Welcome everyone to CTBC Financial Holding Company's 2020 first quarter earnings conference call. All lines have been placed on mute to prevent background noise. After the presentation, there will be a question- and- answer session. Please follow the instructions given at the time if you would like to ask a question. Today's host will be Ms. Yaling Chiu, Executive Vice President and Spokesperson of CTBC Financial Holding Company, and Mr. Pai-Hung Yeh , Executive Vice President of Taiwan Life Insurance Company. The presentation will begin now.
Thank you everyone for joining CTBC's first quarter 2020 earnings call. Please turn to page three on 1Q 2020 highlight. Overall, CTBC Holding continued to deliver strong earnings amid COVID-19's impact on global economy. At holding level, ROE reached 14.67%, ROA at 0.77%, EPS at TWD 0.62. Net profit grew 9.8% YoY, attributed to both banking and life businesses. Holding also maintained well capitalized with CAR ratio at 115.92%, and maintained decent double leverage ratio at 117.5%.
For CTBC Bank, it observed solid core revenue growth as NII was up 4.9% YoY, and fee income up 6.9% YoY. Loan growth was stable at 6% YoY, and overall asset quality remained benign, with NPL ratio at 0.41%. Wealth management, corporate, and retail business were strong, though credit card spending was lower. Capitalization remained strong with CAR ratio at 13.82%, and CET1 ratio was at 11.31%.
For Taiwan Life, its after-tax net profit increased 52.9% YoY, due to strong investment gains and lower hedging costs. Life also successfully shifted to a value-focused strategy, with cost of liability declining to 3.4%. RBC ratio remained superior at 302%. Page four on event updates for 1Q 2020. For impacts from COVID-19, IMF revised its 2020 global economic growth forecast downward to - 3%, with the baseline scenario assuming that the pandemic fades in second half 2020.
Taiwan's major economic research institutes forecast domestic 2020 GDP growth of 1%- 2%. To support our clients, CTBC Bank and Taiwan Life launched a series of COVID-19 relief programs. For dividend, the board of CTBC Holding approved the distribution of a cash dividend of TWD 1 per common share based on the 2019 earnings, implying a payout ratio of 46% and a dividend yield of 5.05%, according to the closing price of TWD 19.8 per share on May 8th, 2020.
Regarding to ESG highlights, as for the honors, CTBC won three major accolades at Global Views Monthly's 2020 Corporate Social Responsibility Awards, including the Education Promotion, and Charity Promotion honors, as well as the Exemplary Model Award in the finance and insurance category. CTBC also remains a constituent stock of the MSCI Taiwan ESG Leaders Index, DJSI Emerging Markets Index, FTSE4Good Index Series, and TWSE Corporate Governance 100 Index. For ESG implementations, CTBC signed a commitment to implement the recommendations of the TCFD of the G20 Financial Stability Board in April 2020.
In March 2020, CTBC also established an ESG office, reporting directly to the President, while Sustainability Committee, with an Independent Board Director as commissioner, will be established in 2Q20. Page five. First quarter net profit was TWD 12 billion, increased by 158.4% QoQ, up 9.8% YoY. EPS was TWD 0.62. Page six. Group ROE was high at 14.67%, and ROA was 0.77%. Page seven on capital ratio. Remain well capitalized with group CAR at 115.9%, Bank CAR at 13.8%, tier one ratio at 12.4%, and CET1 ratio at 11.3%.
Life RBC ratio was 302%. Page eight on profit breakdown by legal entities. In 1Q, bank profits reached TWD 8.4 billion, up 47.5% QoQ and 1.2% YoY. Life profits reached TWD 4.2 billion, up 633.3% QoQ and 52.9% YoY. Holding's profits reached TWD 12.2 billion, up 158.4% QoQ and 9.8% YoY. Bank and Life contributed 69% and 35% respectively. Page nine on net profit movements. In 1Q, operating revenue was up 1% QoQ with the growth in loan, net interest income, and fee income offset by the decrease in trading gain amid impacted financial market under the pandemic.
Provisions were down 33.9% QoQ, and credit cost was 31 basis points, down 13 basis points from previous quarter with more specific cases in 4Q 2019. Expense was down 14.2% QoQ, mostly reflecting the decrease in ESOP valuation. Insurance pre-tax profit was up 416.1%, benefited from improved investment income and lower hedging costs. Overall, net income reached TWD 12.2 billion, up 158.4% QoQ. On the bottom, operating revenue was down 5.7%, with the growth in core earnings, including net interest income and fee income, offset by the decrease in trading gain and the impact of financial market under the pandemic.
