CTBC Holding is guided by its brand spirit of "We are family"; brand values of "Caring, Professional, and Trustworthy"; and corporate mission to "Protect and Build." Through the effective operation of the Board of Directors, adherence to ethical corporate management, and transparent information disclosure, CTBC Holding continues to enhance various aspects of its corporate governance in order to protect the rights and interests of all stakeholders while achieving sustainable development.

We focus on maximizing the effectiveness of the Board of Directors and have established a sound corporate governance framework accordingly. The spirit of corporate governance is instilled across the organization from the Board level down, with governance principles integrated into daily operations through regular updates to related policies and procedures. These practices are fully implemented in the operations of subsidiaries, fostering a robust corporate governance culture across the group.

Achievements

Our corporate governance efforts have been widely recognized both domestically and internationally. The Company has been selected as a constituent stock of the FTSE4Good TIP Taiwan ESG Index and TWSE Corporate Governance 100 Index in Taiwan, and has been included in the Dow Jones Sustainability Indices' Emerging Markets Index and World Index every year since 2020. In 2021, CTBC Holding was awarded "Excellent" certification (the highest grade) in the Corporate Governance Evaluation performed by the Taiwan Corporate Governance Association.

Separation of management and ownership

CTBC Holding implements the separation of management and ownership, as part of which no Board members concurrently hold managerial positions within the Company. Additionally, the roles of Chairman and President are distinct and filled by different people, with clearly defined responsibilities for each. The Chairman leads the Board in overseeing operations, guiding the management team on business strategies, and monitoring their implementation while bearing ultimate responsibility for internal controls, compliance, and risk management. Furthermore, in the absence of any statutory or internal regulatory limitations on personal liability, directors are fully liable for all acts performed within the scope of their duties. The President, as the top leader of the management team, is responsible for proposing business strategies, managing overall operations, and reporting execution results to the Board.

Enhancing the functions of the Board

To strengthen the independence of the Board of Directors, CTBC Holding became the first financial holding company in Taiwan to have independent directors fill over half of its board seats. Of the seven current directors, four are independent, including Chung-Hui Jih, the first woman to sit on the Board. The directors collectively bring expertise in decision-making, finance, risk management, banking, insurance, securities, and investment, significantly boosting governance efficiency.

The Board oversees six functional committees: the Audit, Remuneration, Risk Management, Nomination, Ethics and Integrity, and Corporate Sustainability Committees. These committees enable professional specialization and ensure the Board's effective operation.

Embracing the digital era, CTBC Holding adopted an electronic proposal system in 2012, streamlining the entire Board meeting process. This delivered benefits including lower labor costs, smoother motion management, simplified agenda-making and minutes-taking processes, and greatly reduced paper use.

In addition, in accordance with the Directions for the Implementation of Continuing Education for Directors of TWSE Listed and TPEx Listed Companies, every director of CTBC Holding must participate in continuing education every year to improve their expertise in relevant areas. In 2025, the directors collectively completed 113 hours of such training (an average of 16.14 hours per director), with the details disclosed on the Market Observation Post System and on the Company's website.

To further improve the Board's effectiveness, we conduct annual performance evaluations of the Board, its committees, and individual directors in accordance with the Regulations Governing Board Performance Evaluations. The evaluation results are categorized into four levels: significantly above average, above average, average, and room for improvement. Additionally, external evaluations are conducted every three years by independent experts or institutions.

The internal and external Board evaluation results are reported to the Board of Directors and used as a reference in the nomination and election of directors. The self-evaluation results of individual directors are also referenced when determining remuneration. In 2025, the internal performance evaluation results of the Board, functional committees, and individual directors were all "significantly above average."

To further improve the functioning of the Board of Directors, CTBC Holding engaged the Taiwan Corporate Governance Association to conduct the Board's external performance evaluation in 2024. The Corporate Governance Department and other relevant departments will refer to the organization's suggestions and consider them with regard to actual operations in order to propose and discuss measures to strengthen corporate governance mechanisms and practices. The evaluation results will be disclosed on the Market Observation Post System and on the Company's website.

Communication of independent directors with internal auditors and CPAs

CTBC Holding's independent directors communicate with the Company's CPAs every six months to discuss matters related to the review and certification of the semi-annual and annual financial reports. These discussions cover the scope, methods, and key focus areas of the audits, as well as audit findings and the key points and results of internal control reviews.

Every six months, the independent directors also meet with the Chief Auditor to communicate regarding internal audit units' follow-up reviews of the examination opinions or audit deficiencies identified by the financial examination authorities, CPAs, internal audit units, and self-inspections of other internal units as well as matters specified in the internal control system statement as requiring stronger improvement efforts. The audit unit follows up on the independent directors' requests and suggestions, ensuring completion within the specified deadlines. Summaries of the communication of independent directors with CPAs and the Chief Auditor are disclosed on the Company's website.

