SpokespersonName: Jiann Jong LinTitle: Chief Executive Vice PresidentTel.:(02) 2378-6868Email: liyunlin@feib.com.tw

Acting SpokespersonName: Shin Hwa ChouTitle: Executive Vice PresidentTel.:(02) 2378-6868Email: liyunlin@feib.com.tw

Headquarter and branches address and telephoneAdd.: 26, 27F, No. 207, Sec.2, Dunhua S. Rd., Daan Dist., Taipei City, TaiwanTel.: (02) 2378-6868Branches address refer to context

Stock AgentName: Oriental Securities CorporationAdd.: 13F., No. 16, Xinzhan Rd., Banqiao Dist., New Taipei City, TaiwanTel.:(02) 7753-1699Website: http://www.osc.com.tw

Credit Rating InstitutionName: Fitch Australia Pty Ltd., Taiwan BranchAdd.: Rm. A2, 23F., No. 68, Sec. 5, Zhongxiao E. Rd., Xinyi Dist., Taipei City 110, TaiwanTel: (02) 8175-7600

Recent Annual Financial Statement AuditorName: Deloitte & ToucheCPA: Chun-Hung Chen, Ying-Chou ChenAdd.: 20F, Taipei Nan Shan Plaza, No. 100, Songren Rd., Xinyi Dist., Taipei, TaiwanTel.: (02) 2725-9988

Name of Exchange of Overseas Securities and Inquiry ContactLuxembourg Stock ExchangeWebsite: https://www.bourse.lu/ISIN: US30733T2069, US30733T1079

Our websitehttps://www.feib.com.tw

Far Eastern International Bank 2019 Annual Report 102

Types of bank debentures 1st perpetual non-cumulative

unsecured subordinated debenture in 2018

1st senior unsecured financial debenture in 2019

Conditions for conversion or exchange

None None

Restrictive terms

The bank may not pay interest if there is no earnings and dividends in previous year (including cash and stock dividends); however, this restriction does not apply in circumstances where the balance of cumulative undistributed earnings less amortized losses on sale of non-performing loans is greater than the amount of payable interest, and provided that the payment results in no changes to the terms of interest. Non- payment of interest due to the above will not be accumulated or deferred in later periods. The bank shall defer interest and principal payments in situations where its capital adequacy ratio fails to meet the minimum level specified in Article 5, Paragraph 1 of the Regulations Governing the Capital Adequacy and Capital Category of Banks; in which case, deferred interest may not accrue any late interest.

None

Use of proceeds

To finance the Bank's long term funding needs and enhance the Bank's capital structure for support of future growth of loans and investments.

To finance the Bank's long term funding needs for support of future growth of loans and investments.

The total amount of the issuance and outstanding bonds in the percentage of the book value of previous year (%)

43.49 49.52

Eligible capital and type Tier I None

Name of rating agency, issue date, and the rating

“A(twn)” issued by Fitch Ratings, Taiwan Branch on July 2, 2018.

“A(twn)” issued by Fitch Ratings, Taiwan Branch on July 2, 2018.

Far Eastern International Bank 2019 Annual Report 107

V. Operation Highlights 1. Business Activities

(1) Business Scope A. Core-business

(a) Retail Banking ■ Wealth Management： In accordance with market trends, consider the

dispersion of asset allocation, select diversified financial products and offer preferential interest deposits. Provide customers with appropriate assets base on their risk-attributes to improve product penetration and expand the wealth management assets.

■ Consumer Banking and Credit Cards Business: take the responsible of mortgage, personal loan, car loan, consumer finance (installment) and credit cards, business including product planning, marketing, sales, and management and customer services.

■ Insurance Agency: Select high-quality insurance companies to promote Bancassurance business collaborations, training and support colleagues’ insurance professionalism. Create high-quality Bancassurance products and services in accordance with customers’ diversification and fragmentation to provide the most comprehensive financial planning and services.

(b) Corporate Banking：Corporate banking businesses are driven to satisfy corporate customers’ demands on integrated financial solutions such as corporate deposits, loans, FOREX businesses (foreign exchange, import and export), factoring, e-financing, supply-chain financing, hedging and structured products, etc. crossing various industries in Greater China as well as Asia region.

(c) Financial Market：Financial Trading business covers fixed income, foreign exchange, equity, credit and derivatives. Focus on the financial institutions to provide solutions with financing, TMU transaction, automatic clearing house, etc. Execute TWD and foreign currencies funding and asset management policies of the Asset and Liability Management Committee (“ALCO”), including asset/liability, liquidity risk and interest rate sensitivity risk management.

