5.3% 41.1% 2.7% 35.2% 15.7% 13% 27%
Page 20
76.3% 81.5% 0.3% 0.2% 20.5% 17.3% 2.9% 1.0% 1H25 1H26 73.6% 78.9% 0.9% 0.8% 20.8% 18.2% 4.7% 2.2% 1H25 1H26 Cathay Life – Distribution channels & persistency ratios 20 First Year Premium Annualized FYP (APE) Persistency ratios 1H25 1H26 13 months 97.6% 97.7% 25 months 95.5% 95.1% Telemarketing Bancassurance-CUB Others Premiums were mainly generated through Cathay Life tied agents and Cathay United Bank. The group’s strong distribution capabilities provided solid support to premiums and new business CSM. Persistency ratios remained high, exceeding 95%. Tied agents
Page 21
84% 4% 11% 1% Tied agents Tel marketing Bancassurance-CUB Others 53.9 75.0 1H26 FY26 59% 3% 31% 8% Health and Accident Traditional Life- Protection Traditional Life- Savings Cathay Life – New business CSM 21 New business CSM by channel New business CSM New business CSM by product Investment-linked & Interest sensitive annuity Traditional life-Protection Health and accident Traditional life-Savings (NT$BN) CSM margin 1H26 CSM/FYP* 64% CSM/APE* 208% New business CSM reached NT$53.9bn, with health and accident products contributing nearly 60% and nearly 90% generated through tied agents and telemarketing. FY26 Target Achievement rate: 72% Note: FYP and APE exclude PAA short-term products and IFRS 9 / IFRS 15 investment contracts (e.g., investment-linked variable annuities). Others Telemarketing Tied agents Bancassurance-CUB
Page 22
+53.9 +6.1 (8.9) +1.5 (17.4) 128.0 180.5 163.1 1 2 3 4 5 6 7 8 22 CSM movement (NT$BN) Cathay Life – CSM movement New business CSM CSM 1/1/26 Interest accretion Variances and others Exchange rate CSM before release CSM release CSM 6/30/26 CSM balance reached NT$547.0bn, up NT$35.1bn, or 6.9%, YTD, mainly driven by new business CSM. CSM release was NT$17.4bn, with an annualized release rate of approximately 6%, providing stable support to insurance service result. 547.0 564.4 511.9 +35.1BN | +6.9%
Page 23
3.0% 2.07% FY25 1H26 3.4% 2.13% FY25 1H26 23 Liability interest cost Break-even asset yield (Asset-based) Following IFRS 17 adoption in 2026, 1H26 liability interest cost and break-even asset yield declined significantly, reflecting market-based discount rates for insurance liabilities. Note: (1) Excludes interest expense from VFA investment-linked products and valuation impacts related to policyholder dividends on legacy policies subject to mandatory dividends. (2) Excludes one-off IFRS 15 adjustments. Cathay Life – Liability interest cost & break-even asset yield (1) (2) ~3.4% ~3.0%-127bps
Page 24
Cathay Life – Investment portfolio 24 (NT$BN) FY23 FY24 FY25 1H26 Total investments(1) 7,638.1 7,990.6 8,083.8 8,017.3 Weight Weight Weight Amount Return Weight Amount Return Cash & Cash equivalents 2.6% 1.9% 2.3% 187 2.3% 3.4% 273 2.0% Equity - Domestic 6.6% 7.2% 6.7% 544 16.1% 8.3% 669 39.0%(5) Equity - International (2) 5.6% 5.5% 5.2% 417 12.0% 5.5% 443 12.6%(5) Bond - Domestic (3) 8.1% 8.3% 9.1% 734 5.3% 9.3% 747 5.0% Bond - International (2) 61.8% 62.0% 61.5% 4,971 4.0% 59.7% 4,788 4.2% Mortgage & Secured loans 3.0% 2.9% 3.2% 255 2.0% 3.5% 282 2.1% Policy loans 2.2% 2.1% 2.1% 166 5.4% 0.1% 4(4) 3.7% Real estate 7.5% 7.5% 7.7% 622 3.9% 7.9% 634 4.1% Others 2.5% 2.6% 2.3% 189 1.2% 2.2% 177 2.0% Note: (1) Total investments exclude separate account assets. (2) Returns on international equities and international bonds are presented on a pre-hedging basis. (3) Includes TWD-denominated international bond ETFs. (4) Policy loans under investment contracts. (5) 1H26 equity investment returns include FVOCI equity disposal gains.
Page 25
3.27% 3.47% 5.55% 1H25 1H26 3.41% 3.47% 1H25 1H26 4.92% 3.73% 3.28% 3.74% 3.94% FY21 FY22 FY23 FY24 FY25 3.02% 3.37% 3.45% 3.43% 3.46% FY21 FY22 FY23 FY24 FY25 Cathay Life – Investment performance 25 After-hedging investment yield Pre-hedging recurring yield FVOCI equity disposal gains 1H26 after-hedging investment yield, including FVOCI equity disposal gains, reached 5.55%, reflecting capital gains realized amid strong equity markets. 1H26 pre-hedging recurring yield was 3.47%. Note: Pre-hedging recurring income excludes capital gains and includes interest income, cash dividends and rental income.
