Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — Q1 2016 Earnings Presentation

28 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2016

  1. Slide 1: Q1 2016 Earnings Presentation

    Q1 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

  2. Slide 2: Slide 2

  3. Slide 3: Macro Outlook

    Q1 2016 Earnings Presentation Macro Outlook > Following the first rate hike in Dec-15 mpc meeting, FED is broadly > Turkish economy delivered stronger than expected 4.0% GDP growth in expected not to rush into series of rate hikes on concerns regarding 2015, household spending stood out as the major

  4. Slide 4: Banking Sector Overview

    Q1 2016 Earnings Presentation Banking Sector Overview > Total loan book up 1.8% QoQ and reached TRY 1.511 bn. > Trading income line was driven into the negative territory TRY loan book grew 2.3% whereas FX loans rose by by swap costs. 0.9%. > OpEx growth moderated to 9.2% YoY as of Feb-16. > Housing

  5. Slide 5: Q1 2016 Highlights

    Q1 2016 Earnings Presentation Q1 2016 Highlights > Quarterly net income at TRY 680 mn, up by 16.5% from > L/D ratio at 105.4%, remarkably below sector average. the previous year. > Low cost CBRT repo utilization increased, volume at > Both RoE and RoA improved to 13.7% and 1.4% TRY 12.4 bn. respecti

  6. Slide 6: NII supported Net Income growth 5.0% QoQ

    Q1 2016 Earnings Presentation NII supported Net Income growth 5.0% QoQ Net Income (TRY million) 16.5% 5.0% 680 646 648 YoY Change (%) 584 438 > 18.9% Net Interest Income > -9.6% Net Fees & Commissions > 14.7% Total Operating Income > 16.5% Net Income Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 RoE (%) RoA (%) YtD

  7. Slide 7: TRY driven asset growth 4.0% QoQ

    Q1 2016 Earnings Presentation TRY driven asset growth 4.0% QoQ Asset Growth IEA Securities YoY 21.1% QoQ 4.0% 82.5% Portion 14.6% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 21.1% Loans Cash & CBRT Securities Other Assets 4.0% 83.5% 82.9% 82.5% 195.3 187.7 FX 26.8% 30.9% 29

  8. Slide 8: Securities Portfolio: balanced and stable composition delivering strong interest income

    Q1 2016 Earnings Presentation Securities Portfolio: balanced and stable composition delivering strong interest income Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 16.4 14.9 14.6 CPI-Linked (TRY 9.1 bn) 31.9% 26.4 27.9 28.5 FX 4.4 17% 5.8 21% 5.8

  9. Slide 9: Delivering guided strong loan growth 4.6% QoQ

    Q1 2016 Earnings Presentation Delivering guided strong loan growth 4.6% QoQ (TRY billion)(a) 22.9% 4.6% Total Loans HALKBANK B. Sector(b) 130.0 YoY YoY 123.8 124.2 0.3 Commercial Loans 0.3 22.9% 14.2% 115.1 0.3 11.0 QoQ 7.8% QoQ QoQ 9.7 10.2 0.3 4.6% 1.8% 8.5 105.7 39.1 Corporate Loans TRY Loans 1.1

  10. Slide 10: TRY dominated loan book

    Q1 2016 Earnings Presentation TRY dominated loan book Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 5.2% Commercial 3.1% Commercial 9% Corporate 22.3% SME 40% FX Corporate 30% TRY 30.6% 69.4% Cooperative 14%(b) Retail 22% Sectoral Breakdown of Loans (%)(a) Retail Loans by Types

  11. Slide 11: Strong collateralized mortgage loans make up 45% of the retail loans

    Q1 2016 Earnings Presentation Strong collateralized mortgage loans make up 45% of the retail loans (TRY billion)(a) 5.3% Retail Loans 2.3% (b) HALKBANK B. Sector YoY YoY 28.2 5.3% 6.3% 27.5 27.6 QoQ QoQ 26.8 26.8 2.3% 0.2% Consumer Loans QoQ 1.0% 13.0 12.4 12.3 12.1 12.2 Share in total 43.3% Housing

  12. Slide 12: NPL ratio 3.0%, again below sector average

    Q1 2016 Earnings Presentation NPL ratio 3.0%, again below sector average NPL Portfolio (TRY million) NPL Coverage (%) 3,974 4,137 3,871 76.0 76.1 76.2 75.8 3,747 3,772 65.7 Mar-15 Jun-15 Sep-15 2015 Mar-16 Mar-15 Jun-15 Sep-15 2015 Mar-16 Loans under Close Watch (TRY million) NPL/Total Loans (%) Loa

  13. Slide 13: NPL ratio by segments

    Q1 2016 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a)(c) Corporate - Commercial (%) (a) Consumer Loans (%) (c) 5.3 5.9 4.8 5.6 4.9 4.2 4.0 3.7 3.8 3.7 2.5 2.5 2.1 2.1 2.2 2.3 2.0 1.8 2.0 2.0 1.9 1.6 1.6 1.7(b) 1.5 Mar-15 Jun-15 Sep-15 2015 Mar-16 Mar-15 Jun-15 Sep-15 2015 M

