Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — H1 2017 Earnings Presentation
26 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2017
Slide 1: H1 2017 Earnings Presentation
H1 2017 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
Slide 2: H1 2017 Highlights
H1 2017 Earnings Presentation H1 2017 Highlights Net Income Growth RoE YoY NIM CoR (a) C/I Solid Financial Results 42% & & +29 bps & 70 bps & 38% 20% Reported Net Income (TRY mn) Earnings Walk H1-16 / H1-17 (TRY mn) 1,046 42% YoY 4,312 2,228 616 3,135 317 1,566 (2,134) 2,228 599 1,566 (730) (583) (1
Slide 3: Main Pillars of Net Income Growth
H1 2017 Earnings Presentation H1 2017 Highlights Main Pillars of Net Income Growth 1 Strong Topline 2 Fees & Commissions Generation Capacity Budget-17 YoY NII Growth +36% NII +17% YoY As of H1-17 Sector* vs vs YoY NIM +29 bps +70% YoY +20% YoY NIM Flat 3 Sustained Asset Quality, Low CoR 4 Controlled
Slide 4: Macro & Banking Sector Snapshot
H1 2017 Earnings Presentation Macro & Banking Sector Snapshot Domestic Macro Environment Real GDP Growth (%) CAD / GDP (%) CAD/GDP Brent (USD / Mon Avg-RHS) 11.1 30 -2.00 8.5 35 -2.50 5.2 6.1 4.8 40 -3.00 5.0 5.3 3.5 45 -3.50 4.5 2.9 50 51 -4.00 55 -4.50 60 -5.00 -5.1 65 -5.50 (1.3) 70 -6.00 Mar -16
Slide 5: Macro & Banking Sector Snapshot
H1 2017 Earnings Presentation Macro & Banking Sector Snapshot Domestic Macro Environment Turkish Banking Sector Unemployment & Confidence Indexes H1-17 vs H1-16 Terms of Selected Items (%) Consumer CI Unemployment (%-RHS) Real Sector CI Total Assets 20.0 120 0 Net Loans 22.1 110 2 TRY Loans 21.1 109
Slide 6: Strong trend in profitability persisted
H1 2017 Earnings Presentation Strong trend in profitability persisted Net Income (TRY million) 13.9% 42.3% -17.3% 2,228 YoY Change (%) 1,219 35.9% Net Interest Income 1,009 886 1,566 69.7% Net Fees & Commissions 630 36.1% Total Operating Income 363 42.3% Net Income 363 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17
Slide 7: Vigorous volume growth
H1 2017 Earnings Presentation Vigorous volume growth Asset Growth IEA Securities YoY 32.2% QoQ 6.9% 82.3% Portion 14.0% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 32.2% Loans Cash & CBRT 14.4% Securities Other Assets 82.9% 82.5% 82.1% 82.3% 6.9% 264.8 FX 30.2% 32.9% 32.5%
Slide 8: Solid contribution from CPI Linkers
H1 2017 Earnings Presentation Solid contribution from CPI Linkers Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 14.2 14.4 14.3 14.0 CPI-Linked (TRY 10.7bn) 36.9 33.2 35.5 29% 28.4 6.9 19% 7.2 20% 6.6 20% Fixed Rate FX 6.0 21% 56.6% 22.4 79% 26.6
Slide 9: Robust loan growth, enjoying guarantee facility
H1 2017 Earnings Presentation Robust loan growth, enjoying guarantee facility (TRY billion)(a) 29.8% 14.0% Total Loans 7.3% HALKBANK B. Sector(b) 176.7 YtD YtD 164.7 14.0% 10.7% 0,3 Commercial Loans 155.1 0.3 15.3 QoQ QoQ 12.0 YtD 16.0% 7.3% 4.9% 141.5 0.3 QoQ 28.6% 136.2 13.2 0.4 59,1 0.4 Corporate
Slide 10: SME focused, TRY heavy loan book
H1 2017 Earnings Presentation SME focused, TRY heavy loan book Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 5.0% Commercial 2.7% SME 37% Commercial 9% Corporate 24.6% Corporate 33% Cooperative 12%(b) TRY FX 67.7% 32.3% Retail 21% Sectoral Breakdown of Loans (%)(a) Retail Loans
Slide 11: Retail strategy yielded into further market share
H1 2017 Earnings Presentation Retail strategy yielded into further market share (TRY billion)(a) 27.5% HALKBANK 13.9% YtD 7.9% 13.9% 37.1 QoQ 30.1 32.5 34.3 7.9% Consumer Loans 29.1 YtD 14.4% 13.5 14.3 15.5 QoQ 8.3% B. Sector(b) 12.8 Share in total 41.8% 12.7 YtD 7.4% Housing Loans QoQ 15.3 16.2 17.