Page 26
36% 4% 60% Cathay Life – FX hedging strategy 26 FX volatility reserve FX asset hedging structure Hedging cost Proxy & open Currency swap & NDF FVOCI FX asset NT$5.54TN FX risk exposure 74% Reserve for FX policy 26% Note: Hedging cost is calculated based on FX assets. Proxy & open positions were mainly AC bond exposures. FX gains/losses volatility declined significantly following the new AC FX accounting treatment from 1M26. 1H26 hedging cost was 1.21%; FX volatility reserve increased by NT$17.1bn YTD to NT$130.9bn. (NT$BN) 0.96% 1.56% 1.45% 1.57% 1.21% FY23 FY24 1H25 FY25 1H26 38.6 56.4 55.8 113.8 123.9 130.9 1Q25 1H25 9M25 FY25 1Q26 1H26
Page 27
5.1 7.7 19.7 16.8 18.7 12.7 FY23 FY24 FY25 7M26 52% 52% 53% 53% 18% 18% 18% 17% 29% 30% 30% 30% FY23 FY24 FY25 1H26 Cathay Life – Cash dividend income & overseas bond by region 27 Cash dividend income Overseas bond by region Asia Pacific & Others Europe North America (NT$BN) 7M26 cash dividend income totaled NT$12.7bn, while equity positions were adjusted to realize capital gains amid strong equity markets. Diversified overseas fixed-income investments across regions to balance risk and return. July 2026 1H26
Page 28
+9.5 -16.2 328.1 FY24 FY25 1H26 504.5 958.7 409.5 437.6 618.4 704.5 749.0 914.0 1,396.3 FY23 FY24 FY25 1/1/26 1H26 Cathay Life – Net worth & OCI asset/liability valuation changes 28 Net worth & adjusted net worth OCI asset/liability valuation changes (NT$BN)After-tax CSM Net worth Asset valuation changes Liability valuation changes 1H26 net worth reached a record high of NT$958.7bn, up NT$454.2bn YTD, supported by earnings contribution, equity disposal gains and OCI asset/liability valuation gains. OCI asset/liability valuations increased by NT$328.1bn YTD, mainly reflecting higher asset valuations amid strong equity markets and liability valuation gains from rising Taiwan interest rates. E/A ratio and adjusted E/A ratio reached 11.8% and 17.1%, respectively, indicating a strong capital position. (NT$BN) +178.7 +149.3
Page 29
Cathay Life – Key operating & financial metrics 29 Business performance Insurance service result 22.2BN FYP 195.4BN (+105% YoY) Financial result 38.8BN Net income/ Amount in R/E* 46.2BN / 131.2BN Net worth 958.7BN (+454BN YTD) Adjusted net worth 1,396.3BN (+482BN YTD) E/A ratio/ Adjusted E/A ratio 11.8% / 17.1% New business CSM 53.9BN CSM balance 547.0BN (+35.1BN YTD) Recurring yield 3.47% Liability interest cost 2.13% Hedging cost 1.21% Spread & investment yield Financial performance Net worth (NT$) Note: R/E refers to retained earnings. Amount in R/E shown here represents net income plus after-tax FVOCI equity disposal gains.
Page 30
1H26 Business overview Business performance summary Cathay United Bank Cathay Life Cathay Century Cathay SITE Cathay Securities Appendix Agenda 30Note: Figures in the Cathay United Bank, Cathay Life, and Cathay Century sections are presented on a standalone basis.
Page 31
47.7% 49.2% 52.0% 50.7% 0.2% 0.1% 1H25 1H26 9.9 10.3 3.7 4.1 0.9 1.0 6.0 5.8 20.6 21.3 1H25 1H26 31 Written premium Distribution channels Engineering & Others Fire Marine Auto Affiliate channels Cathay group channel Cathay P&C agents (NT$BN) Written premiums grew steadily, with market share at 13.2%, ranking No. 2 in the industry. Benefiting from strong group cross-selling synergies, nearly 50% of premiums were generated through group channels. Cathay Century – Written premium & distribution channels 13.2%13.5%Market share 29.1% 4.4% 48.3% 18.1% 19.4% 27.3% 4.9% 48.4% 4%
Page 32
89.6% 87.2% 1H25 1H26 Cathay Century – Combined ratios 32 Combined ratio Retained combined ratio Retained combined ratio improved YoY as expanded underwriting capacity drove higher insurance revenue, while loss ratios remained stable. 82.3% 61.2% 1H25 1H26
Page 33
Cathay SITE – Business overview 33 Fund business growth Net income & ROE AUM growth Solid AUM growth drove net income to a record high, up 27% YoY; ROE remained strong. Fund AUM and beneficiaries continued to grow. 1.31 1.65 1.56 1.77 2.44 2.39 1H25 1H26 FY22 FY23 FY24 FY25 Net income (NT$BN) ROE 56.3% 66.4% 41.7% 43.4% 52.3%46.1% 27% 1.2 1.6 2.2 2.4 3.6 FY22 FY23 FY24 FY25 1H26 (NT$TN) 0.6 0.9 1.4 1.5 1.9 1.8 2.2 3.0 3.1 3.3 -0.3 0.2 0.7 1.2 1.7 2.2 2.7 3.2 3.7 0.0 0.5 1.0 1.5 2.0 2.5 FY22 FY23 FY24 FY25 1H26 Fund AUM(NT$TN) Beneficiaries(MN)
Page 34