Information disclosure

We are committed to maintaining fairness and transparency in our information disclosure, including by complying with regulations for disclosing material information and for filing information through the online public reporting system.

In addition to holding 12 investor conferences in 2025, CTBC Holding organized nine investor briefing sessions in Taiwan and overseas. We also maintain Chinese and English versions of our website, disclosing extensive information regarding corporate governance, financial reports, annual reports, key financial data, corporate social responsibility initiatives, and more.

Cybersecurity risk management

To ensure constant groupwide information security management, and to protect trade secrets and confidential customer information from damage to their confidentiality, integrity, accuracy, or availability arising from internal or external willful or negligent conduct, the Company has established the CTBC Holding and Subsidiaries Information Security Officers Joint Committee, meetings of which are convened quarterly.

Major subsidiaries and operations of the Company have been certified by relevant international information security management organizations; these include CTBC Bank and Taiwan Life, which have received ISO 27001 Information Security Management System (valid June 7, 2024, to June 6, 2027) and BS10012 Personal Information Management System certification (valid July 8, 2023, to July 7, 2026). Our goal is to provide professional and efficient services, reduce unknown information security risks, build a safe and reliable information environment, and protect our customers' rights.

Ethical corporate management policy and implementation

Integrity is one of our five core values. To uphold this principle, we established the Ethics and Integrity Committee under the Board of Directors. This committee is responsible for developing ethical management policies, implementing preventive measures, and overseeing their effectiveness. At the beginning of each year, the committee formulates an annual work plan. The Corporate Governance Department is responsible for carrying out related tasks, including ethical management initiatives and training programs. A semi-annual report on the group's ethical management practices is compiled and presented to both the Ethics and Integrity Committee and the Board. The committee regularly reviews, refines, and updates its policies and preventive measures to ensure adherence to regulations and promote transparency and integrity.

The Board has approved regulations to strengthen ethical management. These include the Ethical Corporate Management Best Practice Principles and the Procedures for Ethical Management and Guidelines for Conduct. Relevant ethical management policies and practices are also explicitly disclosed on the Company's website and in external documents. The Board of Directors, senior managers, and all employees are required to proactively implement ethical management. Furthermore, all directors and senior managers are required to sign a statement of ethical management compliance, which has a signing rate of 100%.

CTBC Holding has also established a robust whistleblowing mechanism. Any individual who identifies potential criminal behavior, fraud, legal violation, or breach of the ethical management code or ethical standards involving a CTBC Holding or subsidiary employee can file a report. Reports can be submitted via post, email (including the designated complaint mailbox and chairman's mailbox), and phone. CTBC Holding and its subsidiaries investigate and review all cases thoroughly, ensuring whistleblowers are protected from retaliation or unfair treatment, thereby fostering a culture of integrity and transparency.

To ensure the ongoing implementation of ethical management, CTBC Holding conducts annual training for directors and employees, along with periodic awareness campaigns delivered via written materials, online learning, and email communications. In 2025, a series of one-hour courses were held, covering topics such as identifying and preventing unethical behavior, insider trading prevention, whistleblowing systems, and the benefits of ethical management. These efforts reached 25,680 people, including directors, independent directors, supervisors, and full-time managers and employees (excluding temporary workers and those with special circumstances, such as on leave or secondment), with a 100% completion rate.

To prevent insider trading, CTBC Holding has established the Management Policy for Preventing Insider Trading, which is incorporated into the Code of Conduct for employees and the Ethical Corporate Management Best Practice Principles and is available on the Company's website for all employees to access. Upon appointment, new directors and managers are provided with a regulatory guidance manual. New employees receive training during onboarding, including an explanation of the elements constituting insider trading, to ensure they are aware of and avoid any potential violations.

In 2025, the insider trading prevention training provided for directors and employees was as follows:

• Business training was arranged for new directors, covering regulations for preventing insider trading and emphasizing that trading the Company's stock is prohibited during blackout periods, including the 30 days prior to the announcement of the annual financial report and the 15 days prior to the announcement of each quarterly financial report.
• A one-hour training session on ethical management and insider trading prevention was arranged for all group directors, supervisors, and employees, with a total attendance of 25,680 people.
• A 3.5-hour compliance officers meeting and training session was arranged for the supervisors in charge of compliance of each unit as well as all Compliance Department employees. The training included advocacy on insider trading prevention, relevant regulations, the elements constituting insider trading, and the Company's internal reporting procedures. A total of 45 participants completed the training. Following this, the trained supervisors were responsible for disseminating insider trading regulations to their teams.
• To implement controls on stock trading by insiders, in addition to irregular reminders being issued, notices are sent to the directors and senior managers before the submission of annual and quarterly financial statements to the Board of Directors, reminding them not to trade Company stock prior to the statements being issued. In 2025, the notices were sent via email in February, April, August, and October.

