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 Diversification
We 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 Sources
Credit 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 Quality
Outstanding 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 Responsibility
By 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 financing
In 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 profitability
The 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 finance
We 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 sustainability
The 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.