Honest Lending
Stakeholder Engagement Sustainability Strategy Corporate Governance Leading Investment Innovative Finance Golden Practices Tender Care
Quality of Credit Assets
Aside from continuing to boost sales growth, Taipei Fubon Bank also remains committed to prudently implementing risk management practices. As of year-end 2016, the Bank's NPL ratio and NPL coverage ratio reached highly desirable levels — 0.2% and 652.12%, respectively — and its asset quality has laid a strong foundation for the Bank to continue maintaining superior operations, a sound inancial structure, and attractive prospects for future development.
Dec-16 652.12%
NPL Provisioning Coverage Ratio
Mar-16 716.80%
Jun-16 678.90%
Sep-16 663.16%
Dec-15 816.37%
NPL Ratio
Mar-16 0.18%
Jun-16 0.18%
Sep-16 0.19%
Dec-16 0.20%
Dec-15 0.15%
0.27% Market average
9.4
In order to effectively implement these rules, sales agents at Taipei Fubon Bank who handle applications on behalf of institutional clients applying for credit must complete a "Sustainability Risk Assessment Approval Form" for each application (in 2016, a total of 6,470 such assessments were made), which includes evaluating the current implementation status of environmental and corporate social responsibility measures by enterprises. Enterprises which are found to have violated environmental regulations or corporate social responsibility guidelines resulting in a major adverse impact on sustainable development are subject to lending restrictions: In cases where, due to an environmental infraction, an enterprise's operations are suspended, a major penalty is assessed, a conviction occurs in a court of irst instance, or the company violates a legal order to suspend production or cease operations, the Bank may not engage in any new loan cases with the company. In the case of existing loan accounts, after a report has been issued in accordance with the Bank's Regulations Governing the Handling of Major Incidents, the account is handled in accordance with a determination made by senior management. In 2016, outstanding loans amounting to a total of approximately US$100 million were phased out as a result of violations of the Bank's internally-formulated sustainable lending guidelines (examples include companies in the gambling sector and tobacco industry). At Taipei Fubon Bank, we will continue to reinforce our sustainable lending system by actively engaging in and responding to international trends in sustainable lending. Moreover, the Bank will continue to promote loans aimed at companies operating in the green energy industry in order to generate more positive energy in society and strengthen our commitment to sustainable development. In doing so, we will fulill our corporate social responsibility and achieve a win-win situation that beneits our enterprise customers as well as the Bank.
In view of the world's continued push toward green inance, Taipei Fubon Bank made an assessment to join the Equator Principles Association. Incorporating the rigorous credit risk management mechanisms of the Equator Principles into the Bank's major inancing projects will further reinforce the Bank's ability to control risk, including identifying, assessing, and managing environmental and social risks. These measures will help reduce adverse environmental and social impacts resulting from inancing projects, urge borrowers to incorporate environmental protection and corporate social responsibility criteria into their business operations, and leverage our positive role in the inancial industry, thereby helping Taipei Fubon Bank have a bigger impact on helping industries pursue sustainable development.
Description of Special Loan
Projects Actual Results for FY2016
Financing for Certiied Green Buildings
Special project loans featuring preferential
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inancing conditions are provided to construction companies to build "green buildings".
As of the end of 2016, a total of approximately
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NT$1.5 billion in inancing has been authorized.
Energy Conservation Financing Scheme – Loans to Integrated Energy Service Companies (ESCOs)
Special project loans available for energy-saving
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projects in which the amount saved on electricity bills is used to repay the loan.
As of the end of 2016, a total of approximately
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NT$50 million in loans have been approved.
Special Case Solar Power System Loans
Special project loans are available for the
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installation of solar panels in which income obtained from the sale of generated power is used to repay the loan.
As of the end of 2016, a total of approximately
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NT$730 million in loans have been approved.
Financing for Green Energy Equipment and Green Buildings
Loans with preferential terms are available for
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b u y i n g " g r e e n " o r e n e r g y - s a v i n g e q u i p m e n t , including mortgages on green buildings for Bank customers.
In 2016, a total of approximately NT$470 million in
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new loans were made.
