Today's agenda, our president, CFO, and presidents from the KGI Life, Bank, Securities side, and CDIB Capital to introduce the first -half performance result. The second session is the Q&A session. We will welcome the questions from the attendees here. After the meeting, we will also exchange ideas with the friends from media. Now I'll hand over to the CEO of the Holding Company, Paul Yang.
Dear investment partners and media friends, good afternoon. I'm really happy to meet you here representing KGI Financial Holding Co. The last time I'm holding this investment conference call, it was eight years ago, and I've seen some familiar faces and some new friends. I am very pleased to see you here.
I'll save most of the time for our CFO and presidents in our subsidiaries to talk about the first -half financial performances and the strategies in the second half and deliverables. I will share about the key strategies from the holding companies first. In the middle of the slide, there are three key strategies. First, to accelerate the growth in the group. You know we rebrand to KGI from CDF. This is not only just a renaming, this is a milestone for us, and it will also bring positive impact to our company. I believe you're all familiar with our background of CDF and the relations between CDF and KGI. Most of the investors in the market or consumers, they're not familiar with the meaning or history of CDF. Most of the people cannot connect CDF with KGI Life or KGI Securities.
Sometimes I joke with my colleagues, CDF is some of the companies having the most shareholders but few employees. We have 850,000 customers, but not all of them understand our business. People who hold 100,000 shares of CDF's stocks, and there's less than 1,000 are actually doing business with our subsidiaries, and within them, most of them are our employees. We didn't fully utilize the resources in our holding company. Secondly, we did not integrate our brand effectively. We didn't do any marketing campaigns effectively. It's hard to imagine a big holding company will still have the traditional concept of B2B business model. After the renaming, in the following months, you will see the marketing campaigns and relevant activities. The public will know who we are, who is KGI, and we will have a new brand image. This is one way to accelerate growth.
Secondly is co-marketing and cross-selling. In other holding companies, the scale of the subsidiaries may be similar, so cross-selling is a benefit for them. Here we have large lifer, we have large Securities, but Bank and CDIB Capital are relatively small, so cross-selling is necessary for us. Our team spent a lot of efforts to investigate how to conduct cross-selling compliant with the regulation, and we developed a strategy named ONE KGI, and how to integrate the Bank, Securities, and other businesses together. This is a challenge for our management team. We spent a lot of efforts, and we believe you will see the result. That's the first strategy.
Secondly is to strengthen the balance sheet and the financial conditions. The detail will be shared by our CFO. Previously, a lot of the financial analysts have questioned about our double leverage ratio and other financial indicators because it is on the edge of the regulatory limits. Currently, those indicators are within the range of the regulations. Compared with the beginning of the year, our balance sheet items will improve as time goes by, and they are all meeting our expectations. I can promise you, unless there are M&A requirements, if it can add value to our shareholders, then we will not have any dilution of fund expectations. Thirdly, our dividend policy. I also discussed with our team internally. This is our responsibility of the management. We need to change the situation. We are among the holding companies who are making money.
Our P/B is less than one. This is hugely undervalued for our share price. There are reasons, but one reason may be some investors, they have concerns about our leverage ratio. By now, this concern should be lifted. We also understand most of the investors select financial stocks. They expect for a stable dividend policy. In the past few years, I have to say sorry, and I apologize to you. We decided it one year by one year. We did not have a long-term strategy. We did not provide an expectable and growth dividend policy in the past. Here, this will be our top priority because we know the stock market, the ETF, has a majority share in the stock market.
In the stock picking rules in the ETF, they will look at the dividend payout histories. A lot of investors prefer financial companies due to the stable dividend policies. In the future, we will not manage the dividend payout one year by one year. We will have a long-term arrangement. Once this is improved, we believe we will attract more investors, and the investors will have more confidence in our Holding Company. Now I will hand over to our CFO. I will answer your questions in the Q&A session.
