Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — FY2012 Earnings Presentation
29 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2013
Slide 1: 2012 Earnings Presentation
BRSA Bank Only 2012 Earnings Presentation
Slide 2: Macro Outlook
2012 Earnings Presentation Macro Outlook > Turkey grew 1.6% in Q3-12, economic activity is > CAD registered USD 48.9 bn below market concensus of expected to pick up in the last quarter USD 50.5 bn at YE 2012. CAD/GDP is expected at around > Industrial production declined 3.8% YoY; CBRT may 6.1% com
Slide 3: Banking Sector Outlook
2012 Earnings Presentation Banking Sector Outlook > CBRT introduced leverage based reserve > Banks kept tapping the local and international bond markets requirements implementation starting from Q4-13 > Bonds that banks issued increased 104.7% YoY from TRY > CBRT increased TRY and FX RRR and raised
Slide 4: 2012 Highlights
2012 Earnings Presentation 2012 Highlights Strong profitability, high efficiency, solid asset quality, sound capital adequacy > Highest net income ever, TRY 2,595 mn in 2012 and > Conservative approach on coverage ratio with 82.5% TRY 742 mn in Q4-12, thanks to strong, well > Sound asset quality, 2.
Slide 5: The most successful public offering
2012 Earnings Presentation The most successful public offering Halkbank repeated its success; the most successful and the biggest public offering in the ISE IPO -2007 SPO- 2012 Overall > The biggest and the most Free Float Free Float successful public offering 24.98% 48.90% Demand in > 299 Million s
Slide 6: Solid performance, record high net income; TRY 2.6 bn yearly-TRY 742 mn quarterly
2012 Earnings Presentation Solid performance, record high net income; TRY 2.6 bn yearly-TRY 742 mn quarterly Net Income (TRY million) 47.2% 26.9% 23.7% 2,595 742 2,045 709 600 544 600 544 504 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 2011 2012 RoE (%) RoA (%) YtD Quarterly YtD Quarterly 28.3 2.9 2.8 25.2 2.6 25
Slide 7: Successfully transformed and well-balanced assets
2012 Earnings Presentation Successfully transformed and well-balanced assets Asset Growth IEA Securities YoY 18.8% QoQ 6.1% 83.2% down to 21.2% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 88.3% 87.5% 83.2% Loans Cash & CBRT 48.4% Securities Other Assets 18.8% FX 25.6% 28.6%
Slide 8: FRNs gaining ground in total with 59% to mitigate interest rate risks
2012 Earnings Presentation FRNs gaining ground in total with 59% to mitigate interest rate risks Total Securities Portfolio (TRY billion) Interest Structure (%) Securities / Total Assets (%) FRN Securities / Total Securities CPI Linkers / Total Securities 27.7 25.6 22.5 21.2 23.3 22.9 22.9 58.2 59.3
Slide 9: Lucrative growth in loans with high risk adjusted returns
2012 Earnings Presentation Lucrative growth in loans with high risk adjusted returns (TRY billion)(a) Total Loans 17.3% HALKBANK B. Sector (b) 4.6% YoY YoY 17.3% 16.3% QoQ QoQ Fund Loans 4.6% 5.2% 64.8 up 2.5% YoY 61.9 1.4 1.3 up 1.8% QoQ TRY Loans 6.9 55.2 6.6 Cooperative Loans 1.3 HALKBANK B. Sect
Slide 10: Distinct position in SME segment - no material sectoral concentration
