Icbc Turkey Bank Anonim Sirketi · BIST:ICBCT

Icbc Turkey Bank Anonim Sirketi — Tekstilbank (ICBC Turkey Bank) — Q2 2014 Earnings Presentation

19 slides from Icbc Turkey Bank Anonim Sirketi's earnings presentation, Jun 30, 2014

  1. Slide 1: Earnings Presentation June 30, 2014 / BRSA Bank-Only

    Earnings Presentation June 30, 2014 / BRSA Bank-Only 1

  2. Slide 2: Macroeconomic environment in 2Q 2014

    Macroeconomic environment in 2Q 2014...  ECB’s further policy loosening and Fed’s dovish attitude has improved global liquidity conditions and inflows to Turkey  Turkish Central Bank started to cut rates from May onwards, reducing its policy rate down to 8.25% as of June, from 10%  Economy grew b

  3. Slide 3: Conservative policies continued in the second quarter

    Conservative policies continued in the second quarter Highlights of 2Q 2014:  Tekstilbank entered a transition period in the second quarter of the year, following the agreement signed at the end of April by ICBC to buy 75.5% of the Bank’s from the main shareholder GSD Holding  Balance sheet contra

  4. Slide 4: Looking into 2014

    Looking into 2014 Macroeconomy Banking Sector Tekstilbank  Lower macroeconomic growth,  Slower macroeconomic growth,  Conservative growth approach conceivably around 3%, hit by the and restrictions on credit card will continue lower capital inflows, measures installments is expected to keep taken

  5. Slide 5: Assets declined by 4.2% vs. first quarter

    Assets declined by 4.2% vs. first quarter Composition of Assets Total Assets (TLmn) CAGR 04-07: YoY: -2.7% 35% 3,849 3,699 3,645 3,730 3,545 16.7% -4.2% 15.5% 15.6% 15.4% 18.8% 1.7% 2.0% 2.1% 1.1% 1.4% 10.8% 10.5% 11.3% 11.7% 9.7% Jun 13 Sep 13 2013 Mar 14 Jun 14 70.8% 72.0% 71.0% 71.8% Currency Com

  6. Slide 6: Loan portfolio contracted by 3%, prompted by lower F/X loans

    Loan portfolio contracted by 3%, prompted by lower F/X loans Total Cash Loans (TLmn) TL Cash Loans* (TLmn) YoY: -0.3% YoY: 4.2% 2,641 2,773 2,625 2,545 1,913 1,945 1,873 1,910 2,554 1,833 -3.0% 2.0% Loans / Customer Deposits 122% 120% 120% 107% 110% Jun 13 Sep 13 2013 Mar 14 Jun 14 Jun 13 Sep 13 201

  7. Slide 7: TL deposits captured %53 of total volume

    TL deposits captured %53 of total volume Composition of Liabilities Total Deposits* (TLmn) TL Deposits* (TLmn) & SHE YoY: -10.8% YoY: -9.3% 2,377 2,526 2,158 2,193 1,240 1,239 1,254 4% 3% 3% 2,120 4% 5% 1,044 1,125 -3.3% 7.7% 16% 16% 16% 16% 18% 22% 15% 15% 20% 19% Jun 13 Sep 13 2013 Mar 14 Jun 14 J

  8. Slide 8: CAR was strong at 18.7%

    CAR was strong at 18.7% Capital Adequacy Ratio (CAR) Free Equity (TLmn) Free Equity / Equity 85.4% 84.4% 83.7% 83.2% 18.5% 18.7% 17.4% 17.6% 16.7% 66.4% 513 513 518 510 377 Jun 13 Sep 13* 2013 Mar 14 Jun 14 Jun 13 Sep 13 2013 Mar 14 Jun 14 Free Equity: SHE-subsidiaries-property & equipment-intangibl

  9. Slide 9: NPL ratio increased, reflecting mainly smaller loan book

    NPL ratio increased, reflecting mainly smaller loan book NPL Ratio NPL Ratio (including non-cash loans) Tekstilbank Market Average Tekstilbank Market Average 6.7% 6.3% 6.1% 4.6% 4.4% 4.3% 4.7% 5.1% 3.6% 3.4% 2.7% 2.7% 2.6% 2.7% 2.7% 2.1% 2.1% 2.1% 2.1% 2.0% Jun 13 Sep 13 2013 Mar 14 Jun 14 Jun 13 Se