  14. Slide 14: Better than guided Cost of Risk, 54 bps

    Q1 2016 Earnings Presentation Better than guided Cost of Risk, 54 bps Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) 165 YtD Quarterly 103 111 82 60 54 84 52 73 54 11 52 38 40 54 Mar-15 Jun-15 Sep-15 2015 Mar-16 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (bps)

  15. Slide 15: Strong deposit volume based on TRY IBL 85.2%

    Q1 2016 Earnings Presentation Strong deposit volume based on TRY IBL 85.2%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 84.9% 85.2% 85.2% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity 119.2 119.1 41.6

  16. Slide 16: Above sector deposits growth in TRY 18.4% YoY

    Q1 2016 Earnings Presentation Above sector deposits growth in TRY 18.4% YoY HALKBANK B. Sector(b) FX Dep. YoY 16.4% 21.9% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 1.9% 3.3% in USD YoY 6.8% 11.8% Total Dep. YoY 17.7% 14.4% TRY Dep. YoY 18.4% 9.1% terms QoQ 5.6% 7.0% QoQ 3.0% 2.9% QoQ 3.5% 2.5%

  17. Slide 17: Solid core deposit base

    Q1 2016 Earnings Presentation Solid core deposit base Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 83.8% 83.7% 18.3% 81.7% 16.2% 16.3% FX 34% 3.1% 18.5% 0.1% -0.8% TRY 89.9 66% 17.4 17.4 8

  18. Slide 18: Cost - Yield - Spread

    Q1 2016 Earnings Presentation Cost - Yield - Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 6.4 5.2 6.0 5.3 5.4 5.5 4.7 4.4 4.4 4.0 3.8 2.0 3.7 1.2 3.4 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Yield on Loans (%)(b) Yield on Securities (%) 10.0 10.0 10.0 10.2 10.

  19. Slide 19: Strong net interest income growth 18.9% YoY

    Q1 2016 Earnings Presentation Strong net interest income growth 18.9% YoY Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses 18.9% 18% 3.0% on Securities 1,520 1,378 1,481 1,526 1,283 3,001 3,398 3,466 3,792 3,945 (1,718) 82% (1,878) (2,088) (2,310)

  20. Slide 20: Stable breakdown in fees & commissions income

    Q1 2016 Earnings Presentation Stable breakdown in fees & commissions income Net Fees & Commissions Income (TRY million) Net Fees & Commissions / Operating Revenues (%) -9.6% -5.1% 17.9 15.0 15.6 16.0 323 14.1 292 308 292 271 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Mar-15 Jun-15 Sep-15 2015 Mar-16 Breakdown of

  21. Slide 21: Operating Expenses/ Average Assets stable at 2.0%

    Q1 2016 Earnings Presentation Operating Expenses/ Average Assets stable at 2.0% Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 20.2% 6.3% 962 2.0 2.0 2.0 890 895 904 38 (a) 800 61 57 41 56 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Mar-15 2015 Mar-16 Cost/Income (%) Breakdown of Operati

  22. Slide 22: Solvency Ratios

    Q1 2016 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Basel III (TRY mn) Mar-16 Credit Risk Base Amount (CRBA) 137,515 13.5 13.8 13.7 13.3 13.0 Market Risk Base Amount (MRBA) 4,993 13.1 13.0 Operational Risk Base Amount (ORBA) 11,297 13.0 12.9 12.2 Total Risk Weig

  23. Slide 23: Branch Network - Human Resources

    Q1 2016 Earnings Presentation Branch Network - Human Resources > 7 new branches opened in Q1-16. > Total branch number reached 951. Loans and Deposits per Branches (%) Breakdown of Banking Transactions (%) Automatic Loans/Branches Deposits/Branches Payment 6% 139.6 Internet 134.3 Banking 21% 120.7 1

  24. Slide 24: Balance Sheet

    Q1 2016 Earnings Presentation Balance Sheet QoQ YoY In TRY million Q1-15 2015 Q1-16 Change% Change% Cash and Balances Held with the Central Bank(a) 19,708 23,325 24,642 5.6 25.0 Banks & Money Market(b) 1,309 2,513 1,987 (21.0) 51.8 Securities(b) 26,391 27,908 28,467 2.0 7.9 Net Loans(b) 108,380 126,

  25. Slide 25: Income Statement

    Q1 2016 Earnings Presentation Income Statement QoQ YoY Change Change In TRY million Q1-15 Q4-15 Q1-16 % % Interest Income 3,001 3,792 3,945 4.1 31.5 On Loans 2,510 3,092 3,218 4.1 28.2 On Securities 482 676 689 1.9 42.9 Interest Expense 1,718 2,310 2,419 4.7 40.8 On Deposits 1,394 1,832 2,004 9.4 43

  26. Slide 26: Notes

    Q1 2016 Earnings Presentation Notes Financial Institutions and Investor Relations 24 www.halkbank.com.tr

  27. Slide 27: Slide 27

  28. 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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