Provision was up 70.3%, and credit cost was up 12 basis points YoY. Expense was down 9.1% YoY, reflecting the decrease in ESOP valuation. Insurance pre-tax profit was up 51.8%, benefited from investment income and lower hedging costs, as well as decreasing cost of liability. Overall, holding income was up 9.8% YoY. Page 10 on revenue breakdown, excluding Life. Total revenue was up 1% QoQ, down 5.7% YoY, with solid core NII and fee income growing 7.6% QoQ and 6.5% YoY.
Net interest income was up 1.4% QoQ and up 5.4% YoY. Fee income was up 17.9% QoQ from lottery, wealth management, corporate business, and overseas subsidiaries, and up 8.3% YoY on the growth of wealth management, lottery, retail, and corporate fees, as well as overseas subsidiaries. Combined derivatives, FX, and trading gains were down 10.3% QoQ and down 50.8% YoY due to market volatility under the pandemic.
Please see profit mix on the right where NII accounted for 57%, fee 40%, trading derivatives and FX 8%, others combined - 5%. Page 11 on bank's loan breakdown. Total lending with credit card revolving at the end of March was TWD 2.5 trillion, reflecting 1.7% QoQ and 6% YoY growth. NT dollar corporate loan was up 2.4% QoQ, growth from public enterprises, construction, and real estate, as well as manufacturing industries.
It was up 10.5% YoY, with increased demand in working capital under repatriation program from construction and real estates, public enterprises, service industry, and manufacturing industries. Foreign currency loan was up 1.3% QoQ and up 1% YoY, which will be further explained on page 12. Mortgage continued to grow 1.4% QoQ and up 8.6% YoY. Unsecured lending was up 4.4% QoQ and up 15.5% YoY. Credit card revolving was down 2.8% QoQ and 0.3% YoY as consumptions weakened due to the pandemic.
Please refer to the graph on the right for our lending portfolio mix, where foreign currency loan accounted for 42%, NTD corporate loan accounted for 24%, mortgage 28%, unsecured lending 5%, and credit card revolving and others together accounted for 2% of the total lending. Page 12 on foreign currency loan breakdown. Foreign currency loan at the end of September was TWD 1.05 trillion, which constituted 42% of total lending. Overseas subsidiaries accounted for 57.3% of total foreign currency loan, with TSB accounting for 43.6%.
Overseas branches accounted for 30.8%. OBU+ DBU was 11.9%. On the right, overseas subsidiary loan was down 0.7% YoY. Other than TSB, which we've employed a slow growth with value strategy, other overseas subsidiaries maintained growth. Overseas branches loan was up 1.5% YoY, mainly from China, Hong Kong, India, and Vietnam branches. OBU+ DBU was up 7.3% YoY due to increased demand in working capital. Page 13 on bank deposit mix.
Total deposits as of March reached TWD 3.4 trillion, of which NTD accounted for 55%, and foreign currency accounted for 45% of the deposit. On the left, total NTD deposits were up 3.2% QoQ and up 8.7% YoY. NTD savings deposit accounted for 58.1%. On the right, total foreign currency deposits were up 0.2% and up 2.6%. Foreign currency savings deposit time accounted for 50.8% of foreign currency deposit. Page 14 on loan-to-deposit ratio. Overall, LDR was 73.35%. NT dollar LDR was 78.5%. Foreign currency LDR was 67.14%. Page 15 on NIM and spread.
Foreign currency spreads were up 2 basis points QoQ to 2.25%, attributed to more decrease in deposit rate compared to lending rate due to the lag in effect from U.S. rate cut on longer term deposits. NT dollars spreads were 1.58%, up 2 basis points QoQ due to TWD rate cut in the first quarter, cutting the deposit rate. Overall, spreads were 1.85%, up 2 basis points from last quarter. 1Q 2020 NIM was up 2 basis points QoQ to 1.49%. Page 16 on fee breakdown. Total fees were up 18.1% QoQ and up 6.9% YoY.