Dear Shareholders,

In 2025, major economies, including the U.S. and Europe, continued to cut interest rates, leading to mild global economic growth. Nevertheless, financial markets remain clouded by uncertainty due to the U.S.’s new tariff policies, the shifting of supply chains, and fluctuations in foreign exchange rates. Combined with structural factors such as geopolitical tensions and the U.S.–China trade war, financial institutions still face a challenging environment. We must, therefore, maintain a prudent outlook on the global economy and capital market trends.

Despite the rapid changes in the international political and economic environment, Taiwan has benefited from the surging demand for emerging technologies such as AI and high-performance computing. This, coupled with strengthened export and investment momentum in the semiconductor and ICT supply chains, has led to a steady improvement in overall economic performance. According to the latest forecast from the Directorate General of Budget, Accounting and Statistics, Taiwan’s 2025 GDP growth reached 8.68%. Driven by economic growth and active market trading, the domestic financial industry delivered a solid performance for the year. The banking sector saw growth in net interest income and fee income, while the securities and investment trust sectors benefited from the recovering investment market, also increased profit growth. However, due to exchange rate fluctuations and market volatilities, the insurance industry faced higher uncertainty in investment valuation and posed greater challenges.

Guided by its sound operating strategy, CTBC Holding has continued to strengthen its profitability and operational efficiency. In 2025, CTBC Holding reported NT$80.6 billion in after-tax net profit, representing a 12% increase over the previous year. The ROE was 16.88% and EPS reached NT$4.08. This result marked the third consecutive year of record-breaking profits for the Company, further solidifying its leading position in Taiwan’s financial industry.

2025 business plans, strategies, and results

• (1)

  CTBC Bank saw steady growth in both domestic and overseas operations, with various businesses maintaining their leading market positions, resulting in record profits

  CTBC Bank has been focusing on cultivating its core customer base in Taiwan while actively expanding into new business areas and diligently serving overseas customers. In 2025, by deepening customer relationships and diversifying its business structure, combined with robust performance in wealth management and steady growth in investments, deposits, loans, and credit cards, the Bank achieved a new high of NT$57.3 billion in after-tax net profit and posted a 13.89% return on equity (ROE), solidifying its position as Taiwan’s most profitable bank.

  CTBC Bank retained leading positions in multiple core businesses by maintaining a diversified and balanced business structure. In retail banking, the Bank has been cultivating its wealth management business for over 20 years; in 2025, this yielded market-leading wealth management fee income and 10.4% annual growth. In addition, by further optimizing its wealth management platform to satisfy the domestic and overseas asset allocation needs of its high-net-worth (HNW) private banking customers, the Bank increased its HNW asset under management to NT$329 billion, representing an annual growth of 49%. Its consumer finance business also performed remarkably well, with the number of circulating credit cards, spending volume, and personal loan balances all ranking first in the market.

  In institutional banking, CTBC Bank leads its peers in both corporate trust business and derivatives transaction volume, providing a steady contribution to overall income growth. Furthermore, the Bank is dedicated to developing customized and highly efficient products and services for its SME customers. By offering a complete product line to satisfy their needs in a one-stop shop, we help these SMEs to enhance their operational efficiency and further expand their business scale. In sustainable finance, in support of the 2050 net-zero emissions policy, CTBC Bank has actively engaged in renewable energy financing, facilitating the financing of various large-scale domestic solar power projects. The cumulative syndicated loans led by the Bank for offshore wind projects have exceeded NT$670 billion, while responsible investment has surpassed NT$1.4 trillion.

  Regarding its overseas operations, in response to the reorientation of global supply chains and the relocation of corporate production bases, CTBC Bank has proactively captured customers’ cross-border financial needs. By driving overall overseas profit growth through cross-border financing, foreign exchange, and hedging services, the Bank raised overseas profits to a new high in 2025. In Greater China, the Bank continued to leverage its comprehensive cross-border services to deepen its relationships with corporate customers and meet their financial needs, with the region remaining the largest contributor to overseas profits. In Southeast Asia, North America, and Japan, the Bank accelerated overall operational momentum by expanding its customer bases and enhancing its deposit acquisition capabilities.

  Meanwhile, in overseas subsidiary operations, after becoming the largest shareholder of Thailand’s LH Financial Group Public Company Limited (LHFG), CTBC Bank has continued to strengthen local management teams and steadily improved its financial performance by using the institutional banking and mortgage businesses as growth engines. In Japan, subsidiary The Tokyo Star Bank continued to expand the real estate and housing mortgage core business, seized niche loan opportunities, and provided comprehensive end-to-end mortgage services for Taiwanese customers, supporting the growth of its customer base. Meanwhile, the subsidiary also grasped local semiconductor supply chain business opportunities, upgrading its Kumamoto representative office to a branch to expand its business scale. Regarding its private equity fund investment business, as of the end of 2025, the Tokyo Star Bank held 22 private equity funds totaling JPY 6.7 billion and had invested in a total of 30 funds, with an overall cumulative investment return of 63% since 2012.

