Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR
Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — Q3 2011 Earnings Presentation
42 slides from Turkiye Is Bankasi Anonim Sirketi's earnings presentation, Sep 30, 2011
Slide 1: Isbank Investor Presentation 2011-Q3
ISBANK INVESTOR PRESENTATION ~ ih ) 2011-Q3
Slide 2: Disclaimer
The information in this document has been obtained by Turkiye Is Bankasi A.S. (“Isbank”) from sources believed to be reliable, however, Isbank cannot guarantee the accuracy, completeness , or correctness of such information. This document has been issued for information purposes only. The financial
Slide 3: Agenda
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 Major Equity Participations 36 3
Slide 4: Isbank at a Glance
Financial Highlights 9 Retail Bankingg 31 Major Equity Participations 36 4
Slide 5: Isbank at a Glance: ownership and branch network
FreeFloat Free Float 31,84% Stocks are quoted at ISE and also traded at LSE in the form Ataturk Shares Isbank Pension Fund of GDR 28,09% 40,07% Largest stake owned by employees via pension fund 1,177 domestic branches country‐wide (Largest among private banks), and 17 foreign branches 4,443
Slide 6: Other Financial Services / Banking Services
Other Financial Services Banking Services
Slide 7: Market Share and Rank
Market Share(%) Rank(2) 2011 Q3 Total Assets (1) 13.8 1st Loans(1) Total Loans 13.5 1st TRY Loans 12.5 1st FX Loans 15.8 2nd Consumer Loans 11.1(3) 1st Deposits(1) TRY Deposits 13.3 1st FX Deposits 15.6 1st Demand Deposits 16 1 16.1 1st Total Deposits 14.1 1st Retail Products(4) Volume of Debit Card
Slide 8: Financial Highlights
Isbank at a Glance 5 Retail Banking 31 Major Equity Participations 36 8
Slide 9: Total Assets, Loans, Deposits, Shareholders' Equity
Total Assets (TRY mn mn.) .) Loans (TRY mn mn.) .) 85.433 160.005 131.796 64.232 113.223 97.552 47.610 48.335 80.181 33.980 2007 2008 2009 2010 2011 Q3 2007 2008 2009 2010 2011 Q3 Deposits (TRY mn mn.) .) Shareholders’’ Equity (TRY mn Shareholders mn.) .) 95.544 17.014 17.882 88.260 72.177 13.494 63
Slide 10: Asset Composition
Asset Composition (TRY mn.) 2010 2011 Q3 Change 9% Cash & Banks Cash & Banks 11,708 19,831 69% 12% Securities (Net) 45,437 42,365 ‐7% 26% 34% Securities Loans 64,232 85,433 33% Participations (Net) 6,264 6,984 11% Loans Fixed Assets (Net) 1,918 1,952 2% 49% 53% Participations Other Assets 2,237 3,44
Slide 11: Loan Portfolio
Loan Portfolio QoQ (TRY mn.) Loans / Deposits 89,4% 91,8% 85,4% 72,8% 73,5% 71,2% 85.433 76.788 50.773 54.750 26.015 30.683 TRY FX * Total 2010 2011 Q3 2011 Q2 2011 Q3 Loans/Deposits TRY Loans/TRY Deposits FX Loans/FX Deposits * 2% increase in FX loans when adjusted for the change in exchange rate.
