Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR

Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — Investor Presentation (March 2010)

42 slides from Turkiye Is Bankasi Anonim Sirketi's investor presentation, Mar 31, 2010

  1. Slide 1: Isbank Investor Presentation 2010-Q1

    ISBANK INVESTOR PRESENTATION > ™~ 2010-Q1

  2. Slide 2: Disclaimer

    The information in this document has been obtained by Turkiye Is Bankasi A.S. (“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 financial

  3. Slide 3: Agenda

    Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 Major Equity Participations 36 Page 3

  4. Slide 4: Agenda: Financial Highlights

    Financial Highlights 9 Retail Bankingg 31 Major Equity Participations 36 Page 4

  5. Slide 5: Isbank at a Glance

    Free Float 30.4% ƒ Stocks are quoted at ISE and also traded at LSE in the form Ataturk Shares Isbank Pension Fund of GDR 28.1% ƒ Largest stake owned by employees via pension fund 41.5% ƒ 1,084 domestic branches, that cover all cities in Turkey (Largest among private banks), and 15 international bran

  6. Slide 6: Main Business Lines

    Main Business Lines ... Page 6

  7. Slide 7: Market Share and Rank

    Market Share(%) Rank(2) 2010 Q1 Total Assets(1) 14.3 1st Loans(1) Total Loans 12.7 2nd TRY Loans 12.4 1st FX Loans 13.3 3rd Consumer Loans(3) 11.3 1st Deposits(1) TRY Deposits 14.0 1st FX Deposits 15.6 2nd Demand Deposits 14 9 14.9 2nd Total Deposits 14.5 1st Retail Products Volume of Debit Cards 15

  8. Slide 8: Agenda

    Isbank at a Glance 5 Retail Banking 31 Major Equity Participations 36 Page 8

  9. Slide 9: Total Assets, Loans, Deposits, Shareholders' Equity

    Total Assets (TRY mn mn.) .) Loans (TRY mn mn.) .) 113.223 117.782 47.610 48.335 50.284 97.552 75.205 75 205 80.181 33.980 33 980 29.818 2006 2007 2008 2009 2010 Q1 2006 2007 2008 2009 2010 Q1 Deposits (TRY mn mn.) .) Shareholders’’ Equity (TRY mn Shareholders mn.) .) 13.494 13 883 13.883 72.177 75.

  10. Slide 10: Asset Composition

    (TRY mn.) 2009 2010 Q1 Change Asset Composition Cash & Banks 17,193 15,203 ‐12% 15% 13% Cash & Banks Securities (Net) 39,290 43,470 11% 35% 37% Securities Loans 48,335 50,284 4% Loans Participations (Net) 5,031 5,170 3% 43% 43% Participations Fixed Assets (Net) 1,922 1,934 1% 4% 4% 3% 3% Fixed Asset

  11. Slide 11: Loan Portfolio

    Loan Portfolio QoQ (TRY mn.) Loans / Deposits 50.284 77,1% 72,3% 48.335 66,5% 67,0% 34 435 35.300 34.435 50,5% 56,0% 14.984 13.900 2009 2010 Q1 TRY FX Total 2009 Q4 2010 Q1 Loans/Deposits TRY Loans/TRY Deposits FX Loans/FX Deposits Loan Portfolio YoY (TRY mn.) TRY / FX Mix of Loans 25% 26% 31% 29% 3

  12. Slide 12: Total Loans Composition and Consumer Loans

    …56 56%% comprised of retail Total Loans Consumer Loans (TRY mn mn.) .) and SME loans. loans. 10,202 10,613 21% 21% Retail Loans 1% 1% 31% 9% 9% 50% 50 % General Purpose Consumer Consumer Loans 25% 25% Overdraft 7% 8% Credit Cards Auto Loans 44% 44% SME* 43% 42% Corporate Housing Loans 2009 2010 Q1

