Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — Q1 2013 Earnings Presentation

26 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2013

  1. Slide 1: Q1 2013 Earnings Presentation

    BRSA Bank Only Q1 2013 Earnings Presentation

  2. Slide 2: Macro Overview

    Q1 2013 Earnings Presentation Macro Overview > GDP fell by 0.6% in the eurozone in 2012; 2013 > As macro-prudential tools, CBT made use of ROC consensus estimate is -0.4%. mechanism, automatic stabilizer, and increased 0.2 points > Turkish economy grew by 2.2% in 2012 despite for all tranches exclud

  3. Slide 3: Banking Sector Overview

    Q1 2013 Earnings Presentation Banking Sector Overview > Loan growth 4.8% QoQ versus deposit growth 2.6% > Competition Board imposed fines on most banks. QoQ; L/D ratio up to 105.7%. > Net interest income and trading income supporting > Retail loans increased by 5.3% quarterly; consumer bottom-line g

  4. Slide 4: Q1 2013 Highlights: Prudent, Profitable, Efficient

    Q1 2013 Earnings Presentation Q1 2013 Highlights Prudent, Profitable, Efficient > Net income at TRY 713 mn, up by 31.1% YoY, down > Consistent NPL coverage at 82.4% level by 3.9% QoQ > Solid deposit base with decreasing costs; deposits slightly > RoE 22.9%, RoA 2.6% increased by 0.6% QoQ > NIM at 5.

  5. Slide 5: 31.1% YoY net income growth driven by core banking business

    Q1 2013 Earnings Presentation 31.1% YoY net income growth driven by core banking business Net Income (TRY million) 31.1% -3.9% YoY Change (%) 742 20.7% NII 709 713 600 34.3% Total Operating Revenues 544 31.7% Net Operating Income 31.1% Net Income Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 RoE (%) RoA (%) YtD Qua

  6. Slide 6: Asset Growth: Securities down to 20.7%

    Q1 2013 Earnings Presentation Leverage came down further Asset Growth IEA Securities YoY 17.8% QoQ 2.8% 82.9% down to 20.7% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) Loans Cash & CBRT 86.7% 83.2% 82.9% 17.8% Securities Other Assets 2.8% FX 27.3% 24.9% 23.1% 108.3 111.3 60

  7. Slide 7: Increasing share of FRNs, namely CPI-linked securities

    Q1 2013 Earnings Presentation Increasing share of FRNs, namely CPI-linked securities Total Securities Portfolio (TRY billion) Interest Structure (%) Securities / Total Assets (%) FRN Securities / Total Securities CPI Linkers / Total Securities 25.8 21.2 20.7 24.4 22.9 23.1 59.3 60.7 FX 4.2 17% 2.2 1

  8. Slide 8: Strong loan growth in SME and retail

    Q1 2013 Earnings Presentation Strong loan growth in SME and retail (TRY billion)(a) Total Loans 19.7% HALKBANK B. Sector (b) 4.8% YoY YoY 19.7% 19.2% QoQ QoQ 4.8% 4.8% 67.9 64.8 Fund Loans 59.4 61.9 1.4 1.4 up 5.3% YoY TRY Loans 56.7 1.3 1.3 6.6 6.9 7.4 up 1.6% QoQ (b) HALKBANK B. Sector 1.3 6.5 Coo

  9. Slide 9: Well-diversified loan segmentation

    Q1 2013 Earnings Presentation Well-diversified loan segmentation Loans by Currency (TRY billion)(a) Loans by Types (%) FX 17.0 17.7 17.4 Funds 2% 27.3% 25.6% Cooperatives 11% 29.9% TRY 39.8 47.1 50.5 70.1% 72.7% 74.4% Retail 28% Commercial 59% Mar-12 2012 Mar-13 Sectoral Breakdown of Loans (%) Loans

  10. Slide 10: Market share gains in retail segment

    Q1 2013 Earnings Presentation Market share gains in retail segment (TRY billion)(a) 25.9% 9.9% HALKBANK YoY 19.4 25.9% 17.6 QoQ 16.4 16.9 15.4 Consumer Loans 9.9% up 19.5% YoY 9.6 10.5 up 9.3% QoQ 9.4 Share in total 54.4% B. SECTOR(b) 9.2 YoY 8.8 20.9% QoQ Housing Loans 5.3% 7.2 up 30.8% YoY 6.6 6.0

  11. Slide 11: Performance of new credit card programme

    Q1 2013 Earnings Presentation Performance of new credit card programme Since the launch of Paraf in Dec-12; > 25% increase in # of credit cards, > 29% growth in # of POS > 46% rise in issuer volume > 47% increase in acquirer volume Active Internet Users (Thousand) # of POS (Thousand) # of Merchants

  12. Slide 12: NPL ratio down to 2.8%

    Q1 2013 Earnings Presentation NPL ratio down to 2.8% NPL Portfolio (TRY million) NPL Coverage (%) 98.1 99.2 98.8 1,869 1,960 2,004 95.8 95.8 (a) 1,682 1,732 84.2 83.9 82.6 82.5 82.4 Since 2002 Legacy NPLs 511 508 507 503 498 2001 and before Mar-12 Jun- 12 Sep-12 2012 Mar-13 Mar-12 Jun- 12 Sep-12 201

  13. Slide 13: Low NPL ratios across all segments decoupling Halkbank from the industry

    Q1 2013 Earnings Presentation Low NPL ratios across all segments decoupling Halkbank from the industry Halkbank NPL Sector NPL (a,b) Corporate - Commercial (%)(a) Consumer Loans (%)(b) 3.2 3.3 2.5 2.8 3.1 2.3 2.3 2.8 2.0 1.9 1.6 1.5 1.6 1.8 1.7 1.4 1.4 1.5 1.3 1.1 Mar-12 Jun-12 Sep-12 2012 Mar-13 Ma

