Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — Q2 2024 Earnings Presentation
24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2024
Slide 1: 2Q24 Earnings Presentation
2Q24 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
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Slide 3: Asset Growth
2Q24 Earnings Presentation Total assets increased by 8.1% QoQ with the support of strong FX > FX LCR is at 238%, well above loan demand the regulatory limit of 80%. Asset Mix (%) Asset Growth Loans Securities Bank Placements CBRT Receivables Cash YoY 33.9% QoQ 8.1% Liq. Assets Other Assets Total Ass
Slide 4: CPI-Linkers continued to support profitability during the first half of the year
2Q24 Earnings Presentation CPI-Linkers continued to support profitability during the first half of the year Total Securities Portfolio (TRY billion) Securities Classification (TRY billion)(*) Total Securities / Total Assets (%) Fixed Rate (FX) Other Floating Rate CPI Linkers Fixed Rate (TRY) 25.3 26
Slide 5: Increasing FX loan demand balanced the contracting TRY loan growth
2Q24 Earnings Presentation Increasing FX loan demand balanced the contracting TRY loan growth (TRY billion)(a) 10.5% Total Loans 2.3% HALKBANK B. Sector(b) YoY YoY 10.5% 38.4% 1,270.9 1,299.9 QoQ QoQ 1,176.4 1,210.2 1,224.9 2.3% 7.1% Business Loans 482.9 YoY 21.7% TRY Loans 420.3 441.9 465.7 511.4 Q
Slide 6: Floating right exercise on the Cooperative loans also supported profitability
2Q24 Earnings Presentation Floating right exercise on the Cooperative loans also supported profitability Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 4% SME 7% FX SME 48% Commercial 3% 25.9% Corporate 35% Corporate 90% TRY 74.1% CGF 7% Retail 12% Cooperative 39%(b) Secto
Slide 7: Asset quality remains resilient despite accelerated rate hike cycle
2Q24 Earnings Presentation Asset quality remains resilient despite accelerated rate hike cycle NPL Portfolio (TRY million) NPL Coverage (%) 20,902 83.2 81.2 81.6 19,268 79.1 74.6 17,911 18,574 18,540 Jun-23 Sep-23 2023 Mar-24 Jun-24 Jun-23 Sep-23 2023 Mar-24 Jun-24 Loans under Close Watch (TRY milli
Slide 8: NPL ratio by segments
2Q24 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (*) Corporate - Commercial (%) Consumer Loans (%) 3.0 3.0 2.9 2.9 2.8 2.9 3.0 2.8 2.8 2.6 1.6 1.5 1.5 1.4 1.3 1.3 1.4 1.4 1.3 1.2 Jun-23 Sep-23 2023 Mar-24 Jun-24 Jun-23 Sep-23 2023 Mar-24 Jun-24 SME Loans (%) Credit Cards (%)
Slide 9: Resilient macro economic indicators reflected positively in our models which impacted our provisioning levels
2Q24 Earnings Presentation Resilient macro economic indicators reflected positively in our models which impacted our provisioning levels Provisions and Reversals (TRY million) Net Cost of Risk (bps) (Cumulative) Total Specific Quarterly (TRY million) Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 55 S1 Provisions -2
Slide 10: Closing CBRT swap funding facility increased our dependency on deposits
2Q24 Earnings Presentation Closing CBRT swap funding facility increased our dependency on deposits Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D 88.6% 89.2% 89.4% 89.9% 90.6% Deposits Marketable Funds Borrowed Securities Issued Interbank Money Market Shar
Slide 11: De-dollarisation trend is visible in the deposit market
8 -6.36 3 2Q24 Earnings Presentation De-dollarisation trend is visible in the deposit market HALKBANK B. Sector(b) YoY 24.1% 21.1% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ -9.7% -8.8% YoY 39.5% 40.9% YoY 50.6% 56.6% in USD YoY -1.3% -3.6% QoQ 9.0% 6.8% QoQ 24.2% 19.3% terms QoQ -10.9% -10.0%
Slide 12: Nearly two-thirds of our total deposits are comprised of TRY deposits