Wealth management fee was up 5.3% QoQ and up 16.4% YoY due to higher sales from mutual fund and bonds. Credit card fee was down 16.6% QoQ and down 10.1% YoY due to decreased consumption momentum under the pandemic. Retail business was down 3.9% QoQ as 4Q serves as peak season for ATM fees, but it was up 5.3% YoY, driven by ATM and loan-related fees. Corporate business was up 46.8% QoQ and up 9.3% YoY, mainly due to increased fee income from syndication, loan, trust, and private banking.
Overseas subsidiaries fee was up 10% QoQ and up 6.9% YoY due to syndication fee and wealth management fee from TSB. Lottery fee was up 133.4% QoQ due to seasonal effect and up 0.3% YoY. Page 17 on wealth management fees. For wealth management fee breakdown, bancassurance contributed 54%, mutual funds 35%, custodian and trust 3%, structures and others 8% of total wealth management fees. B ancassurance fee was down 6.5% QoQ as a decrease in liability reserve interest rate priced up premiums for new policies. Mutual fund fee increased 23.8% YoY. Custodian and trust fee up 2.8% YoY.
Structured and others up 33% QoQ due to stimulated sales in bonds. Page 18 on cost income ratio. As core businesses grow stably in the first quarter, total revenue was up 4.4% QoQ, and as ESOP lowered, operating expense was down 8.6% in the first quarter. Cost income ratio was 52.72% in the first quarter. Page 19 on asset quality. Asset quality was benign, with NPL ratio at 0.41%, up 7 basis points from last quarter, and NPL coverage ratio increased to 324.2%. Page 20 on credit costs. 1Q 2020 credit cost was 31 basis points, down 13 basis points QoQ and up 12 basis points YoY, reflecting provisions on specific cases.
Moving on to life businesses. Page 21 on total premium. Total premiums was TWD 59.9 billion in 1Q, down 6.3% QoQ, down 12.8% YoY. Market share was 7.3%, ranked number six. In the industry. Page 22 on first-year premium. FYP reached TWD 23.3 billion in the first quarter, up 15.6% QoQ due to stronger sales in investment-linked products and U.S. interest-sensitive products. 3M 2020 FYP was down 26.9% YoY, reflecting the decrease in interest-sensitive products as we stopped selling NTD single-pay products and short-term regular-paid NTD policies last year.
Market share was 9.2%, ranked number four in the industry. Page 23 on FYP breakdown by types of payment and products. On the left, mix of single-pay products have increased to 42% of FYPs, and regular-pay products accounted for 27.5% of FYPs. On the right is the product breakdown. Interest-sensitive policy accounted for 63.3%, and investment link accounted for 30.5% of FYP, traditional for 2.1%, and health and PA increased to 4.1% of FYP. Page 24 on FYP breakdown by channels and currencies.
In terms of channel, contribution was mainly from bancassurance , with 44.3% from CTBC Bank and 29.7% from external banks. Tied agents contributed 15.2% of FYP, insurance brokers 9.7%, and others 0.3%. On the right, investment-linked product accounted for 30.5%, foreign currency policy accounted for 55%, and NTD policy accounted for 14.5% of FYP. Page 25 on FYPE. 1Q and 3M 2020 FYPE reached TWD 5.6 billion.
Market share was 5.8%, ranked number six in the industry. On the right is the FYPE mix for your reference. Page 26 on investment and asset mix. Total investment assets reached TWD 1.9 trillion, up 8.1% YoY. In terms of portfolio breakdown, cash accounted for 3.8%, domestic fixed income 11.2%, overseas fixed income 60.3%, equities 8.8%, real estate 4.4%, mutual funds 8.7%, mortgage 1.5%, and policy loans 1.4%. Page 27 on investment yield, cost of liability, and hedging mix. 3M 2020 cost of liability was 3.4%, down 5 basis points QoQ. Investment yield was 4.07%. Recurring yield before hedging was 3.42%.
Annualized hedging cost was 0.87% for 1Q 2020. In terms of hedging, 40% of overseas investment assets were foreign currency policies, while 60% of overseas investment assets were NTD policies, of which 61% were fully hedged, 15% were OCI acquisition, and 24% were unhedged. Next, we move on to Taiwan Life's 2019 Embedded Value Report. Page 29 on EV. For EV assumptions, investment yield for NT dollar policy started from 3.52% in 2020 and will rise to 4% in 2039 and stay flat after. Investment yield for U.S. dollar policy started from 4.6% in 2020 and will rise to 5.03% in 2039 and stay flat after.
