Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — FY2016 Earnings Presentation
27 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2017
Slide 1: 2016 Earnings Presentation
2016 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: 2016 Highlights
2016 Earnings Presentation 2016 Highlights Net Income Growth RoE YoY NIM CoR (a) Solid Financial Results 10.5% & 12.6% & +20 bps & 81 bps Reported Net Income (TRY mn) Adjusted Net Income (TRY mn) (b) 10.5% YoY 31.0% YoY 3,306 2,558 748 2,315 2,525 210 2,558 2,315 2015 2016 2015 2016 Quarterly Adjust
Slide 3: 2016 Highlights: Main Drivers of Net Income Growth
2016 Earnings Presentation 2016 Highlights Main Drivers of Net Income Growth 1 Strong Topline 2 Fees & Commissions Generation Capacity NII Growth +23% Despite YoY NIM +20 bps Cancellation +15% YoY of Account Maintenance fees vs Budget Sector as NII +12% YoY, NIM Flat vs of Dec-16 +7% YoY 3 Sustained
Slide 4: Macro & Banking Sector Snapshot
2016 Earnings Presentation Macro & Banking Sector Snapshot Domestic Macro Environment Real GDP Growth (%) CAD / GDP (%) CAD/GDP CAD/GDP (Exc Gold) Brent (USD / Mon Avg-RHS) 11.1 -2.50 10 8.5 6.1 -3.00 20 4.8 5.2 4.5 4.5 -3.50 30 -4.0 -4.00 40 -4.50 -4.3 50 -5.00 55 60 -5.50 70 (1.8) -6.00 80 Dec-14
Slide 5: Macro & Banking Sector Snapshot
2016 Earnings Presentation Macro & Banking Sector Snapshot Domestic Macro Environment Turkish Banking Sector Unemployment & Confidence Indexes 2016 vs 2015 in Terms of Selected Items (%) Consumer CI Unemployment (%-RHS) Real Sector CI Total Assets 15.8 0 110 Total Loans 16.7 98.4 2 TRY Loans 11.7 10
Slide 6: Double digit net income growth despite additional provisions
2016 Earnings Presentation Double digit net income growth despite additional provisions Net Income (TRY million) 29.4% 886 10.5% 2,995 800 680 182 182 Add. Spesific Provision 648 630 2,558 256 Add. 363 256 Add. General Provision 2,315 Add. Spesific Provision General Provision Q4-15 Q1-16 Q2-16 Q3-16
Slide 7: Strong asset growth, also reflecting depreciation impact
2016 Earnings Presentation Strong asset growth, also reflecting depreciation impact Asset Growth IEA Securities YoY 23.3% QoQ 9.5% 82.5% Portion 14.4% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 48.9% Loans Cash & CBRT 23.3% 82.5% 82.9% 82.5% Securities Other Assets 231.4 F
Slide 8: Growing securities book, supporting interest income
2016 Earnings Presentation Growing securities book, supporting interest income Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 17.2 14.9 14.6 14.4 CPI-Linked (TRY 9.1 bn) 27.5% 27.9 30.9 33.2 26.7 6.0 19% 6.6 20% FX 4.1 15% 5.8 21% Fixed Rate 58.3%
Slide 9: Solid loan growth with increasing market share
2016 Earnings Presentation Solid loan growth with increasing market share: 24.9% YoY (TRY billion)(a) 24.9% Total Loans 9.6% HALKBANK B. Sector(b) YoY YoY 155.1 24.9% 16.8% 141.5 0.3 Commercial Loans QoQ QoQ 124.2 0.4 13.2 YoY 29.3% 9.6% 7.7% 0.3 11.9 QoQ 10.8% 10.2 Corporate Loans TRY Loans 99.2 1.
