-0-

2007125

-1-

()

()

-2-

.

.

.

IV.

2

-3-

11% 108

2005

2.0%

25.0%

73.0%

2005 20042003(1)

721 931 1,331

27 47 68

52 91 104

5 6 7

0.8% 0.7% 0.6%

23.3% 16.6% 11.5%

2.6% 8.5% 22.9% :(1) 2004

-4-

2.4%

2

N/A

< 0.1%

0.1

9/1992 3/200312/20011/19977/1963

29149(259)7,363 ()

< 0.1% 0.7%25% 73%(%)

-0.3%1.5%10.9%(%) (2)

1 5108358 /

0.069.5338.5967.6 ()

(1) (2)

:(1) 2005/12/31 (2) 2006718,2005

2006109

-5-

:

:

:

:

:

:

:

:

:

:

:

-6-

:

:

:

: ()/ AIG

:

:

:

:

:

:

:

:

:

-7-

23.3%

16.6%

11.5%

2003 2004 2005

5,2476,372 7,163

2003 2004 2005

26,742

46,530

68,301

2003 2004 2005

NT$

NT$

%

-8-

9M 2006

6%-34%

128%

4.2% 0% 0.4% 1.4%

=82

3.5

0.98.2

4.2

-0.4

9M

9M

34

-9-

.

.

.

IV.

9

-10-

2005

2005

NT$ 20042003

132.4 154.6 159.0

5.0 6.5 7.4

708.7 834.3 967.6

32.0 47.8 54.4

ROE (1) 24.9% 21.8% 18.7%

ROA 0.77% 0.85% 0.82%

63%

13%

14%

63%

: NT$1,590

,11%312,00035010

,

:

(1)

-11-

2005

29.3

26.5

16.0

15.3

112.7

67.0

51.8

51.7

48.7

30.6

9.6%

11.2%

9.2%8.3%

14.4%

2001 2002 2003 2004 2005

:

NT$ %

-12-

(2004)

ISO (20001998)

(2005)

A+ (2005)

(2006)

-13-

9M 2006

(-6%)

: 2/3VUL1/3

3.0

8.0

27.2

12.616.0

2.5 2.548.7

11.7

34.8

9M 2005 9M 2006

=

0%

27%

241%

-74%

40%

=13.2%

-14-

0.14 2.87 3.01

VUL () 18.15 18.15

9.01 9.01

9.30 0.05 9.35

6.67 6.67

2.54 2.54

18.45 5.41 24.87 48.73

-15-

25

77.271.0

0102030405060708090

9M 2005 9M 2006

%

13

81.3

89.5

30

40

50

60

70

80

90

9M 2005 9M 2006

%

-16-

2 5

2929

33 31

2 4

1110

8 7

66

8%9%

2005 9M 2006

968

834

709

598528

-100

100

300

500

700

900

1,100

2001 2002 2003 2004 2005

6.4% 5.3% 5.5% 5.2% 5.1%

16.3%

919 1,004

-17-

:

(1) CMBS,

(2)

(3) 20061

CMBS#1 CMBS#2 REIT#1 CMBS#3

01/10/05 06/22/05 12/26/05 Q1 2007

$28 $31 $113 $14

56%(1) 46%(1) 20% 40%(1)

1 1

2, 1

, 1

3

(@2.85%)(2)

(@2.69%)(2)

(@2.25%)(2)

5 7 5

$7.9 $7.3 $35 (3) N/A

-18-

(, 30MBS6%), () ()

(currency swap)50% (proxy hedging)

-19-

.

.

.

IV.

19

-20-

20015010850

2005

NT$Bn 200520042003

52.20 54.34 207.10

64.64 74.68 289.44

(2.00) 0.02 (0.25)

69.26 86.27 338.53

3.44 10.51 19.81

6%

1%

39%

31%

20%

3%

: NT$2,210

-21-

480

379329 320 312 307 291

341411

565

891959

1,012

1,225

1,522

0

200

400

600

800

1,000

1,200

1,400

1,600

(1)

:(1)

: 200512

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

-22-

80%

()