  13. Slide 13: NPL Ratio and Management of NPLs

    NPL Ratio Management of NPLs 100% NPL provisioning 100% since 2003 2003… … 6,1% 2,5% 4,2% 5,1% 5,1% 5,4% 5,4% 1,4% 0,6% 0,5% 695 485 481 4331 374 368 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 315 297 237 207 214 T mn. 188 161 Coverage TRY 57 78 5 7 09 Q1 09 Q2 09 Q3 09 Q4 10 Q1 131,2% 121,5% 100,0% ‐

  14. Slide 14: NPL Ratio by Loan Categories

    NPL Ratio by Loan Categories NPL Breakdown 10,2% 10,6% 67% 83% 94% 5,4% 5,4% 96% 97% 4,2% 4,0% 33% 17% 6% 4% 3% Consumer Credit Cards Total Loans 2006 2007 2008 2009 2010 Q1 2009 2010 Q1 Restructured Other NPLs Performing Loan Groups 96,0% 4 0% 4,0% I. Group Loans II. Group Loans Page 14

  15. Slide 15: Breakdown of Securities Portfolio

    Breakdown of Securities Portfolio Total Portfolio (TRY mn.) mn.) 43.470 TRY 39.290 Discount & FX Floating; Fixed ; 7,4% 35,5% 26.319 24.981 24.326 FX Discount TRY & Fixed ; Floating; 21,5% 35 6% 35,6% 2006 2007 2008 2009 2010 Q1 69 % of Securities are Available for Sale Average durations are Governm

  16. Slide 16: Liabilities Composition

    (TRY mn.) 2009 2010 Q1 Change Liabilities Composition Deposits 72,177 75,564 5% 12% 12% Equity REPOs & Money Market 10,984 11,036 ‐ 5% 7% Funds Borrowed 9,744 9,450 ‐3% 9% 8% Other Other 6,824 7,849 15% 10% 9% Equity 13,494 13,883 3% Funds Total Liabilities 113,223 117,782 4% Borrowed 64% 64% REPOs&

  17. Slide 17: Deposit Base

    l ... a clear i di t indicator off customer trust trust.. Deposit Base (TRY mn mn.) .) FX Deposits 75,564 72,177 TRY Deposits 63,539 35% 38% 48,533 46,399 36% 36% 39% 65% 62% 64% 64% 61% 2006 2007 2008 2009 2010 Q1 Page 17

  18. Slide 18: Deposits and Market Shares

    Deposits QoQ (TRY mn.) Market Shares 72.177 75.564 15,9% 15,6% 14,5% 13 5% 13,5% , 14,3% , 14,0% 44.672 48.802 9,9% 27.505 26.762 4,1% 6,8% TRY FX Total 2000 2009 2010 Q Q1 2009 Q4 2010 Q1 TRY Deposits FX Deposits Total Deposits Deposits YoY (TRY mn.) Largest g market share in TRY and total deposits

  19. Slide 19: Demand Deposits

    …make significant contribution to lower cost of Demand Deposits (TRY mn mn.) .) Share of Demand Deposits in Total Deposits funding.. funding 2010 Q1 11,259 11,028 8,788 7,991 7,678 60% 60% 85,4% 54% 47% 55% 14,6% 40% 40% 46% 53% 45% Demand Deposits Other Deposits 2006 2007 2008 2009 2010 Q1 TRY FX P

  20. Slide 20: Client Assets and Investment Accounts

    ... has reached a remarkable Client Assets ((TRY mn.) mn.)) No. Of Investment Accounts ((000)) total of TRY 114 billion. billion. 7.498 7.752 113,985 107,320 90,617 6.158 On‐Balance Shee 70,488 79,821 4.630 5.231 66% 67% et 70% 61% 66% 15% 13% 9% 9% 18% SSheet O Off‐Balance 7% 6% 6% 6% 6% 2006 200 2

  21. Slide 21: Capital Adequacy and Shareholders' Equity

    Capital Adequacy Regulatory Capital (TRY mn mn.) .) High CAR support supportss balance sheet growth going 18,0% 18,3% 17,6% forward… forward … 16,7% 14.258 16,8% 17,0% 13.963 15,2% 15,4%15,9% 16,3% 16,2% 13.148 13.136 12.933 15,4% 12.314 12.146 11.884 1.143 0.854 0.805 10.638 1 11 1 10 10 2008 Q4 20

