Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR

Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — Investor Presentation (September 2012)

42 slides from Turkiye Is Bankasi Anonim Sirketi's investor presentation, Sep 30, 2012

  1. Slide 1: Isbank Investor Presentation

    ISBANK INVESTOR PRESENTATION ~ 2012-03

  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

    Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 Major Equity Participations 36 2

  4. Slide 4: Agenda: Financial Highlights

    Financial Highlights 9 Retail Bankingg 31 Major Equity Participations 36 3

  5. Slide 5: Isbank at a Glance: Ownership and Network

    FreeFloat Free Float 31.18%  Stocks are quoted at ISE and also traded at LSE in the form Ataturk Shares of GDR Isbank Pension Fund 28.09%  Largest stake owned by employees via pension fund (*) 40.73%  1,216 domestic branches country‐wide (Largest among private banks), and 18 foreign branches  4,

  6. Slide 6: Other Financial Services

    Other Financial Services Banking Services

  7. Slide 7: Market Share and Rank

    Market Share (%) Rank(2) 2012 Q3 Total Assets (1) 13.4 1st Loans(1) Total Loans 13.7 1st TRY Loans 12.6 1st FX Loans 16.7 2nd Consumer Loans(3) 11.9 1st Deposits(1) TRY Deposits 13.0 1st FX Deposits 15.3 1st Demand Deposits 15 5 15.5 1st Total Deposits 13.8 1st Retail Products(4) Volume of Debit Car

  8. Slide 8: Agenda: Financial Highlights

    Isbank at a Glance 5 Retail Banking 31 Major Equity Participations 36 7

  9. Slide 9: Total Assets, Loans, Deposits and Equity

    Total Assets (TRY mn mn.) .) Loans (TRY mn mn.) .) 98,185 166,847 91,621 161,669 131,796 64 232 64,232 113,223 97,552 47,610 48,335 2008 2009 2010 2011 2012 Q3 2008 2009 2010 2011 2012 Q3 Deposits (TRY mn mn.) .) Shareholders’’ Equity (TRY mn Shareholders mn.) .) 98,313 101,628 20,925 88,260 17,921

  10. Slide 10: Asset Composition

    (TRY mn.) 2011 2012 Q3 Change Asset Composition Cash & Banks 16,034 18,600 16% Cash & Banks 10% 11% Securities (Net) 42,778 37,829 ‐12% 26% 23% Securities Loans 91,621 98,185 7% Participations (Net) 6,275 7,101 13% Loans Fixed Assets (Net) 1,983 1,937 ‐2% 57% 59% Participations Other Assets 2,977 3,

  11. Slide 11: Loan Portfolio

    Loan Portfolio QoQ (TRY mn.) Loans / Deposits ‐ 93% 91% 97% 92% 98,222 98,185 66,253 66 253 65,203 65 203 31,969 32,983 2011 2012 Q3 TRY 2012 Q2 FX * 2012 Q3 Total Loans/Deposits Loans/Deposits (Adj.)* * 4% increase in FX loans when adjusted for the change in exchange rate. * TL securities issued ad

  12. Slide 12: Total Loans and Consumer Loans

    …52 52%% comprised of retail Total Loans Consumer Loans (TRY mn mn.) .) d SME loans and l loans. . 18,833 21,291 21% 22% Retail Loans General Purpose 7% 30% 50% 51% Consumer Loans 8% Auto Loans 22% 23% Consumer * Credit Cards 6% 6% Housing Loans SME** Retail Overdraft 51% 48% 42% 41% Corporate & Com

  13. Slide 13: NPL Ratio and Management of NPLs

    NPL Ratio Management of NPLs 84% 84% coverage ratio, ratio, above sector average… average… 0.7% 0.2% 0.1% ‐0.2% 0.0% 2.5% 487 483 2.1% 2.1% 1.9% 2.1% 342 221 182 190 1922 160 0 2 182 9 149 29 146 36 11 Q3 11 Q4 12 Q1 12 Q2 12 Q3 TRY mn. ‐41 ‐4 11 Q3 11 Q4 12 Q1 12 Q2 12 Q3 Coverage Additions to NPLs

  14. Slide 14: NPL Ratio by Loan Categories

    NPL Ratio by Loan Categories NPL Breakdown 5.2% 4.5% 1.5% 2.1% 2.1% 94% 96% 97% 1.4% 99% 98% Consumer* Credit Cards Total Loans 6% 4% 3% 1% 2% 2011 2012 Q3 2008 2009 2010 2011 2012 Q3 * Includes retail overdraft accounts. Restructured Other NPLs Performing Loan Groups (2012 Q3) 98.1% 1.9% I. Group L

