1. Cathay Financial Holdings 2003 1H Financial Results Updates

2. 2 Cathay FHC - Strong Financial Performance Income & EPS Net incomeEPS NT$bn Total Shareholders’ Equity & ROAE Total Assets & ROAA Note: Non-consolidated basis Source: Company reports NT$bn

3. 3 Cathay FHC – Operational Results

4. 4 NT$bn 0.29 1.3 6.5 13.1 21.0 0.23 (78%) 0.9 (64.3%) 3.6 (55%) 9.4 (71.8%) 13.8 (65.5%) Cathay Century CUB UWCCB Cathay Life Cathay CFH 2003 1H Achievement Ratio 2003 FY Proforma Target 2003 2Q - Performance Achievement

5. 5 Subsidiary Contribution Analysis – 2003 1H Earning Contribution 2003 1H Asset Allocation 2003 1H Total Earning of subsidiaries: NT$14.0BnTotal Revenue: NT $247.8Bn Total Asset: NT$2,214Bn Revenue Contribution 2003 1H CUB 7.0% UWCCB 25.1% Cathay Century 1.5% Cathay Life 66.4% CUB 2.4% UWCCB 5.7% Cathay Century 3.2% Cathay Life 88.7% CUB 8.6% UWCCB 30.1% Cathay Century 0.5% Cathay Life 60.8%

6. 6 Profit Analysis – 2003 1H ROAE Analysis ROAA Analysis Note: ROA, ROE have been annualized.

7. 7 % Expense Ratio of Cathay Life % Expense Ratio of UWCCB % Combined Ratio of Cathay Century Source: Company Report Expense Ratio of CUB Cathay FHC has been focusing on improving operation efficiency %

8. 8 Appendix  2003 1H Subsidiary Performance Cathay Life Cathay Century UWCCB CUB

9. 9 Cathay Life – Operational Results Note 1: 2003 1H FYP’s $28.3bn, compared with 2001 1H FYP’s $23.7bn has exhibited growth. 2002 1H FYP’s $43.2bn is mostly attributed to the phenomenal sales of single premium products. 2: Net Provision in Policy Reserve = policy reserve – policy reserve writeback. 3: ROA, ROE have been annualized. 1 2 3 3

10. 10 Cathay Century – Operational Results Note 1: Other operating cost include general & admin expense. 2: ROA, ROE have been annualized. 1 2 2

11. 11 UWCCB – Operational Results Note 1: Gross Loans = Loans + Revolving - Credit Card 2: ROA, ROE have been annualized. 1 2 2

12. 12 Cathay United Bank – Operational Results Note 1: ROA, ROE have been annualized. 1 1