Ladies and gentlemen, good morning. Good afternoon. Thank you for coming to the Q2 investor conference call of KGIFH. We will have President and the Chief Financial Officer of KGIFH, as well as the presidents of subsidiaries talk about their strategies, followed by Q&A session. In that session, we will invite investors and analysts to raise questions. Online questions are also available. If you have any questions, please enter your question in the chat box. After this session, we will stay here for further discussion. I'll pass forward to the President, Paul.
Ladies and gentlemen, investors, friends from the media, good afternoon. Welcome to the meeting today. Today, we are going to talk about the investment and the results of the first half of 2025. As you all know that the NTD appreciate sharply in a very rapid way, that was very rarely seen. This affects KGIFH and the financial industry. Therefore, the performance in the first half of this year compared with the same period last year ran shorter expectation.
However, we are not finding excuses, but excluding the FX effects. If the appreciation had not been so sharp, then we personal from 33 to 30.6 today. Then our performance as well as the subsidiaries performance, excluding securities which were very similar to last year. Other subsidiaries have seen significant improvement. I'll ask Jenny to talk about this in depth. Why I'm talking about this, because I want you to know every subsidiary, including the financial holding.
We are promoting the One KGI strategy. At the end of last year and in the beginning of this year, we achieved our targets. Today, I'd like to change the style. I'll pass forward to Jenny and then ask the presidents of subsidiaries to present the highlights, as well as the performance. At the end of session, I will come back to talk about One KGI performance, as well as our highlights in the later half of this year. Thank you.
Thank you, Paul. Analysts, investors, friends from the media, good afternoon. I will present the financials for KGIFH. KGIFH has reported a net income of TWD 5.9 billion in the first half of the year, falling short of expectations, as mentioned by Paul, due to the sharp appreciation of the NTD between April and May. This impacted the profits of life insurance companies. The exchange rate was 29.9 in June at the end. The number in August returned back to 30.6. If we apply the August rate to June, we wouldn't have such a huge FX loss.
The overall net income of KGIFH saw a improvement year-over-year, as you remember in last session. In 2024, our net income, it also included where is the best except for the year we disposed our buildings. Still, we see some improvement excluding the FX effect. Indeed, during the appreciation of NTD, we are unable to recognize those as a profit in accounting terms, but it directly increased our foreign exchange reserves balance.
Therefore, our shareholders' equity will be more resilient to fluctuations. The total equity decreased due to the appreciation of NTD by 3% to TWD 3.8 trillion. The net worth decreased by 13% to around TWD 267 billion due to losses of OCI overall. Although first half profit fell short the expectation, our sales momentum and our business momentum remains.
In July, the net income was around TWD 5.2 billion, that provides us with more confidence. Turn to the next page, I will touch upon the performance of subsidiaries. KGI Life reported a net income of TWD 1.1 billion due to the FX losses. However, our sales policies increased by 50% year-on-year, also thanks to the investment and dividend income, our pre-hedging recurring yield increased by 19 basis points to 3.67%.
Turning to KGI Bank, in the first half, the net income was TWD 3.4 billion. That was a 17% increase year-on-year, it continued its growth trend with continued improvement across all business targets. Wealth management fee income grew by 31%, loans increased by 14%. Another very important indicator is the strong growth in our demand deposits, the CASA ratio increased by 4% to 44%, that is a higher number.
Also the branch in Hong Kong opened in July, the President will share more on this. Please turn to the next page. KGI Securities net income in the first half was TWD 3.7 billion due to market volatility, also overall trading volumes declined by about 17%, affecting the company's net income. However, it is remarkable in the utilization of its capital, so its ROE is higher than the industry average.
Its wealth management business also continues to grow. For CDIB, tariff uncertainties and appreciation of NTD impacted our position valuation, resulting in a profit of TWD 120 million in the first half of the year. However, we mitigated this by raising TWD 3.9 billion for fundraising, the management fee grew by nearly 30%. In the latter half, we will initiate fundraising for some featured funds, the target is TWD 12 billion. Next page.
