4/13, Land Bank of Taiwan Chairman Chuan-Chuan Hsieh and President Ying-Ming He presided over an executive meeting with executives from the Bank’s Head Office and branches during the 2021 Annual Executive Meeting. The meeting was convened to review past performances and actively plan for the future. Through active discussions and coordination, the Bank aims to reach a common consensus on its operating objectives and business development goals for 2021. During the meeting, the Bank prepared thermometers, alcohol-based disinfectants and face masks, as well as other related vaccination supplies, and diverted participants to attend the meeting under a synchronized off-site mechanism. The measures were in place to prevent the spread of COVID-19.Chairman Hsieh emphasized that despite the impact of the COVID-19 pandemic and the increased volatility in the financial markets in 2020, the Bank maintained its leadership in its core businesses of real estate credit and trusts, with a pre-tax surplus of over $10 billion, and achieved 115% of its statutory budget target. She further expressed her gratitude to all Bank employees for their hard work and contribution, especially during the relief and revitalization period when manpower deployment was tight while sometimes facing the emotions of clients were in desperate need of funds. She thanked the hard work and dedication of all bank staff who worked together to achieve this challenge under such a high pressure environment. In addition to commending the efforts of his colleagues, Chairman Hsieh also proposed specific implementation plans for the five strategic goals she set out when she took office:1. Digitalization of Operations Information technology in the financial industry are like infrastructure development, and will determine the speed of business development: sound digitalization of business processes can accelerate efficiency, simplify processes, and prevent fraud in internal processes. They can also contribute to refining customer services, reaching new generations of customers, and further leverage big data to understand customer needs and even to prevent fraud.2. Credit Business DiversificationWe intend to strengthen the industry balance of our credit business structure. Apart from consolidating our key business in “civil construction financing”, we will also promote the granting of credit to various enterprises to secure new types of niche financing such as solar energy and offshore wind power, and encourage branches to implement a balanced credit policy through a more comprehensive performance assessment mechanism.3. Diversification of Income SourcesCredit business, treasury operations and processing fee income are the three main engines of profitability for banks. This year, the Land Bank of Taiwan plans to increase its overseas financial operations, which will not only contribute to surplus through higher spreads, but also nurture talented financial staff and deepen our overseas talent pool.4. Optimizing Workforce QualityOutstanding talents are the bedrock of sustainable business operations. In addition to recruiting more diverse new staff externally, the Bank will also build up a succession pipeline internally by nurturing two junior employees for every senior employee, so as to avoid a succession gap.5. Implement Corporate Social ResponsibilityBy internalizing ESG into the Bank's DNA, we take into account the concerns of our stakeholders, especially in our interactions with customers, and ensure that our branch managers are thorough, efficient and attentive to our customers and respond to their needs in a timely manner. In terms of future outlook, the financial industry is full of challenges as well as opportunities. The Bank will uphold its core values, respond to changes with an open attitude, pursue breakthroughs with sound business practices and pursue sustainable development in a stable manner to create better results and move towards being a quality financial institution.During his opening remarks, Mr. Ying-Ming He, President of the Land Bank of Taiwan, expressed his sincere gratitude to the Board of Directors and the Audit Committee for their supervision, the Chairman's excellent leadership, and the directors and colleagues for their concerted efforts. He noted that despite the volatile global economy resulting from the outbreak of the COVID-19 pandemic in 2020, the Bank was still able to deliver solid business results. The Bank's pre-tax surplus reached NT$10.9 billion, with an Non-performing loans ratio of 0.15% and an allowance for coverage ratio of 1,065%, which was not an easy feat to achieve. This demonstrates the quality of the Bank's assets and the effective implementation of credit risk control and post-loan management, fully epitomizing the Bank's operational efficiency. For this year (2021), the Bank should continue to maintain a steady business footing and continue to build on its successes with a proactive and innovative spirit.1. Expansion of credit business to enterprises other than those involved in civil construction financingIn addition to making good use of