Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — Q1 2014 Earnings Presentation

26 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2014

  1. Slide 1: Q1 2014 Earnings Presentation

    BRSA Bank Only Q1 2014 Earnings Presentation

  2. Slide 2: Macro Outlook

    Q1 2014 Earnings Presentation Macro Outlook > FED continues to taper QE3 with another USD 10 bn in > Volatility in currency has lost pace following CBRT’s interest Mar-14, monthly bond purchasing dropped to USD 55 bn. No rate hikes. CBRT limited daily FX selling amount with USD 50 rate hike expected

  3. Slide 3: Banking Sector Overview

    Q1 2014 Earnings Presentation Banking Sector Overview > Loan growth 3.3% QoQ whereas deposit growth was lower at > Net income decreased by 26.3% YoY as of Feb-14 mainly due 1.5%, L/D ratio continues to surge, reaching 112.0%. to trading losses and increased interest expenses. > Retail loans up by a

  4. Slide 4: Q1 2014 Highlights

    Q1 2014 Earnings Presentation Q1 2014 Highlights > Quarterly net income at TRY 530 mn. > Relatively low cost CBRT repo funding facility > RoE 15.0% and RoA 1.5%. utilized, TRY 5.3 bn. > NIM at 4.0%, impact of repricing mismatch > L/D ratio at 88.8%, remarkably below the sector visible. average, enab

  5. Slide 5: Net income down 25.7% YoY

    Q1 2014 Earnings Presentation Net income down 25.7% YoY Net Income (TRY million) (25.7%) 713 715 741 582 530 > Impact of increased cost of deposits became visible in 1Q NII. > Lack of net trading gains. Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 RoE (%) RoA (%) YtD Quarterly YtD Quarterly 22.9 23.1 2.6 2.6 21.1

  6. Slide 6: Loan driven asset growth, 4.0% QoQ

    Q1 2014 Earnings Presentation Loan driven asset growth, 4.0% QoQ Asset Growth IEA Securities YoY 30.7% QoQ 4.0% 82.2% portion 20.6% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) Loans Cash & CBRT 30.7% 4.0% 82.9% 81.3% 82.2% Securities Other Assets 139.9 145.5 27.3% FX 23.1%

  7. Slide 7: Increasing TRY securities yield backed by CPIs, 10.6% in Q1-14

    Q1 2014 Earnings Presentation Increasing TRY securities yield backed by CPIs, 10.6% in Q1-14 Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 20.7 20.4 20.6 CPI-Linked (TRY 9.8 bn) 29.9 32.6% 28.6 23.1 3.3 12% 3.6 12% 2.4 10% 25.2 88% 26.3 88% 20.7

  8. Slide 8: Strong growth in TRY loans; 6.5% QoQ

    Q1 2014 Earnings Presentation Strong growth in TRY loans; 6.5% QoQ (TRY billion)(a) 28.5% Total Loans 4.6% HALKBANK B. Sector (b) YoY YoY 87.2 28.5% 30.2% 83.4 1.1 QoQ QoQ 78.9 1.1 6.1 Commercial Loans 4.6% 3.3% 72.6 1.1 5.8 YoY 38.2% 5.5 QoQ 4.9% 67.9 1.1 TRY Loans 1.1 4.4 4.9 24.5 Corporate Loans

  9. Slide 9: TRY and SME heavy loan portfolio remaining unchanged

    Q1 2014 Earnings Presentation TRY and SME heavy loan portfolio remaining unchanged Loans by Currency (%)(a) Interest Structure (%)(a) SME 5.3% Commercial 3.4% Fixed Corporate 19.4% 47.2% FX TRY 28.1% 71.9% Floating 52.8% Sectoral Breakdown of Loans (%)(a) Loans by Customer Segmentation (%)(a) Other

  10. Slide 10: Credit cards and housing loans continued to increase

    Q1 2014 Earnings Presentation Credit cards and housing loans continued to increase (TRY billion)(a) 21.2% 0.1% HALKBANK 23.5 23.5 YoY 22.6 21.2% 21.1 QoQ 19.4 0.1% Consumer Loans 11.6 11.2 11.5 YoY 6.6% 11.2 QoQ -2.9% B. SECTOR(b) 10.5 Share in total 47.8% YoY 18.2% QoQ Housing Loans 0.2% 9.1 9.4 Yo

  11. Slide 11: Credit card business gaining ground

    Q1 2014 Earnings Presentation Credit card business gaining ground # of Credit Cards (Thousand) # of POS (Thousand) Credit Risk Balance (TRY Million) 2,680 # of Merchants (Thousand) 206 2,328 2,633 1,981 146 1,567 131 137 3,235 3,249 3,316 105 122 240 3,048 2,734 180 138 143 163 116 Mar-13 Jun-13 Sep

  12. Slide 12: NPL ratio slightly up to 2.7%

    Q1 2014 Earnings Presentation NPL ratio slightly up to 2.7% NPL Portfolio (TRY million) NPL Coverage (%) 2,425 82.4 2,134 2,245 81.9 2,004 2,068 81.5 80.6 77.4 75.2 Since 2002 498 497 499 484 Legacy NPLs 482 2001 and before Mar-13 Jun-13 Sep-13 2013 Mar-14 Mar-13 Jun-13 Sep-13 2013 Mar-14 Sector Ave

