Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR

Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — Q3 2012 Earnings Presentation

20 slides from Turkiye Is Bankasi Anonim Sirketi's earnings presentation, Sep 30, 2012

  1. Slide 1: Isbank Earnings Presentation 2012 Q3

    ISBANK EARNINGS PRESENTATION 2012 Q3

  2. Slide 2: Recent macro developments

    Recent macro developments Mild economic slowdown continues Rebalancing became more evident GDP growth (quarterly, % yoy ) $ billion Current account deficit and energy imports 16 90 CAD (12 months cumulative) 8 5,0 75 Energy Imports 3,2 64,7 60 CAD (MTP) 59,0 0 Energy Imports (MTP) (8) 45 GDP Growth

  3. Slide 3: Period's Highlights

    Period’s Highlights Loans & Asset Quality • A temporary slowdown in loan growth, a flat Q3, recovery is expected in Q4 • Growth in interest income on loans continued to support NII. • NPL coverage ratio is 83.6%, which is above the sector average (75.5%). • NPL additions have increased as expected,

  4. Slide 4: Market Shares

    Market Shares Largest Private Bank… Market Shares (%) (1) Rank (2) 2011 2012 Q3 2011 2012 Q3 Total Assets 13.9 13.4 1st 1st Total Loans 14.1 13.7 1st 1st TL Loans 13.0 12.6 1st 1st FX Loans 16.6 16.7 2nd 2nd Consumer Loans(3) 11.6 11.9 1st 1st Total Deposits 14.2 13.8 1st 1st TL Deposits 13.4 13.0 1

  5. Slide 5: Asset Structure

    Asset Structure Assets (TL mn.) 2011 2012 Q2 2012 Q3 ∆ QoQ ∆ YtD Cash & Banks 16,034 15,477 18,600 20.2% 16.0% Securities (Net) 42,778 40,389 37,829 -6.3% -11.6% Loans 91,621 98,222 98,185 0.0% 7.2% Participations (Net) 6,275 6,980 7,101 1.7% 13.2% Fixed Assets (Net) 1,983 1,927 1,937 0.5% -2.4% Oth

  6. Slide 6: Loan Portfolio

    Loan Portfolio Loans 14.9% 0.0% 19.1% 98.2 98.2 -1.6% 91.6 93.0 85.4 7.5% 66.3 65.2 11.2% 60.4 3.2% 54.7 58.8 3.6% 30.7 32.8 32.6 32.0 33.0 16.5 17.5 18.3 17.8 18.4 (1) TL Loans (TL bn.) FX Loans (TL bn.) FX Loans (USD bn.) Total Loans (TL bn.) 2011 Q3 2011 2012 Q1 2012 Q2 2012 Q3 Loans/Deposits • M

  7. Slide 7: Loan Portfolio

    Loan Portfolio Loans (TL mn.) 2011 2012 Q2 2012 Q3 ∆ QoQ ∆ YtD Total Loans 91,621 98,222 98,185 0.0% 7.2% TL Loans 58,804 66,253 65,203 -1.6% 10.9% Retail Loans 25,457 27,858 29,075 4.4% 14.2% Housing Loans 7,943 8,510 8,809 3.5% 10.9% Auto Loans 1,149 1,249 1,258 0.7% 9.5% GPLs 9,741 10,705 11,225

  8. Slide 8: Loan Composition

    Loan Composition Currency Mix Loan Composition - Total Loans 35.8% 32.5% 33.6% 20.6% 20.8% 21.7% 7.2% 7.5% 7.9% 21.6% 22.3% 22.9% 64.2% 67.5% 66.4% 50.6% 49.3% 47.5% 2011 2012 Q2 2012 Q3 2011 2012 Q2 2012 Q3 (1) (2) TL FX Corporate & Commercial SME Credit Cards Consumer Loan Composition - TL Loans L

  9. Slide 9: Asset Quality

    Asset Quality NPL Ratio -36 bps • Coverage ratio is 84%, TL 348 mn of positive impact 18 bps with the change in 100% provisioning policy. • 22% collection rate(1) in Q3 2012 2.5% 2.1% 2.1% 1.9% 2.1% 11 Q3 2011 12 Q1 12 Q2 12 Q3 NPL Trends(2) NPL Sales (TL thousand) Period Amount Revenue 11 Q3 - - 0.