Slide 12: Total Loans and Consumer Loans
…49 49%% comprised of retail Total Loans Consumer Loans (TRY mn mn.) .) d SME loans and l loans. . 14,401 17,532 22% 21% Retail Loans General Purpose 7% 28% 48% 50% Consumer Loans 8% 21% Auto Loans 23% Consumer * 6% 6% Credit Cards Housing Loans SME** Retail Overdraft 47% 51% 44% 43% Corporate & Com
Slide 13: NPL Ratio and Management of NPLs
NPL Ratio Management of NPLs 100% NPL provisioning 100% since 2003 2003… … ‐0,1% ‐0,2% ‐0,4% ‐0,3% 4,6% 3,6% ‐1,0% 1 0% 3,2% 2,8% 2,5% 32 33 10 Q3 10 Q4 11 Q1 11 Q2 11 Q3 TRY mn. 244 236 230 190 205 185 172 143 149 ‐41 ‐147 ‐147 ‐14 ‐64 Coverage 10 Q3 10 Q4 11 Q1 11 Q2 11 Q3 117,8% 126,1% 100,0% ‐ N
Slide 14: NPL Ratio by Loan Categories
NPL Ratio by Loan Categories NPL Breakdown 9,1% 6,9% 83% 3,6% 94% 96% 97% 99% 2,9% 2,5% 1,9% 17% 4% 3% 1% 6% Consumer* Credit Cards Total Loans 2010 2011 Q3 2007 2008 2009 2010 2011 Q3 * Includes retail overdraft accounts. Restructured Other NPLs Performing Loan Groups 98,5% 1,5% I. Group Loans II.
Slide 15: Breakdown of Securities Portfolio
Breakdown of Securities Portfolio Total Portfolio 45,4 TRY 42,4 39,3 g; FX Floating; Discount & 35,6 5,9% Fixed ; 32,2 29,6% 27,4 FX Discount TRY & Fixed ; Floating; 18,2% 11,9 9,9 , 6,4 10,2 , 5,5 , 8,0 , 55 46 3% 46,3% 2009 2010 2011 Q3 TRY Securities (TRY bn.) FX Securities (TRY bn.) FX Securitie
Slide 16: Liabilities Composition
(TRY mn.) 2010 2011 Q3 Change Liabilities Composition Deposits 88,260 95,544 8% 13% 11% Equity REPOs & Money Market 10,159 20,364 100% 6% 7% Funds Borrowed* 8,042 14,676 82% 6% Other 9% Other 8,321 11,539 39% 8% 13% Funds Equity 17,014 17,882 5% Borrowed* Borrowed Total Liabilities 131,796 160,005 2
Slide 17: Deposit Base
l ... a clear i di t indicator off customer trust trust.. Deposit Base 95,5 88,3 72,2 59,6 59,6 44,7 35,9 62% 27,5 28,7 68% 18,5 18 6 18,6 19 4 19,4 62% 64% 2009 2010 2011 Q3 TRY Deposits (TRY bn.) FX Deposits (TRY bn.) FX Deposits * (USD bn.) Total Deposits (TRY bn.) * USD equivalent. 17
Slide 18: Deposits and Market Shares
Deposits QoQ (TRY mn.) Market Shares %2 95.544 15,5% 15,6% 90.007 58.625 59.636 14,4% 14,0% 14,1% 31.382 35.908 13,3% TRY FX * Total 2010 2011 Q Q3 2011 Q2 2011 Q3 TRY Deposits FX Deposits Total Deposits * 1% decrease in FX deposits when adjusted for the change in exchange rate. Deposits YtD (TRY mn
Slide 19: Demand Deposits
…make significant contribution to lower cost of Demand Deposits (TRY mn mn.) .) Share of Demand Deposits in Total Deposits funding.. funding 2011 Q3 17,706 14,469 11,259 81,5% 56% 64% 8,788 7,991 60% 18,5% 54% 55% 44% 36% 46% 40% Demand Deposits Other Deposits 45% 2007 2008 2009 2010 2011 Q3 TRY FX
Slide 20: Client Assets and Investment Accounts
... has reached a remarkable Client Assets ((TRY mn.) mn.)) No. Of Investment Accounts ((000)) total of TRY 143 billion. billion. 142,725 133,835 9.736 107,320 8.838 On‐Balance Shee 90,617 7.498 79,821 67% 6.158 66% 5.231 et 67% 70% 61% 15% 13% 9% 11% 12% Off‐Balance Sheet O 200 2007 2008 2009 20 0
Slide 21: Capital Adequacy and Regulatory Capital
