Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR
Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — Investor Presentation (December 2009)
48 slides from Turkiye Is Bankasi Anonim Sirketi's investor presentation, Dec 31, 2009
Slide 1: Isbank Investor Presentation 2009
ISBANK INVESTOR PRESENTATION “~iip. 2009
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 Customer Centric Transformation Programme 37 Major Equity Participations 42 Page 3
Slide 4: Agenda
Financial Highlights 9 Retail Bankingg 31 Customer Centric Transformation Programme 37 Major Equity Participations 42 Page 4
Slide 5: Isbank at a Glance
Free Float 30.4% Stocks are quoted at ISE and also traded at LSE in the form Ataturk Shares Isbank Pension Fund of GDR 28.1% Largest stake owned by employees via pension fund 41.5% 1,078 domestic branches that cover all cities in Turkey (Largest among private banks) 3,591 ATMs (Largest ATM n
Slide 6: Banking Services and Other Financial Services
Banking Services Other Financial Services Page 6
Slide 7: Market Share and Rank
Market Share(%) 2009 Rank(2) Total Assets(1) 14.1 1st Loans(1) Total Loans 12.8 2nd TRY Loans 12.7 1st FX Loans 13.2 3rd Consumer Loans(3) 11.6 1st Deposits(1) TRY Deposits 13.5 1st FX Deposits 15.9 1st Demand Deposits 14 4 14.4 1st Total Deposits 14.3 1st Retail Products Volume of Debit Cards 17.1
Slide 8: Financial Highlights
Isbank at a Glance 5 Retail Banking 31 Customer Centric Transformation Programme 37 Major Equity Participations 42 Page 8
Slide 9: Total Assets, Loans, Deposits, Shareholders' Equity
Total Assets (TRY mn mn.) .) Loans (TRY mn mn.) .) 97.552 113.223 47.610 48.335 80.181 75.205 63.755 33.980 33 980 29.818 21.859 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Deposits (TRY mn mn.) .) Shareholders’’ Equity (TRY mn Shareholders mn.) .) 13.494 72.177 10.604 63.539 9.288 9.410 9.449
Slide 10: Asset Composition
(TRY mn.) 2008 2009 Change Asset Composition Cash & Banks 18,625 18 625 17 193 17,193 ‐8% 19% 15% Cash & Banks Securities (Net) 24,981 39,290 57% Loans 47,610 48,335 2% 26% 35% Securities Participations (Net)* 3,096 5,031 63% Loans Fixed Assets (Net) 1,953 1,922 ‐2% 49% 43% Other Assets 1,287 1,452
Slide 11: Loan Portfolio Growth
Loan Portfolio QoQ (TRY mn.) Loans / Deposits Quarter on quarter growth in loans… loans… 81,2% 48.335 74,9% 77,1% 45.932 64,0% 67,0% 33.178 34.435 34 435 50 5% 50,5% 12.754 13.900 2008 2009 TRY FX Total Loans/Deposits TRY Loans/TRY Deposits FX Loans/FX Deposits 2009Q3 2009Q4 Loan Portfolio YoY (TRY
Slide 12: Total Loans Composition
…56 56%% comprised of retail Total Loans Consumer Loans (TRY mn mn.) .) and SME loans. loans. 9,849 10,202 20% 21% Retail Loans 1% 1% 31% 9% 9% 52% 50 % Consumer General Purpose Consumer Loans 30% 25% Overdraft 8% 10% Credit Cards Auto Loans 44% SME* 40% 42% 38% Corporate Housing Loans 2008 2009 *SM
Slide 13: NPL Ratio and Management of NPLs
NPL Ratio Management of NPLs 100% NPL provisioning 100% since 2003 2003… … 4,3% 6,1% 4,2% 5,4% 2,5% 5,1% 5,1% 1,4% 4,4% 0,5% 695 643 500 485 481 31 43 368 2008 Q4 2009Q1 2009H1 2009 Q3 2009 Q4 297 214 207 T mn. 188 143 161 Coverage 374 57 TRY 08 Q4 09 Q1 09 Q2 09 Q3 09 Q4 132,4% 122,3% 100,0% ‐ Cost
Slide 14: NPL Ratios by Loan Category
NPL Ratio by Loan Categories NPL Ratios Ratios‐‐ Isbank vs. Sector (2009 ) 10,2% 10,2% 10,3% 6,1% 5,4% 4,2% 4,4% 5,4% 5,2% 4,2% 4 2% 4,2% 4 2% 2,3% Consumer Credit Cards Total Loans Consumer Credit Cards Total Loans 2008 2009 Isbank Sector Performing Loan Groups NPL Breakdown 95,5% 63% 67% 83% 94% 9