2Q24 Earnings Presentation Nearly two-thirds of our total deposits are comprised of TRY deposits Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%)(b) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 22.5% 24.1% 78.2% 78.1% 77.5% 78.7% 21.8% 2
Slide 13: Cost – Yield – Spread
2Q24 Earnings Presentation Cost – Yield – Spread Blended Cost - Yield - Spread (%) Spreads (%) Yield on Loans Cost of Deposits(*) Spread TRY Core FX Core Blended Core 7.5 6.7 6.0 3.8 6.3 28.7 32.8 3.4 5.9 24.2 13.2 16.4 3.5 -0.1 0.4 3.5 5.9 6.3 -0.1 0.4 (13.4) (16.0) (20.8) -3.3 (22.8) (26.6) -5.2 -
Slide 14: Net F&C increased by 19.4% QoQ and by 127.5% YoY
2Q24 Earnings Presentation Net F&C increased by 19.4% QoQ and by 127.5% YoY Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly Swap adj. (QoQ) Swap adj. (YtD) -26.4% 13,246 9,751 3.1 2.8 2.9 2.4 11,171 2.7 9,489 2.5 4,837 2.3 2.9 1.3 56,745 82,680 116,707 136,0
Slide 15: Details of profitability metrics
2Q24 Earnings Presentation Details of profitability metrics Total Operating Revenues (TRY million)(a) Q2-24 Revenue Walk (TRY million) 16% 2,987 9,573 14,693 14,225 9,751 12,711 13,506 (8,336) 9,987 3,349 3,440 (13,884) NII Net F&C Income Net Trading Income Total Provisions Net Income (Q2-24) Other
Slide 16: State Saving Plan also enabled OPEX contraction
2Q24 Earnings Presentation State Saving Plan also enabled OPEX contraction Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 39.9% -11.6% 2.74 15,698 2.48 13,884 2.23 2.19 2.05 11,455 11,366 9,923 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Cost/Income (%) Brea
Slide 17: Solvency Ratios
2Q24 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Details on Capital Ratio Cons. Basel III Uncons. Basel III (TRY mn) Jun-24 Jun-24 13.7 13.2 14.3 13.2 13.1 Credit Risk Base Amount (CRBA) 1,249,426 1,188,004 Market Risk Base Amount (MRBA) 109,151 92,437 12.1 12.8
Slide 18: Details of digital customer base
2Q24 Earnings Presentation Details of digital customer base Active Digital Customers by Types (Million) # of Total Active Digital Customers(a) 5% 6.2 6.3 6.4 6.3 6.0 # of active digital banking customers increased 5% YoY and reached 6.3 million Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Digital Transactions
Slide 19: Branch Network – Human Resources
2Q24 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branches Deposits/Branches ATM 14% Automatic Payment 3% 1,988.6 Call Center 4% Branch 2% 1,745.4 1,822.3 1,659.9 Internet Banking 4% 1,440.3 Mobile 1,13
Slide 20: Annex
2Q24 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) H123 H124 Total Assets 2,611,039 9.3 Loan Growth (YtD, %) 32.0 18.6 Loans (a) 1,299,926 9.4 Deposit Growth (YtD, %)(c) 32.1 11.5 TRY Loans 962,782 10.8 LDR (%) 83.2 81.6 FC Loans 337,144 6.8 NPL (%) 1.7
Slide 21: Balance Sheet
2Q24 Earnings Presentation Balance Sheet In TRY million H1-23 2023 Mar-24 H1-24 QoQ (%) YtD (%) YoY (%) Cash and Balances Held with the Central Bank(a) 192,165 273,730 351,340 484,573 37.9 77 152.2 Banks & Money Market(b) 11,065 15,824 14,581 23,683 62.4 49.7 114.0 Securities(b) 493,729 584,393 653,
Slide 22: Income Statement
2Q24 Earnings Presentation Income Statement In TRY million H1-23 H1-24 YoY (%) Q2-23 Q1-24 Q2-24 QoQ (%) YoY (%) Interest Income 105,604 297,307 181.5 56,745 136,020 161,286 18.6 184.2 On Loans 63,935 196,687 207.6 35,968 89,965 106,722 18.6 196.7 On Securities 41,040 85,228 107.7 20,487 41,019 44,2
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Slide 24: For further information please contact halkbank.IR@halkbank.com.tr
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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