Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — FY2009 Earnings Presentation
27 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2010
Slide 1: 2009 Earnings Presentation
2009 Earnings Presentation BRSA Bank Only
Slide 2: Nationwide coverage while focusing new openings more on large cities
2009 Earnings Presentation Nationwide coverage while focusing 46 new branches were opened, 18 of them in Istanbul, beefing up the network with 668 branches all over the new openings more on large cities country. 50 new branches are in the pipeline. • Halkbank’s 12,505 employees have high levels of p
Slide 3: Macro Outlook
2009 Earnings Presentation Macro Outlook > Despite slow recovery in domestic demand, GDP growth in Turkey may exceed expectations at around 4%, thanks to base effects and to recent improvement in major indicators, mainly industrial production. > Given the recent tax-related changes and the seasonal
Slide 4: Banking Sector Outlook
2009 Earnings Presentation Banking Sector Outlook > Mortgage lending started to pick some time ago as customers became convinced that the easing cycle is over. We now see further improvement in the outlook and this trend in mortgages is set to continue. > A push for diversification in investments ma
Slide 5: 2009 Highlights: Strong growth and sustainably high profitability
2009 Earnings Presentation 2009 Highlights Strong growth and sustainably high profitability > Total assets up 18.7% YoY with a remarkable 2.9% ROA. > Superior loan growth with 22.2% increase in TRY, 37.7% in FX in USD terms, and 26% in total. > 4.9% NPL ratio is up only 20 bps YoY. This is well belo
Slide 6: Performance matrix based on major ratios
2009 Earnings Presentation 2009 Performance matrix based on major ratios (a) Loan Gross NPL Net Fee ROE NIM C/I Growth Growth (b) Income Growth Halkbank 32.5% 6.0% 31.0% 25.6% 33.3% 24.4% Peer 1 26.0% 5.5% 32.6% -0.4% 91.4% 14.0% Peer 2 21.5% 5.4% 33.3% -10.5% 60.3% 17.2% Peer 3 20.7% 5.1% 35.4% 1.5
Slide 7: Asset growth is driven by loan expansion
2009 Earnings Presentation Asset growth is driven by loan expansion ASSET GROWTH IEA Asset Mix (%) YoY 18.7% QoQ 6.0% 93.9% Loans Securities Other Assets Total Asset Growth (TRY billion) Composition of IEAs (a) 50.7% 93.2% 93.9% 93.9% 18.7% FX 18.3% 26.6% 45.0% 50.6% 53.5% 26.9% 60.7 51.1 40.2 39.6%
Slide 8: Comfortable loan/deposit ratio provides scope for growth and alleviates pressure on NIM
2009 Earnings Presentation Comfortable loan/deposit ratio provides scope for growth and alleviates pressure on NIM Loan to Deposit (%) Composition of IBLs (a) Liabilities Mix (%) Total L/D Deposits Other Liabilities Funds Borrowed Shareholder’s Equity Interbank Money Market 73.9 83.5% 86.5% 85.5% 58
Slide 9: Securities portfolio grew 16.6% with composition changing in favor of AFS
2009 Earnings Presentation Securities portfolio grew 16.6% with composition changing in favor of AFS Total Securities Portfolio (a) (TRY billion) Total Securities Composition HTM AFS Trading 21.4 3.0% 0.6% 0.2% 18.3 4.0 52.9% 12.9% 22.3% A strategy of managing 15.9 19% newly-invested 3.8 20% securit
Slide 10: FRNs: Protection against rate hikes
2009 Earnings Presentation FRNs: Protection against rate hikes Total Securities Portfolio (a) (%) FX Securities Portfolio (a) (%) FIX 22 FIX 56 79 99 33 38 FRNs 78 67 62 FRNs 44 21 1 2007 2008 2009 2007 2008 2009 TRY Securities Portfolio (a) (%) 51% of FRNs are repriced in 45 days, 15% FIX 13 22 25
Slide 11: The story goes on: Unmatched loan growth
2009 Earnings Presentation The story goes on: Unmatched loan growth (TRY billion) (a) 26.4% YoY Change (%) 31.7 TOTAL LOANS 6.6% Fund Loans 29.7 1.2 up 3.9% HALKBANK SECTOR (b) 1.1 3.3 Cooperative Loans YoY 26.4% YoY 6.4% 25.0 3.3 up 6.0% 1.1 7.3 Retail Loans 3.1 6.3 up 33.6% TRY LOANS 17.8 5.5 HALK
Slide 12: Customer acquisitions driven by new campaigns and products launched in 2009
2009 Earnings Presentation Customer acquisitions driven by new campaigns and products launched in 2009: > 294 new customers in the corporate segment, 879 in the commercial segment, and 63,507 in the SME segment Financial Institutions and Investor Relations 11 www.halkbank.com.tr
Slide 13: Much of the vigor in retail loan growth comes from consumer and mortgage lending
2009 Earnings Presentation Much of the vigor in retail loan growth comes from consumer and mortgage lending (TRY million) (a) 33.6% HALKBANK 15.7% 7,327 YoY 33.6% 6,332 YoY Change (%) 4,140 5,485 Consumer Loans up 34.4% SECTOR 3,766 Share in total 56.5% YoY 11.0% (b) 4,118 3,080 2,104 2,655 Housing
Slide 14: Customer acquisitions: 1,051,919 new retail customers
