Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — H1 2011 Earnings Presentation
26 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2011
Slide 1: H1 2011 Earnings Presentation
H1 2011 Earnings Presentation BRSA Bank Only
Slide 2: Macro Outlook
H1 2011 Earnings Presentation Macro Outlook > Turkey remained amongst the fastest-growing economies in > TRY depreciated ~10% against a euro-dollar basket Q1 2011 with an 11% annualized growth rate surpassing between March and July. market expectations of 9.6%. > June foreign trade deficit weighed i
Slide 3: Banking Sector Outlook
H1 2011 Earnings Presentation Banking Sector Outlook > Sector loan growth is still high with 17.9% YtD and 9.8% > L/D ratio reaches 91.1%; TRY L/D at 101% stiffens QoQ increases that are mainly driven by the retail segment; competition for TRY deposits. some loss in momentum can be expected in the s
Slide 4: H1 2011 Highlights: High growth trend with sustainable profitability
H1 2011 Earnings Presentation H1 2011 Highlights High growth trend with sustainable profitability > Strong top line performance, 3.8% YoY increase in > Retail loans, up by 22.6% YtD, are the main driver of operating revenues. loan growth. > Once again, one of the highest RoE in the sector at 27.4%.
Slide 5: Strong growth in assets: 17.3% YtD, 9.7% QoQ
H1 2011 Earnings Presentation Strong growth in assets : 17.3% YtD, 9.7% QoQ Asset Mix (%) Asset Growth IEA Loans YoY 25.7% YtD 17.3% 85.2% Securities Other Assets Total Asset Growth (TRY billion) Composition of IEAs(a) 25.7% 94.2% 88.3%(b) 87.3% (b) 85.2% (b) 17.3% 9.7% FX 27.7% 25.6% 26.7% 26.8% 56
Slide 6: Diversifying funds, more focus on cost of funding
H1 2011 Earnings Presentation Diversifying funds, more focus on cost of funding Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) Total L/D Deposits Other Liabilities Funds Borrowed Shareholder’s Equity 88.5 Interbank Money Market 85.3% 84.7% 85.3% 86.0% 84.4 80.9 74.7 FX 32.4% 31.4% 32
Slide 7: Strong presence all around the country
H1 2011 Earnings Presentation Strong presence all around the country Loans(a) Deposits(a) Kırklareli Kırklareli Bartın Sinop Bartın Sinop Edirne Tekirdağ İstanbul Zonguldak Kastamonu Edirne Zonguldak Kastamonu Artvin Tekirdağ İstanbul Artvin Ardahan Ardahan Karabük Samsun Karabük Samsun Kocaeli Düzc
Slide 8: Newly-invested securities booked under AFS
H1 2011 Earnings Presentation Newly-invested securities booked under AFS Total Securities Portfolio(a) (TRY billion) Total Securities Composition HTM AFS Trading 21.8 21.4 20.2 20.9 0.4% 0.4% 0.7% 0.5% FX 3.5 3.0 3.1 26.5% 36.6% 38.3% 40.8% For the rest of the 3.5 16% 15% 14% year, TRY 1.4 bn 17% re
Slide 9: Interest structure of the portfolio retained
H1 2011 Earnings Presentation Interest structure of the portfolio retained Total Securities Portfolio(a) (%) FX Securities Portfolio(a) (%) FIXED 35 46 46 47 47 FIXED 98 99 99 99 FRN 65 54 54 53 53 FRN 2 1 1 1 Jun-10 2010 Mar-11 Jun-11 Jun-10 2010 Mar-11 Jun-11 TRY Securities Portfolio(a) (%) CPI-li
Slide 10: Broad base growth in lending
H1 2011 Earnings Presentation Broad base growth in lending (TRY billion)(a) Total Loans 35.3% HALKBANK B. Sector (b) 16.5% YtD YtD 16.5% 17.9% 8.4% Fund Loans 3,3 QoQ QoQ 50.8 up 3.9% YtD 8.4% 9.8% 46.8 1.2 up 1.8% QoQ 43.6 1.2 4.6 Cooperative Loans TRY Loans 39.9 1.2 4.1 up 26.6% YtD HALKBANK B. Se
Slide 11: Well diversified loans across the segments
H1 2011 Earnings Presentation Well diversified loans across the segments Loans by Currency (TRY billion )(a) Loans by Types Funds 2% FX 10.8 12.0 14.2 15.2 28.8% 27.6% 30.3% 30.0% Cooperatives 9% Commercial 61% TRY 26.7 31.5 32.6 35.6 71.2% 72.4% 69.7% 70.0% Retail 28% Jun-10 2010 Mar-11 Jun-11 Mark
Slide 12: Selective and profitable growth in retail lending
H1 2011 Earnings Presentation Selective and profitable growth in retail lending (TRY billion)(a) 50.2% HALKBANK 22.6% YtD 11.2% 22.6% 13.9 QoQ 12.5 8.1 Consumer Loans 11.2% 11.4 7.3 up 23.4% YtD 10.2 6.6 up 11.0% QoQ 9.3 Share in total 58.1% 5.9 B. SECTOR (b) 5.2 YtD 18.8% QoQ Housing Loans 10.7% up
Slide 13: Sizeable growth in non-cash lending, a major contributor of fee income
H1 2011 Earnings Presentation Sizeable growth in non-cash lending, one of the major contributors of fee income Breakdown of Non-cash Loans (%)(a) Non-cash Loans (TRY billion )(a) (Jun-11 ) Bank Loans and Other 36.4% 4.2% 18.1% 13.2% Letters of 15.0 Letters of Credit Guarantee 13.3 25.9% 12.7 69.9% 1
