Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — FY2013 Earnings Presentation
29 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2014
Slide 1: 2013 Earnings Presentation
BRSA Bank Only 2013 Earnings Presentation
Slide 2: Macro Outlook
2013 Earnings Presentation Macro Outlook > FED finally started tapering its monthly bond purchases: first > CBRT changed funding composition as well from O/N funding to USD 75 bn from USD 85 bn in mid-December and then to (previously 7.75%) to one-week repo funding (now 10.0%). USD 65 bn in late Jan
Slide 3: Banking Sector Overview
2013 Earnings Presentation Banking Sector Overview > Loans up by 31.8% YoY, almost 6.5% stemmed from local > Basel III rules effective as of Jan-14, capital buffers set to currency depreciation. Loan book reached TRY 1,047 bn. be partially applied in 2016. > Retail loans grew by 24.2% YoY. In terms
Slide 4: 2013 Highlights
2013 Earnings Presentation 2013 Highlights > Quarterly net income up 27.3% reaching TRY 741 mn in > L/D ratio down to 84.2%, far below sector average, Q4-13 and YE2013 net income up 6.0% YoY amounting offers room for further growth and flexibility going to TRY 2,751 mn. forward. > Solid fundamentals
Slide 5: Performance matrix based on major ratios
2013 Earnings Presentation 2013 Performance matrix based on major ratios (a) Net Loan / Gross NPL(b) RoE RoA NIM C/I Deposits NPL Growth Tier 1 HALKBANK 20.8% 2.2% 4.9% 39.2% 84.2% 2.6% 14.6% 12.7% Peer 1 18.7% 2.4% 4.2% 46.1% 111.3% 3.6% 40.8% 11.3% Peer 2 13.7% 1.7% 4.2% 43.3% 111.5% 2.1% 20.1% 13
Slide 6: Net Income growth 6.0% YoY, RoE 20.8%
2013 Earnings Presentation Net Income growth 6.0% YoY, RoE 20.8% Net Income (TRY million) 27.3% 6.0% 742 741 2,751 713 715 2,595 582 YoY Change (%) > 7.9% NII > 8.3% Net Fee and Commissions Income > 8.3% Total Operating Revenues > 6.0% Net Profit Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 2012 2013 RoE (%) RoA (
Slide 7: Strong asset growth with well-balanced composition
2013 Earnings Presentation Strong asset growth with well-balanced composition Asset Growth IEA Securities YoY 29.2% QoQ 8.9% 81.3% portion 20.4% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) Loans Cash & CBRT 53.6% 87.5% 83.2% 81.3% Securities Other Assets 29.2% 139.9 27.3% F
Slide 8: TRY securities yield up to 10.2%, AFS portion down to 33.4%
2013 Earnings Presentation TRY securities yield up to 10.2%, AFS portion down to 33.4% Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 25.6 21.2 19.1 20.4 CPI Linked (TRY 8.9 bn) 31.5% 28.6 23.3 22.9 24.5 3.3 12% 2.5 10% FX 3.7 16% 2.2 10% Fixed Ra
Slide 9: Sustained lending growth
2013 Earnings Presentation Sustained lending growth (TRY billion)(a) 28.7% Total Loans 5.7% HALKBANK B. Sector (b) YoY YoY 83.4 28.7% 31.8% 78.9 1.1 QoQ QoQ 1.1 5.8 Commercial Loans 5.7% 5.8% 5.5 YoY 40.3% QoQ 6.8% 64.8 TRY Loans 1.2 22.3 Corporate Loans HALKBANK B. Sector (b) 55.2 4.1 20.7 YoY 28.6
Slide 10: Sectoral diversification maintained, FX lending mainly in corporate segment