Slide 12: Both NPL and Group II loans ratios improving
H1 2017 Earnings Presentation Both NPL and Group II loans ratios improving NPL Portfolio (TRY million) NPL Coverage (%) 5,736 5,140 5,571 77.1 76.4 76.4 76.0 75.1 4,625 4,330 Jun-16 Sep-16 2016 Mar-17 Jun-17 Jun-16 Sep-16 2016 Mar-17 Jun-17 Loans under Close Watch (TRY million) NPL/Total Loans (%) L
Slide 13: NPL ratio by segments
H1 2017 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) (a) Consumer Loans (%) (a) 6.2 6.0 5.9 5.8 5.3 3.7 3.7 3.7 3.8 3.6 2.5 2.5 2.5 2.4 2.3 2.2 1.9 1.9 1.9 1.9 Jun-16 Sep-16 2016 Mar-17 Jun-17 Jun-16 Sep-16 2016 Mar-17 Jun-17 SME Loans (%)(a) Cre
Slide 14: Superior CoR
H1 2017 Earnings Presentation Superior CoR Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 110 142 92 70 73 70 92 70 54 63 81 60 58 59 50 Jun-16 Sep-16 2016 Mar-17 Jun-17 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (bps) (Specific Provisions-Provis
Slide 15: Enhanced LDR reflecting liquidity
H1 2017 Earnings Presentation Enhanced LDR reflecting liquidity IBL 86.2%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 84.8% 86.3% 86.2% 86.2% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity 43.1% 46.5%
Slide 16: Deposit volume growing
H1 2017 Earnings Presentation Deposit volume growing HALKBANK B. Sector(b) YtD 16.4% 14.3% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 4.0% 2.9% in USD YtD 16.0% 14.0% YtD 14.5% 8.6% YtD 13.2% 4.4% terms QoQ 7.3% 6.1% QoQ 9.0% 4.0% QoQ 13.0% 4.8% Total Deposits TRY Deposits FX Deposits (TRY bill
Slide 17: Details of deposit base
H1 2017 Earnings Presentation Details of deposit base Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 17.1% 16.7% 16.5% 82.9% 83.3% 83.5% 84.2% 15.8% FX 42% 27.6% 40.1% 15.5% 23.1% 8.6% 14.0%
Slide 18: Cost – Yield – Spread
H1 2017 Earnings Presentation Cost – Yield – Spread Cost of Deposits (%) Spreads (%) On Loans On Securities 6.2 6.2 6.6 5.9 5.8 5.4 4.8 4.8 4.3 4.6 4.2 3.1 4.2 1.2 2.5 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Yield on Loans (%)(b) Yield on Securities (%) 10.5 10.5 10.6 10.4 12.1 1
Slide 19: NII up 36% YoY despite missing CPI Linkers’ revenues
8 -6.36 3 H1 2017 Earnings Presentation NII up 36% YoY despite missing CPI Linkers’ revenues and increasing funding cost Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses 22.7% 35.9% -15.5% 18% on Securities 1,978 2,282 4,210 1,881 1,928 3,098 2% on
Slide 20: NFCI speaks for itself: 70% increase YoY
H1 2017 Earnings Presentation NFCI speaks for itself: 70% increase YoY Net Fees & Commissions Income (TRY million) 56.9% 69.7% -5.3% 1,046 415 537 509 344 324 616 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 H1-16 H1-17 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenues (%) Asset Manag
Slide 21: Brilliant development in Opex / Avg Assets, 1.7%
H1 2017 Earnings Presentation Brilliant development in Opex / Avg Assets, 1.7% Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 12.7% (9.7% adj.)(b) 9.0% (3.4% adj.)(b) 2,134 1,893 12 (a) 1,063 1,113 2.0 1.8 1,021 65 1.7 931 909 9 6 6 (a) 27 15 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 H
Slide 22: Solvency Ratios
H1 2017 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Basel III 14.0 (TRY mn) H1-17 13.5 13.1 13.6 Credit Risk Base Amount (CRBA) 165,920 12.8 12.0 12.6 13.0 Market Risk Base Amount (MRBA) 2.863 Operational Risk Base Amount (ORBA) 12,798 Total Risk Weighted Assets
Slide 23: Branch Network – Human Resources
H1 2017 Earnings Presentation Branch Network – Human Resources > 4 new branches opened in H1-17. > Total branch number reached 963 Loans and Deposits per Branches (TRY million) Breakdown of Banking Transactions (%) Automatic Loans/Branches Deposits/Branches Internet Payment 4% Banking 10% 187.4 175.
Slide 24: Balance Sheet
H1 2017 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million H1-16 2016 Q1-17 H1-17 Change % Change% Change% Cash and Balances Held with the Central Bank(a) 24,236 29,999 33,163 35,258 6.3 17.5 45.5 Banks & Money Market (b) 852 1,661 1,816 2,811 54.8 69.3 229.9 Securities (b) 28,433 33,216
Slide 25: Income Statement
H1 2017 Earnings Presentation Income Statement QoQ YoY In TRY million H1-16 H1-17 YoY % Q2-16 Q1-17 Q2-17 Change% Change% Interest Income 7,966 10,573 32.7 4,021 5,171 5,402 4.5 34.3 On Loans 6,679 8,439 26.3 3,461 4,064 4,375 7.7 26.4 On Securities 1,212 1,957 61.5 523 1,027 930 (9.5) 77.7 Interest
Slide 26: 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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