Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR
Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — Investor Presentation (December 2012)
42 slides from Turkiye Is Bankasi Anonim Sirketi's investor presentation, Dec 31, 2012
Slide 1: Isbank Investor Presentation 2012
ISBANK ( INVESTOR \ PRESENTATION 2012
Slide 2: Disclaimer
The information in this document has been obtained by Turkiye Is Bankasi A.S. (“Isbank”) from sources believed to be reliable, however, Isbank cannot guarantee the accuracy, completeness , or correctness of such information. This document has been issued for information purposes only. The financial
Slide 3: Agenda
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 Major Equity Participations 36 2
Slide 4: Isbank at a Glance
Financial Highlights 9 Retail Banking 31 Major Equity Participations 36 3
Slide 5: Isbank at a Glance: Shareholders and Branch Network
FreeFloat Free Float 31,18% Stocks are quoted at ISE and also traded at LSE in the form Ataturk Shares of GDR Isbank Pension Fund 28,09% Largest stake owned by employees via pension fund (*) 40,73% 1,231 domestic branches country-wide (Largest among private banks), and 19 foreign branches 4,
Slide 6: Main Business Lines
Main Business Lines... Banking Services Other Financial Services i — ee : — i EEE —- ee ae
Slide 7: Market Shares and Rankings
Market Share (%) Rank(2) 2012 Total Assets (1) 13.5 1st Loans(1) Total Loans 14.2 1st TRY Loans 13.1 1st FX Loans 17.2 1st Consumer Loans(3) 12.0 1st Deposits(1) TRY Deposits 12.9 1st FX Deposits 15.4 1st Demand Deposits 15.5 1st Total Deposits 13.7 1st Sharehoder’s Equity(1) 12.6 1st Retail Product
Slide 8: Financial Highlights
Isbank at a Glance 5 Retail Banking 31 Major Equity Participations 36 7
Slide 9: Total Assets, Loans, Deposits, Shareholders' Equity
Total Assets (TRY mn.) Loans (TRY mn.) 175,444 106,716 161,669 91,621 131,796 113,223 64,232 97,552 47,610 48,335 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Deposits (TRY mn.) Shareholders’ Equity (TRY mn.) 105,383 98,313 22,719 88,260 72,177 17,014 17,921 63,539 13,494 9,449 2008 2009 2010 2
Slide 10: Asset Composition
(TRY mn.) 2011 2012 Change Asset Composition Cash & Banks 16,034 17,391 8% Cash & Banks 10% 10% Securities (Net) 42,778 38,055 -11% 22% 26% Securities Loans 91,621 106,716 16% Participations (Net) 6,275 7,700 23% Loans Fixed Assets (Net) 1,983 1,999 1% 57% 61% Participations Other Assets 2,977 3,585
Slide 11: Loan Portfolio
Loan Portfolio QoQ (TRY mn.) Loans / Deposits 106,716 93.2% 101.3% 97.1% 98,185 90.6% 65,203 71,415 32,983 35,301 2011 2012 TRY FX * Total 2012 Q3 2012 Q4 Loans/Deposits Loans/Deposits (Adj.)* * 8% increase in FX loans when adjusted for the change in exchange rate. * TL securities issued added to de
Slide 12: Total Loans and Consumer Loans
… 51% comprised of retail and Total Loans Consumer Loans (TRY mn.) SME loans. 18,833 22,378 21% 21% Retail Loans General Purpose 7% 8% 29% 50% 50% Consumer Loans Auto Loans 22% 22% Consumer * Credit Cards 6% 6% Housing Loans SME** Retail Overdraft 51% 49% 42% 43% Corporate & Commercial 1% 1% 2011 20
Slide 13: NPL Ratio and Management of NPLs
NPL Ratio Management of NPLs 79% coverage ratio, above sector average… 0.7% 0.6% 0.0% 0.2% 0.1% 483 487 2.1% 2.1% 1.9% 2.1% 1.9% 409 342 263 221 182 145 192 182 146 160 36 29 TRY mn. 2011 12 Q1 12 Q2 12 Q3 12 Q4 -4 11 Q4 12 Q1 12 Q2 12 Q3 12 Q4 Coverage Additio ns to NPLs Recoveries Net NPL Formatio
Slide 14: NPL Ratio by Loan Categories
NPL Ratio by Loan Categories NPL Breakdown 5.2% 3.5% 1.5% 1.6% 2.1% 1.9% 94% 96% 97% 99% 98% Consumer* Credit Cards Total Loans 6% 4% 3% 1% 2% 2011 2012 2008 2009 2010 2011 2012 * Includes retail overdraft accounts. Restructured Other NPLs Performing Loan Groups 98.2% 1.8% I. Group Loans II. Group L
Slide 15: Breakdown of Securities Portfolio
Breakdown of Securities Portfolio Total Portfolio TRY 42.8 FX Floating Discount & 38.1 3.2% Fixed 32.5 31.7 32.3% TRY Floating FX Discount 51.0% & Fixed 10.3 5.5 6.4 3.6 13.5% 2011 2012 TRY Securit ies (TRY bn.) FX Securities (TRY bn.) FX Securiti es * (USD bn.) Total Securities (TRY bn.) * USD equi