2013 Earnings Presentation Sectoral diversification maintained, FX lending mainly in corporate segment Loans by Currency (%)(a) Interest Structure (%)(a) SME 5% Commercial 4% Floating Corporate 20.4% 53.0% FX TRY 29.4% 70.6% Fixed 47.0% Sectoral Breakdown of Loans (%)(a) Loans by Customer Segmentati
Slide 11: Solid retail loan growth
2013 Earnings Presentation Solid retail loan growth (TRY billion)(a) 33.0% 3.7% HALKBANK 23.5 YoY 22.6 33.0% 17.6 QoQ 15.0 3.7% Consumer Loans 11.6 YoY 20.1% 11.5 QoQ 0.4% B. SECTOR (b) 8.6 9.6 Share in total 49.3% YoY 24.2% QoQ Housing Loans 3.4% 9.1 YoY 38.1% 8.6 QoQ 5.3% 5.4 6.6 Share in total 38
Slide 12: Credit card business makes important progress
2013 Earnings Presentation Credit card business makes important progress # of Credit Cards (Thousand) # of POS (Thousand) Credit Risk Balance (TRY Million) # of Merchants (Thousand) 131 137 2,328 2,633 122 1,981 105 1,567 86 163 1,296 1,310 3,249 77 138 143 3,048 3,235 2,734 116 2,186 2,205 86 95 No
Slide 13: Sound asset quality sustained
2013 Earnings Presentation Sound asset quality sustained NPL Portfolio (TRY million) NPL Coverage (%) 2,134 2,245 84.0 82.5 1,960 81.5 80.6 1,669 Since 2002 514 503 499 484 Legacy NPLs 2001 and before 2011 2012 Sep-13 2013 2011 2012 Sep-13 2013 NPL / Total Loans (%) Halkbank Sector (a) 2.9 2.9 Despi
Slide 14: NPL ratio reinforcing risk-adjusted return in all segments
2013 Earnings Presentation NPL ratio reinforcing risk-adjusted return in all segments Halkbank NPL Sector NPL (a,b) Corporate - Commercial (%)(a) Consumer Loans (%)(b) 2.8 3.1 3.3 3.1 3.2 2.6 2.5 2.5 3.0 2.4 1.6 1.6 1.7 1.8 1.8 1.8 1.8 1.5 1.5 1.7 2012 Mar-13 Jun-13 Sep-13 2013 2012 Mar-13 Jun-13 Se
Slide 15: 58bps CoR better than initially guided
2013 Earnings Presentation 58bps CoR better than initially guided Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 117 79 67 58 65 64 55 56 56 63 61 56 58 19 49 2012 Mar-13 Jun-13 Sep-13 2013 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (bps) (Specif
Slide 16: Low L/D decoupling from the sector
2013 Earnings Presentation Low L/D decoupling from the sector IBL 85.3%(a) Loan to Deposit (%) Composition of IBLs (a) Liabilities Mix (%) Halkbank L/D Sector L/D(b) Deposits Marketable 85.6% 82.9% 84.4% 85.3% Funds Borrowed Securities Issued 109.7 110.7 Interbank Money Market Shareholders’ Equity F
Slide 17: Strong deposit growth, increasing market share
2013 Earnings Presentation Strong deposit growth, increasing market share HALKBANK B. Sector (b) FX Dep. YoY 37.7% 39.7% HALKBANK B. Sector (b) HALKBANK B. Sector (b) QoQ 4.5% 9.9% Total Dep. YoY 26.0% 22.5% TRY Dep. YoY 20.4% 14.1% in USD YoY 14.6% 16.3% QoQ 11.4% 4.8% QoQ 15.6% 2.0% terms QoQ -1.4
Slide 18: Growth in time and demand deposit
2013 Earnings Presentation Growth in time and 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% 15.5% 16.0% 15.2% 75.4% 74.6% 74.0% 75.0% FX 35% 23.4% 25.3% 5.6% 11.9% TRY 1
Slide 19: Cost-Yield-Spread
2013 Earnings Presentation Cost-Yield-Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 5.1 4.8 6.2 4.6 4.3 6.2 6.0 4.1 5.5 4.9 5.1 4.6 4.6 3.9 3.7 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Yield on Loans (%)(b) Yield on Securities (%) 11.3 10.6 9.8 10.8 10.0 9.2 8.
