Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — 9M 2019 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2019

  1. Slide 1: 9M 2019 Earnings Presentation

    9M 2019 Earnings Presentation DISTINGUIS H ED PROFIT A BLE RESI L IENT RIS K CONSCIOUS RELIA B LE SUST A INABLE NATIO N WIDE MAR K ETMAKER BRSA Bank Only

  2. Slide 2: Slide 2

  3. Slide 3: Asset Growth

    9M 2019 Earnings Presentation Highly liquid balance sheet structure FX LCR is at 375%, well above regulatory limit of 80%. Asset Mix (%) Asset Growth Loans Securities Bank Placements CBRT Receivables Cash YoY 14.5% QoQ 3.4% Liq. Assets Other Assets Total Asset Growth (TRY billion) 14.5% 66.3% 84.7%

  4. Slide 4: Local currency and fixed rate dominant securities portfolio

    9M 2019 Earnings Presentation Local currency and fixed rate dominant securities portfolio Total Securities Portfolio (TRY billion) Securities Classification (TRY billion)(*) Total Securities / Total Assets (%) Other Floating Rate CPI Linkers 23.1 21.7 Fixed Rate (FX) Fixed Rate (TRY) 81.2 82.0 18.9

  5. Slide 5: Growing market share in a less competitive environment

    9M 2019 Earnings Presentation Growing market share in a less competitive environment CGF Utilization (TRY Bn) Current loan amount Jun-19 24.6 Sep-19 23.6 (TRY billion)(a) 10.2% Total Loans 5.5% HALKBANK B. Sector(b) YoY YoY 285.3 Commercial Loans 10.2% -2.1% 270.3 QoQ QoQ 15.6 YoY 9.0% 259.0 QoQ 4.7

  6. Slide 6: Well-diversified & well-collateralized loan portfolio

    9M 2019 Earnings Presentation Well-diversified & well-collateralized loan portfolio Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 5% FX SME 3.3% Commercial 1.3% 29.7% SME 39% Corporate 25.0% Corporate 39% CGF 17% TRY 70.3% Cooperative 36%(b) Retail 17% Sectoral Breakdown

  7. Slide 7: Below sector NPL ratio maintained

    9M 2019 Earnings Presentation Below sector NPL ratio maintained NPL Portfolio (TRY million) NPL Coverage (%) 11,524 13,910 78.7 73.7 73.4 9,230 63.4 8,528 56.5 7,175 Sep-18 2018 Mar-19 Jun-19 Sep-19 Sep-18 2018 Mar-19 Jun-19 Sep-19 Loans under Close Watch (TRY million) NPL/Total Loans (%) Loans unde

  8. Slide 8: NPL ratio by segments

    9M 2019 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) Consumer Loans (%) 5.0 5.1 5.0 4.7 4.9 4.0 3.5 3.9 2.7 2.7 2.7 2.7 2.8 2.8 2.4 3.1 2.5 2.6 2.5 2.2 Sep-18 2018 Mar-19 Jun-19 Sep-19 Sep-18 2018 Mar-19 Jun-19 Sep-19 SME Loans (%) Credit Cards (

  9. Slide 9: YtD cost of risk at 148 bps

    9M 2019 Earnings Presentation YtD cost of risk at 148 bps Provisions and Reversals (TRY million) Net Cost of Risk (bps) Provision Reversals S1 Provisions S2 Provisions S3 Provisions Provision Reversals S1 Provisions S2 Provisions S3 Provisions 156 72 111 23 114 353 134 81 23 1,369 54 18 56 83 247 20

  10. Slide 10: Improving LDR trends

    9M 2019 Earnings Presentation Improving LDR trends Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 85.6% 84.7% 86.1% 86.3% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity 121.1 FX 43.7% 43.1% 45.5% 44.4% Othe

  11. Slide 11: Expanding deposit base with declining costs

    8 -6.36 3 9M 2019 Earnings Presentation Expanding deposit base with declining costs HALKBANK B. Sector(b) YoY 33.2% 8.9% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 1.6% -0.5% YoY 18.8% 9.1% YoY 7.8% 9.3% in USD YoY 41.6% 15.8% QoQ 7.7% 3.5% QoQ 14.3% 8.4% terms QoQ 2.9% 0.8% Total Deposits TRY

