Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — H1 2023 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2023

  1. Slide 1: H1 2023 Earnings Presentation

    H1 2023 Earnings Presentation DISTINGUIS H ED PROFIT A BLE RESI L IENT RIS K CONSCIOUS RELIA B LE SUST A INABLE NATIO N WIDE MAR K ETMAKER BRSA Bank Only

  2. Slide 2: Slide 2

  3. Slide 3: Asset Growth

    H1 2023 Earnings Presentation Solid FX liquid assets backed by FX swaps > FX LCR is at 276%, well above the regulatory limit of 80%. Asset Mix (%) Asset Growth Loans Securities Bank Placements CBRT Receivables Cash YoY 78.9% QoQ 20.5% Liq. Assets Other Assets Total Asset Growth (TRY billion) 59.6% 9

  4. Slide 4: Notable gains on CPI-linkers

    H1 2023 Earnings Presentation Notable gains on CPI-linkers Total Securities Portfolio (TRY billion) Securities Classification (TRY billion)(*) Total Securities / Total Assets (%) Fixed Rate (FX) Other Floating Rate CPI Linkers Fixed Rate (TRY) 26.9 27.1 25.3 340.2 398.3 267.1 310.5 438.9 26.8 27.5 4

  5. Slide 5: Strong loan growth on the selective segments

    H1 2023 Earnings Presentation Strong loan growth on the selective segments, CGF Utilisation (TRY bn) Mar-23 Jun-23 Current loan amount 48.3 78.1 SME loans grew by 21.5% QoQ (TRY billion)(a) 86.0% Total Loans 21.4% HALKBANK B. Sector(b) YoY YoY 86.0% 59.4 % 1,176.4 QoQ QoQ 21.4% 17.5 % 969.3 Business

  6. Slide 6: TRY and SME dominated loan portfolio

    H1 2023 Earnings Presentation TRY and SME dominated loan portfolio Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 3% SME 6% FX SME 50% Commercial 2% 19.9% Corporate 33% Corporate 92% TRY 80.1% CGF 10% Retail 14% Cooperative 36%(b) Sectoral Breakdown of Loans (%) Retail Loa

  7. Slide 7: NPL coverage reached up to 83.2% albeit limited NPL inflow

    H1 2023 Earnings Presentation NPL coverage reached up to 83.2% albeit limited NPL inflow NPL Portfolio (TRY million) NPL Coverage (%) 19,014 18,594 17,820 17,911 79.5 81.5 82.6 83.2 18,332 73.6 Jun-22 Sep-22 2022 Mar-23 Jun-23 Jun-22 Sep-22 2022 Mar-23 Jun-23 Loans under Close Watch (TRY million) NP

  8. Slide 8: NPL ratio by segments

    H1 2023 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (*) Corporate - Commercial (%) Consumer Loans (%) 4.2 4.1 3.8 3.2 3.5 3.5 2.8 3.1 2.0 2.8 2.8 1.8 1.8 1.7 1.6 1.8 1.8 1.6 1.5 1.3 Jun-22 Sep-22 2022 Mar-23 Jun-23 Jun-22 Sep-22 2022 Mar-23 Jun-23 SME Loans (%) Credit Cards (

  9. Slide 9: Total loan coverage stays at a comfortable level of 4.2%

    H1 2023 Earnings Presentation Total loan coverage stays at a comfortable level of 4.2% Provisions and Reversals (TRY million) Net Cost of Risk (bps) (Cumulative) Total Specific Quarterly 487 510 (TRY million) Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 315 S1 Provisions 2,154 6,404 3,217 323 -296 S2 Provisions 3,

  10. Slide 10: Loan to deposit ratio maintains a comfortable level of 79.3%

    H1 2023 Earnings Presentation Loan to deposit ratio maintains a comfortable level of 79.3% Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D 88.3% 87.8% 87.2% 86.0% 88.6% Deposits Marketable Funds Borrowed Securities Issued Interbank Money Market Shareholders

  11. Slide 11: Solid TRY deposit growth, up by 12.3% QoQ

    8 -6.36 3 H1 2023 Earnings Presentation Solid TRY deposit growth, up by 12.3% QoQ HALKBANK B. Sector(b) YoY 62.8% 32.3 % HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 30.7% 25.8 % YoY 103.1% 71.7 % YoY 146.6% 124.7 % in USD YoY 4.2% -15.3 % QoQ 19.3% 18.2 % QoQ 12.3% 12.9 % terms QoQ -3.6% -7.3 %

  12. Slide 12: TRY deposits protected a 58% share within the total deposits

    H1 2023 Earnings Presentation TRY deposits protected a 58% share within the total deposits Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%)(b) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 24.5% 23.0% 23.1% 23.5% 21.8% 75.5% 77.0% 76.9% 7