2012 Earnings Presentation Distinct position in SME segment - no material sectoral concentration Loans by Currency (TRY billion)(a) Loans by Types (%) 12.0 17.4 17.4 17.7 Funds 2% Cooperatives 11% FX 27.6% 31.6% 28.1% 27.3% 31.5 37.8 44.6 47.1 TRY 72.4% 68.4% 71.9% 72.7% Retail 27% Commercial 60% 20
Slide 11: Retail loan growth backed by payroll accounts
2012 Earnings Presentation Retail loan growth backed by payroll accounts (TRY billion)(a) 17.9% 4.4% HALKBANK YoY 17.6 16.9 17.9% QoQ 15.0 Consumer Loans 4.4% up 12.5% YoY 11.4 9.4 9.6 up 2.9% QoQ 8.6 Share in total 54.6% B. SECTOR(b) YoY 6.6 17.9% QoQ Housing Loans 4.8% 6.6 up 22.4% YoY 6.2 5.4 up
Slide 12: Asset quality maintained better than sector, flat NPL ratio with no write-off/sell-off
2012 Earnings Presentation Asset quality maintained better than sector, flat NPL ratio with no write-off/sell-off NPL Portfolio (TRY million) NPL Coverage (%) 99.2 1,869 1,960 95.6 95.8 (a) 1,669 1,758 89.2 Since 2002 84.0 82.6 82.5 83.3 570 514 507 Legacy NPLs 503 2001 and before 2010 2011 Sep-12 2
Slide 13: Low NPL ratios across all segments vs sector
2012 Earnings Presentation Low NPL ratios across all segments vs sector Halkbank NPL Sector NPL (a,b) Corporate - Commercial (%)(a) Consumer Loans (%)(b) 3.2 3.1 2.0 2.0 2.3 2.3(a) 2.8 2.8 1.9 2.6 1.6 1.2 1.3 1.4 1.6 1.8 1.1 1.4 1.4 1.5 2011 Mar-12 Jun-12 Sep-12 2012 2011 Mar-12 Jun-12 Sep-12 2012 S
Slide 14: Limited NPL formation and low CoR
2012 Earnings Presentation Limited NPL formation and low CoR New NPLs by segments (TRY million) Gross Cost of Risk by segments (bps)(a) (2012) 2 1,960 106 66 116 81 76 79 26 63 1,669 19 Corporate Commercial SME Retail Other 2011 2012 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost
Slide 15: Ultra comfortable level of L/D ratio, less reliance on wholesale funding
2012 Earnings Presentation Ultra comfortable level of L/D ratio, less reliance on wholesale funding Liabilities Mix (%) Eurobond Deposits Marketable Securities Issued IBL 82.9% (a) 5 Years, USD 750 mn in Jul-12 Funds Borrowed Other Liabilities > 5% Yield, lowest ever yielding fixed rate Interbank Mo
Slide 16: Strong fundamentals rewarded by depositors; up 20.7% YoY
2012 Earnings Presentation Strong fundamentals rewarded by depositors; up 20.7% YoY HALKBANK B. Sector (b) FX Dep. YoY 17.4% 7.2% HALKBANK B. Sector (b) HALKBANK B. Sector (b) QoQ 4.0% 2.4% Total Dep. YoY 20.7% 11.0% TRY Dep. YoY 22.4% 13.0% in USD YoY 24.1% 13.4% QoQ 4.7% 4.3% QoQ 5.0% 5.3% terms Q
Slide 17: Well-managed deposit costs also supported by growth in demand deposits
2012 Earnings Presentation Well-managed deposit costs also supported by growth in demand deposits Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%)(a) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 15.7 15.5 15.5 80.3 FX 13.7 75.1 75.4 32.3%
Slide 18: Cost-Yield-Spread - Quarterly
2012 Earnings Presentation Cost-Yield-Spread(a) - Quarterly Cost of Deposits (%) Spreads (%) On Securities On Loans 5.5 5.8 5.5 5.5 5.1 5.7 5.7 6.2 6.0 6.1 5.7 5.5 4.5 4.6 1.3 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Yield on Loans (%)(b) Yield on Securities (%) 11.5 11.7 11.4 11.