Dear investors and friends from the media, good afternoon. I will talk about our financial performance with you. In the first half, we delivered an outstanding performance. The profit was TWD 17 billion, a surge of 67% year-on-year, primarily driven by the KGI life insurance and KGI Securities subsidiaries. From this chart, we can see the subsidiaries asset all growing.
The consolidated net worth rebounded to TWD 3.9 trillion, a 7% increase. For holding companies who has a larger life insurance company, net worth is very important. It depends on how can we pay dividends and how much resources we can utilize. Our net worth from the end of last year contributed by the profit, a growing profit, and OCI growth. It reached almost TWD 30 billion, and a growth rate of 13% compared with the end of last year. Next page. I will share about the performance of the subsidiaries. KGI Life's net income is approximately TWD 11.2 billion. A significant increase of 123% year-on-year, mainly due to the investment income growth and the hedging cost is reduced. In addition, the consolidated P&L is also growing. It recovered TWD 24 billion this year, mainly due to the valuation rebound from the stock positions.
In terms of policy sales, the FYP of regular paid premium accounted for 54% of the overall FYP. This is benefit to integrate with the IFRS and IFRS 17. In terms of the sales channel, for our agencies channel growth is a really important policy direction for us. In the first half, the contribution from the agency channel improved or grew by 20%. As for the investment positions, our investment income is doing well. The overall gain is over TWD 40 billion, a 30% increase year-on-year. We'll move to KGI Bank. Even though KGI Bank's profit slightly decreased after tax, that is due to in the first half, our loan growth as well as the provision. If we look at the pre-provision operating profit, it actually grew 20% year-on-year. To grow the scale of the bank is the top priority for KGI Bank.
In the first half, it doesn't matter in retail or corporate banking, the momentum was really strong. The loan scale grew 13% year-on-year. In terms of the profit structure, the fee income from wealth management and loan, it grew nearly 50% this year. The fee income accounted for a growing share of our revenue. It can maintain a stable income for KGI Bank. For KGI Securities. In the first half, net income was TWD 5.5 billion, the ROE outperformed the peers at 18.5%. The market trading volume has reached TWD 500 billion, in brokerage business, we ranked number two, the overall brokerage fee income improved more than 50%, including proprietary trading and other business, they all grew together, including the other business, we all ranked top.
We have tried to transform our business to wealth management business, and now we can see the result. In addition to the growth of wealth management business contribution, we can also see the wealth management asset increased at 40%. In terms of CDIB, influenced by the valuation fluctuation of the overseas portfolio, the income was only TWD 300 million, less than expected. The fundraising of the four new funds contributed TWD 8.5 billion in AUM. Therefore, the AUM now reached TWD 62.4 billion, a 16% increase year-on-year. Furthermore, the green energy supply chain platform was established, that is the Kai-Hong Energy. After the establishment of this platform, the commitment reached more than TWD 2 billion. It will continue to expand our fundraise, we will also continue to raise fund and add new investment. This is our capital status and structure.
Actually, in 2022, our double leverage ratio was over 125. We tried to reduce the ratio. Now we are at 119%, it is stable and within the regulatory requirement. The capital adequacy ratio of the subsidiaries are all stable within the range. To maintain the financial health is our target. I'll hand over to the President of KGI Life.
Analysts, friends from the media, good afternoon. Next, I will talk about the progress KGI Life has made in the second quarter. Continuing on the three pillars that we mentioned last time. First, strengthening agency channel. We hope that after three years, the percentage can go up to 60%. In the first half of the year, the FYP grew by 23% YoY, demonstrating that we are heading towards the right direction. We offer training courses and over 700 hours of online training, and relevant subsidies to continue to build our agency force. For new residents in Taiwan, there is around one million. In addition to providing protection, we also recruit new residents to become a part of our team. We will provide quality service to ensure the entire process.
