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Dear fellow shareholders:
In 2024, global political and economic uncertainties, along with investment opportunities driven by supply chain restructuring amid the deglobalization trend and interest rate cuts by central banks worldwide, posed significant challenges to the banking industry’s operations. Despite market volatility, CTBC Bank continued to see overall growth through strong customer relationships and its diverse business structure. With a robust performance in wealth management and steady results in its investment, deposit, and loan businesses, the Bank’s pre-tax profit increased from 2023 to hit a record high, solidifying the company’s position as the most profitable bank in Taiwan.
Looking ahead in 2025, global economic developments and international political dynamics will remain uncertain. CTBC Bank has formulated various countermeasures to ensure sound operations, fulfill its corporate responsibilities, align itself with government policies, and work alongside customers and employees to overcome challenges and continue moving forward.
In terms of financial performance in 2024, CTBC Bank reported annual consolidated net revenue of NT$154.0 billion, consolidated pre-tax income of NT$62.8 billion, and consolidated net income attributable to the parent company of NT$49.4 billion, with a consolidated after-tax ROE of 13.15%, which placed us in the leading position in the industry. We saw a 12% increase in consolidated net revenue and a 20% increase in consolidated net income attributable to the parent company from the 2023 fiscal year, achieving 100% of budgeted consolidated after-tax net income.
As part of its product and service innovation and development efforts, CTBC Bank last year launched the Digital Supply Chain Financing Project. This collaboration with external computer and enterprise resource planning providers is aimed at integrating corporate customers’ procurement and payment information and transmitting it digitally to the CTBC Bank platform, thereby providing customized financing solutions for customers. Also in 2024, in accordance with government policy, CTBC Bank further developed its wealth management business for high-net-worth customers and launched the “Family Wealth Governance” service, developed with the concept of a virtual family office. The service covers four major areas: financial assets, household insurance policies, securities, and real estate. It offers the industry’s first-of-its-kind “Real Estate and Securities Review System,” along with a one-stop wealth management service, providing high-net-worth customers with optimized, comprehensive asset management planning.
Regarding organizational changes, in response to the expansion of overseas business, CTBC Bank established the International Financial Market Division in January 2024 to oversee the operations, business management, and project tracking of trading rooms at overseas branches. In the same month, the International Payment and Lending Business Division was set up to supervise business planning for consumer finance and payment products and channels across global markets. Additionally, the International Retail Banking Division was renamed the International Wealth Management Business Division; it is responsible for planning and executing wealth management products and channels overseas, with a focus on strengthening core product offerings. To drive digital transformation and enhance operational synergy, the Digital Finance Division and Data Intelligence R&D Division under the Technology Group were merged into the Digital Technology Division, also in January 2024. This new division is responsible for digital strategy planning and providing technology solutions to improve customer experience and support business growth.
CTBC Bank demonstrated strong overall performance in 2024. The Bank was ranked 158th among the global top 1,000 banks by The Banker, taking first place in Taiwan for the eighth time. It was also recognized for the 10th time by the renowned UK brand valuation institution Brand Finance as Taiwan’s Most Valuable Bank Brand. The Bank’s effective business strategies further enhanced its overall business performance and market competitiveness, earning it the title of Best Bank in Taiwan from Euromoney, FinanceAsia, and The Asset. In addition, the Bank achieved remarkable results in using technology to support fraud prevention and financial inclusion, including by leveraging AI to effectively combat financial crime. These efforts were recognized with two awards from Global Finance: World’s Best Financial Innovation Labs and Best Fraud Risk Management Innovation.
For its efforts in actively expanding overseas operations and strengthening cross-border financial services, CTBC Bank received multiple honors from The Digital Banker, including Best SME Mobile Banking App, Global, and Best Bank for Transaction Banking Services in Asia Pacific. The Bank also maintained its market-leading position in credit lending, payments, and wealth management through continual product innovation and process digitalization, earning the title of Best Retail Bank in Taiwan from The Asian Banker for the 18th time. At the biennial Elite Awards—widely regarded as the Oscars of Taiwan’s financial industry—CTBC Bank set a new record by becoming the only bank to win in every category it was nominated in for two consecutive years. In 2024, it secured eight top honors, including Best Overseas Business Development and Best Corporate Trust, setting a new benchmark for Taiwan’s financial sector. The Bank also received The Asset’s Renewable Energy Deal of the Year, Global, not only reflecting its ongoing financial influence and commitment to sustainable infrastructure but also its dedication to balancing business growth with environmental protection.