2009 Earnings Presentation Customer acquisitions driven by new campaigns and products launched in 2009: 1,051,919 new customers in the retail segment; 187,720 in credit cards Financial Institutions and Investor Relations 13 www.halkbank.com.tr
Slide 15: Strong position in all customer segments; twofold increase in FX loan market share
2009 Earnings Presentation Strong position in all customer segments. Approximately twofold increase in FX loan market share during the last two years Loans by Currency (a) (TRY million) Loans By Types (%) Commercial 63% FX 3,015 6,540 8,847 27.9% Funds 4% Cooperatives 10% TRY 14,775 18,506 22,819 72
Slide 16: Well-retained asset quality combined with loan growth results in NPL ratio stabilization
2009 Earnings Presentation Well-retained asset quality combined with loan growth results in NPL ratio stabilization NPL Portfolio (TRY million) NPL Coverage (%) 1,586 1,668 (a) 83.1 82.6 84.4 89.0 1,251 1,033 81.4 81.9 Since 2002 78.0 80.1 81.1 752 Legacy of 593 604 600 year 2001 and before 2007 200
Slide 17: NPL ratio below the sector average with no write-offs or sell-offs
2009 Earnings Presentation NPL ratio below the sector average with no write-offs or sell-offs NPL/Total Loans (a) (%) Consumer Loans (b) (%) Halkbank Sector (a,b) 5.4 ~5.4 (c) 5.4 5.2 5.2 5.1 5.0 5.1 4.3 3.7 4.7 4.7 5.0 4.9 2.7 4.3 1.6 2.7 2.3 2.5 2.6 3.6 1.6 3.5 0.7 2007 2008 Mar-09 Jun-09 Sep-09 2
Slide 18: Total deposit market share has been maintained even while reducing costs
2009 Earnings Presentation Total deposit market share has been maintained even while reducing costs TRY Deposits by Types (a) (TRY billion) Total Deposits by Currency (a) (TRY billion) Demand Deposits (TRY billion) Other Institutions Public Sector Demand Deposits/Total Deposits (%) Interbank Savings
Slide 19: Cost-Yield-Spread
2009 Earnings Presentation Cost-Yield-Spread (a) Cost of Deposits (%) Spreads (%) On Securities On Loans 8.2 8.0 7.9 7.7 12.8 10.5 8.1 5.8 7.2 5.6 5.0 4.5 4.4 4.0 4.1 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Yield on Loans (b) (%) Yield on Securities (%) 18.6 17.3 18.1 16.1 14.5 1
Slide 20: Net interest income surged 46.2% YoY
2009 Earnings Presentation Net interest income surged 46.2% YoY Net Interest Income (TRY million) Breakdown of Interest Income 46.2% 62% on Loans 21.3% 3,109 2,126 1,752 36% on Securities Other 2% 2007 2008 2009 61.2% Interest Income (TRY million) On Securities On Loans 12.0% 1,101 1,102 1,036 1,054
Slide 21: Strong growth in fee income: Up 24.4% YoY
2009 Earnings Presentation Strong growth in fee income: Up 24.4% YoY Net Fees & Commissions Income (TRY million) 50.5% 21.0% 24.4% 25.0% 134 461 114 111 370 102 89 296 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 2007 2008 2009 Breakdown of Fees & Commissions Income Net Fees & Commissions Income/Total Operating Re
Slide 22: Consistent OPEX growth: Within tolerable limits and derived from loan expansion
2009 Earnings Presentation Consistent OPEX growth: Within tolerable limits and derived from loan expansion Operating Expenses (TRY million) 15.1% 19.1% 4.3% 18.2% 321 1,194 294 308 279 272 1,002 848 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 2007 2008 2009 Cost/Income (%) Breakdown of Operating Expenses Other 19
Slide 23: Peerless income generation with recurring items only
2009 Earnings Presentation Peerless income generation with recurring items only Net Income (TRY million) Discretionary Provisions in Liabilities (TRY million) Adjusted ~498 Quarterly Income 291% (360% Adjusted) 75 424 57 127 423 420 365 70 Provisions Expenses in 2009 108 Q4-08 Q1-09 Q2-09 Q3-09 Q4-0
Slide 24: Key Ratios
2009 Earnings Presentation Key Ratios ROE (%) ROA (%) 35.3 3.4 32.5 3.0 2.9 2.9 27.7 30.2 23.5 2.2 2007 2008 2009 Q4-09 Q4-09 2007 2008 2009 Q4-09 Q4-09 Adjusted (a) Adjusted (a) NIM (%) CAR (%) 6.0 6.3 20.0 5.0 4.9 16.0 14.5 2007 2008 2009 Q4-09 2007 2008 2009 (a) Excluding Discretionary Provisions
Slide 25: Balance Sheet
2009 Earnings Presentation Balance Sheet YoY (08-09) In TRY million 2008 Sep-09 2009 Change (%) Cash and Balances Held with the Central Bank (a) 3,009 3,318 3,416 14 Banks & Money Market (b) 2,119 851 1,136 (46) Securities (b) 18,334 20,280 21,373 17 Net Loans (b) 25,836 30,512 32,458 26 Gross NPL 1
Slide 26: Income Statement
2009 Earnings Presentation Income Statement In TRY million 2008 2009 YoY (%) Q1-09 Q2-09 Q3-09 Q4-09 Interest Income 6,793 6,817 0.3 1,830 1,697 1,664 1,626 On Loans 3,773 4,226 12 1,102 1,036 1,054 1,035 On Securities 2,776 2,442 (12) 678 622 579 563 Interest Expense 4,667 3,708 (21) 1,151 928 881
Slide 27: 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
Türkiye Halk Bankası A.S. — FY2009 Earnings Presentation on 6ix