This page shows that subsidiaries' capital reserves adequacy. From this, you can see all of the subsidiaries have enough and sufficient capital reserves, ICS testing of KGI Life also meets regulatory requirements. This is my presentation. I will pass forward to the President of KGI Life, Ms. Kuo.
Good afternoon. I will talk about KGI Life's achievements in the second quarter and our performance. Page 14. Excluding agency force in the first half of this year, our FYT reached TWD 36.8 billion, this is a 50% increase year-on-year, mainly due to our continued momentum from different channels, as well as the reintroduction of participating policies in April to meet market and channel demands. Therefore, we have created double-digit growth across every channel. In the latter half this year, we will focus on investment products, foreign currency policies, and participating products.
For strengthened digital operation, we have fully digitized our new policy application, policy change, and claim services, effectively improving efficiency and enhancing the customer experience. The company taps into the opportunities brought about by artificial intelligence. We have completed the development of AI training and established infrastructures. We also have very competitive AI governance standards and offer AI training for all employees.
We also apply AI to different scenarios, including introducing AI Gen, AI Coach for agents, we also became the first insurance company to pilot an AI risk rating system for the elderly. This service allows customers aged 65 and above to maintain access records, their experience will be better for investment returns and transition to IFRS 17 and ICS. In the first half, as Paul mentioned, the TWD appreciated greatly. Our hedging costs increased accordingly.
However, we were able to realize capital gain in different markets, especially in the stock markets. In the later half, with the easing of the exchange rate, we and our group should allocate to foreign exchange reserve. We will be able to be more resilient to the impacts of foreign exchange fluctuation. As of the end of August, the amount of reserves had exceeded TWD 32 billion, our forward trading strategy will focus on reducing hedging costs and accumulating reserves.
Overall, our returns, we will continue to tap into market opportunities and expect our returns to rally in the second half. We are well prepared for IFRS 17 and ICS transition. With our capital meeting requirements, We have confidence in realizing stable profitability in the new system. Please turn to page 15 for premium income and channel mix in Q2.
The FYP increased by 60% year-on-year, higher than the industry average of 35%. The renewal premium reached TWD 39.1 billion, growing by 14% year-on-year, that is higher than the average of 6.9%. The total premium income increased by 25% year-on-year. For product structure, we have to continue to maintain our sales momentum, which also meets market demands.
Therefore, our investment products grew by 123% year-on-year, driven by the expansion of multiple channels. Our FYP across all channels increased by double digits. In the second half, we will continue to sell investment products, participating products, and foreign currency policies in hopes of driving the FYP and CSM to create a more stable foundation for the company. Please turn to page 16, VNB margin and spread.
KGI Life VNB margin, excluding investment products, was approximately 30.2%, which is lower than last year due to the expansion of health insurance sales, which is required by law regulation and higher base period. In addition to sell more foreign currency products and participating products, we also catered to the demand for long-term care.
Our COL was 3.1% at the end of Q2, our return on investment was 2.37% due to market volatility. However, we expect the numbers to recover in the later half. Page 17, page 18. For asset allocation, we center around ALM and adjust our strategies according to the market in order to achieve adequate ALM and maintain robust portfolio. In page 17, we also see different returns for each asset classes. The total investment decreased because of the fluctuating exchange rates. Page 18.
The pre-hedge recurring yields in the second quarter was 3.72%, that was an increase of 19 basis points year-on-year. Due to the ForEx fluctuations, we also used the hedging tools to include swaps and FX price hedge, the cost was around 3.06%.
As mentioned, we allocated an additional of TWD 23.2 billion to the reserves, by the end of August, the number returned back to more than TWD 32 billion. If we factor in the RBC, then in June, our RBC would have been more than 382%. KGI Life will continue to optimize its product strategy, expand diverse channels, and implement robust investment strategy to create stable growth. I'll pass forward to the President of Bank.