For IFRS 17 according to regulation, we have finished the development of our system. We look forward to the localization of ICS so that the insurance industry can develop more stably. The first half of the year, our net income is around TWD 11 billion. Our net worth has reached TWD 184 billion, and net worth ratio has gone up from 6.4% to 7.7%. We continue to optimize ALM to increase the percentage of foreign currency policy of FYP excluding ILP. It has reached 63%, up a lot from last year. We will continue to match our asset and liability and to adjust the allocation flexibly. We will pay close attention to global market trend to pursue long-term stable investment performance. Next, we will talk about the first half of the year and our operation results.
We can see that our FYP mix, the regular pay, has accounted for 54%. We continue to strengthen our agency channel to offer training to improve their capability. The percentage of agency channel has reached 42%, and this shows our dedication to our agency channel. For FYPE, the traditional product has reached 91%. It shows the result of our strategy. We will continue to accumulate CSM to build a solid foundation. Next slide. For VNB and investment spread, through optimizing our product mix, KGI Life, our VNB has increased 4% YoY. VNB margin reached 43.5%. If we exclude ILP, the number is 48.3%. This shows our dedication to bring up our product value. In terms of investment spread, in the first half of the year, COL 3.06%, ROI 3.95%, the spread has reached 89 basis points. Next slide.
Our investment portfolio, we have offered the weight and returns of each asset. Our strategy still focuses on ALM. We will make adjustment based on market conditions to make sure that our asset s match our life of liability. Next slide. Pre-hedge recurring yield 3.57%. This is because of the difference of dividend give out. The hedging cost is 0.91%. It has decreased a lot YoY due to a strong USD. Our FX reserve has reached TWD 16.79 billion, has increased by more than TWD 7 billion. It shows our hedging strategy. It offers a buffer for us moving forward. We will continue to optimize our product strategy, focus on agency channel, stable investment strategy so that we can create long-term stable profit moving forward. Next, I will like to pass the mic to the President of KGI Bank.
Investors, friends from media, good afternoon. Next, I will talk about our performance in the last quarter. For consumer finance, we continue to launch new product and continue to expand our consumer finance. For example, we have launched a new digital account and a credit card. We want to attract younger consumers. We have also launched dual currency credit card, and this is also very popular. We want to create the most efficient online loan process to satisfy customers' need. Through our new credit review platform, utilizing the government's MyData information, we enable a swift review process and no document is required. Ensuring a fast review and loan disbursement process. We continue to leverage our resources to differentiate ourselves through the cooperation of different subs. We can offer more timely and comprehensive services. Second, for corporate finance, we continue to focus on big corporations within Taiwan and outside of Taiwan.
For example, ESG-related, industry-related, project finance, et cetera. For syndicated loan and project financing, the fee has increased by 40%, and green credit is our focus. It has grown 38%. In addition to our loan process, our investment AUM has increased by 40%. To develop our business in the Greater China Region, we have submitted our application to set up our first overseas branch so that we can offer more comprehensive services. Third, fee income and demand deposits. The wealth management business continue its strong momentum from the previous quarter. We continue to expand our wealth management team through integration of resources.
We work with KGI SITE and KGI Life to offer solutions that include investment, insurance. Through the cooperation of KGIS and KGI SITE, we offer market insights to our customers. We continue to optimize our corporate cash flow platform through co-marketing. We offer diversified financial products. Next slide. Our net revenue is TWD 4.9 billion, up 14%. This is due to loan growth, especially our fee income has increased over 40%, especially for wealth management, it has increased over 50%. For loan, it has also increased by over 30%. For NIM and spread, it's 1.29% and 2.06%. For NPL and its ratio, it remains flat. The total credit cost will be around 0.2%-0.25%. Next slide. Loan growth. Loan grew by 13% YoY. Consumer and corporate banking saw double-digit growth.
We will continue to optimize our loan structure so that we can hit our annual targets. For deposits, it improved by roughly 2%. We have a lot of campaigns to stimulate our deposits. This is a brief capture of our performance in the first half of the year. Next, KGIS.