• (2)

  Taiwan Life continued to expand new business scale and strengthen investment capabilities to solidify its long-term profit base

  In 2025, impacted by the significant appreciation of the New Taiwan dollar, the life insurance industry incurred greater foreign exchange risks. The competent authority announced a new foreign exchange valuation reserve framework and measures for adjusting the baseline of liability reserves, assisting life insurers to enhance their hedging flexibility. In addition, Taiwan Life conducted early strategic positioning by extending its hedging durations to mitigate the impact of the NT dollar’s rapid appreciation, while seizing stock market opportunities and realizing timely capital gains. With an after-tax net profit of NT$20.8 billion and a 12.2% ROE, Taiwan Life is ranked among the market leaders.

  In 2025, Taiwan Life recorded first-year premiums of NT$74.5 billion, representing 54% annual growth and exceeding the average market performance. The company’s 2025 operational strategy aimed at expanding new business volume and increasing investable assets. Supported by Taiwan Life’s diverse and competitive products, the bancassurance channel ranked first in the industry in terms of first-year premiums, while first-year premiums from insurance brokers and agents more than doubled. Also in 2025, in consideration of market trends and to meet the needs of HNW customers and customers focused on healthy aging and retirement planning, Taiwan Life commenced wealth management services, participated in a pilot program at the Kaohsiung Zone of the Asian Asset Management Center, and established a new subsidiary, CTBC Lohas Co., Ltd. By creating differentiated advantages through the combination of products and services, Taiwan Life is laying a foundation for continued insurance profit growth.

  Regarding investments, Taiwan Life maintained a diversified asset allocation strategy to build a stable profit foundation, while strengthening its investment operations to capture market opportunities. In addition, in response to the government's policy of encouraging insurance capital investment in public infrastructure, the company actively participated in domestic public infrastructure development projects to generate steady returns.

• (3)

  Continued to strengthen investment business operations to provide diverse growth momentum for the group

  CTBC Securities recorded a historic after-tax net profit of NT$1.83 billion in 2025, with an ROE of 14.5%. Its brokerage market share growth was 17%, ranking first among domestic securities firms, largely due to the integration of platforms, marketing, and channels.

  CTBC Investments also reached new heights in 2025, with an after-tax net profit of NT$880 million. As of the end of 2025, its assets under management (AUM) totaled NT$679.8 billion, with its active fund AUM growing by 33%. The company remained committed to innovation and operational optimization. In 2025, it was recognized by the FSC as meeting the requirements of the SITEs Incentive Plan and received the corresponding incentives, reflecting the company’s success in enhancing both its quality and quantity across multiple areas.

  CTBC Venture Capital reported an after-tax net profit of NT$540 million in 2025, with total assets of NT$13.5 billion. In addition to growing its investment scale, the subsidiary remained active in asset management, including the HH-CTBC Partnership, L.P. private fund under HH-CTBC Capital Management, established in partnership with Hon Hai Technology Group. CTBC Venture Capital also newly partnered with Charoen Pokphand Group in 2025 to form Yanagi Capital Partners Ltd., launching the Yanagi Japan Consumer Fund I to target Japan’s consumer goods industry.

• (4)

  Improved digital services through technological innovation to build a secure financial experience

  CTBC Holding is dedicated to strengthening financial services through technology. To enhance the quality and efficiency of advisor services, CTBC Bank leverages generative AI and big data predictive models to develop an “AI Financial Advisor Assistant." By combining advisor expertise with AI collaboration, the Bank systematically analyzes wealth management patterns and complex data, predicts risks, and provides real-time recommendations. Through this synergy of "Professionalism + Technology," the Bank offers investment, insurance, and trust services, providing customers with professional digital financial services that offer a human touch.

  In insurance, Taiwan Life places customers at the core of its operations. For example, its pioneering Older Adult Voice Recording AI Quality Inspection tool utilizes AI speech recognition to verify conversations in real-time, improving recording success rates and supplementing manual reviews with a real-time monitoring mechanism to uphold the Principle for Financial Service Industries to Treat Clients Fairly.

