Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR
Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — H1 2012 Earnings Presentation
42 slides from Turkiye Is Bankasi Anonim Sirketi's earnings presentation, Jun 30, 2012
Slide 1: Isbank Investor Presentation 2012-H1
‘ ISBANK INVESTOR PRESENTATION 2012-H1
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: Isbank at a Glance
Financial Highlights 9 Retail Banking 31 Major Equity Participations 36 3
Slide 5: Free Float 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 1,197 domestic branches country-wide (Largest among private banks), and 17 foreign branches 4,641
Slide 6: Main Business Lines
Main Business Lines ... Banking Services Other Financial Services
Slide 7: Market Share and Rank
Market Share (%) Rank(2) 2012 H1 Total Assets (1) 13.7 1st Loans(1) Total Loans 14.0 1st TRY Loans 13.2 1st FX Loans 16.2 2nd Consumer Loans(3) 11.8 1st Deposits(1) TRY Deposits 12.6 1st FX Deposits 16.0 1st Demand Deposits 15.2 1st Total Deposits 13.8 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.) 98,222 165,608 91,621 161,669 131,796 64,232 113,223 97,552 47,610 48,335 2008 2009 2010 2011 2012 H1 2008 2009 2010 2011 2012 H1 Deposits (TRY mn.) Shareholders’ Equity (TRY mn.) 98,313 99,433 19,761 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 H1 Change Asset Composition Cash & Banks 16,034 15,477 -3% 9% Cash & Banks 10% Securities (Net) 42,778 40,389 -6% 24% 26% Securities Loans 91,621 98,222 7% Participations (Net) 6,275 6,980 11% Loans Fixed Assets (Net) 1,983 1,927 -3% 57% 59% Participations Other Assets 2,977 2,61
Slide 11: Loan Portfolio
Loan Portfolio QoQ (TRY mn.) Loans / Deposits 114,2 106.4 98.8%94.7% % 93.2% 90.6% 97.5% 93.1% % 86.4% 93,038 98,222 77.2% 60,434 66,253 32,604 31,969 TRY FX * Total 2011 2012 Q2 2012 Q1 2012 Q2 Loans / Deposits Loans / Deposits* TL Loans / TL Deposits * 3% decrease in FX loans when adjusted for the
Slide 12: Loans Composition: Retail and SME
…51% comprised of retail Total Loans Consumer Loans (TRY mn.) and SME loans. 18,833 20,464 21% 21% Retail Loans General Purpose 7% 29% 50% 51% Consumer Loans 8% Auto Loans 22% 22% Consumer * Credit Cards 6% 6% Housing Loans SME** Retail Overdraft 51% 49% 42% 42% Corporate & Commercial 1% 1% 2011 201
Slide 13: NPL Ratio and Management of NPLs
NPL Ratio Management of NPLs 100% NPL provisioning since 2003… 0.2% 0.1% 0.0% -0.2% -0.4% 2.8% 2.5% 483 487 2.1% 2.1% 1.9% 192 190 221 143 205 182 36 -41 -4 149 146 29 -62 TRY mn. 11 Q2 11 Q3 11 Q4 12 Q1 12 Q2 11 Q2 11 Q3 11 Q4 12 Q1 12 Q2 Coverage Additions to NPLs Recoveries Net NPL Formation 118.