QoQ

-5.9%

7.3%

6.5%

0.5%

8.7%

9.3%

7.1%

33 34

3%

: 11

33 34

30 30

20 20

9 95 4

3%3%

Q2 2006 Q3 2006

217 232

-23-

8 53 61

5 45 50

7 13 20

0 2 2

13 12 25

() 28 80 108

0 1 1

28 81 109

93

6750

6450 47

30

4760

4558 59

123114 110 109 108 102

-24-

1.22% 1.24%

0.79%

9M 2005 2005 9M2006

14.40%

21.21%20.09%

9M 2005 2005 9M 2006

2.99% 3.02%

2.48%

9M 2005 2005 9M 2006

(NIM)

-25-

14%11% 12%

2005 1H 2006 9M 2006

()

: 110780

12.0

2.2

6.6

2005 1H 2006 9M 2006

-

-26-

2.32%2.37%2.36%2.39%

2005 Q1 2006 Q2 2006 Q3 2006

(20)

NPL 2.5% 40%60%

43.67% 42.53% 45.32%47.04%

2005 Q1 2006 Q2 2006 Q3 2006

-27-

2.66%2.45%2.75%2.76%

2005 Q1 2006 Q2 2006 Q3 2006

4.9%7.5%

10.0%13.7%

2005 Q1 2006 Q2 2006 Q3 2006

90

(2)

(1)

:(1) / (2)

276%

115%

190%

256%

2005 Q1 2006 Q2 2006 Q3 2006

9.711.5

13.510.3

2005 Q1 2006 Q2 2006 Q3 2006

-28-

4.04%

2.99%2.33%

1.34%

2005 Q1 2006 Q2 2006 Q3 2006

25.0 24.9 25.3 25.8

2005 Q1 2006 Q2 2006 Q3 2006

0.00%

0.62%

0.00%

0.83%

2005 Q1 2006 Q2 2006 Q3 2006

(2)

:

(, )

90

(1)

:(1) (2) (3) Q2 20060.18%0.62%

(2) (3)

-29-

.

.

.

IV.

29

-30-

2002 2003 2004 2005 5,452 5,811 6,674 8,825 642 1,636 1,929 1,881 (3,728) (4,083) (4,740) (6,492) 2,453 3,779 4,244 4,402 (1,204) (2,550) (3,011) (4,729) (1,000) (1,000) (1,000) - 249 229 233 (326) () (85) (46) (27) 68 164 183 206 (258) (NIM) 3.93% 3.57% 3.67% 3.03% / 10.27% 21.97% 22.42% 17.57% / 61.35% 54.82% 55.10% 60.64% 10.23% 6.36% 4.26% 2.39% 10.76% 20.62% 24.39% 47.04% 1.43% 1.75% 1.87% 1.30% 23.29% 35.26% 38.86% 22.21%

-31-

2002 2003 2004 2005

3,671 3,382 2,922 10,017

(1) 103,125 123,889 134,326 204,769

171,737 215,886 227,503 338,539

148,476 170,025 190,769 289,443

10,534 10,719 10,921 19,818

(1) 69.46% 72.87% 70.41% 70.75%

/ 6.13% 4.97% 4.80% 5.85%

7.69% 6.32% 6.39% 8.24%

11.28% 9.33% 9.69% 10.53%

(1)

-32-

120.5125.9122.9140.7104.9EV (before COC)

84.892.788.3107.868.5EV (after COC)

35.7

35.9

84.6

32.9

56.1

84.6

33.234.636.4Cost of Capital (COC)

Inv Return 5.30%

Inv Return 4.80% RDR 12.9%RDR 10.9%

41.338.320.3VIF

84.684.684.6Net Worth

All else equal except:Inv Return 5.05% p.a.

RDR 11.9% p.a.

All else equal except:

Base Case ScenarioUnit: NT$BnValuation Date: 31 December 2005Solvency Basis:200% RBC

-33-

84.892.788.3107.868.5EV after COC

107.2121.2113.3135.291.5AV (5 years NB)

35.733.234.632.936.4Cost of Capital(COC)

7.28.87.98.77.2V1NB after COC

After COC

131.9

35.9

84.6

167.8

56.1

84.6

157.4143.0118.5AV (20 years NB)

Inv Return 5.3%

Inv Return 4.8% RDR 12.90%RDR 10.90%

41.338.320.3VIF

84.684.684.6Net Worth

All else equal exceptInv Return 5.05% p.a.

RDR 11.90% p.a.

All else equal except

Base Case Scenario

Unit: NT$BnValuation Date: 31 Dec, 05Solvency Basis:200% RBC