Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR
Turkiye Is Bankasi Anonim Sirketi — Turkiye Is Bankasi A.S. — Q1 2012 Earnings Presentation
42 slides from Turkiye Is Bankasi Anonim Sirketi's earnings presentation, Mar 31, 2012
Slide 1: Isbank Investor Presentation 2012-Q1
ah ‘ ISBANK INVESTOR PRESENTATION 2012-Q1
Slide 2: Disclaimer
The information in this document has been obtained by Turkiye Is Bankasi A.S. (“Isbank”) from sources believed to be reliable, however, Isbank cannot guarantee the accuracy, completeness , or correctness of such information. This document has been issued for information purposes only. The financial
Slide 3: Agenda
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 Major Equity Participations 36 2
Slide 4: Financial Highlights
Financial Highlights 9 Retail Banking 31 Major Equity Participations 36 3
Slide 5: Isbank at a Glance: ownership and branch network
FreeFloat Free Float 31.18% Stocks are quoted at ISE and also traded at LSE in the form Ataturk Shares Isbank Pension Fund 28.09% of GDR 40.73% Largest stake owned by employees via pension fund 1,192 domestic branches country-wide (Largest among private banks), and 17 foreign branches 4,618
Slide 6: Main Business Lines
Main Business Lines... Banking Services Other Financial Services i — ee : — i EEE —- ee ae
Slide 7: Market Share and Rank
Market Share (%) Rank(2) 2012 Q1 Total Assets (1) 13.9 1st Loans(1) Total Loans 14.0 1st TRY Loans 12.8 1st FX Loans 16.9 2nd Consumer Loans(3) 11.6 1st Deposits(1) TRY Deposits 12.1 1st FX Deposits 16.3 1st Demand Deposits 15.3 1st Total Deposits 13.6 1st Retail Products(4) Volume of Debit Cards 13
Slide 8: Financial Highlights
Isbank at a Glance 5 Retail Banking 31 Major Equity Participations 36 7
Slide 9: Total Assets, Loans, Deposits, Equity
Total Assets (TRY mn.) Loans (TRY mn.) 91,621 93,038 161,669 162,584 131,796 64,232 113,223 97,552 47,610 48,335 2008 2009 2010 2011 2012 Q1 2008 2009 2010 2011 2012 Q1 Deposits (TRY mn.) Shareholders’ Equity (TRY mn.) 98,313 94,284 19,038 88,260 17,014 17,921 72,177 13,494 63,539 9,449 2008 2009 20
Slide 10: Asset Composition
(TRY mn.) 2011 2012 Q1 Change Asset Composition Cash & Banks 16,034 16,028 - Cash & Banks 10% 10% Securities (Net) 42,778 41,745 -2% 26% 26% Securities Loans 91,621 93,038 2% Participations (Net) 6,275 7,203 15% Loans Fixed Assets (Net) 1,983 1,941 -2% 57% 57% Participations Other Assets 2,978 2,629
Slide 11: Loan Portfolio
Loan Portfolio YtD (TRY mn.) Loans / Deposits 111.8% 98.7% 95.4% 105.5% 93.2% 90.6% 97.5% 91,621 93,038 93.1% 86.4% 81.1% 58,804 60,434 32,817 32,604 TRY FX * Total 2011 2012 Q1 Loans/Deposits Loans/Deposits* TRY Loans/TRY Deposits 2011 Q4 2012 Q1 * 5% increase in FX loans when adjusted for the chan
Slide 12: Total Loans: Retail and SME share
…51% comprised of retail Total Loans Consumer Loans (TRY mn.) and SME loans. 18,833 19,305 21% 21% Retail Loans General Purpose 7% 7% 28% 50% 50% Consumer Loans Auto Loans 22% 23% Consumer * Credit Cards 6% 6% Housing Loans SME** Retail Overdraft 50% 49% 42% 42% Corporate & Commercial 2% 2% 2011 201