9.4.2 Green Energy Special Loans
By continuing to promote and expand loans to enterprises in green energy industries, the Bank underscored its commitment to good corporate social responsibility practices.
In response to the "Honest Lending" strategy set forth in the "Fubon ESG Visioning Project" strategic blueprint, Taipei Fubon Bank has formulated a set of comprehensive lending standards that take into account ESG risks and opportunities in order to effectively boost the impact Fubon's corporate social responsibility policies have on the inancial industry.
Taipei Fubon Bank's "Green Energy Special Loans" help foster sustainability in numerous ways, including helping companies invest in eco-friendly products and energy-saving equipment and develop green manufacturing systems and reduce pollution; promoting the construction of green buildings; and encouraging consumers to buy eco-friendly products and appliances with energy-saving labels. Our green energy loans come in many forms, as outlined below:
Honest Lending
Stakeholder Engagement Sustainability Strategy Corporate Governance Leading Investment Innovative Finance Golden Practices Tender Care
Furthermore, as of the end of 2016, green industry projects undertaken by Taipei Fubon Bank resulted in outstanding loans of approximately NT$9.89 billion, representing an increase to 1.89% of total outstanding loans to enterprises. Below is a summary of these projects:
In order to help companies and consumers obtain funds for green investments, Taipei Fubon Bank will continue to promote and expand green energy, energy conservation, and green industry loans, thereby enabling the Bank to fulill its corporate social responsibility and jointly cultivate a greener society.
for Promoting Sales of Green Energy Products," which provides tangible rewards to cardholders who care about the environment and greatly reduces burdens not just on the environment, but on our customers' wallets.
From February 1 to February 29, 2016, customers who spent NT$15,000 or more on PChome's webstore to buy designated energy-saving home appliances using a Fubon credit card received a NT$900 cash rebate card (registration was required). The promotion significantly helped boost income from credit card payments in March 2016:
Beginning in 2017, Taipei Fubon Bank plans to increase proportion of points in the Bank's points exchange program that can be redeemed to make cash donations to environmental education foundations and for purchases of more kinds of green energy products. Expanding the points program will not only boost Taipei Fubon Bank's image as a supporter of people who buy eco-friendly products, but also help encourage more cardholders to do their part in helping to protect the environment.
Type of Green Industry
Total Loans Outstanding, Year-End 2016 (NT$, in thousands)
Proportion of Outstanding Loans to Enterprises as of Year-end 2016
Total Loans Outstanding, Year-End 2015 (NT$, in thousands)
Proportion of Outstanding Loans to Enterprises as of Year-end 2015
LED 3,776,922 0.72% 4,381,262 0.71%
Solar Power 3,974,755 0.76% 4,641,617 0.75%
Bicycle Manufacturers (including
parts and components) 602,658 0.11% 529,202 0.09%
Waste Collection and Disposal 870,355 0.17% 1,169,287 0.19%
Recycling Industry 634,783 0.12% 590,033 0.09%
Pollution Remediation (including manufacture of related equipment)
29,431 0.01% 46,265 0.01%
Total 9,888,904 1.89% 11,357,666 1.84%
Actual No. of Customers in
Rewards Program Estimated No. of Customers
Applicable to the Program Achievement Rate Target Total Cash Rewards Distributed
143 300 48% NTD 128,700
9.4.3 Action Plans and Results of Credit Card Sales Promotions
Action Plans 2016 Results
Credit Card Promotion for Energy-eficient Appliances
A total of 143 households beneited from the customer rewards program.
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Increased the preponderance of green energy products among credit card discounts
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offered by Taipei Fubon Bank.
Boosted the effectiveness of e-commerce marketing promotions and increased the
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brand's charitable image through cause marketing.
Taipei Fubon Bank strongly supports energy conservation and environmental protection policies, including inding ways to promote large-scale e-commerce projects that involve government subsidies for energy conservation, such as our cooperative endeavor to launch the "Credit Card Rewards Program
10.1
Heading Page Capital Investment
Financial Capital
Total expenditures:
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NT$
395,470,000
Total investments in IT equipment:
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NT$
1.7
millionHuman Capital
Employee participants:
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68
Total volunteer hours:
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