Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — H1 2016 Earnings Presentation
25 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2016
Slide 1: H1 2016 Earnings Presentation
H1 2016 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
H1 2016 Earnings Presentation Macro Outlook > FED left interest rates unchanged in Jul-16 meeting, emphasizing > CBRT has cut the upper end of the corridor by another 25 bps down that near-term risks to the economic outlook have diminished and to 8.75%, extending total rate cut to 200 bps in 2016. T
Slide 3: Banking Sector Overview
H1 2016 Earnings Presentation Banking Sector Overview > Total loans grew 3.8% QoQ and reached TRY 1,569 bn. TRY loans > Trading income line was driven into the negative territory due to recorded 3.8% increase, growing faster than FX loans. swap costs. > Credit card loans and housing loans grew 3.8%
Slide 4: H1 2016 Highlights
H1 2016 Earnings Presentation H1 2016 Highlights > Total net income reached TRY 1,566 mn, up by 27.4% YoY. > L/D ratio at 106.5%, reflecting comfortable liquidity position. Record high quarterly net income of TRY 886 mn booked in the > Record high quarterly net fees & commission income of second qua
Slide 5: Increasing profit boosting RoE 17.2% quarterly, 15.6% YtD
H1 2016 Earnings Presentation Increasing profit boosting RoE 17.2% quarterly, 15.6% YtD Net Income (TRY million) 37.1% 27.4% 30.2% 1,566 886 1,229 YoY Change (%) 680 > 10.5% Net Interest Income 646 648 > 0.2% Net Fees & Commissions 438 > 1.4% Total Operating Income > 27.4% Net Income Q2-15 Q3-15 Q4-
Slide 6: Loan driven asset growth 6.7% YtD
H1 2016 Earnings Presentation Loan driven asset growth 6.7% YtD Asset Growth IEA Securities YoY 14.1% QoQ 2.6% 82.9% Portion 14.2% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 14.1% Loans Cash & CBRT 6.7% 2.6% 82.9% 82.9% 82.5% 82.9% Securities Other Assets 200.4 195.3 FX 28
Slide 7: Securities portfolio well balanced and quite stable
H1 2016 Earnings Presentation Securities portfolio well balanced and quite stable Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 15.5 14.9 14.6 14.2 CPI-Linked (TRY 8.2 bn) 29% 27.2 27.9 28.5 28.4 FX 5.0 18% 5.8 21% 5.8 20% 6.0 21% Fixed Rate 55.5
Slide 8: Solid loan growth, market share up to 8.7%
H1 2016 Earnings Presentation Solid loan growth, market share up to 8.7% (TRY billion)(a) 18.3% 9.7% Total Loans 4.8% HALKBANK B. Sector(b) YtD YtD 136.2 9.7% 5.7% 130.0 0.4 Commercial Loans QoQ QoQ 123.8 124.2 0.3 11.4 YtD 11.0% 4.8% 3.8% 115.1 0.3 0.3 11.0 QoQ 3.0% 9.7 10.2 0.3 Corporate Loans TRY
Slide 9: TRY dominated loan book
H1 2016 Earnings Presentation TRY dominated loan book Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 5.1% Commercial 3.1% Commercial 9% Corporate 23.3% SME 40% FX Corporate 30% TRY 31.5% 68.5% Cooperative 14%(b) Retail 21% Sectoral Breakdown of Loans (%)(a) Retail Loans by Types
Slide 10: Steady market share in retail loans
H1 2016 Earnings Presentation Steady market share in retail loans (TRY billion)(a) 8.6% HALKBANK 5.4% YtD 3.0% 5.4% 29.1 28.2 QoQ 27.5 27.6 3.0% 26.8 Consumer Loans YtD 4.8% 12.4 12.3 12.1 12.2 12.7 QoQ 3.7% B. Sector (b) Share in total 43.6% YtD 2.9% Housing Loans QoQ 12.0 12.2 12.6 12.9 YtD 5.8% 1
Slide 11: NPL stable at 3.0% and below sector average
H1 2016 Earnings Presentation NPL stable at 3.0% and below sector average NPL Portfolio (TRY million) NPL Coverage (%) 4,330 3,974 4,137 76.1 76.2 3,871 76.0 75.8 76.0 3,772 Jun-15 Sep-15 2015 Mar-16 Jun-16 Jun-15 Sep-15 2015 Mar-16 Jun-16 Loans under Close Watch (TRY million) NPL/Total Loans (%) Lo
Slide 12: NPL ratio by segments
H1 2016 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a)(c) Corporate - Commercial (%) (a) Consumer Loans (%) (c) 5.3 5.9 6.0 4.8 5.6 4.0 3.7 3.8 3.7 3.7 2.5 2.5 2.5 2.2 2.2 2.2 2.3 2.0 1.8 2.0 1.7 1.8 (b) 1.6 1.5 1.6 Jun-15 Sep-15 2015 Mar-16 Jun-16 Jun-15 Sep-15 2015 Mar-16
Slide 13: CoR resistant and in line with expectations
H1 2016 Earnings Presentation CoR resistant and in line with expectations Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) 165 YtD Quarterly 123 111 81 57 58 84 73 63 54 25 38 40 54 58 Jun-15 Sep-15 2015 Mar-16 Jun-16 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (
Slide 14: LDR preserved at comfortable level
H1 2016 Earnings Presentation LDR preserved at comfortable level IBL 84.8%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 85.1% 85.2% 85.2% 84.8% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity 119.7 119.