Slide 15: Breakdown of Securities Portfolio
Breakdown of Securities Portfolio Total Portfolio (TRY mn.) mn.) 39.290 TRY FX Discount Floating; Fl i & Fi Fixed d; 26.319 24.981 7,81% 26,85% 24.326 FX 22.366 Discount TRY & Fixed ; Floating; 22 64% 22,64% 42,70% 2005 2006 2007 2008 2009 66 % of Securities are Available for Sale Average durations
Slide 16: Liabilities Composition
( (TRY mn.)) 2008 2009 h Change Liabilities Composition Deposits 63,539 72,177 14% 10% 12% Equity REPOs & Money Market 7,007 10,984 57% 7% 5% Funds Borrowed 11,033 9,744 ‐12% 11% 9% Other 6,524 6,824 5% Other 7% 10% Equity 9,449 13,494 43% T t l Liabilities Total Li biliti 97 552 97,552 113 223 113,
Slide 17: Deposit Base
l ... a clear i di t indicator off customer trust trust.. Deposit Base (TRY mn mn.) .) FX Deposits 72,177 TRY Deposits 63,539 38% 48,533 36% 46,399 37,222 36% 39% 41% 62% 64% 61% 64% 59% 2005 2006 2007 2008 2009 Page 17
Slide 18: Deposits and Market Shares
Deposits QoQ (TRY mn.) Market Shares 69.267 72.177 15,9% , 14,7% 14,3% 14,1% , 13,5% 14,3% 41.567 44.672 9,9% 27.700 27.505 4,1% 6,8% TRY FX Total 2000 2008 2009 2009 Q3 2009 Q4 TRY Deposits FX Deposits Total Deposits Deposits YoY (TRY mn.) Largest g market share in TRY,, FX and total deposits among
Slide 19: Demand Deposits
…make significant contribution to lower cost of Demand Deposits (TRY mn mn.) .) Share of Demand Deposits in Total Deposits funding.. funding 11,259 8,788 7,991 60% 7,678 84,4% 6,759 54% 47% 55% 50% 15,6% 40% 53% 45% 46% 50% Demand Deposits Other Deposits 2005 2006 2007 2008 2009 TRY FX Page 19
Slide 20: Client Assets
... has reached a remarkable Client Assets ((TRY mn.) mn.)) No. Of Investment Accounts ((000)) total of TRY 107 billion. billion. 107,320 90,617 7.498 79,821 6 158 6.158 70,488 On‐Balance Shee 5.231 59,952 4.363 4.630 67% 70% et 61% 62% 66% 20% 18% 15% 13% 9% 10% 6% She Offf‐Balance 7% 6% 6% eet 8%
Slide 21: Capital Adequacy and Shareholders' Equity
Capital Adequacy Regulatory Capital (TRY mn mn.) .) High CAR support supportss balance sheet growth going forward… forward … 16,7%16,3% 18,0% 16,8% 18,3% 17,0% 13.963 15,2% 15,4% 15,4%15,9% 13.148 12.933 12.314 12.146 11.884 11.143 0.854 0.805 0.638 10 10 10 2008 Q4 2009 Q1 2009 H1 2009 Q3 2009 Q4 2
Slide 22: Operating Income Composition (Quarterly)
Change (TRY mn.) 2009 Q3 2009 Q4 QoQ Operating Operati ng Income Composition N Interest Net I IIncome 1,276 1,282 ‐ Net Fees & Comm. from Banking NII 309 335 8% Serv. 66% 62% Net Trading Gains/Losses 31 100 223% Net Commissions Dividends Received 3 0 ‐ 16% 16% Net Trading Released Provisions 289 306
Slide 23: Operating Income Composition (Annual)
Change (TRY mn.) 2008 2009 YoY Operating Operat ing Income Composition Net Interest Income 3 618 3,618 4 867 4,867 35% Net Fees & Comm. from Banking NII 1,204 1,253 4% Serv. 58% 61% Net Trading Gains/Losses 473 408 ‐14% Net Commissions Dividends Received 285 325 14% Released Provisions 475 929 96% N
Slide 24: Fees and Commissions Received
... supported by superior Fees and Commissions Received ‐(Gross) Gross) Gross Commission Income (TRY mn mn.) .) retail and corporate franchise.. franchise 7% 8% Non Cash Loans 1.355 14% 10% 1.315 Credit Appraisal 17% 20% Mutual Fund Man. And Other Inv.Acc.Fees 2008 2009 Credit Cards 41% 39% Commissi
Slide 25: Average Spread and NIM