Friends from the media, investors, good afternoon. Next, I will talk about the performance of KGIS in the second quarter. Last season, we've mentioned our key business plan this year is to continue to drive brokerage and wealth management services. For our service platform, recently, we partnered with UBS. We will implement an advanced cloud-based automated portfolio management tool. It is called Wealth Planning System, fully upgrade KGIS wealth planning and asset allocation services. Through the assistance of this system, each financial consultant can automatically review clients' investment portfolios and create customized asset planning reports.
When global market conditions change, financial consultants can also promptly notify clients to rebalance their portfolio, ensuring proper asset allocation. We continue to transform our branch to convert sales personnel into financial consultants. In the first half of the year, nearly 1,000 personnel, accounting for over 80%, has been converted. At the same time, we are supported by a team of eight experts specializing in different areas, such as law, taxation, insurance, and investment. We continue to work with other companies in different sectors. Our partnership with LINE Bank and Far EasTone Telecommunications has went live early April. We will work with Chunghwa Post. The partnership with Zuvio has been quite some time. We have established a wealth management section and online courses, which has accumulated over 400,000 views. On YouTube, our views has also exceeded 7 million. Our LINE friends are close to 2 million.
Embodying the spirit of ONE KGI, we integrate bank and life insurance resources to provide clients with one-stop services. We continue to deepen cross-subsidiary cooperation. Currently, our insurance agents obtaining relevant certification in securities has reached close to 14,000. For overseas business, although Taiwan has shown strong performance in the Asian market, KGI's overseas progress remains steady. Singapore business has grew a lot over the past two years. Our overall focus for overseas continue to focus on regional wealth management, this include recruiting new executives, restructuring product and business support teams, integrating cross-regional research teams and product planning resources. We extend existing strength of our Taiwan team to overseas markets. Next. Our net revenues continue to grow, up to 43% YoY. Brokerage income increased. AUM revenue, it has seen positive growth, benefited from the Taiwan stock market. In July, Taiwan stock market fluctuated through sells.
In our online platform, we remind investors to have prudent asset allocation. Last but not least, KGI's profitability and business achievement. We are in the leading position in the market. Our ROE has reached 18.5, up YoY and better than their peers. This is my report. Next, I would like to pass the floor to Ann from KGI SITE.
Friends from the media, investors, good afternoon. We are glad to present before you for the first time. Next slide. We have started our transformation from 2018, our asset has grown 32 x. This, we are the top 10 SITEs in Taiwan. Our strategy and its direction, we want to expand our clientele, to offer products that customer needs, and to better our performance so that customers are satisfied with our products.
In our three strategies, you can see that on the top is our understanding towards our customers, whether it's institutional or individual investor, we want to launch product that satisfy their needs. With that differentiation, we need to execute. You can see on the bottom, we need to deliver outstanding performances. This is our goal in terms of investment strategy and our three main directions. Next slide. We can see that starting from 2018, joining the main battlefield, there was only fixed -income ETF for institutional investors. By 2022, the demand for ETF has grown drastically. In August 2022, we entered stock ETF market, and now we have six equity ETF. Fourth, equity -related to bond -related ETF for investors to choose. Because we are a latecomer in terms of equity ETF, we cannot do me-too products. That's why I want to explain further.
High dividend ETF, it is very popular in Taiwan, we also want to participate in this area. We have launched our first high dividend ETF 00915. The performance, as you can see, is very outstanding. For the global ETF, 00926, the performance is also very good. We believe that if we can provide product customer needs and to have good performance, gradually our scale can grow little by little. This is my report. Thank you. Next, I would like to pass the floor to Melanie from CDIB Capital.
Good afternoon. Please turn to page 31. Our strategy in the past two years is a transformation based on customers' orientation, we also want to enhance our stability of return. Last time we talk about we did two waves of transformation. The first round came in 2013. We launched our first externally rated VC fund, transitioning from an investor to a fund manager. Our investment asset grew from TWD 75.6 billion -TWD 98.4 billion. After a decade, the AUM for asset management has grown to TWD 62.4 billion. This is 10x higher than 10 years ago. Starting from 2023, we kicked off with a second round of transformation, shifting to become a provider of services and products for multi-asset class private investments. We have three direction for transformation. The first is to diversify asset classes.