  13. Slide 13: Cost – Yield – Spread

    H1 2023 Earnings Presentation Cost – Yield – Spread Blended Cost - Yield - Spread (%) Spreads (%) Yield on Loans Cost of Deposits(*) Spread TRY Core FX Core Blended Core 5.4 4.8 5.0 4.0 5.2 4.9 3.4 12.8 13.3 13.4 12.6 13.2 4.2 2.4 5.2 4.8 5.0 2.4 -0.1 0.9 1.3 -0.1 0.6 (7.5) (8.5) (8.4) (10.2) (13.4)

  14. Slide 14: Significant performance in F&C, up by 128% YoY

    H1 2023 Earnings Presentation Significant performance in F&C, up by 128% YoY Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly Swap adj. (QoQ) Swap adj. (YtD) 9.6 8.6 5.8 5.2 23,363 23,428 15,887 4,837 7.0 7.4 12,388 5.3 5.2 3.1 9.0 7.8 6.3 6.8 31,619 47,196 4

  15. Slide 15: Details of profitability metrics

    H1 2023 Earnings Presentation Details of profitability metrics Total Operating Revenues (TRY million)(a) Q2-23 Revenue Walk (TRY million) 3,023 25,643 25,009 4,209 21,091 (1,077) 4,837 13,703 12,711 699 (9,923) (370) NII Net F&C Income Net Trading Income Total Provisions Net Income (Q2-23) Other (b)

  16. Slide 16: Disciplined OPEX management, down by 35.5% QoQ

    H1 2023 Earnings Presentation Disciplined OPEX management, down by 35.5% QoQ Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 162.4% 35.5% 4.14 15,375 TRY 7 bn 3.05 Earthquake Donation 9,923 1.72 1.74 5,734 1.48 5,016 3,781 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q2-22 Q3-22 Q4-22 Q1-2

  17. Slide 17: Solvency Ratios

    H1 2023 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Details on Capital Ratio Cons. Basel III Uncons. Basel III (TRY mn) Jun-23 Jun-23 15.2 Credit Risk Base Amount (CRBA) 1,092,254 1,055,541 14.7 14.3 14.7 Market Risk Base Amount (MRBA) 44,463 43,088 13.7 Operati

  18. Slide 18: Consecutive increase on the total number of Active Digital Customers, up by 24% YoY

    H1 2023 Earnings Presentation Consecutive increase on the total number of Active Digital Customers, up by 24% YoY Active Digital Customers by Types (Million) # of Total Active Digital Customers(a) 24% 6.0 5.8 5.5 5.2 4.9 # of active digital banking customers increased 24% YoY and reached 6 million J

  19. Slide 19: Branch Network – Human Resources

    H1 2023 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branches Deposits/Branches ATM 15% Automatic Payment 3% 1,440.3 Call Center 5% Branch 2% 1,217.1 Internet Banking 5% 1,028.0 879.3 1,101.3 726.7 910.

  20. Slide 20: Annex

    H1 2023 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) H1-22 H1-23 Total Assets 1,949,743 10.2 Loan Growth (YtD, %) 28.1 32.0 Loans (a) 1,176,376 11.8 Deposit Growth (YtD, %)(c) 28.8 32.1 TRY Loans 942,115 14.1 LDR (%) 90.4 83.2 FC Loans 234,261 7.1 NPL (

  21. Slide 21: Balance Sheet

    H1 2023 Earnings Presentation Balance Sheet In TRY million H1-22 2022 Mar-23 H1-23 QoQ (%) YtD (%) YoY (%) Cash and Balances Held with the Central Bank(a) 122,063 158,994 153,081 192,165 25.5 20.9 57.4 Banks & Money Market(b) 9,147 7,177 8,393 11,065 31.8 54.2 21.0 Securities(b) 291,989 374,181 439,

  22. Slide 22: Income Statement

    H1 2023 Earnings Presentation Income Statement In TRY million H1-22 H1-23 YoY (%) Q2-22 Q1-23 Q2-23 QoQ (%) YoY (%) Interest Income 58,041 105,604 81.9 31,619 48,859 56,745 16.1 79.5 On Loans 36,286 63,935 76.2 19,410 27,966 35,968 28.6 85.3 On Securities 21,152 41,040 94.0 11,966 20,554 20,487 (0.3

  23. Slide 23: Slide 23

  24. Slide 24: For further information please contact halkbank.IR@halkbank.com.tr

    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

Türkiye Halk Bankası A.S. — H1 2023 Earnings Presentation on 6ix