Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — 9M 2018 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2018

  1. Slide 1: 9M 2018 Earnings Presentation

    9M 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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  3. Slide 3: Asset Growth

    9M 2018 Earnings Presentation Comfortable FX liquidity The total amount of Securities Borrowed increased to TRY Asset Growth 15 bn. by the end of H1-18. Despite being booked under trading securities, this portfolio generates neither interest YoY 38.5% QoQ 11.2% income nor gain/loss from MtM revaluat

  4. Slide 4: Interest income backed by FRNs

    9M 2018 Earnings Presentation Interest income backed by FRNs Total Securities Portfolio (TRY billion)(a) Securities Classification (TRY billion) Total Securities / Total Assets (%) Other Floating Rate CPI Linkers Fixed Rate (TRY) Fixed Rate (FX) 17.7 18.9 16.0 13.7 58.2 73.3 46.4 13.2 61.5 13.2 18%

  5. Slide 5: SME heavy granular loan portfolio

    9M 2018 Earnings Presentation SME heavy granular loan portfolio CGF Utilization (TRY Bn) Total Limit Jun-18 28.1 Sep-18 29.3 (TRY billion)(a) Living Loan Amount 24.6 24.4 30.0% Total Loans 10.6% HALKBANK B. Sector(b) The definition of YtD YtD 30.0% 23.3% SMEs has been 259.0 Commercial Loans QoQ QoQ

  6. Slide 6: Low risk profile within loan portfolio

    9M 2018 Earnings Presentation Low risk profile within loan portfolio Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 6.1% SME 39% Commercial 1.5% Commercial 6% Corporate 29.3% Cooperative 12%(b) TRY FX 63.1% 36.9% Corporate 38% Retail 18% Sectoral Breakdown of Loans (%)(a) Retail

  7. Slide 7: Problematic loans below sector average

    9M 2018 Earnings Presentation Problematic loans below sector average Total NPL Coverage is ~113%.(a) NPL Portfolio (TRY million) NPL Coverage (%) 7,175 79.5 79.9 78.7 6,522 78.3 6,107 6,265 76.1 5,944 Sep-17 2017 Mar-18 Jun-18 Sep-18 Sep-17 2017 Mar-18 Jun-18 Sep-18 Loans under Close Watch (TRY mill

  8. Slide 8: NPL ratio by segments

    9M 2018 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) Consumer Loans (%) 5.0 4.8 4.7 4.5 4.7 3.4 3.3 2.8 2.7 2.4 1.9 2.1 2.1 2.1 2.2 2.1 2.2 1.9 1.9 2.2 Sep-17 2017 Mar-18 Jun-18 Sep-18 Sep-17 2017 Mar-18 Jun-18 Sep-18 SME Loans (%) Credit Cards (

  9. Slide 9: Cost of Risk below guidance

    9M 2018 Earnings Presentation Cost of Risk below guidance Cost of Risk (bps)(a) Net Cost of Risk (bps) YtD Quarterly General Provisions S1 Provisions S2 Provisions S3 Provisions Provision Reversals 134 18 80 83 65 39 6 39 68 45 13 34 19 59 54 53 4 14 68 62 64 54 53 83 54 53 41 41 (bps) (10) (17) (12

  10. Slide 10: Lesser reliance on FX wholesale funding & Comfortably low level of LDR

    9M 2018 Earnings Presentation Lesser reliance on FX wholesale funding & Comfortably low level of LDR Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 87.2% 84.0% 84.8% 85.6% Funds Borrowed Securities Issued Interbank Money Market Sharehol

  11. Slide 11: Solid deposit franchise

    9M 2018 Earnings Presentation Solid deposit franchise HALKBANK B. Sector(b) YtD 39.8% 45.5% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 15.6% 22.7% in USD YtD -11.7% -8.1% YtD 23.5% 26.1% YtD 13.2% 9.8% terms QoQ -12.3% -7.0% QoQ 7.8% 12.6% QoQ 2.5% 3.3% Total Deposits TRY Deposits FX Deposits (

  12. Slide 12: Continuously increasing demand deposits

    9M 2018 Earnings Presentation Continuously increasing demand deposits Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 15.2% 15.5% 16.3% 84.8% 85.8% 84.5% 83.7% 14.2% FX 44% 32.2% 21.3% 37.7%

