Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — H1 2015 Earnings Presentation

26 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2015

  1. Slide 1: H1 2015 Earnings Presentation

    H1 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

  2. Slide 2: Macro Outlook

    H1 2015 Earnings Presentation Macro Outlook > Interest rate lift-off by FED is expected to happen towards the > Turkish general elections were held in early Jun-15, suggesting a shift year-end unless the US economy will outperform and force the from single party government to a coalition where the d

  3. Slide 3: Banking Sector Overview

    H1 2015 Earnings Presentation Banking Sector Overview(a) > Total loan book grew 5.7% QoQ and 12.7% YtD, > May-15 cumulative net income depicted a 8.1% increase, translated into a loan volume of TRY 1,398 bn. TRY loan however sector RoAE hovers around low double digit book up 5.7% whereas FX loan boo

  4. Slide 4: H1 2015 Highlights

    H1 2015 Earnings Presentation H1 2015 Highlights > Total net income has reached TRY 1,229 mn as of H115. > 7.6% QoQ deposit growth almost caught up with loan Q215 net income at TRY 646 mn, increasing 10.7% QoQ. growth, low level of L/D ratio preserved at 102.1%. > Profitability metrics RoE and RoA c

  5. Slide 5: Selected P&L Items, Q2-15

    H1 2015 Earnings Presentation Selected P&L Items, Q2-15 (TRY million) Nll 333 1,520 Fees & Com. 292 From lncreasing e CPl-linkers Trading swap volum 48 Other lncome Rebates 430 528 Generio ic OPEX 890 59 is n v pro rsal reve Provision 838 273 350 Final tranch Dividend Free big ticket NPeLof 189 prov

  6. Slide 6: Net income growth of 10.7% QoQ

    H1 2015 Earnings Presentation Net income growth of 10.7% QoQ Net Income (TRY million) 2.1% 5.7% 10.7% 1,229 1,163 632 646 601 584 442 YoY Change (%) > 17.4% Net Interest Income > 31.1% Net Fees & Commissions > 31.9% Total Operating Income > 5.7% Net Income Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 H1-14 H1-15 R

  7. Slide 7: Robust asset growth 13% YtD

    H1 2015 Earnings Presentation Robust asset growth 13% YtD Asset Growth IEA Securities YoY 22.1% QoQ 8.9% 82.9% Portion 15.6% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 22.1% Loans Cash & CBRT Securities Other Assets 13.0% 8.9% 83.3% 82.5% 83.5% 82.9% 175.6 161.3 FX 25.1% 2

  8. Slide 8: Low AFS portion limiting MtM valuation impact

    H1 2015 Earnings Presentation Low AFS portion limiting MtM valuation impact Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 19.4 17.3 16.5 15.6 CPI-Linked (TRY 8.4 bn) 27.9 30.9% 26.8 26.6 27.3 FX 3.7 13% 4.2 16% 4.6 17% 5.1 19% Fixed Rate 51.5% TR

  9. Slide 9: Solid loan growth, market share up to 8.2%

    H1 2015 Earnings Presentation TRY 1 bn loans to self-employed for premium payment Solid loan growth, market share up to 8.2% to Social Security Institution (SSI) reclassified and (TRY billion)(a) 27.3% shifted from consumer loans to SME loans. 16.0% 8.9% Total Loans 115.1 HALKBANK B. Sector(b) 105.7

  10. Slide 10: TRY dominated loan book despite retail loans' share down to 23%

    H1 2015 Earnings Presentation TRY dominated loan book despite retail loans’ share down to 23% Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 5.7% Commercial 2.8% Commercial 7% Corporate 20.6% SME 40% FX Corporate 29% TRY 29.1% 70.9% Cooperative 13%(b) Retail 23% Sectoral Breakdow

  11. Slide 11: Market share preserved despite controlled growth strategy

    H1 2015 Earnings Presentation Market share preserved despite controlled growth strategy (TRY billion)(a) 12.1% 4.2% Credit Cards (Thousand) # of Credit Cards 3,583 HALKBANK 26.8 26.8 # of POS 268 YtD 25.7 # of Merchants 238 4.2% 23.9 24.5 Issuer m/s 3.4% QoQ Acquirer m/s 4.6% -0.1% 11.3 11.7 12.4 13

  12. Slide 12: NPL ratio continuously improving towards sector average

    H1 2015 Earnings Presentation NPL ratio continuously improving towards sector average, Coverage ratio back to normal, 76% NPL Portfolio (TRY million) NPL Coverage (%) 3,700 3,747 3,772 3,667 78.4 76.0 1,076(c) 65.2 65.7 59.3 2,493 Jun-14 Sep-14 2014 Mar-15 Jun-15 Jun-14 Sep-14 2014 Mar-15 Jun-15 Loa