our expertise in the real estate finance industry, the Bank will also actively cooperate with governmental policy initiatives to promote the "Green Finance Action Plan 2.0", and as well as focusing on the "Three Major Programs for Investment in Taiwan", "Lending to New Key Industries", "New Southbound Policy" and "Trillion Dollar Revitalization Financing Plan" and other corporate finance credit services.2. Development plan for the Bank's “Trust 2.0 Implementation Plan”We continue to manage the “Trust for the Elderly and Physically and Mentally Handicapped” and the “Social Welfare Community Care Trust”, and cooperate with the FSC to promote the “Trust 2.0 Implementation Plan”, leveraging trusts as the core engine to create innovative and diversified trust products.3. Overall improvement in profitabilityThe Bank shall leverage its strengths to develop its mortgage and life insurance business, actively pursue various types of real estate trust business opportunities, launch integrated marketing campaigns in line with market trends, provide a full range of financial services, expand fee income stream and increase non-interest income.4. Encourage staff innovation and promote digital financeWe encourage our employees to actively participate in the development of innovative proposals, think in terms of customer needs, integrate virtual and physical channels, use big data analysis for precision marketing, and actively train digital talents to create quality digital financial services for our customers.5. Strengthen risk control & management and focus on ESG sustainabilityThe Bank will pay close attention to risk management while expanding business, and implement three “lines of defense” for internal control, strengthen compliance education for employees, and improve risk management mechanisms. The Bank will also spearhead progress on ESG, in line with its promotion by competent authorities, through establishing a “Sustainable Development Committee” to actively promote sustainable finance, protect of customer rights, ensure employee care, sound corporate governance, environmental protection and social participation. This year, the domestic and international economy and financial industry are still facing uncertainty due to the impact of the ongoing global pandemic. In the fiercely competitive and volatile financial industry, in addition to continuing to fully cooperate with government policies, the Bank will also follow Chairman Hsieh’s visions and development strategies. Lastly, it is hoped that the Head Office and the branches will work together to uphold the concept of “generosity, harmony, enthusiasm and innovation”, and jointly face the ever-changing business environment, reach new heights, and achieve targeted annual operating goals.
In support of the “National Greenliving Policy” of the Environmental Protection Administration of the Executive Yuan, the Land Bank of Taiwan has taken practical action by joining the ranks of institutions participating in the EPA-led “Fong Cha Station” to provide free public water refill stations, “fong cha” meaning “to serve tea” and representing Taiwanese hospitality. Starting today, 151 branches of the bank across Taiwan will offer complimentary water fountains to the public. An app called “Water Refill Map” is available for download on both the iOS and Android systems and provides information on nearby drinking fountains. In an effort to reduce the consumption of bottled water and support environmental protection efforts, members of the public are encouraged to bring containers to fetch potable water, and together put “green living” into concrete action.In recent years, plastic reduction has become a global consensus and common goal. According to the latest statistics, Taiwan consumes 4.7 billion PET bottles per year, of which 1 billion are used for bottled water products. From production to disposal, these plastic products continue to produce harmful and toxic compounds that result in environmental pollution. While the recycling rate of PET bottles is as high as 95% in Taiwan, the remaining 5% still causes serious damage to the marine environment and natural ecology. Taiwan is a small and densely populated island country; in order to strive for sustainable development, maintaining a healthy marine environment has never been more urgent.The Land Bank of Taiwan is a 100% state-owned banking institution under the Ministry of Finance. In addition to its continued focus on core banking operations, the bank has long cooperated with the government’s energy conservation efforts and carbon reduction goals through internal and external programs. By participating in the “Fong Cha” initiative and offering free drinking fountains in its branches across Taiwan, the Land Bank hopes to contribute to the building of a “water resource network” across the island through resource sharing, so that people can have easy access to potable water without the need to buy bottled water when outdoors. This will serve to strengthen the positive force of plastic reduction right from the source, and create a role model of “green finance”.