Mortgage loan remains our main contributor. The total outstanding balance in the Consumer Banking segment increased marginally by NT$1.04 billion compared to the previous year (2006); however mortgage loans in 2007 have grown substantially by NT$11.16 billion, achieving a growth rate of 17.4% while the outstanding balances of personal and car loans have greatly reduced. Revenue contribution of mortgage loans increased from 45.7% in the previous year to 63.4% in the current year; but due to the reduced volumes of high margin products, contribution to the revenue dropped by 22%.

Main products of the Wealth Management segment in the current year were linkages bonds, mutual funds, insurance etc. With the expectation of a slowdown in the global economy in the coming year, it is the bank's intention to raise customers' awareness of proper asset allocation and product selection with the introduction of dynamic hedging investment during December this year. In order to provide better services and investment decisions, we expect to revise part of our existing mechanisms in 2008 to be implemented in the second half of 2008.

As for product performances, structured notes linkage of various types such as interest rate, index, commodity and share price-linked bonds ranked top among industry peers in terms of average net worth. A total of 26 products matured or terminated early in 2006 (same product in different currencies were counted as one).

For better integration of group resources, product development and marketing under Wealth Management have been consolidated into the Financial Planning Department during the year.

In the Trust segment, the bank not only focuses on deeper penetration of existing businesses, but is actively seeking approval from the authority for new customized trust opportunities. We have recruited expert talents in the fields of real estate investment trust, trust of loans and related security interests, and securities trust to handle the businesses and operations of real estate investment trust and personal trust. As of the end of 2007, the values of real estates, trust of loans and related security interests, and securities held in trust amounted to NT$6.3 billion, NT$2.418 billion, and NT $3.068 billion, respectively.

Other than the "trust of funds dedicated to the investment of local and foreign securities and mutual funds", this department is also actively developing "trust in loans" such as "insurance trust", "real estate management trust", "specific funds trust" and "prepayment trust" etc encouraged by the authority, As of the end of 2007, total trust in loan amounted to more than NT$3.529 billion. For accessory businesses other than the underwriting, transfer, and registration of shares and the payment of stock, cash, and bonus dividends that exist since 2006, this department has been actively exploring businesses relating to the depository of foreign currencies during 2007.

The main product for the past two years was the US equity-linked structured deposits; total unexpired amount is approximately NT$197 million.

Our main services in the Electronic Banking segment in the last two years were still the provision of NTD/foreign currency account enquiries and transactions, mutual fund ordering, on-line insurance, and credit card services. In order to provide more secure yet more convenient transaction services, we have permitted the transfers of funds to non-predetermined accounts since Jul 2007; transaction security is enhanced through the verification of chip-based ATM cards. For more complete and convenient transaction checking, we began delivering electronic statements since Sep 2007. A total of 2,194 customers have applied for electronic statements at the end of 2007. For more convenient credit card payments, the company joined the eBill network in Nov 2007. Using ID+Account as a security check, customers are able to make their credit card payments from current accounts under any financial institutions that are also a member of the eBill network.

The long-awaited amendments to the current health insurance regulations governing all insurance companies were finally approved by the Legislative Yuan on Jun 14, 2007. For consumers, purchasing an additional option means additional protection, and sellers are willing to provide more protection if they have more variety of products to sell; therefore the amendments can be considered a great incentive for both consumers and sellers. However in view of intense competition based on price, we must be well prepared and informed of the characteristics and risks of health insurance before we join the competition to capitalize the business opportunity effectively.

The financial environment has been rapidly changing in recent years, and the financial market is growing towards greater diversity. As a result, customers are now exposed to more channels to receive information of various financial products and tools and insurance services. To respond to the growing market competition, we shall integrate all group channels to create the highest synergy in cross-selling; thereby expanding our sales coverage, providing comprehensive services, raising customers' satisfaction and ultimately win their loyalty to the group. Through the establishment of customer database and analyses of customers' data, we shall be able to package products across different segments through close collaboration between subsidiaries, establish sales platforms for project promotion and to satisfy customers' needs, and achieve solid returns from our integrated marketing efforts.