  CTBC Bank actively combats financial fraud through technological innovation. It has pioneered the AI-enabled intelligent anti-fraud ATM, which integrates AI-based image analysis with multiple security mechanisms to identify suspicious behavior, such as face concealment or the presence of multiple faces. The system provides real-time alerts and security options, including account locking, transaction limit reductions, and alarm activation. As of the end of 2025, these mechanisms had been implemented across more than 500 ATMs. The CTBC Bank mobile app is also equipped with various detection and protection features. Beyond its industry-first “recurring transaction alerts”, it recently enhanced the “transaction security alert” feature. If the system blocks a purchase due to risk concerns, users can immediately verify the transaction, serving as a powerful shield for transaction security. In addition, the Bank has launched CTBC Fast-ID, which utilizes device authentication and facial recognition for more efficient cross-institution digital verification, with its scope of service gradually expanding.

• (5)

  Leveraged corporate influence to drive public welfare and build positive social impact

  In addition to pursuing profit growth, CTBC Holding also places great emphasis on having a positive social impact. Embracing its “We Are Family” brand spirit, the Company has a longstanding commitment to engaging with society through its involvement in five key areas: charity, anti-drug awareness, sports, education, and arts and culture.

  The Light Up a Life charity fundraising campaign, launched by CTBC Holding founder Jeffrey Koo Sr., has now been running for 41 years. To date, over NT$2.9 billion has been raised, benefiting more than 760,000 children. Meanwhile, the CTBC Anti-Drug Educational Foundation, which in 2025 received a Social Education Contribution Award from the Ministry of Education, has outreached to over 1.35 million people.

  In sports, CTBC Holding is the first private enterprise in Taiwan to invest in all five levels of baseball, from little league to the major league. In 2025, a total of 212 teams participated in the CTBC Black Panther Cup national tournament, while the number of female coaches and players reached a record high of 300. In the same year, the Company served as the title sponsor of the World Baseball Classic qualifiers, supporting Team Chinese Taipei's pursuit of excellence. Beyond baseball, the New Taipei CTBC DEA basketball team, founded on anti-drug principles, continued to support grassroots basketball, and enhance its home-court operations in New Taipei City. In golf, the 2025 CTBC Ladies Open – JLPGA Tour Special Tournament saw its highest attendance in the event's 14-year history. Furthermore, the CTBC Flying Oyster professional esports team claimed the overall championship of the League of Legends Pacific Championship Series and, in October of the same year, advanced to the top eight at the League of Legends World Championship , marking Taiwan’s best performance in 10 years.

  In education, guided by the philosophy of “putting public welfare first, assisting both underprivileged and outstanding students,” CTBC Holding is working to support high-quality education. Funded for over a decade, CTBC Business School has already become a significant talent pool for Taiwan’s financial sector. We have also continued to fund CTBC University of Technology, CTBC International School (Taipei), and CTBC International School (Tainan) in recent years. Furthermore, CTBC Holding has made notable contributions to arts and culture through the Dreams Initiative Project, which focuses on bringing arts education to rural areas. This initiative has supported over 2,000 students, accompanying children in underserved areas to build confidence and broaden their horizons.

  Since Taiwan Lottery began operating the public welfare lottery in 2007, it has contributed a total of NT$665.1 billion in lottery surplus, lottery tax, and feedback funds to the government to support social welfare programs as well as the national health insurance and pension programs. It has also provided over NT$6.4 billion to support charities, benefiting more than 8.05 million people. In 2022, CTBC Bank was again designated by the Ministry of Finance to be the issuing institution for the fifth term (2024–2033) of the public welfare lottery. It commissioned Taiwan Lottery to continue managing the lottery’s operations and issuance throughout the new term. Lottery sales in 2025 totaled NT$168.1 billion, a record high for the public welfare lottery.

• (6)

  Followed the three sustainability pillars and implemented sustainable finance

  With “Responsible Operations,” “Sustainable Growth,” and “A Connected Society” as the core pillars of its sustainability strategy, CTBC Holding comprehensively supports the U.N.’s Sustainable Development Goals (SDGs), including by incorporating sustainable development into our corporate governance and operational decisions. In 2026, to strengthen the group’s sustainable governance and resource integration, the Company established the position of Chief Sustainability Officer, which is in charge of overseeing sustainable strategies and action blueprints. A member of the Coalition of Movers and Shakers on Sustainable Finance, CTBC Holding is investing and financing companies that support low-carbon transformation. It has committed to achieving net-zero emissions by 2050, obtained Science Based Targets initiative (SBTi) approval of its emissions reduction goals and has pledged to completely divest from coal by 2035. In 2025, its responsible investment amount exceeded NT$1.46 trillion. The Company continues to invest in targets with positive environmental and social impacts, leveraging its financial influence to become a key force in leading Taiwan toward net-zero transformation.