  13. Slide 13: NPL ratio by segments

    H1 2015 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) (a) Consumer Loans (%) (a) 4.7 5.2 4.2 5.1 3.9 4.0 4.9 3.6 4.0 2.4 2.2 2.2 2.2 2.1 2.1 2.1 2.1 2.0 2.0 2.1 2.1 2.0 1.9 1.6(b) Jun-14 Sep-14 2014 Mar-15 Jun-15 Jun-14 Sep-14 2014 Mar-15 Jun-15 S

  14. Slide 14: Provisioning requirement of one-off NPL completely fulfilled

    H1 2015 Earnings Presentation Provisioning requirement of one-off NPL completely fulfilled Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 165 256 123 110 111 94 84 111 70 87 52 40 54 70 52 46(b) Jun-14 Sep-14 2014 Mar-15 Jun-15 SME Retail Commercial Corporate Total Net Cost of

  15. Slide 15: Funding base strengthened

    H1 2015 Earnings Presentation Funding base strenghtened IBL 85.1%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 84.1% 84.4% 84.9% 85.1% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity 117.9 118.6 118.5 4

  16. Slide 16: Strong TRY deposit growth

    H1 2015 Earnings Presentation Strong TRY deposit growth HALKBANK B. Sector(b) FX Dep. YtD 29.0% 29.4% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 16.7% 13.3% in USD YtD 11.9% 13.8% Total Dep. YtD 10.8% 11.0% TRY Dep. YtD 2.1% -0.7% terms QoQ 13.2% 11.0% QoQ 7.6% 4.7% QoQ 2.7% -1.5% Total Deposit

  17. Slide 17: TRY heavy funding structure

    H1 2015 Earnings Presentation TRY heavy funding structure Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 19.1% 18.9% 18.3% 83.4% 80.9% 81.1% 81.7% 16.6% FX 38% 6.3% 26.4% 10.1% TRY 16.9 16.5

  18. Slide 18: Cost - Yield - Spread

    H1 2015 Earnings Presentation Cost - Yield - Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 5.7 5.4 5.1 5.3 4.8 5.0 5.0 4.7 4.9 4.7 4.4 4.1 4.0 3.3 2.0 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Yield on Loans (%)(b) Yield on Securities (%) 10.4 10.5 9.9 9.8 9.9 1

  19. Slide 19: NIM improved to 4.4% thanks to CPI-linked securities

    H1 2015 Earnings Presentation NIM improved to 4.4% thanks to CPI-linked securities Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses 23.9% 19% on Securities 1,414 1,520 1,227 1,309 1,283 2,920 2,814 2,984 3,001 3,398 (1,693) (1,505) (1,570) 81% (1,7

  20. Slide 20: Net fees & commissions income up 31% YoY

    H1 2015 Earnings Presentation Net fees & commissions income up 31% YoY Net Fees & Commissions Income (TRY million) 18.0% 31.1% 615 323 303 292 247 251 469 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 H1-14 H1-15 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenues (%) Asset Management 1%

  21. Slide 21: Rebate-adjusted OpEx growth 12% YoY only

    H1 2015 Earnings Presentation Rebate-adjusted OpEx growth 12% YoY only Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 18.9% 17.6% (12% adj.) 11.2% 1,689 890 114 (a) 2.0 2.0 2.1 793 800 1,437 748 757 59 34 43 56 22 33 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 H1-14 H1-15 Jun-14 2014 Jun

  22. Slide 22: Solvency Ratios

    H1 2015 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-1 CAR Basel III (TRY mn) Jun-15 14.4 Credit Risk Base Amount (CRBA) 125,854 13.6 13.6 13.3 13.5 Market Risk Base Amount (MRBA) 4,323 13.4 12.7 12.9 12.9 Operational Risk Base Amount (ORBA) 10,978 13.0 Total Risk Weig

  23. Slide 23: Branch Network - Human Resources

    H1 2015 Earnings Presentation Branch Network - Human Resources Loans and Deposits per Branches Utilization of Banking Distribution Channels (%) Automatic Loans/Branches Deposits/Branches Payment 7% 129.5 Internet 120.7 Banking 23% 115.9 126.8 106.7 119.0 Mobile ATM 49% 113.7 Banking 2% 104.8 Branch

  24. Slide 24: Balance Sheet

    H1 2015 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million H1-14 2014 Q1-15 H1-15 Change% Change% Change% Cash and Balances Held with the Central Bank(a) 17,413 20,276 19,708 21,515 9.2 6.1 23.6 Banks & Money Market(b) 1,077 1,284 1,309 2,468 88.6 92.3 129.2 Securities(b) 27,901 26,844 2

  25. Slide 25: Income Statement

    H1 2015 Earnings Presentation Income Statement YoY QoQ YoY In TRY million H1-14 H1-15 Change% Q2-14 Q1-15 Q2-15 Change% Change% Interest Income 5,654 6,399 13.2 2,920 3,001 3,398 13.3 16.4 On Loans 4,176 5,189 24.3 2,158 2,510 2,679 6.7 24.1 On Securities 1,469 1,192 (18.9) 757 482 710 47.3 (6.2) In

  26. Slide 26: 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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