20 slides from Icbc Turkey Bank Anonim Sirketi's earnings presentation, Dec 31, 2010
Slide 1: Earnings Presentation December 31, 2010 / BRSA Bank-Only
Earnings Presentation December 31, 2010 / BRSA Bank-Only 1
Slide 2: Macroeconomic outlook in 2010
Macroeconomic outlook in 2010... Strong GDP growth of around 8.5%, surpassing all expectations Quick rebound in C/A deficit to pre-crises levels, with a fragile finance structure Further decline in inflation to 6.4%, in line with the official target Lower budget deficit of around 3.5% of GDP
Slide 3: Noteworthy volume growth
Noteworthy volume growth... Focal points in 2010 were: Attending to high growth environment Improved asset quality, thanks to firm collection performance Maintaining close cost monitoring policy Highlights of Q4 2010: Remarkable balance sheet growth • A notable q/q loan growth of 22%, surpas
Slide 4: Looking into 2011
Looking into 2011... Macro Banking Sector Tekstilbank Loan growth of 25% Preserving cautious growth A healthier growth rate of policy around 4.5% vs. 2010 On-going pressure on NIM, Spotlight on inflationary Increasing cross-selling reflecting high competition pressures opportunities for
Slide 5: Remarkable growth in balance sheet
Remarkable growth in balance sheet... Composition of Assets Total Assets (TLmn) CAGR 04-07: YoY: 21% 35% 2,573 8.8% 9.1% 8.7% 8.8% 7.4% 2,133 1,952 2,163 2,083 6.8% 7.4% 8.9% 8.6% 10.1% 19% 10.7% 14.1% 13.4% 12.4% 15.2% 71.9% 71.3% 70.7% 2009 Q1 2010 Q2 2010 Q3 2010 2010 69.7% 66.0% Currency Composi
Slide 6: Loan portfolio preserved its uptrend
Loan portfolio preserved its uptrend... Total Cash Loans (TLmn) TL Cash Loans (TLmn) YoY: 20% YoY: 12% 1,836 1,534 1,508 1,381 1,375 1,062 1,189 902 22% 855 995 Loans / Customer Deposits 20% 2009 Q1 2010 Q2 2010 Q3 2010 2010 2009 Q1 2010 Q2 2010 Q3 2010 2010 115% 106% 107% Currency Breakdown of 103%
Slide 7: TL deposits rebounded in last quarter
TL deposits rebounded in last quarter... Composition of Liabilities Total Deposits* (TLmn) TL Deposits* (TLmn) & SHE YoY: 23% YoY: 47% 1,782 1,071 3% 3% 3% 4% 3% 1,186 1,407 1,447 755 1,337 726 663 766 24% 23% 22% 22% 27% 19% 42% 7% 9% 9% 12% 10% 2009 Q1 2010 Q2 2010 Q3 2010 2010 2009 Q1 2010 Q2 201
Slide 8: Steadily increasing free equity
Steadily increasing free equity... Capital Adequacy Ratio (CAR) Free Equity (TLmn) Free Equity / Equity 22.3% 22.0% 20.8% 21.0% 71.1% 71.8% 19.4% 70.5% 71.1% 69.3% 356 338 343 334 324 2009 Q1 2010 Q2 2010 Q3 2010 2010 2009 Q1 2010 Q2 2010 Q3 2010 2010 Free Equity: SHE-subsidiaries-property & equipme
Slide 9: Further improvement in NPL ratio
Further improvement in NPL ratio... NPL Ratio NPL Ratio (including non-cash loans) Tekstilbank Market Average Tekstilbank Market Average 6.7% 6.7% 6.0% 6.0% 4.1% 4.4% 4.5% 4.9% 4.0% 5.3% 3.3% 4.9% 4.4% 4.0% 3.7% 3.3% 4.3% 3.4% 3.7% 2.8% 2009 Q1 2010 Q2 2010 Q3 2010 2010 2009 Q1 2010 Q2 2010 Q3 2010
Slide 10: Uptrend prevailed in retail loans, while corporate loans continued to be focal point
Uptrend prevailed in retail loans, while corporate loans continued to be focal point... Breakdown of Loan Portfolio Breakdown of Retail Loans (TLmn) YoY: 30% 268 2.3% 2.3% 2.3% 2.0% 1.6% 6% 254 239 11.1% 13.1% 14.8% 13.0% 15.1% 213 29 206 30 31 98 35 32 86.6% 93 85.4% 90 84.6% 74 83.2% 81 7 82.6% 8
