Yapi Ve Kredi Bankasi A.s. · BIST:YKBNK
Yapi Ve Kredi Bankasi A.s — Yapı Kredi — Debt Investor Presentation (March 2012)
38 slides from Yapi Ve Kredi Bankasi A.s's debt investor presentation, March 2012
Slide 1: Yapı Kredi Fixed Income Investor Presentation
Yapı Kredi Fixed Income Investor Presentation March 2012
Slide 2: Agenda
Agenda Executive Summary Turkish Economy and Banking Sector Overview Business Highlights Financial Highlights Outlook Annex 2
Slide 3: Executive Summary
Executive Summary As the 17th largest economy1 in the world and a member of G20, Turkey is a dynamic country with a unique ability to cope with change. The country stands out with favourable demographics, solid/improving macroeconomic fundamentals, growth potential and low leverage Turkish banki
Slide 4: Yapı Kredi Highlights
Yapı Kredi Highlights 1944 Deep-rooted private bank with a nationwide presence 59% Highest in the sector due to customer-business focus founding year loans/assets 2006 Largest merger in the Turkish banking sector 18% Lowest in the sector merger year securities/assets Solid deposit base with high con
Slide 5: Agenda
Agenda Executive Summary Turkish Economy and Banking Sector Overview Business Highlights Financial Highlights Outlook Annex 5
Slide 6: Turkish Economy
Turkish Economy Young and dynamic with significant growth potential Turkey EU Population (mln) 74 501 Avg. Age of Population 29 43 8th1 largest in Europe, 17th1 largest in the World Favourable demographics (43% under 25 years vs Population Growth 14% 5% 28% in EU) with a rapidly growing populati
Slide 7: Macroeconomic Environment
Macroeconomic Environment Solid fundamentals maintained throughout 2011 with start of soft-landing as of 4Q 2008 2009 2010 2011 4Q11 / Recent Trend 9.0% 7.9% Strong growth environment in 2011 with GDP 0.7% start of soft-landing from 4Q11 onwards. Soft landing Growth confirmed 2011 GDP growth expec
Slide 8: Banking Sector: Underpenetrated
Banking Sector Underpenetrated with stability, profitability and high growth potential Penetration data Significant long-term growth potential on the back of positive Loans / GDP Deposits and AUM / GDP demographics and underpenetrated market Corporate Loans / GDP Highly resilient thanks to solid
Slide 9: Banking Sector: Growth and profitability in 2011
Banking Sector Positive growth and healthy profitability maintained in 2011 with varying trends between 1H and 2H Nominal (bln TL) Growth Rates Loans +30% with slowdown from 4Q onwards (currency Currency 2011 2009 2010 2011 Adjusted1 adjusted +22%) Total Assets 1,161 13% 20% 20% Deposits +13% wi
Slide 10: Agenda
Agenda Executive Summary Turkish Economy and Banking Sector Overview Business Highlights Financial Highlights Outlook Annex 10
Slide 11: Yapı Kredi
Yapı Kredi Fourth largest private bank in Turkey with a large network, leading brand and leadership in key segments / products Financial Highlights Market Positioning (BRSA in TL, 31 Dec 2011) (31 Dec 2011) Rank 4th largest among Assets 9.3% 5 private banks Total Assets (bln) 117.5 Branches 9.2% 5 T
Slide 12: Organisational Structure
Organisational Structure Customer focused, divisionalised service model supported by product factories 50% 50% Revenues and Volumes Turkey’s largest conglomerate in Geographically well diversified and by Business Unit4 Turkey in terms of turnover, systematically important major Italy exports, di
Slide 13: Strategy
Strategy Clear strategic guidelines aimed at profitable growth and customer satisfaction Yapı Kredi’s medium-term objective is to achieve above sector profitability performance on the back of improvement in commercial effectiveness and continuation of investments for growth Yapı Kredi’s strategy is
Slide 14: Major Shareholders