Cathay Securities – Business overview 34 Sub-brokerage trading value Net income & ROE Domestic brokerage market share 1.78 4.41 1.41 2.11 4.18 4.50 1H25 1H26 FY22 FY23 FY24 FY25 20.1% 44.7% 10.8% 14.9%24.1%23.7% Net income (NT$BN) ROE Net income reached a first-half record high, up 148% YoY , amid active trading in Taiwan equity markets. Domestic brokerage market share continued to grow, while sub-brokerage trading value maintained solid growth. 0.94 1.98 0.94 0.89 1.61 2.27 1H25 1H26 FY22 FY23 FY24 FY25 (NT$TN) 3.79% 3.95% 4.17% 4.41% 4.63% FY22 FY23 FY24 FY25 1H26148%
Page 35
1H26 Business overview Business performance summary Cathay United Bank Cathay Life Cathay Century Cathay SITE Cathay Securities Appendix Agenda 35
Page 36
93.7 105.8 104.6 29.3 30.2 30.0 59.8 64.0 67.9 29.9 52.0 167.2 3.3 3.2 3.3 216.1 255.2 373.1 1H24 1H25 1H26 188.3 201.1 200.1 59.0 61.8 64.0 114.9 123.6 130.4 96.3 94.1 117.8 7.0 7.0 6.9 465.6 487.6 519.2 FY23 FY24 FY25 Cathay Life – Total premium 36 Total premium Annual total premium Total premium grew 46% YoY , driven by continued strong momentum in investment-linked products and steady growth in protection-type products. Others Traditional life- Savings Health and accident Investment-linked & Interest sensitive annuity Traditional life- Protection Others Traditional life- Savings Health and accident Investment-linked & Interest sensitive annuity Traditional life- Protection (NT$BN) (NT$BN) Note: Protection-type products include “Traditional life-Protection” and “Health and accident”. 1.5% 20.7% 12.7% 40.4% 24.7% 1.3% 22.7% 12.3% 38.5% 25.1% 21.3% 19.8%20.0%17.7% 22.9%19.4%Market share 1.5% 13.8% 13.6% 43.4% 27.7% 0.9% 44.8% 8.0% 28.0% 18.2% 18% 46%
Page 37
Cathay Life – Overseas bond breakdown by currency and rating 37 Overseas bond by currency (1H26) Overseas bond by rating (1H26) Fully hedged to USD USD, 95% CNH, 0.2% AUD, 3% Euro, 1% GBP, 0.5% Others, 0.4% IG, 99.5% Non-IG, 0.5%
Page 38
38 Cathay Life – IFRS 17 transition highlights Lower liability costs support a stable positive spread IFRS 4 IFRS 17 ~3.4% 2.2–2.3% One-off equity impact; adjusted equity (incl. after-tax CSM) exceeds IFRS 4 equity Growing CSM(2) release supports future earnings 504.5 749.0 914.0 IFRS 4 IFRS 17 After-tax CSM IFRS 4 Effective COL IFRS 17 (1) Insurance finance expenses (Asset-based) CSM balance 511.9 2026/1/12025/12/31 2026 2027 2028 2029 2030 34 (NT$BN) ~3.0% 2.2% IFRS 4 2026 IFRS 17 2027 2028 2029 Break-even asset yield (3) Increasing CSM release helps stabilize break-even asset yield Note: (1) Remeasured at market interest rate in 2026; (2) Assume annual new business CSM of NT$75bn for 2026 –2030, with interest rate and actuarial assumptions unchanged; (3) Excluding one-off adjustment related to IFRS 15. Equity (NT$BN)
Page 39
39 Key balance sheet changes at transition Insurance liabilities are measured using market-based discount rates. Future profits from insurance contracts are recognized as CSM within liabilities, amounting to NT$511.9bn, and are released to P&L over the coverage period. Changes in assets mainly reflect financial asset redesignation and the reclassification of policy loans into insurance liabilities. Assets Liabilities 8,990.9 8,726.0 IFRS 9 & IFRS 4 IFRS 9 & IFRS 17 6,966.1 6,582.0 62.6 511.9 8,241.9 8,221.5 IFRS 4 IFRS 17 Insurance liabilities BEL RA CSM Others (NT$BN) (NT$BN) Note: (1) As of 2025/12/31; (2) 2026/1/1 BEL (Best Estimate Liability): Present value of future fulfillment cash flows, based on current market interest rates and current estimates. RA (Risk Adjustment): Compensation for bearing uncertainty arising from non-financial risks in insurance contracts. (2) (1) (2)IFRS 9 (overlay) & IFRS 4 (1)
Page 40
63% 41% 40% 12% 40% 41% 0.2% 10% 7%23% 2% 9% 12% 40 Financial asset redesignation to align with liabilities & ALM Financial asset redesignation Financialassetswere redesignatedto alignwith liabilities,consideringNTD-USD interestratedynamics. • USD liability portfolio: USD assets aligned under ALM, with the majority classified as FVOCI. • TWD liability portfolio: certain fixed-income assets remained at AC to mitigate equity volatility. FVTPLequitypreviouslyundertheoverlayapproachwereredesignatedtoFVOCItoreduceearningsvolatility. Selective redesignation to FVTPL for portfolio repositioning, followed by redeployment into higher- quality assets to enhance recurring income and capital efficiency. Note: Including NTD-denominated bond ETFs as defined by regulation Fixed income-AC Fixed income-FVOCI FVTPL (overlay) Equity-FVOCI FVTPL 2025/12/31 IFRS 9 (overlay) & IFRS 4 2026/1/1 IFRS 9 & IFRS 17 2026/6/30 IFRS 9 & IFRS 17 * *