  CTBC Holding has long participated in international sustainable initiatives, including its ongoing role as the Asia-Pacific chair for the Partnership for Carbon Accounting and Financials (PCAF). To further advance these efforts, CTBC Bank launched PathMatch, an AI-powered carbon finance management platform. Developed to address the pain points of financed emission inventories, the platform combines the PCAF methodology with AI technology to assist industries in precisely quantifying their emissions. The platform was selected by the Monetary Authority of Singapore to present at an AI innovation showcase, demonstrating the impact of cross-sector cooperation in sustainable finance. Beyond carbon management, the group led its peers by issuing the first report in Taiwan following the Taskforce on Nature-related Financial Disclosures (TNFD) framework. Furthermore, in 2025, the group partnered with Taijiang National Park to launch Taiwan’s first Other Effective Area-based Conservation Measures (OECMs) demonstration zone, incorporating natural capital risks and opportunities into financial decision-making. Additionally, CTBC Holding continued to deepen its inclusive finance and innovative services. By establishing over 7,500 barrier-free ATMs and promoting digital loan services for micro-enterprises, the Company leverages its core business to meet the diverse needs of various social groups.

  Upholding the concept of “Finance for Generations,” CTBC Holding has been included in the S&P Global Sustainability Yearbook for seven consecutive years, ranking among the top 5% of banks in sustainability performance, and has achieved the highest Leadership A level in the CDP (formerly Carbon Disclosure Project) climate change assessment. Looking ahead, the group will continue to leverage its influence in green finance, from climate risk management to natural resource conservation, and from employee well-being to social inclusion. By putting our “We Are Family” core value into practice, we are working to build a more resilient and sustainable environment for Taiwan’s development.

• (7)

  Enhanced business excellence, innovated for the future, and earned domestic and international awards, reflecting financial strength

  In 2025, CTBC Holding received a record 367 domestic and international awards, including 68 global and Asia-Pacific honors and over 110 fintech innovation awards. These achievements reflect the Company’s comprehensive business strengths and innovative performance.

  CTBC Bank was again named Best Bank in Taiwan by four leading financial media companies, namely Euromoney, The Asset, Global Finance, and Bloomberg Businessweek, underscoring its sound management, outstanding business performance, and strong competitiveness. In recent years, CTBC Bank has launched over 100 innovative digital services spanning SME financing, smart customer service, anti-fraud mechanisms, payment services, and compliance management. These efforts have effectively optimized operational processes while enhancing service precision and security to create warm and efficient financial experience. As its brand value continued to rise, CTBC Bank was named Taiwan’s Most Valuable Bank Brand for the 11th consecutive year by Brand Finance, remaining the only bank in Taiwan to rank among the world’s top 100 banking brands.

  On the back of its strong R&D capabilities, CTBC Bank received the Outstanding Financial Innovation Lab award from Global Finance for the fourth consecutive year. In all, the Bank earned 23 international awards in 2025, including Best AI Fintech Application Bank and Best Financial Innovation in Asia-Pacific. Meanwhile, Taiwan Life was recognized as the Asia-Pacific Smart Insurance Leader by IDC and Most Innovative Life Insurance Company in Taiwan by International Finance Magazine.

  Throughout the year, we leveraged technology to drive sustainable finance through carbon accounting and ESG investment and financing solutions, assisting our corporate customers in their global supply chain decarbonization. These efforts also earned multiple sustainability awards from international institutions, including International Data Corporation (IDC), The Asset, and the British Standards Institution (BSI).

Latest credit ratings and publication dates

2026 business overview and strategies

CTBC Holding upholds the principles of stable operation and sustainable development, leveraging the dual engines of banking and insurance to deepen its domestic and overseas footprints. The Company aims to expand diverse profit sources and evaluate potential M&A opportunities as they arise to steadily grow its business scale. Meanwhile, CTBC Holding actively promotes the growth of its subsidiaries by fostering cross-selling and resource integration to enhance operational synergies. Additionally, the Company will seize opportunities in digital finance with a customer-centric approach to developing convenient financial services. While expanding its business, CTBC Holding remains committed to strengthening corporate governance, enhancing transparency, and strictly complying with laws and regulations to become the most trustworthy financial institution for its customers. The 2026 business overview is as follows:

• (1)

  Continue to enhance core business competitiveness, target all customer groups, and increase overseas profitability

  Building on its foundation of sound management, CTBC Bank will work to further strengthen its core competitiveness while exploring differentiated value propositions. In wealth management, it will leverage its established retail customer base and use AI to drive new growth, expanding its range of products and services. In response to the government initiative to turn Taiwan into an Asian asset management center, the Bank will accelerate its private banking upgrade by scaling up family office services and optimizing cross-border integration to meet the domestic and overseas needs of HNW customers. In institutional banking, as it aims to serve all customer groups, the Bank will continue developing tailored and efficient products and services for SMEs while utilizing data-driven risk management to refine risk control. Additionally, we will continue to expand our non-Taiwanese customer base and leverage our diversified product portfolios, customized capabilities, and professional teams to provide differentiated services.

