Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — Q3 2015 Earnings Presentation
26 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2015
Slide 1: Q3 2015 Earnings Presentation
Q3 2015 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
Slide 2: Macro Outlook
Q3 2015 Earnings Presentation Macro Outlook > The Fed held off raising interest rates, putting more emphasise on > CBRT has kept its set of interest rates unchanged and launched a road global economic risks and those related to premature tightening map during the normalization of global monetary pol
Slide 3: Banking Sector Overview
Q3 2015 Earnings Presentation Banking Sector Overview > Total loan book grew 6.0% QoQ and 19.4% YtD, > Sectoral RoAE has mirrored the weak operating reaching TRY 1,482 bn. TRY loan book was up 2.5% performance, coming down to 10.1% as of Aug-15. whereas FX loan book rose by 14.2% in TRY terms. > Sec
Slide 4: September 2015 Highlights
Q3 2015 Earnings Presentation September 2015 Highlights > Total net income has reached TRY 1,667 mn as of > Net fees & commissions up 23.1% YoY, reaching Sep-15. Q315 net income at TRY 438 mn. TRY 886 mn. > Profitability metrics RoE and RoA, standing at 12.8% > Solid deposit base; up 6.9% QoQ. and 1
Slide 5: Net income quarterly TRY 438 mn, reaching TRY 1,667 mn YtD
Q3 2015 Earnings Presentation Net income quarterly TRY 438 mn, reaching TRY 1,667 mn YtD Net Income (TRY million) -27.2% -5.5% -32.2% 1,764 1,667 646 YoY Change (%) 601 584 442 438 > 13.1% Net Interest Income > 23.1% Net Fees & Commissions > 15.9% Total Operating Income > -5.5% Net Income Q3-14 Q4-1
Slide 6: Loan driven asset growth 8.0% QoQ
Q3 2015 Earnings Presentation Loan driven asset growth 8.0% QoQ Asset Growth IEA Securities YtD 22.0% QoQ 8.0% 83.0% Portion 14.7% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 22.0% Loans Cash & CBRT Securities Other Assets 8.0% 82.6% 82.5% 83.5% 82.9% 83.0% 189.7 175.6 FX 2
Slide 7: Balanced and stable securities portfolio
Q3 2015 Earnings Presentation Balanced and stable securities portfolio Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 18.5 17.3 16.5 15.6 14.7 CPI-Linked (TRY 8.3 bn) 27.7 29.7% 26.8 26.6 27.3 27.9 FX 4.0 14% 4.2 16% 4.6 17% 5.1 19% 5.7 20% Fixed
Slide 8: Commercial and corporate driven loan growth, market share up to 8.4%
Q3 2015 Earnings Presentation Commercial and corporate driven loan growth, market share up to 8.4% (TRY billion)(a) 24.8% 7.5% Total Loans 123.8 HALKBANK B. Sector(b) 115.1 0.3 YtD YtD 24.8% 19.4% 105.7 0.3 9.7 Commercial Loans QoQ QoQ 99.2 1.1 8.5 YtD 45.8% 7.5% 6.0% 93.4 1.2 6.2 QoQ 14.5% 37.9 1.1
Slide 9: Sectoral diversification across the loan book
Q3 2015 Earnings Presentation Sectoral diversification across the loan book Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 5.9% Commercial 3.2% Commercial 8% Corporate 22.6% SME 39% FX Corporate 31% TRY 31.7% 68.3% Cooperative 12%(b) Retail 22% Sectoral Breakdown of Loans (%)(a)
Slide 10: Retail loan market share preserved at 6.9%
Q3 2015 Earnings Presentation Retail loan market share preserved at 6.9% (TRY billion)(a) 6.9% 2.5% HALKBANK 27.5 YtD 26.8 26.8 6.9% 24.5 25.7 QoQ Consumer Loans 2.5% YtD -0.5% 11.7 12.4 13.0 12.4 12.3 QoQ -0.4% Share in total 44.8% B. SECTOR(b) YtD 7.5% Housing Loans QoQ YtD 15.8% 1.7% 9.9 10.3 11.