In risk management, CTBC Bank continued to strictly control its asset quality and capital adequacy. In 2024, our consolidated non-performing loan and coverage ratios were 0.49% and 330.74%, respectively, indicating satisfactory asset quality, while our consolidated BIS ratio was 13.89%, signifying a sound capital structure. Furthermore, domestic and international credit rating agencies maintained their stable outlooks for the Bank on the back of its leading business position in the domestic market, capital and profitability, adequate risk management, and good funding sources and liquidity.
|
Rating agency |
Long Term Credit Rating |
Short Term Credit Rating |
Outlook |
Publication date |
|---|---|---|---|---|
|
Moody’s |
A1 |
P-1 |
Stable |
Oct. 25, 2024 |
|
S&P Global Ratings |
A |
A-1 |
Stable |
Oct. 25, 2024 |
|
Taiwan Ratings |
twAA+ |
twA-1+ |
Stable |
Oct. 25, 2024 |
Despite frequent global trade conflicts in recent years and ongoing geopolitical risks, investment demand remains strong, driven by the deglobalization trend. Companies are actively adjusting their supply chain structures, while the growing applications of emerging technology are supporting stable labor markets in major economies. As a result, private sector consumption has become a key contributor to economic growth, reflecting the global economy's strong resilience in 2024.
The International Monetary Fund predicted a minor decrease in global economic growth, from 3.3% in 2023 to 3.2% in 2024. The growth rate of developed countries was expected to remain at 1.7%, while the growth of the overall emerging economy was forecast to decrease from 4.4% to 4.2%. With destocking pressure easing, active investments in emerging technology, and AI-driven demand, Taiwan's economic growth increased from 1.12% in 2023 to an estimated 4.27% in 2024, according to the Directorate General of Budget, Accounting and Statistics.
In terms of monetary policy, measures adopted by central banks worldwide to suppress inflation have taken effect. Central banks started to cut interest rates to ease the economic pressure caused by high interest rates. The Fed cut rates by 100 basis points in 2024, bringing the policy rate to 4.25%–4.5%. The European Central Bank also cut rates by 100 basis points, while China continued its rate cuts and reserve requirement ratio reductions. In Taiwan, the central bank raised interest rates by 12.5 basis points in the first quarter of 2024 and increased the reserve requirement ratio twice during the year for a total rise of 50 basis points. Overall, the global economy remained stable in 2024, and the U.S. rate cuts eased the negative yield curve inversion. However, growing uncertainties in global political and economic conditions led to heightened financial market volatility, posing a challenging business environment for banks.
Looking ahead, CTBC Bank will focus on developing its core business, expanding in overseas markets, and promoting digital transformation:
1. Continue to enhance its core business competitiveness and expand its emerging customer base and operations
CTBC Bank is committed to enhancing its core business competitiveness and exploring differentiated value propositions to consolidate its leading position in the domestic market and expand its customer base. In retail banking, we will continue to accelerate the development of our wealth management business, aiming to become a market leader. Meanwhile, we will actively expand our private banking operations by targeting family offices and growing our private banking teams to offer high-net-worth customers exclusive, customized services that meet their domestic and international wealth management needs. Regarding our payment business, we will accelerate the development of emerging payment models, create new consumption scenarios, and enhance both the customer payment experience and satisfaction. As for institutional banking, we remain committed to serving all customer segments: providing diversified products for mid-to-large corporate customers and leveraging our overseas branches and subsidiaries to fulfill their cross-border financial needs; offering tailored and efficient products and services for small and medium-sized enterprises through comprehensive one-stop solutions. Additionally, we will continue to expand our non-Taiwanese customer base, innovate in responsible lending products, and develop sustainable business models to maintain CTBC Bank’s leading market position.
