Announcement on behalf of CTBC Bank regarding the adoption of the fair value model for investment properties effective January 1, 2027.

1.Date of board of directors resolution:2026/09/24
2.Nature of the change:Change in accounting policy
3.Reason for the change: CTBC Bank announced to change accounting policy
for the subsequent measurement of investment properties from the cost
model to the fair value model effective January 1, 2027.
4.Each line item affected and the projected effect for the accounting year
 preceding the accounting year changed by retrospective application of the
 accounting policy change:
(1)Actual effect on the Consolidated Balance Sheet as of January 1,
2026 (NT$):Investment property increased 3,175,039 thousand, Deferred tax
assets decreased 981 thousand, Deferred tax liabilities increased 485,933
thousand and Total equity increased 2,688,125 thousand.
(2)Projected effect on the Consolidated Balance Sheet as of December 31,
2026 (NT$):Investment property increased 2,990,517 thousand, Premises and
equipment increased 214,589 thousand, Deferred tax assets decreased 919
thousand, Deferred tax liabilities increased 490,651 thousand and Total
equity increased 2,713,536 thousand.
(3)Projected effect on the Consolidated Statement of Comprehensive Income
for 2026 (NT$):Provision for impairment losses on assets increased 311
thousand, Gains on investment properties increased 23,535 thousand,
Depreciation and amortization expenses increased 2,647 thousand, Income
tax expense increased 4,645 thousand, Net income increased 15,933 thousand,
Other comprehensive income increased 9,479 thousand and Total comprehensive
income increased 25,412 thousand.
5.The actual effect on the opening balance of retained earnings
for the last accounting year:NT$2,628,635 thousand increased in the
opening balance of retained earnings for 2026.
6.If the decided effect is impracticable, specify the reasons
why retrospective application is impracticable, and how and from
when the accounting policy change will be applied:None
7.If the decided effect is impracticable, the opinion provided
by the CPA about the effect of the audit opinion for the
accounting year preceding the accounting change:None
8.Opinion expressed by the CPA regarding itemized analysis of reasonableness:
The CPA has reviewed, in accordance with Article 6 of the Regulations
Governing the Preparation of Financial Reports by Public Banks and
Statement on Auditing Standards No. 620, Using the Work of an Auditor's
Expert, the Bank's change in accounting policy relating to investment
property. The CPA has evaluated the relevant supporting documentation and
performed necessary audit procedures on the expert valuation report of
the fair value of investment properties, and has not identified any matter
indicating that the change is unreasonable.
9.Objection or reservation opinion from the independent directors:None
10.Countermeasures:The Bank elected to subsequently measure its investment
properties using the fair value model effective January 1, 2027, in
accordance with the Regulations Governing the Preparation of Financial
Reports by Public Banks. This accounting policy change was approved by
the Bank's Board of Directors on September 24, 2026.
11.Any other matters that need to be specified:The change in accounting
policy approved by the Board of Directors shall become effective only
upon obtaining approval from the competent authority.