  14. Slide 14: Thanks to strong asset quality, CoR at 56 bps

    Q1 2013 Earnings Presentation Thanks to strong asset quality, CoR at 56 bps New NPLs by segments (TRY million) Gross Cost of Risk by segments (bps)(a) 17 6 2,004 85 34 84 1,960 56 (6) (7) 49 4 2012 Corporate Commercial SME Retail Other Mar-13 SME Retail Commercial Corporate Total Net Cost of Risk Gr

  15. Slide 15: High quality funding, low L/D ratio

    Q1 2013 Earnings Presentation High quality funding, low L/D ratio IBL 83.5%(a) Loan to Deposit (%) Liabilities by Curency (%) Liabilities Mix (%) Halkbank L/D Sector L/D(b) Deposits Marketable 31.9% Funds Borrowed Securities Issued FX Interbank Money Market Other Liabilities 103.0 105.7 100.4 Shareh

  16. Slide 16: Effective management of deposit base, sustained market share

    Q1 2013 Earnings Presentation Effective management of deposit base, sustained market share HALKBANK B. Sector (b) FX Dep. YoY -6.1% 8.3% HALKBANK B. Sector (b) HALKBANK B. Sector (b) QoQ -3.8% 2.8% Total Dep. YoY 14.0% 13.4% TRY Dep. YoY 26.1% 16.1% in USD YoY -7.7% 6.5% QoQ 0.5% 2.6% QoQ 2.6% 2.6%

  17. Slide 17: Cost of TRY deposit at historical low levels

    Q1 2013 Earnings Presentation Cost of TRY deposit at historical low levels Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 15.5 15.3 75.3 75.4 74.5 FX 14.3 31% 21.8% 12.7% TRY 12.4 69% 12.2 60

  18. Slide 18: Cost-Yield-Spread

    Q1 2013 Earnings Presentation Cost-Yield-Spread(a) Cost of Deposits (%) Spreads (%) On Securities On Loans 5.8 5.5 5.5 5.1 4.6 5.7 6.2 6.0 6.2 6.2 5.5 4.5 4.6 4.6 1.3 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Yield on Loans (%)(b) Yield on Securities (%) 11.5 11.7 11.5 10.3 10.6 11

  19. Slide 19: Strong track record of NIM at 5.5%

    Q1 2013 Earnings Presentation Strong track record of NIM at 5.5% Interest Expenses Net Interest Income (TRY million) Interest Income Breakdown of Interest Income (%) 20.7% 1,181 1,293 1,245 23% on Securities 1,032 970 2,170 2,302 2,127 2,393 2,254 77% on Loans -1,138 -1,121 -1,156 -1,099 -1,009 Q1-1

  20. Slide 20: Latent capacity in fees & commissions income

    Q1 2013 Earnings Presentation Latent capacity in fees & commissions income Net Fees & Commissions Income (TRY million) 269 218 218 211 161 YoY Growth 35.4% YoY Adj.(a) Growth ~9% Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Breakdown of Fees & Commissions (%) Net Fees & Commissions / Operating Revenues (%) Insuran

  21. Slide 21: C/I ratio below industry average despite new credit card programme

    Q1 2013 Earnings Presentation Despite new credit card programme and strong organic growth, C/I ratio below industry average Operating Expenses (TRY million) OPEX / Average Assets (%) 6.1% 2.1% 2.4 2.3 610 647 610 622 2.0 2.1 2.1 2.0 500 522 465 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q4-12 Q1-13 Mar-12 Jun-12

  22. Slide 22: Solvency Ratios

    Q1 2013 Earnings Presentation Solvency Ratios Capital Ratios (%) Details on Capital Ratio Basel II Tier 1 Ratio Basel-II Basel-II (TRY mn) 2012 Mar-13 16.2 15.9 Credit Risk Base Amount (CRBA) 70,006 73,721 14.6 Market Risk Base Amount (MRBA) 1,674 2,860 14.3 14.1 Operational Risk Base Amount (ORBA)

  23. Slide 23: Branch Network – Human Resources

    Q1 2013 Earnings Presentation > 25 new branches opened in Q1 2013, the branch Branch Network – Human Resources network climbed up to 841. Opened # of Branches by Province in Q1-13 ATMs 2,554 2,627 2,259 Kırklareli Bartın Sinop Edirne Tekirdağ İstanbul Kocaeli Düzce Zonguldak Karabük Kastamonu Samsun

  24. Slide 24: Balance Sheet

    Q1 2013 Earnings Presentation Balance Sheet QoQ YoY In TRY million Q1-12 2012 Q1-13 Change % Change % Cash and Balances Held with the Central Bank (a) 7,724 12,488 13,421 7 74 Banks & Money Market (b) 1,124 2,632 1,592 (39) 42 Securities (b) 24,386 22,954 23,090 1 (5) Net Loans (b) 57,714 65,894 68,

  25. Slide 25: Income Statement

    Q1 2013 Earnings Presentation Income Statement QoQ YoY In TRY million Q1-12 Q4-12 Q1-13 Change % Change % Interest Income 2,170 2,393 2,254 (6) 4 On Loans 1,564 1,771 1,728 (2) 10 On Securities 603 613 520 (15) (14) Interest Expense 1,138 1,099 1,009 (8) (11) On Deposits 986 1,009 909 (10) (8) Net I

  26. Slide 26: For further information please contact

    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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