  In overseas operations, CTBC Bank aims to integrate platforms through the Asia-Pacific region and strengthen the connectivity of its overseas products. By leveraging its cross-border platforms and diverse product advantages, the Bank provides comprehensive financial services across the region. In the high-growth Southeast Asian market, the Bank focuses on expanding its Taiwanese and local niche customer base. Amid the global supply chain shift, CTBC Bank is actively expanding in the U.S. and Japanese markets while leveraging cross-border platform collaboration to seize opportunities for Taiwanese customers in overseas investment and local supply chain finance. By connecting its overseas branches and subsidiaries, the Bank meets the international investment needs of corporate customers as well as the needs of local supply chains. In overseas retail banking, the Bank will develop differentiated business models tailored to specific markets.

• (2)

  Taiwan Life will continue to strengthen its profit base, positioning itself as the most financially healthy and widely recommended insurance company

  In line with international standards, Taiwan Life will augment the scale of new contracts as well as increasing the long-term value of these new contracts. It will solidify its profit base by expanding the sales of value-driven products (protection type and foreign currency-denominated products) and growing its sales agent force. Furthermore, Taiwan Life will continue building its “product + service” competitive advantage, including by developing spillover-effect products that meet customer needs, enhancing the integrated health and aged care service platform, and improving related services. These efforts are designed to meet customers' health and aging needs, thereby increasing the frequency of customer engagement. In addition, the company will continue to strengthen its infrastructure by integrating AI and big data analytics to refine the end-to-end customer experience and enhance operational efficiency. Regarding investments, Taiwan Life will continue to optimize asset–liability management, expand its investment portfolio, and strengthen its investment capabilities to boost profit momentum. Key actions include increasing recurring income, strengthening core holdings, expanding domestic project investments, and continuing to add high-yield real estate projects.

• (3)

  Strengthen investment-related business structure, ensuring stable income and diverse profit models

  CTBC Securities will continue to enhance customers’ investment experience by building a more comprehensive product suite. The company is dedicated to achieving a balance between business expansion and risk control to ensure the steady growth of operating revenue. In response to shifting government policies and the rapid development of fintech, CTBC Securities will effectively drive business growth and strengthen synergies with its parent holding company and other subsidiaries.

  In response to changes in laws, government policies, and the overall environment, CTBC Investments will adopt a strategic planning approach regarding its products and sales. It will rely on ETFs, Vietnam-related funds, and multi-asset funds as its core product lines. By integrating internal and external resources to enhance its active investment capabilities, it aims to strengthen its investment asset structure, focusing on innovative high-margin products and expanding its retail customer base. Furthermore, the company will launch domestic sales and advisory services for mandated offshore private equity funds and non-securities investment products. These initiatives aim to meet the product demands arising from Wealth Management 2.0 and the government push to turn Taiwan into an Asian asset management hub.

  CTBC Venture Capital will continue to scale up its overall business through broadening investment positions and private equity fund management, further increasing its investment influence and strengthening its profitability. In 2026, the company will actively seek enterprises with growth potential and extend its overseas investment channels to increase investment and profit opportunities. In addition, it will continue to deepen its private equity fund management business, promoting venture capital funds with forward-looking themes to build stable management fee income and create growth momentum for future carried interest.

• (4)

  Use digital technology to create innovative services and maintain market leadership

  CTBC has established a dedicated AI team to drive R&D and cross-departmental applications, focusing on three key areas: machine learning, computer vision, and natural language processing. The Company is also building a comprehensive AI governance framework based on three pillars—development, compliance, and quality—to ensure an efficient and secure digital financial ecosystem. Regarding R&D and implementation strategies, CTBC Holding will adopt a dual-track approach combining strategic alliances with in-house development. Accordingly, the Company will leverage the technological strengths of tech giants to accelerate the deployment of applications while also continuing to invest in proprietary R&D to build a flexibly architected AI platform to ensure that its technologies can be continuously iterated and refined.

  Additionally, the Bank was among the first banks approved by the FSC to participate in the virtual asset custody pilot program. The Bank will conduct testing and practical validation of its virtual asset custody mechanisms. Meanwhile, it will actively participate in the Bankers Association’s stablecoin regulatory advisory group. By doing so, the Bank is not only providing recommendations for institutionalized management, but also proactively developing the relevant business system architecture to meet future market demand.

  Looking ahead, CTBC Holding will continue to advance its intelligent transformation, moving toward its "Intelligent Anytime" vision and building an "AI-Powered Bank" with AI as its core engine. We will focus our deployment of AI in three key areas: enhancing customer experience, improving operational efficiency, and strengthening risk control. Through these innovative transformations, CTBC Holding aims to cement its status as customers’ most trusted financial institution.

