Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR
Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — Q3 2013 Earnings Presentation
41 slides from Turkiye Is Bankasi Anonim Sirketi's earnings presentation, Sep 30, 2013
Slide 1: Isbank Investor Presentation 2013-Q3
ISBANK INVESTOR PRESENTATION 2013-Q3
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 4 Financial Highlights 8 Retail Banking 29 Major Equity Participations 34 2
Slide 4: Agenda: Financial Highlights
Financial Highlights 8 Retail Banking 29 Major Equity Participations 34 3
Slide 5: Isbank at a Glance: Shareholders and Network
Free Float 31.75% Stocks are quoted at Borsa Istanbul and also traded at LSE Atatürk Shares Isbank Pension Fund 28.09% in the form of GDR 40.16% Largest stake owned by employees via pension fund 1,276 domestic branches country-wide (Largest among private banks), and 20 foreign branches 5,521
Slide 6: Main Business Lines
Main Business Lines... Banking Services Other Financial Services i — ee : — i EEE —- ee ae
Slide 7: Market Share and Rankings
Market Share (%) 2013 Q3 Rank(2) Total Assets (1) 13.1 1st Loans(1) Total Loans 14.1 1st TRY Loans 12.9 1st FX Loans 17.1 1st Consumer Loans(3) 11.7 2nd Deposits(1) TRY Deposits 12.6 1st FX Deposits 14.6 1st Demand Deposits 15.0 1st Total Deposits 13.4 1st Shareholder’s Equity(1) 11.6 1st Retail Pro
Slide 8: Financial Highlights
Isbank at a Glance 4 Retail Banking 29 Major Equity Participations 34 7
Slide 9: Total Assets, Loans, Deposits, Shareholders' Equity
Total Assets (TRY mn.) Loans (TRY mn.) 204,159 131,813 175,444 161,669 106,716 131,796 91,621 113,223 64,232 48,335 2009 2010 2011 2012 2013 Q3 2009 2010 2011 2012 2013 Q3 Deposits (TRY mn.) Shareholders’ Equity (TRY mn.) 119,575 22,719 23,125 105,383 98,313 17,921 88,260 17,014 72,177 13,494 2009 2
Slide 10: Asset Composition
(TRY mn.) 2012 2013 Q3 Change Asset Composition Cash & Banks 17,391 22,570 29.8% Cash & Banks 9.9% 11.1% Securities (Net) 38,055 35,456 -6.8% 21.7% 17.4% Securities Loans 106,716 131,813 23.5% Participations (Net) 7,700 7,668 -0.4% Loans Fixed Assets (Net) 1,999 2,082 4.1% 60.8% 64.6% Participations
Slide 11: Loan Portfolio
Loan Portfolio QoQ (TRY mn.) Loans / Deposits 125,282131,813 101.3% 110.2% 105.5% 97.1% 82,521 86,215 42,762 45,598 2012 2013 Q3 TRY FX * Total 2013 Q2 2013 Q3 Loans/Deposits Loans/Deposits (Adj.)* * 3% increase in FX loans when adjusted for the change in exchange rate. * TL securities issued added
Slide 12: Total Loans and Consumer Loans Breakdown
… 55% comprised of retail and Total Loans Consumer Loans (TRY mn.) SME loans. 22,378 26,717 21.0% 20.3% Retail Loans General Purpose 7.6% 7.5% 27.8% 50.2% 50.8% Consumer Loans Auto Loans 28.1% 26.9% Consumer * Credit Cards 5.9% 4.8% Housing Loans SME** Retail Overdraft 43.3% 45.3% 42.6% 43.3% Corpor
Slide 13: NPL Ratio and Management of NPLs
NPL Ratio Management of NPLs 79% coverage ratio, above sector average… 0.7% 0.7% 0.6% 0.4% 0.4% 2.1% 2.0% 409 412 1.9% 394 1.8% 1.8% 409 342 284 294 263 182 205 118 160 145 188 125 TRY mn. 12 Q3 12 Q4 13 Q1 13 Q2 13 Q3 12 Q3 12 Q4 13 Q1 13 Q2 13 Q3 Coverage Additio ns to NPLs Recoveries Net NPL Form
Slide 14: NPL Ratio by Loan Categories
NPL Ratio by Loan Categories NPL Breakdown 4.0% 3.5% 1.6% 1.7% 1.9% 1.8% 96% 97% 99% 98% 97% Consumer* Credit Cards Total Loans 3% 4% 1% 2% 3% 2012 2013 Q3 2009 2010 2011 2012 2013 Q3 * Includes retail overdraft accounts. Restructured Other NPLs Performing Loan Groups 98.4% 1.6% I. Group Loans II. G
Slide 15: Breakdown of Securities Portfolio
