Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN

Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — H1 2014 Earnings Presentation

25 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Aug 11, 2014

  1. Slide 1: Earnings Presentation BRSA Bank-Only 1H 2014

    Earnings Presentation INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 BRSA Bank-Only 1H 2014 August 11, 2014 www.vakifbank.com.tr 1

  2. Slide 2: 1H 2014 Macro Highlights

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 1H 2014 Macro Highlights US 1Q GDP data disappointed the markets, but CPI increased 0.31% on a monthly basis in June and couldn’t wipe out confidence. On the other hand, came at 9.16% YoY, higher than market expectations, unemployment rate fell

  3. Slide 3: 1H 2014 VakifBank Highlights

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 1H 2014 VakifBank Highlights Quarterly nominal NPL growth is limited at 2.7%, 1H14 reported net income is 722.8 mio TL; quarterly which is one of the best among peer group on reported net income came at 349.2 mio TL. comparable basis thanks to

  4. Slide 4: 1H 2014 Earnings and Ratios

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 1H 2014 Earnings and Ratios Net Income (Mio TL) Operating Profit (Mio TL) 9.7% 7.3% 12.2% ROAE (%) ROAA (%) www.vakifbank.com.tr *Excluding 70 mio TL year-end preloaded general provision regulatory effect. 4

  5. Slide 5: The share of loans in total assets

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Loans/Assets reached to all time record level Total Assets (TL bio) Breakdown of Assets (%) 17.5% Other * Interbank (0.4%) Securities The share of (120 bps) loans in total Interest Earning Assets (TL bio) Loans assets 83.9% 82.1% 16.4% 82.5% 83

  6. Slide 6: Loan growth & breakdown

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Loan growth & breakdown Total Loans (TL bio) FC Loans (USD bio) 18.7% 4.9% 86.5 89.3 91.5 2.5% 77.1 2.2% 15.3% Loan/Deposit (%) 2.6% 107.4 106.1 107.5 108.7 19.8% www.vakifbank.com.tr 6

  7. Slide 7: Well diversified loan breakdown

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Well diversified loan breakdown Breakdown of Loans (TL bio) Portfolio Shift (%) 3 18.7% 77.1 86.5 89.3 91.5 Other 1 2.5% SME (0.9 pps) SME 2 Mortgage Retail (2.3 pps) GPC Com.&Corp. Com.&Corp. 3.2 pps 1 Other includes credit cards, overdraft an

  8. Slide 8: Retail products are building momentum

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Retail products are building momentum due to increased consumer confidence General Purpose Consumer (TL bio) Residential Mortgages*(TL bio) # Ranking in peer group 6.9% #4 15.5% #2 3.5% 2% Strong presence in key retail segments Retail Overdraft

  9. Slide 9: Modest growth in credit cards

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Modest growth in credit cards Credit Card Loans (TL mio) 5.1% Credit Card Loans growth YoY; 5.1% Sector growth YoY*; (0.5%) Market share* (%) Average Quarterly Issuing Volume (TL mio) www.vakifbank.com.tr *Calculations based on monthly BRSA rep

  10. Slide 10: Mid-Cap SME Loan growth

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Project finance lending growth is on track with the budget Commercial&Corporate (TL bio) Project Finance Loans (USD bio) 29.5% 10.4% 1.3% 8.0% Mid-Cap SME Loan growth SME*(TL bio) Total Com.&Corporate Loans**(TL bio) 7.5% 14.8% 23.2% QoQ 3.6% 2

  11. Slide 11: TL heavy deposit growth is backed by demand deposit

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 TL heavy deposit growth is backed by demand deposit Total Deposits (TL bio) FC Deposits (USD bio) Demand Deposit 17.2 growth 1.9% 81.5 83.1 YoY; 71.8 1.3% (12.9%) (11.8%) 37% 7.3% Share of Demand Deposits in total; Demand Deposits (TL bio) 37%

  12. Slide 12: Customer deposits remain the main funding tool

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Customer deposits remain the main funding tool Breakdown of Liabilities (%) Other Sub-Debt Breakdown of Liabilities (TL bio) Bonds 138.5 Wholesale Borrowing Repo* 117.9 Other Funds Bor. Sub-Debt Bonds Funds Borrowed+Bonds Issued+ SHE Repo Funds

  13. Slide 13: Timely reshaped securities portfolio in favour of CPI linkers

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Timely reshaped securities portfolio in favour of CPI linkers Total Securities (TL mio) Portfolio Structure 9.4% 22,931 22,128 22,350 20,429 (2.5%) Total CPI Linkers’ 18.8 bio TL share in TL 27.5% Securities 2.3% 1.4% increased to 38.5% 81.6% 7