  12. Slide 12: Demand deposits gaining further ground, up 31% YoY

    9M 2019 Earnings Presentation Demand deposits gaining further ground, up 31% YoY Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 16.3% 14.7% 17.6% 17.3% 83.7% 85.3% 82.7% 82.4% FX 49% 31.4% 2

  13. Slide 13: Steady enhancement in core spread

    9M 2019 Earnings Presentation Steady enhancement in core spread Cost of Deposits (%) Spreads (%) On Loans On Securities 11.6 9.8 8.5 9.3 9.0 8.8 4.8 4.7 4.4 3.6 4.4 4.3 3.6 3.3 2.0 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Yield on Loans (%)(a) Yield on Securities (%) 13.6 13.1 13.

  14. Slide 14: Details on profitability metrics

    9M 2019 Earnings Presentation Details on profitability metrics Core Operating Revenues (TRY million)(a) Net Income (TRY million) 42.4% 18.2% 3,532 2,988 317 310 308 303 305 2,481 2,516 2,344 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 RoE (%) RoA (%) 0.9 0.7 11.0 9.3 0.3 0.3 0.3 4.3

  15. Slide 15: Boosted core revenues

    9M 2019 Earnings Presentation Boosted core revenues Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly 40.8% 24.3% 2.9 3.0 1,953 2,268 2,819 2.8 2,002 1,728 2.6 2.6 2.6 2.1 10,072 11,793 10,743 12,149 12,512 2.4 2.4 (8,070) (9,840) (9,015) (9,881) (9,693) 2.1 Q

  16. Slide 16: OPEX rose on base effect, disciplined approach mirrored in low OPEX/Assets

    9M 2019 Earnings Presentation OPEX rose on base effect, disciplined approach mirrored in low OPEX/Assets Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 27.6% 19.0% 1,669 4,581 1.5 1.6 1.6 1.5 1,609 1.4 1,527 1,385 1,308 3,851 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 9M-18 9M-19 Sep-18

  17. Slide 17: Solvency Ratios

    9M 2019 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Basel III 14.9 14.6 (TRY mn) Sep-19 13.8 14.2 13.0 Credit Risk Base Amount (CRBA) 287,100 11.4 11.8 10.7 11.4 Market Risk Base Amount (MRBA) 5,080 10.0 Operational Risk Base Amount (ORBA) 18,626 Total Risk Weig

  18. Slide 18: Branch Network – Human Resources

    9M 2019 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branch Deposits/Branch Internet Automatic Banking 11% Payment 5% 296.6 279.9 268.1 ATM 30% 253.7 286.3 266.2 Mobile 251.9 Banking 40% 243.9 Call Cent

  19. Slide 19: Annex

    9M 2019 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) 9M-18 9M-19 Total Assets 443,499 10.4 Loan Growth (YtD, %) 23.3 5.8 Loans (a) 285,323 11.3 Deposit Growth (YtD, %) (c) 26.1 15.0 TRY Loans 200,667 12.9 LDR (%) 121.1 107.2 FC Loans 84,655 8.7 NPL (%)

  20. Slide 20: Balance Sheet

    9M 2019 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million Sep-18 2018 Jun-19 Sep-19 Change % Change% Change% Cash and Balances Held with the Central Bank(a) 29,802 34,957 34,212 32,642 (4.6) (6.6) 9.5 Banks & Money Market(b) 7,753 5,141 2,827 3,646 29.0 (29.1) (53.0) Securities(b) 73,31

  21. Slide 21: Income Statement

    9M 2019 Earnings Presentation Income Statement QoQ YoY In TRY million Sep-18 Sep-19 YoY% Q3-18 Q2-19 Q3-19 Change% Change% Interest Income 24,878 35,403 42.3 10,072 12,149 12,512 3.0 24.2 On Loans 20,283 27,438 35.3 8,046 9,297 9,701 4.3 20.6 On Securities 4,068 7,505 84.5 1,800 2,680 2,697 0.6 49.8

  22. Slide 22: Notes

    9M 2019 Earnings Presentation Notes Investor Relations 20 www.halkbank.com.tr

  23. Slide 23: Slide 23

  24. Slide 24: 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

Türkiye Halk Bankası A.Ş. — 9M 2019 Earnings Presentation on 6ix