Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. (Halkbank) — FY2015 Earnings Presentation
28 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2016
Slide 1: 2015 Earnings Presentation
2015 Earnings Presentation DISTINGUIS H ED PROFIT A BLE RESI L IENT RIS K CONSCIOUS RELIA B LE SUST A INABLE NATIO N WIDE MAR K ETMAKER BRSA Bank Only
Slide 2: Slide 2
Slide 3: Macro Outlook
2015 Earnings Presentation Macro Outlook > The Fed decided to raise its target fund rate by 25 bps as widely > CBRT has kept its set of interest rates unchanged and effective cost of expected, putting an end to seven years of most accomodative funding at around 9.0%. monetary policy. > CPI ended the
Slide 4: Banking Sector Overview
2015 Earnings Presentation Banking Sector Overview > Total loan growth at 19.7% YoY, reaching TRY 1,485 bn. > Sectoral NIM remained flat despite increased cost of TRY loan book up 15.0% whereas FX loans rose by 4.0% funding, banks partially managed to pass funding cost and in USD terms. CPI-Linked s
Slide 5: 2015 Highlights
2015 Earnings Presentation 2015 Highlights > Aggregate net income of TRY 2,315 mn, up by 5.0% from > Solid deposit base further expanded; up 17.8% YoY. the previous year. Quarterly net income at TRY 648 mn > L/D ratio at a quite comfortable level, 103.8%. > Profitability metrics RoE and RoA, sustain
Slide 6: Net income up 5% YoY, closing at TRY 2,315 mn
2015 Earnings Presentation Net income up 5% YoY, closing at TRY 2,315 mn Net Income (TRY million) 46.7% 5.0% 47.9% 2,315 648 2,206 646 YoY Change (%) 584 442 438 > 10.8% Net Interest Income > 16.8% Net Fees & Commissions > 10.9% Total Operating Income > 5.0% Net Income Q4-14 Q1-15 Q2-15 Q3-15 Q4-15
Slide 7: Strong asset growth 20.8% YoY
2015 Earnings Presentation Strong asset growth 20.8% YoY Asset Growth IEA Securities YoY 20.8% QoQ -1.0% 82.9% Portion 14.9% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 34.1% Loans Cash & CBRT Securities Other Assets 20.8% 81.3% 82.5% 82.9% 187.7 FX 26.2% 25.7% 30.9% 155.4
Slide 8: Interest income backed by CPI-linked securities
2015 Earnings Presentation Interest income backed by CPI-linked securities Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 20.3 17.2 14.7 14.9 CPI-Linked (TRY 8.6 bn) 30.9% 28.4 26.7 27.9 27.9 FX 3.2 11% 4.1 15% 5.7 20% 5.8 21% Fixed Rate 53.8% TRY
Slide 9: Loan growth 25.2% YoY
2015 Earnings Presentation Loan growth 25.2% YoY (TRY billion)(a) 25.2% 0.3% Total Loans HALKBANK B. Sector(b) 123.8 124.2 YoY YoY 0.3 0.3 Commercial Loans 25.2% 19.7% 9.7 10.2 QoQ QoQ 99.2 YoY 53.3% 0.3% 0.2% 1.2 QoQ 5.1% 83.4 6.7 37.9 37.8 Corporate Loans TRY Loans 1.1 5.8 YoY 42.3% HALKBANK B. Se
Slide 10: Low exposure in volatile sectors
2015 Earnings Presentation Low exposure in volatile sectors Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 5.4% Commercial 3.2% Commercial 9% Corporate 22.9% SME 39% FX Corporate 30% TRY 31.5% 68.5% Cooperative 13%(b) Retail 22% Sectoral Breakdown of Loans (%)(a) Retail Loans by
Slide 11: Retail loan growth backed by housing loan growth, 18.6% YoY
2015 Earnings Presentation Retail loan growth backed by housing loan growth, 18.6% YoY Credit Cards (Thousand) # of Credit Cards 3,794 (TRY billion)(a) 7.3% # of POS 282 0.4% # of Merchants 278 HALKBANK 27.5 27.6 YoY 7.3% 25.7 QoQ 23.5 Consumer Loans 0.4% YoY -2.1% 12.4 12.3 12.1 QoQ -1.6% 11.6 Shar
Slide 12: Sound asset quality, stable NPL coverage
2015 Earnings Presentation Sound asset quality, stable NPL coverage NPL Portfolio (TRY million) NPL Coverage (%) 3,974 80.6 76.2 3,871 76.1 3,700 65.2 2,245 2013 2014 Sep-15 2015 2013 2014 Sep-15 2015 Loans under Close Watch (TRY million) NPL/Total Loans (%) Loans under Close Watch/Net Loans (%) Hal
Slide 13: NPL ratio by segments
2015 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) (a) Consumer Loans (%) (a) 4.8 5.3 5.6 5.1 4.2 4.9 4.0 4.0 3.7 3.8 2.5 2.2 2.1 2.2 2.3 2.0 1.8 2.0 2.0 2.0 2.0 1.9 1.6 1.5 1.6(b) 2014 Mar-15 Jun-15 Sep-15 2015 2014 Mar-15 Jun-15 Sep-15 2015 SME
Slide 14: CoR reflecting high asset quality at 73 bps
2015 Earnings Presentation CoR reflecting high asset quality at 73 bps Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 165 123 126 111 94 75 73 84 62 52 73 40 52 38 40 2014 Mar-15 Jun-15 Sep-15 2015 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (bps)