Page 41
41 9.7 504.5 409.5 749.0 (70.0) (184.2) 914.0 IFRS 4淨值 保險負債 重新衡量 影響 金融資產 重新指定 其他 子公司 IFRS 17 淨值 CSM (稅後) IFRS 17 調整後淨值 Changes in equity at IFRS 17 transition (NT$BN) E/A ratio 6.8% 11.9% Adjusted equity better reflects economic value The one-off equity impact mainly reflects the remeasurement of NTD high-guaranteed-rate policies using current market interest rates. CSM represents future insurance profits. Adjusted equity (incl. after-tax CSM) better reflects economic value. Adjusted equity totals NT$914.0bn, exceeding the IFRS 4 level. IFRS 17 adjusted equity (2) Remeasurement of insurance liabilities Financial asset redesignation Other subsidiaries IFRS 17 equity After-tax CSM IFRS 4 equity (1) (3) (3) (3) (2) Note: (1) As of 2025/12/31; (2) 2026/1/1; (3) Figures are on after-tax basis; (4) NTD high-guaranteed-rate policies show a negative impact, while other NTD and FX-denominated policies show a positive impact. 9.4% (4)
Page 42
42 IFRS 17 enhances earnings transparency and predictability CSM release becomes a key driver of earnings. Liability interest costs (insurance finance expenses) decline to ~2.2–2.3% (asset-based), supporting a positive spread. FVOCIequityrealizedgainsare recognizedin retainedearnings, continuingto supportdividendcapacity. Overall earnings predictability and stability improve under IFRS 17. Insurance service result IFRS 9 & IFRS 17 OCI IFRS 9 (Overlay) & IFRS 4 Revenues Expenses OCI Net income Net income • Premium income • Investment income(incl. realized gains of equity investment w/overlay) • CSM & risk adjustment(RA) release • Expected claims and expenses paid • Actual claims and expenses paid Financial result Other operating result • Investment income (net of hedging cost) • Insurance finance expenses • Other income • Other expenses • Effect of changes in discount rates on insurance liabilities • Changes in FVOCI assets • Incurred claims • Changes in insurance policy reserves • Expenses Interest spread CSM recognized as profit over the contract coverage period ILP fee income, indirect expenses, and mortality– interest spread offset reserve Changes in financial assets and discount rate effects on insurance liabilities 1 2 3 4 • Changes in FVOCI assets Retained earnings Net income and FVOCI equity realized gains 5
Page 43
43 CSM contribution to earnings increase over time Strong new business CSM generation supports earnings and capital strength. CSM balance grows as new business CSM generation exceeds CSM release. CSM contribution to earnings increases over time. 2026 2027 2028 2029 2030 2026/1 2026 2027 2028 2029 2026/1 2026 NB 2027 NB 2028 NB 2029 NB Opening CSM New business CSM Interest accretion on CSM Closing CSM Variances & others CSM release Illustrative underwriting profit* (% of earnings) Illustrative CSM movement Illustrative CSM balance Note: Underwriting profit includes insurance service result and other operating result. Existing refers to existing business; NB refers to new business. 2026/1/1 Existing
Page 44
44 Product strategy focused on CSM and capital contribution Profitability (CSM%, Present value of fee income%) CSM ALM AUM Mortality gain Interest spread Expense gain Profit sources Capital contribution (Present value of profit / TIS risk capital) 100% Protection typeUSD Traditional Life - Savings Investment-linked NTD Traditional Life - Savings USD Participating NTD Participating ◼ Protection type NTD Health & Accident products are key focus Superior CSM contribution ◼ Investment-linked products(ILP) Stable fee income, no interest rate risk and low capital charge Aim to stably increase AUM ◼ Traditional life-savings Focus on USD interest- sensitive products No foreign currency risk, supporting ALM. FY25 contribution * Participating products are assessed based on internal methodologies and assumptions. FYP NB CSM Traditional life -savings Protection Investment -linked CSM accumulation remains a top priority; health products account for around 60% of new business CSM. Focus on products with capital contribution above 100%.
