To our Sharechlders
Market Analysis
Our Goals for 2002
Organization Chart
1ˇDBussiness and Rˇ®D Plan
In 2002, we will strive to enhance our competitiveness and strengthen our operations so that we are able to cope with the impact of the establishment of financial holding companies. Taking advantage of an organizational structure that emphasizes specialized division of labor and modern management methods, we will effectively utilize our human resources to achieve optimal business development and business results, and to enhance our credit quality. Our operational focus will be on making our business banking more internationalized, our retail banking more community-centered, and our general banking more financial-management oriented.
In product planning, we will actively develop integrated financial management products. Besides extending the functions of our all-in-one investment and money management accounts and launching matching insurance products, we will also speed up planning on various trust products such as foreign exchange, insurance, retirement, and will trusts. At the same time, we will augment our electronic banking functions and expand our automated service outlets. In all, our aim will be to deliver simple, convenient and comprehensive financial management counseling and services, to meet the growing diversity of customer demand.
For the realization of our operational objectives in 2002, the main points of our work plan for the year are as follows:
(1) Raise organizationalefficiency and service quality in line with the adjustment of organizational functions and the setting up of operations centers and financial management centers.
" Match the implementation of our regional centers system by augmenting the functions of our business operations centers, enhancing the efficacy of centralized handling of routine operations, and establishing a complete logistical support system.
" Reorientate organizational functions on the basis of five distinct systems for business, consumer, all-purpose, and general-service branches and the head office respectively.
" Implement graded customer service and a differential pricing strategy. Provide an extra-high level of financial management service to VIP customers, upgrade software and hardware to secure a large customer volume, and develop a profitable customer base.
" Integrate business promotion planning and continue presenting serialized lectures to help customers gain a thorough grasp of financial management trends.
(2) Speed up the planning and development of new lines of business, to provide customers with an increasing diversity of financial management services.
" Strengthen the promotion of all-in-one investment and money management accounts, maximize cross-marketing efficiencies, and combine insurance products with trust-related investment options, to provide customers with convenient and diverse integrated financial management services.
" Keep abreast of financial development trends, and cooperate with foreign investment trust companies to develop all kinds of trust products. Offer various combinations of trust and other money management options, and plan the introduction of fund investment via the Internet, to provide customers with diversified financial management channels.
" Research and develop derivative financial products, and bundle together options, local and foreign currency interest-rate swaps, and margin trading in bonds, to provide customers with specialized financial planning information and diverse money management products.
(3) Adjust our loan structure, deeply cultivating communities and bank localities, strengthening the development of SME financing, and implementing credit risk controls.
" Actively promote personal consumer finance business, deeply cultivate the surrounding communities of our branches, understand consumer trends and borrowing patterns of customers in each locality, and provide a full range of consumer, money management, home purchase, and other such services tailored to our customers' needs.
" Expand our small and medium business clientele, and bolster lending under guarantee of the Small and Medium Business Credit Guarantee Fund, to spread and reduce our overall credit risk. Conform to government policy objectives by joining the Ministry of Economic Affairs' SME funding mechanisms, set up an "Small and Medium Business Funding Service Window", and establish Small and Medium Business loan counseling and loan application service mechanisms.
" Strengthen our factoring business, strive to raise demand deposits and commission revenue, and adjust our operations and revenue structure.
(4) Vigorously add to off-site ATM locations, speed up the planning of IC multipurpose cards, and augment Internet banking and mobile banking electronic financial services.
" Actively expand automated equipment, strengthen cooperation with convenience stores, supermarkets, and other suitable retail outlets, and set up a large number of off-site ATMs in densely populated residential districts and college vicinities, to put into effect the concept of community banking service.
" In line with the future development of secure and convenient IC card use, step up the planning of chip-embedded cards and stored-value e-purses, and target customers according to their contribution to the bank with cards combining the functions of credit cards, cash management cards and ATM cards.
" Develop all-purpose Internet banking, targeted at user needs, to provide both personal and business Internet banking services, and also plan the setting up of a financial management website for the provision of personal financial management counseling, to establish a complete electronic financial services system.
(5) Upgrade branch data systems, augment computerized accounting functions, and establish a customer relations management system.
" Upgrade branch operation end-systems to high parameterization, to improve information processing efficiency. Augment branch computerized accounting functions, to strengthen systems interlinkage between transaction processing and accounts, in order to improve the efficiency of account settlement automation, and so save on manpower in branch account operations
" Establish a customer relations management (CRM) system, augment data storage functions, and set up a relations marketing model, in order to gain a firm grasp of customers' transaction data and consumption habits, and so help customer service centers carry out marketing activities and bolster branches' personal customer management and product sales.
(6) Extend our operational antennae, add new income sources, and integrate outlet service, to enhance operations efficiency.
" Promote the bank as a specialized trust operator, and build upon our strengths in domestic fund custodian banking to extend our business into asset management, insurance trusts, personal trusts, and other areas of trusteeship.
" Strengthen marketing activities to promoteexisting affinity cards, and expand the issuance of new co-branded cards in cooperation with life insurers, department stores, hypermarkets, and other business organizations, combining card-holders' sense of identity to enlarge the selectivity of card-issuance. At the same time, seek assistance in card promotion from credit card marketing firms, to step up the growth in volume of cards issued. Also, collaborate with manufacturers, hotels, and travel agencies to provide discounted market-promotion privileges, and organize gift and prize-draw promotions for credit-card users, to increase credit-card added value, stimulate customer consumption, and increase our credit-card revenue.
" Integrate our own-invested insurance agencies, to fully exploit the potential of banking outlet resources and increase sales value of financial commodities.
" Integrate domestic and overseas business locations, and strengthen use of the service network created by our Hong Kong and Macau branches, to provide comprehensive service to Taiwan businessmen operating in the Greater China region. Also, actively gather and process relevant information and assess the feasibility of setting up a branch or office in mainland China.
" In line with the government's schedule for opening cross-strait financial transactions, develop direct contacts between our OBU and mainland Chinese financial institutions, and raise remittance efficiency, to vie for business and to lower costs.
" Actively participate in international investment and loan syndication, putting stress on the balance of risk and profit, and raising our risk management capability.
(7) In conformity with our organizational adjustment, cultivate and train personnel for financial management marketing and our consumer and business banking operations.
" Under the framework of our regional centers system and specialized division of labor, and in step with the centralization of business operations, gradually adjust the manpower allocation in general service branches, and transfer or cultivate staff to fill specialized service or marketing positions.
" Plan all kinds of specialized training programs, and arrange various "self-improvement" study courses and lectures on work-related or motivational themes, to bring out the best of our staff members' potential.
" Cultivate staff with specialized knowledge in international finance and foreign-exchange operations, and promote foreign-language studies, to meet international financial business development needs.
Type of Bussiness target for 2002 performance in 2001 Targeted Increase(year-on-year)
Amount of Increase Growth Rate
Total deposits 288,500,000 274,151,588 14,348,412 5.23%
Total loans 226,500,000 206,559,244 19,940,756 9.65%
Profit 3,000,000 2,653,636 436,364 17.02%
Foreign exchange dealings(US$1,000) 12,000,000 11,549,452 450,548 3.90%
Credit cards 500,000 411,018 88,982 21.65%
2. Plans for Disposal or Acquisition of Immovable Property or Long-term Investments in 2002: (None)
3. Capital Utilization Plan:
(1) The 1989 cash capital increase of NT$100 million was already completed and fully utilized for business financing by year-end 1989.
(2) The bank has never issued bank debentures.