Good afternoon. Next, I will talk about KGI strategy. In the second quarter to now, the important goal is to adjust our profit structure, increase the income. Second, to utilize our capital to improve our own number base. We want to expand our customer base and continue to grow our business scale. The following are our four strategic pillars. Please go to page 20. The upper left, One KGI. Under One KGI, we proactively promote customer referral with KGI Life and KGI Securities.
By integrating resources and introducing clients to one another, we start to secure more deposit transfer and services from KGI Securities' settlement accounts. Through the support of the group, we have made good progress. Now, 30% of new bank account openings came from settlement accounts referred to us by KGI Securities. This is a visible result of the One KGI partnership.
Second, the lower left side, wealth management and private banking transformation. For wealth management, we made good progress in the first half. I am glad to say that we have obtained the Wealth Management 2.0 license. We have also commenced operations on July 21. This will boost our fee income. Second is the license in the Asia New Bay Area. It has been submitted to the Banking Bureau, and it is currently being under review.
We will continue to expand our FA team. In August, the number has exceeded 200. Furthermore, in line with the government's policy, we are also transforming our private banking, and plans are already in place across our organization, product, and talent. The third pillar, upper right, consumer banking ecosystem. In July, we have partnered with the largest bookstore in Taiwan, Eslite.
We launched a co-branded card. By the end of August, the amount of card approval has surpassed 10,000. 80% of them are new customers for us. Among them, nearly 80% of them, in addition to credit cards, they have also opened digital accounts. We hope through our cooperation, we can accelerate our customer acquisition.
Second, regarding new business, we have received the crypto custody license by the regulator. We will start the operation soon, since we are the first authorized to conduct crypto asset custody business. Fourth, the overseas business. I am delighted to share with you that for our overseas expansion on July 21, our Hong Kong branch has officially opened. Now our most important goal is to streamline the account opening process and to have new customers coming in.
We will serve institutional Taiwanese investors overseas. We will work with KGI Asia Limited and CDIB to leverage the One KGI synergy. After operating for a while, we plan to apply for wealth management license from HKMA. These are the four important strategies that I would like to share with you today. Next slide.
This is our profit performance. Due to the four strategies, they are all progressing forward, resulting in a very stable net revenue growth of 9% year-on-year in the first half. I want to highlight fee income. There is a 19% increase. This is mainly driven by wealth management income, which saw 31% growth YoY, and this is due to expansion of our wealth management team and also the increase of our capacity. In the lower part is efficiency indicators. We are very mindful of increasing our efficiency.
NIM in the first half has increased by four bps, and this is mainly due to the improvement in net bond spread and also adjustment to our asset structure, resulting in an increase in loan proportion. In addition to loans, we hope that our liability can also grow along with our business growth. We focus on NPL for our lending, and because NPL is around 0.17%, this is about the same as the industry level, 0.15%.
In addition to adjusting our NPL policy to align more closely with the industry, we accelerated the write-off of bad debt last year, and these two measures have further improved our asset quality. Next slide, our balance sheet. We can see our overall lending is increasing. Whether it is SMEs, consumer loans, mortgage, or large corporations, we all see double-digit growth. This is a very developed and balanced growth.
We are also mindful of whether deposits are keeping pace with this growth. I just mentioned 30% of new customer came from KGI's referral, and this is also reflected in the significant increase in CASA ratio. Next, I will like to pass the floor to the President of KGI Securities.
Friends from the media, investors. Next, I will talk about KGI Securities. Our strategy focus on brokerages and wealth management. For wealth management, in the first half of the year, we continue to expand our domestic and overseas teams, and we have recruited accountants, tax, and lawyers to provide comprehensive financial and legacy planning services, offering investment consultation services to our clients. This is our goal: to provide comprehensive financial services. And we also encourage the transformation of our sales teams.
We encourage them in branches to attain professional certification like our AFP, WMP. These consulting services is our strength in our wealth management business. And for our diversified products, in addition to structured products, ETFs, funds, in the second half of the year, we will work with KGI Life, and we will launch exclusive insurance products, and we will work with CDIB to launch new PE products.