  22. Slide 22: Operating Income Composition QoQ

    Change (TRY mn.) 2009 Q4 2010 Q1 QoQ Operating Operati ng Income Composition N Interest Net I IIncome 1,282 1,254 ‐2% Net Fees & Comm. from Banking NII 335 319 ‐5% Serv. 62% 57% Net Trading Gains/Losses 100 126 26% Net Commissions Dividends Received 0 111 ++ 15% 16% Released Provisions 306 351 15% 5

  23. Slide 23: Operating Income Composition YoY

    Change (TRY mn.) 2009 Q1 2010 Q1 YoY Operating Operat ing Income Composition Net Interest Income 1 090 1,090 1 254 1,254 15% Net Fees & Comm. from Banking NII 291 319 10% Serv. 56% 57% Net Trading Gains/Losses 196 126 ‐36% Net Commissions Dividends Received 150 111 ‐26% Released Provisions 178 351 9

  24. Slide 24: Fees and Commissions Received

    ... supported by superior Fees and Commissions Received ‐(Gross) Gross) Gross Commission Income (TRY mn mn.) .) retail and corporate franchise.. franchise 8% 8% Non Cash Loans 9% 319 347 15% Credit Appraisal 17% 22% Mutual Fund Man. And Other Inv.Acc.Fees 2009 Q1 2010 Q1 Credit Cards 42% Commission

  25. Slide 25: Average Spread and Quarterly NIM

    Average Spread Quarterly NIM 8,1% 7,3% 5,6% 5,3% 6,4% 6,4% 1,3% 1,3% 2009 Q4 2010 Q1 TRY FX Blended 2,4% 1,7% Quarterly Adj. NIM (1) 8,0% 8,5% 5,7% 6,1% 2009 2010 Q1 TRY FX 1,7% 1,5% 2009 Q4 2010 Q1 TRY FX Blended (1) Adjusted for Securities Trading Gains / Losses and Foreign Exchange Gains / Losses

  26. Slide 26: Cost / Income and Cost Structure

    Cost / Income Cost vs. Income (TRY mn mn.) .) 45,2% 42,0% 36,7% 2.193 34,0% 1.945 30,4% 604 668 2006 2007 2008 2009 2010 Q1 2009 Q1 2010 Q1 Cost Income Cost vs. Assets Cost Structure 7% 10% Other 5% 4% 8% 8% 2,7% SDIF Fees 2,6% 29% 28% 2,5% Depreciation 2,3% 51% 50% Administrative Expenses Staff Cos

  27. Slide 27: ROAE and ROAA

    ROAE ROAA 38,4% 3,2% 2,9% 28,8% 2,3% 26,7% 2,2% 24,3% 22,2% 2,0% 21,6% 20,7% 1,7% 1,7% 1,6% 17 0% 17,0% 1 5% 1,5% 1,4% 15,1% 11,9% 2006 2007 2008 2009 2010 Q1 2006 2007 2008 2009 2010 Q1 ROAE ROAE* ROAA ROAA* * Banking business (Excluding equity participations portfolio) Page 27

  28. Slide 28: Market Cap, Earnings and Payout Ratio

    Cap.. Comparison (TRY Market Cap (TRY mn .)) mn.) Earnings & Payout Ratio 32.7% 32.1% 36.1% 34.6% 22.088 23,2% 20.311 19.450 19 450 32.4%** 17.972 2.372 11.342 1,702 1 509 1,509 1,109 956 2006 2007 2008 2009 2010 Q1 635 Isbank is included in the following indices: • ISE‐100 • ISE‐30 2004 2005 2006 2

  29. Slide 29: Credit Ratings and Outlook

    Rating Outlook Rating Outlook Global Scale Long Term FC IDR BBB BBB‐ Stable Longg Term Counter Partyy Credit BB Positive Longg Term LC IDR BBB BBB‐‐ Stable Long Term Certificate of Deposits BB ‐ Short Term FC IDR F3 ‐ Short Term Counter Party Credit B ‐ Short Term LC IDR F3 ‐ Short Term Certificate