  13. Slide 13: Cost – Yield – Spread

    9M 2018 Earnings Presentation Cost – Yield – Spread (a) Cost of Deposits (%) Spreads (%) On Loans On Securities 9.3 7.7 7.8 7.2 6.9 4.1 3.9 4.0 3.7 3.6 2.9 2.0 1.0 1.2 0.3 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Yield on Loans (%)(b) Yield on Securities (%) 12.9 11.3 11.4 11.8 10

  14. Slide 14: 9-month net income 2.2 billion

    8 -6.36 3 9M 2018 Earnings Presentation 9-month net income 2.2 billion Total Operating Revenues (TRY million) Net Income (TRY million) 1.4% -26.7% 1,113 7,820 7,926 2,654 2,812 3,010 2,644 2,205 2,461 782 790 2,167 715 303 9M-17 9M-18 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 9M-17 9M-18 Q3-17 Q4-17 Q1-18 Q2-18

  15. Slide 15: Details on major revenue items

    9M 2018 Earnings Presentation Details on major revenue items Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly 6.3% 28.9% -7.1% 6,127 2,002 3.6 3.6 1,969 2,155 5,763 2,038 3.2 1,553 3.1 2.9 2.7 3.4 16,350 24,878 5.777 6,744 6,926 7,879 10,072 3.1 3.1 (10,587)

  16. Slide 16: Disciplined OPEX management, way below CPI

    9M 2018 Earnings Presentation Disciplined OPEX management, way below CPI Operating Expenses (TRY million) Operating Expenses / Average Assets (%) -2.7% 17.2% (16.4% adj.)(b) 1,267 1,345 1,308 3,851 1.7 1.7 1.6 1,152 1,198 1.5 51 50 51 (a) 3,286 152 50 50 (a) 106 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 9M-17 9

  17. Slide 17: Regulation

    9M 2018 Earnings Presentation (*) LC Subordinated TRY 1.95 bn, Jul-18 Positive Impact Solvency Ratios Tier II Issuances; TRY 2.98 bn, Sep-18 on CAR: 1.74 ppt CAR (%) Details on Capital Ratio Tier-I CAR Basel III 14.9 13.8 14.2 13.4 13.2 (TRY mn) Sep-18 Credit Risk Base Amount (CRBA) 228,643 11.4 12.

  18. Slide 18: Branch Network – Human Resources

    9M 2018 Earnings Presentation Branch Network – Human Resources > 18 new branches opened YtD. > Total branch number reached 981. Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branch Deposits/Branch Internet Automatic Banking 14% Payment 5% 268.1 243.7 ATM 32%

  19. Slide 19: Annex

    9M 2018 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) 9M-17 9M-18 Total Assets 387,323 9.2 Loan Growth (YtD, %) 15.0 23.3 Loans (a) 258,956 10.0 Deposit Growth (YtD, %) (c) 11.2 26.1 TRY Loans 163,419 11.0 LDR (%) 121.9 121.1 FC Loans 95,537 8.7 NPL (%)

  20. Slide 20: Balance Sheet

    9M 2018 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million Sep-17 2017 Jun-18 Sep-18 Change % Change% Change% Cash and Balances Held with the Central Bank(a) 34,559 36,373 33,599 29,802 (11.3) (18.1) (13.8) Banks & Money Market(b) 3,985 7,353 4,951 7,753 56.6 5.4 94.5 Securities(b) 38,19

  21. Slide 21: Income Statement

    9M 2018 Earnings Presentation Income Statement QoQ YoY In TRY million Sep-17 Sep-18 YoY% Q3-17 Q2-18 Q3-18 Change% Change% Interest Income 16,350 24,878 52.2 5,777 7,879 10,072 27.8 74.4 On Loans 13,423 20,283 51.1 4,984 6,507 8,046 23.7 61.4 On Securities 2,649 4,068 53.6 691 1,211 1,800 48.6 160.4

  22. Slide 22: Notes

    9M 2018 Earnings Presentation Notes Financial Institutions and Investor Relations 20 www.halkbank.com.tr

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  24. Slide 24: 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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