In addition to these products and services, we are also optimizing our systems, whether it is mid- and backend systems. We will upgrade them to improve our customer experience. And we continue to enhance our R2R services. Based on customer in different region, we will provide differentiated services. In the first half of the year, we have opened new branches for wealth management in Tianmu and Zhubei.
We want to provide services like private banking and in terms of transaction based on the needs of different customer groups, like high-frequency trading or program trading for the younger generation to regular customers. The apps that they use in their mobile phones, we continue to upgrade and optimize them to satisfy their different needs.
Lastly, in our One KGI strategy, whether it is the customer referral or product introduction, we will continue to work with subsidiaries to create our group synergy. And in the second half of the year, like I said before, we will work with KGI Life on the exclusive insurance product, and we will work with CDIB to launch PE product to cater to high-net-worth customers to satisfy their asset allocation needs. Next. Our net revenue and our AUM. Jenny have mentioned this briefly in the beginning.
We can see that in the first half of the year, our net revenue has decreased year-on-year. This is mainly due to two reasons. First, the FX appreciation of NTD, and also the tariff, the uncertainty in the first half of the year. That is why the turnover in the first half of the year has reduced around 20%, and this has affected us.
The uncertainty starting from April leading to the volatility in the stock market. For brokerage commission, it also dropped year-on-year because in the first half of the year, due to uncertainty, some customers delayed their investment to the second half. That is why the revenue in the first half is lower. On the right, we can see our wealth management business, it is growing steadily. We continue to strengthen our wealth management sales team.
In this regard, our business continue to grow and the degree is not as big as the past, but this is because of the appreciation of NTD. Therefore, our overall AUM was affected. If we exclude FX factor, our growth is close to 10%, 9.4% actually. For our market position, Jenny also mentioned this in the beginning. In the first half, our financial figures compared to last year is not as good, but our ROE still stands at 12%, higher than the industry average. For our market position, in the past, it is roughly the same, but for ECM and DCM, it seems it is not as good.
Because of part of customers defer their investments, in July, we can see that both ECM and DCM went back to second place, and we are confident that we will return to the leading position by the end of this year. This is the performance of KGI. Next, I would like to pass the floor to Kate from KGI Bank.
Friends from the media, investors, good afternoon. As you can see on this slide, our AUM, there are two parts. One is institutional customer, one is owned by customer, this is for retail only. To increase retail AUM, there are a few factors. First, to improve brand visibility, we need to let more investors know us. We need to have new products, new services, to have a much effective process.
In addition to visibility, we also need to have complete product line and also a digital optimization. We need to be data-driven to make it more efficient. Number four is One KGI. We want to create synergy. To increase our AUM, in 2022, we launched our first retail ETF. As of now, we have seven ETFs. We want investors to accumulate assets, they want capital gains or dividends.
We want let customers understand what they are investing in. In 2025, we launched two style ETFs. One is for capital appreciation, capital gain, the other is for dividends. These two ETFs are the first style ETFs in Taiwan. In the beginning, it is quite difficult to have such products. All the innovations that we made are for investors. This is our mission.
We are a latecomer, it is difficult to build our brand. We need to continue to innovate. This is what I would like to highlight on our retail strategy. Next slide. We first focus on the institutional investors. In the past, institutional investor accounts for 80%-90%. Once we enter retail, now 40% are retail, the others are institution.
We want to continue to develop these dual engines. We will continue to work hard on our retail business through our innovation, through our products and services. We can have deeper interaction, the investor know how to utilize some of these products. This is what we want to bring to investors. For retail ETF, in addition to launch new product, communicating, training investors are also important. In April, whether it is tariff or FX, due to these two impacts, our AUM dropped.
