Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — 9M 2020 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2020

  1. Slide 1: 9M 2020 Earnings Presentation

    9M 2020 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

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  3. Slide 3: Strong asset growth backed by securities and liquid assets

    9M 2020 Earnings Presentation Strong asset growth backed by securities and liquid assets Asset Mix (%) Asset Growth Loans Securities Bank Placements CBRT Receivables Cash YoY 49.6% QoQ 11.4% Liq. Assets Other Assets Total Asset Growth (TRY billion) 49.6% 66.0% 81.2% 10.3% 11.4% 8.5% 663.7 595.7 23.8

  4. Slide 4: Efficient increase in the share of securities portfolio

    9M 2020 Earnings Presentation Efficient increase in the share of securities portfolio Total Securities Portfolio (TRY billion) Securities Classification (TRY billion)(*) Total Securities / Total Assets (%) Other Floating Rate CPI Linkers 23.8 141.8 21.7 22.5 22.3 23.0 Fixed Rate (FX) Fixed Rate (TRY

  5. Slide 5: Moderate loan growth along with normalisation period

    9M 2020 Earnings Presentation Moderate loan growth along with normalisation period CGF Utilization (TRY bn) Current loan amount Jun-20 64.9 Sep-20 64.9 (TRY billion)(a) 50.4% Total Loans 7.2% HALKBANK B. Sector(b) YoY YoY 50.4% 40.4% 429.3 QoQ QoQ 7.2% 9.1% 400.4 Business Loans TRY Loans 324.8 163.0

  6. Slide 6: Well diversified loan book with strong and secured products

    9M 2020 Earnings Presentation Well diversified loan book with strong and secured products Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 5% FX SME 9% Commercial 4% 22.7% SME 43% Corporate 87% Corporate 33% CGF 24% TRY 77.3% Cooperative 36%(b) Retail 19% Sectoral Breakdown

  7. Slide 7: NPL coverage continues to increase

    9M 2020 Earnings Presentation NPL coverage continues to increase NPL Portfolio (TRY million)(a) NPL Coverage (%)(a) 16,540 16,537 16,189 15,920 13,910 64.1 62.2 56.5 59.1 55.8 Sep-19 2019 Mar-20 Jun-20 Sep-20 Sep-19 2019 Mar-20 Jun-20 Sep-20 Loans under Close Watch (TRY million) NPL/Total Loans (%)(

  8. Slide 8: NPL ratio by segments

    9M 2020 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) Consumer Loans (%) 4.5 5.0 4.4 4.0 4.1 3.9 3.9 3.7 3.2 4.5 3.0 3.9 2.8 2.8 3.6 3.5 2.5 3.1 1.8 1.6 Sep-19 2019 Mar-20 Jun-20 Sep-20 Sep-19 2019 Mar-20 Jun-20 Sep-20 SME Loans (%) Credit Cards (

  9. Slide 9: Prudent approach on provisioning maintained

    9M 2020 Earnings Presentation Prudent approach on provisioning maintained Provisions and Reversals (TRY million) Net Total Cost of Risk (bps)(a) Provision Reversals S1 Provisions S2 Provisions S3 Provisions YtD Quarterly 241 209 182 241 913 594 143 181 66 191 725 54 730 1,301 1,231 123 702 591 891 8

  10. Slide 10: LDR continues to improve with flat TRY LDR

    9M 2020 Earnings Presentation LDR continues to improve with flat TRY LDR Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D 88.1% Deposits Marketable 86.3% 85.8% 86.7% 86.8% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity 35.3% 36.

