Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — Q3 2014 Earnings Presentation

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

  1. Slide 1: Q3 2014 Earnings Presentation

    BRSA Bank Only Q3 2014 Earnings Presentation

  2. Slide 2: Macro Outlook

    Q3 2014 Earnings Presentation Macro Outlook > The FED ended its unprecedented quantitative easing program in Oct-14 > CBRT cut upper end of interest rate corridor by 75 bps to 11.25% while as expected, ceasing the final tranche of USD 15 bn. “Considerable preserving one week repo rate at 8.25%. peri

  3. Slide 3: Banking Sector Overview

    Q3 2014 Earnings Presentation Banking Sector Overview > Total loans grew by 5.6% QoQ whereas deposit growth > Aug-14 cumulative NIM remained flat at 4.1%. was slightly below loan growth at 5.1%. > Cumulative RoE and RoA at 12.1% and 1.4%, > Retail loans up by a moderate 2.5% QoQ, auto loans and resp

  4. Slide 4: September 2014 Highlights

    Q3 2014 Earnings Presentation September 2014 Highlights > Cumulative net income reached TRY 1,764 mn. Quarterly > Effective usage of CBRT repo funding continued, volume net income at TRY 601 mn, up 3.4% YoY. at TRY 7.6 bn. > YtD RoE at 15.8% and RoA at 1.6%. > L/D ratio decreased to 94.7% in contras

  5. Slide 5: Net income up 3.4% YoY, above sector average RoE

    Q3 2014 Earnings Presentation Net income up 3.4% YoY, above sector average RoE Net Income (TRY million) 3.4% 741 -4.9% 632 601 582 530 YoY Change (%) > 13.5% Net Interest Income > 5.2% Net Fees & Commissions > 11.1% Total Operating Income > 3.4% Net Income Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 RoE (%) RoA (

  6. Slide 6: TRY driven asset growth

    Q3 2014 Earnings Presentation TRY driven asset growth Asset Growth IEA Securities YoY 16.6% YtD 7.0% 82.6% Portion 18.5% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 16.6% Loans Cash & CBRT 7.0% Securities Other Assets 4.2% 81.8% 81.3% 82.2% 83.3% 82.6% 149.8 145.5 143.8 FX

  7. Slide 7: Stable composition of securities portfolio

    Q3 2014 Earnings Presentation Stable composition of securities portfolio Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 20.4 20.6 19.4 18.5 19.1 CPI-Linked (TRY 8.9 bn) 28.6 29.9 27.9 27.7 32.3% 24.5 3.3 12% 3.6 12% 3.7 13% 4.0 14% FX 2.5 10% Fixe

  8. Slide 8: Growth in TRY loans 4.7% QoQ

    Q3 2014 Earnings Presentation Growth in TRY loans 4.7% QoQ (TRY billion)(a) 12.0% 3.3% Total Loans 93.4 HALKBANK B. Sector(b) 90.4 1.1 YtD YtD 87.2 5.9 Commercial Loans 12.0% 13.2% 83.4 1.1 1.1 QoQ QoQ 78.9 1.1 6.1 5.0 YtD 1.1% 3.3% 5.6% 5.8 QoQ 15.6% 1.1 5.5 24.9 Corporate Loans TRY Loans 24.5 24.8

  9. Slide 9: TRY heavy loan book

    Q3 2014 Earnings Presentation TRY heavy loan book Loans by Currency (%)(a) Interest Structure (%)(a) SME 6.0% Commercial 2.7% Fixed Corporate 18.0% 46.3% TRY 73.4% FX Floating 26.6% 53.7% Sectoral Breakdown of Loans (%)(a) Loans by Customer Segmentation (%)(a) Other 6% Tourism 3% Corporate 27% Texti

  10. Slide 10: Retail loan growth in line with sector average

    Q3 2014 Earnings Presentation Retail loan growth in line with sector average (TRY billion)(a) 4.5% 2.6% HALKBANK 24.5 23.5 23.5 23.9 YtD 22.6 4.5% QoQ 11.7 2.6% 11.2 11.3 Consumer Loans 11.6 11.5 YtD 0.7% QoQ 3.1% B. SECTOR(b) Share in total 47.6% YtD 4.6% QoQ Housing Loans 2.5% 9.1 9.4 9.7 9.9 YtD

  11. Slide 11: Increasing visibility in credit cards

    Q3 2014 Earnings Presentation Increasing visibility in credit cards # of Credit Cards (Thousand) # of POS (Thousand) Credit Risk Balance (TRY Million) 2,680 2,776 2,811 # of Merchants (Thousand) 217 2,633 206 212 2,328 256 3,328 3,362 248 3,235 3,249 3,316 131 137 240 163 143 Sep-13 Dec-13 Mar-14 Ju

  12. Slide 12: One-off big ticket loan in NPL

    Q3 2014 Earnings Presentation One-off big ticket loan in NPL NPL Portfolio (TRY million) NPL Coverage (%) 3,667 2,425 2,493 81.5 80.6 77.4 78.4 2,134 2,245 1,076 One off big ticket loan 59.3 Sep-13 2013 Mar-14 Jun-14 Sep-14 Sep-13 2013 Mar-14 Jun-14 Sep-14 Loans under Close Watch (TRY million) NPL/T

