Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — Q3 2013 Earnings Presentation

26 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2013

  1. Slide 1: Q3 2013 Earnings Presentation

    BRSA Bank Only Q3 2013 Earnings Presentation

  2. Slide 2: Macro Outlook

    Q3 2013 Earnings Presentation Macro Outlook > FED defied market expectations in September FOMC meeting, > Aug-13 foreign trade deficit was USD 7.0 bn beating market postponing the start of pulling back on its monthly bond estimate of USD 8.3 bn. Export and import came down by purchases until more ev

  3. Slide 3: Banking Sector Overview

    Q3 2013 Earnings Presentation Banking Sector Overview > Loan book grew 24.7% YtD, reaching TRY 990.8 mn > Monthly net income declined 25% YoY as of Aug-13, mainly as of Sep-13. due to surged interest rates and duration mismatch. > Retail loans up 20.1% YtD, highest increase in > RoE at 14.8% and RoA

  4. Slide 4: September 2013 Highlights

    Q3 2013 Earnings Presentation September 2013 Highlights > Net income up by 8.5% YoY, reaching TRY 2,010 mn. > Solid demand deposit base further expanded, up 8.2% QoQ, > RoE and RoA remained solid at 21.1% and 2.3% contributing to the total deposit growth of 10.1%. respectively, reflecting the busine

  5. Slide 5: Net Income growth 8.5% YoY

    Q3 2013 Earnings Presentation Net Income growth 8.5% YoY Net Income (TRY million) 8.5% 742 2,010 713 715 1,853 600 YoY Change (%) 582 > 13.1% NII > 15.9% Total Operating Revenues > 7.6% Net Operating Income > 8.5% Net Profit Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Sep-12 Sep-13 RoE (%) RoA (%) YtD Quarterly Y

  6. Slide 6: Strong asset growth

    Q3 2013 Earnings Presentation Strong asset growth Asset Growth IEA Securities YoY 25.9% QoQ 10.4% 81.8% portion 19.1% Total Assets (TRY billion) Composition of IEAs(a) Asset Mix (%) Loans Cash & CBRT 25.9% 84.9% 83.2% 82.9% 82.1% 81.8% Securities Other Assets 18.7% 10.4% 27.3% FX 25.4% 24.9% 23.1% 2

  7. Slide 7: Effective timing in securities investments

    Q3 2013 Earnings Presentation Effective timing in securities investments Total Securities Portfolio (TRY billion) Interest Structure (%) Securities / Total Assets (%) 22.5 21.2 20.7 18.1 19.1 CPI Linked 22.9 23.1 24.5 30.7% 22.9 11% 10% 2.4 21.0 2.5 10% FX 2.6 2.2 10% 2.1 10% 20.3 89% 20.7 90% 20.7

  8. Slide 8: Accelerated lending activity at higher interest rates

    Q3 2013 Earnings Presentation Accelerated lending activity at higher interest rates (TRY billion)(a) 27.3% Total Loans 21.7% HALKBANK B. Sector (b) 8.6% YtD YtD 21.7% 24.7% 78.9 Fund Loans QoQ QoQ 1.4 up 2.5% YtD 8.6% 6.7% 72.6 Flat QoQ 9.0 64.8 67.9 1.4 Cooperative Loans TRY Loans 61.9 1.4 1.4 8.3

  9. Slide 9: No sectoral concentration, TRY heavy loan book

    Q3 2013 Earnings Presentation No sectoral concentration, TRY heavy loan book Loans by Currency (%)(a) Interest Structure (%) FX Floating 28.5% 52.9% TRY Fixed 71.5% 47.1% Sectoral Breakdown of Loans (%) Loans by Customer Segmentation (%) Other 7% Tourism 2% Textile 3% Metal Industry 2% Manufacturing

  10. Slide 10: Retail loan growth backed by housing loans and credit card business

    Q3 2013 Earnings Presentation Retail loan growth backed by housing loans and credit card business (TRY billion)(a) 33.9% 28.3% 7.1% HALKBANK 22.6 YtD 21.1 28.3% 19.4 QoQ 17.6 7.1% 16.9 Consumer Loans 11.5 up 19.6% YtD 11.2 up 3.1% QoQ B. SECTOR (b) 9.4 9.6 10.5 Share in total 51.0% YtD 20.1% QoQ Hou

  11. Slide 11: Credit card business on track

    Q3 2013 Earnings Presentation Credit card business on track # of Credit Cards (Thousand) # of POS (Thousand) Credit Risk Balance (TRY Million) # of Merchants (Thousand) 131 2,328 122 1,567 1,981 105 1,296 1,310 77 86 143 3,235 138 3,048 116 2,734 2,186 2,205 86 95 Nov-12 Dec-12 Mar-13 Jun-13 Sep-13

  12. Slide 12: Sustained asset quality reflected in improving ratios

    Q3 2013 Earnings Presentation Sustained asset quality reflected in improving ratios NPL Portfolio (TRY million) NPL Coverage (%) 99.2 98.8 1,960 2,004 2,068 2,134 95.8 97.8 91.1 (a) 1,869 82.6 82.5 82.4 81.9 81.5 Since 2002 507 503 498 497 499 Legacy NPLs 2001 and before Sep-12 2012 Mar-13 Jun-13 Se

