Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — H1 2014 Earnings Presentation

26 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2014

  1. Slide 1: H1 2014 Earnings Presentation

    BRSA Bank Only H1 2014 Earnings Presentation

  2. Slide 2: Macro Outlook

    H1 2014 Earnings Presentation Macro Outlook > FED continued to taper its QE program as expected to USD 35 bn in > CBRT cut one-week repo rate to 8.25% from 10% in three tranches June. According to the committee, economic activity is expected to while reducing lower end of interest rate corridor to 7

  3. Slide 3: Banking Sector Overview

    H1 2014 Earnings Presentation Banking Sector Overview > Loan growth 3.8% QoQ whereas deposit growth was > May-14 cumulative NIM remained flat at 4.0%. below loan growth at 1.8%. > RoE and RoA reached 12.1% and 1.4% as of > Retail loans up 1.8% QoQ, auto loans and credit May-14 respectively. cards de

  4. Slide 4: Q2 2014 Highlights

    H1 2014 Earnings Presentation Q2 2014 Highlights > Net income at TRY 1,163 mn. Quarterly net income > USD 500 mn Eurobond issuance was completed at TRY 632 mn, up 19.2% QoQ. successfully. > Ouarterly RoE at 17.0% and RoA at 1.8%. > L/D ratio increased to 98.2%, still at a quite > Quarterly NIM recov

  5. Slide 5: Bottomline reflecting improving conditions

    H1 2014 Earnings Presentation Bottomline reflecting improving conditions Net Income (TRY million) 19.2% 715 741 632 582 530 QoQ Change (%) > 5.6% Net Interest Income > 11.5% Net Fees & Commissions > 17.7% Total Operating Income > 19.2% Net Income Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 RoE (%) RoA (%) YtD Qua

  6. Slide 6: Interest earning assets remained stable

    H1 2014 Earnings Presentation Interest earning assets remained stable Asset Growth IEA Securities YoY 23.5% YtD 2.7% 83.3% portion 19.4% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) Loans Cash & CBRT 23.5% 2.7% 82.1% 81.3% 82.2% 83.3% Amount Securities Other Assets (TRY bn)

  7. Slide 7: Increasing TRY securities yield backed by CPIs, 11.1% in H114

    H1 2014 Earnings Presentation Increasing TRY securities yield backed by CPIs, 11.1% in H114 Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 20.4 20.6 19.4 18.1 CPI-Linked (TRY 9.2 bn) 29.9 32.9% 28.6 27.9 21.0 3.3 12% 3.6 12% 3.7 13% 2.1 10% 25.2 8

  8. Slide 8: SME loans gathered pace: QoQ 11.1% growth

    H1 2014 Earnings Presentation SME loans gathered pace : QoQ 11.1% growth (TRY billion)(a) 8.4% Total Loans 3.6% HALKBANK B. Sector (b) 90.4 YtD YtD 87.2 8.4% 7.2% 83.4 1.1 1.1 QoQ QoQ 78.9 1.1 6.1 5.0 Commercial Loans 3.6% 3.8% 72.6 1.1 5.8 YtD -12.5% 5.5 QoQ -16.6% 1.1 TRY Loans 4.9 24.5 24.8 Corpo

  9. Slide 9: Focus on high yielding customer segments

    H1 2014 Earnings Presentation Focus on high yielding customer segments Loans by Currency (%)(a) Interest Structure (%)(a) SME 5.8% Commercial 2.7% Fixed Corporate 19.3% 46.9% FX TRY 27.7% 72.3% Floating 53.1% Sectoral Breakdown of Loans (%)(a) Loans by Customer Segmentation (%)(a) Other 5% Tourism 3

  10. Slide 10: Improving sentiment starts supporting retail loan growth

    H1 2014 Earnings Presentation Improving sentiment starts supporting retail loan growth (TRY billion)(a) 1.8% 1.7% HALKBANK 23.5 23.5 23.9 YtD 22.6 1.8% 21.1 QoQ 1.7% Consumer Loans 11.6 11.2 11.3 11.5 YtD -2.3% 11.2 QoQ 0.6% B. SECTOR(b) Share in total 47.3% YtD 2.0% QoQ Housing Loans 1.8% 9.1 9.4 9

  11. Slide 11: Credit card business on track despite regulatory challenge

    H1 2014 Earnings Presentation Credit card business on track despite regulatory challenge # of Credit Cards (Thousand) # of POS (Thousand)(b) Credit Risk Balance (TRY Million) 2,776 # of Merchants (Thousand) 2,680 206 212 2,328 2,633 1,981 3,328 248 3,235 3,249 3,316 131 137 240 3,048 122 138 143 163

  12. Slide 12: Low NPL generation and increasing coverage

    H1 2014 Earnings Presentation Low NPL generation and increasing coverage NPL Portfolio (TRY million) NPL Coverage (%) 2,425 2,493 2,134 2,245 81.9 78.4 2,068 81.5 80.6 77.4 76.1 Since 2002 497 499 484 Legacy NPLs 482 481 2001 and before Jun-13 Sep-13 2013 Mar-14 Jun-14 Jun-13 Sep-13 2013 Mar-14 Jun-