Slide 13: NPL Ratio and Management of NPLs
NPL Ratio Management of NPLs 100% NPL provisioning since 2003… 0.2% 0.0% -0.2% -0.4% -0.3% 3.2% 2.8% 2.5% 483 487 2.1% 2.1% 205 236 172 182 190 146 149 36 -62 143 -64 TRY mn. -41 11 Q1 11 Q2 11 Q3 11 Q4 12 Q1 -4 11 Q1 11 Q2 11 Q3 11 Q4 12 Q1 Coverage Additions to NPLs Recoveries Net NPL Formation 11
Slide 14: NPL Ratio by Loan Categories
NPL Ratio by Loan Categories NPL Breakdown 5.2% 5.2% 2.1% 2.1% 94% 96% 97% 99% 98% 1.5% 1.5% Consumer* Credit Cards Total Loans 3% 6% 4% 1% 2% 2011 2012 Q1 2008 2009 2010 2011 2012 Q1 * Includes retail overdraft accounts. Restructured Other NPLs Performing Loan Groups 98.3% 1.7% I. Group Loans II. G
Slide 15: Breakdown of Securities Portfolio
Breakdown of Securities Portfolio Total Portfolio 42.8 41.7 FX Floating; TRY 5.6% Discount & 32.5 33.7 Fixed ; 35.6% TRY FX Discount Floating; & Fixed ; 10.3 45.1% 13.7% 5.5 8.1 4.5 2011 2012 Q1 TRY Securities (TRY bn.) FX Securities (TRY bn.) FX Securities * (USD bn.) Total Securities (TRY bn.) 70
Slide 16: Liabilities Composition
(TRY mn.) 2011 2012 Q1 Change Liabilities Composition Deposits 98,313 94,284 -4% 11% 12% Equity REPOs & Money Market 19,461 23,177 19% 7% 7% Funds Borrowed* 14,930 14,282 -4% Other 9% 9% Other 11,044 11,803 7% 12% 14% Funds Equity 17,921 19,038 6% Borrowed* Total Liabilities 161,669 162,584 1% REPOs
Slide 17: Deposit Base
... a clear indicator of customer trust. Deposit Base 98.3 94.3 88.3 59.6 60.3 54.1 38.0 40.2 62% 28.7 68% 20.2 22.6 18.6 62% 64% 2010 2011 2012 Q1 TRY Deposits (TRY bn.) FX Deposits (TRY bn.) FX Deposits * (USD bn.) Total Deposits (TRY bn.) * USD equivalent. 16
Slide 18: Deposits and Market Shares
Deposits YtD (TRY mn.) Market Shares 98,313 94,284 16.3% 15.7% 13.4% 14.2% 13.6% 60,332 54,067 12.1% 37,981 40,217 2011 2012 Q1 TRY FX * Total 2011 Q4 2012 Q1 TRY Deposits FX Deposits Total Deposits * 12% increase in FX deposits when adjusted for the change in exchange rate. Deposits YoY (TRY mn.) L
Slide 19: Demand Deposits and Cost of Funding
…make significant contribution to lower cost of Demand Deposits (TRY mn.) Share of Demand Deposits in Total Deposits funding. 2012 Q1 18,627 17,166 14,469 55% 53% 11,259 81.8% 8,788 64% 60% 18.2% 54% 45% 47% 40% 36% 46% Demand Deposits Other Deposits 2008 2009 2010 2011 2012 Q1 TRY FX 18
Slide 20: Client Assets of TRY 141 Billion
... has reached a remarkable Client Assets (TRY mn.) No. Of Investment Accounts (000) total of TRY 141 billion. 141,481 141,372 133,835 10,062 10,166 8,838 On-Balance Sheet 107,320 90,617 7,498 67% 6,158 69% 66% 67% 70% 13% 9% 11% 14% Off-Balance Sheet 14% 6% 6% 2008 2009 2010 2011 2012 Q1 5% 11% 5%
Slide 21: Capital Adequacy
Capital Adequacy Regulatory Capital (TRY mn.) CAR supports balance sheet growth going forward… 19,263 18,643 18,252 17,935 17,207 17,183 17,056 16,319 15,925 16.6% 15,102 16.1% 14.7% 14.6% 14.3% 14.1% 13.9% 13.1% 13.0% 12.4% 11 Q1 11 Q2 11 Q3 11 Q4 12 Q1 11 Q1 11 Q2 11 Q3 11 Q4 12 Q1 CAR Tier I Rati
Slide 22: Operating Income Composition QoQ
