Subsidiary Cooperative Bank Fined NT$12 Million and Suspended from New Credit Card Applications for One Month by Financial Supervisory Commission

Announcement Date: August 12, 2026 Statement Date: August 11, 2026 Statement Time: 18:56:25 Company Code: 5880 Company Name: Hokuo Financial Holding (Hokuo Jin) Subject: Announcement on behalf of subsidiary Cooperative Bank regarding a fine of NT$12 million and corrective action imposed by the Financial Supervisory Commission (FSC), along with a one-month suspension of accepting new customers for credit card services. Applicable Clause: Item 26 Event Date: August 11, 2026 Details: 1. Event Date: August 11, 2026 2. Entity Involved: Subsidiary reporting entity — Cooperative Bank 3. Cause of Incident: The credit card division of Cooperative Bank failed to properly handle disputed transaction cases. This deficiency violates Article 45-1, Paragraph 1 of the Banking Act and related provisions under the "Implementation Rules for Internal Control and Audit Systems of Financial Holding Companies and Financial Institutions" Article 3, Paragraph 1 and Article 8, Paragraph 1. 4. Handling Process: The bank is implementing improvement measures in accordance with regulatory guidance. 5. Sanction Details: A fine of NT$12 million, corrective action, and a one-month suspension of accepting new customers for credit card services. 6. Whether a monetary penalty was imposed: Yes 7. Amount of Penalty (NTD): 12,000,000 8. Estimated Loss or Impact: NT$12 million and a one-month halt in processing new credit card applications. 9. Potential Insurance Reimbursement Amount (NTD): Not applicable 10. Improvement Status and Future Measures: The bank has reviewed and revised relevant procedures and strengthened control mechanisms. 11. Has a major announcement on the same incident been previously issued? No 12. Other Matters to be Disclosed: None