Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — FY2020 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2021

  1. Slide 1: 2020 Earnings Presentation

    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

  2. Slide 2: Slide 2

  3. Slide 3: Asset Growth

    2020 Earnings Presentation Strong FX liquid assets, five times higher than the total FX > FX LCR is at 136%, well above wholesale funding due within 12 months the regulatory limit of 80%. Asset Mix (%) Asset Growth Loans Securities Bank Placements CBRT Receivables Cash YoY 48.8% QoQ 2.5% Liq. Assets

  4. Slide 4: Opportunistic allocation of securities

    2020 Earnings Presentation Opportunistic allocation of securities Total Securities Portfolio (TRY billion) Securities Classification (TRY billion)(*) Total Securities / Total Assets (%) Other Floating Rate CPI Linkers 23.8 23.4 143.7 22.5 22.3 23.0 Fixed Rate (FX) Fixed Rate (TRY) 141.8 157.9 159.2

  5. Slide 5: More than 1pp increase in market share during 2020

    2020 Earnings Presentation More than 1pp increase in market share during 2020 CGF Utilization (TRY bn) Current loan amount Sep-20 64.9 2020 61.8 (TRY billion)(a) 48.0% Total Loans -0.8% HALKBANK B. Sector(b) YoY YoY 48.0% 34.7% 429.3 QoQ QoQ 425.8 -0.8% 0.6% 400.4 Business Loans TRY Loans 324.8 163.

  6. Slide 6: Well-diversified and low-risk segments gave resistance to the loan portfolio

    2020 Earnings Presentation Well-diversified and low-risk segments gave resistance to the loan portfolio Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 5% FX SME 8% Commercial 4% 21.5% SME 43% Corporate 88% Corporate 33% CGF 23% TRY 78.5% Cooperative 37%(b) Retail 19% Secto

  7. Slide 7: Below sector NPL ratio maintained

    2020 Earnings Presentation Below sector NPL ratio maintained NPL Portfolio (TRY million)(a) NPL Coverage (%)(a) 16,918 65.3 16,540 16,537 16,189 64.1 15,920 62.2 59.1 55.8 2019 Mar-20 Jun-20 Sep-20 2020 2019 Mar-20 Jun-20 Sep-20 2020 Loans under Close Watch (TRY million) NPL/Total Loans (%)(a) Loans

  8. Slide 8: NPL ratio by segments

    2020 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) Consumer Loans (%) 4.5 4.4 4.1 3.9 3.9 3.9 3.7 3.2 4.5 3.0 2.8 3.6 3.7 2.7 3.5 2.5 3.1 1.8 1.7 1.6 2019 Mar-20 Jun-20 Sep-20 2020 2019 Mar-20 Jun-20 Sep-20 2020 SME Loans (%) Credit Cards (%) 9.2

  9. Slide 9: Prudent provisioning resulted in higher CoR

    2020 Earnings Presentation Prudent provisioning resulted in higher CoR Provisions and Reversals (TRY million) Net Total Cost of Risk (bps)(a) Provision Reversals S1 Provisions S2 Provisions S3 Provisions YtD Quarterly 241 182 209 913 594 241 181 66 725 158 730 350 143 191 1,301 1,231 591 891 867 (77

  10. Slide 10: Improving TRY LDR with an increasing share of deposits

    2020 Earnings Presentation Improving TRY LDR with an increasing share of deposits Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D 88.1% 88.3% Deposits Marketable 85.8% 86.7% 86.8% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity

  11. Slide 11: Increased market share in deposits

    8 -6.36 3 2020 Earnings Presentation Increased market share in deposits HALKBANK B. Sector(b) YoY 48.7% 45.1% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 6.2% 2.9% YoY 53.9% 35.0% YoY 58.0% 24.5% in USD YoY 18.6% 15.7% QoQ 3.7% 0.9% QoQ 2.0% -1.5% terms QoQ 10.8% 7.3% Total Deposits TRY Deposits

  12. Slide 12: TRY dominated deposit book maintained

    2020 Earnings Presentation TRY dominated deposit book maintained 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% 18.6% 82.7% 80.8% 79.0% 80.2% 81.4% FX 43% 68.6% 54

  13. Slide 13: Spread dynamics driven by tight monetary policy

    2020 Earnings Presentation Spread dynamics driven by tight monetary policy Blended 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 12.9 11.2 5.7 5.8 9.4 3.7 9.3 9.2 4.4 4.2 6.2 5.8 3.8 3.7 4.4 4.2 2.2 2.6 2.2 (6.7) (5.4

  14. Slide 14: NIM improved by 80 bp YoY

    2020 Earnings Presentation NIM improved by 80 bp YoY Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly Swap adj. (YtD) Swap adj. (QoQ) 5.2 4.8 4.0 4.5 5,341 5,620 2,505 5.2 3.8 3,797 5,288 4.5 4.0 3.0 4.9 4.9 1.7 11,327 11,723 12,272 14,230 15,514 4.5 4.3 4.1

  15. Slide 15: Net Income and NII increased by 51% and 159% YoY respectively

    2020 Earnings Presentation Net Income and NII increased by 51% and 159% YoY respectively 2019 / 2020 Revenue Walk (TRY million) 2,615 17,635 3,118 (2,841) 2,778 6,809 (7,961) (6,286) 1,720 2,600 (4,698) (6,848) NII (inc. swaps) Net F&C Income Total Provisions Net Income (2019) NII (inc. swaps) Net F

  16. Slide 16: Covid-related expenditures weighed on OPEX

    2020 Earnings Presentation Covid-related expenditures weighed on OPEX Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 2,149 1.50 1.61 1.50 1,900 2,032 1,880 1,705 1.27 1.19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Cost/Income (%) Breakdown of Operating Exp

  17. Slide 17: Solvency Ratios

    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 15.2 (TRY mn) Dec-20 Dec-20 14.3 13.9 Credit Risk Base Amount (CRBA) 377,834 366,341 13.0 12.8 12.6 Market Risk Base Amount (MRBA) 16,668 14,804

  18. Slide 18: Branch Network – Human Resources

    2020 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branch Deposits/Branch Internet Automatic Banking 8% Payment 5% 438.4 454.1 ATM 21% 408.1 435.9 430.1 334.6 398.7 297.8 Mobile Banking 52% Call Center 9

  19. Slide 19: Annex

    2020 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) 2019 2020 Total Assets 680,026 11.1 Loan Growth (YoY, %) 10.9 34.7 Loans (a) 425,818 11.9 Deposit Growth (YoY, %)(c) 24.7 35.0 TRY Loans 334,244 14.2 LDR (%) 104.8 103.1 FC Loans 91,574 7.5 NPL (%) 5.4 4

  20. Slide 20: Balance Sheet

    2020 Earnings Presentation Balance Sheet QoQ YoY In TRY million 2019 Sep-20 2020 Change% Change% Cash and Balances Held with the Central Bank(a) 34,489 41,374 63,476 53.4 84.0 Banks & Money Market(b) 3,750 3,567 2,146 (39.8) (42.8) Securities(b) 102,734 157,898 159,200 0.8 55.0 Net Loans(b) 297,806

  21. Slide 21: Income Statement

    2020 Earnings Presentation Income Statement YoY QoQ YoY Change Change Change In TRY million 2019 2020 % Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 % % Interest Income 46,730 53,738 15.0 11,327 11,723 12,272 14.230 15,514 9.0 37.0 On Loans 37,070 38,123 2.8 9,632 8,788 8,962 10.076 10,297 2.2 6.9 On Securities 9,

  22. Slide 22: Notes

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

  23. Slide 23: Slide 23

  24. Slide 24: 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 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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