Page 45
72% 76% 45% 42% 25% 21% 37% 40% 3% 3% 18% 18% FY24 FY25 FY24 FY25 保經代-其他 保經代-銀行 業務員 '18 '25 45 Distribution strength and health ecosystem support NB CSM Strong distribution supports high-quality new business CSM generation. All health insurance products integrate spillover mechanisms, supported by the health ecosystem to enhance customer engagement. FitBack health promotion program Members > 1.7mn Note: Includes both individual and group insurance Source: Taiwan Insurance Institute, Life Insurance Association of Taiwan Health insurance* sales support NB CSM Strong distribution (FYP by channel) Cathay Industry CUB 24% 28% 26% 20% 18% 19% FY23 FY24 FY25 健康險FYP市占率 FYP市占率 Compensation Prevention steps heart rate sleep fitness Health goal tracking Health ecosystem Fitness programs Nutrition & dietary Health advisory Long-term care Industry-leading scale in spillover insurance products All health products integrate spillover mechanisms 585k policies; NT$34.8bn FYP (2025) Premium discounts Increased benefits ◼ Total FYP market share◼ Health insurance FYP market share ◼ Others ◼ Bancassurance ◼ Tied Agents Achieved health targets Higher coverage
Page 46
46 Strengthening ALM to manage balance sheet volatility ✓ Liability-driven investments, aligning asset allocation with insurance liabilities. ✓ Increase allocation to fixed-income assets to strengthen ALM and reduce equity volatility. ✓ Enhance recurring income, including interest and dividend income. ✓ Gradual increase in NTD-denominated assets to reduce currency mismatch. USD liability portfolio: ✓ Redesignation of AC assets to FVOCI to better align with liability measurement. ✓ Minimize dollar duration (DV01) gap between assets and liabilities to reduce interest-rate- induced equity volatility. NTD liability portfolio: ✓ Partial redesignation of AC assets to FVOCI based on historical Taiwan-U.S. interest rate dynamics to mitigate MTM volatility on equity. ✓ Focus on USD interest-sensitive life products to reduce currency mismatch exposure. Note: Dollar Duration (DV01) measures the change in the market value of assets or liabilities for a 1bp change in interest rates. A smaller asset- liability DV01 indicates stronger ALM and lower equity sensitivity to interest rate movements. Asset allocation strategy ALM & risk management
Page 47
47 Cathay Life – Key messages from IFRS 17 transition • CSM represents future profits from insurance contracts, amounting to NT$511.9bn. • Adjusted equity (incl. after-tax CSM) better reflects economic value, reaching NT$914.0bn and exceeding IFRS 4 equity. Capital Profitability ALM & Risk management CSM & Equity • Strong new business CSM generation supports earnings. • Cost of liabilities (insurance finance expenses) declines to market interest rate levels, supporting a stable positive spread. • Earnings are primarily driven by CSM release and recurring spread, supporting more predictable and stable earnings and improved ROE. • Strengthened ALM and risk management capabilities support financial resilience and mitigate equity volatility. • Strong new business CSM generation strengthens capital position, providing a stable buffer against volatility.
Page 48
48 New solvency regime TIS: Higher capital requirements RBC Taiwan Insurance Solvency (TIS) Valuation Insurance liability Capital resources Risk measurement Fixed income Stock Adopted framework Risk calculation RBC (NAIC) Amortized cost Average market value over half-year period Locked-in basis Tiering VaR 95% Factor-based ICS (IAIS) Mark-to-market (market adjusted value) Tiering CSM 100% recognized as capital VaR 99.5% • Stress approach (primarily), factor-based • Broader risks (longevity/lapse/expense/catastrophe/ non-default spread risks) TIS requires higher capital, with stricter risk-based assessments, market-consistent liability valuation, and higher capital charges for various risks.
Page 49
49 TIS: Transitional measures ease capital pressure • Linear increase of the capital requirement over a 15-year phase-in period − Interest rate risk: from initial 50% to 100% − Longevity/lapse/expense/catastrophe/non-default spread risks: from initial 0% to 100% − Domestic stocks and real estate risk factors linearly converge to TIS from RBC • Morbidity/mortality/longevity/lapse/expense risk stress factors adjusted based on localized data • Localization equity and real estate risk factors Risk factor RBC ICS (IAIS) TIS Taiwan listed stocks 21.65% (TWSE), 30% (OTC) 48% (EM) 35% Domestic real estate 7.81% 25% 15% Domestic public infrastructure (2) 1.28% 37% (EM infrastructure equity) 1.28% • Gradual phase-in of the net fair value impact from assets