  11. Slide 11: Steady increase in TRY deposits with rise in public sector deposits

    8 -6.36 3 9M 2020 Earnings Presentation Steady increase in TRY deposits is accompanied by remarkable rise in HALKBANK B. Sector(b) public sector deposits YoY 33.4% 49.4% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 17.4% 21.4% YoY 55.8% 45.1% YoY 77.2% 40.2% in USD YoY -2.5% 9.3% QoQ 10.2% 12.9%

  12. Slide 12: Modest cost of TRY deposits despite incremental interest rates

    9M 2020 Earnings Presentation Modest cost of TRY deposits despite incremental interest rates Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%)(b) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 19.2% 21.0% 19.8% 17.3% 17.3% 82.7% 82.7% 80.8%

  13. Slide 13: FX core spread offsetting the pressure on TRY yields

    9M 2020 Earnings Presentation FX core spread offsetting the pressure on TRY yields Cost - Yield - Spread (%) Spreads (%) Yield on Loans(a) Cost of Deposits(b) Spread TRY Core FX Core Blended Core 6.2 6.2 6.2 5.2 13.5 12.9 4.7 11.2 5.7 5.8 9.4 9.3 4.5 4.4 4.2 4.7 6.2 5.8 4.4 4.2 3.8 3.7 2.6 (6.7) (5.

  14. Slide 14: Increased NII, normalised NFC

    9M 2020 Earnings Presentation Increased NII, normalised NFC Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly Swap adj. (YtD) Swap adj. (QoQ) 99.4% 5.2 4.8 4.5 5.2% 4.0 5.2 4.5 5,620 3.0 4.0 2,819 3,797 5,288 5,341 3.0 4.9 4.9 2.6 4.5 4.3 4.1 3.9 3.1 12,512 11

  15. Slide 15: Improved NII compensating higher expenses

    9M 2020 Earnings Presentation Improved NII compensating higher expenses 9M – 19 / 9M – 20 Revenue Walk (TRY million) 1,960 15,365 2,821 (3,584) 2,050 3,839 (5,812) 924 2,090 (4,581) (3,204) (5,838) NII (inc. swaps) Net F&C Income Total Provisions Net Income (9M-19) NII (inc. swaps) Net F&C Income To

  16. Slide 16: OPEX drops in the absence of pandemic-related one-offs

    9M 2020 Earnings Presentation OPEX drops in the absence of pandemic-related one-offs Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 12.6% -7.5% 1.5 1.5 1.6 1.5 1,900 2,032 1.4 1,705 1,880 1,669 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Sep-19 2019 Mar-20 Jun-20 Sep-20 Cost/Income (%) B

  17. Slide 17: Solvency Ratios

    9M 2020 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Details on Capital Ratio Cons. Basel III Uncons. Basel III 15.7 15.4 (TRY mn) Sep-20 Sep-20 14.2 14.3 13.9 Credit Risk Base Amount (CRBA) 353,809 343,586 13.0 12.8 Market Risk Base Amount (MRBA) 24,002 22,164 1

  18. Slide 18: Branch Network – Human Resources

    9M 2020 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branch Deposits/Branch Internet Automatic 438.4 Banking 8% Payment 5% 408.1 435.9 ATM 24% 334.6 398.7 296.6 297.8 327.2 Mobile 297.7 Banking 51% Call

  19. Slide 19: Annex

    9M 2020 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) 9M-19 9M-20 Total Assets 663,675 11.1 Loan Growth (YtD, %) 5.7 33.9 Loans (a) 429,255 12.1 Deposit Growth (YtD, %)(c) 15.0 33.8 TRY Loans 331,727 14.5 LDR (%) 107.9 103.4 FC Loans 97,527 7.6 NPL (%) 5

  20. Slide 20: Balance Sheet

    9M 2020 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million Sep-19 2019 Jun-20 Sep-20 Change% Change% Change% Cash and Balances Held with the Central Bank(a) 32,642 34,489 27,153 41,374 52.4 20.0 26.7 Banks & Money Market(b) 3,646 3,750 2,219 3,567 60.8 (4.9) (2.2) Securities(b) 96,383 10

  21. Slide 21: Income Statement

    9M 2020 Earnings Presentation Income Statement YoY QoQ YoY In TRY million Sep-19 Sep-20 Change% Q3-19 Q2-20 Q3-20 Change% Change% Interest Income 35,403 38,225 8.0 12,512 12,272 14,230 16.0 13,7 On Loans 27,438 27,826 1.4 9,701 8,962 10,076 12.4 3,9 On Securities 7,505 10,206 36.0 2,697 3,273 4,066

  22. Slide 22: Notes

    9M 2020 Earnings Presentation Notes Investor Relations 20 www.halkbank.com.tr

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  24. Slide 24: 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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