Discount rate applied was 10%. EV reached TWD 208.8 billion as of end of 2019, of which adjusted net worth was TWD 108 billion. Value of in-force business before cost of capital was TWD 144.8 billion, the cost of capital was TWD 43.9 billion. EV is TWD 47.2 per Taiwan Life share and TWD 0.7 per CTBC Holding share. Page 30 on other EV assumptions. RBC capital requirement remained at 200% based on the 2019 RBC formula announced by Insurance Bureau.
Mortality, morbidity, and lapse rate are determined with related experience rate and product type. PwC has provided an independent review on our EV assumptions. Page 31. Sensitivity discloses scenarios based on changes of 25 basis points on investment yield and changes of 1% on discount rate for your reference. Page 32 on EV comparison. We adjusted investment yield assumptions on NTD and USD policies to reflect the changes in the market.
2019 EV increased year-on-year to TWD 208.8 billion, there will be information on movement on adjustment net worth, VIF, and VNB in the following pages. Page 33 on adjusted net worth movement. Adjusted net worth in 2019 increased to TWD 108 billion. 2018 adjusted net worth was TWD 66.5 billion, adding 2019 profits of TWD 13.1 billion. Changes in unrealized gains on financial assets, excluding bonds, TWD 16.4 billion. Capital injections, TWD 10 billion. Changes in unrealized gain from property, TWD 0.9 billion.
Other adjustment, TWD 1.1 billion, mainly due to FX reserve. Page 34 on VIF movement. VIF increased from TWD 140.7 billion in 2018 to TWD 144.8 billion. The increase in VIF was due to VNB of TWD 16.2 billion, release of 2019 expected profits and interest rolling forward of TWD 3.3 billion, offset by investment yield assumption change of TWD 15 billion.
Other assumption changes of TWD -0.8 billion, data and model changes, TWD 0.3 billion. Page 35 on VNB movement. VNB remained at TWD 14.2 billion with sales volume change of TWD -5.7 billion, product mix change of TWD 4.3 billion, investment yield and other assumption changes of TWD 1.4 billion. The presentation will stop here. We will now open for Q&A.
Hi. This is Yaling. Good afternoon. As you know, the market was crazy in March, after our last analyst meeting on March 12th. Since then, we have revised our outlook guidance for this year. Let me briefly give you this update. For NT dollar loan, we foresee it will have mid to high single-digit growth, mainly from our mortgage and corporate loan. We see the property market and housing price will keep stable in Taiwan for this year.
For our corporate loans, we see the opportunity from the Taiwanese corporate coming home program, also the opportunity from the domestic demand from government policy for infrastructure like 5G and green power. For foreign currency loan, except for China, most of the cities where our overseas branches and subsidiaries locate are having lockdown, which resulted in a flattish momentum of loan growth in first quarter.
We anticipate there'll be low single-digit growth for foreign currency loan because we don't know how long this COVID-19 will last. For NIM, last time, our assumption is Fed fund rate will cut by 100 basis point, but actually, Fed fund rate cut by 125 basis point. No. Sorry. 150 basis point. We assumed for this year, there will be about 7 basis points-8 basis point decline compared to last year, full year. Meaning that last year we had 1.5% of NIM. This year, we foresee NIM will be about 1.42%-1.43%.
For fee, because the COVID-19 outbreak that impact the consumption of the credit card spending and also our wealth management customers are hesitating to invest more. They prefer cash now at this volatile market. We foresee our fee income will be flat for this year. For credit cost, we anticipate credit costs will deteriorate to around 40 basis points. The normal credit cost for the whole bank is about 20 basis points, which was the guidance that we usually would give to investors. 20 basis point is the basic, and plus the Hin Leong case , , probably you all know this case.
It will cost about 10 basis points if we provided 100%. For this year, the baseline will be 30 basis points of credit cost, and plus the COVID-19 impact, we end up 10 basis point more for buffer. Overall, we see the credit cost will be around 40 basis points for this year. For cost income ratio, since the decline of the top line that we just mentioned, cost income ratio we anticipate will be about 60%. That's the brief update about the outlook of guidance for the bank. On the left side, the outlook guidance will be pretty much the same as we gave last time. Now we can start the Q&A section.
Thank you, Ms. Chiu. Ladies and gentlemen, we will now begin our question- and- answer session. If you wish to ask a question, please press zero one on your telephone keypad and you will enter the queue. After you are announced, please ask your question. Should you wish to cancel your question, you may press zero two. Thank you. Now, please press zero one if you would like to ask the question. Thank you. The first question is coming from Edwin Liu, HSBC. Go ahead, please.