  13. Slide 13: NPL ratio by segments

    Q1 2014 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a,b) Corporate - Commercial (%)(a) Consumer Loans (%)(b) 2.8 3.3 3.2 3.2 2.5 2.5 3.1 3.0 2.4 2.4 2.0 1.9 1.8 1.8 1.8 1.7 1.7 1.6 1.5 1.5 Mar-13 Jun-13 Sep-13 2013 Mar-14 Mar-13 Jun-13 Sep-13 2013 Mar-14 SME Loans (%)(a) Cre

  14. Slide 14: No material deterioration in Gross CoR, Net CoR remaining stable

    Q1 2014 Earnings Presentation No material deterioration in Gross CoR, Net CoR remaining stable Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 88 70 81 65 70 64 70 58 55 56 56 61 58 56 49 Mar-13 Jun-13 Sep-13 2013 Mar-14 SME Retail Commercial Corporate Total Net Cost of Risk Gr

  15. Slide 15: L/D kept at comfortably low level, 88.8%

    Q1 2014 Earnings Presentation L/D kept at comfortably low level, 88.8% IBL 85.0%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 83.5% 85.3% 85.0% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity 110.7 112.

  16. Slide 16: Strong and sticky deposit base

    Q1 2014 Earnings Presentation Strong and sticky deposit base HALKBANK B. Sector (b) FX Dep. YoY 45.1% 58.9% HALKBANK B. Sector (b) HALKBANK B. Sector (b) QoQ 1.4% 8.5% Total Dep. YoY 24.5% 29.2% TRY Dep. YoY 15.3% 14.0% in USD YoY 21.4% 32.9% QoQ -0.7% 1.5% QoQ -1.8% -3.0% terms QoQ 0.4% 7.5% Total

  17. Slide 17: Deposit volume remaining TRY dominated

    Q1 2014 Earnings Presentation Deposit volume remaining TRY dominated Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 17.0% 83.9% 16.9% 16.1% 83.0% 83.1% FX 36% 16.1% 23.7% TRY 15.3 75.3 73.8 6

  18. Slide 18: Cost-Yield-Spread

    Q1 2014 Earnings Presentation Cost-Yield-Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 6.2 5.3 6.0 4.6 4.8 4.1 4.3 5.1 4.9 4.6 4.6 4.6 4.3 3.9 3.7 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Yield on Loans (%)(b) Yield on Securities (%) 10.8 9.8 10.0 10.0 9.6 9.2

  19. Slide 19: Impact of repricing mismatch reflected in the first quarter NIM

    Q1 2014 Earnings Presentation Impact of repricing mismatch reflected in the first quarter NIM Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses 1,229 1,162 1,245 1,203 1,153 26% on Securities 2,254 2,138 2,261 2,552 2,734 (1,009) (935) (1,108) (1,32

  20. Slide 20: Share of NFC in operating revenues increased up to 15.5%

    Q1 2014 Earnings Presentation Share of NFC in operating revenues increased up to 15.5% Net Fees & Commissions Income (TRY million) Net Fees & Commissions / Operating Revenues (%) 238 245 15.5 229 222 13.1 13.6 13.7 218 12.4 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Mar-13 Jun-13 Sep-13 2013 Mar-14 Breakdown of

  21. Slide 21: OPEX growth back to normalization, 6.5% YoY

    Q1 2014 Earnings Presentation OPEX growth back to normalization, 6.5% YoY Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 6.5% 673 697 689 2.4 2.4 647 638 2.2 2.1 2.0 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Mar-13 Jun-13 Sep-13 2013 Mar-14 Cost/Income (%) Breakdown of Operating Expens

  22. Slide 22: Solvency Ratios

    Q1 2014 Earnings Presentation Solvency Ratios Capital Ratios (%) Details on Capital Ratio Basel – II Basel – III Basel III (TRY mn) Mar-14 15.9 14.7 14.0 13.9 13.9 Credit Risk Base Amount (CRBA) 96,858 14.1 13.3 12.7 12.7 12.9 Market Risk Base Amount (MRBA) 3,755 Operational Risk Base Amount (ORBA)

  23. Slide 23: Branch Network - Human Resources

    Q1 2014 Earnings Presentation Branch Network - Human Resources > Total branch number reached 873. > London Rep. office opened. Loans-Deposits-Employee per Branches ATMs Deposits/Branches (TRY mn) Loans/Branches (TRY mn) Employees/Branches 115.5 114.7 2,627 2,961 3,061 98.0 95.6 2,554 97.3 101.9 80.8

  24. Slide 24: Balance Sheet

    Q1 2014 Earnings Presentation Balance Sheet QoQ YoY In TRY million Q1-13 2013 Q1-14 Change% Change% Cash and Balances Held with the Central Bank(a) 13,421 19,976 19,534 (2.2) 45.6 Banks & Money Market(b) 1,592 1,849 2,227 20.4 39.8 Securities(b) 23,090 28,559 29,928 4.8 29.6 Net Loans(b) 68,983 84,8

  25. Slide 25: Income Statement

    Q1 2014 Earnings Presentation Income Statement In TRY million Q1-13 Q4-13 Q1-14 QoQ YoY Change % Change % Interest Income 2,254 2,552 2,734 7.1 21.3 On Loans 1,728 1,903 2,017 6.0 16.8 On Securities 520 645 712 10.5 37.0 Interest Expense 1,009 1,323 1,572 18.8 55.8 On Deposits 909 1,176 1,315 11.9 4

  26. Slide 26: For further information please contact halkbank.IR@halkbank.com.tr

    Q1 2014 Earnings Presentation 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

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