Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — Q1 2020 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2020

  1. Slide 1: 1Q 2020 Earnings Presentation

    1Q 2020 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

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  3. Slide 3: Strong asset growth with well-diversified structure

    1Q 2020 Earnings Presentation Strong asset growth with well-diversified structure Asset Mix (%) Asset Growth Loans Securities Bank Placements CBRT Receivables Cash YoY 20.7% QoQ 7.5% Liq. Assets Other Assets Total Asset Growth (TRY billion) 20.7% 68.1% 79.2% 8.0% 7.5% 491.2 12.8% 457.0 443.5 22.3% 4

  4. Slide 4: Fixed rate heavy securities portfolio yielding higher income

    1Q 2020 Earnings Presentation Fixed rate heavy securities portfolio yielding higher income Total Securities Portfolio (TRY billion) Securities Classification (TRY billion)(*) Total Securities / Total Assets (%) Other Floating Rate CPI Linkers Fixed Rate (TRY) 93.5 23.1 21.7 22.5 22.3 Fixed Rate (FX)

  5. Slide 5: Strong loan growth with maintained market share

    1Q 2020 Earnings Presentation Strong loan growth with maintained market share CGF Utilization (TRY Bn) Current loan amount Dec-19 21.8 Mar-20 19.1 (TRY billion)(a) 21.4% Total Loans 12.9% HALKBANK B. Sector(b) YoY YoY 324.8 21.4% 15.0% QoQ QoQ 285.3 287.7 12.9% 9.9% 267.6 270.3 Business Loans TRY Lo

  6. Slide 6: TRY dominated loan book with a structural safety

    1Q 2020 Earnings Presentation TRY dominated loan book with a structural safety Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 6% FX SME 10% Commercial 4% 26.8% SME 40% Corporate 86% Corporate 38% CGF 11% TRY 73.2% Cooperative 34%(b) Retail 17% Sectoral Breakdown of Loans (

  7. Slide 7: Improved NPL ratio with increasing coverage

    1Q 2020 Earnings Presentation Improved NPL ratio with increasing coverage NPL Portfolio (TRY million)(a) NPL Coverage (%)(a) 16,540 15,920 73.4 13,910 11,524 63.4 59.1 56.5 55.8 9,230 Mar-19 Jun-19 Sep-19 2019 Mar-20 Mar-19 Jun-19 Sep-19 2019 Mar-20 Loans under Close Watch (TRY million) NPL/Total Lo

  8. Slide 8: NPL ratio by segments

    1Q 2020 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) Consumer Loans (%) 5.0 5.1 5.0 4.5 4.4 4.0 4.1 3.9 3.5 4.5 2.7 3.9 3.6 2.7 2.8 2.8 2.8 3.1 2.5 2.5 Mar-19 Jun-19 Sep-19 2019 Mar-20 Mar-19 Jun-19 Sep-19 2019 Mar-20 SME Loans (%) Credit Cards (

  9. Slide 9: Prudent approach in provisioning

    1Q 2020 Earnings Presentation Prudent approach in provisioning Provisions and Reversals (TRY million) Net Total Cost of Risk (bps)(a) Provision Reversals S1 Provisions S2 Provisions S3 Provisions YtD Quarterly 241 182 241 156 913 66 143 353 23 1,369 54 1,301 1,231 105 671 702 (89) (55) (TRY million)

  10. Slide 10: Growing share of deposits

    1Q 2020 Earnings Presentation Growing share of deposits Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 85.9% 86.1% 86.3% 85.8% 86.7% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity FX 46.5% 45.5% 44.4% 41.2%

  11. Slide 11: TL deposit growth higher than sector average

    8 -6.36 3 1Q 2020 Earnings Presentation TL deposit growth higher than sector average HALKBANK B. Sector(b) YoY 4.5% 18.9% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 7.6% 10.1% YoY 21.5% 24.6% YoY 38.9% 31.5% in USD YoY -11.0% 1.2% QoQ 9.9% 8.9% QoQ 11.7% 7.5% terms QoQ -3.0% -0.6% Total Deposit