Hi. Thanks management for taking my question. May I ask first of all about the recurring yield? I see that it has decreased a bit. May I get the latest guidance from the management about the recurring yield trend? That was my first question, and second is on the cost of liability. I see that the improvement has slowed down gradually. May I know a reason behind, and what do you forecast the cost of liability level at end of this year? Thank you.
The spread between recurring yield and cost of liability is getting slightly bigger than last year. Although the recurring yield dropped 14 basis points YoY. The cost of liability for last year, the first quarter of last year is 3.6%, and dropped to 3.4% for the first quarter of this year. We expect the spread between recurring yield and cost of liability could keep the pace.
Thank you. Maybe I can follow up with a question on the bank. May I get an idea about the bank's overseas earnings? In particular, the earnings contribution from Mainland China and Southeast Asia, in terms of the percentage of your overall bank earnings. Thank you.
The earning contribution from China, if we look at last year, it's still small, but this year, we foresee it will be growing to 8% for this year. For Southeast Asia, because the Hin Leong case , , in our forecast, we assume we will provide 100%. For Southeast Asia this year, it will be a negative earning.
What if without the Hin Leong case , ?
The exposure is $90 million. It is about TWD 2.7 billion.
Okay, thank you.
The next question is coming from Gurpreet Sahi of Goldman Sachs. Go ahead please.
Thanks for taking my question. A couple of questions, please. First is this 10 basis points credit cost guidance outside of Hin Leong or COVID-19 impact. How does the management come to that 10 basis points impact? Can you talk more regarding the assumptions behind it and predominantly where it is coming from? Second one is regarding the operating expense. How much of the operating expense outcome in the first quarter being lower was because of the ESOP, so employee stock option plan. If you adjust for that, where should the cost-to-income ratio would have been in the first quarter? Thank you.
For the 10 basis point more, for the buffer is, actually, we have reviewed all the early warning cases one by one globally. That's the expected loss that we estimate. Except for Hin Leong , we also see some potential risk from Japan, because of the 2020 Olympic Games. Our TSB subsidiary, they have done some loan on the hotel industry, because at that time, the outlook of the hotel industry was quite good because the Olympic Games. But due to the COVID-19 impact, it turns out to be a negative outlook. It's not a good business now.
We do see some potential risk on this side. Actually, the 10 basis point is the aggregate of all the individual cases that we estimate altogether. For the OpEx in first quarter, because the share price decreased in March, I mean the CTBC share price. Because of ESOP, employee stock option program, the cost of ESOP was lower, and the impact of this item will be about TWD 1.3 billion. That's why the CI ratio in first quarter is relatively lower than BAU.
Okay. Thank you very much.
The next question is coming from Jemmy Huang of JP Morgan. Go ahead please.
Yeah. Hi. Thanks for the presentation. Two questions from me. First one is on the bank. If you look at your slide 45, the bank P&L. Just trying to figure out why the long-term investment income actually decline from TWD +310 million in first quarter last year to TWD -360 million this year, because I think trading is not included here, and then lottery-related expenses should be in other income. What's the key reason behind the swing on the long-term investment income here?
The second question is on cost of liability for Taiwan Life. I think it looks like very likely the policy reserving rates will be revised down in July. If we take into account the new measures that will be implemented in the second half of this year, I think originally, we are talking about we expect cost of liability to decline by about 22 basis point year-on-year this year. Not sure whether there will be additional positive impact because of the new measures. Thanks.
Regarding the long-term investment income turned negative in first quarter, that's because the LH investment, the investment that we have in Thailand and the bank or the group, LH Group, their investment, because the volatility of the equity market. Their investment, there's some much market loss of their investment. That's why we recognize 36% of it. That's the reason for long-term investment turned negative.
You mentioned about the new measure. What do you mean?
The policy reserving rate talking about.
Okay. Yeah. Okay. You mean, currently the policy saw in the market almost are crediting rate type. Actually, although the reserving rate decreased 25 basis point- 50 basis points, when we calculate the cost of liability, we use the crediting rate tool as our number to calculate the cost of liability. Although the reserving rate declined, we don't expect have much impact on our cost of liability. The major impact for our cost of liability is about the market yield. If the market yield going down, we will lower our cost of liability also.
