Fubon Financial

Support the robust development of internet-only bank to realize the vision of inclusive finance and innovative services

In response to the inclusive finance policy and to enhance digital financial services, Taipei Fubon Bank has resolved today (23rd) by its board of directors to participate in the cash capital increase of LINE Bank, committing an amount not exceeding NT$1.755 billion. Subsequently, the bank plans to apply to the regulatory authorities, and upon approval, its shareholding in LINE Bank will increase from the original 27.18% to 29.16% which demonstrates strong confidence in the long-term development of LINE Bank.

In this capital increase, LINE Bank has secured a total of NT$5 billion, which will be allocated towards fortifying the bank's capital structure, augmenting its capital adequacy ratio, and expanding its asset portfolio to strengthen its competitive edge. Taipei Fubon Bank has indicated that while internet-only banks are still in their early operational phase, the potential for growth and social impact is becoming increasingly significant due to innovations driven by digital technology. This capital increase not only continues the existing strategic direction but also demonstrates Taipei Fubon Bank's commitment to supporting financial technology innovation and the development of inclusive finance. The aim is to continuously inject resources to assist internet-only bank in achieving stable growth, thereby accelerating the construction of a comprehensive digital financial ecosystem for all and enhancing the overall competitiveness and added value of Taiwan's financial services.

Since its inception on April 22, 2021, LINE Bank has quickly established a strong presence in the market, with the number of accounts and deposit balances consistently increasing. By the end of December 2024, the number of digital accounts reached 2.01 million, with a deposit balance of NT$68.9 billion and a loan balance of NT$54 billion, resulting in a deposit-to-loan ratio of 78.37%, maintaining its position as the leading internet-only bank. The deposit-to-loan ratio is a crucial indicator of a bank's efficiency in utilizing funds and managing liquidity risk. LINE Bank's impressive performance reflects its robust business operations and capabilities.

According to internal statistics from LINE Bank, its primary customers consist of the digital native generation, with an average age of 34.9 years. Notably, users under the age of 39 account for 70% of the total, with the 18 to 29 age group representing the largest segment at 36%, achieving a penetration rate of 25% among the same age demographic in Taiwan. As time progresses, LINE Bank's strong foundation among young customers is poised to significantly impact the development of the digital financial industry.

Under the guidance of regulatory policies and relevant laws, LINE Bank is actively expanding its business landscape, broadening its services from deposits and credit loans to include foreign exchange, trust services, fund sales, insurance agency, and online insurance. Currently, it has partnered with subsidiaries of Fubon Financial Holdings, such as Fubon Securities, Fubon Insurance, and Fubon Asset Management, to launch several innovative collaborations. LINE Bank is currently the only financial service within the LINE ecosystem that offers real name authentication, reaching 22 million active LINE users. This service enhances the convenience of financial services for the public and allows partners to achieve a stable customer acquisition niche and create a win-win situation.

As we look to the future, Taipei Fubon Bank remains committed to the principle that 'life is finance, and finance is life.' We will integrate virtual and physical channels, strengthen the use of digital technology, and provide a wide range of personalized and innovative financial services. Together with LINE Bank, we strive to fulfill the needs of our entire customer base, fostering a more inclusive and efficient financial ecosystem that enriches the everyday experiences of the public.