Now AUM has climbed back to TWD 300 billion. We do not wait for crisis. We need to turn it into opportunities. Next slide. ETF market is very popular. The beneficiary is around 15 million. Some of them are for retirement. Usually, home buyers do not exceed 40%. If we look at the AUM of ETF in Taiwan, they account for 48%. Will it continue to increase? In addition to Taiwan stock ETFs, we also bring overseas ETFs to investors. Asset allocation is what we need to focus on as a fund company. This is what I want to highlight. Next, I would like to pass the floor to CDIB now.
Good afternoon. Next, I will talk about the operation of CDIB in the first half of 2025. Our strategy remains the same: to grow our AUM, increase our management fee to expand to make our income more stable. As of June 30, our principal investment, we have reached TWD 93.8 billion. Although there are uncertainties, moving forward, we will move towards our TWD 100 billion goal. Next slide. This includes our AUM.
In the first half, our new funds, TWD 3.9 billion, came from Taiwan Japan Cross-Border Innovation Fund, Taiwan Development Fund, FK and development fund investing in new retail economy. After deducting TWD 1 billion in investor returns, the net increase in AUM was TWD 2.7 billion, reaching TWD 59.3 billion, a 24% increase. In addition to the four funds, we have three funds now under preparation. First, with the third biomedical fund, the RMB fund, PE fund, co-investment fund in USD.
These two funds will be our main driver in the second half of the year. For the USD fund, the PE co-investment fund, as Paul and Kate have mentioned this is our focus for our Wealth Management 2.0. Next slide. For principal investments, in the first half, it was TWD 34.5 billion, a TWD 1.5 billion decrease compared to the beginning of the year and year-over-year.
This is mainly due to FX losses in some USD and JPY positions. Taiwan proportion of the portfolios decreased from TWD 15.6 billion at the end of last year to TWD 13.8 billion. This is because the main operating location of one investment target moved out of Taiwan, thus shifting the investment from Taiwan to international market. For fee income, we maintain $100 million-$120 million USD position with coupon rate maintaining at 11.9%.
In the second half of the year, in addition to Wealth Management 2.0, we will also focus on maintaining asset quality. Our overall current investment return is 1.8%. This is lower than MSCI, but higher than TAIEX, negative 2.4%. This is because most our positions are SMEs, unlisted companies in Taiwan, and we focus on different assets.
Our fluctuation actually is smaller than the TAIEX. For our fee income, we have reached TWD 370 million, increasing yearly 29%. Next slide. This is our new business strategy at One KGI. For the Asian Asset Management Center policy, CDIB, whether it's our experience in private asset like fund, equity fund, we have accumulated certain experience, and we have overseas professional team. In Taiwan, in addition to CDIB, we have other affiliated businesses. How can we utilize these resources to let family investors to have more options?
Under this strategy, we have finished the preparation of a co-investment fund in the hope of launching new product for high-net-worth investor, for them to have more options. Under One KGI Financial and KGIB have both obtained Wealth Management 2.0 license, and they are our primary project moving forward.
Thank you, Melanie. Today I'm going to talk about our achievements from the financial holding side. One KGI is framed for that. We iterated the term many times. I'd like to revisit the four pillars of the framework and talk about why these are very important. First is service. This service should be integrated and singular. What I mean by singular is that the customers can interact with a single contact, which can offer comprehensive solutions and services.
Second, experience. We hope to provide customized solutions and experience by applying aligned control across subsidiaries. Third, cross-sale synergy. This is the most challenging to me. I have to figure out a way for our colleagues to be reviewed by fair performance review to enable them to increase their ability while serving the company. It's easier said than done, and this is the focus area of the financial measurement department.
The last one is process. We apply IT tech and AI to increase benefits and reduce costs, and better serve our customers. We did a lot of things to achieve our targets. Many achievements can be shared, but we focus on four. In the first half, we made an inventory of customers of securities and banks, and we look at the clients having relationships with both KGI Bank and KGI Securities, and the percentage was 53%. I hope the number to increase 100% and it's a long way to go. Also, KGI Securities referred KGI Bank account opening ratio reached 31% in the first half, and that was a 135% increase year-on-year. Securities clients dealt via bank ratio was 27%, and there's still room for improvement.
