Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — H1 2018 Earnings Presentation
28 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2018
Slide 1: H1 2018 Earnings Presentation
H1 2018 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
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Slide 3: Strong Fundamentals
H1 2018 Earnings Presentation Strong Fundamentals LDR maintained at comfortably low level of 107% vs Volume Growth Loans 17.5% YtD & Deposits 14.5% YtD sector average of 124% Smooth transition to IFRS 9, further improving asset quality with Asset Quality NPL Ratio 2.7% & CoR (a) 53 bps a total NPL c
Slide 4: Operational Environment
H1 2018 Earnings Presentation Operational Environment Macroeconomic Indicators Banking Sector Metrics H1-17 H1-18 H1-17 H1-18 GDP Growth (%) 5.4 TBA Loan Growth (YtD, %) 10.7 12.1 CPI (%) 10.9 15.4 Deposit Growth (YtD, %) 8.6 11.0 CAD / GDP (%) -3.8 -6.2(a) LDR (%) 121.6 123.9 Unemployment (%) 10.2
Slide 5: Strong performance mirrored in recovering profitability
H1 2018 Earnings Presentation Strong performance mirrored in recovering profitability Total Operating Revenues (TRY million) Net Income (TRY million) 6.0% 40.8% 2,812 1,113 2,615 2,644 2,654 1,009 2,167 782 790 715 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 RoE (%) RoA (%) YtD Quart
Slide 6: Solid asset growth, 31.5% YoY
H1 2018 Earnings Presentation Solid asset growth, 31.5% YoY The total amount of Securities Borrowed increased to TRY 15 bn. by the end of H1-18. Despite being booked under trading securities, this portfolio generates neither interest income nor gain/loss from MtM revaluation into the P&L. Asset Grow
Slide 7: Changing composition of securities prevented further MtM losses
H1 2018 Earnings Presentation Changing composition of securities prevented further MtM losses Total Securities Portfolio (TRY billion)(a) Interest Structure (%) Total Securities / Total Assets (%) 17.7 16.0 15.6 14.0 61.5 CPI-Linked (TRY 13.0 bn) 28.4% 48.9 49.9 10.1 16% 36.9 8.1 17% 8.2 16% Fixed R
Slide 8: Boosted SME growth, also lifted by amended definition
H1 2018 Earnings Presentation Boosted SME growth, also lifted by amended definition CGF Utilization (TRY Bn) Total Limit Mar-18 23.6 Jun-18 28.1 (TRY billion)(a) Living Loan Amount 20.9 24.6 17.5% Total Loans 10.2% HALKBANK B. Sector(b) The definition of YtD YtD 234.1 Commercial Loans SMEs has been
Slide 9: Granular and well-diversified loan portfolio
H1 2018 Earnings Presentation Granular and well-diversified loan portfolio Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 6.1% SME 41% Commercial 0.6% Commercial 6% Corporate 24.7% Corporate 33% Cooperative 13%(b) TRY FX 68.6% 31.4% Retail 20% Sectoral Breakdown of Loans (%)(a) R
Slide 10: Further market share gains in retail lending
H1 2018 Earnings Presentation Further market share gains in retail lending (TRY billion)(a) 25.0% HALKBANK 12.2% YtD 10.5% 12.2% 46.3 QoQ 41.3 41.9 10.5% 18.0 Consumer Loans 37.1 17.0 17.2 YtD 5.9% B. Sector(b) 15.7 QoQ 4.8% Share in total 39.0% YtD 5.3% Housing Loans 20.9 21.4 24.8 QoQ YtD 18.5% 3.
