Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — H1 2021 Earnings Presentation

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

  1. Slide 1: H1 2021 Earnings Presentation

    H1 2021 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: Asset Growth

    H1 2021 Earnings Presentation Strong FX liquid assets backed by FX swaps > FX LCR is at 294%, well above the regulatory limit of 80%. Asset Mix (%) Asset Growth Loans Securities Bank Placements CBRT Receivables Cash YoY 20.3% QoQ 3.4% Liq. Assets Other Assets Total Asset Growth (TRY billion) 63.1% 8

  4. Slide 4: Notable gains on CPI-linkers and their share within the securities portfolio continues to increase

    H1 2021 Earnings Presentation Notable gains on CPI-linkers and their share within the securities portfolio continues to increase Total Securities Portfolio (TRY billion) Securities Classification (TRY billion)(*) Total Securities / Total Assets (%) Other Floating Rate CPI Linkers Fixed Rate (FX) Fix

  5. Slide 5: Prudent TRY loan growth with ongoing contraction on FX loan book

    H1 2021 Earnings Presentation Prudent TRY loan growth with ongoing contraction on FX loan book CGF Utilization (TRY bn) Mar-21 Jun-21 Current loan amount 55.9 50.5 (TRY billion)(a) 10.1% Total Loans 2.5% HALKBANK B. Sector(b) YoY YoY 440.9 10.1% 20.2% 429.3 430.2 QoQ QoQ 425.8 2.5% 3.7% 400.4 169.8

  6. Slide 6: Well collateralised loan book through secured packages and products

    H1 2021 Earnings Presentation Well collateralised loan book through secured packages and products Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 4% FX SME 7% Commercial 3% 22.5% SME 44% Corporate 89% Corporate 34% CGF 18% TRY 77.5% Cooperative 38%(b) Retail 18% Sectoral Br

  7. Slide 7: NPL ratio preserved given current regulatory measures

    H1 2021 Earnings Presentation NPL ratio preserved given current regulatory measures NPL Portfolio (TRY million)(a) NPL Coverage (%)(a) 16,918 65.3 64.0 16,537 16,189 15,822 15,849 64.1 62.2 59.1 Jun-20 Sep-20 2020 Mar-21 Jun-21 Jun-20 Sep-20 2020 Mar-21 Jun-21 Loans under Close Watch (TRY million) N

  8. Slide 8: NPL ratio by segments

    H1 2021 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (*) Corporate - Commercial (%) Consumer Loans (%) 3.9 3.7 3.9 3.5 3.2 3.3 3.0 2.9 3.7 2.7 2.6 3.5 3.1 2.9 2.7 1.8 1.7 2.5 1.6 1.8 Jun-20 Sep-20 2020 Mar-21 Jun-21 Jun-20 Sep-20 2020 Mar-21 Jun-21 SME Loans (%) Credit Cards (

  9. Slide 9: Asset quality dynamics on a quarterly basis

    H1 2021 Earnings Presentation Asset quality dynamics on a quarterly basis Provisions and Reversals (TRY million) • Includes roughly a TRY 1 bn. performing loan Provision Reversals S1 Provisions S2 Provisions S3 Provisions reversal by releasing excess provisions which had been set aside in the previo

  10. Slide 10: Improving LDR with a growing share of deposits

    H1 2021 Earnings Presentation Improving LDR with a growing share of deposits Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D 86.8% 88.1% 88.3% 89.0% 89.1% Deposits Marketable Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity FX 35

  11. Slide 11: A steady increase in the share of savings deposits within TRY deposit base

    8 -6.36 3 H1 2021 Earnings Presentation A steady increase in the share of savings deposits within TRY deposit base HALKBANK B. Sector(b) YoY 58.0% 40.1% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 19.3% 6.3% YoY 26.5% 26.7% YoY 6.2% 13.1% in USD YoY 24.4% 10.3% QoQ 7.4% 5.6% QoQ -2.0% 4.7% terms

  12. Slide 12: Expansionary momentum on cost of TRY deposits started to decelerate

    H1 2021 Earnings Presentation Expansionary momentum on cost of TRY deposits started to decelerate Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%)(b) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 21.0% 19.8% 18.6% 18.6% 18.1% 79.0% 80.2%