Average Spread NIM High margins maintained in 8,5% (1) the fourth quarter… quarter… 6,0% 5,8% 4,7% 2,6% 6,4% 1,6% , 2008 2009 3,2% TRY FX Blended 2,1% 2,4% Adj.. NIM (2) Adj 8,1% 8,1% 5,8% 5,9% 2008 2009 TRY FX 2,3% 2,3% 2008 2009 TRY FX Blended (1) Quarterly Blended Net Interest Margin for Q4 2009
Slide 26: Cost / Income and Cost Structure
Cost / Income Cost vs. Income (TRY mn mn.) .) 7.927 43,6% 42,0% 45,2% 6.232 36,7% 34,0% 2.820 2.695 2005 2006 2007 2008 2009 2008 2009 Cost Income Cost vs. Assets Cost Structure 12% 8% Other 4% 3% 6% 7% 3,5% SDIF Fees 3,2% 30% 2,8% 33% 2,6% Depreciation 52% Administrative 44% Expenses Staff Cost 200
Slide 27: ROAE and ROAA
ROAE ROAA 2,3% 2,3% 28,8% 2,2% 27,6% 2,1% 2,0% 24,3% 22,2% 1,7% 1,7% 21,6% 20,7% 1,6% 1,5% 1,4% 17,0% 15,1% 13 7% 13,7% 11,9% 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 ROAE ROAE* ROAA ROAA* * Banking business (Excluding equity participations portfolio) Page 27
Slide 28: Market Cap, Earnings and Payout Ratio
Cap.. Comparison (TRY Market Cap (TRY mn .)) mn.) Earnings & Payout Ratio 32.7% 32.1% 36.1% 34.6% 23,2% 23.105 23 105 32.4%** 20.311 19.450 2.372 17.972 11.342 1,702 1 509 1,509 1,109 956 2005 2006 2007 2008 2009 635 Isbank is included in the following indices: • ISE‐100 • ISE‐30 2004 2005 2006 2007
Slide 29: Credit Ratings
Rating Outlook Rating Outlook Global Scale Long Term FC IDR BBB BBB‐ Stable Longg Term Counter Partyy Credit BB Positive Longg Term LC IDR BBB 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
Slide 30: Retail Banking
Isbank at a Glance 5 Financial Highlights 9 Customer Centric Transformation Programme 37 Major Equity Participations 42 Page 30
Slide 31: Credit Cards
15 different products for different customer segments 95,116 merchant firms and 180,189 chains are included in loyalty programme. The number of cards reached 7.6 million, 5 million of which are issued to Bank’s own customers. The first bank in Turkey which has made an agreement with the world’s four
Slide 32: Isbank dominates the mutual funds market
Isbank dominates the market being the market market, leader in mutual funds. funds. Page 32
Slide 33: Mutual Funds
... 27 types of mutual funds Mutual Funds (TRY (TRY mn.) mn.) Number of Investors designed d i d for f different diff t risk i k appetites.. appetites 6.776 609.121 646.754 5.659 582.249 590.000 5.140 5.158 552.346 4.523 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Income From Funds (TRY (TRY m
Slide 34: Payroll Accounts and Automated Bill Payments
... supported by payroll accounts and bill p payment y Payroll y Accounts Automated Bill Payments y agreements.. agreements 23.441 22.779 13.627 11.131 6.667.540 6.247.512 2008 2009 2008 2009 Amount (TRY million) Amount (TRY million) Number of Payments Number of payroll accounts is 1.256.155 as of 3
Slide 35: Use of Non-Branch Channels
... are being used more efficiently efficiently. ffi i tl . Use of Non Non‐‐Branch Channels (%) 2005 2006 2007 2008 2009 44% 43% 39% ATM 26 26 26 24 24 49% 47% Internet 20 22 26 29 32 Call Center 2 2 2 2 2 56% 57% 61% Kiosk 1 1 1 1 1 51% 53% Telephone 2 2 1 1 2 2005 2006 2007 2008 2009 Non‐Branch h
Slide 36: Customer Centric Transformation Programme
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 Major Equity Participations 42 Page 36
Slide 37: Customer Centric Transformation Programme
The CCT Programme was launched at the end of 2006 aiming to improve long term commercial effectiveness and operational efficiency. efficiency. INCREASE IN CUSTOMER ORIENTATION COST REVENUE REDUCTION Transform the organisation to a “customer centric” one Implement an enabling technology platform for
