Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — 9M 2021 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2021

  1. Slide 1: 9M 2021 Earnings Presentation

    9M 2021 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: Asset Growth

    9M 2021 Earnings Presentation FX liquidity continued to rise while the total FX wholesale > FX LCR is at 470%, well above funding maturing in 12 months limited at USD 357 mn the regulatory limit of 80%. Asset Mix (%) Asset Growth Loans Securities Bank Placements CBRT Receivables Cash YoY 9.1% QoQ 1.

  4. Slide 4: Boosted CPI linker gain driven by valuation adjustment and increased share

    9M 2021 Earnings Presentation Boosted CPI linker gain driven by both its valuation adjustment and from the linkers’ increased share within the total portfolio Total Securities Portfolio (TRY billion) Securities Classification (TRY billion)(*) Total Securities / Total Assets (%) Fixed Rate (FX) Other

  5. Slide 5: Balanced YoY loan growth backed by SME segment

    9M 2021 Earnings Presentation Balanced YoY loan growth backed by SME segment CGF Utilization (TRY bn) Current loan amount Jun-21 Sep-21 50.5 44.3 (TRY billion)(a) 2.2% Total Loans -0.5% HALKBANK B. Sector(b) YoY YoY 440.9 438.9 2.2% 13.6% 430.2 429.3 QoQ QoQ 425.8 -0.5% 3.1% Business Loans TRY Loans

  6. Slide 6: TRY and SME dominated & well-collateralised loan portfolio

    9M 2021 Earnings Presentation TRY and SME dominated & well-collateralised loan portfolio Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 4% FX SME 7% Commercial 3% 22% SME 44% Corporate 90% Corporate 34% CGF 15% TRY 78% Cooperative 38%(b) Retail 18% Sectoral Breakdown of Lo

  7. Slide 7: Below sector NPL ratio maintained with an increasing coverage

    9M 2021 Earnings Presentation Below sector NPL ratio maintained with an increasing coverage NPL Portfolio (TRY million)(a) NPL Coverage (%)(a) 16,918 65.3 64.0 16,189 15,822 15,849 15,751 64.1 59.1 60.1 Sep-20 2020 Mar-21 Jun-21 Sep-21 Sep-20 2020 Mar-21 Jun-21 Sep-21 Loans under Close Watch (TRY mi

  8. Slide 8: NPL ratio by segments

    9M 2021 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (*) Corporate - Commercial (%) Consumer Loans (%) 3.6 3.7 3.9 3.5 3.3 3.3 3.0 2.9 2.9 3.7 2.7 2.6 3.1 2.9 2.7 2.5 1.6 1.7 2.6 1.8 Sep-20 2020 Mar-21 Jun-21 Sep-21 Sep-20 2020 Mar-21 Jun-21 Sep-21 SME Loans (%) Credit Cards (

  9. Slide 9: Asset quality dynamics on a quarterly basis

    9M 2021 Earnings Presentation Asset quality dynamics on a quarterly basis Provisions and Reversals (TRY million) Provision Reversals S1 Provisions S2 Provisions S3 Provisions 725 125 • Includes roughly a TRY 0.3 bn. NPL reversals due to 350 164 the improvement in customers’ scorings and roughly 891

  10. Slide 10: Steadily growing share of deposits mirrored in LDR, comfortably low at 85.1%

    9M 2021 Earnings Presentation Steadily growing share of deposits mirrored in LDR, comfortably low at 85.1% Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D 88.1% 88.3% 89.0% 89.1% 88.9% Deposits Marketable Funds Borrowed Securities Issued Interbank Money Mar

  11. Slide 11: Expanded TRY deposit base in line with declining costs, market share at 14%

    8 -6.36 3 9M 2021 Earnings Presentation Expanded TRY deposit base in line with declining costs, preserved market HALKBANK B. Sector(b) share at 14% YoY 42.4% 21.6% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 5.8% 5.4% YoY 21.1% 19.5% YoY 5.8% 17.0% in USD YoY 24.5% 6.3% QoQ 5.5% 6.5% QoQ 5.2% 7.

