Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR
Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — FY2011 Earnings Presentation
20 slides from Turkiye Is Bankasi Anonim Sirketi's earnings presentation, Dec 31, 2011
Slide 1: Isbank Earnings Presentation 2011
ISBANK EARNINGS PRESENTATION 2011
Slide 2: Macroeconomic Environment
Macroeconomic Environment A mild slowdown in growth • Turkish economy, maintained its strong momentum in 2011 despite the measures taken by the policy makers against the worsening global outlook. outlook • 2011 GDP growth is estimated to be 8.3%. • GDP growth rate is expected to slow down to 3.5% in
Slide 3: Period's Highlights
Period’s Highlights Loan Growth & Asset Quality • The bank sustained better loan growth performance compared to the sector on annual (%43 vs %30) and quarterly (%7 vs %3) basis. b i • Loan growth driven by both retail and non‐retail segments • 93% L/D ratio still below private banks’ average, 98% at
Slide 4: Market Shares
Market Shares Largest Private Bank… Market Shares (%) (1) Rank(2) 2010 2011 2010 2011 Total Assets 13.7 13.9 1st 1st Total Loans 12.8 14.1 2nd 1st TL Loans 12 3 12.3 13 0 13.0 1st 1st FX Loans 14.2 16.6 3rd 2nd Consumer Loans(3) 11.5 11.6 1st 1st Total Deposits 14.4 14.2 1st 1st TL Deposits 14.0 13.
Slide 5: Asset Structure
Asset Structure Assets (TL mn.) 2010 2011 Q3 2011 ∆ QoQ ∆ YTD Cash & Banks 11,708 19,831 16,034 ‐19% 37% Securities ((Net)) 45,437 , 42,365 , 42,778 , 1% ‐6% Loans 64,232 85,433 91,621 7% 43% Participations (Net) 6,264 6,984 6,275 ‐10% ‐ Fixed Assets (Net) 1,918 1,952 1,983 2% 3% O h Assets Other A
Slide 6: Loan Portfolio
Loan Portfolio Loans %43 %7 %34 91.6 %7 85.4 %61 76.8 70.5 %33 64.2 54.7 58.8 %7 50.8 50 8 43.8 47.7 %6 30.7 32.8 26.0 20.4 22.8 13.2 14.8 16.2 16.5 17.5 (1) TL Loans (TL bn.) FX Loans (TRY bn.) FX Loans (USD bn.) Total Loans (TRY bn.) 2010 2011 Q1 2011 Q2 2011 Q3 2011 Loans/Deposits • Market leader
Slide 7: Loan Portfolio
Loan Portfolio Loans (TL mn.) 2010 2011 Q3 2011 ∆ QoQ ∆ YTD Total Loans 64,232 85,433 91,621 7% 43% TL Loans 43,827 54,750 58,804 7% 34% Retail Loans 19,685 23,956 25,457 6% 29% Housing Loans 6 279 6,279 7 511 7,511 7 943 7,943 6% 27% Auto Loans 882 984 1,149 17% 30% GPLs 7,241 9,037 9,741 8% 35% Cr
Slide 8: Loan Composition
Loan Composition Currency Mix Loan Composition ‐ Total Loans 31 8% 31.8% 35 9% 35.9% 35 8% 35.8% 22.4% 20.5% 20.6% 8.2% 7.5% 7.2% 22.5% 21.3% 21.6% 68.2% 68 2% 64.1% 64.2% 46.9% 50.7% 50.6% 2010 2011 Q3 2011 2010 2011 Q3 2011 (1) (2) TL FX Corporate & Commercial SME Credit Cards Consumer Loan Compos
Slide 9: Asset Quality
Asset Quality NPL Ratio ‐150bps • Continuous improvement in asset quality ‐40bps 3.6% • Net NPL formation is negative, with 3.2% 2 8% 2.8% 2.5% recoveries exceeding additions. 2.1% • 100% provisioning policy 2010 11 Q1 11 Q2 11 Q3 2011 • 77 bps of gross cost of risk(2) in 2011 Management of NPLs • 3
Slide 10: Securities Portfolio
Securities Portfolio Securities (TL mn.) 2010 2011 Q3 2011 ∆ QoQ ∆ YTD Total Securities 45,437 42,365 42,778 1% ‐6% TL Securities 35 578 35,578 32 159 32,159 32 452 32,452 1% ‐9% 9% FX Securities 9,859 10,207 10,326 1% 5% FX Securities (USD mn.) 6,402 5,502 5,492 0% ‐14% Composition of Securities Po
Slide 11: Liabilities Structure