Major Shareholders Strong and mutually beneficial relationship between Yapı Kredi and its major shareholders, Koç Holding and UniCredit Support of strong and dedicated core shareholders providing stability and maximising Yapı Kredi’s growth potential Solid image as one of the Know-how / expertis
Slide 15: Recent History
Recent History Successful execution of strategy aligned with the changing environment... 2006 2007 2008 2009 2010 2011 Merger and Restructuring Relaunch of Growth Global Crisis Back to Growth Flexible Approach Integration Legal merger of Launch of branch Acceleration of Temporary Re-launch
Slide 16: Key Performance Indicators
Key Performance Indicators ...resulting in continuation of solid financial performance Net Income (mln TL) Return on Average Equity1 Tangible 2,291 ROAE: 24% 2,255 25.7% 26.7% 1,553 25.5% 22.5% 21.7% 1,265 1,019 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Revenues +14% CAGR Between 2007 and
Slide 17: Agenda
Agenda Executive Summary Turkish Economy and Banking Sector Overview Business Highlights Financial Highlights Outlook Annex 17
Slide 18: 2011 Results Summary
2011 Results Summary Healthy growth and sustained profitability thanks to proactive approach Strong customer business focus with loan growth of 28% driven by selective high margin TL consumer, SME and project finance lending Customer Significantly above sector deposit growth of 20% with improvin
Slide 19: Balance Sheet
Balance Sheet Customer oriented balance sheet with solid liquidity, capital and funding position December 2010 Summary Balance Sheet, 2010 2011 Growth Key Ratios December 2011 bln TL Total Assets 92.8 117.5 27% 58% Loans / Assets 59% Loans 54.2 69.3 28% 21% TL 34.6 44.6 29% Securities / Assets 18% F
Slide 20: Asset Composition
Asset Composition High share of lending in balance sheet reflecting customer business focus Total Assets Loans By Product By Currency 2011 Housing General 9.5% Purpose FC 69.3 8.1% Companies 28% TL 117 bln 35.5% Auto 54.2 24.7 mln TL 1.8% 3% 36% 19.6 mln TL (in US$) FC 36% Comm. 1 Peer Avg Installme
Slide 21: Liability Composition / Deposits
Liability Composition / Deposits Healthy deposit base with increasing share of retail, high weight of demand deposits and lengthening maturity Total Liabilities and Shareholders’ Equity Deposit Composition TL 117 bln By Currency Demand Deposit Volume Demand / Total Deposits (bln TL) Borrowings1 17%
Slide 22: Liability Composition / Wholesale Borrowings
Liability Composition / Wholesale Borrowings Continuous diversification of the funding base with increasing access to international markets Total Liabilities and Shareholders’ Equity Composition of Wholesale Borrowings ~ US$ 1,275 mln outstanding TL 117 bln Securitisations 10% Dec 06 and Mar 07: ~
Slide 23: Liability Composition / Capital
Liability Composition / Capital Capital base supporting business growth Total Liabilities Capital Evolution (bln TL) Capital Adequacy Ratio and Tier 1 Ratio TL 117 bln 2007-2011 CAGR 23% Share of FC: Tier 2 63% Tier 1 Ratio CAR Borrowings1 17% 4.0 (sector:39%) Tier 1 15% 3.0 3 14.9% Repo 3.0 5% 2.8
Slide 24: Asset Quality
Asset Quality Capability to effectively manage asset quality in changing market conditions NPL Ratio Cost of Risk1 (net of collections) NPL Ratio YKB 6.5% 5.3% 3.4% 3.72% excl. sales: Sector 5.3% 4.1% 3.3% 3.14% 6.3% Sector2: 4.3% 2.6% 3.4% 3.0% 1.39% 1.09% 0.81% 0.58% 2008 2009 2010 2011 0.68% 0.23
Slide 25: Income Statement
Income Statement Sound core revenue performance, controlled costs and asset quality improvement TL mln 2010 2011 y/y 1 Total Revenues 6,649 6,648 0% Net Interest Income 3,582 3,745 5% Revenues stable y/y driven by disciplined NIM management and Non-Interest Income 3,067 2,903 -5% sound fee growth
Slide 26: Revenues