Future prospects and expectations

Amid the ongoing changes in the global financial environment, CTBC Holding will continue to uphold its principle of stable operations, closely monitor financial market trends, and strengthen the group’s risk management, risk prevention, and operational resilience. We will remain customer-centric, optimizing products and service experiences while leveraging digital and AI technologies to drive efficiency and innovation, providing convenient, high-quality financial services. Our goal is to continually build competitive new business models.

Looking ahead, CTBC Holding and its subsidiaries will uphold the “We Are Family” brand spirit, focusing on improving profitability and sustainable growth. We will actively fulfill our corporate social responsibilities and create shared value for society. Guided by our “Taiwan Champion, Asia leader” vision, we will continue to move toward our goal of becoming a leading regional financial institution in Asia, realizing mutual growth for our shareholders, customers, and society.

The position of CTBC Holding Corporate Governance Officer is held by Alex Lu, who fulfills the regulatory requirement of having three or more years' experience handling legal compliance affairs in a managerial position at a public company. The responsibilities of the Corporate Governance Officer are supervising the Corporate Governance Department and the Corporate Affairs Department, providing relevant information and other assistance necessary for directors to perform their duties, and continuing to promote the strengthening of the corporate governance of CTBC Holding and its subsidiaries.

Key duties in 2026:

• The main duties of the Corporate Governance Officer are as follows:

  • (1)Handling matters related to Board and shareholder meetings in accordance with the law;
  • (2)Producing Board and shareholder meeting minutes;
  • (3)Assisting directors in taking office and their continuing education;
  • (4)Providing information required by the directors to conduct business;
  • (5)Assisting the directors in legal compliance;
  • (6)Reporting to the Board whether the qualifications of the independent directors during nomination, election, and their term of office conform to relevant laws and regulations;
  • (7)Handling matters related to the change of directors; and
  • (8)Other matters stipulated in the Company's Articles of Incorporation or contracts.

• Continuing efforts to strengthen corporate governance-related matters:

  • (1)
    Strengthening the corporate governance culture of the CTBC Holding group by:

    1. (a)
       Reviewing corporate governance-related rules and amending internal rules when necessary;
    2. (b)
       Regularly convening meetings attended by the board secretariats and corporate governance departments of the Company and its subsidiaries to support effective and efficient communication as well as to improve the professionalism of the corporate governance personnel;
    3. (c)
       Compiling monthly corporate governance reports for providing the relevant information to directors, supervisors, and the board secretariats and corporate governance departments of the CTBC Holding group; and
    4. (d)
       Supervising the implementation of corporate governance improvements.
  • (2)
    Supporting the Board to carry out its functions effectively and efficaciously by:

    1. (a)
       Maintaining smooth communication between directors and business units and facilitating communication of independent directors with accountants, the Chief Auditor, and other internal units in order to help independent directors perform their duties;
    2. (b)
       Providing directors with diverse education and training courses based on industry and governance trends;
    3. (c)
       Developing improvement plans and monitoring their implementation based on suggestions from external consultants and the Board performance evaluations; and
    4. (d)
       Providing all necessary assistance to the Board to carry out its functions effectively and efficaciously.

In 2025, the continuing education undertaken by the Corporate Governance Officer was as follows:

Tasks performed in 2025 were as follows:

• Handled matters related to shareholder meetings, Board meetings, and performance evaluations:

  • (1)
    Convened the 2025 Board, functional committee, and annual shareholder meetings and handled the relevant agenda items and minutes in accordance with relevant laws and regulations.
  • (2)
    Convened the Company's Annual General Meeting and the election of the Board of Directors' ninth term.
  • (3)
    Reported to the Board of Directors on the review results confirming that the independent directors met all qualification requirements prescribed by relevant laws and regulations during their nomination, election, and terms of office.
  • (4)
    Ensured that the operations of the Board of Directors and the functional committees complied with relevant laws and regulations, that the directors were informed in advance of any recusal, and that all directors had sufficient and complete meeting materials in accordance with the Rules of Procedure for the Board of Directors and the charters of the functional committees.
  • (5)
    Conducted the annual performance evaluations of the Board, Board members, and functional committees.

• Assisted the directors in performing their duties, providing required information, and arranging education and training courses for the directors:

  • (1)
    Conducted new director orientation.
  • (2)
    Provided the directors with information needed to perform their duties and assisted them in maintaining good communication with the Company's management.
  • (3)
    Provided monthly corporate governance reports to share the latest information, regulations, and developments pertaining to the Company's governance.
  • (4)
    Assisted the independent directors in communicating with accountants and the Chief Auditor.
  • (5)
    Conducted annual training for directors and supervisors.

• Supervised the Company's governance system and the planning, establishment, revision, and implementation of relevant procedures.