  13. Slide 13: Sustained asset quality improving in SME loans

    H1 2014 Earnings Presentation Sustained asset quality improving in SME loans Halkbank NPL Sector NPL (a,b) Corporate - Commercial (%)(a) Consumer Loans (%)(b) 3.6 2.5 2.5 3.2 3.2 2.4 2.4 2.4 3.1 3.0 2.1 2.0 2.0 1.7 1.9 1.8 1.8 1.8 1.6 1.5 Jun-13 Sep-13 2013 Mar-14 Jun-14 Jun-13 Sep-13 2013 Mar-14 Ju

  14. Slide 14: CoR stable at 70 bps

    H1 2014 Earnings Presentation CoR stable at 70 bps Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 93 70 70 81 70 65 64 70 70 69 49 61 56 58 49 Jun-13 Sep-13 2013 Mar-14 Jun-14 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (bps) (Specific Provisions-

  15. Slide 15: Alternative funding sources utilized more effectively

    H1 2014 Earnings Presentation Alternative funding sources utilized more effectively IBL 84.1%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 84.3% 85.3% 85.0% 84.1% Funds Borrowed Securities Issued 114.6 Interbank Money Market Shareh

  16. Slide 16: Solid core saving deposit

    H1 2014 Earnings Presentation Solid core saving deposit HALKBANK B. Sector (b) FX Dep. YtD -1.3% 3.3% HALKBANK B. Sector (b) HALKBANK B. Sector (b) QoQ -2.7% -4.8% Total Dep. YtD -6.9% 3.3% TRY Dep. YtD -9.9% 3.3% in USD YtD -0.4% 4.3% QoQ -6.3% 1.8% QoQ -8.3% 6.6% terms QoQ -0.8% 3.0% Total Deposit

  17. Slide 17: Strengthening demand deposit base, volume and share increased

    H1 2014 Earnings Presentation Strengthening demand deposit base, volume and share increased Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 19.1% 83.9% 18.2% 83.1% 16.9% 16.1% 81.8% 80.9% FX 3

  18. Slide 18: Cost – Yield – Spread

    H1 2014 Earnings Presentation Cost – Yield – Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 5.7 6.0 5.3 4.3 4.8 4.1 5.1 4.9 4.6 4.7 4.6 4.3 3.9 4.1 3.7 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Yield on Loans (%)(b) Yield on Securities (%) 10.0 10.4 10.0 9.6 9.9

  19. Slide 19: NIM starts to pick up

    H1 2014 Earnings Presentation NIM starts to pick up Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses 5.6% 1,162 1,227 26% on Securities 1,153 1,229 1,203 2,254 2,734 2,920 2,552 2,138 2,261 (935) (1,108) (1,323) 74% on Loans (1,572) (1,693) Q2-13 Q

  20. Slide 20: QoQ 11.5% growth in NFC

    H1 2014 Earnings Presentation QoQ 11.5% growth in NFC Net Fees & Commissions Income (TRY million) 11.5% 4.9% 247 469 245 447 229 238 222 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 H1-13 H1-14 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenues (%) Insurance 6% Corporate 12% 15.5 15.1

  21. Slide 21: C/I ratio now improving

    H1 2014 Earnings Presentation C/I ratio now improving Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 8.9% 748 1,437 697 689 1,320 2.4 673 638 2.2 2.1 2.0 2.0 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 H1-13 H1-14 Jun-13 Sep-13 2013 Mar-14 Jun-14 Cost/Income (%) Breakdown of Operating Ex

  22. Slide 22: Solvency Ratios

    H1 2014 Earnings Presentation Solvency Ratios Capital Ratios (%) Details on Capital Ratio Basel – II Basel – III Basel III (TRY mn) Jun-14 14.7 14.4 14.0 13.9 13.9 Credit Risk Base Amount (CRBA) 100,543 13.3 12.7 12.7 12.9 13.4 Market Risk Base Amount (MRBA) 3,208 Operational Risk Base Amount (ORBA)

  23. Slide 23: Branch Network - Human Resources

    H1 2014 Earnings Presentation Branch Network - Human Resources > 8 new branches opened YtD. > Total branch number reached 880. Loans-Deposits-Employee per Branches ATMs Deposits/Branches (TRY mn) Loans/Branches (TRY mn) Employees/Branches 115.5 114.7 106.7 3,061 3,238 95.5 2,961 104.8 2,736 97.3 101

  24. Slide 24: Balance Sheet

    H1 2014 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million H1-13 2013 Q1-14 H1-14 Change% Change% Change% Cash and Balances Held with the Central Bank(a) 15,226 19,976 19,534 17,413 (10.9) (12.8) 14.4 Banks & Money Market(b) 2,114 1,849 2,227 1,077 (51.6) (41.7) (49.0) Securities(b) 21,0

  25. Slide 25: Income Statement

    H1 2014 Earnings Presentation Income Statement In TRY million YoY QoQ H1-13 H1-14 Change% Q4-13 Q1-14 Q2-14 Change% Interest Income 4,392 5,654 28.7 2,552 2,734 2,920 6.8 On Loans 3,448 4,176 21.1 1,903 2,017 2,158 7.0 On Securities 934 1,469 57.2 645 712 757 6.3 Interest Expense 1,944 3,265 67.9 1,

  26. Slide 26: For further information please contact

    For further information please contact halkbankir@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 th

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