Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — FY2008 Earnings Presentation

27 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2009

  1. Slide 1: 2008 Earnings Presentation

    2008 Earnings Presentation BRSA Bank Only

  2. Slide 2: Operating Environment 2008-2009 Macro Picture

    2008 Earnings Presentation Operating Environment 2008-2009 Macro Picture The end of uninterrupted growth episode: > GDP growth came down to 0.5% as of 3rd Quarter 2008, from 6,7% of the 1st Quarter 2008. > Sharp decline in capacity utilization, industrial production and consumer confidence combined

  3. Slide 3: Operating Environment 2008-2009 Macro Picture

    2008 Earnings Presentation Operating Environment 2008-2009 Macro Picture A big surprise by CBRT; Aggressive easing cycle in TRY policy rates: > Policy rate has started 2008 with 15.75%, reached its peak at 16.75% in July. From mid-November to March 2009, CBRT has cut the rates to 11.5% by 525bps. Fu

  4. Slide 4: Operating Environment 2008 Turkish Banking System

    2008 Earnings Presentation Operating Environment 2008 Turkish Banking System > Relatively lower level of indebtedness in the country, solid funding sources (customer deposits heavy), already strong capital ratios and conservative provisioning strategies are among the factors rendering Turkish Bankin

  5. Slide 5: Halkbank: 2008 Highlights

    2008 Earnings Presentation Halkbank: 2008 Highlights > Profitable growth has always been the top priority • The bank achieved 27% asset growth while sustaining a very high 23.5% RoE, the highest among the peer group. > Solid and sound funding base • Main source of funds for lending and investments a

  6. Slide 6: Performance matrix based on major ratios

    2008 Earnings Presentation 2008 Performance matrix based on major ratios (a) Loan Deposit Loan to ROE NIM C/I CAR Growth Growth Deposits Halkbank 23.5% 4.9% 37.6% 14.5% 42.6% 30.6% 64.2% Peer 1 21.4% 4.3% 48.2% 16.1% 34.1% 34.8% 94.7% Peer 2 17.7% 4.7% 55.6% 15.7% 35.7% 29.7% 92.7% Peer 3 15.6% 4.7%

  7. Slide 7: The Assets have grown by 27% while the mix continued changing in favor of loans

    2008 Earnings Presentation The Assets have grown by 27% while the mix continued changing in favor of loans ASSET GROWTH IEA Asset Mix (%) YoY 27.0% QoQ 7.2% 93.9% Loans Securities Other Assets Total Asset Growth (TRY billion) Composition of IEAs (a) 48.4% 27.0% 33.8% 45.0% 50.6% 51.1 93.7% 93.2% 93.

  8. Slide 8: 78.8% of total liabilities are customer deposits

    2008 Earnings Presentation 78.8% of total liabilities are customer deposits; which consists of mostly retail customers. Composition of IBLs (a) Liabilities Mix (%) Deposits Other Liabilities Funds Borrowed Shareholder’s Equity Interbank Money Market 83.6% 83.5% 86.5% FX 27.3% 28.7% 34.5% 78.9% 79.4%

  9. Slide 9: A large portion of securities have been transferred to HTM

    2008 Earnings Presentation A large portion of securities have been transferred to HTM in order to mitigate pressure on CAR Total Securities Portfolio (TRY billion) Total Securities Composition (2008) HTM AFS Trading 18.1 18.3 3% 3% 1% 15.9 7.8 billion TRY, 1 billion 53% 61% 13% USD and 315 million E

  10. Slide 10: FRNs are still dominant as they offer higher yields

    2008 Earnings Presentation FRNs are still dominant as they offer higher yields Total Securities Portfolio (a) (%) FX Securities Portfolio (a) (%) FIX 22 29 29 32 33 FIX 56 66 63 71 79 FRNs 78 71 71 68 67 FRNs 44 34 37 29 21 2007 Mar-08 Jun-08 Sep-08 2008 2007 Mar-08 Jun-08 Sep-08 2008 TRY Securities

  11. Slide 11: Solid loan growth - driven by commercial loans

    2008 Earnings Presentation Solid loan growth - driven by commercial loans (TRY billion) (a) 40.8% 25.0 YoY Change (%) 23.8 TOTAL LOANS 1.1 Fund Loans 1.1 up by 9.4% HALKBANK SECTOR (b) 3.1 3.1 Cooperative Loans YoY 40.8% YoY 29.1% up by 18.2% 17.8 5.5 1.0 Retail Loans TRY LOANS 2.6 5.6 up by 33.2% H

  12. Slide 12: Retail Loans grew by 33.2% - well above the sector figure

    2008 Earnings Presentation Retail Loans grew by 33.2% - well above the sector figure (TRY million) (a) 33.2% 5,647 5,485 HALKBANK 33.2% YoY Change (%) 4,118 3,191 3,080 SECTOR Consumer Loans up by 46.4% Share in total 56.2% 2,104 24.6% (b) 2,137 2,045 1,012 1,961 1,680 Housing Loans up by 16.7% Shar

  13. Slide 13: FX loans are gaining ground and Loan to Deposit ratio is comfortable at 64.2%

    2008 Earnings Presentation FX loans are gaining ground and Loan to Deposit ratio is comfortable at 64.2% Loans by Currency (a) (TRY million) Loan to Deposit (%) Loans By Types (%) (2007) Funds 6% Commercial 56% Cooperatives 64.2 15% 1,829 3,015 6,540 26.1% 58.8 FX FX FX 42.8 Retail 23% 2006 2007 200