Slide 16: Liabilities Composition
(TRY mn.) 2011 2012 Change Liabilities Composition Deposits 98,313 105,383 7% 11% Equity 13% REPOs & Money Market 19,461 13,519 -31% 7% Other Funds Borrowed 11,148 10,748 -4% 2% 10% 7% 4% Securities Issued 3,781 6,364 68% 6% Securities 12% Issued 8% Other 11,043 16,711* 51% Funds Borrowed Equity 17,
Slide 17: Deposit Base
... a clear indicator of customer trust. Deposit Base 105.4 98.3 88.3 65.0 59.6 60.3 38.0 40.4 28.7 20.2 22.6 18.6 2010 2011 2012 Deposit Base TRY Deposits (TRY bn.) Deposit Base FX Deposits (TRY bn.) Deposit Base FX Deposits * (USD bn.) Deposit Base Total Deposits (TRY bn.) * USD equivalent. 16
Slide 18: Deposits and Market Shares
Deposits QoQ (TRY mn.) Market Shares 15.7% 15.4% 105,383 13.4% 14.2% 13.7% 12.9% 101,628 62,762 64,990 38,866 40,394 2011 2012 TRY FX * Total 2012 Q3 2012 Q4 TRY Deposits FX Deposits Total Deposits * 4% increase in FX deposits when adjusted for the change in exchange rate. Deposits YtD (TRY mn.) Lar
Slide 19: Demand Deposits
…make significant contribution to lower cost of Demand Deposits (TRY mn.) Share of Demand Deposits in Total Deposits funding. 20,947 18,627 14,469 55% 55% 80.1% 11,259 64% 8,788 19.9% 60% 54% 45% 45% 40% 36% Demand Deposits Other Deposits 46% 2008 2009 2010 2011 2012 TRY FX 18
Slide 20: Client Assets
... has reached a remarkable Client Assets (TRY mn.) No. Of Investment Accounts (000) total of TRY 164 billion. 164,173 10.623 141,481 10.062 133,835 8.838 On-Balance Sheet 107,320 90,617 7.498 64% 6.158 69% 66% 67% 70% 13% 9% 10% 14% 13% Off-Balance Sheet 6% 6% 11% 5% 5% 4% 18% 18% 12% 2008 2009 20
Slide 21: Capital Adequacy
Capital Adequacy Regulatory Capital (TRY mn.) CAR supports balance sheet growth going forward… Basel II 24,740 21,531 20,546 19,766 19,263 18,851 18,631 16.3% 18,160 17,207 17,183 14.2% 14.2% 14.1% 13.9% 13.0% 13.0% 12.6% 12.5% 12.4% 11 Q4 12 Q1 12 Q2 12 Q3 12 Q4 11 Q4 12 Q1 12 Q2 12 Q3 12 Q4 CAR Ti
Slide 22: Operating Income Composition (Quarterly)
Change (TRY mn.) 2012 Q3 2012 Q4 QoQ Operating Income Composition Net Interest Income 1,515 1,672 10% Net Fees & Commissions 406 501 23% NII Net Trading Gains/Losses -11 326 ++ 69% 59% Net Commissions Dividends Received - - - (1) 247 222 -10% Released Provisions 18% Othe r Income Gains on Asset Sale
Slide 23: Operating Income Composition (Yearly)
Change Operating Income Composition (TRY mn.) 2011 2012 YoY Net Interest Income 4,562 5,928 30% NII Net Fees & Commissions 1,429 1,706 19% Net Trading Gains/Losses 306 590 93% 56% 60% Net Commissions Dividends Received 556 418 -25% (1) Released Provisions 1,063 924 -13% 18% Net Trading 17% Income Ga
Slide 24: Fees and Commissions Received
... supported by superior Fees and Commissions Received (Gross) Gross Commission Income (TRY mn.) retail and corporate franchise. (TRY thousand) 2011 2012 Change Non-Cash Loans 134,307 183,830 37% Credit Appraisal 192,909 248,521 29% 1,919 Mutual Fund Man. & Other Inv. 1,594 244,360 138,334 -43% Acc
Slide 25: Net Interest Margin
NIM Adj. NIM * 5.54% 5.01% 4.69% 4.24% 3.85% 3.83% 3.50% 3.48% 2011 2012 2011 2012 NIM NIM exc. reserves at Central B ank NIM NIM exc. reserves at Central Bank * Adjusted for Securities Trading Gains / Losses and Foreign Exchange Gains / Losses 24
Slide 26: Cost / Income
Cost / Income Cost vs. Income (TRY mn.) 45.2% 45.7% 40.6% 42.6% 34.0% 9,814 8,163 4,484 3,481 2008 2009 2010 2011 2012* 2011 2012 * 2012 reported OPEX includes provisions for employee dividends and the Cost Income possible salary increase. When adjusted for one-off pension fund liability of TL 440 m
Slide 27: ROAE and ROAA
ROAE ROAA 29.1% 28.7% 2.4% 2.3% 2.2% 22.6% 23.1% 2.1% 2.0% 21.0% 20.4% 1.8% 1.8% 19.9% 1.7% 16.5% 1.5% 1.5% 15.6% 15.2% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 ROAE ROAE* ROAA ROAA* * Banking business (Excluding equity participations portfolio) 26
Slide 28: Market Cap Comparison and Earnings & Payout Ratio