  15. Slide 15: Breakdown of Securities Portfolio

    Breakdown of Securities Portfolio Total Portfolio TRY 42.8 FX Floating Discount & 40.4 3.3% Fixed 32.5 33.2 32.9% TRY Floating FX Discount 50.1% & Fixed 13.7% 10.3 7.2 5.5 4.0 2011 2012 Q3 TRY Securities (TRY bn.) FX Securities (TRY bn.) FX Securities * (USD bn.) Total Securities (TRY bn.) 69% of se

  16. Slide 16: Liabilities Composition

    (TRY mn.) 2011 2012 Q3 Change Liabilities Composition Deposits 98,313 101,628 3% Equity 11% 13% REPOs & Money Market 19,461 14,997 ‐23% 7% 2% 8% Other Funds Borrowed 11,148 11,093 ‐ 7% 3% 7% Securities Issued 3,781 5,538 46% Securities 12% 9% Issued Other 11,043 12,665 15% FFunds d Borrowed Equity 1

  17. Slide 17: Deposit Base

    l ... a clear i di t indicator off customer trust trust.. Deposit Base 98.3 101.6 88.3 59.6 60.3 62.8 38.0 38.9 62% 28.7 68% 18 6 18.6 20 2 20.2 21 7 21.7 62% 64% 2010 2011 2012 Q3 TRY Deposits (TRY bn.) FX Deposits (TRY bn.) FX Deposits * (USD bn.) Total Deposits (TRY bn.) * USD equivalent. 16

  18. Slide 18: Deposits and Market Shares

    Deposits QoQ (TRY mn.) Market Shares 15.7% 15.3% 13.4% 13 4% 14.2% 13 0% 13.0% 13.8% 101,628 101 628 99,433 58,019 62,762 41,414 38,866 TRY FX * Total 2011 2012 Q Q3 2012 Q2 2012 Q3 TRY Deposits FX Deposits Total Deposits * ‐6% decrease in FX deposits when adjusted for the change in exchange rate. D

  19. Slide 19: Demand Deposits

    make significant …make contribution to lower cost of Demand Deposits (TRY mn.) Share of Demand Deposits in Total Deposits funding. 2012 Q3 18,627 19,257 14,469 55% 54% 11,259 81,1% 8,788 64% 60% 18,9% 54% 45% 46% 40% 36% 46% Demand Deposits Other Deposits 2008 2009 2010 2011 2012 Q3 TRY FX 18

  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 149 billion. billion. 141,481 148,666 133,835 10,484 10,062 10 062 8,838 On‐Balance Shee 107,320 90,617 7,498 68% 6,158 69% et 66% 67% 70% 13% 9% 10% 14% Off‐Balance Sheet O 13% 3% 6% 6% 2008

  21. Slide 21: Capital Adequacy

    Capital Adequacy Regulatory Capital (TRY mn mn.) .) CAR supports supports balance sheet growth going forward… Basel II 21,531 20,546 19,263 18,851 18,631 18,252 18,160 7,206 7,183 16,319 6% 2% 2% 1% 9% 13.1% % 13.0% % 14.6 1 12.6% % 17 17 12.5% % 12.4% 14.2 14.2 % 1 14.1 1 13.9 11 Q3 11 Q4 12 Q1 12

  22. Slide 22: Operating Income Composition (Q3 2012)

    Change (TRY mn.) 2012 Q2 2012 Q3 QoQ Operating Operati ng Income Composition Net Interest Income 1,429 1,515 6% Net Fees & Commissions 429 406 ‐6% NII Net Trading Gains/Losses 194 ‐11 ‐‐‐ 54% 69% Net Commissions Dividends Received 323 0 ‐‐‐ Released l d Provisions ii 227 247(1) 9% 16% Other Income G

  23. Slide 23: Operating Income Composition (9M 2012)

    Change (TRY mn.) 2011 9M 2012 9M YoY Operating Operat ing Income Composition Net Interest Income 3 247 3,247 4 256 4,256 31% Net Fees & Commissions 1,026 1,205 18% NII Net Trading Gains/Losses 28 264 +++ 56% 61% Dividends Received 556 418 ‐25% Net Commissions Released Provisions 749 702((1)) ‐6% 6%

  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 (TRY thousand) 2011 9M 2012 9M Change Non‐Cash Loans 93,552 134,417 44% Credit Appraisal 123,683 177,861 44% 1,363 Mutual Fund Man. Man & Other In

  25. Slide 25: Net Interest Margin

    NIM Adj. NIM * 4.53% 4 53% 5.25% 3.85% 4.11% 4.77% 3.50% 3.83% 3.48% 2011 2012 Q3 2011 2012 Q3 includes reserves at Central Bank excludes reserves at Central Bank includes reserves at Central Bank excludes reserves at Central Bank * Adjusted j for Securities Tradingg Gains / Losses and Foreign g Exc