  10. Slide 10: Commercial loans continued to navigate around 86% of the total portfolio

    Commercial loans continued to navigate around 86% of the total portfolio Breakdown of Loan Portfolio Breakdown of Retail Loans (TLmn) YoY: -3.9% 394 1.4% 1.4% 1.2% 1.2% 1.2% 371 371 373 -4.6% 13.1% 356 13.0% 13.0% 35 12.7% 12.8% 36 36 33 31 187 196 184 176 85.9% 85.8% 86.0% 173 85.5% 85.8% 30 29 27

  11. Slide 11: Non-cash loans continued to cut pace in 2Q

    Non-cash loans continued to cut pace in 2Q Total Non-Cash Loans (TLmn) TL Non-Cash Loans (TLmn) Non-Cash / Cash Loans YoY: -13.4% YoY: -24.2% 1,216 1,211 622 610 1,185 1,121 582 1,054 473 472 -6.0% -0.3% Jun 13 Sep 13 2013 Mar 14 Jun 14 47.6% Jun 13 Sep 13 2013 Mar 14 Jun 14 44.9% 43.7% 42.7% 41.4%

  12. Slide 12: Net interest income increased slightly vs. first half of 2013

    Net interest income increased slightly vs. first half of 2013 Interest Income (TLmn) Composition of Interest Income 179 0.5% 2.2% 22.3% 9.8% 14.2% 146 4.0 Other 0.7 25.3 14.4 Securities 89.7% 83.6% Loans 149.6 131.1 1H 2013 1H 2014 1H 2013 1H 2014 Interest Expense (TLmn) Composition of Interest Expe

  13. Slide 13: NIM preserved its rate around 4.6%

    NIM preserved its rate around 4.6% Banking Income (TLmn) Adjusted Net Interest Margin* (Quarterly) 3.7% 95 92 12.7 7.9 13.0 9.3 4.8% 4.7% 4.6% 73.1 3.8% 70.8 3.6% 2Q13 3Q13 4Q13 1Q14 2Q14 1H 2013 1H 2014 Other Net Fees Adj.NII (by FX and trading gain / loss) * Adjusted by FX gain / loss 13

  14. Slide 14: OPEX was higher vs. last year, stimulated by rent expense

    OPEX was higher vs. last year, stimulated by rent expense* Operating Expenses (TLmn) Composition of Operating Expenses 64 18% 54 23.0% 24.3% 15.6 12.4 11.3% 14.2% 9.2 2.9% 2.6% 6.2 1.7 1.6 62.8% 37.9 58.9% 34.2 1H 2013 1H 2014 1H 2013 1H 2014 Personnel Depr.& Amort. Personnel Depr.& Amort. Operation

  15. Slide 15: Summary Balance Sheet

    Summary Balance Sheet... Jun 2013 Dec 2013 Mar 2014 Jun 2014 TL million Cash & Banks 442 526 476 400 Total Securities 354 403 417 416 Total Cash Loans 2,554 2,773 2,625 2,545 Fixed Assets & Subsidiaries 122 41 49 59 Other 173 106 132 125 Total Assets 3,645 3,849 3,699 3,545 Deposits* 2,377 2,526 2,1

  16. Slide 16: Summary Income Statement

    Summary Income Statement... 1Q 2014 2Q 2014 1H 2013 1H 2014 TL million Interest Income 89.6 89.3 146.2 178.9 Loans 74.2 75.4 131.1 149.6 Securities 11.7 13.6 14.4 25.3 Other 3.7 0.3 0.7 4.0 Interest Expense 53.6 54.6 79.0 108.2 Deposits 34.9 36.0 63.9 70.9 Funds Borrowed 13.4 13.1 10.6 26.5 Other Bo

  17. Slide 17: Summary Income Statement (Consolidated)

    Summary Income Statement (Consolidated)... 1Q 2014 2Q 2014 1H 2013 1H 2014 TL million Interest Income 90.4 90.2 147.7 180.6 Loans 74.8 75.9 132.3 150.7 Securities 11.7 13.7 14.4 25.4 Other 3.9 0.6 1.0 4.5 Interest Expense 53.6 54.5 79.0 108.1 Deposits 34.9 35.9 63.9 70.8 Funds Borrowed 13.4 13.1 10.

  18. Slide 18: Disclaimer

    Disclaimer Statement 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 corre

  19. Slide 19: For further information please contact

    For further information please contact: Investor Relations Phone: +90-212-335-5159 investorrelations@tekstilbank.com.tr www.tekstilbank.com.tr 19

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