Icbc Turkey Bank Anonim Sirketi · BIST:ICBCT
Icbc Turkey Bank Anonim Sirketi — Tekstilbank — Q1 2008 Earnings Presentation
20 slides from Icbc Turkey Bank Anonim Sirketi's earnings presentation, 2008
Slide 1: Earnings Presentation Q1 2008, BRSA Unconsolidated
Earnings Presentation Q1 2008, BRSA Unconsolidated 1
Slide 2: Highlights
Highlights... Strong focus on • Above sector growth figures in customer deposits driven deposits by TRY deposits • Further normalisation in Loan / Deposit ratio Reshuffling of • Shift from big ticket corporate loans to smaller ticket loanbook commercial, SME and retail loans Improvement in NII § Pre
Slide 3: Asset composition towards higher yielding products
Asset composition towards higher yielding products... Composition of Assets Total Asset Growth (TRY mn) CAGR 04-07: 35% YoY: 18% 3,126 8% 6.2% 6.6% 2,902 5.0% 12.2% 18.2% 11.8% 2,658 10.2% 11.6% 13.0% : : : IEA % IEA % IEA % .4 Q1 2007 2007 Q1 2008 .0 .8 93 95 93 71.4% 70.0% Currency Composition of
Slide 4: Strong deposit focus remains
Strong deposit focus remains... Composition of Liabilities Total Deposits* (TRY mn) TL Deposits* (TRY mn) & SHE YoY: 42% YoY: 76% 1,655 822 1,486 676 4% 11% 22% 3% 3% 1,163 466 13% 12% 13% 41% Q1 2007 2007 Q1 2008 Q1 2007 2007 Q1 2008 32% 31% FX Deposits* (US$ mn) Currency Breakdown* 53% 51% YoY: 30
Slide 5: Deposit growth continued to beat sector average in Q1 2008
Deposit growth continued to beat sector average in Q1 2008... Deposit Growth, 2007 – Q1 2008 Total Deposits TL Deposits 22% 11% 7% 8% Sector Tekstilbank Sector Tekstilbank Cost of TL Deposits Composition of Deposits Saving Deposits Commercial & Others 18.4% 18.3% 18.1% 17.4% 16.8% 37% 31% 33% 17.0%
Slide 6: Planned capital increase should ease the pressure on growth
Planned capital increase should ease the pressure on growth... Capital Adequacy Ratio Free Equity (TRY mn) Free Equity / Equity Decline is due to the new BRSA regulation, which encompasses increase in the 69.2% 65.5% risk weight of non-cash loans 64.8% (effective as of 01.01.2008) The announced 20%
Slide 7: Shift from corporate loans to commercial, SME and retail loans
Shift from corporate loans to commercial, SME and retail loans... Total Cash Loans (TRY mn) TL Cash Loans (TRY mn) YoY: 29% YoY: 36% 2,186 1,256 1,242 2,071 -1% 1,695 914 6% Loans / Deposits Q1 2007 2007 Q1 2008 Q1 2007 2007 Q1 2008 146% 139% 132% Currency Breakdown of FX Cash Loans (US$ mn) Cash Lo
Slide 8: NPL ratio still well below market average
NPL ratio still well below market average... NPL Ratio NPL Ratio (including non-cash loans) Tekstilbank Market Average* Tekstilbank Market Average* 3.7% 3.5% 3.0% 2.7% 2.6% 2.3% 1.4% 1.7% 0.8% 1.0% 0.9% 0.5% Q1 2007 2007 Q1 2008 Q1 2007 2007 Q1 2008 Source: BRSA Source: BRSA NPL Coverage NPL coverag
Slide 9: Retail banking in progress
Retail banking in progress... Breakdown of Loan Portfolio Breakdown of Retail Loans (TRY mn) YoY: 134% 18% 209.6 2% 1% 2% 3% 7% 8% 178.3 34.6 30.4 95% 89.7 75.1 91% 69.0 90% 27.0 31.5 26.2 27.0 72.9 9.8 52.7 21.4 Q1 2007 2007 Q1 2008 Q1 2007 2007 Q1 2008 Credit Cards Credit Cards General Purpose & O
Slide 10: Clean balance sheet
Clean balance sheet... Related party exposure has been historically minimal and significantly below market average... Group Total Risk / Total Risk Tekstilbank Market Average* 2.3% 2.7% 0.6% 0.6% 0.3% Q1 2007 2007 Q1 2008 Cash + Non-cash risk Group Cash Loans / Cash Loans Group Non-Cash Loans / Non-
