Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — Q1 2015 Earnings Presentation

28 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2015

  1. Slide 1: Q1 2015 Earnings Presentation

    Q1 2015 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: Macro Outlook

    Q1 2015 Earnings Presentation Macro Outlook > US data flow does not seem to have a major impact on rate lift-off > Turkish benchmark bond yield touched 6.5% level and ended at 8.5% in expectations by FED. Door still open for rate hikes to commence during Q115, increased to 10.0% in Apr-15. mid-year

  4. Slide 4: Banking Sector Overview

    Q1 2015 Earnings Presentation Banking Sector Overview > Total loan book grew 6.5% QoQ and reached TRY 1,337 > NIM felt significant pressure from increasing deposit cost bn. TRY loan book showed 4.4% growth whereas FX and declining securities yield, contracted to 3.9% as of loan book rose by 11.5% in

  5. Slide 5: Q1 2015 Highlights

    Q1 2015 Earnings Presentation Q1 2015 Highlights > Q115 net income at TRY 584 mn. increasing 32.1% QoQ > 6-year USD 500 mn eurobond issuance was completed and 10.0% YoY. at a very favourable 4.75% coupon rate. > Strong bottom line translates into above sector RoE and > CBRT repo continued to be acti

  6. Slide 6: Recovering net income, 10% YoY, 32.1% QoQ growth

    Q1 2015 Earnings Presentation Recovering net income, 10% YoY, 32.1% QoQ growth Net Income (TRY million) 10.0% 32.1% 632 601 584 530 442 YoY Change (%) > 10.4% Net Interest Income > 45.7% Net Fees & Commissions > 26.4% Total Operating Income > 10.0% Net Income Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 RoE (%) Ro

  7. Slide 7: Securities portion declined to 16.5%

    Q1 2015 Earnings Presentation Securities portion declined to 16.5% Asset Growth IEA Securities YoY 10.8% QoQ 3.8% 83.5% Portion 16.5% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 10.8% Loans Cash & CBRT Securities Other Assets 3.8% 82.2% 82.5% 83.5% 161.3 155.4 FX 25.5% 25.7

  8. Slide 8: Majority of the securities booked under held to maturity

    Q1 2015 Earnings Presentation Majority of the securities booked under held to maturity Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 20.6 17.3 16.5 CPI-Linked (TRY 7.7 bn) 29.9 28.8% 26.8 26.6 FX 3.6 12% 4.2 16% 4.6 17% Fixed Rate 52.8% TRY 26.3

  9. Slide 9: TRY heavy loan growth, 20.8% YoY, 5.2% QoQ

    Q1 2015 Earnings Presentation TRY heavy loan growth, 20.8% YoY, 5.2% QoQ (TRY billion)(a) 21.2% 6.6% Total Loans 105.7 HALKBANK B. Sector(b) 99.2 1.1 YoY YoY 93.4 1.2 6.2 Commercial Loans 21.2% 21.5% 90.4 6.7 YoY 1.3% QoQ QoQ 87.2 1.1 6.6% 6.5% 1.1 5.9 QoQ -7.7% 1.1 5.0 28.8 6.1 Corporate Loans TRY

  10. Slide 10: No material risk concentration

    Q1 2015 Earnings Presentation No material risk concentration Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 6.3% Commercial 2.4% Other 1% Commercial 6% Corporate 19.6% SME 41% FX Corporate 27% TRY 28.3% 71.7% Cooperative 13%(b) Retail 25% Sectoral Breakdown of Loans (%)(a) Retail

  11. Slide 11: Gaining market share in retail loans

    Q1 2015 Earnings Presentation Gaining market share in retail loans (TRY billion)(a) 14.1% 4.4% Credit Cards (Thousand) 26.8 # of Credit Cards 3,509 HALKBANK 25.7 # of POS 263 YoY 24.5 # of Merchants 224 14.1% 23.5 23.9 Issuer m/s 3.4% QoQ Acquirer m/s 4.6% 13.0 4.4% 12.4 11.3 11.7 Consumer Loans 11.

  12. Slide 12: Improving asset quality and NPL ratio

    Q1 2015 Earnings Presentation Improving asset quality and NPL ratio NPL Portfolio (TRY million) NPL Coverage (%) 3,667 3,700 3,747 77.4 78.4 1,076 One off 65.2 65.7 2,493 59.3 2,425 Mar-14 Jun-14 Sep-14 2014 Mar-15 Mar-14 Jun-14 Sep-14 2014 Mar-15 Loans under Close Watch (TRY million) NPL/Total Loan

  13. Slide 13: NPL ratio by segments

    Q1 2015 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) (a) Consumer Loans (%) (a) 4.3 5.2 5.1 3.9 4.0 4.9 3.6 3.6 2.4 2.4 2.2 2.2 2.2 2.0 2.1 2.1 2.1 2.0 2.0 2.1 2.1 2.0 1.9(b) Mar-14 Jun-14 Sep-14 2014 Mar-15 Mar-14 Jun-14 Sep-14 2014 Mar-15 SME L

  14. Slide 14: CoR at 52 bps

    Q1 2015 Earnings Presentation CoR at 52 bps Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 123 99 110 94 84 50 52 70 70 44 52 27 70 70 52 Mar-14 Jun-14 Sep-14 2014 Mar-15 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (bps) (Specific Provisions-Provi

  15. Slide 15: Loan/deposit ratio at comfortable levels

    Q1 2015 Earnings Presentation Loan/deposit ratio at comfortable levels IBL 84.9%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 85.0% 84.4% 84.9% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity 117.9 117.

