Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — FY2011 Earnings Presentation

30 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, February 2012

  1. Slide 1: 2011 Earnings Presentation

    2011 Earnings Presentation BRSA Bank Only

  2. Slide 2: Macro Outlook

    2011 Earnings Presentation Macro Outlook > Turkey’s GDP registered another super high growth in Q3 at > CBRT implemented rate corridor policy where its 8.2%, 2011 & 2012 GDP growth is expected to exceed 8% & funding cost varies between 5.75% to 12.5%. 3% respectively. > CBRT intervened in FX markets

  3. Slide 3: Banking Sector Outlook

    2011 Earnings Presentation Banking Sector Outlook > Loan volume of the industry up 29.9% YoY, FX adjusted 2012 Outlook growth is about 25% YoY. > Growth rate in loans at moderate levels, while deposits > TRY loans up 26.3% YoY vs FX loan up 13.9% YoY in USD to increase further. terms. > Margins to b

  4. Slide 4: 2011 Highlights

    2011 Earnings Presentation 2011 Highlights High Efficiency, Strong Asset Quality and Sustainable Profitability > Net income increased 1.7% YoY, reaching TRY 2,045 mn > Stellar NIM performance; 110 bps NIM expansion > Remarkably resilient ROE performance at 25.4% during the 4Q to 5.6% (2011 NIM 4.8%)

  5. Slide 5: 2011 - Another Year of Proven Success

    2011 Earnings Presentation 2011 - Another Year of Proven Success Guidance Disclosed Figures February 2011 February 2012 Balance Sheet Items Asset Growth ~20% 24.9% Loan Growth ~25% 26.9% Securities Growth ~10% 15.5% Deposit Growth ~17-18% 20.9% Income Statement Items Fee Income Growth ~15-18% 38.5%

  6. Slide 6: Asset Growth

    2011 Earnings Presentation Well-allocated asset structure to outperform Asset Mix (%) Asset Growth IEA Loans YoY 24.9% QoQ 0.5% 87.5% Securities Other Assets Total Asset Growth (TRY billion) Composition of IEAs(a) 50.2% 93.9% 88.3%(b) 87.5%(b) 24.9% 91.1 FX 26.6% 25.6% 28.6% 53.5% 60.7% 61.7% 72.9 6

  7. Slide 7: Low L/D ratio provides room for lending

    2011 Earnings Presentation Low L/D ratio provides room for lending Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) Total L/D Deposits Other Liabilities Funds Borrowed Shareholder’s Equity Interbank Money Market 84.9 85.5% 84.7% 85.6% 80.9 73.9 FX 32.8% 31.4% 37.0% 2009 2010 2011 72.5%

  8. Slide 8: Comfortable on the FX funding front

    2011 Earnings Presentation Comfortable on the FX funding front FX Liabilities / Total Liabilities FX Liabilities Interbank Money Market 3% FX Liabilities Funds 32% Borrowed 21% Deposits 76% TRY Liabilities 68% Funds Borrowed Syndicated Loans / FX Liabilities(a) 606.5 Long-term mn Euro Syndicated Loa

  9. Slide 9: 15.5% increase in securities portfolio

    2011 Earnings Presentation 15.5% increase in securities portfolio 2012 redemption ~ TRY 4 bn 100% Turkish Treasury bonds Total Securities Portfolio(a) (TRY billion) Total Securities Composition Interest Structure(b) (%) HTM AFS Trading 23.3 0.2% 0.4% 0.5% 21.4 3.7 20.2 22.3% 36.6% 39.5% 4.0 16% FIXE

  10. Slide 10: Well diversified interest rate structure

    2011 Earnings Presentation Well diversified interest rate structure TRY Securities Portfolio(a) (%) CPI Linkers / Total Securities (%) Average CPI Yield (%) 19.8 24.1 5.6 13.2 7.0 FIXED 25 35 40 18 13 13 14 12 FRN 75 65 60 2009 2010 2011 2010 Mar-11 Jun-11 Sep-11 2011 TRY Securities Yield (%) CPI Li

  11. Slide 11: Further growth in targeted loan segments

    2011 Earnings Presentation Further growth in targeted loan segments (TRY billion)(a) Total Loans HALKBANK B. Sector (b) 26.8% YoY YoY 26.8% 29.9% 1.9% Fund Loans QoQ QoQ 55.2 up 9.7% YoY 1.9 % 3.3% 54.2 up 3.4% QoQ 1.3 1.3 5.2 5.5 Cooperative Loans TRY Loans 43.6 up 51.0% YoY HALKBANK B. Sector (b)