  13. Slide 13: Cost – Yield – Spread

    H1 2021 Earnings Presentation Cost – Yield – Spread Blended Cost - Yield - Spread (%) Spreads (%) Yield on Loans(a) Cost of Deposits(b) Spread TRY Core FX Core Blended Core 6.2 5.2 5.6 4.8 3.7 4.4 4.2 9.4 9.3 9.2 10.5 11.1 2.6 2.2 4.4 4.2 1.9 1.7 2.1 2.2 1.7 2.1 (4.9) (5.1) (7.1) (8.7) (9.0) -1.0 -2

  14. Slide 14: Boosted F&C income, up 34% QoQ

    H1 2021 Earnings Presentation Boosted F&C income, up 34% QoQ Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly Swap adj. (YtD) Swap adj. (QoQ) 4.8 4.5 1,084 3.8 5,341 5,620 2,505 -99 4.5 4.0 1.7 0.7 4.5 4.3 -0.1 4.1 3.9 0.3 3.5 12,272 14,230 15,514 15,173 17,9

  15. Slide 15: Details of profitability metrics

    H1 2021 Earnings Presentation Details of profitability metrics Core Operating Revenues (TRY million)(a) Q2-21 Revenue Walk (TRY million) 65% 2,002 229% 5,884 6,315 970 1,084 (2,174) 3,160 260 10 64 2,053 (2,086) 625 NII Net F&C Income Net Trading Income Total Provisions Dividend Net Income (Q2-21) O

  16. Slide 16: Disciplined OPEX management, down 5.2% QoQ

    H1 2021 Earnings Presentation Disciplined OPEX management, down 5.2% QoQ Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 2.6% 5.2% 1.50 1.27 1.30 2,199 1.19 1.19 2,149 2,086 2,032 1,880 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Cost/Income (%) Breakdown of

  17. Slide 17: Solvency Ratios

    H1 2021 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Details on Capital Ratio Cons. Basel III Uncons. Basel III (TRY mn) Jun-21 Jun-21 15.7 15.4 15.2 14.6 13.7 Credit Risk Base Amount (CRBA) 415,925 402,198 13.0 Market Risk Base Amount (MRBA) 16,544 13,632 12.8 1

  18. Slide 18: Branch Network – Human Resources

    H1 2021 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branch Deposits/Branch Internet Automatic Banking 7% Payment 5% 502.7 ATM 21% 454.1 468.3 438.4 408.1 448.0 435.9 435.7 Call Center 6% 430.1 Mobile B

  19. Slide 19: Annex

    H1 2021 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) H1-20 H1-21 Total Assets 716,515 10.6 Loan Growth (YtD, %) 22.7 9.5 Loans (a) 440,894 11.3 Deposit Growth (YtD, %)(c) 18.6 11.2 TRY Loans 341,667 13.8 LDR (%) 107.3 101.1 FC Loans 99,227 6.9 NPL (%) 4

  20. Slide 20: Balance Sheet

    H1 2021 Earnings Presentation Balance Sheet In TRY million H1-20 2020 Mar-21 H1-21 QoQ (%) YtD (%) YoY (%) Cash and Balances Held with the Central Bank(a) 27,153 63,476 62,042 71,107 14.6 12.0 161.9 Banks & Money Market(b) 2,219 2,146 3,507 3,063 (12.6) 42.8 38.0 Securities(b) 136,944 159,200 165,48

  21. Slide 21: Income Statement

    H1 2021 Earnings Presentation Income Statement In TRY million H1-20 H1-21 YoY% Q2-20 Q1-21 Q2-21 QoQ (%) YoY (%) Interest Income 23,995 33,171 38.2 12,272 15,173 17,999 18.6 46.7 On Loans 17,750 23,763 33.9 8,962 11,285 12,478 10.6 39.2 On Securities 6,140 8,809 43.5 3,273 3,656 5,153 40.9 57.4 Inte

  22. Slide 22: Notes

    H1 2021 Earnings Presentation Notes Investor Relations 20 www.halkbank.com.tr

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  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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