Market Cap. Comparison (TRY mn.) Earnings & Payout Ratio 32.7% 32.1% 36.1% 34.6% 27.883 23.2% 23.2% 20,3% 32.4%** 24.836 19.450 2.982 14.963 2.667 2.372 11.342 1.702 1.509 1.109 956 2008 2009 2010 2011 2012 Isbank is included in the following indices: 635 • ISE-100 2004 2005 2006 2007 2008 2009 2010
Slide 29: Rating Outlook
Rating Outlook Rating Outlook Global Scale Long Term FC IDR BBB Stable Long Term Counter Party Credit BB+ Stable Long Term LC IDR BBB Stable Long Term Certificate of Deposits BB - Short Term FC IDR F3 - Short Term Counter Party Credit B - Short Term LC IDR F3 - Short Term Certificate of Deposits B -
Slide 30: Retail Banking
Isbank at a Glance 5 Financial Highlights 9 Major Equity Participations 36 29
Slide 31: Credit Cards
36 different products for different customer segments 197,339 Sales Points and 265,554 chains are included İn loyalty programme. The number of cards reached 8.8 million, 5.9 million of which are issued to Bank’s own customers. The first bank in Turkey which has made an agreement with the world’s fou
Slide 32: Isbank is the market leader in mutual fund business
Isbank is the market leader in mutual fund business. 31
Slide 33: Mutual Funds
... 31 types of mutual funds Mutual Funds (TRY mn.) Number of Investors designed for different risk appetites 7.090 801.402 826.292 6.776 6.430 6.508 693.003 646.754 5.165 590.000 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Income From Funds (TRY mn.) With 8 equity (A type), 23 fixed income (B
Slide 34: Payroll Accounts and Automated Bill Payments
... supported by payroll accounts and bill Payroll Accounts Automated Bill Payments payment agreements 25.824 23.234 21.885 19.910 6.149.842 5.941.780 2011 2012 2011 2012 Amount (TRY million) Amount (TRY million) Number of Active Payments Number of payroll accounts is 1,254,787 as of 31.12.2012. Aut
Slide 35: Major Equity Participations
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 34
Slide 36: As one of the biggest conglomerates in Turkey
...as one of the biggest conglomerates in Turkey. 35
Slide 37: Sectoral Breakdown
Sectoral Breakdown Financial Non-Financial 45,0% 55,0% Telecom Other Banks 10,3% 6,8% Glass 18,2% 37,9% Insurance Non-financial Financial 16,2% Financial Ins. TRY 4.8 billion 10,6% Non - Listed 27,8% Listed 72,2% As of 31 December 2012, Isbank has 22 participations. TRY 4.8 Since the end of 2002, a
Slide 38: Şişecam
Isbank (65%) General Information Market/Production Shares (%) * A leading flat glass, glassware, glass packaging, glass Turkey Europe2,3 World3 fibre, soda ash and chromium chemicals producer in the Flat Glass 74.0 13.5 3.8 domestic market. Backed by its vision, Şişecam expands its production Gl
Slide 39: Production Facilities in Neighbouring Countries
The Group obtains efficiency and spreads its operational risk by positioning its production facilities in the fast growing neighbouring countries. * Flat Glass Glassware Glass Packaging Chemicals and Mining • Flat glass investment in Russian Federation is planning to be completed by 2013. • One inve
Slide 40: Avea
İşbank* 10.0035% Turk Telekom 89.9965% Avea has been created through the merger of Aria and Aycell in February 2004. After the merger, due to the integration of 2 GSM networks, not only the coverage and efficiency have increased significantly, but also substantial operational synergies have been cre
Slide 41: Major Subsidiaries and Affiliates
Field of Bank’s Direct Risk Group Assets Shareholders’ Market Share Basis for Market Company Name Activity Share(%) Share (%) (USD 000) (3) Equity (USD 000) (3) (%) (3) Share Türkiye Sınai Kalkınma Bankası A.Ş. Investment Bank 40.52 50.00 5,537,800 908,194 19.7 Total Assets İşbank AG Banking 100.00
Slide 42: Investor Relations Contacts
Süleyman H. Özcan Head of Investor Relations Division Phone : + 90 212 316 16 02 E-mail : suleyman.ozcan@isbank.com.tr Alper Turgal Unit Manager of Investor Relations Division Phone : + 90 212 316 16 10 - 316 95 42 E-mail : alper.turgal@isbank.com.tr
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