Capital Adequacy Regulatory Capital (TRY mn mn.) .) High CAR support supportss balance sheet growth going forward… forward … 18.252 17.935 17.056 16.996 16.319 16.189 15.925 18,0% 15.178 15.102 17,5% 4.624 16,6% 6,3% 6,1% 5,7% 14,7% 6% 3% 13,1% % 14,6 14 16 1 14,3 16 1 1 10 Q3 10 Q4 15 11 Q1 11 Q2 1
Slide 22: Operating Income Composition QoQ
Change (TRY mn.) 2011 Q2 2011 Q3 QoQ Operating Operati ng Income Composition N Interest Net I IIncome 1,076 1,052 ‐2% Net Fees & Commissions 364 358 ‐2% NII Net Trading Gains/Losses ‐29 ‐42 ‐45% 50% 61% Dividends Received 456 0 Net Commissions ‐ 17% Released R l d Provisions P ii 246 215 ‐13% % 21%
Slide 23: Operating Income Composition YoY
Change (TRY mn.) 2010 Q3 2011 Q3 YoY Operating Operat ing Income Composition Net Interest Income 3 468 3,468 3 247 3,247 ‐6% 6% Net Fees & Commissions 922 1,026 11% NII Net Trading Gains/Losses 279 28 ‐90% 56% 56% Net Commissions Dividends Received 369 556 51% Released Provisions 879 749 ‐15% 15% 15
Slide 24: Fees and Commissions Received
... supported by superior Fees and Commissions Received (Gross) Gross) Gross Commission Income (TRY mn mn.) .) retail and corporate franchise.. franchise (TRY million) 2010 Q3 2011 Q3 Change 1.144 Non‐Cash Loans 88 94 7% 1.006 Credit Appraisal 106 124 17% Mutual Fund Man. Man & Other Inv. Inv Acc. F
Slide 25: Net Interest Margin
NIM (1) Adj. NIM (1) (3) 5,97% (2) 5,96% 4,35% 4,54% (4) (2) 3,42% 4,54% 4,05% (4) 3,17% 1,72% 1,10% 0,97% 1,27% 2010 2011 Q3 2010 2011 Q3 TRY FX Blended TRY FX Blended 1) Interest I t t Earnings E i A t include Assets i l d TRY and d FX reserves att Central C t l Bank, B k which hi h are currently
Slide 26: Cost / Income
Cost / Income Cost vs. Income (TRY mn mn.) .) 45,2% 44,5% 40,6% 36,7% 34,0% 6.147 5.822 2.380 2.589 2007 2008 2009 2010 2011 Q3 2010 Q3 2011 Q3 Cost Income Cost vs. Assets Cost Structure 10% 7% Other 4% 4% 6% 6% 3,0% 28% 29% SDIF Fees 2,7% 2,6% 2,4% Depreciation 52% 54% Administrative Expenses Staff
Slide 27: ROAE and ROAA
ROAE ROAA 2,4% 2,3% 28 8% 28,8% 2,2% 2,2% 28,2% 2,0% 24,3% 1,7% 1,7% 21,6% 20,7% 1,6% 19,6% 1,4% 17 0% 17,0% 15,1% 16,1% 1,2% 13,8% 2007 2008 2009 2010 2011 Q3 2007 2008 2009 2010 2011 Q3 ROAE ROAE* ROAA ROAA* * Banking business (Excluding equity participations portfolio) 27
Slide 28: Market Cap, Earnings and Payout Ratio
Cap.. Comparison (TRY Market Cap (TRY mn .)) mn.) Earnings & Payout Ratio 32.7% 32.1% 36.1% 34.6% 23.2% 23.2% 24.836 32.4%** 21.714 20.311 19.450 2.982 2.372 11.342 1.702 1.509 1.109 956 2007 2008 2009 2010 2011 Q3 635 Isbank is included in the following indices: • ISE‐100 2004 2005 2006 2007 2008 2
Slide 29: Credit Ratings
Rating Outlook Rating Outlook Long Term FC IDR BBB‐ Positive Global Scale Long Term LC IDR BBB‐ Positive Longg Term Counter Partyy Credit BB Positive SShort o Term e FC C IDR F3 3 ‐ Long Term Certificate of Deposits BB ‐ Short Term LC IDR F3 ‐ Short Term Counter Party Credit B ‐ National Long Term A
Slide 30: Retail Banking
Isbank at a Glance 5 Financial Highlights 9 Major Equity Participations 36 30
Slide 31: Credit Cards
18 different products for different customer segments 94,516 merchant firms and 224,888 chains are included in loyalty programme. The number of cards reached 8.4 million, 6 million of which are issued to Bank Bank’ss own customers. customers The first bank in Turkey which has made an agreement with