  13. Slide 13: NPL ratios, Halkbank vs. Sector

    Q3 2013 Earnings Presentation NPL ratios, Halkbank vs. Sector Halkbank NPL Sector NPL (a,b) Corporate - Commercial (%)(a) Consumer Loans (%)(b) 2.6 3.2 3.1 3.3 3.1 3.2 2.5 2.3 2.3 2.3 1.6 1.5 1.6 1.5 1.8 1.7 1.8 1.8 1.4 1.6 Sep-12 2012 Mar-13 Jun-13 Sep-13 Sep-12 2012 Mar-13 Jun-13 Sep-13 SME Loans

  14. Slide 14: Further improving CoR

    Q3 2013 Earnings Presentation Further improving CoR Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 91 77 83 63 67 65 56 56 56 62 63 61 56 8 49 Sep-12 2012 Mar-13 Jun-13 Sep-13 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (bps) (Specific Provisions-

  15. Slide 15: Comfortable L/D ratio at 88.5%, far below sector average

    Q3 2013 Earnings Presentation Comfortable L/D ratio at 88.5%, far below sector average IBL 84.4%(a) Loan to Deposit (%) Composition of IBLs (a) Liabilities Mix (%) Halkbank L/D Sector L/D(b) Deposits Marketable 84.1% 82.9% 83.5%84.3% 84.4% Funds Borrowed Securities Issued Interbank Money Market Othe

  16. Slide 16: Strong deposit growth backed by FX

    Q3 2013 Earnings Presentation Strong deposit growth backed by FX HALKBANK B. Sector (b) FX Dep. YtD 31.8% 37.9% HALKBANK B. Sector (b) HALKBANK B. Sector (b) QoQ 27.3% 17.1% Total Dep. YtD 13.1% 17.1% TRY Dep. YtD 4.2% 17.7% in USD YtD 16.3% 21.7% QoQ 10.1% 7.8% QoQ 1.8% 2.9% terms QoQ 21.6% 11.8% T

  17. Slide 17: Effectively managed deposit growth

    Q3 2013 Earnings Presentation Effectively managed deposit growth Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 16.3% 16.0% 15.5% 15.5% 15.3% 75.1% 75.4% 74.5% 74.6% FX 73.1% 38% 22.3% 17.7%

  18. Slide 18: Cost-Yield-Spread

    Q3 2013 Earnings Presentation Cost-Yield-Spread(a) Cost of Deposits (%) Spreads (%) On Securities On Loans 5.5 5.1 4.6 4.3 4.1 6.0 6.2 6.2 6.0 5.1 5.5 4.6 3.7 3.9 1.3 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Yield on Loans (%)(b) Yield on Securities (%) 11.5 11.3 10.6 10.8 10.0 9.

  19. Slide 19: NII growth 13.1% YoY

    Q3 2013 Earnings Presentation NII growth 13.1% YoY Interest Income Net Interest Income (TRY million) Interest Expenses Breakdown of Interest Income (%) 18.8% 13.1% 1,293 1,245 1,203 3,600 21% on Securities 970 1,153 3,183 2,127 2,393 2,254 2,138 2,261 6,598 6,653 79% on Loans (1,156) (1,099) (1,009)

  20. Slide 20: Increasing share of commissions in operating revenues

    Q3 2013 Earnings Presentation Increasing share of commissions in operating revenues Net Fees & Commissions Income (TRY million) 3.8% 7.0% 238 685 218 218 229 641 211 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Sep-12 Sep-13 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenues (%) Insura

  21. Slide 21: Opex down 5.2% QoQ

    Q3 2013 Earnings Presentation Opex down 5.2% QoQ Operating Expenses (TRY million) -5.2% 31.6% 83 1,958 56 673 1,958 115 10 610 647 638 74 16 Other 116 Advertisement Payroll 522 1,488 1,488 Rent Credit acquisition cost Account Card (*) Salary change in increase personnel dividend Q3-12 Q4-12 Q1-13 Q2

  22. Slide 22: Solvency Ratios

    Q3 2013 Earnings Presentation Solvency Ratios Capital Ratios (%) Details on Capital Ratio CAR Tier 1 Ratio Basel II (TRY mn) Sep-13 16.2 15.9 Credit Risk Base Amount (CRBA) 87.206 14.6 14.7 14.0 Market Risk Base Amount (MRBA) 3.777 Operational Risk Base Amount (ORBA) 8.912 14.3 14.1 13.2 13.3 Total

  23. Slide 23: Branch Network - Human Resources

    Q3 2013 Earnings Presentation Branch Network - Human Resources > 51 branches opened year-to-date > 867 branches in total Opened Number of Branches by Province in 9 months ATMs Kırklareli Bartın 2,736 2,836 2,554 Sinop Edirne Zonguldak Kastamonu 2,442 Tekirdağ İstanbul Artvin Ardahan Karabük Samsun K

  24. Slide 24: Balance Sheet

    Q3 2013 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million Sep-12 2012 Jun-13 Sep-13 Change% Change% Change% Cash and Balances Held with the Central Bank(a) 10,402 12,488 15,226 17,333 14 39 67 Banks & Money Market (b) 1,969 2,632 2,114 1,893 (10) (28) (4) Securities (b) 22,952 22,954 21

  25. Slide 25: Income Statement

    Q3 2013 Earnings Presentation Income Statement YoY QoQ YoY In TRY million Sep-12 Sep-13 Change% Q3-12 Q1-13 Q2-13 Q3-13 Change% Change% Interest Income 6,598 6,653 1 2,127 2,254 2,138 2,261 6 6 On Loans 4,959 5,232 5 1,719 1,728 1,721 1,783 4 4 On Securities 1,626 1,409 (13) 404 520 415 474 14 17 In

  26. 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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