In addition to growth equity investments, we have also included dual asset transformation, high yield overseas private debt, and buyout investment to assist Taiwanese business and families enterprises in Asia Pacific region who has the need to do succession planning and transformation. We also go beyond the original international investment business in Taiwan. We extend the reach alongside overseas development to Japan, United States, and even Southeast Asia. We have also have customer-oriented, flexible service model. In addition to the original needs from our original customers, we move beyond the thematic fund packages to offer customized investment solutions and products suited to the high net worth wealth management markets. We have seen a TWD 8.5 billion AUM coming from that. Investing in Taiwan's business is a core advantage of CDIB. We focus on innovation, healthcare, new infrastructure, and Taiwan strength.
Among those four thematics, the size of funds are about billions. If we calculated and each group of the investment has amounted above TWD 1 billion. We have also invested in overseas markets and launched our first PE fund in Hong Kong. With our extensive network, we have brought in good opportunities for investment. We have also launched co-investment products to allow customers with more options in the Wealth Management 2.0 markets. With our 65 years of experience in investment and a investment team of over 90 members, our headquarters is in Taipei. We reach along in Hong Kong, Shanghai, New York, and Tokyo. We are well-positioned to become a solution provider. We have also been awarded an Asian Asset Management Awards. The external markets also recognize our achievement. Next page. This page details the main funds launch in 2024. The darker blues one are officially raised.
The lighter ones are in the planning stage, for your reference. As of end of August, the Innolux II , Kai-Hong, and the buyout funds have been closed, respectively. The AUM will reach TWD 67.4 billion. In the next few months, we will continue to raise fund for CDIB-TEN Capital Fund to provide more high net worth products in private equity and private debt. Our AUM as of H1 has grown 16% and grow by TWD 8.5 billion. About half of them are denominated in the U.S. dollars, and one-third of them in Taiwanese dollar. In terms of our principal investment portfolio, we have invested more than 40% in Taiwan and one-third in China. The equity investment position are mainly in Taiwanese business. We have very balanced distribution over our investment positions and areas. The next page, the investment-related gains and losses are still the primary source of our profits.
Over 80% of our positions are unlisted positions, so it doesn't really pose great fluctuation. In order to maintain a stable performance, we want to grow AUM to increase our fee income. This year's fee income has been flat, but we believe we can see a growth as the new funds close respectively, and we will also increase in the positioning of foreign currency private debt positions. We've already built a position of TWD 3 billion. The coupon rate is about 11.8%, and in the future, the interest income will become our main source of income as well. I will turn over to the MC.
Thank you for all the precedents. Now we'll enter our Q&A session, and we'll open the floor for the institutional investor. Please tell us your name and which company you're representing once you are handed over the mic.
Since we have also a participant online, if you have questions, you can also use the chat function to leave a message for us.
This is Morgan Stanley's Jamie. I have a few questions for KGI Bank. U.S. is about to cut rates, and the liquidity in Taiwan has become tightening, so I wonder what is your expect for NIM for the following quarters? In terms for fee income, you have great momentum in the first half. Is there a target for a whole year growth or a range of growth? Second question is to life. The new FX reserve mechanism, what is the size that you can move to the FX reserve? Are there any intention of you to join the new mechanism in a short period of time?
Next, in terms of recurring yield, you said that because you recognized the dividend at a later stage, so the spread has decreased. Are you going to project a spread flat comparing to last year? Next is on VNB margin. You have seen a slight growth. This is because the regular pay products has increased its percentage, or its VNB margin have also improved. Also, the CSM growth, is it the same as the VNB growth? Earlier, Paul also mentioned that you are not going to view your dividend policy year by year, but you are going to view it in terms of market yield. Since you have a smaller bank, and life and securities have seen a bigger fluctuation comparing to the other entities. How are you going to convey your dividend policy?