Slide 11: Low group exposure
Low group exposure... Group Total Risk / Total Risk Tekstilbank Market Average* 2.3% 2.9% 2.5% 2.6% 3.3% 2.5% 2.5% 1.4% 1.0% 2009 Q1 2010 Q2 2010 Q3 2010 2010 Cash + Non-cash risk, due from group banks are included Group Cash Loans / Cash Loans Group Non-Cash Loans / Non-Cash Loans Tekstilbank Marke
Slide 12: FX non-cash loans headed upwards
FX non-cash loans headed upwards... Total Non-Cash Loans (TLmn) TL Non-Cash Loans (TLmn) Non-Cash / Cash Loans YoY: 18% YoY: 9% 814 888 422 753 748 730 407 373 373 351 -3% 9% 54.2% 54.0% 49.1% 53.1% 2009 Q1 2010 Q2 2010 Q3 2010 2010 2009 Q1 2010 Q2 2010 Q3 2010 2010 48.4% Currency Breakdown of FX No
Slide 13: Declining yields resulted in lower interest income & expense
Declining yields resulted in lower interest income & expense... Interest Income (TLmn) Composition of Interest Income 247 5% 2% -25% 185 12% 13% Other 12 Securities 30 4 85% 25 Loans 83% 205 156 2009 2010 2009 2010 Interest Expense (TLmn) Composition of Interest Expense 127 -29% 1% 7% 90 Interbank &
Slide 14: Narrowing margins, suppressed also by high competition
..resulting in narrowing margins, suppressed also by high competition Banking Income (TLmn) Adjusted Net Interest Margin* (Cumulative) 170 5.6% 134 5.2% 5.0% 4.5% 11.7 20.2 2007 2008 2009 2010 15.3 18.1 Adjusted Net Interest Margin* (Quarterly) 137.7 6.2% 5.6% 100.7 5.4% 4.7% 4.6% Q409 Q110 Q210 Q31
Slide 15: Conservative approach for expenses prevailed
Conservative approach for expenses prevailed... Operating Expenses (TLmn) Composition of Operating Expenses 101 - 7% 94 27% 26% 25.5 24.7 9% 9% 9.4 5% 5% 5.2 8.8 4.8 60% 61.2 59% 55.9 2009 2010 2009 2010 Personnel Depr.& Amort. Personnel Depr.& Amort. Operational Leasing Other Opex Operational Leasi
Slide 16: Summary Balance Sheet
Summary Balance Sheet... TL million Dec 2009 Sep 2010 Dec 2010 Cash & Banks 201 179 251 Total Securities 229 305 320 Total Cash Loans 1,534 1,508 1,836 Fixed Assets & Subsidiaries 102 100 105 Other 67 71 61 Total Assets 2,133 2,163 2,573 Deposits* 1,447 1,407 1,782 Interbank Money Market* 9 145 151
Slide 17: Summary Income Statement
Summary Income Statement... TL million Q1 2010 Q2 2010 Q3 2010 Q4 2010 2009 2010 Interest Income 46.2 46.1 43.9 48.7 246.5 184.9 Loans 40.0 37.9 38.2 40.3 204.7 156.4 Securities 5.3 7.0 4.3 8.1 29.5 24.7 Other 0.9 1.2 1.4 0.3 12.3 3.8 Interest Expense 22.2 21.6 22.1 24.2 127.2 90.1 Deposits 18.9 18.
Slide 18: Summary Income Statement (Consolidated)
Summary Income Statement (Consolidated)... TL million Q1 2010 Q2 2010 Q3 2010 Q4 2010 2009 2010 Interest Income 46.6 46.4 44.0 49.0 248.9 186.0 Loans 40.2 38.0 38.3 40.4 206.9 156.9 Securities 5.4 7.2 4.3 8.2 29.9 25.1 Other 1.0 1.2 1.4 0.4 12.1 4.0 Interest Expense 22.2 21.6 22.1 24.1 129.1 90.0 De
Slide 19: Disclaimer
Disclaimer Statement The information, opinions and estimates contained in this document have been compiled or arrived at by Tekstilbank from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or corre
Slide 20: For further information please contact
For further information please contact: Investor Relations Phone: +90-212-335-5159 investorrelations@tekstilbank.com.tr www.tekstilbank.com.tr 20