Slide 15: TRY L/D improving to 109.4%, IBL 85.2%
2015 Earnings Presentation TRY L/D improving to 109.4% IBL 85.2%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 85.3% 84.4% 86.0% 85.2% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity 117.9 116.8 119.2 Ot
Slide 16: TRY deposits market share up 60 bps YoY
2015 Earnings Presentation TRY deposits market share up 60 bps YoY HALKBANK B. Sector(b) FX Dep. YoY 26.2% 35.4% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ -8.4% -6.3% in USD YoY 0.1% 7.4 % Total Dep. YoY 17.8% 18.3% TRY Dep. YoY 13.7% 8.2% terms QoQ -5.2% -3.0% QoQ -0.6% -1.9% QoQ 4.1% 1.7% To
Slide 17: Effectively managed deposit growth
2015 Earnings Presentation Effectively managed deposit growth Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 18.9% 83.8% 83.8% 16.9% 83.1% 81.1% 16.2% 16.2% FX 35% 6.7% 28.3% 1.4% 1.4% TRY 1
Slide 18: Cost - Yield - Spread
2015 Earnings Presentation Cost - Yield - Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 6.0 5.2 5.3 5.4 5.5 5.0 4.9 4.7 4.4 4.4 4.0 4.1 2.0 3.7 1.2 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Yield on Loans (%)(b) Yield on Securities (%) 10.5 9.7 9.9 10.0 9.8 10.0
Slide 19: NII up 10.8% YoY
2015 Earnings Presentation NII up 10.8% YoY Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses 4.7% 10.8% 17% 7.5% on Securities 5,112 5,663 1,520 1,378 1,481 1,414 1,283 11,451 13,657 2,984 3,001 3,398 3,466 3,792 (1,570) 83% (1,718) (1,878) (2,088)
Slide 20: Net fees & commissions income up 16.8% YoY
2015 Earnings Presentation Net fees&commissions income up 16.8% YoY Net Fees & Commissions Income (TRY million) 1.7% 16.8% 13.6% 1,194 323 308 1,023 303 292 271 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 2014 2015 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenues (%) Asset Managemen
Slide 21: OpEx / Average Assets stable at 2.0%
2015 Earnings Presentation OpEx / Average Assets stable at 2.0% Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 14.0% 16.8% (13.8% adj.)(a) 1.0% 3,489 890 895 904 2,987 214(a) 2.1 2.0 2.0 793 800 61 57 41 109 43 56 Q4-14 Q1-15 Q2-15 Q3-15 2015 2014 2015 2013 2014 2015 Cost/I
Slide 22: Solvency Ratios
2015 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Basel III (TRY mn) 2015 Credit Risk Base Amount (CRBA) 131,632 13.6 13.5 13.8 13.3 13.0 Market Risk Base Amount (MRBA) 5,105 13.1 Operational Risk Base Amount (ORBA) 10,978 12.9 13.0 12.9 12.2 Total Risk Weighted
Slide 23: Branch Network - Human Resources
2015 Earnings Presentation Branch Network - Human Resources > 49 new branches opened in 2015. > Total branch number reached 944. Loans and Deposits per Branches (TRY million) Utilization of Banking Distribution Channels (%) Automatic Loans/Branches Deposits/Branches Payment 7% 135.8 134.3 Internet B
Slide 24: Balance Sheet
2015 Earnings Presentation Balance Sheet QoQ YoY In TRY million 2014 Sep-15 2015 Change% Change% Cash and Balances Held with the Central Bank(a) 20,276 23,506 23,325 (0.8) 15 Banks & Money Market(b) 1,284 4,591 2,513 (45.3) 95.8 Securities(b) 26,741 27,900 27,908 - 4.4 Net Loans(b) 101,767 126,450 1
Slide 25: Income Statement
2015 Earnings Presentation Income Statement YoY QoQ YoY Change Change Change In TRY million 2014 2015 % Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 % % Interest Income 11,451 13,657 19.3 2,984 3,001 3,398 3,466 3,792 9.4 27.1 On Loans 8,781 11,258 28.2 2,363 2,510 2,679 2,976 3,092 3.9 30.8 On Securities 2,652 2,
Slide 26: Halkbank 2016 Expectations
2015 Earnings Presentation Halkbank 2016 Expectations Growth Expectations (%) Key Ratios (%) Macro Expectations (%) 2016 2016 2016 Assets 16 RoE ~13 GDP Growth ~4 Loans 16 RoA ~1.3 Headline CPI ~7 TRY 14 Securities / Total Assets ~13 CAD / GDP <5 FX 15 Loan / Deposit <105 Budget Deficit / GDP ~1 Cor
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Slide 28: For further information please contact
For further information please contact halkbank.IR@halkbank.com.tr DISCLAIMER The information contained in this presentation has been prepared by Türkiye Halk Bankası A.S. (the Bank) for informational purposes only. Although the information in this presentation has been obtained from sources which t
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