  10. Slide 10: Securities Portfolio

    Securities Portfolio Securities (TL mn.) 2011 2012 Q2 2012 Q3 ∆ QoQ ∆YtD Total Securities 42,778 40,389 37,829 -6.3% -11.6% TL Securities 32,452 33,235 31,416 -5.5% -3.2% FX Securities 10,326 7,154 6,414 -10.3% -37.9% FX Securities (USD mn.) 5,492 3,974 3,577 -10.0% -34.9% Composition of Securities

  11. Slide 11: Liabilities Structure

    Liabilities Structure Liabilities (TL mn.) 2011 2012 Q2 2012 Q3 ∆ QoQ ∆ YtD Deposits 98,313 99,433 101,628 2.2% 3.4% REPOs & Money Market 19,461 18,230 14,997 -17.7% -22.9% Funds Borrowed 11,148 11,344 11,093 -2.2% -0.5% Securities Issued 3,781 5,168 5,538 7.2% 46.5% Other 11,043 11,673 12,665 8.5%

  12. Slide 12: Deposits

    Deposits Deposits (TL mn.) 2011 2012 Q2 2012 Q3 ∆ QoQ ∆ YtD Total Deposits 98,313 99,433 101,628 2.2% 3.4% TL Deposits 60,332 58,019 62,762 8.2% 4.0% TL Saving Deposits 40,664 39,136 41,635 6.4% 2.4% TL Commercial Deposits 11,678 11,424 11,879 4.0% 1.7% Other TL Deposits 7,991 7,459 9,249 24.0% 15.7

  13. Slide 13: Sufficient Capitalization

    Sufficient Capitalization Capital Adequacy Ratio Basel II • Capital adequacy ratio is well above the regulatory limit. 14.6% 14.2% 14.2% 14.1% 13.9% 13.1% 13.0% 12.6% 12.5% 12.4% 11 Q3 2011 12 Q1 12 Q2 12 Q3 CAR Tier I Ratio Free Equity vs. Total Shareholders’ Equity (TL mn.) 20,925 19,761 19,038 17

  14. Slide 14: Income Statement Highlights

    Income Statement Highlights (TL mn.) 2012 Q2 2012 Q3 ∆ QoQ 9M11 9M12 ∆ YoY Interest Income 3,378 3,404 0.8% 7,795 10,072 29.2% • Significant growth in NII and net fees & Interest Expense 1,949 1,888 -3.1% 4,548 5,817 27.9% commissions income Net Interest Income 1,429 1,515 6.0% 3,247 4,256 31.1% • T

  15. Slide 15: Commissions Income Performance

    Commissions Income Performance Fees and Commissions Received (Gross) (TL thousand) 9M11 9M12 ∆ YoY Non-Cash Loans 93,552 134,417 43.7% • Solid growth in all items except for mutual fund management fees Credit Appraisal 123,683 177,861 43.8% Mutual Fund Man. & Other Inv. Acc. 194,401 102,725 -47.2% •

  16. Slide 16: Margins

    Margins NIM (Cumulative) (1) • Further improvement in NIM in Q3 4.3% 4.4% 4.5% 3.9% 4.0% 4.1% • Higher NII as a result of lower funding 3.8% 3.9% 3.4% 3.5% costs 11 Q3 2011 12 Q1 12 Q2 12 Q3 NIM exc. reserves at Central Bank NIM Adjusted NIM (Cumulative)(1) (2) 5.3% 5.3% 4.8% 4.8% 4.8% 4.4% 3.8% 3.5

  17. Slide 17: Profitability and Efficiency Ratios

    Profitability and Efficiency Ratios(1) ROAE ROAA 23.9% 22.1% 20.4% 2.0% 1.8% 1.8% 1.8% 16.8% 1.6% 15.2% 15.4% 1.5% 2011 Q4 2012 Q2 2012 Q3 2011 Q4 2012 Q2 2012 Q3 (2) (2) ROAA ROAA ROAE ROAE Cost / Income Cost vs. Assets 42.6% 41.2% 42.9% 2.6% 2.7% 2.4% 2.5% 2.4% 2.3% 2011 Q4 2012 Q2 2012 Q3 2011 Q4

  18. Slide 18: Appendix – Quarterly Income Statement Highlights

    Appendix – Quarterly Income Statement Highlights (TL mn.) 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 ∆ QoQ Interest Income 2,764 3,103 3,291 3,378 3,404 0.8% Interest Expense 1,712 1,788 1,979 1,949 1,888 -3.1% Net Interest Income 1,052 1,315 1,312 1,429 1,515 6.0% Net Fees & Commissions 358 403 370 42

  19. Slide 19: iISBANK ©

    iISBANK ©

  20. Slide 20: Disclaimer

    Disclaimer The information in this document has been obtained by Türkiye İş Bankası A.Ş. (“Isbank”) from sources believed to be reliable, however, Isbank cannot guarantee the accuracy, completeness, or correctness of such information. This document has been issued for information purposes only. The

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