Slide 19: Strong topline performance; NII up 28.9% YoY, 33.2% QoQ
2012 Earnings Presentation Strong topline performance; NII up 28.9% YoY, 33.2% QoQ Interest Expenses Net Interest Income (TRY million) Interest Income Breakdown of Interest Income(%) 17.3% 28.9% 33.2% 4,476 25% on Securities 1,102 1,032 1,181 1,293 970 3,473 2,166 2,170 2,302 2,127 2,393 8,991 7,279
Slide 20: Simply the best fee income performance and more room for further up
2012 Earnings Presentation Simply the best fee income performance and more room for further up Net Fees & Commissions Income (TRY million) 17.9% 858 269 728 218 193 211 161 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 2011 2012 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenues (%) Ins
Slide 21: One of the lowest C/I in the banking industry; 33.6%
2012 Earnings Presentation One of the lowest C/I in the banking industry; 33.6% Operating Expenses (TRY million) OPEX / Average Assets (%) 21.6% 610 1,725 2,098 2.1 2.0 2.0 2.1 2.1 500 522 453 465 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 2011 2012 2011 Mar-12 Jun-12 Sep-12 2012 Cost/Income (%) Breakdown of Ope
Slide 22: Solvency Ratios
2012 Earnings Presentation Solvency Ratios Capital Ratios (%) Details on Capital Ratio Basel II Basel I Basel-II Basel-II (TRY mn) Sep-12 2012 16.2 Credit Risk Base Amount (CRBA) 70,084 70,006 15.2 15.8 Market Risk Base Amount (MRBA) 2,161 1,674 14.5 14.7 14.3 Operational Risk Base Amount (ORBA) 7,5
Slide 23: Network - Human Resources
2012 Earnings Presentation Network - Human Resources Loans & Deposits per Branches (TRY Million) Loans per Branches Deposits per Branches 98.0 > 50 new branches opened in 2012, the branch 86.5 network figure is 816. > Cost conscious organic 80.8 73.4 growth and dynamic 77.7 staff structure > To prov
Slide 24: Balance Sheet
2012 Earnings Presentation Balance Sheet QoQ YoY In TRY million 2011 Sep-12 2012 Change % Change % Cash and Balances Held with the Central Bank (a) 7,272 10,402 12,488 20.1 71.7 Banks & Money Market (b) 1,475 1,969 2,632 33.7 78.4 Securities (b) 23,346 22,952 22,954 - (1.7) Net Loans (b) 56,216 63,0
Slide 25: Income Statement
2012 Earnings Presentation Income Statement YoY QoQ YoY In TRY million 2011 2012 % Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 % % Interest Income 7,279 8,991 23.5 2,166 2,170 2,302 2,127 2,393 12.5 10.4 On Loans 5,246 6,731 28.3 1,514 1,564 1,676 1,719 1,771 3.0 17.0 On Securities 2,019 2,239 10.9 649 603 618 40
Slide 26: Net Income Evolution
2012 Earnings Presentation Net Income Evolution 2011 - 2012 (TRY million) (234) 130 347 372 197 15 142 Sustainable profitability, strong 1,003 performance in every metrics > 24.8% RoE 2,045 2,595 > 2.6% RoA Net Other > 5.3% NIM NII Net Fees& Commissions Trading Income Operating Income OPEX Provision
Slide 27: Diversified Services and Products Provided Through Subsidiaries
2012 Earnings Presentation Diversified Services and Products Provided Through Subsidiaries Latest Developments in Subsidiaries 2012 Halk Banka A.D., Skopje 2011 > Acquisition of Ziraat Banka A.D., Skopje completed 2010 Halk Banka A.D., Skopje Halk Life and Pension > Acquisition of Halk Banka A.D., S
Slide 28: New Credit Card Loyalty Program Launched
2012 Earnings Presentation New Credit Card Loyalty Program Launched > New brand name is “PARAF” and loyalty program is launched as of 5 December 2012 > Main goal is to support growth of fees and commissions income > Primarily targeting the existing customer base and increasing the market share to 6%
Slide 29: 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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