  14. Slide 14: Relatively low concentration on recession hit sectors

    2008 Earnings Presentation Relatively low concentration on recession hit sectors Halkbank Sectoral Diversification (%) Sector (a) 23.0% 22.3% 19.1% 19.6% 17.7% 13.1% 6.5% 5.9% 6.8% 5.6% 4.7% 4.9% 4.4% 4.6% 4.2% 4.0% 3.8% 4.0% 3.5% 3.1% 2.8% 2.7% 2.7% 2.4% 2.0% 1.7% 1.0% 1.7% 1.3% 0.5% 0.2% 0.2% Reta

  15. Slide 15: NPLs and LLPs increased as expected particularly in the 4th Q 2008

    2008 Earnings Presentation NPLs and LLPs increased as expected particularly in the 4th Q 2008 NPL Portfolio (TRY million) NPL Coverage (%) Halkbank Sector (a) 1,251 98.7 1,085 1,033 1,077 86.8 82.9 79.7 2006 2007 Sep-08 2008 2007 2008 NPL/Total Loans (%) Loan Loss Provisions/Average Net Loans (%) 8.

  16. Slide 16: NPL ratio increased by 40 bps in line with the sector

    2008 Earnings Presentation Halkbank Sector (a,b) NPL ratio increased by 40 bps in line with the sector NPL/Total Loans (a) (%) Consumer Loans (b) (%) 5.4 2.7 5.0 4.7 2.2 4.4 1.9 2.0 4.3 1.6 1.6 3.6 1.1 1.2 3.5 0.9 3.1 3.1 3.1 0.7 2007 Mar-08 Jun-08 Sep-08 2008 2007 Mar-08 Jun-08 Sep-08 2008 SME Loan

  17. Slide 17: Sound deposit base - driven by retail customers

    2008 Earnings Presentation Sound deposit base - driven by retail customers TRY Deposits by Types (a) (TRY billion) Total Deposits by Currency (a) (TRY billion) Other Institutions Public Sector Interbank Commercial Savings 39.9 TOTAL DEPOSITS 26.7 37.2 HALKBANK SECTOR (b) 25.6 9% 30.6 YoY 30.5% YoY 2

  18. Slide 18: Cost-Yield-Spread

    2008 Earnings Presentation Cost-Yield-Spread (a) Cost of Deposits (%) Spreads (%) On Securities On Loans 6.9 12.8 6.5 12.1 12.2 6.2 11.2 11.3 5.7 5.8 4.5 3.7 3.9 3.6 3.1 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Yield on Loans (b) (%) Yield on Securities (%) 18.7 18.6 17.3 18.1 17.

  19. Slide 19: Improvement in Income Structure

    2008 Earnings Presentation Improvement in Income Structure Net Interest Income (TRY million) 3.6% 21.3% 525 532 525 544 2,126 479 1,752 1,398 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 2006 2007 2008 Interest Income (TRY million) On Securities On Loans Interest Income on Loans/Total Interest Income (%) 1,101 965

  20. Slide 20: Fee & Commission Income increased by 25% YoY

    2008 Earnings Presentation Fee & Commission Income increased by 25% YoY Net Fee & Commission Income (TRY million) 25.0% 100 88 89 92 89 370 296 204 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 2006 2007 2008 Breakdown of Fee & Commission Income (2008) Net Fee & Commission Income/Total Operating Revenues (%) Non-Ca

  21. Slide 21: Tight cost control, modest operating expenses

    2008 Earnings Presentation Tight cost control, modest operating expenses Operating Expenses (TRY million) Operating Expenses/Average Assets (%) 5.6% 18.2% 279 1,002 2.4 2.3 264 2.2 246 848 204 214 723 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 2006 2007 2008 2006 2007 2008 Cost/Income (%) Breakdown of Operating

  22. Slide 22: Key Ratios

    2008 Earnings Presentation Key Ratios ROE (%) ROA (%) 27.7 3.0 24.4 2.8 23.5 2.2 2006 2007 2008 2006 2007 2008 Net Interest Margin (%) CAR (%) (a) 5.7 32.0 5.0 4.9 4.6 20.0 14.5 2006 2007 2008 Feb-09 2006 2007 2008 (a) Temporary data. Financial Institutions and Investor Relations 21 www.halkbank.com

  23. Slide 23: Performance Outlook 2009

    2008 Earnings Presentation Performance Outlook 2009 > Sustainable profitability is the top priority; growth is secondary. > Lowest Loan/deposit ratio still provides room for Halkbank; depending on the market conditions; loan growth can outperform the sectoral average. > Long term strategy of the Ban

  24. Slide 24: Appendix

    2008 Earnings Presentation Appendix Financial Institutions and Investor Relations 23 www.halkbank.com.tr

  25. Slide 25: Balance Sheet

    2008 Earnings Presentation Balance Sheet In TRY million 2006 2007 2008 YoY (%) Cash and Balances Held with Central Bank (a) 2,551 3,471 3,009 (13) Banks 1,079 1,212 2,119 75 Securities (b) 18,139 15,945 18,334 15 Net Loans (b) 11,646 18,121 25,836 43 Gross NPL 1,085 1,033 1,251 21 NPL Net 15 14 214

  26. Slide 26: Income Statement

    2008 Earnings Presentation Income Statement In TRY million 2006 2007 2008 YoY (%) Q1-08 Q2-08 Q3-08 Q4-08 Interest Income 4,592 5,708 6,793 19 1,511 1,613 1,739 1,930 On Loans 1,541 2,650 3,773 42 827 881 965 1,101 On Securities 2,849 2,812 2,776 (1) 622 673 715 765 Interest Expense 3,195 3,956 4,66

  27. Slide 27: 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 Bankas› 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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