SKL – 2010 Outlook

• Focus on high value protection and health products to maintain overall profit margin. Cooperate with strategic partner, Dai-ichi Life, to design and promote a series of products with protection features.
• As global markets recover, demand for investment linked products expected to increase leading to higher expense gains.
• Target 4.5%~5% long-term investment return. Maintain overseas investment between 35% and 40% and share of traditional hedges at 70~90%. Continue to closely monitor developments in global markets.
• Continue to enhance risk management. Plan to complete the Algo risk management system in Q2 2010.
• Develop both agency and bancassurance channels. Continue to use SKB as the main bancassurance channel and migrate towards higher margin products.
• Steadily expand SKHNA Life business by establishing other operating sites in Beijing and setting up branches in other provinces/cities in 2010.
• Target ~10% growth in value of new business (VNB) in the medium/long term.

SKB – 2010 Outlook

• Focus on growing corporate loans to achieve 50:50 mix between corporate and consumer lending
• Continue to develop cash management and payroll accounts to increase demand deposits
• NIM expected to fully reprice in Q1 2010 and further increase if Central Bank raises rates
• Develop foreign exchange business to increase fee income from corporate customers
• Focus on mutual funds, ETFs, foreign bonds and insurance to meet customer needs and enhance profits from wealth management
• Strictly control asset quality and recover non-performing loans to lower NPL and increase coverage ratio
• Consolidate mini-branches into general branches and increase proportion of full service branches to enhance channel productivity.
• Establish Hong Kong branch to serve Taiwanese businesses operating in Asia-Pacific