Slide 14: NPL Breakdown and Performing Loan Groups
NPL Ratio by Loan Categories NPL Breakdown 5.2% 4.4% 2.1% 1.9% 94% 96% 97% 99% 98% 1.5% 1.3% Consumer* Credit Cards Total Loans 3% 6% 4% 1% 2% 2011 2012 H1 2008 2009 2010 2011 2012 H1 * Includes retail overdraft accounts. Restructured Other NPLs Performing Loan Groups 98.2% 1.8% I. Group Loans II. G
Slide 15: Breakdown of Securities Portfolio
Breakdown of Securities Portfolio Total Portfolio 42.8 40.4 FX Floating; TRY 4.3% Discount & 32.5 33.2 Fixed ; 34.1% TRY Floating; FX Discount 48.2% & Fixed ; 10.3 13.5% 5.5 7.2 4.0 2011 2012 H1 TRY Securities (TRY bn.) FX Securities (TRY bn.) FX Securities * (USD bn.) Total Securities (TRY bn.) 69
Slide 16: Liabilities Composition
(TRY mn.) 2011 2012 H1 Change Liabilities Composition Deposits 98,313 99,433 1% 11% 12% Equity REPOs & Money Market 19,461 18,230 -6% 7% 7% Funds Borrowed* 14,930 16,512 11% Other 9% 10% Other 11,043 11,673 6% 12% 11% Funds Equity 17,921 19,761 10% Borrowed* Total Liabilities 161,669 165,608 2% REPO
Slide 17: Deposit Base
... a clear indicator of customer trust. Deposit Base 98.3 99.4 88.3 59.6 60.3 58.0 38.0 41.4 62% 28.7 68% 20.2 23.0 18.6 62% 64% 2010 2011 2012 H1 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 QoQ (TRY mn.) Market Shares 94,284 99,433 15.7% 16.0% 13.4% 14.2% 13.8% 12.6% 54,067 58,019 40,217 41,414 2011 2012 H1 TRY FX * Total 2012 Q1 2012 Q2 TRY Deposits FX Deposits Total Deposits * 2% increase in FX deposits when adjusted for the change in exchange rate. Deposits YtD (TRY mn.) La
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 H1 18,627 18,530 14,469 55% 54% 11,259 81.4% 8,788 64% 60% 18.6% 54% 45% 46% 40% 36% 46% Demand Deposits Other Deposits 2008 2009 2010 2011 2012 H1 TRY FX 18
Slide 20: Client Assets of TRY 151 Billion
... has reached a remarkable Client Assets (TRY mn.) No. Of Investment Accounts (000) total of TRY 151 billion. 141,481 150,944 133,835 10,062 10,396 8,838 On-Balance Sheet 107,320 90,617 7,498 66% 6,158 69% 66% 67% 70% 13% 9% 10% 14% Off-Balance Sheet 15% 6% 6% 2008 2009 2010 2011 2012 H1 5% 11% 5%
Slide 21: Capital Adequacy
Capital Adequacy Regulatory Capital (TRY mn.) CAR supports balance sheet growth going forward… 20,546 19,263 18,631 18,252 18,160 17,935 17,206 17,183 16,319 16.1% 15,925 14.6% 14.3% 14.2% 14.1% 13.9% 13.1% 13.0% 12.6% 12.4% 11 Q2 11 Q3 11 Q4 12 Q1 12 Q2 11 Q2 11 Q3 11 Q4 12 Q1 12 Q2 CAR Tier I Rati
Slide 22: Operating Income Composition (Quarterly)
Change (TRY mn.) 2012 Q1 2012 Q2 QoQ Operating Income Composition Net Interest Income 1,312 1,429 9% Net Fees & Commissions 370 429 16% NII Net Trading Gains/Losses 82 194 137% 62% 54% Dividends Received 95 323 241% Net Commissions Released Provisions 229 227 -1% 16% Other Income Gains on Asset Sale
Slide 23: Operating Income Composition (Half-year)
Change (TRY mn.) 2011 H1 2012 H1 YoY Operating Income Composition Net Interest Income 2,195 2,741 25% Net Fees & Commissions 668 799 20% NII Net Trading Gains/Losses 69 275 296% 53% 57% Dividends Received 556 418 -25% Net Commissions Released Provisions 534 456 -15% 16% 2% 17% Net Trading Gains on A
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 H1 2012 H1 Change 905 Non-Cash Loans 59,758 86,718 45% 743 Credit Appraisal 59,196 122,121 106% Mutual Fund Man. & Other Inv. 139,941 68,359 -51% Acc.
