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Net interest income: increased by NT$ 843 million from Year 2013 as a result of the increase in deposits and loans by NT$ 66.4 billion and NT$ 34.5 billion respectively, spread and interest income on securities investment.

Net non-interest income: grew by NT$ 1.127 billion from 2013 as a result of the increase in net service fee and commission income, trading and foreign exchange.

Bad debt expense in 2014 amounted to NT$ 759 million, an increase of NT$ 38 million from Year 2013. Operating expenses in 2014 was NT$ 5.568 billion or an increase of NT$ 328 million from 2013.

In conclusion, the Bank’s net income before tax in 2014 was NT$ 5.013 billion. After deducting income tax at NT$ 466 million, the net income was NT$ 4.547 billion with the budget achieving rate as 113%, or an increase of NT$ 1.495 billion from NT$ 3.052 billion in 2013.

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Enforcement of U.S Foreign Account Tax Compliance Act (thereafter FATCA) :
        In response to FATCA execution, the Bank has registered itself as a FATCA foreign financial institution in U.S. IRS in June 2014 and acquired GIIN issued by U.S. IRS. The Bank commits to conduct auditing and investigation on related accounts, and will deduct 30% withholding tax from the U.S. income of the account fails to comply with this Act or foreign financial institutions did not sign the agreement. The implementation of FATCA impacts financial sector considerably. Take OBU, regard to be tax haven, as an example, the corporations whose actual shareholders with U.S citizenship will be forced to reveal themselves and the bank business will be influenced accordingly. Moreover, banks have to input extra cost and efforts to verificae client’s identity and collect the documents in comply with the FATCA requirements. Nevertheless, in avoidance of risks arising from incompliance, the Bank has revised bylaws and developed the according system.

The Amendment of The Banking Act to raise the investment limit of bank :
        To assist domestic banks for the development of overseas units in Asia area, FSC planned to amend Article 74 of The Banking Act, which was approved through the third reading by Legislative Yuan on January 22 2015. The upper limit for bank reinvestment was changed from 40% of Paid-in Capital to 40% of net worth.
        To boost its overseas business and respond to FSC’s policy, the Bank has obtained approval from FSC to acquire TONG YANG Savings Bank of Philippine and actively assess the investment targets in Asia. Upon formal enforcement of amendment of Article 74 of The Banking Act, the Bank can embrace an increase in its upper investment limit by NTD 5 billion, which will significantly increase its overseas merger and acquisition capability.

FSC deregulated restrictions against OBU financial businesses and products:
        The FSC issued a letter with Ref. No. Jin-Guan-Yin-Wai-Zi-10200293010 on Dec. 27, 2013 and another with Ref. No.: Jin-Guan-Yin-Wai-10300017351 on January 29, 2014 to deregulate financial businesses and the products of OBUs. In response to this deregulation, the Bank developed Operation Procedures on Financial Service of Offshore Business Units to regulate procedures on standards for acceptance of customers and know-your-customer review, the types and scope of products that may be provided to customers, product suitability rules, new product review mechanism, compliance matters related to recommendations, advertising, business solicitations, and promotion and money-laundry prevention. The according regulations are also amended in an effort to introduce offshore products and develop wealth management services for OBU clients.

Revised Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non-Performing/Non-accrual Loans and required the coverage ratio of real estate loans be raised over 1.5% before the end of Year 2016:
        As of January 28 2014, FSC enforced the amended stipulations on loan loss provision and guarantee reserve in Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non-performing/Non-accrual Loans. The minimum loan loss provision and guarantee reserve shall be the sum of 1% of the outstanding balance of Category One credit asset's claim (excluding assets that represent claims against the central and local government in Taiwan), 2% of the balance of Category Two credit assets, 10% of the balance of Category Three credit assets, 50% of the balance of Category Four credit assets, and the full balance of Category Five credit assets. As of the end of December 2014, the Bank’s account balance of loan loss provision and guarantee reserve amounted to NT$ 6.223 billion, and the provision ratio of Category One Credit Asset reached 1.17%, which complied with the requirement of the competent authorities’ policy.
        In addition, according to promulgation of Jin-Guan-Yin-Kuo-Zi. No.10300329440 from FSC, the coverage ratio, when processing loans of purchasing houses with the balance including renovation and construction and excluding policy-oriented loans added after January 1 2011 (Policy-oriented loans refer to the those with the special government-offered fund or self-owned fund in compliance with government policies), should achieve the minimum standard of 1.5% before 2016, in order to solidify the banks’ risk-bearing capabilities. As of December 31 2014, coverage ratio of the Bank for loans of purchasing houses with the balance including renovation and construction (excluding policy-oriented loans added after January 1 2011) is 1.45%. It is expected that the Bank can meet the requirement of the competent authority prior to the deadline.

Amendment of Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries：
        To maximize the attention from the banking sector to legal compliance and fortify the professional training and functions of compliance offers, FSC, announced the amendment of Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries on August 8 2014. The amendment clearly stipulates that the chief compliance officer of bank shall be comparable to that of vice president and adds the clause requiring the chief compliance officer and personnel of the compliance unit of bank have to attend at least fifteen (15) hours of training a year. Also, it is required that, before banks introduce a new product or service, or applies to the competent authority for approval to offer a new business, the chief compliance officer shall issue and sign an opinion statement undertaking that the new product, service or business complies with applicable regulations and internal rules. Also, a compliance unit shall assess the results of compliance self-evaluation of each bank unit.
        In response to the amendment of Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries, the Bank not only raised the post of the chief compliance officer and revised Implementation Rules of Compliance System, but also founded Compliance Affairs Department to fortify the effectiveness and independence of the Bank’s compliance system.

FSC promotes Digitalize Financial Environment 3.0：
        The development of mobile communication, social media, megadata, cloud technology forces financial service to echo this trend and advance its IT development in order to elevate the convenience for consumers. FSC thereby promotes “Digitalize Financial Environment 3.0”, which will be launched in 2015.
        In respond to the said project, the bank plan to establish the procedures and security mechanism for online service application to deliver a more convenient financial service and utilize the business opportunities brought by this deregulation.