  16. Slide 16: Solid saving deposit base unchanged

    Q1 2015 Earnings Presentation Solid saving deposit base unchanged HALKBANK B. Sector(b) FX Dep. YoY 3.2% 14.9% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 10.5% 14.7% in USD YoY -14.0% -3.5% Total Dep. YoY 6.7% 16.3% TRY Dep. YoY 8.7% 17.3% terms QoQ -1.1% 2.0% QoQ 3.0% 5.8% QoQ -0.6% 0.2% Total

  17. Slide 17: Details on deposit base

    Q1 2015 Earnings Presentation Details on deposit base Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 18.9% 18.3% 83.9% 81.7% 16.1% 81.1% FX 35% 19.1% 2.0% 3.7% 7.4% TRY 16.3 16.9 65% 75.2 73.

  18. Slide 18: Cost – Yield – Spread

    Q1 2015 Earnings Presentation Cost – Yield – Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 5.7 5.3 5.3 4.8 5.0 5.0 4.7 4.9 4.7 4.6 4.3 4.1 4.0 3.3 2.0 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Yield on Loans (%)(b) Yield on Securities (%) 10.0 10.0 10.4 9.6 9.9

  19. Slide 19: Net interest income up 10.4% YoY

    Q1 2015 Earnings Presentation Net interest income up 10.4% YoY Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses 10.4% 1,227 1,309 1,414 1,283 16% 1,162 on Securities 2,734 2,920 2,814 2,984 3,001 (1,572) (1,693) (1,505) (1,570) 84% (1,718) on Loans

  20. Slide 20: Stellar growth in net fees and commissions, 45.7% YoY growth

    Q1 2015 Earnings Presentation Stellar growth in net fees and commissions, 45.7% YoY growth Net Fees & Commissions Income (TRY million) Net Fees & Commissions / Operating Revenues (%) 45.7% 6.8% 17.9 15.5 15.1 15.2 323 14.7 303 247 251 222 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Mar-14 Jun-14 Sep-14 2014 Mar-1

  21. Slide 21: Excluding rebates, OpEx growth 9.9% YoY

    Q1 2015 Earnings Presentation Excluding rebates, OpEx growth 9.9% YoY Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 16.1% 9.9% 0.8% 677 744 800 2.0 2.0 2.0 748 757 793 689 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q1-14 (a) Q1-15 (a) Mar-14 2014 Mar-15 Adj. Adj. Cost/Income (%) Breakd

  22. Slide 22: Solvency Ratios

    Q1 2015 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-1 CAR Basel III (TRY mn) Mar-15 14.4 Credit Risk Base Amount (CRBA) 114,283 13.9 13.6 13.6 13.3 Market Risk Base Amount (MRBA) 3,551 13.4 12.9 12.7 12.9 Operational Risk Base Amount (ORBA) 10,978 13.0 Total Risk Weig

  23. Slide 23: Branch Network - Human Resources

    Q1 2015 Earnings Presentation Branch Network - Human Resources Utilization of Banking Distribution Channels (%) Automatic Payment 7% Internet Banking 22% > 3 new branches opened in Q1-15. > Total branch number reached 898. Mobile ATM 49% > 52 new ATM opened in Q1-15. Banking 2% Branch 13% Call Cente

  24. Slide 24: Balance Sheet

    Q1 2015 Earnings Presentation Balance Sheet QoQ YoY Change Change In TRY million Q1-14 2014 Q1-15 % % Cash and Balances Held with the Central Bank(a) 19,534 20,276 19,708 (2.8) 0.9 Banks & Money Market(b) 2,227 1,284 1,309 1.9 (41.2) Securities(b) 29,928 26,844 26,619 (0.8) (11.1) Net Loans(b) 88,92

  25. Slide 25: Income Statement

    Q1 2015 Earnings Presentation Income Statement QoQ YoY Change Change In TRY million Q1-14 Q4-14 Q1-15 % % Interest Income 2,734 2,984 3,001 0.6 9.8 On Loans 2,017 2,363 2,510 6.2 24.4 On Securities 712 615 482 (21.7) (32.3) Interest Expense 1,572 1,570 1,718 9.4 9.3 On Deposits 1,315 1,280 1,394 8.9

  26. Slide 26: Notes

    Q1 2015 Earnings Presentation Notes Financial Institutions and Investor Relations 24 www.halkbank.com.tr

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  28. Slide 28: 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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