  30. Slide 30: Agenda

    Isbank at a Glance 5 Financial Highlights 9 Major Equity Participations 36 Page 30

  31. Slide 31: Credit Cards and Merchant Business

    15 different products for different customer segments 96,169 merchant firms and 184,481 chains are included in loyalty programme. The number of cards reached 7.7 million, 5 million of which are issued to Bank Bank’ss own customers. customers The first bank in Turkey which has made an agreement with

  32. Slide 32: Isbank dominates the mutual fund market

    Isbank dominates the market being the market market, leader in mutual funds. funds. Page 32

  33. Slide 33: Mutual Funds

    ... 29 types of mutual funds Mutual Funds (TRY (TRY mn.) mn.) Number of Investors designed d i d for f different diff t risk i k appetites.. appetites 665.492 6.776 6.710 646.754 552.346 582.249 590.000 5.140 5.158 4.523 2006 2007 2008 2009 2010 Q1 2006 2007 2008 2009 2010 Q1 Income From Funds (TRY

  34. Slide 34: Payroll Accounts and Automated Bill Payments

    ... supported by payroll accounts and bill p payment y Payroll y Accounts Automated Bill Payments y agreements.. agreements 6.000 5.281 3.472 2.917 6.750.571 6 354 057 6.354.057 2009 Q1 2010 Q1 2009 Q1 2010 Q1 Amount (TRY million) Amount (TRY million) Number of Payments Number of payroll accounts is

  35. Slide 35: Agenda

    Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 Page 35

  36. Slide 36: Major Equity Participations

    ...as one of the biggest ...as gg conglomerates in Turkey. Turkey. Page 36

  37. Slide 37: Sectoral Breakdown of Participations

    Sectoral Bre Breaakdown Financial Non‐Financial 48,8% 51,2% 9,0% 15,0% 15 0% , 12,9% Other Telecom Banks Insurance 22,8% Non‐financial Financial 27,3% Glass Financial Ins. TRY 4.8 48 billion 13,0% Listed Non ‐ Listed 32,6% , 67,4% As of March 2010 2010,, Isbank has 25 participations. TRY 4.8 Since t

  38. Slide 38: Sisecam Group General Information

    Isbank (64 %) General Information Market/Production Market/Production Shares (%) ™ A leading flat glass, glass glassware, glassware glass packaging, packaging soda Turkey2 Europe World3 ash and chromium chemicals producer in the domestic market. Flat Glass 67.0 12.6 3 3.7 ™ Backed by its vision, Şiş

  39. Slide 39: Sisecam Production Facilities

    The Group obtains efficiency and spreads its operationall riskk byb positioning its production facilities in the fast growing neighbouring countries countries.. Flat Glass Glassware Glass Packaging Chemicals 39

  40. Slide 40: Avea

    İşbank Group 18.63% Turk Telekom 81.37% Avea has been created through successful merger of Aria and Aycell in February 2004 2004.. Avea brand has been successfully launched in June 2004 2004.. After the merger merger,, due to the combination and integration of 2 GSM networks networks,, not only the

  41. Slide 41: Group Companies Summary

    Shareholders’ Field of Bank’s Direct Group Assets Market Group Company Equity Basis for Market Share Activity Share(%) Share (%) (USD 000) Share (%) (USD 000) Türkiye Sınai Kalkınma Bankası A.Ş. Investment Bank 40.52 50.10 4,678,819 731,812 25.53 Total Assets İşbank GmbH Banking 100.00 100.00 887,57

  42. Slide 42: Investor Relations Contacts

    Süleyman H. Özcan Head of Investor Relations Division Phone : + 90 212 316 16 02 E‐mail : suleyman. suleyman.ozcan@isbank ozcan@isbank..com com..tr Alper Turgal Assistant Manager of Investor Relations Division Phone : + 90 212 316 16 10‐ 10‐11 / 316 30 36 E‐mail : alper. alper.turgal@isbank turgal@i

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