Change (TRY mn.) 2011 Q4 2012 Q1 QoQ Operating Income Composition Net Interest Income 1,315 1,312 - Net Fees & Commissions 403 370 -8% NII Net Trading Gains/Losses 279 82 -71% 56% 62% Dividends Received 0 95 +++ Net Commissions Released Provisions 313 229 -27% 17% Other Income Gains on Asset Sales 9
Slide 23: Operating Income Composition YoY
Change (TRY mn.) 2011 Q1 2012 Q1 YoY Operating Income Composition Net Interest Income 1,118 1,312 17% Net Fees & Commissions 304 370 22% NII Net Trading Gains/Losses 99 82 -17% 57% 62% Dividends Received 100 95 -5% Net Commissions Released Provisions 288 229 -20% 16% 17% Net Trading Gains on Asset S
Slide 24: Fees and Commissions Received
... supported by superior Fees and Commissions Received (Gross) Gross Commission Income (TRY mn.) retail and corporate franchise. (TRY thousand) 2011 Q1 2012 Q1 Change 422 Non-Cash Loans 29,817 41,119 38% 342 Credit Appraisal 15,672 57,619 268% Mutual Fund Man. & Other Inv. 72,447 33,838 -53% Acc. F
Slide 25: Net Interest Margin
NIM Adj. NIM * 4.28% 4.84% 3.85% 3.90% 4.40% 3.50% 3.83% 3.48% 2011 2012 Q1 2011 2012 Q1 includes reserves at Central Bank excludes reserves at Central Bank includes reserves at Central Bank excludes reserves at Central Bank * Adjusted for Securities Trading Gains / Losses and Foreign Exchange Gains
Slide 26: Cost / Income
Cost / Income Cost vs. Income (TRY mn.) 45.2% 40.6% 42.6% 40.0% 2,126 1,954 34.0% 794 850 2011 Q1 2012 Q1 2008 2009 2010 2011 2012 Q1 Cost Income Cost vs. Assets Cost Structure 7%7% 8% Other 4% 2.6% 7% 7% 2.3% 2.3% 32% SDIF Fees 2.1% 30% Depreciation 49% 49% Administrative Expenses 2011 Q1 2012 Q1 2
Slide 27: ROAE and ROAA
ROAE* ROAA* 28.9% 28.6% 2.4% 2.3% 2.2% 2.1% 21.6% 21.5% 21.0% 20.3% 1.8% 19.9% 1.7% 1.7% 1.6% 1.5% 1.5% 15.6% 15.3% 15.2% 2008 2009 2010 2011 2012 Q1 2008 2009 2010 2011 2012 Q1 ROAE ROAE** ROAA ROAA** * Calculations are based on each quarters’ average in the relevant year. ** Banking business (Excl
Slide 28: Market Cap Comparison and Earnings & Payout Ratio
Market Cap. Comparison (TRY mn.) Earnings & Payout Ratio 32.7% 32.1% 36.1% 34.6% 23.2% 23.2% 20.3% 32.4%** 24,836 19,450 19,832 2,982 14,963 2,667 2,372 11,342 1,702 1,509 1,109 956 2008 2009 2010 2011 2012 Q1 Isbank is included in the following indices: 635 • ISE-100 2004 2005 2006 2007 2008 2009 2
Slide 29: Credit Ratings
Rating Outlook Rating Outlook Global Scale Long Term FC IDR BBB- Stable Long Term Counter Party Credit BB Stable Long Term LC IDR BBB- Stable Long Term Certificate of Deposits BB - Short Term FC IDR F3 - Short Term Counter Party Credit B - Short Term LC IDR F3 - Short Term Certificate of Deposits B
Slide 30: Retail Banking
Isbank at a Glance 5 Financial Highlights 9 Major Equity Participations 36 29
Slide 31: Credit Cards
28 different products for different customer segments 198,083 Maximum Sales Points and 267,214 chains are included in loyalty programme. The number of cards reached 8.7 million, 5.8 million of which are issued to Bank’s own customers. The first bank in Turkey which has made an agreement with the wor
