Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — Q3 2017 Earnings Presentation

28 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2017

  1. Slide 1: Q3 2017 Earnings Presentation

    Q3 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

  2. Slide 2: Slide 2

  3. Slide 3: September 2017 Highlights

    Q3 2017 Earnings Presentation September 2017 Highlights Net Income Growth RoE CoR (a) LDR (b) C/I (c) Solid Financial Results 37% & & & & 42% 18% 59 bps 104% Reported Net Income (TRY mn) Earnings Walk Sep-16 / Sep-17 (TRY mn) 1,559 37% YoY 961 5,850 3,010 5,077 672 2,195 737 (3,286) 3,010 (2,801) 2,

  4. Slide 4: September 2017 Highlights: Main Pillars of Net Income Growth

    Q3 2017 Earnings Presentation September 2017 Highlights Main Pillars of Net Income Growth 1 Strong Topline 2 Fees & Commissions Generation Capacity YoY NII Growth +16% Interest income on Loans +30% As of Sep-17 Sector* vs Interest income on Securities +41% +62% YoY +21% YoY Total Interest Income +33

  5. Slide 5: Macro & Banking Sector Snapshot

    Q3 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 40 -3.00 6.1 4.8 5.2 4.8 4.9 5.2 5.1 45 -3.50 4.2 52 3.2 50 -4.00 55 -4.4 -4.50 60 -5.00 65 -5.50 (0.8) 70 -6.00 Mar

  6. Slide 6: Macro & Banking Sector Snapshot

    Q3 2017 Earnings Presentation Macro & Banking Sector Snapshot Domestic Macro Environment Turkish Banking Sector Unemployment & Confidence Indexes Sep-17 vs Sep-16 Terms of Selected Items (%) Consumer CI Unemployment (%-RHS) Real Sector CI Total Assets 20.5 140 0 Net Loans 23.7 120 2 TRY Loans 24.6 1

  7. Slide 7: Cumulative net income soared by 37% YoY, yielding into 18% RoE

    Q3 2017 Earnings Presentation Cumulative net income soared by 37% YoY, yielding into 18% RoE Net Income (TRY million) 24.2% 37.1% -22.5% 3,010 YoY Change (%) 1,219 1,009 15.8% Net Interest Income 782 2,195 62.3% Net Fees & Commissions 630 20.2% Total Operating Income 363 37.1% Net Income Q3-16 Q4-16

  8. Slide 8: Strong growth in total assets, 20.9% YtD

    Q3 2017 Earnings Presentation Strong growth in total assets, 20.9% YtD Asset Growth IEA Securities YtD 20.9% QoQ 5.6% 83.6% Portion 13.7% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 32.4% Loans Cash & CBRT 20.9% Securities Other Assets 82.4% 82.5% 82.1% 82.3% 83.6% 5.6% 279

  9. Slide 9: Well balanced securities portfolio

    Q3 2017 Earnings Presentation Well balanced securities portfolio Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 14.6 14.4 14.3 14.0 13.7 CPI-Linked (TRY 11.3bn) 38.2 30% 35.5 36.9 33.2 7.9 21% 30.9 6.9 19% 7.2 20% Fixed Rate 6.6 20% FX 6.0 19% 55.

  10. Slide 10: CGF backed loan growth resulting in 9.5% market share

    Q3 2017 Earnings Presentation CGF backed loan growth resulting in 9.5% market share CGF Utilization (TRY Bn) Jun-17 Sep-17 Total Limit 16.6 22.3 (TRY billion)(a) 34.2% Loan Origination 12.5 20.9 22.5% Total Loans 7.5% HALKBANK B. Sector(b) 189.9 YtD YtD 176.7 Commercial Loans 22.5% 15.0% 164.7 0,1 0

  11. Slide 11: Well diversified loan portfolio, ensuring return and limiting risks

    Q3 2017 Earnings Presentation Well diversified loan portfolio, ensuring return and limiting risks Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 5.0% Commercial 1.9% SME 38% Commercial 8% Corporate 23.8% Corporate 33% Cooperative 12%(b) TRY FX 69.3% 30.7% Retail 21% Sectoral Brea

  12. Slide 12: Retail loans gaining market share, 8.6%

    Q3 2017 Earnings Presentation Retail loans gaining market share, 8.6% (TRY billion)(a) 37.5% HALKBANK 27.5% YtD 12.0% 27.5% QoQ 40.7 12.0% 33.7 36.4 29.6 31.9 Consumer Loans YtD 23.4% 17.0 15.7 QoQ 8.1% 13.8 14.6 B. Sector(b) 13.0 Share in total 41.8% YtD 12.9% Housing Loans QoQ 15.3 16.2 17.6 20.5

  13. Slide 13: Sound asset quality underpinned by low level of impairment

    Q3 2017 Earnings Presentation Sound asset quality underpinned by low level of impairment NPL Portfolio (TRY million) NPL Coverage (%) 5,944 5,736 77.1 76.4 76.4 76.1 5,140 5,571 75.1 4,625 Sep-16 2016 Mar-17 Jun-17 Sep-17 Sep-16 2016 Mar-17 Jun-17 Sep-17 Loans under Close Watch (TRY million) NPL/Tot