  12. Slide 12: Well balanced, high margin customer segmentation

    2011 Earnings Presentation Well balanced, high margin customer segmentation Loans by Currency (TRY billion )(a) Loans by Types Funds 2% 8.8 12.0 17.3 17.4 FX 27.9% Cooperatives 10% 27.6% 31.9% 31.6% Commercial 61% 22.8 31.5 36.9 37.8 TRY 72.1% 72.4% 68.1% 68.4% Retail 27% 2009 2010 Sep-11 2011 Marke

  13. Slide 13: Retail growth in line with sector

    2011 Earnings Presentation Retail growth in line with sector (TRY billion)(a) 31.5% HALKBANK YoY 2.4% 31.5% 15.0 QoQ 14.6 Consumer Loans 8.6 up 30.4% YoY 2.4% 8.4 11.4 up 2.5% QoQ 7.3 6.6 Share in total 57.3% B. SECTOR (b) 4.1 YoY 28.5% QoQ Housing Loans 3.4% up 33.4% YoY up 2.5% QoQ 4.0 5.3 5.4 Sha

  14. Slide 14: Continuous market share gain in non-cash loans

    2011 Earnings Presentation Continuous market share gain in non-cash loans Breakdown of Non-cash Loans (%)(a) Non-cash Loans (TRY billion )(a) (2011 ) Bank Loans and Other 40.2% 5.9 7.6% Letters of Letters of Credit Guarantee 17.8 22.9 71.2 16.6 12.7 9.3 In line with the increase in non-cash loans, m

  15. Slide 15: Well diversified loans by provinces

    2011 Earnings Presentation Well diversified loans by provinces Loans by Provinces Kırklareli Bartın Sinop Edirne Zonguldak Kastamonu Tekirdağ İstanbul Artvin Ardahan Karabük Samsun Kocaeli Düzce Rize 53% of the loans extended to the Ordu Trabzon Yalova Giresun Sakarya Bolu Çankırı Amasya Kars Çorum

  16. Slide 16: Downward trend in loans under close watch

    2011 Earnings Presentation Downward trend in loans under close watch Loans under Close Watch (TRY million) Cost of Risk (bps) (a) 4.7 Loans Under Close Watch/Total Loans (%) SME Retail Commercial Corparate 2.1 1.6 82 1,538 1.2 66 65 66 63 65 916 873 32 53 50 51 649 20 19 10 6 7 1 2009 2010 Sep-11 20

  17. Slide 17: Sound asset quality

    2011 Earnings Presentation Sound asset quality NPL Portfolio (TRY million) NPL Coverage (%) 95.6 1,758 89.0 89.2 (a) 1,668 1,637 1,669 85.8 81.4 83.3 84.0 84.0 Since 2002 600 570 528 514 Legacy NPLs 2001 and before 2009 2010 Sep-11 2011 2009 2010 Sep-11 2011 NPL / Total Loans (%) Halkbank Sector (b)

  18. Slide 18: Lower NPL formation than the sector

    2011 Earnings Presentation Lower NPL formation than the sector Halkbank Sector (a,b) Corporate - Commercial (%)(a) Consumer Loans (%)(b) 2.1 2.0 2.0 3.7 1.8 1.8 3.1 2.8 2.6 2.6 1.6 1.4 1.2 1.2 1.0 1.7 1.5 1.3 1.3 1.4 2010 Mar-11 Jun-11 Sep-11 2011 2010 Mar-11 Jun-11 Sep-11 2011 SME Loans (%)(a) Cred

  19. Slide 19: Widespread and sticky deposit base

    2011 Earnings Presentation Widespread and sticky deposit base HALKBANK B. Sector (b) FX Dep. YoY 45.5% 28.3% HALKBANK B. Sector (b) HALKBANK B. Sector (b) QoQ 3.6% 4.0% Total Dep. YoY 20.9% 12.7% TRY Dep. YoY 11.5% 6.1% in USD YoY 18.9% 4.9% QoQ 6.3% 1.7% QoQ 7.7% 0.6% terms QoQ 2.1% 2.4% Total Depo

