Looking into 2008, the Bank will actively strengthen its business performance, strive to achieve performance objectives, fulfill corporate governance, enhance risk control, and upgrade information operating equipment and systems to enable its businesses to be more professional and effective. The Bank’s business plans for 2008 are outlined as follows:

Due to the ongoing increase in international raw material price and continuing effects of the sub prime mortgage crisis in the U.S.A., the global economic growth in 2007 appeared to be sluggish, which will carry on to affect the performance and growth strength of 2008. In the short-term, the current conditions of the global economy would not be improved. According to a report in November 2007 by Global Insight Inc., the global economic growth rate in 2007 was estimated to be around 3.7%; due to the continuous decline of economic conditions in 2008, GDP growth rate in 2008 would be reduced by an estimated 3.3%; in terms of trading, the global trading growth rate would be reduced from 12.4% in 2007 to an estimated 12.2%.
In terms of domestic economy, as the credit card and cash card crisis faded away in 2007, the banks had begun easing the restrictions on credit loans to consumers upon restoration of the consumer banking and employment opportunities. Hence, the consumer market is increasingly reviving. According to the forecast of the Taiwan Institute of Economic Research, the GDP growth rate of Taiwan in 2007 was 4.4% and CPI 1.6%, and the domestic commodity price appears to go upward due to the rising of the international raw material price.
Looking forward into 2008, due to the sluggish global economic growth and increasing commodity prices, most of the domestically and internationally renowned research institutions and investment banks forecast that Taiwan’s economic growth rate will range from 4% to 5% this year, similar to 2007, which appears to be normal and stable. Furthermore, if there has been an easing of the cross-strait relationship due to the government’s relaxation of its cross-strait policies, it would contribute to the economic growth of Taiwan.

To cope with the increasingly competitive operating environment of the market and to enhance the soundness of its financial constitution, the financial holding company injected a new capital into the Bank, which increased the Bank’s capital from NT$18 billion at the end of 2006 to NT$24 billion as 2007. Considering that the Bank has adequate capital and Yuanta Group acting as the Bank’s supporter, the Bank was rated by the Taiwan Rating Corporation and was given “twAA-” for long-term credit and “twA-1+” for short-term credit as well as “stable” for outlook in August 2007. In September 2007, the Bank was given the ratings of “BBB” for long-term credit and “A-2” for short-term credit as well as “stable” for outlook by Standard & Poor’s Rating Service.

Upon integration of Yuanta Financial Holdings’ rich resources of securities clients and the Group’s excellent corporate governance, the Bank has become one among its peers in Taiwan with the most potential for development. The Bank has oriented itself as an “investment bank” aimed at strengthening corporate finance business and developing potential “investment bank”customers. Additionally, the Bank is dedicated to improve its performance and increase the entire profitability of the financial holding group and itself by taking advantage of cross-selling functions within the financial holding group and thereby makes the Bank a“double-peak” business.
In the future, the Bank will keep on developing corporate banking, consumer banking and wealth management businesses, strengthening its financial services locally with the aim of developing financial services to overseas Taiwanese businessmen at the same time and widening the scope of transactions with customers in order to achieve the maximum effect of synergy as a result of the consolidation of the Yuanta Group.