Slide 10: Risk limiting & return ensuring, balanced loan book
2016 Earnings Presentation Risk limiting & return ensuring, balanced loan book Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 5.4% Commercial 3.3% Commercial 9% SME 37% Corporate 26.3% Corporate 33% TRY FX 65.0% 35.0% Cooperative 13%(b) Retail 21% Sectoral Breakdown of Loans (%)(
Slide 11: Retail loans: Consistent loan growth, increasing market share
2016 Earnings Presentation Retail loans: Consistent loan growth, increasing market share (TRY billion)(a) 18.0% HALKBANK YoY 8.0 18.0% 32.5 QoQ 30.1 8.0% 27.6 Consumer Loans 25.7 YoY 11.9% 13.5 12.8 QoQ 5.9% B. Sector(b) 12.5 12.1 Share in total 41.7% YoY 9.6% Housing Loans 15.3 QoQ YoY 24.7% 13.8 4
Slide 12: Group II loans down, NPL coverage up
2016 Earnings Presentation Group II loans down, NPL coverage up NPL Portfolio (TRY million) NPL Coverage (%) 5,140 77.1 4,625 76.2 75.1 3,700 3,974 65.2 2014 2015 Sep-16 2016 2014 2015 Sep-16 2016 Loans under Close Watch (TRY million) NPL/Total Loans (%) Loans under Close Watch/Net Loans (%) Halkban
Slide 13: NPL ratio by segments
2016 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) (a) Consumer Loans (%) (a) 6.2 6.0 5.1 5.6 4.0 3.8 3.7 3.7 2.5 2.5 2.5 2.2 2.1 2.0 1.9 1.9 2014 2015 Sep-16 2016 2014 2015 Sep-16 2016 SME Loans (%)(a) Credit Cards (%)(a) 4.7 4.9 7.9 7.8 3.9 7.4
Slide 14: Additional provisioning increasing CoR
2016 Earnings Presentation Additional provisioning increasing CoR Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 146 142 84 81 66 70 73 63 81 60 54 40 58 59 54 2015 Mar-16 Jun-16 Sep-16 2016 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (bps) (Speci
Slide 15: Comfortably low share of non-deposit ST FX IBL
2016 Earnings Presentation 5.6% comfortably low share of non-deposit ST FX IBL 86.3%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 84.4% 85.2% 85.0% 86.3% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity
Slide 16: Details of deposit base
2016 Earnings Presentation Details of deposit base HALKBANK B. Sector(b) YoY 46.2% 14.8% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 31.6% 16.6% in USD YoY 20.8% -5.1% YoY 23.0% 16.7% YoY 10.6% 18.1% terms QoQ 11.7% -1.0% QoQ 9.2% 8.4% QoQ -2.5% 3.2% Total Deposits TRY Deposits FX Deposits (TRY
Slide 17: Cost of TRY deposits in the path of decline
2016 Earnings Presentation Cost of TRY deposits in the path of decline Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 18.9% 16.7% 83.8% 83.8% 83.3% 16.2% 16.2% 81.1% FX 41% 22.1% 17.8% 13.8%
Slide 18: Cost - Yield - Spread
2016 Earnings Presentation Cost - Yield - Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 6.4 6.2 6.0 5.9 5.8 4.8 4.6 4.0 4.3 3.8 3.1 3.7 2.5 3.4 1.2 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Yield on Loans (%)(b) Yield on Securities (%) 10.0 10.2 10.5 10.5 10.6 9
Slide 19: Quarterly NII up 5.2%, Yearly NII up 22.8%, NIM up ~20bps
2016 Earnings Presentation Quarterly NII up 5.2%, Yearly NII up 22.8%, NIM up ~20bps Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses 33.5% 22.8% 15% 5.2% on Securities 6,957 1,978 5,663 1% on Others 1,526 1,572 1,881 1,481 3,792 3,945 4,021 4,341
Slide 20: NFCI: Four-Quarter consecutive increase
2016 Earnings Presentation NFCI: Four-Quarter consecutive increase; 20.4% QoQ, 15.2% YoY Net Fees & Commissions Income (TRY million) 34.6% 15.2% 20.4% 1,375 1,194 415 324 344 308 292 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 2015 2016 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenu
Slide 21: Efficient cost management, Opex to Avg Assets at 1.8%
2016 Earnings Presentation Efficient cost management, Opex to Avg Assets at 1.8% Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 10.8% 3,864 1,063 3,489 89 (a) 962 931 2.0 2.0 904 909 9 (a) 214 1.8 38 27 15 41 Q4-15 Q1-16 Q2-16 Q3-16 2016 2015 2016 2014 2015 2016 Cost/Income
Slide 22: Solvency Ratios
2016 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Basel III (TRY mn) 2016 13.8 13.7 13.5 13.5 13.1 Credit Risk Base Amount (CRBA) 162,742 13.1 13.0 12.8 12.6 12.0 Market Risk Base Amount (MRBA) 1,948 Operational Risk Base Amount (ORBA) 11,297 Total Risk Weighted
Slide 23: Branch Network – Human Resources
2016 Earnings Presentation Branch Network – Human Resources > 15 new branches opened in 2016. > Total branch number reached 959. Loans and Deposits per Branches (TRY million) Breakdown of Banking Transactions (%) Automatic Loans/Branches Deposits/Branches Internet Payment 4% Banking 12% 165.1 151.3
Slide 24: Balance Sheet
2016 Earnings Presentation Balance Sheet QoQ YoY In TRY million 2015 Sep-16 2016 Change% Change% Cash and Balances Held with the Central Bank(a) 23,325 27,038 29,999 11.0 28.6 Banks & Money Market(b) 2,513 810 1,661 105.1 (33.9) Securities(b) 27,908 30,870 33,216 7.6 19.0 Net Loans(b) 126,745 144,61
Slide 25: Income Statement
2016 Earnings Presentation Income Statement YoY QoQ YoY Change Change Change In TRY million 2015 2016 % Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 % % Interest Income 13,657 16,954 24.1 3,792 3,945 4,021 4,341 4,647 7.1 22.6 On Loans 11,258 14,256 26.6 3,092 3,218 3,461 3,640 3,937 8.2 27.3 On Securities 2,341 2
Slide 26: Halkbank 2017 Expectations
2016 Earnings Presentation Halkbank 2017 Expectations Growth Expectations (%) Key Ratios (%) 2017 2017 Assets 13 RoE ~16 Loans 15 RoA ~1.5 TRY 14 Securities / Total Assets ~13 FX (USD) 8-9 Loan / Deposit <102 Corporate 15 NIM Flat SME 17 OpEx / Average Assets ~2 Retail 10 Cost of Risk (bps) ~60 Depo
Slide 27: 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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