Breakdown of Securities Portfolio Total Portfolio FX Floating TRY 3.0% Discount & 38.1 35.5 Fixed 31.7 TRY 30.1% 29.5 Floating FX Discount 53.1% & Fixed 13.8% 6.4 6.0 3.6 3.0 2012 2013 Q3 TRY Securities (TRY bn.) FX Securities (TRY bn.) FX Securities ** (USD bn.) Total Securities (TRY bn.) 76% of se
Slide 16: Liabilities Composition
(TRY mn.) 2012 2013 Q3 Change Liabilities Composition Deposits 105,383 119,575 13.5% Equity REPOs & Money Market 13,519 18,810 39.1% 12.9% 11.3% Funds Borrowed 10,748 13,409 24.8% 9.5% 9.9% Other 3.6% 4.4% Securities Issued 6,364 9,063 42.4% 6.1% 6.6% Securities Other* 16,711 20,177 20.7% 7.7% Issue
Slide 17: Deposits
Deposits QoQ (TRY mn.) Market Shares ... a clear indicator of customer trust. 119,575 15.4% 14.6% - 113,954 12.9% 13.7% 12.6% 13.4% 70,539 70,784 43,415 48,791 2012 2013 Q3 TRY FX * Total 2013 Q2 2013 Q3 TRY Deposits FX Deposits Total Deposits * 8% increase in FX deposits when adjusted for the chang
Slide 18: 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. 24,167 20,947 18,627 58% 79.8% 14,469 55% 55% 11,259 20.2% 64% 60% 42% 45% 45% 36% Demand Deposits Time Deposits 40% 2009 2010 2011 2012 2013 Q3 TRY FX 17
Slide 19: Client Assets
... has reached a remarkable Client Assets (TRY mn.) No. Of Investment Accounts (000) total of TRY 169 billion. 169,391 164,173 141,481 11,184 133,835 10,623 10,062 On-Balance Sheet 107,320 8,838 7,498 69% 64% 71% 66% 67% 9% 10% 14% Off-Balance Sheet 13% 11% 6% 5% 5% 4% 18% 4% 18% 12% 2009 2010 2011
Slide 20: Capital Adequacy
Capital Adequacy Regulatory Capital (TRY mn.) CAR supports balance sheet growth going forward… 16.3% 16.2% 14.8% 26,432 14.5% 25,794 14.2% 25,461 24,740 13.0% 12.9% 12.5% 12.1% 21,598 21,531 11.8% 21,077 18,851 19,766 20,196 12 Q3 12 Q4 13 Q1 13 Q2 13 Q3 12 Q3 12 Q4 13 Q1 13 Q2 13 Q3 CAR Tier I Rati
Slide 21: Operating Income Composition (Quarterly)
Change (TRY mn.) 2013 Q2 2013 Q3 QoQ Operating Income Composition Net Interest Income 1,727 1,643 -4.8% Net Fees & Commissions 516 453 -12.3% NII Net Trading Gains/Losses 142 -1 NA 59.6% Dividends Received 290 0 NA 71.5% Net Commissions Released Provisions 187 134 -28.3% 17 38 115.2% 17.8% Othe r In
Slide 22: Operating Income Composition (Nine Months)
(TRY mn.) 2012 9M 2013 9M Change YoY Operating Income Composition Net Interest Income 4,256 5,093 19.7% Net Fees & Commissions 1,205 1,431 18.8% NII Net Trading Gains/Losses 264 293 11.1% 418 450 7.8% 61.1% 63.2% Net Commissions Dividends Received (1) Released Provisions 702 612 -12.8% 43 105 146.1%
Slide 23: Fees and Commissions
... supported by superior Fees and Commissions Received (Gross) Gross Commission Income (TRY mn.) retail and corporate franchise. (TRY thousand) 2012 9M 2013 9M Change Non-Cash Loans 134,417 160,330 19.3% Credit Appraisal 177,861 168,069 -5.5% 1,601 Mutual Fund Man. & Other Inv. 102,725 118,468 15.3
Slide 24: Net Interest Margin
NIM Adj. NIM (*) ( **) 5.54% 5.24% 5.01% 4.69% 4.79% 4.67% 4.24% 4.27% 2012 2013 Q3 2012 2013 Q3 NIM NIM exc. reserves at Central B ank NIM NIM exc. reserves at Central B ank * Based on MIS data ** Adjusted for Securities Trading Gains / Losses and Foreign Exchange Gains / Losses 23
Slide 25: Cost / Income and Cost Structure
Cost / Income* Cost vs. Income (TRY mn.) 45.7% 43.6% 40.6% 42.6% 8,060 34.0% 6,962 3,268 3,541 2012 9M *** 2013 9M 2009 2010 2011 2012 ** 2013 Q3** ** When adjusted for the asset sale impact in 2013 Q1 and additional provision for Cost Income pension fund ((2012 Q3: TL 317 mn., 2012 Q4: TL 123 mn.),
Slide 26: ROAE and ROAA
