Mega Bank Annual Report 2017

3 Annual Report 2017 -3- II. Change in Organization Structure In 2017, the Bank set up the “Credit Products & Marketing Department” to strengthen the planning and marketing capabilities of the credit businesses; moreover, the “Offshore Banking Branch” was restructured. Moreover, in order to meet the global trend of anti- money laundering and combating financial crimes, the original “Anti -Money Laundering Center” was renamed as the “Anti - Money Laundering & Financial Crime Compliance Department”, managing and expanding to the prevention of financial crimes such as bribery, corruption, tax evasion, Internet crimes, fraud, and misconduct. Moreover, the Bank specifically set up the “Anti -Money Laundering & Financial Crime Compliance Committee” under the “Compliance Committee” to ensure that various measure s to combat money laundering and financial crimes are implemented effectively, and requirements of domestic and foreign financial supervision agencies are met and internal standards are complied with. In the first quarter of 2018, in order to strengthen the compliance and risk management mechanisms of the entire Bank, the original “Legal Affairs and Compliance Department” was renamed as the “Compliance Department”, specifically responsible for compliance affairs for the entire bank. The “Legal Affairs Office” was newly added to prevent potential conflicts of interest between the effectiveness of compliance and legal affairs . III. Operating Results in 2017 Units: millions in N.T. dollars, except as indicated Year Item 2017 2016 Change (%) Deposits (Note 1) 2,261,201 2,189,718 3.26 Loans (Note 2) 1,701,601 1,739,548 -2.18 Corporate Financing 1,309,372 1,356,748 -3.49 Consumers Financing (Note 3) 392,229 382,800 2.46 Foreign Exchange Business (millions in US$) 845,753 805,160 5.04 Securities Purchased 502,291 435,646 15.30 Long-term Equity Investments 20,497 22,208 -7.70 Credit Card Loans 1,131 1,155 -2.08 Note 1: including due to Chunghwa Post Co., Ltd. Note 2: the figure in 2017 with amount of non-performing loans NT$2,099 million, NPL ratio 0.12%, and coverage ratio 1,334.92% Note 3: excluding credit card loans IV. Budget Implementation 2017 Pretax Income (millions in NT dollars) 2017 Pretax Income Budget (millions in NT dollars) Budget Achievement Rate (%) 24,237 24,126 100.46