It has been 78 years since the restructuring of Bank of Taiwan (BOT) in 1946.Formerly known as Bank of Taiwan Kabushiki-gaishahas, BOT been serving Taiwan society for 125 years starting from 1899. With the commitment and business philosophy of a "comprehensive compliance" system, we have earned wide recognition for our outstanding business performance and quality services, successfully becoming the public's most trusted bank.

Over the past year, global inflation, interest rate hikes, geographic tension, and climate change have increased financial market volatility in the post-pandemic era. Despite the numerous challenges, with the concerted efforts of the management team and all our colleagues, BOT has achieved outstanding overall operational performance and gained a surplus before tax of NT$28.4 billion (amounting to NT$38.3 billion after adding the policy mandate of NT$9.9 billion; the overdue ratio dropped by 0.086% and coverage ratio reached 1,726%, realizing an extremely high RORWA). BOT has adopted a "Troika" business strategy for the balanced development of public finance, corporate finance, and consumer finance, and achieved excellent results in international transactions, patent innovation, sustainable fi-nance development, and corporate governance.

To promote balanced social development. BOT integrated Equator Principles (EP) and engaging with the Task Force on Climate-related Financial Disclosures, TCFD, and officially approved the "Sustainable Credit Policy" in 2023, announced to stop "financing projects for mineral companies with coal mining as its only operation" and "financing projects for the construction of coal-fired power plants", encourages clients to participate in the net-zero transition and social benefits through ESG audits, sustainability linked loans, Green and Sustainable Time Deposit Projects, sustainable bonds, and other financial products and services, and is holding the "Net-zero Transition and Carbon Credit Trends Forum". With respect to our business operation and management, we endeavor to lower carbon emissions through green management, greenhouse gas reduction, green procurement, and green buildings in a bid to contribute to environmental sustainability. BOT has also bought international carbon credits (Vietnamese Solar Energy Project) from TCX and plans to use it for carbon neutrality in its financial products and services. Our ESG achievements saw us win the National Sustainable Development Awards of the National Council for the Sustainable Development of the Executive Yuan. Based on the management foundation of "Driving Sustainable Growth ", we are even more determined to present our commitment to sustainable development by upholding the three sustainable strategies of "We care for the people", "We strengthen the resilience for the society", and "We drive for the net-zero future".

In terms of digital transformation, BOT keeps making strides with the core usercentric philosophy by launching the new-generation "BOT Mobile+" app in 2023 to provide customers with a better banking experience. BOT is committed to training cross-functional personnel and encourages employees to be innovative and apply for patents. To facilitate more effective communication and cooperation among different departments, the Department of Digital Banking was relocated to the Minquan Building in November 2023, where the departments of Information Technology, Cyber Security and Innovation gather. This event marked the formal establishment of the Bank of "BOT Digital Park". In the future, BOT will continue to pursue innovation in financial competencies and business transition.

In terms of employee training and care, BOT continues to develop management professionals who are good team players with innovative, visionary, quick-responding, and international insights, and endeavors to develop personnel for digital transformation. Through constantly improving the working conditions and benefits for employees, BOT has built a positive and friendly working environment with respect for human rights, and provides edu-care services to employees' children. BOT won the "2023 Workplace Childcare Facility Competition" within the Public Sector organized by the Director-General of Personnel Administration-Excellent Award, a concrete reflection of its-people-first management philosophy.

With respect to public welfare, BOT has been a strong supporter of public blood drives, and encourages employees, customers, and the public to express care for society through various activities. We are enthusiastic in organizing arts and culture activities, from painting, photography, and calligraphy to music festivals and awards for economic and financial research. We are also committed to training Taiwanese basketball talent, and have been long-term supporters of Taiwan's Major Baseball League. BOT also held a charity bazaar for and senior citizens and guide dogs after the pandemic to share information with the general public about guide dogs. The playful-learning bazaar was also used to deliver trust-related knowledge to the public to contribute more to society. For years BOT has won widespread praise in social engagement, and has won the "Social Inclusion Leadership Award" and "Aging-friendly Leadership Award" in the Taiwan Corporate Sustainability Awards (TCSA).

By embracing the vision of being "A Leading Bank with Global Presence", BOT actively supports the government's economic development and pursues continuous innovation and change, and is expanding overseas to make good use of its influence in the financial market to continue injecting warm and positive energy to society through practical action. It will also assist the government in achieving the net-zero carbon emission target by 2050, deeply embodying the philosophy of sustainable finance in corporate culture, and extending this reach to customers to drive the industry's transition to net-zero and realizing BOT's commitment to sustainable development and common prosperity.