Liabilities Structure Liabilities (TL mn.) 2010 2011 Q3 2011 ∆ QoQ ∆ YTD Deposits 88,260 95,544 98,313 3% 11% REPOs & Money Market 10,159 20,364 19,461 ‐4% 92% Funds Borrowed (1) 8,042 14,676 14,930 2% 86% Other 8,321 11,539 11,044 ‐4% 33% Equity 17,014 17,882 17,921 0% 5% Total Liabilities 131,796
Slide 12: Deposits
Deposits Deposits (TL mn.) 2010 2011 Q3 2011 ∆ QoQ ∆ YTD Total Deposits 88,260 95,544 98,313 3% 11% TL Deposits 59,591 59,636 60,332 1% 1% TL Saving Deposits 38,274 40,656 40,664 0% 6% TL Commercial Deposits 12,068 10,741 11,678 9% ‐3% Other TL Deposits 9,249 8,239 7,990 ‐3% ‐14% FX Deposits 28,669
Slide 13: Sufficient Capitalization
Sufficient Capitalization Capital Adequacy Ratio • Capital adequacy ratio is well above the regulatory g y limit. 17.5% 16.6% • Sufficient capital for growth in 2012 16.1% 15.7% 14.7% 14.6% 14.3% 14.1% 3.1% 3.0% 1 1 13 1 13 1 2010 11 Q1 11 Q2 11 Q3 2011 CAR Tier I Ratio Free Equity q y vs. Total Sha
Slide 14: Income Statement Highlights (YoY)
Income Statement Highlights (YoY) Change (TL mn.) 2010 2011 YoY • NII maintained despite Interest Income 9,798 10,898 11% declining margins Interest Expense 5,216 6,336 21% Net Interest Income 4,582 4,562 ‐ • Significant growth in net fees Net Fees & Commissions 1,236 1,429 16% & commissions Net Tra
Slide 15: Commissions Income Performance
Commissions Income Performance Fees and Commissions Received (Gross) Gross Fees & Commissions Income (TL mn.) (TL mn.) 2010 2011 Change Non‐Cash Loans 118 134 14% %18 Credit Appraisal 125 193 54% Mutual Fund Man. & Other Inv. 1,594 293 244 ‐17% Acc. Fees 1,352 Credit Cards 457 608 33% Fund Transfer
Slide 16: Margins
Margins NIM (Cumulative) ( l i ) • Slight recovery in Q4 4.56% 4.35% 4 12% 4.12% 3.80% 3.84% 3.77% 3.85% • NII sustained despite falling NIM on YoY 3.50% 3.42% 3.50% basis • Upward repricing in loans and selective TL deposit growth with a cost oriented approach helped to stabilise the NIM. 2010 0 0
Slide 17: Profitability and Efficiency Ratios
Profitability and Efficiency Ratios ROAE(1) ROAA(1) 2 4% 2.4% 2.2% 28.6% 1.7% 1.8% 19.9% 20.3% 1.5% 16 3% 16.3% 15.2% 1.2% 13.7% (3) (3) 2010 2011 Q3 2011 2010 2011 Q3 2011 (2) (2) ROAE ROAE ROAA ROAA Cost / Income vs Assets(1) Cost vs. 44.5% 42.6% 2.9% 40 6% 40.6% 2 6% 2.6% 2 6% 2.6% 2 6% 2.6% 2.4%
Slide 18: 2012 Expectations
2012 Expectations 2011 2012 Expectations E t ti Loans Growth 43% 15% ‐ 17% Deposits Growth 11% 10% ‐ %12 Share of Securities in Total Assets 26.5% Loans / Deposits 93 2% 93.2% 95% ‐ 100% NPL Ratio 2.1% ≤ 2% CoR (gross) 77 bps NIM 3.5% Net Fees & Commissions Growth 16% 10% + OPEX Growth 9% CPI + Net
Slide 19: Appendix – Quarterly Income Statement Highlights
Appendix – Quarterly Income Statement Highlights (TL mn.) 2011 2011 2011 2011 Change Q1 Q2 Q3 Q4 QoQ Interest Income 2,435 2,595 2,764 3,103 12% Interest Expense 1,317 1,519 1,712 1,788 4% Net Interest Income 1,118 1,076 1,052 1,315 25% Net Fees & Commissions 304 364 358 403 13% Net Trading Gains/Lo
Slide 20: Disclaimer
Disclaimer The information in this document has been obtained by Türkiye İş Bankası A.Ş. (“Isbank”) from sources believed to be reliable, however, Isbank cannot guarantee the accuracy, completeness, or correctness off such information. This document has been issued for information purposes only. The
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