(d) Digital Banking： With a forward-looking vision and a pragmatic pace, Far Eastern International Bank promotes the digital transformation of our business and uses fintech and innovative concepts to develop new business models. We evolve the concept of BaaP (bank as a platform), which modularizes financial services (Open Banking), and cooperates with start-up companies to establish a diversified and open financial department stores. Far Eastern International Bank also improves the efficiency of internal processes, continues to optimize the Bank's corporate / personal digital platform to provide services that meet customers’ needs, and enhances bank competitiveness.

Far Eastern International Bank 2019 Annual Report 108

B. Weightings to Net Revenue and Changes YOY of the Respective Business Units

BU Weightings to Net Revenue Growth Rate (YoY) 2019 2018

Individual Banking 21% 22% 6% Consumer Banking 24% 25% 2% Credit Cards 11% 12% 0.2% Insurance Agency 1% 1% -4% Corporate Banking 26% 27% 4% Financial Market 17% 13% 43%

(2) Business Plan for 2019

A. Retail Banking (a) Customer-Relationship Management: Collaborate with FEIB affiliates to offer

privilege schemes for VIPs. Achieve strategic goals of integrating with affiliates and sharing clients’ resources to consolidate the loyalty and contribution of high-end customers. Continue to work with Yuan Ze University to introduce different courses for seniors and maintain the relationships with retired groups.

(b) Trust business: In the global wave of anti-tax avoidance, the "Ministry of Finance has promulgated the Due Diligence and Common Reporting Standard (CRS) for Financial Institutions, and the regulations on Management, Utilization, and Taxation of Repatriated Offshore Funds Act for Taiwanese Businessman". FEIB is allied with accounting firms and solicitor offices’, and works with cross-scope experts to address tools of corporation succession, operations and asset inheritance issues to provide tailor-made of family trust services in the funds repatriation and asset inheritance for Taiwanese enterprisers.

(c) Mortgage Loan: Continuous development of High Yield mortgage products, creating the basis for diversified business operations; Further cultivating branch clients for overall synergy; Continuous integration of online and off-line channels with an optimized user experience for strengthening

(d) Personal Loan: Continuous segmenting and matching of risk level groups for precise clients targeting of both high and low risk levels; Enhanced digital capabilities to promote sales ratio contributed by E-channel; Optimized SOP of physical sales channel for improved efficiency.

(e) Consumer Finance (Installment): Strengthen the cooperation with the existing strategic alliances and expand the Account Receivable product to boost business volume. Enhance E&M platform to modernize the application process and service.

(f) Car Loan and Motorcycle Loan: Upgrade the operating process to strengthen banks’ competitiveness. Balance business volume and profitability to pursue steady business growth.

(g) Credit Card: Focus on Happy Go credit card. Leverage FE Group's cross-industry advantages to ally with department stores, discount stores, telecom, online shopping, hotels, and other retail channels. Intensify the brand image of FE Happy Go credit card as FE Group card. Diversify the service for e-Tag payment with FE credit cards to penetrate the commuter group. Introduce original marketing campaigns with FE Group’s strategies to serve the existing customers.

％

％

％

167

168

169

170

Notice to Readers

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

For the convenience of readers, the independent auditors’ report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and consolidated financial statements shall prevail.

171

172

173

174

175

176

177

178

179

180

181

182

183

184

185

186

187

188

189

190

191

192

193

194

195

196

197

198

199

200

201

202

203

204

205

206

207

208

209

210

211

212

213

214

215

216

217

218

219

220

221

222

223

224

225

226

227

228

229

230

231

232

233

234

235

236

237

238

239

240

241

242

243

244

245

246

247

248

249

250

251

252

253

254

255

256

257

258

259

260

261

262

263

Notice to Readers The accompanying financial statements are intended only to present the financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such financial statements are those generally applied in the Republic of China. For the convenience of readers, the independent auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and financial statements shall prevail.

264

265

266

267

268

269

270

271

272

273

274

275

276

277

278

279

280

281

282

283

284

285

286

287

288

289

290

291

292

293

294

295

296

297

298

299

300

301

302

303

304

305

306

307

308

309

310

311

312

313

314

315

316

317

318

319

320

321

322

323

324

325

326

327

328

329

330

331

332

333

334

335

336

337

338

339

340

341

342

343

344

345

346

347

348

349

350

351