  12. Slide 12: Steadily decreasing cost of TRY deposits, demand deposits gaining ground

    1Q 2020 Earnings Presentation Steadily decreasing cost of TRY deposits, demand deposits gaining ground Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 17.6% 19.2% 16.5% 17.3% 17.3% 83.5% 82.4

  13. Slide 13: Flattish core spread coupled with expanded spread on securities

    1Q 2020 Earnings Presentation Flattish core spread coupled with expanded spread on securities Cost of Deposits (%) Spreads (%) On Loans On Securities 7.4 9.8 6.2 9.0 8.8 5.8 6.7 4.8 4.7 5.4 3.6 4.4 4.3 3.3 1.1 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Yield on Loans (%) (a) Yield o

  14. Slide 14: Significant increase in net interest income

    1Q 2020 Earnings Presentation Significant increase in net interest income Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly 5.2 206.0% Swap adj. (YtD) Swap adj. (QoQ) 5.2 39.2% 4.0 3.0 2,268 2,819 3,797 5,288 2.6 1,728 2.1 3.0 4.9 4.9 2.6 2.1 2.4 3.1 10,743 12

  15. Slide 15: Eye-catching performance in core business yielding double digit RoE

    1Q 2020 Earnings Presentation Eye-catching performance in core business yielding double digit RoE Core Operating Revenues (TRY million)(a) Net Income (TRY million) 156.3% 797 825 32.8% 6,009 4,526 3,532 305 310 308 2,988 2,344 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 RoE (%) RoA (

  16. Slide 16: Efficient cost management

    1Q 2020 Earnings Presentation Efficient cost management Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 24.4% 11.4% 1,900 1.6 1.5 1.5 1.6 1,669 1,705 1.4 1,527 1,385 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Mar-19 Jun-19 Sep-19 2019 Mar-20 Cost/Income (%) Breakdown of Operating Expense

  17. Slide 17: Solvency Ratios

    1Q 2020 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Basel III 14.6 14.2 14.3 13.9 (TRY mn) Mar-20 13.0 Credit Risk Base Amount (CRBA) 320,573 11.8 11.4 11.7 Market Risk Base Amount (MRBA) 12,083 11.1 10.0 Operational Risk Base Amount (ORBA) 19,789 Total Risk Wei

  18. Slide 18: Branch Network – Human Resources

    1Q 2020 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branch Deposits/Branch Internet Automatic Banking 10% Payment 4% 334.6 297.8 ATM 27% 296.6 327.2 279.9 275.1 297.7 286.3 Mobile 271.8 Banking 46% 266

  19. Slide 19: Annex

    1Q 2020 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) 1Q19 1Q20 Total Assets 491,214 10.1 Loan Growth (YtD, %) 5.1 9.0 Loans (a) 324,753 11.2 Deposit Growth (YtD, %) (c) 8.9 8.9 TRY Loans 237,638 13.2 LDR (%) 112.2 104.5 FC Loans 87,115 7.9 NPL (%) 4.1 5

  20. Slide 20: Balance Sheet

    1Q 2020 Earnings Presentation Balance Sheet QoQ YoY In TRY million Mar-19 2019 Mar-20 Change% Change% Cash and Balances Held with the Central Bank(a) 34,024 34,489 23,336 (32.3) (31.4) Banks & Money Market(b) 2,565 3,750 3,235 (13.7) 26.1 Securities(b) 83,895 102,734 109,588 6.7 30.6 Net Loans(b) 27

  21. Slide 21: Income Statement

    1Q 2020 Earnings Presentation Income Statement QoQ YoY In TRY million Q1-19 Q4-19 Q1-20 Change% Change % Interest Income 10,743 11,327 11,723 3.5 9.1 On Loans 8,440 9,632 8,788 (8.8) 4.1 On Securities 2,127 1,656 2,868 73.2 34.8 Interest Expense 9,015 7,529 6,435 (14.5) (28.6) On Deposits 6,268 4,93

  22. Slide 22: Notes

    1Q 2020 Earnings Presentation Notes Investor Relations 20 www.halkbank.com.tr

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  24. Slide 24: 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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