  14. Slide 14: NPL ratios

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 NPL ratios Overall NPL Ratio* (%) Mortgages NPL (%) Total Retail NPL (%) Sector Sector Sector General Purpose Consumer NPL (%) SME NPL (%) Credit Cards NPL (%) Sector Sector Sector www.vakifbank.com.tr * Accumulated NPL, no write off & no asset

  15. Slide 15: Net CoR is better than the budget due to collection improvement

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Net CoR is better than the budget due to collection improvement NPL (mio TL)* Breakdown of New NPL Inflow (%) Other Credit Cards Com. Inst. Mortgage GPC Com.&Corp. Specific Cost of Risk (%) Group II Loans (mio TL) Coverage Ratio (%) 15.6 17.3 7

  16. Slide 16: Solvency ratios

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Solvency ratios Capital Adequacy Ratio (%) +31 bps + 56 bps +2 bps -2 bps 14.30% 11.3% 11.0% 10.6% 11.3% 11.6% Core Tier I 14.02% -28 bps +28 bps BRSA Recom. 12% 1Q14 RWA Internal Market Other 1H14 Min. Capital Risk Ratio Generation 8% Core Tie

  17. Slide 17: NIM, Spreads and Costs

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 NIM, Spreads and Costs Yields (%) Cost of Deposits (%) TL Loans TL Securities TL Deposits FC Deposits 41 bps (18 bps) 35 bps (13 bps) Net Interest Margin (NIM %) FC Loans FC Securities* 2 bps (21 bps) (11 bps) www.vakifbank.com.tr * MIS data. 1

  18. Slide 18: Earnings breakdown

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Earnings breakdown Net Interest Income (TL mio) Breakdown of Total Revenues (%) Other Dividend Trading Net F&C NII Core Banking Revenues* (TL mio) 1H14 Other Dividend Trading Net F&C NII 1H13 www.vakifbank.com.tr *NII + NFC 18

  19. Slide 19: Revenue Items

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Revenue Items Net Fee and Commission Income (TL mio) Other Income (TL mio) Breakdown of Net Fee & Com. Income (%) Insurance Other Cash Loans Cash Loans Insurance Inquiry &Expertise Inquiry & Expertise Credit Cards Non-Cash Loans Non-Cash Loans

  20. Slide 20: Opex

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Opex Operating Expenses* (TL mio) Breakdown of Operating Expenses (%) Other 15.3% Rental Personnel Exp. Advertisement Exp. Administrative 6.2% Exp. 1H14 Cost/Income * Other Advertisement Exp. Rental Personnel Exp. Administrative Exp. 1H13 www.v

  21. Slide 21: VakifBank with numbers

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 VakifBank with numbers Distribution Channels & 1H14 Efficiency (‘000 TRY) 1H14 Customer Base (#) Branches 877* Assets per Employee 9,304 ATMs 3,024 Assets per Branch 157,969* Personnel 14,891 Loans per Employee 6,147 POS Terminals 145,468 Loans

  22. Slide 22: Balance Sheet

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Balance Sheet YoY QoQ (TL-mio, %) 1H2013 1Q2014 1H2014 Growth Growth Cash & Balances with Central Bank 14,480 19,802 18,638 28.7% (5.9%) Interbank 1,346 2,552 1,286 (4.5%) (49.6%) Assets Securities 20,429 22,931 22,350 9.4% (2.5%) Loans 77,138

  23. Slide 23: Income Statement

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Income Statement ∆{1H13 ∆{1Q14 (TRY-Thousand, %) 1H2013 1Q2014 2Q2014 1H2014 1H14} 2Q14) Net Interest Income 2,600,255 1,059,148 1,046,293 2,105,441 (19.0%) (1.2%) Net Fee & Com. Income 381,123 145,105 171,362 316,467 (17.0%) 18.1% Dividend Inc

  24. Slide 24: Diversified funding source via Non-Deposit Funding

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H14 Diversified funding source via Non-Deposit Funding Syndicated Loan April, 2014 •Secured US$ 270.5 million and € 525 million 1 year syndicated loan, all-in cost as Libor +0.90% and Euribor + 0.90%, respectively •102% roll-over ratio 35 banks fro

  25. Slide 25: Investor Relations

    Investor Relations Çamlık Cad. Çayır Çimen Sok. No:2 Kat:6 34330 1. Levent-İstanbul / Turkey E-mail: investor.relations@vakifbank.com.tr Tel (90-212) 316 7390 Fax (90-212) 316 7126 www.vakifbank.com.tr Disclaimer Notice: This report has been prepared by Vakifbank, Investor Relations Department and i

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