If you look at the demand deposits percentage, it's around 38%-40%, it was the first time that we exceed 40%, reaching 44% in one go, that was very good and remarkable. Last but not the least, growth rate of KGI Life referred three-in-one account openings in KGI Securities increased by 69%. In the later half, as you can see on your right, the NROI, the tech ROI compared with their peers, they are really remarkable, and they are leader in that area.
What we are doing is to utilize all of the channels to offer excellent products provided by us, sold by sites. KGI Life also mentioned that it's selling investment products, and how to integrate the site product with the insurance product now is the focus of the later half. KGIB has developed products catered to high-net-worth customers and family office.
WM2.0 and private banking services mentioned by the government are challenging because customers do not believe WM2.0 is aligned to the services offered and product offered. We need a more diverse range of products for promoting WM2.0. Over the years, we have tried our best to develop products tailored to the needs of Taiwanese investors, and we are more experienced in this area. Melanie mentioned that in the later half, we will pack the international opportunities into products for Taiwanese investors, and that is challenging as well. In addition, we also need to develop overseas and instill One KGI into our overseas operations.
In public events, I would seldom mention that KGI Securities has experience operating in Hong Kong more than 20 years and in Singapore more than 15 years, and they have accumulated a lot of good customers and developed a diverse range of products turning to Hong Kong, which is the hub of finance internationally.
There are many high-net-worth individuals coming from Taiwan, Hong Kong, and China. With our effort, it didn't exclude global [Inaudible] members, we take the lead in the market in Hong Kong. Our wealth management business increased by 50% this year. Our short comment in this area has been the platform availability. If the customer wants to transact with us, then they need to wire the money to their banks, and it's a risk for us to lose these customers.
Therefore, we are trying to manage banking service in Hong Kong, and we are able to apply One KGI philosophy in Hong Kong. Securities, according to the president, the ROE of securities remains at more than 15%. I think that's number one or number two in terms of ROE, that the overall number is 12%, because 30% of our assets are located in Thailand, Singapore, and Hong Kong. With the One KGI platform, we are trying to drive the ROE in Taiwan.
Singapore is a very huge international market. In addition to fixed income, commodities, including energy trading, are popular in Singapore. Our securities in Singapore, they trail in both equities and commodities and trades. It ranked number five in Singapore among global competitors.
In addition to corporate clients, we see an increase in numbers of customers from ASEAN and Middle East to us, and how to integrate banking services and security services is one of our focuses in the latter half this year. Along with the policy of the government to build the AMCs. As you know, the asset owned by high-net-worth individuals overseas is higher than what they have in Taiwan, so a cross-border platform is beneficial to them. So integrating our international operations and our operations in AAMC into a singular yet comprehensive solution is our goal for the later half. We will try to achieve the goals in the previous page, and I'll stop here and open the floor for questions.
I would like to open the floor to analysts and institutional investors.
From the securities, I want to ask KGI Life, because next year we need to align with IFRS 17. Can you share the CSM accumulation and also your policy cost level moving forward? For ICS, after calculation, what's the percentage for ICS next year?
Second, for KGI Life as well, pre-hedging return yield, the direction, and also the yield for new money. As of now, cash dividend income, what's the amount? Is it more than that of last year? For KGI Life, we see from the financial report as of June, that OCI loss is around TWD 40 billion. Can you talk about the proportion of shares and debts? Also, in the recent two years, the investment market is performing better. Has the OCI improved? Regarding bank.
We can see on this slide, NIM, this includes swap. What's the swap income in the current half, and what's the number excluding swap? Compared to last year, is there an increase or decrease? Is there a Fed analysis because the U.S. will cut rates moving forward? If cuts rates by one quarter percentage point, what's the impact on the bank? Is it positive or negative? Another question, what's the credit level moving forward for the second half of the year? The outlook for a year.
I will talk about IFRS for the CSM accumulation. It's one of our strategies, so the numbers will depend on the economy by the end of this year, and we will make announcements then. The policy cost after transition. The step is valued according to market interest rates. So as on probably the number of weeks appears, it's around 2%-3%.
