Icbc Turkey Bank Anonim Sirketi · BIST:ICBCT

Icbc Turkey Bank Anonim Sirketi — ICBC Turkey Bank — FY2014 Earnings Presentation

19 slides from Icbc Turkey Bank Anonim Sirketi's earnings presentation, Dec 31, 2014

  1. Slide 1: Earnings Presentation December 31, 2014 / BRSA Bank-Only

    Earnings Presentation December 31, 2014 / BRSA Bank-Only 1

  2. Slide 2: Macroeconomic environment in 4Q 2014

    Macroeconomic environment in 4Q 2014...  Expectations converged towards a more dovish Fed, and a more intense monetary easing program from ECB  Turkish Central Bank preserved its tight policy and kept its policy rate at 8.25%, O/N borrowing and lending rates respectively at 7.5% and 11.25%  Growt

  3. Slide 3: Conservative policies continued in 4Q

    Conservative policies continued in 4Q Highlights of 4Q 2014:  Balance sheet contracted by 3.3%  Securities portfolio declined to 6% of assets  NPL increased modestly, despite higher collections  OPEX increased in y/y terms, atributable to moving of headquarter building to a rental  ICBC had sig

  4. Slide 4: Looking into 2015

    Looking into 2015 Macroeconomy Banking Sector Tekstilbank  Timing and magnitude of Fed’s  Loan growth around 17%, under  Tekstilbank will be continue to rate hikes will be crucial for all relatively better macroeconomic be in a transition period emerging markets, in addition to awaiting the final

  5. Slide 5: Balance sheet contracted by 3.3% in q/q terms

    Balance sheet contracted by 3.3% in q/q terms... Composition of Assets Total Assets (TLmn) CAGR 04-07: YoY: -5.0% 35% 3,849 3,782 3,699 3,545 3,656 15.6% -3.3% 15.5% 15.4% 15.7% 14.6% 2.0% 2.1% 1.1% 0.5% 4.3% 10.5% 11.7% 9.1% 5.9% 11.3% 2013 Mar 14 Jun 14 Sep 14 2014 74.7% 75.2% 72.0% 71.0% 71.8% Cu

  6. Slide 6: TL loans declined by 5.3%

    TL loans declined by 5.3% Total Cash Loans (TLmn) TL Cash Loans* (TLmn) YoY: -0.8% YoY: 9.7% 2,252 2,133 1,945 1,873 1,910 2,773 2,625 2,823 2,751 2,545 -5.3% Loans / Customer Deposits -2.6% 120% 120% 120% 117% 110% 2013 Mar 14 Jun 14 Sep 14 2014 2013 Mar 14 Jun 14 Sep 14 2014 Currency Breakdown of

  7. Slide 7: Higher TL deposits were suppressed by lower F/X deposits

    Higher TL deposits were supressed by lower F/X deposits, keeping the total amount intact Composition of Liabilities Total Deposits* (TLmn) TL Deposits* (TLmn) & SHE YoY: -7.2% YoY: 8.2% 2,526 2,344 2,344 1,357 2,193 2,120 1,254 1,247 3% 4% 3% 3% 5% 1,044 1,125 8.8% 16% 16% 18% 16% 17% 20% 15% 16% 18

  8. Slide 8: CAR advanced further to 19%

    CAR advanced further to 19% Capital Adequacy Ratio (CAR) Free Equity (TLmn) Free Equity / Equity 85.4% 84.4% 83.2% 82.3% 81.8% 18.9% 18.7% 17.6% 18.0% 17.4% 513 513 518 509 504 2013 Mar 14 Jun 14 Sep 14 2014 2013 Mar 14 Jun 14 Sep 14 2014 Free Equity: SHE-subsidiaries-property & equipment-intangible

  9. Slide 9: Cost of risk increased in the last quarter

    Cost of risk increased in the last quarter NPL Ratio NPL Ratio (including non-cash loans) Tekstilbank Market Average Tekstilbank Market Average 6.1% 5.4% 4.3% 4.2% 4.7% 5.1% 5.0% 3.6% 3.8% 3.4% 2.6% 2.7% 2.7% 2.8% 2.8% 2.0% 2.1% 2.1% 2.1% 2.1% 2013 Mar 14 Jun 14 Sep 14 2014 2013 Mar 14 Jun 14 Sep 14