  26. Slide 26: Cost / Income and Cost Structure

    Cost / Income Income** Cost vs. Income (TRY mn mn.) .) 45.2% 42.6% 42.9% 40.6% 6,962 34.0% 5,822 2,589 3,100 2008 2009 2010 2011 2012 Q3 2011 9M 2012 9M Cost Income Cost vs. Assets Cost Structure 6% 6% 4% 16% Other 2.7% 2.7% 4% 29% 6% SDIF Fees 29% Depreciation 54% 46% 2.4% 2.4% Administrative Expen

  27. Slide 27: ROAE and ROAA

    ROAE* ROAA* 29.1% 28.7% 2.4% 2.3% 2.2% 23 9% 23.9% 22.6% 2.1% 2.0% 21.0% 20.4% 1.8% 1.8% 19.9% 1.7% 16.8% 1.5% 1.5% 15.6% 15 2% 15.2% 2008 2009 2010 2011 2012 Q3 2008 2009 2010 2011 2012 Q3 ROAE ROAE** ROAA ROAA** * All calculations are based on trailing four quarters’ data. ** Banking business (Exc

  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% 23.2% 23.2% 20.3% 25,452 32.4%** 24,836 19,450 2,982 14,963 2,667 2,372 11,342 1,702 1,509 1,109 956 2008 2009 2010 2011 2012 Q3 635 Isbank is included in the following indices: • ISE‐100 2004 2005 2006

  29. Slide 29: Credit Ratings and Outlook

    Rating Outlook Rating Outlook Global Scale Long Term FC IDR BBB Stable Longg Term Counter Partyy Credit BB Stable Long Term LC IDR 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 of Deposits B

  30. Slide 30: Agenda: Retail Banking

    Isbank at a Glance 5 Financial Highlights 9 Major Equity Participations 36 29

  31. Slide 31: Credit Cards

    33 different products for different customer segments 196,189 Sales Points and 260,567 chains are included İn loyalty programme. The number of cards reached 8.8 million, 5.9 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 is the market leader in mutual fund business

    Isbank is the market leader in mutual fund business business.. 31

  33. Slide 33: Mutual Funds

    ... 32 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 7,090 801,402 840,670 6,776 6,430 6,580 646,754 693,003 5,165 590,000 2008 2009 2010 2011 2012 Q3 2008 2009 2010 2011 2012 Q3 Income From Funds (TRY (TRY mn.) mn

  34. Slide 34: Payroll Accounts and Automated Bill Payments

    ... supported by payroll accounts and bill Payroll y Accounts Automated Bill Payments y payment agreements 19,045 16,216 17,107 14 748 14,748 5,983,197 5,679,570 2011 Q3 2012 Q3 2011 Q3 2012 Q3 Amount (TRY million) Amount (TRY million) Number of Active Payments Number of payroll accounts is 1,167,79

  35. Slide 35: Agenda: Major Equity Participations

    Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 34

  36. Slide 36: One of the biggest conglomerates in Turkey

    ...as one of the biggest ...as gg conglomerates in Turkey. Turkey. 35

  37. Slide 37: Sectoral Breakdown of Participations

    Sectoral Bre Breaakdown Financial Non‐Financial 46.6% 53.4% Telecom Other 7.7% 7 7% Banks 11.0% 17.6% Glass Insurance Non‐financial Financial 34.7% 18.2% Financial Fi i l Ins. I TRY 4.8 48 billion 10.8% Non ‐ Listed Listed 30.2% 69.8% As of 30 September 2012 2012,, Isbank has 22 participations. TRY

  38. Slide 38: Şişecam Group

    Isbank (65%) General Information Market/Production Market/Production Shares (%) *  A leading flat glass, glassware, glass packaging, glass Turkey Europe2,3 23 World3 fibre, soda ash and chromium chemicals producer in the Flat Glass 73.0 13.5 3.8 domestic market.  Backed by its vision, Şişecam expa

  39. Slide 39: Şişecam Production Facilities

    The Group obtains efficiency and spreads its operational risk by positioning its production facilities in the fast growing neighbouring countries.. * countries Flat Glass Glassware Glass Packaging Chemicals and Mining • Flat glass investment in Russian Federation is planning to be completed by 2013.

  40. Slide 40: Avea

    İşbank* 10.0035% Turk Telekom 89.9965% Avea has been created through the merger of Aria and Aycell in February 2004 2004.. After the merger, merger, due to the integration of 2 GSM networks, networks, not only the coverage and efficiency have increased significantly, significantly, but also substant

  41. Slide 41: Subsidiaries and Affiliates

    Assets Shareholders’ Market Field of Bank’s Direct Risk Group Equity (USD 000) Company Name (USD 000) Share (%) Basis for Market Share Activity Share(%) Share (%) (3) (3) (3) Türkiye Sınai Kalkınma Bankası A.Ş. Investment Bank 40.52 50.00 5,432,623 830,766 19.6 Total Assets İşbank AG Banking 100.00

  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 ‐ 316 95 42 E‐mail : alper. alper.turgal@isbank turgal@isbank..

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