Slide 25: Net Interest Margin
NIM Adj. NIM * 4.42% 5.30% 3.85% 4.02% 4.83% 3.50% 3.83% 3.48% 2011 2012 H1 2011 2012 H1 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 and Cost Structure
Cost / Income* Cost vs. Income (TRY mn.) 45.2% 4,775 40.6% 42.6% 41.2% 4,109 34.0% 1,722 1,881 2011 H1 2012 H1 2008 2009 2010 2011 2012 H1 Cost Income Cost vs. Assets Cost Structure 7% 6%4% Other 6% 4% 6% 2.5% 2.8% 2.5% 2.3% 29% 33% SDIF Fees Depreciation 54% 50% Administrative Expenses 2011 H1 2012
Slide 27: ROAE and ROAA
ROAE* ROAA* 29.1% 28.7% 2.4% 2.3% 2.2% 22.6% 2.1% 22.1% 21.0% 20.4% 1.8% 1.8% 19.9% 1.7% 1.6% 1.5% 1.5% 15.6% 15.4% 15.2% 2008 2009 2010 2011 2012 H1 2008 2009 2010 2011 2012 H1 ROAE ROAE** ROAA ROAA** * All calculations are based on trailing four quarters’ data. ** Banking business (Excluding equit
Slide 28: Market Cap, Earnings and 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 21,672 19,450 2,982 14,963 2,667 2,372 11,342 1,702 1,509 1,109 956 2008 2009 2010 2011 2012 H1 Isbank is included in the following indices: 635 • ISE-100 2004 2005 2006 2007 2008 2009 2
Slide 29: Credit Ratings and Outlook
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 and Customer Products
28 different products for different customer segments 204,800 Sales Points and 270,978 chains are included İn loyalty programme. The number of cards reached 8.8 million, 5.9 million of which are issued to Bank’s own customers. The first bank in Turkey which has made an agreement with the world’s fou
Slide 32: Market Leader in Mutual Fund Business
Isbank is the market leader in mutual fund business. 31
Slide 33: Mutual Funds
... 35 types of mutual funds Mutual Funds (TRY mn.) Number of Investors designed for different risk appetites 7,090 801,402 833,095 6,776 6,430 6,444 693,003 646,754 5,165 590,000 2008 2009 2010 2011 2012 H1 2008 2009 2010 2011 2012 H1 Income From Funds (TRY mn.) With 8 equity (A type), 27 fixed inc
Slide 34: Payroll Accounts and Automated Bill Payments
... supported by payroll accounts and bill Payroll Accounts Automated Bill Payments payment agreements 12,520 10,718 11,381 9,822 5,761,409 5,415,263 2011 H1 2012 H1 2011 H1 2012 H1 Amount (TRY million) Amount (TRY million) Number of Active Payments Number of payroll accounts is 1,209,159 as of 30.0
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 43.3% 56.7% Telecom Other 11.2% 7.9% Banks Glass 15.9% 37.7% Non-financial Financial Insurance 17.5% Financial Ins. TRY 4.8 billion 9.8% Non - Listed Listed 29.8% 70.2% As of 30 June 2012, Isbank has 22 participations. TRY 4.8 Since the end of 2002, a total
Slide 38: Sisecam General Information
Isbank (65%) 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 73.0 13.5 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. One invest
Slide 40: Avea / Turk Telekom
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: Subsidiaries and Affiliates Table
Assets Shareholders’ Market Field of Bank’s Direct Risk Group Equity (USD 000) Company Name (USD 000) Share (%) Basis for Market Share Activity Share(%) Share (%) (3) (3) (3) Türkiye Sınai Kalkınma Bankası A.Ş. Investment Bank 40.52 50.00 5,358,548 810,175 21 Total Assets İşbank AG Banking 100.00 10
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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