Slide 11: Reshuffling of loanbook in favor of cash loans
Reshuffling of loanbook in favor of cash loans for more efficient use of capital... Total Non-Cash Loans (TRY mn) TL Non-Cash Loans (TRY mn) Non-Cash / Cash Loans 1,465 1,369 1,406 629 625 587 86% Q1 2007 2007 Q1 2008 Q1 2007 2007 Q1 2008 66% 64% Currency Breakdown of FX Non-Cash Loans (US$ mn) Non-
Slide 12: High contribution of loans to interest income
High contribution of loans to interest income... Interest Income (TRY mn) Composition of Interest Income* 99 7% 4% 86 15% Other 16% 13% Securities 9% 4 7% 5 13 FX Loans s: an 14 9 TL Loans 74% Lo 3 % 8 6 s: 70% an Lo 7 % 73 7 60 Q1 2007 Q1 2008 Q1 2007 Q1 2008 Interest Expense (TRY mn) Composition o
Slide 13: Margins in line with sector averages
Margins in line with sector averages... Banking Income (TRY mn) Adjusted Net Interest Margin* 45 42 7% 1 Tekstilbank Market Average 3 0.3 0.4 6 6 ** 5.5% % 5.3% 5.3% 12 5.3% II : 5.2% j.N 37 Ad 5.1% 33 Q1 2007 2007 Q1 2008 Q1 2007 Q1 2008 * Adjusted by FX gain / loss and trading gain / loss Adj.NII
Slide 14: Pressure on costs continued due to growth momentum
Pressure on costs continued due to growth momentum... Operating Expenses (TRY mn) Composition of Operating Expenses 30.3 47% 24.5% 20.6 19.8% 6.0 7.8% 0.8% 8.0%2.0% 2.3 4.6% 0.2 1.4 Increase was mainly due to 6.8% 5.1 the reflection of additional % costs of new hirings in 2007 68 (limited reflection
Slide 15: Cost pressure on bottomline
Cost pressure on bottomline... ROAE ROAA 15.6% 11.9% 1.9% 7.1% 1.5% 0.9% Q1 2007 2007 Q1 2008 Q1 2007 2007 Q1 2008 Cost / Average Assets Cost / Income 77.3% 68.0% 4.0% 52.6% 3.9% 3.0% Q1 2007 2007 Q1 2008 Q1 2007 2007 Q1 2008 15
Slide 16: Summary Balance Sheet
Summary Balance Sheet... TRY mn Q1 2007 2007 Q1 2008 Cash & Banks 498 373 394 Total Securities 346 297 364 Total Cash Loans 1,695 2,071 2,186 Fixed Assets & Subsidiaries 101 120 120 Other 18 41 62 Total Assets 2,658 2,902 3,126 Deposits* 1,163 1,486 1,655 Interbank Money Market* 347 210 154 Borrowin
Slide 17: Summary Income Statement
Summary Income Statement... TRY mn Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Interest Income 85.6 90.0 94.4 102.4 99.2 Loans 65.7 70.8 78.3 85.5 82.5 Securities 14.3 13.8 11.5 12.1 12.4 Other 5.6 5.4 4.6 4.9 4.3 Interest Expense 53.7 55.4 55.3 61.1 59.0 Deposits 28.3 31.4 34.5 37.0 39.2 Funds Borrowed
Slide 18: Well diversified loan portfolio
Well diversified loan portfolio... Sector Breakdown of Cash + Non-Cash Loans Cash & Non-Cash Breakdown of Sectors Q1 2008 Q1 2008 Paper Tourism 1% 1% Agriculture 2% Export trade 2% Metal Others 2% 14% Electronics Cash Non-Cash 2% 12% Chemical 3% Automotiv e 5% Construction 20% Energy 4% 5% 2% 2% 8%
Slide 19: Disclaimer Statement
Disclaimer St atement The information, opinions and estimates contained in this document have been compiled or arrived at by Tekstilbank from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or corr
Slide 20: For further information please contact
For further information please contact: Aslı Su Head of Investor Relations asli.su@tekstilbank.com.tr Phone: +90-212-335-5410 investorrelations@tekstilbank.com.tr www.tekstilbank.com.tr 20