Slide 11: NPL ratio further improving, now at 3.0%
Q3 2015 Earnings Presentation NPL ratio further improving, now at 3.0% NPL Portfolio (TRY million) NPL Coverage (%) 3,747 3,772 3,871 76.0 76.1 3,667 3,700 65.2 65.7 59.3 Sep-14 2014 Mar-15 Jun-15 Sep-15 Sep-14 2014 Mar-15 Jun-15 Sep-15 Loans under Close Watch (TRY million) NPL/Total Loans (%) Loans
Slide 12: NPL ratio by segments
Q3 2015 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) (a) Consumer Loans (%) (c) 4.8 5.1 5.2 4.2 5.1 3.9 4.0 4.9 4.0 3.7 2.4 2.3 2.2 2.1 2.1 2.1 2.0 2.2 2.0 1.9 2.1 2.0 1.9 1.6 1.5(b) Sep-14 2014 Mar-15 Jun-15 Sep-15 Sep-14 2014 Mar-15 Jun-15 Sep-
Slide 13: CoR reflecting high asset quality at 84 bps
Q3 2015 Earnings Presentation CoR reflecting high asset quality at 84 bps Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 165 160 123 110 111 94 84 84 84 52 80 51 41 52 38 Sep-14 2014 Mar-15 Jun-15 Sep-15 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk
Slide 14: LDR stable and comfortably below sector average at 102.9%
Q3 2015 Earnings Presentation LDR stable and comfortably below sector average at 102.9% IBL 86.0%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 84.7% 84.4% 84.9% 85.1% 86.0% Funds Borrowed Securities Issued Interbank Money Market Sh
Slide 15: TRY driven deposit growth continuing 7.0% QoQ
Q3 2015 Earnings Presentation TRY driven deposit growth continuing 7.0% QoQ HALKBANK B. Sector(b) FX Dep. YtD 37.7% 44.3% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 6.8% 11.5% in USD YtD 5.6% 10.6% Total Dep. YtD 18.5% 20.5% TRY Dep. YtD 9.2% 5.5% terms QoQ -5.7% -1.5% QoQ 6.9% 8.6% QoQ 7.0% 6.
Slide 16: Strengthening TRY funding base
Q3 2015 Earnings Presentation Strengthening TRY funding base Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 18.9% 83.4% 83.8% 18.2% 18.3% 81.8% 81.1% 81.7% 16.6% 16.2% FX 38% 5.2% 26.5% 4.2%
Slide 17: Cost - Yield - Spread
Q3 2015 Earnings Presentation Cost - Yield - Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 5.1 5.3 5.4 5.5 5.0 4.8 5.0 4.9 4.7 4.4 4.4 4.0 3.3 2.0 1.2 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Yield on Loans (%)(b) Yield on Securities (%) 10.5 9.8 9.9 10.0 9.8 1
Slide 18: NII up 13.1% YoY
Q3 2015 Earnings Presentation NII up 13.1% YoY Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses 5.3% 13.1% 17% on Securities 1,414 1,520 1,378 4,181 1,309 1,283 3,697 2,814 2,984 3,001 3,398 3,466 (1,505) (1,570) 83% (1,718) (1,878) (2,088) on Loan
Slide 19: Strong growth in net fees & commissions income 23.1% YoY
Q3 2015 Earnings Presentation Strong growth in net fees&commissions income growth 23.1% YoY Net Fees & Commissions Income (TRY million) 8.1% 23.1% 720 886 323 303 292 251 271 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Sep-14 Sep-15 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenues (
Slide 20: OpEx/average assets stable at 2% despite burden of rebates
Q3 2015 Earnings Presentation OpEx/average assets stable at 2% despite burden of rebates Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 18.2% 17.8% (13.3% adj.) 0.6% 2,584 2,194 890 895 66 174(a) 2.0 2.0 2.0 793 800 757 61 57 43 56 33 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Sep-14 Se
Slide 21: Solvency Ratios
Q3 2015 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-1 CAR Basel III (TRY mn) Sep-15 Credit Risk Base Amount (CRBA) 132,421 13.6 13.6 13.3 13.5 13.0 Market Risk Base Amount (MRBA) 4,804 12.7 12.9 12.9 Operational Risk Base Amount (ORBA) 10,978 13.0 12.2 Total Risk Weig
Slide 22: Branch Network - Human Resources
Q3 2015 Earnings Presentation Branch Network - Human Resources Loans and Deposits per Branches Utilization of Banking Distribution Channels (%) 135.8 Automatic Loans/Branches Deposits/Branches Payment 7% 129.5 Internet 120.7 132.0 Banking 21% 115.9 126.8 114.5 119.0 Mobile ATM 51% 113.7 Banking 2% 1
Slide 23: Balance Sheet
Q3 2015 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million Sep-14 2014 Jun-15 Sep-15 Change% Change% Change% Cash and Balances Held with the Central Bank(a) 19,253 20,276 21,515 23,506 9.3 15.9 22.1 Banks & Money Market(b) 1,457 1,284 2,468 4,591 86.0 257.6 215.1 Securities(b) 27,728 26,
Slide 24: Income Statement
Q3 2015 Earnings Presentation Income Statement YoY QoQ YoY In TRY million Sep-14 Sep-15 Change% Q3-14 Q1-15 Q2-15 Q3-15 Change% Change% Interest Income 8,467 9,865 16.5 2,814 3,001 3,398 3,466 2.0 23.2 On Loans 6,418 8,166 27.2 2,242 2,510 2,679 2,976 11.1 32.7 On Securities 2,037 1,665 (18.3) 569 4
Slide 25: Halkbank 2015 Expectations
Q3 2015 Earnings Presentation Halkbank 2015 Expectations Growth Expectations (%) Key Ratios (%) Macro Expectations (%) 2015 2015 2015 2015 Revised 2015 Revised 2015 Revised Assets 13-15 22-23 RoE 20-22 13-15 GDP Growth ~4 ~3 Loans 16-18 26-28 RoA 2.4-2.6 ~1.5 Headline CPI ~6 ~8 TRY 16-18 18-20 Secur
Slide 26: 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
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