Slide 20: NII up 7.9% YoY
2013 Earnings Presentation NII up 7.9% YoY Interest Income Net Interest Income (TRY million) Interest Expenses Breakdown of Interest Income (%) 6.6% 7.9% 1,293 1,245 1,229 4,829 22% on Securities 1,203 1,153 4,476 2,393 2,254 2,138 2,261 2,552 8,991 9,205 (1,099) (1,009) (935) (1,108) (1,323) (4,515
Slide 21: Quarterly increase in fees&commissions sustained in full year
2013 Earnings Presentation Quarterly increase in fees&commissions sustained in full year Net Fees & Commissions Income (TRY million) 12.4% 2.7% 8.3% 245 238 930 218 218 229 858 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 2012 2013 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenues (%)
Slide 22: Investments paying off, OpEx now including one-off impact
2013 Earnings Presentation Investments paying off, OpEx now including one-off impact Operating Expenses (TRY million) 26.6% 16% 97 2,655 697 119 81 2,436 647 673 638 100 21 Other 610 139 Payroll 2,098 Rent Credit acquisition Account Card (b) cost Salary change in increase personnel dividend Q4-12 Q1
Slide 23: Solvency Ratios
2013 Earnings Presentation Solvency Ratios Capital Ratios (%) Details on Capital Ratio CAR Tier 1 Ratio Basel II (TRY mn) 2013 16.2 15.9 Credit Risk Base Amount (CRBA) 93,479 14.7 Market Risk Base Amount (MRBA) 3,039 14.0 13.9 Operational Risk Base Amount (ORBA) 8,912 14.3 14.1 Total Risk Weighted A
Slide 24: Branch Network - Human Resources
2013 Earnings Presentation Branch Network - Human Resources > 56 new branches opened in 2013. > Total branch number reached 872. Number of New Branches in 2013 ATMs Kırklareli Bartın 2,836 2,961 2,554 Sinop Edirne Zonguldak Kastamonu 2,157 Tekirdağ İstanbul Artvin Ardahan Karabük Samsun Kocaeli Düzc
Slide 25: Balance Sheet
2013 Earnings Presentation Balance Sheet QoQ YoY In TRY million 2012 Sep-13 2013 Change% Change% Cash and Balances Held with the Central Bank(a) 12,488 17,333 19,976 15.2 60.0 Banks & Money Market (b) 2,632 1,893 1,849 (2.3) (29.8) Securities (b) 22,954 24,498 28,559 16.6 24.4 Net Loans (b) 65,894 8
Slide 26: Income Statement
2013 Earnings Presentation Income Statement In TRY million YoY QoQ YoY 2012 2013 % Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 % % Interest Income 8,991 9,205 2.4 2,393 2,254 2,138 2,261 2,552 12.9 6.6 On Loans 6,731 7,134 6.0 1,771 1,728 1,721 1,783 1,903 6.7 7.4 On Securities 2,239 2,053 (8.3) 613 520 415 474 6
Slide 27: Subsidiaries
2013 Earnings Presentation Subsidiaries Halk Insurance (TRY million) 19% Non-Life GWP 174% Net Profit 470 • One of the most profitable non-life insurer 395 42 in the industry • RoE of 25.8% as of 2013 15 • RoA 8.4% as of 2013 2012 2013 2012 2013 Halk Life and Pension (TRY million) One of the best in
Slide 28: Subsidiaries
2013 Earnings Presentation Subsidiaries Halk Invest (TRY million) • #1 in public offerings with a market share of 76.8% in equity issuances 105% Asset Size 106% Trading Volume as of YE13 • #1 in public offerings with a market share of 27.8% in domestic sales as 554 of YE13 32.142 • Consortium Leader
Slide 29: 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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