  20. Slide 20: Increasing share of demand deposit

    2011 Earnings Presentation Increasing share of demand deposit Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 15.7 82.4 80.1 77.0 15.6 73.7 FX TRY 12.9 13.7 33% 67% 38.2% 11.3% 7.1% 1.7% 10.4

  21. Slide 21: Cost-Yield-Spread - Quarterly

    2011 Earnings Presentation Cost-Yield-Spread(a) - Quarterly Cost of Deposits (%) Spreads (%) On Securities On Loans 5.5 5.1 5.2 5.4 5.5 5.7 5.6 5.2 5.3 5.0 5.7 4.5 3.1 4.0 3.0 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Yield on Loans (%)(b) Yield on Securities (%) 11.2 9.9 11.2 11.0

  22. Slide 22: Unlike industry, NII up 8.8%

    2011 Earnings Presentation Unlike industry, Nll up 8.8% Interest Expenses Net Interest Income (TRY million) Interest Income Breakdown of Interest Income 30.3% 8.8% 3,473 72% on Loans 1,102 3,191 822 791 846 734 1,647 1,550 1,697 1,866 2,166 6,351 7,279 825 816 28% on Securities 906 1,020 1,064 3,160

  23. Slide 23: Unprecedented growth in net fees & commissions; 38.5%

    2011 Earnings Presentation Unprecedented growth in net fees & commissions; 38.5% Net Fees & Commissions Income (TRY million) 45.5% 38.5% 728 182 195 193 526 158 133 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 2010 2011 Breakdown of Fees & Commissions Net Fees & Commissions / Operating Revenues (%) Money Transfer

  24. Slide 24: Cost/Income at 34.5% way below peers

    2011 Earnings Presentation Cost/Income at 34.5% way below peers Operating Expenses (TRY million) OPEX / Average Assets (%) 4.7% 15.4% 2.4 1,725 2.2 2.1 1.9 2.0 428 414 425 433 453 1,495 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 2010 2011 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Cost/Income (%) Breakdown of Operating Expen

  25. Slide 25: Net Income - Profitability Ratios

    2011 Earnings Presentation Net Income - Profitability Ratios Net Income (TRY million) 37.1% 691 11.0% 500 525 512 504 504 186 Discretionary 1.7% provisions 186 2,232 2,045 2,010 Discretionary provisions Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q4-11 2010 2011 2011 Adjusted Adjusted ROE (%) ROA (%) YtD Quarterl

  26. Slide 26: Solvency Ratios

    2011 Earnings Presentation Solvency Ratios Capital Ratios (%) Details on Capital Ratios CAR Tier 1 Ratio (TRY mn) 2010 2011 15.9 16.0 Tier I Capital 6,947 8,999 15.0 Tier II and Deductions 453 354 15.3 14.5 14.3 15.0 Total Regulatory Capital 7,400 9,353 14.3 13.8 13.8 Credit risk base amount 39,765

  27. Slide 27: Branch Network – Human Resources

    2011 Earnings Presentation Branch Network – Human Resources Kırklareli Bartın Sinop Edirne Kastamonu > Branch network has been strengthened Tekirdağ İstanbul Zonguldak Artvin Ardahan Karabük Samsun Kocaeli Düzce Rize Ordu Trabzon Yalova Giresun Sakarya Bolu Çankırı Amasya Kars with 61 new branches o

  28. Slide 28: Balance Sheet

    2011 Earnings Presentation Balance Sheet In TRY million 2010 Sep-11 2011 QoQ YoY Change % Change % Cash and Balances Held with the Central Bank (a) 4,650 8,494 7,272 (14.4) 56.4 Banks & Money Market (b) 1,109 1,618 1,475 (8.9) 33.0 Securities (b) 20,207 22,469 23,346 3.9 15.5 Net Loans (b) 44,296 55

  29. Slide 29: Income Statement

    2011 Earnings Presentation Income Statement In TRY million 2010 2011 YoY% Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 QoQ % Interest Income 6,351 7,279 14.6 1,647 1,550 1,697 1,866 2,166 16.1 On Loans 4,256 5,246 23.3 1,139 1,127 1,210 1,394 1,514 8.6 On Securities 2,014 2,019 0.2 502 421 484 464 649 39.8 Interes

  30. Slide 30: 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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