Slide 32: Isbank is the market leader in mutual fund business
Isbank is the market leader in mutual fund business business.. 32
Slide 33: Mutual Funds
... 39 types of mutual funds Mutual Funds (TRY (TRY mn.) mn.) Number of Investors designed d i d for f different diff t risk i k appetites.. appetites 693.003 726.041 6.776 7.090 6.609 646.754 582.249 590.000 5.140 5.165 2007 2008 2009 2010 2011 Q3 2007 2008 2009 2010 2011 Q3 Income From Funds (TRY
Slide 34: Payroll Accounts and Automated Bill Payments
... supported by payroll accounts and bill p payment y Payroll y Accounts Automated Bill Payments y agreements.. agreements 16.007 16.216 14.748 12 730 12.730 5.679.570 5.310.328 2010 Q3 2011 Q3 2010 Q3 2011 Q3 Amount (TRY million) Amount (TRY million) Number of Active Payments Number of payroll acc
Slide 35: Major Equity Participations
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 35
Slide 36: One of the biggest conglomerates in Turkey
...as one of the biggest ...as gg conglomerates in Turkey. Turkey. 36
Slide 37: Sectoral Breakdown of Participations
Sectoral Bre Breaakdown Financial Non‐Financial 37,1% 62,9% Telecom Other 11,1% 11 1% 7 3% 7,3% Banks Glass 13,3% 44,5% Non‐financial Financial Insurance Financial Fi i l Ins. I 14 3% 14,3% TRY 4.8 48 billion 9,5% Non ‐ Listed 29,0% , Listed 71,0% As of 30 September 2011 2011,, Isbank has 22 partici
Slide 38: Isbank (68%) Sisecam General Information
Isbank (68%) General Information Market/Production Market/Production Shares (%) * A leading flat glass, glassware, glass packaging, glass Turkey Europe2,3 23 World3 fibre, soda ash and chromium chemicals producer in the Flat Glass 70.0 13.4 4.0 domestic market. Backed by its vision, Şişecam expa
Slide 39: Sisecam production facilities in neighbouring countries
The Group obtains efficiency and spreads its operational risk by positioning its production facilities in the fast growing neighbouring countries.. * countries Flat Glass Glassware Glass Packaging Chemicals and Mining * Flat glass investment in Russian Federation is planned to be completed by 2013.
Slide 40: Avea
İşbank* 18.63% Turk Telekom 81.37% Avea has been created through the merger of Aria and Aycell in February 2004 2004.. Avea brand has been successfully launched in June 2004 2004.. After the merger merger,, due to the integration of 2 GSM networks, networks, not only the coverage and efficiency have
Slide 41: Major Equity Participations by Field of Activity
Assets Shareholders’ Market Field of Risk Bank’s Direct Equity (USD 000) Share (%) Basis for Market Company Name Group (USD 000) Share Activity Share(%) Share (%) (3) (3) (3) Türkiye Sınai Kalkınma Bankası A.Ş. Investment Bank 40.52 50.00 5,279,927 811,342 24.9 Total Assets İşbank GmbH Banking 100.0
Slide 42: Investor Relations Contacts
Süleyman H. Özcan Head of Investor Relations Division Phone : + 90 212 316 16 02 E‐mail : suleyman. suleyman.ozcan@isbank ozcan@isbank..com com..tr Alper Turgal Assistant Manager of Investor Relations Division Phone : + 90 212 316 16 10‐ 10‐316 95 42 / 316 30 36 E‐mail : alper. alper.turgal@isbank t
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