The testimony is currently 150% is our goal. According to the transition measures, we are able to meet our goal. The return yield direction. In the first half, our number was 3.76%. Our guidance for the whole year is lower. Because in the future, we will have opportunity to increase our position of equity investment. But you know, dividends are paid and then for cash. So the return yields will range between 3.6%-3.7% or lower. The cash dividends will be pretty much the same. It's around TWD 7 billion. As for OCI, at the end of July, it came from bonds. The improvement is more than TWD 13 billion.
There are three questions regarding the bank. First, for spreads. In the first half, including swap gain, is 1.33%. The swap impact is around 19-20 basis points, so it is around 20. The impact of swap has decreased. Last year, the impact was 35-40 basis points. Now it is below 20 basis points. Swap in the first half is around TWD 800 million-TWD 900 million, a drop of around 40% compared to last year. If rate cuts are spread, if we look at U.S. assets, U.S. debt is short-term, and our asset is low. The repricing duration is longer.
Moving forward, if there are rate cuts, our deposit cost will drop faster compared to asset gains. In short, our sensitivity analysis, if there is a rate cut, our overall NIM impact is positive. We look forward to this happening. Indeed, in the first half our retail and corporate banking, there are some retrieval. The credit cost is lower, but our loan quality is still stable. For the entire year, our credit cost is around 15-20 basis points. There will not be allocation for individual cases.
Any other questions from the floor? If there are no questions, we will reply the question raised online. The first question actually directed to KGI Bank. Due to the charge policies, the quality of corporate clients for KGI Bank, will it improve or change? The other one is for the life insurance company. The released reserves impacted the ICS and the transitional measures.
Will the transitional measures have positive or negative impact on life insurance for CDIB? Last year, the valuation of healthcare funds was not good. The performance this year was good. Still, the profitability did not reflect. Why is that? What are the industries impacting this? The dividend ratio in 2024 could serve as a risk reference for the future. If the net income is affected by the exchange rate, will the dividend payout be affected?
For bank, the tariff policies impact on the asset quality of corporate clients. I think this corporate business and cash remain stable, so that's not risky. We also look at traditional industries with more than 50% of exposure. The number is around TWD 4.9 billion, accounting for 1% of our corporate loan, so the risk is bearable.
Having said that, for the affected customers, we will monitor their cash and their account structures, and we will continue to monitor the measures provided by the government for the exporter transformation, and we will offer the best service in time. For life, in July, we released our reserves will impact our net worth. We didn't see any changes. Although we released more than TWD 20 billion as within our plan, but its impact on our net worth will be dependent on the situation by the end of the year.
Second, the FSC is reviewing transitional measures, which has been under discussion, we do not know the details. According to news, the regulators believe that the new system shouldn't reverse the order of the industry. For dividend policy, as now, September, there's still some time. The biggest uncertainty is the market performance from now to the end of December.
July marks a good beginning of the latter half of this year. All the subsidiaries are operating stably, I look forward to the latter half. As for the amount of dividends, this depends on the market expectation and the capital reserve adequacy. I am unable to go into details because this is dependent on the market performance and needs. For CDIB, the profit, the performance with the benchmark, the overall ROI is 1.8%.
It's higher than TAIEX, lower than MSCI World Index due to the uncertainties caused by tariff policies and the Asian equity market. As you can see on page 34, MSCI World Index increased by 8.6% in the first half, the number of TAIEX dropped by 3.4%, ETF contribute more to our momentum. Benefiting from ETF performance, these companies are benefiting.
If we exclude the corporate big names, that's more comparable. For example, we exclude TSMC. The TAIEX dropped by 2.9%. Capital returns also impacted by the FX mark-to-market valuation. Excluding this, our ROI would have been 2.4% rather than the TAIEX. Yes.
Thank you for coming today. We do not have further questions. The management will stay and engage with the media. If you have any questions, please do not hesitate to contact us. Thank you.