The financial industry faced more than its share of challenges in 2022, most notably market fluctuations and the pandemic. However, CTBC Holding continued to deliver a stellar performance in terms of profitability, with subsidiary CTBC Bank even recording record-high profits. And throughout the year, we continued to implement effective ESG governance and risk management to ensure the Company's long-term stable operations. Indeed, we were the first among Taiwan's "too big to fail" domestic systemically important banks (D-SIBs) to meet 2025 standards for three capital adequacy ratios― doing so well ahead of schedule. Although Taiwan Life was affected by significant epidemic prevention insurance claims payouts, if excluding this one-time loss, the subsidiary still led the industry in profit for the year.

The tangible impact of CTBC Holding's ESG efforts received further recognition in 2022. As well as once again being selected as a constituent stock of the Dow Jones Sustainability Index (DJSI) World Index, DJSI Emerging Markets Index, and the MSCI Taiwan ESG Leaders Index, we were also included in the Bloomberg Gender Equality Index for the second consecutive year and ranked first among Taiwanese companies in the Greater China Business Sustainability Index. CTBC Bank was also again named as one of the Top 1000 World Banks by The Banker, topping the Taiwanese banking industry for the sixth year running, and it was named by Brand Finance in the Global 500 most valuable brands list alongside Taiwan Life. The Bank became the first in the industry to be recognized in every category at the Taiwan Banking and Finance Best Practice Awards, often referred to as the Oscars of Taiwan's financial industry. Moreover, it became the first Taiwanese financial institution to receive the Achievement in Climate Risk Management in Asia Pacific honor from The Asian Banker. Furthermore, in terms of promoting green energy financing, our syndicated loan for the Greater Changhua 1 wind farm earned recognition including The Asset's Renewable Energy M&A Deal of the Year, Global and Global Finance's Outstanding Leadership in Sustainable Infrastructure Finance in Asia Pacific. That deal also realized the competent authority's vision of Taiwanese banks being among Asia's strongest supporters of renewable energy projects. Taiwan Life, meanwhile, has been committed to sustainable financing for eight years. In that time, it has invested in public utilities including solar power plants, wastewater treatment plants, and offshore wind power. Such investments now total NT$55.9 billion and in 2022 won it the Sustainable Infrastructure Award from The Asset for the third consecutive year and the Investor of the Year for Insurers, Asia Pacific honor, also from The Asset.

Net-zero emissions by 2050 became a national policy in 2022, which also saw the Climate Change Response Act enacted. Keenly aware for many years now that the financial industry has a responsibility to lead the sustainable developments of society and the environment, CTBC Holding has consistently been among the first to sign on to major international sustainability initiatives. In 2022, this leadership saw us invited by the FSC to join the Coalition of Movers and Shakers on Sustainable Finance and to chair the coalition for its inaugural year. By continuing to wield the power of impact financing as a D-SIB, we are supporting the government's major ESG policies and helping our peers and customers to move toward low-carbon operations. CTBC Holding will continue leveraging our core competencies in product innovation and digital transition in order to promote low-carbon transition and sustainable transformation, thereby creating a better environment and a better future.

CTBC Financial Holding Co., Ltd.
Jia-Wen Chen