Is it based on payout ratio, or you want to maintain a stable but growing dividend payout?
For your first question, I believe the market expect Fed will start to cut rate in September. We have a simulation in this year. There's no significant change, but for our bond position invested in the past, our OCI has recovered. That's certain. As for the fee income of Wealth Management, this year's momentum comes from the overall investment atmosphere. This year, our strategy is also aligned with the market trend, including KGI Life's and KGI Securities products. They offered various product for the customers. We believe we can maintain a growth of 50%-60%, and that's all.
For FX reserves, last week, FSC made the announcement. For other reserves, it can increase around TWD 15 billion. That's altogether around TWD 30 billion. Now we are still discussing internally, if we were to apply, it depends on FSC's approval. This is the current status. For VNB margin, the increase is mainly from the sales of regular pay. For the entire year, the market demand for singular pay, the VNB margin for the entire year will drop a little, but the VNB, it will grow around 8%-10%. For CSM continue to grow stably. This is my response to the two questions.
Jamie, did the two persons answer your question?
Yes.
Thank you. Regarding our dividend, I think the stock market investors, when they invest in a financial company, their expectation is not aligned with us. How to meet their expectation is our job. Our first responsibility is to maintain the capital adequacy because we are a financial institution. Under the regulatory requirement, we have to check the box, beyond that, we need to actively manage our dividend payouts, not a percentage. Because the payout will be floating, we will have a multi-year planning. We can have plan for future years, maybe one year, for certain reasons, we can utilize the past reserve. I believe this is more aligned with the expectation of the investors.
You're talking about first or second?
The second, okay.
Hello, I'm from Morgan Stanley. I'm Peggy. I have a few questions.
The first is about KGI Life. You talk about the FX reserve, the new regulation. In what condition you think it is suitable to apply to FSC? For example, do you have a target of the FX reserve, reach certain level, or when exchange rate between US dollar and TWD reach a certain number, you will apply? Did you calculate if you drop 1% of the traditional insurance policy, what is the impact to your company? The second question is, the unrealized loss in Q2, it dropped significantly. It's TWD -1.4 billion. What is the percentage of bond and equity? The third question is this year's dividend income. What is the number of the dividend income this year? Lastly, the FX reserve, I also have a question.
If this year, your capital gain is good, do you consider to convert some of the profit to your FX reserves? In the past, in 2020, when you were doing really good, you performed a similar move, and you shared about you like to expand the scale of your bank. If you consider any M&A positions, do you have a potential target?
Regarding FX reserves, for that part first, when to apply, we won't simulate exchange rate to what percent and we will apply, because application also takes time, and we don't know how much time it will take. We won't simulate when we will do it. For the new scheme, altogether for insurance companies, it is very beneficial because in the past, we need to hedge. We use cash, we spend a lot of money, but now, for unhedged position, we can allocate reserves, so it's like a big pool for us. It can be very beneficial for us. For the new scheme, we think it's very good. In the short term, the allocation percentage will increase from 0.72%- 1.2%, but it will also be included in our balance sheet. It is our self-owned capital. In addition, 1% to unhedged portfolio, what's the impact?
The size, it depends on how much we hedge, so I do not have a specific number for you. Next, regarding our OCI, unrealized loss, total is negative TWD 4.4 billion. It covers a big scope for equities. The unrealized gain is over TWD 260 billion, and there is also bonds as well. For cash dividend, continuing what we said last quarter, we won't pursue high cash dividend. We will look at capital gain and dividend as a whole, and overall, our dividend for the entire year will be around TWD 6.5 billion, will be lower than last year's TWD 7.2 billion. If we look at the overall capital gain for the first half of the year, dividend plus equity capital gain is TWD 17.3 billion. It's a lot compared to the same period last year. This is my response.