Slide 14: Decrease in new NPL generation supported by solid collections
H1 2011 Earnings Presentation Decrease in new NPL generation supported by solid collections NPL Portfolio (TRY million) NPL Coverage (%) 1,704 1,718 1,758 1,713 1,655 83.0 82.8 83.3 84.4 84.0 Since 2002 593 577 570 568 537 Legacy NPLs 2001 and before Jun-10 Sep-10 2010 Mar-11 Jun-11 Jun-10 Sep-10 20
Slide 15: Upswing in asset quality continues
H1 2011 Earnings Presentation Upswing in asset quality continues Halkbank Sector (a,b) NPL / Total Loans (% )(a) Consumer Loans (%)(b) 4.4 4.3 4.6 4.3 3.8 3.7 4.3 3.5 3.1 4.1 2.8 3.7 3.1 3.2 2.1 1.9 1.7 2.9 1.5 1.3 Jun-10 Sep-10 2010 Mar-11 Jun-11 Jun-10 Sep-10 2010 Mar-11 Jun-11 SME Loans (%) Credi
Slide 16: Increasing share of demand deposits; 14.9%
H1 2011 Earnings Presentation Increasing share of demand deposits; 14.9% TRY Deposits by Types Total Deposits by Currency Demand Deposit (TRY billion)(a) (TRY billion)(a) (TRY billion)(a) Demand Deposits/Total Deposits 13.7 14.9 Other Inst. Deposits Public Sector 13.7% 12.0 Interbank Savings Commerc
Slide 17: Record high fee income generation; 15% QoQ growth
H1 2011 Earnings Presentation Record high fee income generation; 15% QoQ growth Net Fees & Commissions Income (TRY million) 33.4% 25.6% 15.0% 340 182 270 158 136 123 133 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Jun-10 Jun-11 Breakdown of Fees & Commissions Income Net Fees & Commissions Income/Total Operating R
Slide 18: Improved efficiency, despite considerable asset growth
H1 2011 Earnings Presentation Improved efficiency, despite considerable asset growth Operating Expenses (TRY million) Operating Expenses/Average Assets (%) 2.9% 2.2 2.2 2.2 2.2 2.1 428 414 425 359 374 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Jun-10 Sep-10 2010 Mar-11 Jun-11 Cost/Income (%) Breakdown of Operati
Slide 19: Unlike the sector, NIM remained flat
H1 2011 Earnings Presentation Unlike the sector, NIM remained flat Net Interest Income (TRY million) Breakdown of Interest Income 7.7% 72% on Loans 824 822 791 706 734 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 28% on Securities Interest Income (TRY million) NIM (%) On Securities On Loans YtD Quarterly 1,210 1,1
Slide 20: Cost-Yield-Spread - Quarterly
H1 2011 Earnings Presentation Cost-Yield-Spread(a) - Quarterly Cost of Deposits (%) Spreads (%) On Securities On Loans 5.5 5.6 5.5 5.1 5.2 6.4 5.7 5.6 5.2 5.0 4.4 4.5 4.0 2.4 3.1 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Yield on Loans (%)(b) Yield on Securities (%) 11.9 11.3 11.0
Slide 21: Net Income - Profitability Ratios
H1 2011 Earnings Presentation Net Income - Profitability Ratios Net Income (TRY million) ROE (%) YtD Quarterly -2.4% 34.2 31.7 520 476 500 525 512 30.5 32.8 27.9 27.4 28.1 27.5 27.9 26.3 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Jun-10 Sep-10 2010 Mar-11 Jun-11 Capital Ratios (%) ROA (%) CAR Tier 1 Ratio YtD Qu
Slide 22: Halkbank: Brief History
H1 2011 Earnings Presentation Halkbank: Brief History Halkbank was founded in 1933 as a credit union by small cooperatives and began its operations in 1938. Between the years 1938-1950 Halkbank provided its loans through public funds named as “People’s Fund”. Despite having been established by local
Slide 23: Branch Network – Human Resources
H1 2011 Earnings Presentation Branch Network – Human Resources > Branch network has been strengthened with 47 new branches opened in the H1 2011. The total figure climbs up to 752. > Headcount registered as 13,382 at the end of H1 2011. Total Branches(a) Human Resources 13,832 13,450 13,382 13,258 7
Slide 24: Balance Sheet
H1 2011 Earnings Presentation Balance Sheet In TRY million H1-10 2010 Q1-11 H1-11 QoQ YtD YoY Change % Change % Change % Cash and Balances Held with the Central Bank (a) 3,412 4,650 5,953 8,511 43 83 149 Banks & Money Market (b) 2,100 1,109 888 1,215 37 9 (42) Securities (b) 21,770 20,207 20,873 21,
Slide 25: Income Statement
H1 2011 Earnings Presentation Income Statement In TRY million H1-10 H1-11 YoY % Q4-10 Q1-11 Q2-11 QoQ % Interest Income 3,161 3,246 3 1,647 1,550 1,697 9 On Loans 2,038 2,337 15 1,139 1,127 1,210 7 On Securities 1,075 905 (16) 502 421 484 15 Interest Expense 1,497 1,721 15 825 816 906 11 On Deposits
Slide 26: 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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