Slide 15: Robust deposit growth 3.7% QoQ
H1 2016 Earnings Presentation Robust deposit growth 3.7% QoQ HALKBANK B. Sector(b) FX Dep. YtD 8.5% 2.2% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 6.4% -1.1% in USD YtD 9.4% 3.1% Total Dep. YtD 6.8% 5.0% TRY Dep. YtD 5.9% 7.3% terms QoQ 3.6% -3.7% QoQ 3.7% 2.1% QoQ 2.3% 4.6% Total Deposits TRY
Slide 16: Restrained cost of TRY deposits, improving 30 bps QoQ
H1 2016 Earnings Presentation Restrained cost of TRY deposits, improving 30 bps QoQ Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 83.4% 83.8% 83.7% 16.6% 16.3% 17.1% 82.9% 16.2% FX 35% 16.8
Slide 17: Cost - Yield - Spread
H1 2016 Earnings Presentation Cost - Yield - Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 6.4 6.2 5.2 6.0 5.4 5.5 4.4 4.4 4.0 4.3 3.8 3.7 1.2 3.4 1.2 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Yield on Loans (%)(b) Yield on Securities (%) 9.8 10.0 10.0 10.2 10.5
Slide 18: NIM sustained at 3.9% thanks to increasing interest income from loans
H1 2016 Earnings Presentation NIM sustained at 3.9% thanks to the increasing interest income from loans Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses 3.4% 10.5% 15% 3.0% on Securities 2,803 3,098 1,572 1% on Others 1,520 1,378 1,481 1,526 6,399
Slide 19: Net fees & commissions growth gained momentum: 11.1% QoQ
H1 2016 Earnings Presentation Net fees & commissions growth gained momentum: 11.1% QoQ Net Fees & Commissions Income (TRY million) 11.2% 0.2% 11.1% 615 616 324 292 308 292 271 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 H1-15 H1-16 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenues (%
Slide 20: Opex under control: 12.0% YoY
H1 2016 Earnings Presentation Opex under control: 12.0% YoY Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 4.7% 12.0% -3.2% 1,893 962 1,689 931 65 (a) 2.1 2.0 2.0 890 895 904 38 117 27 (a) 57 41 61 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 H1-15 H1-16 Jun-15 2015 Jun-16 Cost/Income (%)
Slide 21: Solvency Ratios
H1 2016 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Basel III (TRY mn) H1-16 Credit Risk Base Amount (CRBA) 145,929 13.5 13.8 13.7 13.5 13.0 Market Risk Base Amount (MRBA) 5,118 13.1 13.0 12.8 Operational Risk Base Amount (ORBA) 11,297 12.9 12.2 Total Risk Weigh
Slide 22: Branch Network – Human Resources
H1 2016 Earnings Presentation Branch Network – Human Resources > 12 new branches opened in H1-16. > Total branch number reached 956. Loans and Deposits per Branches (%) Breakdown of Banking Transactions (%) Automatic Loans/Branches Deposits/Branches Internet Payment 6% 145.3 Banking 18% 139.6 134.3
Slide 23: Balance Sheet
H1 2016 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million H1-15 2015 Q1-16 H1-16 Change% Change% Change% Cash and Balances Held with the Central Bank(a) 21,515 23,325 24,642 24,236 (1.6) 3.9 12.6 Banks & Money Market(b) 2,468 2,513 1,987 852 (57.1) (66.1) (65.5) Securities(b) 27,194 27,
Slide 24: Income Statement
H1 2016 Earnings Presentation Income Statement YoY QoQ YoY Change Change Change In TRY million H1-15 H1-16 % Q2-15 Q1-16 Q2-16 % % Interest Income 6,399 7,966 24.5 3,398 3,945 4,021 1.9 18.3 On Loans 5,189 6,679 28.7 2,679 3,218 3,461 7.5 29.2 On Securities 1,192 1,212 1.7 710 689 523 (24.0) (26.3)
Slide 25: 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
Türkiye Halk Bankası A.S. — H1 2016 Earnings Presentation on 6ix