As for bank, to expand the scale of KGI Bank, our team spent a lot of time discussing the topic. We have two version. One is if we have identified a suitable target, the price is reasonable, and it is complementary to our current business, we will consider. KGI Bank under holding company, that is the smallest bank. We're only 50% of the second small bank under the holding company. If we can identify a suitable target and it can help us to expand our business location, we will certainly consider it. The business location is not the key point. We also have a second version, but M&A is not if I want to buy it, they will sell it to us. If we identify a suitable target, and how can we negotiate? For bank, there are three key indicators, and the third one is the location.
The most important one are capital and talent. Talent and capital are the most important factors for a bank. As you know, FA is very popular in the market, we're trying to attract talented FAs, and how can we cultivate professional FAs? These are our priorities, and it will continue to be our priorities in the future. We have designed a lot of process to enhance in this area. I can give you an example. For example, in KGIS, under the leadership of William Fang, it contributed a lot of customers to bank. In bank, they cannot serve so many customers referred from KGIS. This is a really good question. How can we continue to invest in talent cultivation in bank? This is the most important one. As your business growing, our CAR ratio will be affected.
If we can purchase another bank, we can increase our capital. If we cannot identify any suitable target, and if required, we will do a fundraising for the bank. We will not do this capital increase just to grow the balance sheet. If it can increase the ROE, even with the dilution, we may consider that. We prepared two version, two strategies to grow the bank. One is do it by ourself. It may take longer, but there's no issue of dilution, and we'll need to change the culture. I cannot say it is certainly good to do it by M&A. We're working on the second version, but we're also trying to find suitable opportunities.
I have an additional question, is if the life's equity capital gains is good, will you be shifting it to your FX reserves?
We do not have such plan because we have another reserve around TWD 15 billion. Currently, we do not plan to do so, to use our surplus, allocate our surplus into reserves.
This is Tina from Capital Investment. I have three question for bank. It seems that your loan size has grown quite significantly. Are you going to grow it further in the next half, and how long would this last? I also have a question for your NIM on the slide. I think it includes your swap position. If you exclude swap, what is the balance sheet number and what is the changes comparing to last year? Last year is the FX, the swap gains. How much has it contributed to your overall performance? Are you going to expect 14%-15% contribution to your balance sheet?
Regarding your first question, after the pandemic, the pipeline for both corporate and consumer banking has been strong. We have also factoring the RWA impact to our positions. Our year-over-year loan growth is expected to be at 10%-15%.
It won't grow further. Next is about how we optimize the loan mix, whether it is a personal loan or corporate loan or project loans, we will make proper allocation. Next, in terms of the NIM and the spread, excluding the FX swap. After the adjustment, our spread will be adjusted from 2.06 to 1.42. That's the size of the NIM. As for NIM, after adjustment, it's about 0.9. The FX swap gains, we do have a figure here, because it actually balances with the interest income. The size is about TWD 1.5 billion. That will be my answer to you.
I will read out one of the question from online. Due to the new regulation, there are new centers applying for the mortgage. What is the new strategy targeting the changes to the mortgage, and what will be the position change for your mortgage position?
To answer that question, the new regulation has already changed our position in the loan position. We have been reviewing that impact. After June, we expect that in Q3, there will be some dividend payout, and there will be some changes to our deposit mix. We are tracking very carefully regarding that limit. In terms of the disbursement, we have seen some restriction posed on the loan application. In the morning, we've also been invited to the central bank's discussion meeting. The chair has asked us about our view. To simply say is that we don't really have some restriction on the mortgage. Because we have made some prioritizing in terms of our disbursement process, and we also have these concerns. Unlike other precedents of other banks, they are referring customers because of this restriction. That is not really the case.
The real case is that we are all becoming more cautious. For KGI Bank's mortgage, we want to keep such resource, because the size of our total mortgage is not that big. Therefore, we don't really have any restriction, and we did not receive complaints regarding that. We did receive calls to ask about mortgage, and you know that the disbursement process is quite complicated as well. We need to do appraisal to look at the location. This is not a very speedy process, just to answer your question.
We don't have further questions online or on site. Thank you for participating. This marks the end of the meeting. If you have further question, you are welcome to contact with our investor relations team. Thank you.