  13. Slide 13: NPL ratio by segments

    Q3 2014 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a,b) Corporate - Commercial (%) (a) Consumer Loans (%) (b) 5.2 3.8 3.6 3.2 3.2 3.0 2.5 2.4 2.4 2.3 2.0 2.2 1.9 2.0 1.8 1.8 1.5 1.7 2.0 2.1 2.1(c) Sep-13 2013 Mar-14 Jun-14 Sep-14 Sep-13 2013 Mar-14 Jun-14 Sep-14 SME Loans (

  14. Slide 14: CoR at 84 bps

    Q3 2014 Earnings Presentation CoR at 84 bps Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 144 110(c) 84 82 84 70 70 70 52 64 56 70 70 58 49 Sep-13 2013 Mar-14 Jun-14 Sep-14 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (bps) (Specific Provisions-Pr

  15. Slide 15: Sustainable comfort in LDR, improved to 94.7%

    Q3 2014 Earnings Presentation Sustainable comfort in LDR, improved to 94.7% IBL 84.7%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 84.4% 85.3% 85.0% 84.1% 84.7% Funds Borrowed Securities Issued Interbank Money Market Shareholders’

  16. Slide 16: Solid deposits, volume at historical high

    Q3 2014 Earnings Presentation Solid deposits, volume at historical high HALKBANK B. Sector(b) FX Dep. YtD -0.2% 13.3% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 1.2% 9.7% in USD YtD -5.9% 6.8% Total Dep. YtD 0.7% 8.6% TRY Dep. YtD 1.2% 5.6% terms QoQ -5.6% 2.4% QoQ 8.1% 5.1% QoQ 12.3% 2.2% Tota

  17. Slide 17: Cost effective deposit growth, TRY deposit cost improved by 140 bps

    Q3 2014 Earnings Presentation Cost effective deposit growth, TRY deposit cost improved by 140 bps Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 19.1% 18.2% 83.1% 83.9% 17.7% 16.9% 82.3% 80.9

  18. Slide 18: Cost – Yield – Spread

    Q3 2014 Earnings Presentation Cost – Yield – Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 5.7 5.3 4.3 4.8 4.8 5.1 5.0 4.9 4.7 4.6 4.6 4.3 3.9 4.1 3.3 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Yield on Loans (%)(b) Yield on Securities (%) 10.0 10.4 9.6 9.9 9.8 9

  19. Slide 19: Well-defended NIM improving quarterly 20 bps

    Q3 2014 Earnings Presentation Well-defended NIM improving quarterly 20 bps Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses 13.5% 1,227 1,309 24% on Securities 1,162 1,153 1,229 2,734 2,920 2,814 2,552 2,261 (1,108) (1,323) 76% on Loans (1,572) (1,

  20. Slide 20: Quarterly increase in net fees and commissions continues

    Q3 2014 Earnings Presentation Quarterly increase in net fees and commissions continues Net Fees & Commissions Income (TRY million) 5.0% 251 720 245 247 238 222 685 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Sep-13 Sep-14 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenues (%) Retail B

  21. Slide 21: C/I ratio improving further after peaking

    Q3 2014 Earnings Presentation C/I ratio improving further after peaking Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 12.1% 8.7% 2,194 1,958 2,128 748 757 2.2 2.1 2.0 2.0 2.0 689 Q1-14 Q2-14 Q3-14 Sep-13 Sep-14 (a) Sep-14 Sep-13 2013 Mar-14 Jun-14 Sep-14 Cost/Income (%) Br

  22. Slide 22: Solvency Ratios

    Q3 2014 Earnings Presentation Solvency Ratios CAR (%) Tier-1 CAR Basel – II Basel – III +53 bps -28 bps 14.4 -50 bps 14.0 13.9 13.9 14.39 13.6 Net Currency -12 bps -12 bps -19 bps 13.4 Income -19 bps Loan NPL 12.7 12.7 12.9 12.7 Growth Reversal +4 bps 13.56 of Free Market Provisions Risk AFS Rev. Ot

  23. Slide 23: Branch Network - Human Resources

    Q3 2014 Earnings Presentation Branch Network - Human Resources > 14 new branches opened YtD. > Total branch number reached 886. Loans-Deposits-Employee per Branches Utilization of Banking Distribution Channels (%) Deposits/Branches (TRY mn) Loans/Branches (TRY mn) Employees/Branches Automatic Paymen

  24. Slide 24: Balance Sheet

    Q3 2014 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million Sep-13 2013 Jun-14 Sep-14 Change% Change% Change% Cash and Balances Held with the Central Bank(a) 17,333 19,976 17,413 19,253 10.6 (3.6) 11.1 Banks & Money Market (b) 1,893 1,849 1,077 1,457 35.3 (21.2) (23.0) Securities (b) 24,4

  25. Slide 25: Income Statement

    Q3 2014 Earnings Presentation Income Statement YoY QoQ YoY Change Change Change In TRY million Sep-13 Sep-14 % Q3-13 Q1-14 Q2-14 Q3-14 % % Interest Income 6,653 8,467 27.3 2,261 2,734 2,920 2,814 (3.6) 24.4 On Loans 5,232 6,418 22.7 1,783 2,017 2,158 2,242 3.9 25.7 On Securities 1,409 2,037 44.6 474

  26. 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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