2. Continue to develop overseas operating models and explore diverse customer business opportunities and differentiated business models to enhance overseas profitability
Given the global supply chain restructuring trend, CTBC Bank will leverage the advantages of its integrated domestic and overseas networks and system platforms to strengthen its presence in key regional financial hubs such as Hong Kong and Singapore. The Bank aims to provide comprehensive financial services for Taiwanese businesses and overseas enterprises while drawing on its experience and resources in the Taiwan market to support localized operations and accelerate business expansion in overseas markets.
CTBC Bank has been actively expanding its presence in Southeast Asia and Japan. After becoming the largest shareholder of LH Financial Group Public Company Limited in Thailand, it established a local management team to drive growth through institutional banking and mortgage businesses. Through its Japanese subsidiary, The Tokyo Star Bank, the Bank continues to cultivate niche customer groups to effectively enhance operational performance. In terms of overseas retail banking, the Bank adopts market-specific strategies through diverse product portfolios and differentiated business models to accelerate business expansion.
3. Continue digital transformation, drive core system upgrades, and enhance the Bank’s service competitiveness
To further enhance overall customer experience and satisfaction while optimizing operational efficiency, CTBC Bank will expand the implementation of its Digital End-to-End strategy, accelerating process digitalization and the development of AI-driven emerging technology applications to create business value. Furthermore, as our existing core system has supported CTBC Bank’s operations for nearly 30 years, we recognize the need to introduce next-generation technology in phases to drive future business innovation. Through the transformation of our core system, we aim to strengthen innovation and development capabilities, establish rapid market response mechanisms, and enhance scalability. This will foster a new model of business and information collaboration, ensuring operational stability while achieving system modernization and reinforcing the Bank’s competitive service advantage.
Facing the ongoing global financial uncertainty, we will continue to pursue business growth while maintaining risk discipline and will maximize value for our shareholders through diversified profit sources and solid asset quality.
Chairman:
James Chen
Institutional banking, international business, and capital markets
CTBC Bank’s institutional banking and capital market business continues to lead the sector in Taiwan. We have maintained growth in Taiwan by optimizing our products in order to expand our core business and grow our emerging business. Furthermore, we have leveraged our global network to accelerate the growth of international business by expanding the scale of overseas markets and connecting cross-border opportunities to boost synergy.
We keep our finger on the market pulse. Leading the financial industry in creative, specialized financial products, we have become an indispensable partner to our customers. Both our Bank and our main products have been honored with international awards such as Best Bank for Corporates in Taiwan, Best Overseas Business Development, Best Transaction Bank in Taiwan, Best Trade Finance in Taiwan, Best Cash Management Bank in Taiwan, Best Custodian Bank in Taiwan. The management direction and achievements of our primary products are detailed below.
(1) Transaction banking
In 2024, despite both cash management and trade finance encountering severe challenges and most of our target markets facing geopolitical uncertainties and the rapid escalation of trade tensions, CTBC Bank’s deposit scale continued to grow. Specifically, we maintained our leading market position, including in foreign currency deposits, and enlarged our share of competitive overseas markets across all businesses. In addition, we retained our leading position in the trade and factoring market and remained among the top three banks in terms of revenue—a position we have held for several years. However, we do expect some turbulence due to the recent market headwinds. As such, we will focus on developing our customer base in Greater China and cultivating opportunities from the supply chain shift from Greater China to Southeast Asia.
Also notable is how our digital strategy has transformed us from a traditional transaction bank into one that supports its customers’ expansion throughout Asia Pacific. Whether for corporates or individual customers like controllers, we are continuing to improve our customers’ banking experience through innovative technologies. This includes providing a new comprehensive digital platform. This API-driven banking experience across web and mobile platforms enables businesses to seamlessly manage their financial operations. By offering market-leading application-to-application services, we have successfully captured substantial cash flows from several large enterprises.
In addition, we focus on exploring cross-border opportunities and digitizing trade finance, with the aim of offering funding flexibility and financing solutions to our customers across countries. For example, considering key factors such as customer needs and local limitations, we have built a complete cross-border financial service platform to help our customers conduct business seamlessly. CTBC Bank has proactively provided comprehensive services and helped our clients to access lower funding costs, improve their operational efficiency, optimize their funding use, and lift limit restrictions by deepening cooperation with overseas branches.