Yeah. I guess my question is basically the crediting rate cannot be lower than the policy reserving rate, even for the interest-sensitive products.
Okay. Yeah.
I think what you mean is that you don't really expect at the current interest rate environment, the crediting rate that you declare will still be quite in line with your original expectation. Is that the fair statement?
Yes. Especially for U.S. dollar, we still have the room to decline, to lower the crediting rate.
Yeah. Okay. Basically, you're still targeting 22 basis point decline on cost of liability for this year?
Yes.
Okay. Thank you.
As a reminder, please press zero one on your telephone keypad if you would like to ask the question. Thank you. The next question is coming from Chung Hsu of Credit Suisse. Go ahead, please.
Oh, hi. Thank you. Thanks for the presentation. I just want to ask about the insurance business, the EV. I noticed you changed your investment assumptions for 2020 via 2019. Just wondering if you provide single rate equivalent rate for 2020?
3.98%.
3.98%. Can I get that for 2019?
2019. For last year, it's 4.33%.
Three three. 4.33?
4.33%, yeah.
Okay. Just one more question. I don't see any investment return assumption for new business, I assume you use the same rate for new business and VIF?
For NTD, we use the same rate. For U.S. dollar, we use the same rate separately. The product mix may different. For VNB, the equivalent rate is 4.21% due to we have more U.S. dollar policy.
If I understand it correct, it's 2.41%, that is the single rate equivalent for new business this year?
Pardon?
Sorry, was it 2.41%?
4.21% for new business.
4.21%.
4.21% for VNB.
I see.
For last year, also for VNB, it's 4.45%.
If I understand it correct, you're using higher rate for new business than VIF?
No. The dip is caused by the product mix. For new business, we have almost 65%-70% come from USD policy.
Oh, okay.
For entity, for USD, we use the same investment year assumption for EV and for VNB.
I see.
The mix is different.
I see. Just last question then. For the lottery imports, what percentage of it is U.S. dollar?
For new business?
No, for your back book, the VIF.
40%. 40%.
Yeah. Okay. Thank you.
Next we'll have [Roger Huang] from GIC for questions. Go ahead please.
Hi, Justine. Can I just ask a question regarding the hedging cost for this year? I noticed that NT dollar has been a bit strong. Just wonder if you have some views regarding hedging costs for the rest of the year.
Yes. For the hedging cost, the full year budget is around 1%.
Okay, thanks.
Excuse me, Roger, do you have more to add?
No.
Thank you very much. Yes. Thank you. The next question is coming from Edwin Liu of HSBC. Go ahead, please.
Hi. Thanks for taking my question again. I just have two follow-up questions. One is on your proposed debt issues. You have made your announcement about the issues of senior and also subordinated debt. Can you give us more color on what kind of use would that be? Do you use to inject into your bank or Taiwan Life or other purpose? Second question is on your dividend. I think your payout ratio was lower this year, reason being you want to preserve more capital. May I know, if next year economic outlook is more clear, would you return to a more normal level of the payout ratio? Thank you.
I answer the dividend question first. Yes, we do look at the three to five years, our capital plan. Dividend is part of that. If the COVID-19 thing will end this year, and next year everything go back to normal, yes, our dividend level will go back to the normal level, which is 50% payout and also 4%-5% of dividend yield. Regarding the debt, our Board meeting approved the limit of TWD 45 billion of debt, which include TWD 10 billion of sub-debt and TWD 35 billion of debt.
We don't have plan to inject this money to any subsidiaries, including Taiwan Life. The main purpose for sub-debt is to enhance our capital level, capital adequacy for holding company. The overall TWD 45 billion were used to pay back our debt currently. Currently, we have one debt will be matured this year. The other is commercial paper, because the price of commercial paper now is quite close to the five-year debt. That's why we want to lock in the low price of debt. We use the totally TWD 45 billion to pay back the debt now.
Okay. Thank you.
Hope that answered your question.
Yep. Thank you very much.
We are now in question- and- answer session. Please press zero one on your telephone keypad if you would like to ask a question. Thank you. Now please press zero one if you would like to ask the question. Thank you. If you would like to ask a question, please press zero one on your telephone keypad. Thank you. There appears to be no further questions at this point, and we thank you for all your questions, and that will be the end of the conference. We thank you for your participation in CTBC Financial Holding Company's conference call. You may now disconnect.