Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — FY2014 Earnings Presentation

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

  1. Slide 1: 2014 Earnings Presentation

    2014 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: Slide 2

  3. Slide 3: Macro Outlook

    2014 Earnings Presentation Macro Outlook > Not much change in the expectations regarding the timing of FED rate > Benchmark bond yield recorded almost 200 bps decrease QoQ from 10.0% hike, mid-15 seems to be the strongest consensus. to 8.0% in Dec-14, now hovering around these levels. > Globally dis

  4. Slide 4: Banking Sector Overview

    2014 Earnings Presentation Banking Sector Overview > Total loan growth at 18.5% YoY, reaching TRY 1,241 bn. > NPL ratio somewhat increased annually to 2.9%, coverage TRY loans increased 17.0% whereas FX loans grew ratio declined to 73.8%. 12.5% in USD terms. > Net income of the sector as of yearend

  5. Slide 5: 2014 Highlights

    2014 Earnings Presentation 2014 Highlights > Aggregate net income of TRY 2,206 mn as of YE 2014, > Moderate growth in deposits at 2.9% YoY, being price quarterly net income at TRY 442 mn. sensitive led to a shift towards alternative sources of > RoE and RoA sustained above sector average at 14.4% fu

  6. Slide 6: 19.8% decrease in net income due to one-off NPL formation

    2014 Earnings Presentation 19.8% decrease in net income due to one-off NPL formation Net Income (TRY million) 741 2,751 646(a) 2,410(a) 632 601 2,206 530 442 YoY Change (%) > 5.9% Net Interest Income > 10.0% Net Fees & Commissions > -0.7% Total Operating Income > -19.8% Net Income Q4-13 Q1-14 Q2-14

  7. Slide 7: Asset Growth and Securities Portion

    2014 Earnings Presentation Share of loans increased to 65.5%, further down in securities Asset Growth IEA Securities YoY 11.1% QoQ 3.7% 82.5% Portion 17.3% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 43.5% Loans Cash & CBRT Securities Other Assets 11.1% 83.2% 81.3% 82.5% 15

  8. Slide 8: Securities share in total decreased to 17.3%

    2014 Earnings Presentation Securities share in total decreased to 17.3% Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 21.2 20.4 18.5 17.3 CPI-Linked (TRY 8.8 bn) 28.6 27.7 32.7% 26.8 22.9 3.3 12% 4.0 14% 4.2 16% FX 2.2 10% Fixed Rate 50.1% 25.2 8

  9. Slide 9: SME and corporate driven loan growth

    2014 Earnings Presentation SME and corporate driven loan growth (TRY billion)(a) 19.0% 6.3% Total Loans 99.2 HALKBANK B. Sector(b) 93.4 1.2 YoY YoY 83.4 1.1 6.7 Commercial Loans 19.0% 18.5% QoQ QoQ 5.9 YoY 15.2% 1.1 6.3% 4.5% 5.8 QoQ 13.9% 26.5 64.8 Corporate Loans TRY Loans 1.2 24.9 YoY 18.9% HALKB

  10. Slide 10: Low exposure of SME in FX lending

    2014 Earnings Presentation Low exposure of SME in FX lending Loans by Currency (%)(a) Interest Structure (%)(a) SME 6.1% Commercial 2.7% Corporate 18.6% Fixed 46.3% FX TRY 27.4% 72.6% Floating 53.7% Sectoral Breakdown of Loans (%)(a) Loans by Customer Segmentation (%)(a) Other 5% Tourism 3% Corporat

  11. Slide 11: Continued momentum in retail loans

    2014 Earnings Presentation Continued momentum in retail loans (TRY billion)(a) 9.5% 4.8% Credit Cards (Thousand) 25.7 # of Credit Cards 3,419 HALKBANK 24.5 # of POS 261 YoY 23.5 # of Merchants 223 9.5% QoQ 17.6 12.4 4.8% 11.7 Consumer Loans 11.6 YoY 6.9% QoQ 6.1% B. SECTOR(b) 9.6 Share in total 48.2

  12. Slide 12: NPL ratio and coverage ratio start improving again

    2014 Earnings Presentation NPL ratio and coverage ratio start improving again NPL Portfolio (TRY million) NPL Coverage (%) 3,667 3,700 82.5 80.6 1,079 One off 1,076 65.2 2,245 59.3 1,960 2012 2013 Sep-14 2014 2012 2013 Sep-14 2014 Loans under Close Watch (TRY million) NPL/Total Loans (%) Loans under

  13. Slide 13: NPL ratio by segments

    2014 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) (a) Consumer Loans (%) (a) 5.2 5.1 3.9 4.0 3.6 3.6 3.1 2.4 2.4 2.4 2.2 2.2 2.0 2.1 2.1 2.1 1.9 1.7 2.0 2.1 2.1 2.0(b) 2013 Mar-14 Jun-14 Sep-14 2014 2013 Mar-14 Jun-14 Sep-14 2014 SME Loans (%)(a)