Revenues Sustained performance with increasing contribution of core revenues Revenue Composition (TL mln) Composition of Bank Fees / Operating Costs Y/Y Fees & Commissions Received1 Sector: 51% 6,649 0% 6,648 Other² 68% 65% 16% Insurance Credit Cards Other 14% 20% -30% 2% 41% (Dividend, Trading & Ot
Slide 27: Costs
Costs Below inflation confirming unique track record in cost discipline and proven capability of profitable growth Cost Growth Cost Composition y/y y/y Sector Non-HR HR Other Total 19% Successful execution of 15% 6% 8% growth strategy driven by 5% 13% -20% 1% branch expansion 9% 11% accompanied by
Slide 28: Risk Management
Risk Management Prudent risk management policies allowing for sustainable and profitable growth Market Risk Effective hedging of interest rate risk between medium and long term fixed rate TL loans (e.g. mortgages) and TL deposits (structurally short term) via Income statement and capital volatil
Slide 29: Commercial Effectiveness
Commercial Effectiveness Ongoing initiatives leading to improvement via productivity gains Productivity Loans/Employee Deposits/Employee Core Revenues/Employee Retail Cross Sell Ratio (ths TL) +25% (ths TL) (ths TL) in 2011 +17% 4.00 4,512 in 2011 +6% in 2011 4,275 3.69 YKB 352 3,551 336 3,617 298 Y
Slide 30: Agenda
Agenda Executive Summary Turkish Economy and Banking Sector Overview Business Highlights Financial Highlights Outlook Annex 30
Slide 31: 2012 Outlook
2012 Outlook YKB macro / sector scenario based on soft-landing and positive volume evolution Macro Banking Sector GDP Positive / moderated growth driven by 15% Loans 3.6% Growth domestic demand Positive volume evolution 12% Deposits End of Year 6.2% inflation Controlled inflation with decline from N
Slide 32: Areas of Focus
Areas of Focus Continued emphasis on key long-term strategic pillars Tactical above sector growth in Optimisation of deposit pricing / mix value generating segments Accelerated focus on funding Increased commercial effectiveness diversification (customer penetration, activation, Effective
Slide 33: Yapı Kredi: A strong franchise with unique competitive advantages
Yapı Kredi A strong franchise with unique competitive advantages Healthy, Robust and Customer Business Focused Balance Sheet Strong Liquidity and Funding Position Proven Capability of Cost Control and Efficiency Improvements Solid Risk Profile Focus on Value Generating Segments with Leadership in Ke
Slide 34: Agenda
Agenda Executive Summary Turkish Economy and Banking Sector Overview Business Highlights Financial Highlights Outlook Annex 34
Slide 35: Business Units
Business Units Solid performance overall but Private and Card Payment Systems impacted by regulatory and competitive pressure Weight in Bank Customer Revenues Y/Y Revenues1 Business2 (mln TL) (2010-2011) Drivers of revenue growth 45% 35% Revenues driven by high margin loan growth, upward 3 loan re
Slide 36: Subsidiaries
Subsidiaries Strong profitability performance at core product factories. YK Portföy impacted by decrease in mutual fund cap rates. Robust performance at insurance subsidiaries Sector Key Highlights Positioning Strong revenue performance driven by increased YK Leasing #1 in total transaction volume
Slide 37: Asset Quality
Asset Quality NPL Ratio by Segment Asset Quality Flows (mln TL) 2,731 Consumer Loans¹ NPL Inf lows 12.6% Credit Cards 2,048 Collections 1,823 SME² 1,708 10.0% 1,594 1,511 1,346 Corporate & Comm.² 6.8% 7.7% 842 6.3% 5.3% 5.1% 5.2% 4.3% 3.9% 3.9% 4.4% 3.5% 3.4% 2008 2009 2010 2011 2.5% 3.0% 2.6% 1.9%
Slide 38: Total Cost of Funding
Total Cost of Funding Cost of wholesale borrowings Cost of deposits Total cost of funding (quarterly) (quarterly) (quarterly) Repo Sub-debt Funds Borrowed YKB Sector YKB Sector 4.8% 6.1% 5.2% 5.2% 4.6% 4.6% 5.1% 4.3% 4.6% 6.0% 4.3% 5.6% 4.0% 4.7% 4.7% 4.7% 4.2% 5.6% 5.5% 4.5% 3.3% 3.6% 3.6% 4.2% 5.2