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Annual Report 2015
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(6)
Available-for-sale financial assets – net
December 31, 2015
December 31, 2014
NT$
US$
NT$
Stocks
$
8,823,548 $
268,290 $
9,414,696
Commercial papers
76,145,276
2,315,291
73,045,059
Bonds
134,546,263
4,091,044
100,251,172
Beneficiary securities
567,601
17,259
857,103
Beneficiary certificates
17,962
546
-
Certificates of deposit
12,414,190
377,469
2,585,063
Subtotal
232,514,840
7,069,899
186,153,093
Adjustments for change in value of
investment
(
165,475 ) (
5,032 )
2,220,691
Accumulated impairment loss
(
842,271 ) (
25,610 ) (
1,028,508 )
Total
$
231,507,094 $
7,039,257 $
187,345,276
A.
As of December 31, 2015 and 2014, the aforementioned available-for-sale financial assets amounted to NT$14,612,323 thousand and
NT$11,419,095 thousand, respectively, and were pledged to other parties as collateral for business reserves and guarantees.
B.
As of December 31, 2015 and 2014, available-for-sale financial assets were sold under repurchase agreements with fair values of
NT$499,076 thousand and NT$39,350,519 thousand, respectively.
C.
The Bank and its subsidiaries recognised (loss) gain of NT($1,474,828) thousand and NT$2,612,608 thousand in other comprehensive
income for fair value change for the years ended December 31, 2015 and 2014, respectively.
D.
The Bank and its subsidiaries recognised impairment loss for the long-term operating losses of the investee for the years ended December
31, 2015 and 2014. Details are provided in Note 6(29).
E.
The Bank and its subsidiaries recognised interest income of NT$3,554,187 thousand and NT$3,177,925 thousand on holding debt
instruments for the years ended December 31, 2015 and 2014, respectively.
F.
For the years ended December 31, 2015 and 2014, amount realized and transferred from other equity in the statements of change in equity
to current profit was NT$886,419 thousand and NT $955,578 thousand, respectively.
G.
In consideration of increasing capital returns, the Bank and its subsidiaries have invested in structured entities issued and managed by
independent third parties—Residential Mortgage Backed Security, which are accounted for by the Bank and its subsidiaries under
available-for-sale financial assets-beneficiary securities. The above-mentioned asset securitization products have maturity dates within
April, 2035 to December, 2035.
As of December 31, 2015 and 2014, the book value and the maximum credit risk exposure of structured entities is NT$110,025 thousand
and NT$333,703 thousand, respectively. The Bank and its subsidiaries recognised interest income of NT$29,003 thousand and
NT$36,904 thousand on structured entities for the years ended December 31, 2015 and 2014, respectively.
(7)
Held-to-maturity financial assets – net
December 31, 2015
December 31, 2014
NT$
US$
NT$
Central Bank’s certificates of deposits
$
171,370,000 $
5,210,715 $
143,200,000
Financial bonds
20,920,762
636,121
13,867,100
Government bonds
3,826,080
116,337
3,623,054
Corporate bonds
3,411,698
103,737
1,104,886
Total
$
199,528,540 $
6,066,910 $
161,795,040
A.
As of December 31, 2015 and 2014, the aforementioned held-to-maturity financial assets amounting to NT$5,546,000 thousand and
NT$5,530,800 thousand, respectively, were pledged to other parties as collateral of business reserves and guarantees.
B.
The Bank and its subsidiaries recognised interest income of NT$1,845,127 thousand and NT $1,845,033 thousand on holding held-to-
maturity financial assets for the years ended December 31, 2015 and 2014, respectively.
(8)
Investments accounted for under the equity method – net
December 31, 2015
Investee Company
NT$
US$
Percentage of
Shareholding
Cathay Investment & Development Corporation (Bahamas)
$
58,935
$
1,792
100.00
Mega Management Consulting Co., Ltd.
62,367
1,896
100.00
Cathay Investment & Warehousing Co., S.A.
59,950
1,823
100.00
Ramlett Finance Holdings Inc.
5,902
180
100.00
Yung Shing Industries Co.
668,539
20,328
99.56
China Products Trading Company
27,517
837
68.27
Mega 1 Venture Capital Co., Ltd.
27,323
831
25.00
IP Fund seven Limited (Note2)
1,364
41
25.00
An Feng Enterprise Co., Ltd.
11,911
362
25.00
Taiwan Finance Corporation
1,593,538
48,453
24.55
Everstrong Iron & Steel Foundry & Mfg. Corporation
43,379
1,319
22.22
China Real Estate Management Co., Ltd.
190,196
5,783
20.00
Mega Growth Venture Capital Co., Ltd.
148,712
4,522
11.81
Total
$
2,899,633 $
88,167