(2) Corporate trust business
CTBC Bank’s corporate trust business product lines include stock affairs agency, trust, and custody services. All products have demonstrated leadership in the market. CTBC Bank was the first financial institution to provide stock affairs agency services in Taiwan and has ranked No. 1 in Taiwan for 50 years. It is also the leader in domestic securities trusts and employee incentive trusts, with market shares of 12% and 54%, respectively, as of the third quarter of 2024. Furthermore, CTBC Bank is the No. 1 custodian bank among all local service providers, with an 8% market share as of the third quarter of 2024.
The Bank’s core value lies in its ability to develop innovative services with professional, customized capabilities to meet customers’ diverse financial needs. With strategic thinking based on our customers’ needs, we are continually optimizing user journeys to enhance the customer experience. On the back of our continual enhancements and innovations, CTBC Bank received the Best Corporate Trust Award for the third consecutive year at the 12th Elite Awards, the highest honor in Taiwan’s financial industry. It also received numerous international awards in 2024, including the Best Domestic Custodian in Taiwan by The Asset, Best Sub-Custodian Bank in Taiwan by Global Finance, and Best Custodian Bank in Taiwan by The Asian Banker in 2024.
(3) Structured and syndicated financing
CTBC Bank is a leading syndicated loan arranger in Asia, with an extensive presence in the region as well as a strong commitment to its home market. The Bank has strong origination and structuring capabilities providing innovative solutions, and has multiple channels diversifying loan distribution. We specialize in financing solutions requiring higher levels of sectoral knowledge, such as private equity-sponsored leveraged financing, merger and acquisition financing, renewable project financing, and aviation/shipping/real estate. In addition, the Bank has developed extensive networking and firm partnerships with key players in the region.
CTBC Bank is also actively involved in the renewable energy market, including solar and wind energy. We have continually helped arrange a number of large project financing cases and have been mandated as the financial adviser for several international and local developers. In addition, we offer local insights and tailored solutions including capital market and debt structuring, agency services, and hedging derivatives, and are well-positioned to be the leading bank in these fields.
CTBC Bank has received numerous honors and awards for its commitment and achievements in syndicated loans. In addition to being named Corporate & Investment Bank of the Year in Taiwan by Asian Banking & Finance, Syndicated Loan House of the Year in Taiwan by APLMA, and Best Investment Bank in Taiwan by Global Business Magazine, FinanceAsia, and Global Finance, the Bank has also received recognition for its projects. Such honors include Global Renewable Energy Deal of the Year by The Asset, Best Project Finance Deal in North Asia by FinanceAsia, and Deal of the Year in Asia Pacific by Energy Risk.
(4) Securities underwriting
As one of the leading bond underwriters in Taiwan, CTBC Bank has participated in numerous landmark transactions as well as new kinds of transactions. In 2024, we acted as the sole lead manager for the first corporate bond with an A-rated credit rating. Notably, this came in the face of market volatility and tight monetary policy in the domestic market, after Taiwan’s Central Bank unexpectedly raised policy rates in March. With our strong debt capital market franchise together with our loan syndication business, we are well positioned to serve our clients across Asia with comprehensive corporate finance solutions.
(5) Treasury and derivatives services
Our strong local presence in Taiwan provides us with unique advantages. Through collaboration across different business lines and geographical regions, we are able to offer clients comprehensive cross-border solutions. As such, we again maintained our leading position in the Taiwanese derivatives market in 2024, supported by strong product innovation and risk management capabilities and a vast market franchise. In 2023, we took a pioneering step among Taiwanese banks by issuing the first equity-linked structured note. Building on this success, in 2024, our Hong Kong branch further expanded our offerings by issuing another equity-linked structured note. Our continued innovation and market-leading position have received wide international recognition, including being named Derivatives House of the Year, Taiwan by Asia Risk, Best Investment Bank in Taiwan by FinanceAsia, Best Foreign Exchange Bank in Taiwan by Global Finance, and Best Bank for Investment Solutions in Taiwan by The Asset.