Slide 32: Market leader in mutual fund business
Isbank is the market leader in mutual fund business. 31
Slide 33: Mutual Funds
... 36 types of mutual funds Mutual Funds (TRY mn.) Number of Investors designed for different risk appetites. 6,776 7,090 801,402 810,052 6,430 6,340 693,003 646,754 5,165 590,000 2008 2009 2010 2011 2012 Q1 2008 2009 2010 2011 2012 Q1 Income From Funds (TRY mn.) With 8 equity (A type), 28 fixed in
Slide 34: Payroll Accounts and Automated Bill Payments
... supported by payroll accounts and bill payment Payroll Accounts Automated Bill Payments agreements. 5,945 5,230 5,262 4,934 5,460,790 5,095,266 2011 Q1 2012 Q1 2011 Q1 2012 Q1 Amount (TRY million) Amount (TRY million) Number of Active Payments Number of payroll accounts is 1,150,999 as of 31.03.
Slide 35: Major Equity Participations
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 34
Slide 36: One of the biggest conglomerates in Turkey
...as one of the biggest conglomerates in Turkey. 35
Slide 37: Sectoral Breakdown of Participations
Sectoral Breakdown Financial Non-Financial 40.7% 59.3% Telecom Other 10.8% 7.3% Banks Glass 14.1% 41.2% Non-financial Financial Insurance 16.3% Financial Ins. TRY 4.8 billion 10.3% Non - Listed 28.4% Listed 71.6% As of 31 March 2012, Isbank has 22 participations. TRY 4.8 Since the end of 2002, a tot
Slide 38: Sisecam General Information
Isbank (68%) General Information Market/Production Shares (%) * A leading flat glass, glassware, glass packaging, glass Turkey Europe2,3 World3 fibre, soda ash and chromium chemicals producer in the Flat Glass 71.0 13.4 3.8 domestic market. Backed by its vision, Şişecam expands its production Gl
Slide 39: Sisecam production facilities
The Group obtains efficiency and spreads its operational risk by positioning its production facilities in the fast growing neighbouring countries. * Flat Glass Glassware Glass Packaging Chemicals and Mining * Flat glass investment in Russian Federation is planning to be completed by 2013. 38
Slide 40: Avea
İşbank* 10.0035% Turk Telekom 89.9965% Avea has been created through the merger of Aria and Aycell in February 2004. After the merger, due to the integration of 2 GSM networks, not only the coverage and efficiency have increased significantly, but also substantial operational synergies have been cre
Slide 41: Financial subsidiaries and participations
Assets Shareholders’ Market Field of Risk Bank’s Direct Equity (USD 000) Share (%) Company Name Group (USD 000) Basis for Market Share Activity Share(%) Share (%) (3) (3) (3) Türkiye Sınai Kalkınma Bankası A.Ş. Investment Bank 40.52 50.00 5,029,735(4) 726,468(4) 22.7 Total Assets İşbank GmbH Banking
Slide 42: Investor Relations contacts
Süleyman H. Özcan Head of Investor Relations Division Phone : + 90 212 316 16 02 E-mail : suleyman.ozcan@isbank.com.tr Alper Turgal Assistant Manager of Investor Relations Division Phone : + 90 212 316 16 10 -316 95 42 E-mail : alper.turgal@isbank.com.tr
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