  14. Slide 14: NPL ratio by segments

    Q3 2017 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) Consumer Loans (%) 6.2 6.0 5.8 5.3 5.0 3.6 3.5 3.4 3.4 3.4 2.5 2.4 2.4 2.2 2.1 2.0 1.9 2.0 2.0 1.9 Sep-16 2016 Mar-17 Jun-17 Sep-17 Sep-16 2016 Mar-17 Jun-17 Sep-17 SME Loans (%) Credit Cards (

  15. Slide 15: CoR on track

    Q3 2017 Earnings Presentation CoR on track Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 142 126 92 92 70 59 59 60 81 59 49 52 59 50 41 Sep-16 2016 Mar-17 Jun-17 Sep-17 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (bps) (Specific Provisions-Provis

  16. Slide 16: Steady LDR diverging from sector average

    Q3 2017 Earnings Presentation Steady LDR diverging from sector average IBL 87.2%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 85.0% 86.3% 86.2% 86.2% 87.2% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equit

  17. Slide 17: Deposit penetration strategy gaining market share

    Q3 2017 Earnings Presentation Deposit penetration strategy gaining market share HALKBANK B. Sector(b) YtD 29.1% 17.8% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 10.9% 3.1% in USD YtD 28.7% 17.5% YtD 23.5% 12.5% YtD 19.6% 8.7% terms QoQ 10.9% 3.1% QoQ 7.9% 3.6% QoQ 5.7% 4.1% Total Deposits TRY D

  18. Slide 18: Demand deposits increasing, 37% YoY

    Q3 2017 Earnings Presentation Demand deposits increasing, 37% YoY Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 16.7% 83.8% 83.3% 83.5% 84.2% 84.8% 16.2% 16.5% 15.8% 15.2% FX 43% 37.0% 47.4

  19. Slide 19: Cost – Yield – Spread

    Q3 2017 Earnings Presentation Cost – Yield – Spread (a) Cost of Deposits (%) Spreads (%) On Loans On Securities 6.9 6.2 6.6 5.9 5.8 5.4 4.8 4.8 4.6 4.2 4.2 3.9 3.1 2.5 0.3 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Yield on Loans (%)(b) Yield on Securities (%) 10.6 10.8 12.1 10.5 10

  20. Slide 20: NII increased 15.8% YoY

    8 -6.36 3 Q3 2017 Earnings Presentation NII increased 15.8% YoY Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses -17.4% 15.8% -19.4% 16% on Securities 2,282 5,763 1,881 1,978 1,928 4,979 2% on Others 1,553 4,341 4,647 5,171 5.402 5.777 12,307 16,35

  21. Slide 21: Powerful momentum in F&C income

    Q3 2017 Earnings Presentation Powerful momentum in F&C income Net Fees & Commissions Income (TRY million) 49.0% 62.3% 0.9% 1,559 537 509 513 415 344 961 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Sep-16 Sep-17 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenues (%) Asset Management 1%

  22. Slide 22: Opex/Average Assets improved to 1.7%

    Q3 2017 Earnings Presentation Opex/Average Assets improved to 1.7% Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 17.3% (13.5% adj.)(b) 3.6% 3,286 1,152 2,801 17 (a) 1.9 1,063 1,113 1.8 1.7 1,021 4 (a) 80 6 909 9 6 15 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Sep-16 Sep-17 Sep-16 2016

  23. Slide 23: Solvency Ratios

    Q3 2017 Earnings Presentation > TRY 1 bn. Local Currency Subordinated Tier II issuance was Solvency Ratios completed in Oct-17, positive impact on Car is ~50 bps. CAR (%) Details on Capital Ratio Tier-I CAR Basel III 14.0 (TRY mn) Sep-17 13.5 13.1 13.6 13.8 Credit Risk Base Amount (CRBA) 174.396 12.

  24. Slide 24: Branch Network – Human Resources

    Q3 2017 Earnings Presentation Branch Network – Human Resources > 4 new branches opened YtD. > Total branch number reached 963 Loans and Deposits per Branches (TRY million) Breakdown of Banking Transactions (%) Automatic Loans/Branches Deposits/Branches Internet Banking 9% Payment 3% 201.6 187.4 ATM

  25. Slide 25: Balance Sheet

    Q3 2017 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million Sep-16 2016 Jun-17 Sep-17 Change % Change% Change% Cash and Balances Held with the Central Bank(a) 27,038 29,999 35,258 34,559 (2.0) 15.2 27.8 Banks & Money Market (b) 810 1,661 2,811 3,985 41.8 139.9 392.1 Securities (b) 30,870

  26. Slide 26: Income Statement

    Q3 2017 Earnings Presentation Income Statement QoQ YoY In TRY million Sep-16 Sep-17 YoY % Q3-16 Q2-17 Q3-17 Change% Change% Interest Income 12,307 16,350 32.8 4,341 5,402 5,777 6.9 33.1 On Loans 10,319 13,423 30.1 3,640 4,375 4,984 13.9 36.9 On Securities 1,876 2,649 41.2 664 930 691 (25.7) 4.1 Inte

  27. Slide 27: Slide 27

  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

Türkiye Halk Bankası A.Ş. — Q3 2017 Earnings Presentation on 6ix