CHANG HWA COMMERCIAL BANK Business Summary

Chang Hwa Commercial Bank (CHB) operates a diversified financial services model, generating revenue primarily through net interest income from its extensive loan and deposit portfolios, supplemented by fee-based income from wealth management, foreign exchange, and digital banking. The bank’s operations are organized into Corporate Banking, focusing on SME and large enterprise financing; Retail Banking, covering mortgages and consumer credit; and International Banking, which is a strategic growth area targeting 30% of total profits from its global branch network. In the competitive landscape of Taiwan's state-affiliated banking sector, CHB maintains a robust middle-market position alongside direct competitors such as Mega Financial Holding, First Financial Holding, and Hua Nan Financial Holding. CHB distinguishes itself through its "SME-first" lending strategy and a significant domestic footprint of 175 branches, positioning it as a stable, government-backed institution with a focus on digital modernization and ESG-aligned project finance. Founded in 1905 by Wu Ju-Hsiang and local entrepreneurs, CHB is currently led by Chairman Kuang Hua Hu, a Ministry of Finance representative appointed in 2024, and President Chih-Kuang Chien, a veteran executive who joined from First Commercial Bank in 2025 to spearhead operational efficiency and international expansion. The bank’s leadership is overseen by a board heavily influenced by the Taiwan Ministry of Finance, which remains the largest single shareholder with a 12.19% stake, alongside other state-linked entities like Chunghwa Post and the National Development Fund. This government-anchored ownership structure, solidified following the resolution of a long-term management dispute with Taishin Financial Holding, provides the bank with high credit stability and strategic alignment with national economic policies, including the "New Southbound Policy" for Southeast Asian growth.