  10. Slide 10: Corporate loans continued to be the main focus of Tekstilbank

    Corporate loans continued to be the main focus of Tekstilbank Breakdown of Loan Portfolio Breakdown of Retail Loans (TLmn) YoY: -0.2% 394 394 1.2% 1.2% 1.2% 1.0% 1.0% 373 8.1% 13.0% 356 364 12.8% 11.9% 13.3% 27 13.0% 35 33 31 28 236 200 196 187 184 85.8% 86.0% 87.1% 85.7% 85.8% 27 24 21 19 16 136 12

  11. Slide 11: Downtrend in non-cash loans prevailed in 4Q

    Downtrend in non-cash loans prevailed in 4Q Total Non-Cash Loans (TLmn) TL Non-Cash Loans (TLmn) Non-Cash / Cash Loans YoY: -30% YoY: -29% 1,211 582 1,121 1,054 985 473 472 443 850 415 -14% -6.3% 2013 Mar 14 Jun 14 Sep 14 2014 2013 Mar 14 Jun 14 Sep 14 2014 43.7% 42.7% 41.4% 34.9% Currency Breakdown

  12. Slide 12: Higher swap costs increased interest expense

    Higher swap costs increased interest expense Interest Income (TLmn) Composition of Interest Income 340 0.6% 1.5% 16% 292 11.0% 11.4% 5.0 Other 1.7 38.8 32.2 Securities 88.4% 87.1% Loans 295.9 258.4 2013 2014 2013 2014 Interest Expense (TLmn) Composition of Interest Expense 206 23% 6.8% 8.1% 167 16.8

  13. Slide 13: Banking income declined, hit by high base period effect

    Banking income declined, hit by the high base period effect of headquarter building sale in 2013 Banking Income (TLmn) Adjusted Net Interest Margin* (Quarterly) 216 -17% 180 63.5 16.5 17.7 23.6 4.7% 4.6% 4.1% 4.0% 3.8% 146.0 129.0 4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014 Other* Net Fees Adj.NII (by FX and

  14. Slide 14: OPEX was elevated by rent expense

    OPEX was elevated by rent expense, while personnel spending was broadly in line with inflation Operating Expenses (TLmn) Composition of Operating Expenses 127 14% 112 25.6% 23.1% 29.3 28.6 11.0% 14.6% 18.5 1.7% 3.1% 12.2 3.9 1.9 61.6% 59.2% 75.1 68.8 2013 2014 2013 2014 Personnel Depr.& Amort. Perso

  15. Slide 15: Summary Balance Sheet

    Summary Balance Sheet... Dec 2013 Mar 2014 Jun 2014 Sep 2014 Dec 2014 TL million Cash & Banks 526 476 400 432 507 Total Securities 403 417 416 344 216 Total Cash Loans 2,773 2,625 2,545 2,823 2,751 Fixed Assets & 41 49 59 58 65 Subsidiaries Other 106 132 125 125 117 Total Assets 3,849 3,699 3,545 3,

  16. Slide 16: Summary Income Statement

    Summary Income Statement... 1Q 2014 2Q 2014 3Q 2014 4Q 2014 2013 2014 TL million Interest Income 89.6 89.3 81.1 79.7 292.4 339.6 Loans 74.2 75.4 72.7 73.5 258.4 295.9 Securities 11.7 13.6 7.9 5.5 32.2 38.8 Other 3.7 0.3 0.5 0.6 1.7 5.0 Interest Expense 53.6 54.6 49.7 48.3 167.3 206.2 Deposits 34.9 3

  17. Slide 17: Summary Income Statement (Consolidated)

    Summary Income Statement (Consolidated)... 1Q 2014 2Q 2014 3Q 2014 4Q 2014 2013 2014 TL million Interest Income 90.4 90.2 82.2 80.8 295.4 343.6 Loans 74.8 75.9 73.4 74.2 260.8 298.3 Securities 11.7 13.7 7.9 5.6 32.2 38.9 Other 3.9 0.6 0.9 1.0 2.3 6,3 Interest Expense 53.6 54.5 49.7 48.3 167.3 206.1

  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

ICBC Turkey Bank — FY2014 Earnings Presentation on 6ix