Retail banking
CTBC Bank remains a pioneer in retail banking service innovation. In addition to maintaining our significant market share in 2024, we also received 111 international and domestic awards, including Best Bank in Taiwan at Euromoney’s Awards for Excellence 2024, Best Bank in Taiwan at the FinanceAsia Awards 2024, Domestic Retail Bank of the year in Taiwan at Asian Banking & Finance’s Retail Banking Awards 2024, and Best Retail Bank in Taiwan from The Asian Banker for the 18th consecutive year.
With the Bank’s competitive advantages in branding and comprehensive services, our number of retail customers and assets under management have grown steadily, with annual growth in 2024 of 2% and 6%, respectively. Moreover, we continued to maintain the best Net Promoter Score among all Taiwanese financial institutions.
(1) Wealth management
With its open platform strategy, CTBC Bank is able to provide comprehensive and innovative wealth management services and products to meet its diverse customer needs. Our diversified wealth management product lines have contributed to the Bank’s leading position in Taiwan’s wealth management market. Furthermore, our comprehensive wealth management services and transaction platforms meet customers’ financial needs, both online and offline.
(2) Loan services
CTBC Bank has long been dedicated to providing complete financing solutions with multi-channel customer services as well as using a superior risk control mechanism and digital innovation to maintain good asset quality and profitability. Driving digital innovation for our customers is core to our business; such efforts include a digital lending platform that radically simplifies the loan application process and turnaround time, digitizing more parts of the home loan process, and partnering with various e-commerce platforms to provide loan services that fit into customers’ daily lives. This approach of offering a complete financial ecosystem not only provides convenient services for existing customers but also expands our customer base.
(3) Payment services
As part of CTBC Bank’s commitment to providing customers with a convenient payment experience, we continue to partner with retailers and mobile payment platforms. Our customers can utilize payment tools such as credit cards and account linking for a seamless payment experience both online and offline. For example, we have partnered with Chunghwa Telecom Co., Ltd. and Pi Mobile Technology Inc., which are, respectively, the largest integrated telecom service provider in Taiwan and a leading mobile payment service provider collaborating with over 380,000 stores. Together, we have launched a cross-platform system that enables customers to transfer credit card reward points instantly between electronic payment apps such as Chunghwa Telecom’s Hami Pay app and Pi Mobile’s Pi Wallet app.
(4) Overseas financial services
CTBC Bank continues to develop and advance our overseas product offerings to meet our customers’ needs and deepen our relationship with them in different markets. For example, in Thailand, we aim to provide a comprehensive range of retail services, from lending and wealth management to digital offerings. In Japan, we focus on developing the niche market of non-residential lending business. In the U.S., we are continuing to expand our mortgage business and develop new lending products. In other Southeast Asia markets, we are developing digital strategies to provide customers with better financial services.
(5) Digital banking
Our internet and mobile banking services continue to be the most popular in Taiwan thanks to the continual improvement of our platforms’ designs and launch of innovative features, earning us numerous international awards every year. The number of customers using our digital banking services now exceeds 7 million, and with over 600 functions, our mobile banking app boasts the widest functionality in the market. CTBC Bank’s commitment to developing the best internet and mobile banking is centered on helping users to do exactly what they want to do. For example, by emphasizing UI/UX and agile development, we are able to respond to customers’ needs with timely adjustments and thus ensure the best mobile banking experience.
(6) ATM services
CTBC Bank has the largest ATM network in Taiwan. With over 7,500 machines nationwide, we top the list in terms of interbank withdrawal transactions, with a market share of over 40%. Our ATMs continue to be a customer favorite due to our persistence in offering the most convenient ATM services. For example, we provide the largest number of options for cardless withdrawals, including app-created withdrawal codes, QR codes, finger-vein recognition, and facial recognition, allowing customers to choose whichever method suits their needs best. To maintain our leading role in the market, we are constantly advancing our ATM services, such as by expanding our QR code-based cardless withdrawal service to non-CTBC Bank customers, too. In addition, as part of our efforts to promote inclusive finance, our ATMs in Taiwan provide barrier-free services, which have been used by more than 21 million people so far.