Slide 38: Significantly Improving Competencies
…significantly improving competencies I b k 2006 Isbank I b k 2009 Isbank Customer •Customer Profitability measured and •Advanced Customer Segmentation, Life Time Segments basic segmentation in place Value and Customer Churn models deployed Product •Limited product development specific •Customer spe
Slide 39: Customer Ownership through Business Units
C Customer O Ownership hi ( Four Business Units (Retail, Private, Corporate, Commercial)) were established according to main through Business customer segments. Units Isbank has further fragmented its main customer segments and diversified its products and services offered to its customers. Isbank e
Slide 40: Shared Service Centers and Centralization
Branch and Head Office processes were centralized in Shared Service Centers to boost efficiency and branch capacity. 9 52% of operations handled in branches are centralized. 9 2,012 2 012 FTE savings as a result of centralization efforts. efforts 9 Average 35% reduction in customer waiting time serv
Slide 41: Major Equity Participations
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 Customer Centric Transformation Programme 37 Page 41
Slide 42: One of the Biggest Conglomerates in Turkey
...as one of the biggest ...as gg conglomerates in Turkey. Turkey. Page 42
Slide 43: Sectoral Breakdown of Participations
Sectoral Bre Breaakdown Financial Non‐Financial 48,3% 51,7% 9,1% 11,3% 15 5% 15,5% Other Telecom Banks Insurance 24,7% Non‐financial Financial 27,0% Glass Financial Ins. TRY 4.8 48 billion 12,4% Listed Non ‐ Listed 33,5% 66,5% As of December 2009 2009,, Isbank has 25 participations. TRY 4.8 Since th
Slide 44: Şişecam General Information and Market Shares
Isbank (64 %) General Information Market/Production Market/Production Shares (%) A leading flat glass, glassware, glass packaging, soda Turkey Europe2 World3 ash and chromium chemicals producer in the domestic Flat Glass 79.0 12.63 3.7 market. Glassware 68.43,5 21.53 8.5 Backed by its vision, Şi
Slide 45: Şişecam Production Facilities
The Group obtains efficiency and spreads its operational risk by positioning its production d ti facilities f iliti iin the th fast f t growing i neighbouring countries countries.. Flat Glass Glassware Glass Packaging Chemicals 45
Slide 46: Avea
İşbank Group 18.63% Turk Telekom 81.37% Aria and Aycell merged under TT & TIM as of February 19 19,, 2004 Avea brand has been successfully launched in June 20042004.. The coverage and efficiency have increased significantly due to the combination and integration of 2 GSM networks. networks. A number
Slide 47: Group Companies
Shareholders’ Field of Bank’s Direct Group Assets Market Group Company Equity Basis for Market Share Activity Share(%) Share (%) (USD 000) Share (%) (USD 000) Türkiye Sınai Kalkınma Bankası A.Ş. Investment Bank 40.52 50.10 4,511,473 675,403 25.10 (1) Total Assets İşbank GmbH Banking 100.00 100.00 93
Slide 48: Investor Relations Contacts
Süleyman H. Özcan Head of Investor Relations Division Phone : + 90 212 316 16 02 E‐mail : suleyman. suleyman.ozcan@isbank ozcan@isbank..com com..tr Alper Turgal Assistant Manager of Investor Relations Division Phone : + 90 212 316 16 10‐ 10‐11 / 316 30 36 E‐mail : alper. alper.turgal@isbank turgal@i
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