  14. Slide 14: Despite a challenging year, CoR stood at 94 bps

    2014 Earnings Presentation Despite a challenging year, CoR stood at 94 bps Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 190 123 110 One off 94 143 94 84 78 70 70 69 64 48 70 70 58 2013 Mar-14 Jun-14 Sep-14 2014 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cos

  15. Slide 15: Diversifying funding and favorable LDR at 98.1%

    2014 Earnings Presentation Diversifying funding and favorable LDR at 98.1% IBL 84.4%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 82.9% 85.3% 84.7% 84.4% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity

  16. Slide 16: Strong TRY funding capacity

    2014 Earnings Presentation Strong TRY funding capacity HALKBANK B. Sector(b) FX Dep. YoY -5.3% 11.3% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ -5.2% -1.6% in USD YoY -12.7% 2.6% Total Dep. YoY 2.9% 11.3% TRY Dep. YoY 7.5% 11.3% terms QoQ -7.2% -3.8% QoQ 2.2% 3.2% QoQ 6.2% 6.3% Total Deposits T

  17. Slide 17: Demand deposits' share in total increasing

    2014 Earnings Presentation Demand deposits’ share in total increasing Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 18.2% 18.9% 82.9% 83.1% 81.8% 17.1% 16.9% 81.1% FX 32% 6.8% -6.9% 7.4% 2.7

  18. Slide 18: Cost – Yield – Spread

    2014 Earnings Presentation Cost – Yield – Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 5.7 5.3 4.8 4.8 5.0 4.9 5.0 4.9 4.6 4.7 4.6 4.3 4.1 4.0 3.3 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Yield on Loans (%)(b) Yield on Securities (%) 10.0 10.4 9.6 9.9 9.8 9.9

  19. Slide 19: Net interest income up 8.1% QoQ and 5.9% YoY

    2014 Earnings Presentation Net interest income up 8.1% QoQ and 5.9% YoY Net Interest Income (TRY million) Interest Income Interest Expenses Breakdown of Interest Income (%) 15.1% 5.9% 8.1% 5,112 4,829 1,227 1,309 1,414 23% 1,162 on Securities 1,229 2,734 2,920 2,814 2,984 9,205 11,471 2,552 (1,323)

  20. Slide 20: Double-digit increase in net fees and commissions

    2014 Earnings Presentation Double-digit increase in net fees and commissions; 10% YoY, 20.8% QoQ Net Fees & Commissions Income (TRY million) 23.7% 10.0% 20.8% 1,023 303 930 251 245 247 222 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 2013 2014 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating

  21. Slide 21: OpEx under control despite rebates of fees and commissions

    2014 Earnings Presentation OpEx under control despite rebates of fees and commissions Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 12.5% 8.4% 2,987 2,655 2,878 2.1 2.0 2.0 697 748 757 793 689 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 2013 2014 (a) 2014 2013 Sep-14 2014 Cost/Income (%

  22. Slide 22: Solvency Ratios

    2014 Earnings Presentation Solvency Ratios CAR (%) Tier-1 CAR Basel – II Basel – III 14.4 Details on Capital Ratio 13.9 13.9 13.6 13.6 13.4 Basel III 12.7 12.9 (TRY mn) 2014 12.7 12.9 Credit Risk Base Amount (CRBA) 113,677 Market Risk Base Amount (MRBA) 3,218 Operational Risk Base Amount (ORBA) 10,1

  23. Slide 23: Branch Network - Human Resources

    2014 Earnings Presentation Branch Network - Human Resources > 23 new branches opened in 2014. > Total branch number reached 895. Employee per Branches Utilization of Banking Distribution Channels (%) Automatic Payment 6% Internet Banking 23% Sector Halkbank 18 19 Mobile Banking 2% ATM 49% Branch 13%

  24. Slide 24: Balance Sheet

    2014 Earnings Presentation Balance Sheet QoQ YoY In TRY million 2013 Sep-14 2014 Change% Change% Cash and Balances Held with the Central Bank(a) 19,976 19,253 20,276 5.3 1.5 Banks & Money Market (b) 1,849 1,457 1,284 (11.9) (30.6) Securities (b) 28,559 27,728 26,844 (3.2) (6.0) Net Loans (b) 84,848

  25. Slide 25: Income Statement

    2014 Earnings Presentation Income Statement YoY QoQ YoY Change Change Change In TRY million 2013 2014 % Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 % % Interest Income 9,205 11,451 24.4 2,552 2,734 2,920 2,814 2,984 6.1 16.9 On Loans 7,134 8,781 23.1 1,903 2,017 2,158 2,242 2,363 5.4 24.2 On Securities 2,053 2,65

  26. Slide 26: Notes

    2014 Earnings Presentation Notes Financial Institutions and Investor Relations 24 www.halkbank.com.tr

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  28. 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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