and liabilities of legacy portfolios(1), based on insurers’ RBC levels; subject to adjustment if capital strengthening progress falls short − RBC ≥ 250%: base TIS ratio up to 125%; the gap up to 125% phased-in over 15 years, the portion above 125% over 5 years − 200% ≤ RBC < 250%: base TIS ratio up to 50% of RBC; the gap up to base ratio phased-in over 15 years, the portion above base ratio over 5 years − RBC < 200%: subject to regulatory approval Localization Transitional measures on Capital Resource Localization Transitional measures on Required Capital LocalizationLocalization Note: (1) Legacy TWD-denominated insurance policies with reserve rate ≥ 4 ; (2) Including investments through private equity funds
Page 50
50 IFRS 17 liability discount rate Risk-free rate: 3-segment construction by currency Liquidity premium Extrapolation Segment #2 Convergence at LTFR Segment #3 Last Observed Term (LOT) Convergence Year(CY) =max(LOT+30,60) Market Rates Segment #1 Risk-free Rate CY Discount Rate LOT M IFRS 17 does not prescribe a specific discount rate methodology. In Taiwan, the approach follows ICS guidelines as required by the FSC and is consistently applied to all insurers. Considering the low-liquidity nature of high guaranteed-rate policies (NTD reserve rate ≥ ), FSC allows an additional liquidity premium of up to 50 bps applied across the full tenor, also reflected in the Taiwan Insurance Solvency (TIS) framework. Currency LOT* TWD Year-10 USD Year-30 Currency LTFR* TWD 4.4% USD 3.8% Level of liquidity premium ALM matching period Currency LTS* TWD 0.25% USD 0.20% Note: (1) Last Observed Term (LOT) is determined according to the observable and liquid term for each currency in the capital market. (2) Long-term Forward Rate (LTFR) is determined based on the sum of long-term real rate and inflation rate. (3) Long-term Spread (LTS) adjusts the risk-free rate to reflect the liquidity premium for long-duration insurance liabilities. Discount rate construction
Page 51
51 C h y’ b l y z 2011 CSR Committee established 2014 Responsible investment team established 2015 First Taiwan bank to adopt Equator Principles 2016-2018 Climate Action 100+ | TCFD response| Voluntary alignment with PSI / PRB 2019-2020 Investment portfolio carbon footprint | Coal financing restrictions | Carbon reduction linked to CEO’s KPI 2022 RE100 commitment | SBTi targets validated 2022-2023 Nature (TNFD | PBAF | Business for Nature | Nature Action 100 ) 2024 Impact investment (GIIN | AVPN) 2011-2014 Governance & RI foundation 2015-2021 ESG integration 2022-2024 Net zero, nature & impact Headquarters 100% renewable energy Zero coal lending by 1Q27 Taiwan operations 100% renewable energy Net-zero operations & financial assets 2025 2027 2030 2050 Revenue thresholds 2022 2025 2030 2040 Coal value chain 30% 20% OECD: 5% | non-OECD: 20% 5% Unconventional oil & gas 50% 30% OECD: 20% | non-OECD: 30% 5% High-carbon investment phase-out plan
Page 52
No. 1 Large-Cap & Financial in 2025 Globally recognized sustainability performance TaiwanGlobal 52 A- level Top 20% Among 1,000+ listed companies ’ th financial institution First Taiwan financial institution 1st in Asia TWSE Corporate Governance Evaluation Top 2 in Finance & Insurance in 2026 2025 Taiwan Corporate Sustainability Awards Reporting example for financial institutions S&P Global Sustainability Yearbook 2026 Top 5% global insurance industry DJBIC World 8 years | Emerging Markets 11 years Sustainalytics 8 years Emerging Markets Global Top 10 life insurance industry ESG RATINGS AAA MSCI
Page 53
Cathay Financial Holdings FY25/ (NT$MN) FY24 (NT$MN) Income Statement Data (Consolidated) FY24 FY25 % Chg Income Statement Data (Consolidated) 1H26 2Q26 Operating Income Operating Income Net interest income 262,122 267,371 2% Net interest income 156,768 80,352 Net commission and fee 15,076 18,278 21% Net fee income 25,952 14,816 Net earned premium 462,813 481,830 4% Insurance service result 25,596 12,400 Change in liability reserves (114,344) (115,062) 1% Investment income 28,410 19,895 Net claims payment (498,373) (477,072) -4% Contribution from associates-equity method 3,092 1,912 Investment income 117,374 126,542 8% Insurance/Reinsurance finance income (expenses) (1) (86,685) (42,810) Contribution from associates-equity method 2,555 3,062 20% Other net non-interest income 7,739 1,770 Other net non-interest income (2,840) (69,606) -2351% Bad debt expenses (4,086) (1,942) Bad debt expenses (9,279) (8,192) -12% Other insurance operating costs (25,158) (11,792) Operating expenses (107,251) (114,179) 6% Operating expenses (40,604) (21,969) Income before taxes 127,853 112,972 -12% Income before taxes 91,025 52,633 Income taxes (16,626) (5,339) -68% Income taxes (14,509) (7,773) Net income 111,227 107,633 -3% Net income (A) 76,516 44,860 Net income to parent company 110,270 107,142 -3% Net income to parent company 76,270 44,676 Disposal gains on FVOCI equity, net of tax (B) 89,350 72,373 Amount in R/E(2) (A)+(B) 165,866 117,233 EPS (NT$) 7.29 7.06 EPS (NT$) 4.95 2.80 Amount in R/E per share (NT$)(2) 11.04 7.73 Dividend Payout Cash dividend per share 3.50 3.50 Stock dividend per share 0.00 0.00 Weighted average outstanding 14,669 14,669 common shares (Millions of shares) Balance Sheet Data (Consolidated) Balance Sheet Data (Consolidated) Total assets 13,767,150 14,341,618 Total assets 14,966,542 Total shareholders' equity 906,527 934,388 Total shareholders' equity 1,130,219 Equity attributable to parent company 888,692 928,287 Equity attributable to parent company 1,123,908 Operating Metrics Operating Metrics ROAE (Consolidated) 13.02% 11.69% ROAE (Consolidated) 16.90% ROAA (Consolidated) 0.84% 0.77% ROAA (Consolidated) 1.05% Double leverage ratio (inc. preferred stock) 118.0% 120.7% Double leverage ratio (inc. preferred stock) 119.1% Capital Adequacy Metrics Capital adequacy ratio 136% 122% Notes: (1) General accounts only. (2) R/E refers to retained earnings. Amount in R/E shown here represents net income plus after-tax FVOCI equity disposal gains; per-share figures are calculated on the same basis. (3) All data and information on this page is provided for informational purposes only, and may subject to adjustment. For more details, please refer to our official financial reports. IFRS 4 & IFRS 9 IFRS 17 & IFRS 9 53
Page 54
Cathay United Bank FY25/ 1H26/ 2Q26/ (NT$MN) FY24 1H25 2Q25 Income Statement Data (Consolidated) FY24 FY25 % Chg 1H25 1H26 % Chg 2Q25 2Q26 % Chg Operating Income Net interest income 60,913 68,241 12% 33,149 37,894 14% 16,961 19,610 16% Net fee income 27,973 34,090 22% 17,948 19,973 11% 7,742 9,945 28% Investment income 18,334 13,704 -25% 6,426 7,458 16% 3,427 3,994 17% Other income 602 732 22% 402 350 -13% 250 250 0% Net operating income 107,822 116,767 8% 57,925 65,675 13% 28,379 33,799 19% Operating expenses (51,840) (56,790) 10% (27,228) (29,322) 8% (13,772) (15,249) 11% Pre-provision profit 55,982 59,977 7% 30,697 36,353 18% 14,608 18,549 27% Net provisions for possible losses (9,211) (7,293) -21% (2,308) (3,755) 63% (988) (1,774) 80% Income before taxes 46,770 52,684 13% 28,388 32,598 15% 13,620 16,776 23% Income tax (8,430) (9,174) 9% (5,009) (5,612) 12% (2,419) (2,986) 23% Net income 38,341 43,510 13% 23,379 26,986 15% 11,201 13,789 23% Net income to parent company 37,780 43,008 14% 23,155 26,794 16% 11,106 13,647 23% Balance Sheet Data Total assets 4,606,285 5,167,942 4,936,951 5,468,501 Loans, net 2,679,233 2,886,929 2,742,861 3,121,392 Financial assets 1,234,617 1,434,798 1,324,036 1,671,737 Total liability 4,306,237 4,843,283 4,637,793 5,130,386 Deposits 3,848,586 4,430,955 4,083,744 4,673,050 Financial Debenture Payable 12,700 18,600 18,600 18,600 Total shareholders' equity 300,048 324,659 299,157 338,115 Equity attributable to parent company 295,390 319,856 294,739 333,099 Operating Metrics Cost income ratio 48.08% 48.64% 47.01% 44.65% ROAE 13.31% 13.93% 15.61% 16.29% ROAA 0.87% 0.89% 0.98% 1.01% Assets Quality (Standalone) NPL 2,943 4,357 3,637 4,436 NPL ratio 0.11% 0.15% 0.14% 0.14% NPL provisions 42,528 46,178 43,641 48,813 Coverage ratio 1445% 1060% 1200% 1100% Capital Adequacy Metrics (Standalone) BIS ratio 15.2% 16.1% 15.8% 15.5% Tier 1 ratio 13.3% 14.2% 13.9% 13.6% CET1 ratio 11.7% 12.7% 12.3% 12.2% LDR (Standalone) Total LDR 69.8% 65.4% 67.4% 67.0% TWD LDR 79.8% 72.4% 75.5% 73.2% FX LDR 34.4% 36.9% 35.4% 42.0% Notes: All data and information on this page is provided for informational purposes only, and may subject to adjustment. For more details, please refer to our official financial reports. 54
Page 55
Cathay Life FY25/ (NT$MN) FY24 (NT$MN) Income Statement Data (Consolidated) FY24 FY25 % Chg Income Statement Data (Consolidated) 1H26 2Q26 Net written premium 430,672 446,179 4% Insurance service result 22,436 10,713 Net earned premium 428,935 444,971 4% CSM & RA release 18,708 9,534 Reinsurance commission earned 318 652 105% Operating variance 4,343 1,646 Fee income 13,542 13,300 -2% Others (615) (468) Recurring investment income 272,669 279,234 2% Financial result 40,926 29,144 Gain on disposal of investment Recurring investment income(1) 137,678 70,032 Realized gain (loss)-Equity 114,260 114,800 0% Gain (loss) on investment, net(1) 24,792 18,933 Realized gain (loss)-Debt 1,139 6,038 430% Hedging costs (32,975) (15,913) Gain on investment property 976 8,745 796% Insurance finance expenses(1) (86,400) (42,675) FX and others, net (87,502) (157,627) -80% Others (2,169) (1,234) Investment income, net 301,542 251,190 -17% Other operating result (11,539) (8,831) Other operating income 1,550 1,582 2% Net revenue from investment contracts Separate account revenue 67,117 80,394 20% and other operating income 2,682 1,402 Net claims payment (475,850) (454,396) -5% Other operating costs and expenses (18,833) (10,233) Changes in liability reserves (112,991) (112,129) -1% One-off IFRS 15 impact 4,613 0 Acquisition and commission expenses (38,537) (40,264) 4% Operating income 51,824 31,025 Other operating costs (8,486) (8,626) 2% Net non-operating income 666 326 Financial cost (7,418) (11,384) 53% Income taxes (6,276) (2,507) Separate account expenses (67,117) (80,394) 20% Net income (A) 46,214 28,844 Operating expenses (32,240) (36,275) 13% Net income to parent company 46,160 28,803 Net non-operating income 2,538 2,528 0% Income taxes (5,624) 5,416 - Disposal gains on FVOCI equity, net of tax (B) 85,079 68,502 Net income 67,280 56,565 -16% Amount in R/E(2) (A)+(B) 131,292 97,346 Net income to parent company 66,883 56,575 -15% Balance Sheet Data Balance Sheet Data (Consolidated) Total assets 9,094,382 9,081,778 Total assets 9,335,881 General account 8,303,423 8,241,657 General account 8,346,029 Separate account 790,958 840,121 Separate account 989,852 Reserves for life insurance liabilities 7,146,011 7,097,335 Insurance contract liabilities 7,048,675 Total liabilities 8,376,708 8,331,451 Total liabilities 8,375,913 Total shareholders' equity 717,673 750,327 Total shareholders' equity 959,969 Equity attributable to parent company 704,497 749,029 Equity attributable to parent company 958,675 Operating Metrics (Standalone) Operating Metrics (Standalone) First Year Premium(FYP) 154,103 190,543 First Year Premium(FYP) 195,398 Annualized FYP(APE) 57,793 60,610 New business CSM 53,851 Expense ratio 15.7% 17.1% 13-M persistency ratio 97.7% 13-M persistency ratio 97.9% 97.6% 25-M persistency ratio 95.1% 25-M persistency ratio 95.3% 95.6% ROAE (Consolidated) 12.61% ROAE (Consolidated) 10.00% 7.71% ROAA (Consolidated) 1.02% ROAA (Consolidated) 0.76% 0.62% Capital Adequacy Metrics RBC ratio (Standalone) 359% 310% Notes: (1) General accounts only. (2) R/E refers to retained earnings. (3) All data and information on this page is provided for informational purposes only, and may subject to adjustment. For more details, please refer to our official financial reports. IFRS 4 & IFRS 9 IFRS 17 & IFRS 9 55
Page 56
Cathay Century FY25/ (NT$MM) FY24 (NT$MN) Income Statement Data (Consolidated) FY24 FY25 % Chg Income Statement Data (Consolidated) 1H26 2Q26 Premium income 38,559 41,222 7% Insurance service result 2,650 1,427 Net written premium 26,417 28,538 8% Insurance revenue 20,538 10,429 Net earned premium 25,343 27,585 9% Insurance service expenses (12,452) (6,002) Reinsurance commission earned 1,230 1,237 1% Net reinsurance expenses (5,437) (2,999) Fee income 54 53 -3% Financial result 857 555 Investment 1,407 2,018 43% Interest income 490 257 Interest income 859 953 11% Other investment income, net 415 313 Other investment income, net 548 1,066 94% Insurance/Reinsurance finance income (expenses) (47) (16) Other operating income 67 0 -100% Other operating result (633) (390) Net claims payment (12,534) (12,037) -4% Operating income 2,874 1,592 Changes in liability reserves (1,354) (2,933) 117% Net non-operating income 4 (1) Commissions and other operating costs (4,689) (5,007) 7% Income taxes (505) (275) Operating expenses (6,353) (6,508) 2% Net income (A) 2,373 1,316 Operating income 3,172 4,408 39% Net non-operating income 23 8 -65% Income taxes (558) (661) 18% Disposal gains on FVOCI equity, net of tax (B) 1,436 1,017 Net income 2,637 3,755 42% Amount in R/E(1) (A)+(B) 3,809 2,333 Balance Sheet Data Balance Sheet Data Total assets 65,503 79,884 Total assets 75,670 Total stockholders' equity 17,947 20,027 Total stockholders' equity 24,968 Operating Metrics Operating Metrics Gross Combined ratio (Standalone) 87.3% 101.1% Combined ratio (Standalone) 61.2% Net Combined ratio (Standalone) 91.2% 88.8% Net Combined ratio (Standalone) 87.2% ROAE 16.01% 19.78% ROAE 21.11% ROAA 4.36% 5.17% ROAA 6.41% Capital Adequacy Metrics RBC ratio (Standalone) 365% 342% Notes: (1) R/E refers to retained earnings. (2) All data and information on this page is provided for informational purposes only, and may subject to adjustment. For more details, please refer to our official financial reports. IFRS 4 & IFRS 9 IFRS 17 & IFRS 9 56