Yapi Ve Kredi Bankasi A.s. · BIST:YKBNK
Yapi Ve Kredi Bankasi A.s — Yapı Kredi — UniCredit CEE Day 2010
21 slides from Yapi Ve Kredi Bankasi A.s's conference presentation, Dec 2, 2010
Slide 1: Yapı Kredi Presentation
Yapı Kredi Presentation UniCredit CEE Day 2010 London, 2 December 2010
Slide 2: Agenda
AGENDA Operating Environment Yapı Kredi at a Glance Competitive Positioning and Strategic Priorities Concluding Remarks 2
Slide 3: Turkey is a big and attractive country with strong fundamentals
Turkey is a big and attractive country with strong fundamentals 1Q10: 11.7% 9.4% 8.4% 2Q10: 10.3% GDP Growth 6.8% 6.2% 5.3% 6.9% 7.0% 4.7% Consistent 0.7% growth within stabilising -3.4% Avg. 7% macro -5.7% -4.7% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E environment 69% 69% Avg. 1
Slide 4: Turkish banking sector is among the most attractive in CEE in terms of growth
Turkish banking sector is among the most attractive in CEE in terms of growth potential, stability and profitability Branches per mln (Loans+Deposits)/ 2003 2008 2009 9M10 Inhabitants GDP 459 No of Banks 50 45 45 45 305% Loans / GDP 15% 37% 39% 42% 125 90% Retail Loans / GDP 3% 12% 13% 14% Eurozone
Slide 5: Positive macroeconomic environment and banking sector outlook to be sustained
Positive macroeconomic environment and banking sector outlook to be sustained in the upcoming period Solid GDP growth in line with / above 5% over the next 3-5 years Continuation of Low inflation environment to be maintained with inflation below 10% positive and stable macroeconomic Low interest rat
Slide 6: Agenda
AGENDA Operating Environment Yapı Kredi at a Glance Competitive Positioning and Strategic Priorities Concluding Remarks 6
Slide 7: Yapı Kredi: fourth largest private bank in Turkey with leading positions
Yapı Kredi: fourth largest private bank in Turkey with leading positions in key segments FINANCIAL HIGHLIGHTS MARKET POSITIONING (BRSA Consolidated Figures, 30 Sep 2010) (30 Sep 2010) Rank Mkt. Sh. % # of Branches 4 9.2 EUR TL Deposits 6 8.3 TOTAL Total Assets (bln) 42.6 82.0 Loans 5 10.2 Consumer L
Slide 8: Strong shareholding structure and customer focused, divisionalised service model
Strong shareholding structure and customer focused, divisionalised service model supported by integration of product factories 50% 50% L L 81.8% 18.2% Minority Shareholders L Corporate / Retail Banking Private Banking Comm. Banking 32 branches Credit Individual 207 RMs Corporate Commercial Cards
Slide 9: Track record of successful execution of strategy since the merger
Track record of successful execution of strategy aligned with changing priorities since the merger in 2006… Merger and Restructuring Relaunch of Challenging Back to Growth Integration Growth Environment Legal merger of Launch of Accelerated Temporary Relaunch of Yapı Kredi and accelerated
Slide 10: Consistently strong performance and solid profitability with proven cost control
…resulting in delivery of consistently strong performance and solid profitability accompanied by proven capability of cost control and efficiency improvement Net Income (mln TL) Return on Average Equity1 1,870 23% 1,553 29.8% 46% 24% 26.3% 25.0% 1,265 1,282 23.5% 22.7% 1,019 2007 2008 2009 9M09 9M10
Slide 11: Agenda
AGENDA Operating Environment Yapı Kredi at a Glance Competitive Positioning and Strategic Priorities Concluding Remarks 11
Slide 12: Business mix positioning Yapı Kredi as bank of the real economy
Balance sheet, business mix and branch network positioning Yapı Kredi as “bank of the real economy” with strong retail focus Loans / Assets Securities / Assets Balance Sheet 58% 48% 36% Customer-business focused strategy 20% - Share of loans in assets at 58% - Share of securities in assets at 20%
Slide 13: High quality earnings driven by business mix and profitability focus
High quality earnings driven by business mix and profitability focus Strong Loan Composition Sustainable Revenue Composition Composition of Loans Composition of Revenues Composition of Fees By Product By Currency Insurance 1.7% Other2 Credit Cards 9.5% 41.3% Mortgage Fees 24% 26% Account Maint. 4.1%
Slide 14: Strongest fee generation capability and increased focus on fees
Strongest fee generation capability and increased focus on fees also to compensate NIM pressure going forward Outperformance in Fee Generation Fees / Revenues 45% Focus Areas to Increase Fee Generation 30% 26% 20% 20% Continuous emphasis on innovation - Product bundles - Structured products Sustaine
Slide 15: Unique track record in pursuing growth together with efficiency
Unique track record and execution capability in pursuing growth together with efficiency as a key success factor in a declining margin environment Cost Evolution (y/y growth) Branch and Headcount Increase Cost / Income YKB 68% 27% 59% 17% 19% 53% Branch ∆ Sector 41% 1 13% 11% 48% 40% YKB 9% 9% 46% 4
Slide 16: Proven capability to react quickly and manage asset quality
Proven capability to react quickly to changing market environment and successfully manage asset quality evolution NPL Ratio Evolution Key actions taken to control asset quality Total Coverage*: Quick Measures Structural Measures 103% YKB 6.5% 5.8% 6.3% More conservative Launch of SME 4.3% approa
Slide 17: Rapid shift from crisis in 2009 to growth in 2010
Rapid and effective shift from “crisis” in 2009 to “growth” in 2010; significant improvement potential in commercial effectiveness Action taken Results Launch of new product bundles ~270,000 product bundle sales in 8 months Product / ~260,000 new cards sold (+23% vs 1Q) Launch of new credit card
Slide 18: Key strategic priorities to achieve leadership in selected segments
Key strategic priorities to achieve leadership in selected segments / products as well as in overall profitability Above sector growth on the back of increased commercial effectiveness Focus on further penetration of existing and potential client base, cross-sell and Growth & product bundling, l
Slide 19: Strong and mutually beneficial relationship between UniCredit Group and Yapı Kredi
Strong and mutually beneficial relationship between UniCredit Group and Yapı Kredi Yapı Kredi not only stronly benefits from being part of UniCredit Group but also contributes to the Group significantly Engine for growth Strong and dedicated coupled with shareholder with solid Yapı Kredi UniCred
Slide 20: Agenda
AGENDA Operating Environment Yapı Kredi at a Glance Competitive Positioning and Strategic Priorities Concluding Remarks 20
Slide 21: Concluding remarks
Concluding remarks Significant growth potential of a young and fast growing country with robust track record of economic activity and an underpenetrated banking sector Yapı Kredi, a unique platform for growth on the back of key competitive advantages and proven track record of consistently strong pe