Reflecting on 2010, global economic rebound was strong during the first half year. However, in the second half, due to high unemployment rate in the developed countries, ongoing European debt crisis, QEII, the second round of Quantitative Easing Monetary Policy in the U.S., capital inflow in Asian countries and Emerged Markets, currencies appreciation and the rising risk of asset bubbling, worldwide economic recovery was proceeding at a more moderate rate. Overall financial scenario showed more steady recovery than that of 2009. Moving on from the impact of financial crisis, the Central Bank announced the increase of interest rates to induct the rebounce of market rates, which was helpful to expand the banks' interest spreads and facilitate their operations.
Along with the inconsistent environment, Far Eastern International Bank (FEIB) has been actively adjusting its business structure not only to focus on risk control and asset quality, but also to increase the ratio of high interest spread products; as well as our four major core businesses, Corporate Banking, Individual Banking, Consumer Banking, and Credit Card, are developing their respective niche products and strengthening cross-selling mechanism, such as FE Direct to promote the concept of "Mutual Beneficial Profit", the strategy to give more favorable pricing to more business transactions. Furthermore, the Bank's environment-friendly paperless electronic platform was well received by its clients to open new opportunities for financial services on virtual channels. Due to the gradual loosening of cross-strait financial business, we are aiming at establishing Enterprise Banking Department for China and Hong Kong Division. The China Unit was set up to provide financial services to Taiwanese merchants in China, added with the platform of investment and financing and international financial services offered by our Hong Kong Branch, which constitutes a comprehensive financial services blueprint to the Greater China region. In addition, to comply with the financial needs of Taiwanese merchants abroad, FEIB has won considerable TDR businesses from many overseas enterprises with the highest market share.
After proactive expansion and proper adjustment of its business structure and strategy in accordance with market developments, FEIB registered an outstanding performance in 2010. Net income sky rocked 77% than that of 2009 to NT$2.196 billion, earnings per share (EPS) reached NT$1.10, return on assets (ROA) stood at 0.55%, and return on shareholders' equity (ROE) was 10.08%. Regarding asset quality, while our NPL ratio dropped to 0.50%, our coverage ratio of bad debts climbed to 300%. All this contributed to the Bank's ratings as a good quality bank and stable financial institution.
Corporate social responsibility (CSR) has long been a core value of this Bank committed to promoting various public benefit activities. Aside from cooperating with Eden Welfare Foundation since 1997 to care for physically and mentally challenged children, FEIB also sponsored the warm-up game between the visiting US Major League baseball team Los Angeles Dodgers with Taiwan's Chinese Professional Baseball League (CPBL). We offered our credit card holders a special discount rate on ticket prices and donated 5% of the income from tickets sales to the CPBL development fund to promote little league baseball. The Bank also sponsored Zhang Yimou's version of "Turandot" Opera in Taichung and world-class performance of Cirque du Soleil for the second time to promote international performing arts and build a platform of aesthetic exchange with our clients. In order to promote energy saving and carbon emission reduction, FEIB joined the Far Eastern Group to design, build and operate "Far Eastern EcoARK," which was made of recycled PET bottles and the only pavilion sponsored by private enterprise in 2010 Taipei International Flora Expo. This multiple world record holder construction was well received by the public and was invited to be exhibited elsewhere overseas after the Expo period. FEIB has always been dedicated to the recruitment and cultivation of human resources and has created many job opportunities. It was therefore, among the only two financial institutions, granted the "Hiring Additional Employees Contribution Award" from ROC President Ma Ying-jeou.
Looking into 2011, World Bank and Global Insight forecast global economic growth to slightly slow down, with the signing of Economic Cooperation Framework Agreement (ECFA) and implementation of the early harvest list, plus the open up of Chinese tourists and China's capital inflow to Taiwan and procurements of Taiwanese products, these more intense economic ties and exchanges across the Strait are expected to bring enormous economic growth for Taiwan. With the impending deregulation of the cross-strait financial businesses, FEIB looks forward to leveraging with the Far Eastern Group's existing 50 plus multi-industry operating posts in China and bring into full play the Group's many cooperating partners, ample client base, and abundant operating experience in the Chinese market. Furthermore, after the successful acquisition of Chin-fon Commercial Bank's 19 domestic operating units and AIG's credit card and accounts receivable businesses, the Bank welcomes future M&A opportunities and is willing to form alliances with Chinese financial institutions to seek organic growth and create maximum value for our shareholders in appreciation of their long lasting support.
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