Slide 11: NPL ratio and coverage further improved
H1 2018 Earnings Presentation NPL ratio and coverage further improved Total NPL Coverage is ~111%.(a) NPL Portfolio (TRY million) NPL Coverage (%) 6,522 79.5 79.9 6,107 6,265 78.3 5,944 5,736 76.4 76.1 Jun-17 Sep-17 2017 Mar-18 Jun-18 Jun-17 Sep-17 2017 Mar-18 Jun-18 Loans under Close Watch (TRY mil
Slide 12: NPL ratio by segments
H1 2018 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) Consumer Loans (%) 5.3 5.0 4.8 4.7 4.5 3.4 3.4 3.3 2.8 2.7 2.2 2.1 2.1 2.2 2.1 2.0 1.9 1.9 1.9 2.1 Jun-17 Sep-17 2017 Mar-18 Jun-18 Jun-17 Sep-17 2017 Mar-18 Jun-18 SME Loans (%) Credit Cards (
Slide 13: Sustained CoR performance, 53 bps
H1 2018 Earnings Presentation Sustained CoR performance, 53 bps Cost of Risk (bps)(a) Net Cost of Risk (bps) YtD Quarterly General Provisions S1 Provisions S2 Provisions S3 Provisions Provision Reversals 80 65 39 6 38 45 13 19 34 9 14 4 70 68 68 59 54 53 50 41 54 53 62 (bps) 50 54 53 (21) (10) (17)
Slide 14: Comfortably low level of LDR & lesser reliance on FX wholesale funding
H1 2018 Earnings Presentation Comfortably low level of LDR & lesser reliance on FX wholesale funding IBL 84.0%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 86.2% 84.0% 84.8% 84.0% Funds Borrowed Securities Issued Interbank Money Ma
Slide 15: Growing deposit base, also reflecting depreciation impact
H1 2018 Earnings Presentation Growing deposit base, also reflecting depreciation impact HALKBANK B. Sector(b) YtD 21.0% 18.6% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 14.7% 13.1% in USD YtD 0.8% -1.2% YtD 14.5% 11.9% YtD 10.5% 6.3% terms QoQ -0.5% -1.9% QoQ 10.6% 7.4% QoQ 7.9% 2.6% Total Depo
Slide 16: Increasing share of demand deposits, 15.5%
H1 2018 Earnings Presentation Increasing share of demand deposits, 15.5% Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 15.8% 15.5% 84.2% 85.8% 85.7% 84.5% 14.2% 14.3% FX 41% 23.3% 26.0% 23.
Slide 17: Cost – Yield – Spread
H1 2018 Earnings Presentation Cost – Yield – Spread (a) Cost of Deposits (%) Spreads (%) On Loans On Securities 7.7 7.8 7.2 6.9 6.2 4.2 4.0 4.1 3.9 3.7 4.2 2.9 1.0 1.2 0.3 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Yield on Loans (%)(b) Yield on Securities (%) 11.4 11.8 11.2 10.4 10
Slide 18: NII improvement accompanied by soaring F&C
8 -6.36 3 H1 2018 Earnings Presentation NII improvement accompanied by soaring F&C Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly 11.8% -2.0% 9.4% 2,155 4.2 1,969 4,124 1,553 2,038 4,210 3.6 1,928 3.6 3.1 3.2 5.402 5.777 6,744 6,926 7,879 10,573 14,806 3.7
Slide 19: Opex / Average Assets stable at 1.6%
H1 2018 Earnings Presentation Opex / Average Assets stable at 1.6% Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 12.2% 19.2% (17.6% adj.)(b) 1,267 1,345 2,543 1.7 1.7 1.6 1.6 1,152 1,198 1,113 51 50 (a) 2,134 100 (a) 50 50 57 57 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 1H-17 1H-18 Ju
Slide 20: Solvency Ratios
H1 2018 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Basel III 14.0 13.8 14.2 13.4 13.2 (TRY mn) H1-18 Credit Risk Base Amount (CRBA) 218,445 13.0 12.7 12.6 Market Risk Base Amount (MRBA) 1,982 12.0 11.9 Operational Risk Base Amount (ORBA) 16,168 Total Risk Weigh
Slide 21: Branch Network – Human Resources
H1 2018 Earnings Presentation Branch Network – Human Resources > 9 new branches opened in the H1-18. > Total branch number reached 972. Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branch Deposits/Branch Internet Automatic Payment 5% 243.7 Banking 15% 223.0
Slide 22: Balance Sheet
H1 2018 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million H1-17 2017 Q1-18 H1-18 Change % Change% Change% Cash and Balances Held with the Central Bank(a) 35,258 36,373 35,384 33,599 (5.0) (7.6) (4.7) Banks & Money Market(b) 2,811 7,353 9,133 4,951 (45.8) (32.7) 76.2 Securities(b) 36,941
Slide 23: Income Statement
H1 2018 Earnings Presentation Income Statement QoQ YoY In TRY million H1-17 H1-18 YoY% Q2-17 Q1-18 Q2-18 Change% Change% Interest Income 10,573 14,806 40.0 5,402 6,926 7,879 13.8 45.9 On Loans 8,439 12,236 45.0 4,375 5,730 6,507 13.6 48.7 On Securities 1,957 2,268 15.9 930 1,056 1,211 14.7 30.3 Inte
Slide 24: Notes
H1 2018 Earnings Presentation Notes Financial Institutions and Investor Relations 22 www.halkbank.com.tr
Slide 25: Notes
H1 2018 Earnings Presentation Notes Financial Institutions and Investor Relations 23 www.halkbank.com.tr
Slide 26: Notes
H1 2018 Earnings Presentation Notes Financial Institutions and Investor Relations 24 www.halkbank.com.tr
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Slide 28: 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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