ROAE* ROAA* 28.6% 28.4% 2.4% 2.3% 2.2% 22.7% 2.0% 2.0% 21.0% 20.7% 1.8% 1.9% 20.2% 1.8% 19.9% 1.7% 1.5% 16.5% 15.2% 15.5% 2009 2010 2011 2012 2013 Q3 2009 2010 2011 2012 2013 Q3 ROAE ROAE** ROAA ROAA** * All calculations are based on trailing four quarters’ data. ** Banking business (Excluding equit
Slide 27: Market Cap Comparison and Earnings & Payout Ratio
Market Cap. Comparison (TRY mn.) Earnings & Payout Ratio 32.7%32.1% 36.1% 34.6% 27,883 23.2% 23.2% 20.3% 20.1% 32.4%** 24,836 24,084 19,450 3,310 14,963 2,982 2,667 2,372 1,702 1,509 1,109 2009 2010 2011 2012 2013 Q3 956 Isbank is included in the following indices: 635 • BIST-100 2004 2005 2006 2007
Slide 28: Ratings
Rating* Rating* Foreign Currency Issuer Credit BB+ / Stable / B Foreign Currency Issuer Default Rating BBB / Stable / F3 Local Currency Issuer Credit BB+ / Stable / B Local Currency Issuer Default Rating BBB / Stable / F3 Turkish National Scale trAA+ / trA-1 National Long Term Rating AAA (tur) / Sta
Slide 29: Agenda: Retail Banking
Isbank at a Glance 4 Financial Highlights 8 Major Equity Participations 34 28
Slide 30: Credit Cards and Payment Products
37 different products for different customer segments 211,422 Sales Points and 278,848 chains are included in loyalty programme. The number of cards reached 9 million, 6.1million of which are issued to Bank’s own customers. The first bank in Turkey which has made an agreement with the world’s fourth
Slide 31: Isbank is the market leader in mutual fund business
Isbank is the market leader in mutual fund business. 30
Slide 32: Mutual Funds
... 31 types of mutual funds Mutual Funds (TRY mn.) Number of Investors designed for different risk appetites 7,090 7,296 801,402 826,292 822,384 6,776 6,430 6,508 646,754 693,003 2009 2010 2011 2012 2013 Q3 2009 2010 2011 2012 2013 Q3 Income From Funds With 9 equity (A type), 22 fixed income (B typ
Slide 33: Payroll Accounts and Automated Bill Payments
... supported by payroll accounts and bill Payroll Accounts (TRY mn.) Automated Bill Payments payment agreements 20,905 17,107 19,045 15,147 5,983,197 5,990,917 2012 Q3 2013 Q3 2012 Q3 2013 Q3 Amount (TRY million) Number of Active Payments Number of payroll accounts is 1,186,105 as of 30.09.2013. Au
Slide 34: Agenda: Major Equity Participations
Isbank at a Glance 4 Financial Highlights 8 Retail Banking 29 33
Slide 35: One of the biggest conglomerates in Turkey
...as one of the biggest conglomerates in Turkey. 34
Slide 36: Sectoral Breakdown of Participations
Sectoral Breakdown Financial Non- 46.7% financial 53.3% Telecom Other 10.2% 8.4% Banks 18.1% Glass Non-financial Financial 38.4% Insurance Financial Ins 18.7% 6.0% Non - Listed 27.8% Listed 72.2% As of 30 September 2013, Isbank has 20 participations. Since 2002, a total of 39 participations has been
Slide 37: Sisecam (Isbank 65%)
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 69.0 13.5 3.8 domestic market. Backed by its vision, Şişecam expands its production Gl
Slide 38: Sisecam Production Facilities
The Group obtains efficiency and spreads its operational risk by positioning its production facilities in the fast growing countries. Flat glass Glassware Glass packaging Chemicals 37
Slide 39: 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 40: Major Equity Participations by Field of Activity
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 5,896,384 924,482 19.6 Total Assets İşbank AG Banking 100.00
Slide 41: 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 Unit Manager of Investor Relations Division Phone : + 90 212 316 16 10 E-mail : alper.turgal@isbank.com.tr
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