  12. Slide 12: Increasing share of demand deposits, 19.4%

    9M 2021 Earnings Presentation Increasing share of demand deposits, 19.4% Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%)(b) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 19.8% 18.6% 19.4% 18.6% 18.1% 80.2% 81.4% 81.9% 81.4% 80.6% FX 49%

  13. Slide 13: Cost – Yield – Spread

    9M 2021 Earnings Presentation Cost – Yield – Spread Blended Cost - Yield - Spread (%) Spreads (%) Yield on Loans Cost of Deposits(*) Spread TRY Core FX Core Blended Core 6.2 5.6 4.8 3.7 4.4 9.3 12.5 4.2 9.2 10.5 11.1 4.1 1.9 2.2 1.7 2.1 4.2 4.1 2.2 1.7 2.1 (5.1) (7.1) (8.7) (9.0) (8.4) -1.0 -1.0 -2.

  14. Slide 14: Improved NII accompanied by soaring F&C

    9M 2021 Earnings Presentation Improved NII accompanied by soaring F&C Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly Swap adj. (YtD) Swap adj. (QoQ) 294% 4.5 3.8 2.8 4.0 5,620 2,505 -99 1,084 4,269 1.7 0.7 1.2 4.3 -0.1 3.9 3.5 1.6 0.3 -0.1 1.0 14,230 15,514

  15. Slide 15: Details of profitability metrics

    9M 2021 Earnings Presentation Details of profitability metrics Core Operating Revenues (TRY million)(a) Q3-21 Revenue Walk (TRY million) 163% 511 1,132 4,269 6,315 5,401 (2,728) 3,160 92 2,053 (2,387) (705) 625 NII Net F&C Income Net Trading Income Total Provisions Net Income (Q3-21) Other (b) OPEX

  16. Slide 16: Details of operating expenses

    9M 2021 Earnings Presentation Details of operating expenses Operating Expenses (TRY million)(*) Operating Expenses / Average Assets (%) 14.8% 7,961 1.31 1.27 1.30 6,672 1.19 1.19 5,812 4,285 2,199 Sep-20 2020 Mar-21 Jun-21 Sep-21 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Cost/Income (%)(*) Breakdown of Operatin

  17. Slide 17: Solvency Ratios

    9M 2021 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Details on Capital Ratio Cons. Basel III Uncons. Basel III (TRY mn) Sep-21 Sep-21 15.4 15.2 14.6 13.7 Credit Risk Base Amount (CRBA) 426,821 412,371 13.4 Market Risk Base Amount (MRBA) 17,093 14,773 12.8 12.6 1

  18. Slide 18: Continuous improvement in digital reflected in the numbers

    9M 2021 Earnings Presentation Continuous improvement in digital reflected in the numbers Active Digital Customers by Types (million) # of Total Active Digital Customers(a) # of Active Mobile-only Customers # of Active Internet-only Customers 33% 4.3 3.6 3.9 # of active digital banking customers 3.5

  19. Slide 19: Branch Network – Human Resources

    9M 2021 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branches Deposits/Branches Internet Automatic Banking 7% Payment 4% 526.3 502.7 ATM 22% 454.1 468.3 438.4 448.0 Mobile Call Center 6% 435.9 435.7 442

  20. Slide 20: Annex

    9M 2021 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) 9M-20 9M-21 Total Assets 724,242 10.3 Loan Growth (YtD, %) 33.9 12.9 Loans (a) 438,907 10.9 Deposit Growth (YtD, %)(c) 33.8 18.4 TRY Loans 342,132 13.2 LDR (%) 103.4 97.8 FC Loans 96,775 6.7 NPL (%) 4

  21. Slide 21: Balance Sheet

    9M 2021 Earnings Presentation Balance Sheet In TRY million Sep-20 2020 Jun-21 Sep-21 QoQ (%) YtD (%) YoY (%) Cash and Balances Held with the Central Bank(a) 41,374 63,476 71,107 74,259 4.4 17.0 79.5 Banks & Money Market(b) 3,567 2,146 3,063 2,484 (18.9) 15.8 (30.4) Securities(b) 157,898 159,200 167,

  22. Slide 22: Income Statement

    9M 2021 Earnings Presentation Income Statement In TRY million Sep-20 Sep-21 YoY% Q3-20 Q2-21 Q3-21 QoQ (%) YoY (%) Interest Income 38,225 53,361 39.6 14,230 17,999 20,190 12.2 41.9 On Loans 27,826 37,979 36.5 10,076 12,478 14,216 13.9 41.1 On Securities 10,206 14,371 40.8 4,066 5,153 5,562 7.9 36.8

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  24. Slide 24: For further information please contact halkbank.IR@halkbank.com.tr

    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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