Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR

Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — H1 2012 Earnings Presentation

20 slides from Turkiye Is Bankasi Anonim Sirketi's earnings presentation, Jun 30, 2012

  1. Slide 1: Isbank Earnings Presentation 2012 H1

    ISBANK EARNINGS PRESENTATION 2012 H1

  2. Slide 2: Macroeconomic Environment

    Macroeconomic Environment Mild economic slowdown continues Rebalancing became more evident GDP Growth (quarterly, yoy) Current Account Deficit and Energy Imports 16.0 90.0 (12 months cumulative, $ billion) 8.0 60.0 CAD 0.0 Energy Imports -8.0 30.0 -16.0 0.0 -24.0 May-09 May-10 May-11 May-12 Jan-09 S

  3. Slide 3: Period's Highlights

    Period’s Highlights Loans & Asset Quality • Market share in total loans maintained with increased TL loans market share (up by 40 bps QoQ); share of loans in total assets increased to 59.3%. • Sound asset quality has been maintained, NPL ratio decreased to 1.9%, net CoR remained flat. • The growth i

  4. Slide 4: Market Shares

    Market Shares Largest Private Bank… Market Shares (%) (1) Rank (2) 2011 2012 Q2 2011 2012 Q2 Total Assets 13.9 13.7 1st 1st Total Loans 14.1 14.0 1st 1st TL Loans 13.0 13.2 1st 1st FX Loans 16.6 16.2 2nd 2nd Consumer Loans(3) 11.6 11.8 1st 1st Total Deposits 14.2 13.8 1st 1st TL Deposits 13.4 12.6 1

  5. Slide 5: Asset Structure

    Asset Structure Assets (TL mn.) 2011 2012 Q1 2012 Q2 ∆ QoQ ∆ YtD Cash & Banks 16,034 16,028 15,477 -3.4% -3.5% Securities (Net) 42,778 41,745 40,389 -3.2% -5.6% Loans 91,621 93,038 98,222 5.6% 7.2% Participations (Net) 6,275 7,203 6,980 -3.1% 11.2% Fixed Assets (Net) 1,983 1,941 1,927 -0.8% -2.8% Ot

  6. Slide 6: Loan Portfolio

    Loan Portfolio Loans 27.9% 5.6% 30.5% 98.2 9.6% 91.6 93.0 85.4 22.9% 76.8 66.3 9.9% 58.8 60.4 -1.9% 50.8 54.7 -3.0% 30.7 32.8 32.6 32.0 26.0 16.2 16.5 17.5 18.3 17.8 (1) TL Loans (TL bn.) FX Loans (TL bn.) FX Loans (USD bn.) Total Loans (TL bn.) 2011 Q2 2011 Q3 2011 2012 Q1 2012 Q2 Loans/Deposits •

  7. Slide 7: Loan Portfolio

    Loan Portfolio Loans (TL mn.) 2011 2012 Q1 2012 Q2 ∆ QoQ ∆ YtD Total Loans 91,621 93,038 98,222 5.6% 7.2% TL Loans 58,804 60,434 66,253 9.6% 12.7% Retail Loans 25,457 26,090 27,858 6.8% 9.4% Housing Loans 7,943 8,180 8,510 4.0% 7.1% Auto Loans 1,149 1,169 1,249 6.9% 8.8% GPLs 9,741 9,956 10,705 7.5%

  8. Slide 8: Loan Composition

    Loan Composition Currency Mix Loan Composition - Total Loans 35.8% 35.0% 32.5% 20.6% 20.7% 20.8% 7.2% 7.3% 7.5% 21.6% 22.9% 22.3% 64.2% 65.0% 67.5% 50.6% 49.0% 49.3% 2011 2012 Q1 2012 Q2 2011 2012 Q1 2012 Q2 (1) (2) TL FX Corporate & Commercial SME Credit Cards Consumer Loan Composition - TL Loans L

  9. Slide 9: Asset Quality

    Asset Quality NPL Ratio -86 bps • High asset quality sustained. -19 bps • Net CoR(2) remained at 7 bps. 2.8% • 100% provisioning policy 2.5% 2.1% 2.1% 1.9% • 24% collection rate(3) in Q2 2012 11 Q2 11 Q3 2011 12 Q1 12 Q2 Management of NPLs NPL Sales (TL thousand) Period Amount Revenue 0.2% 0.1% 11 Q

  10. Slide 10: Securities Portfolio

    Securities Portfolio Securities (TL mn.) 2011 2012 Q1 2012 Q2 ∆ QoQ ∆YtD Total Securities 42,778 41,745 40,389 -3.2% -5.6% TL Securities 32,452 33,667 33,235 -1.3% 2.4% FX Securities 10,326 8,078 7,154 -11.4% -30.7% FX Securities (USD mn.) 5,492 4,538 3,974 -12.4% -27.6% Composition of Securities Po

  11. Slide 11: Liabilities Structure

    Liabilities Structure Liabilities (TL mn.) 2011 2012 Q1 2012 Q2 ∆ QoQ ∆ YtD Deposits 98,313 94,284 99,433 5.5% 1.1% REPOs & Money Market 19,461 23,177 18,230 -21.3% -6.3% Funds Borrowed (1) 14,930 14,282 16,512 15.6% 10.6% Other 11,043 11,804 11,673 -1.1% 5.7% Equity 17,921 19,038 19,761 3.8% 10.3%

  12. Slide 12: Deposits

    Deposits Deposits (TL mn.) 2011 2012 Q1 2012 Q2 ∆ QoQ ∆ YtD Total Deposits 98,313 94,284 99,433 5.5% 1.1% TL Deposits 60,332 54,067 58,019 7.3% -3.8% TL Saving Deposits 40,664 38,358 39,136 2.0% -3.8% TL Commercial Deposits 11,678 9,318 11,424 22.6% -2.2% Other TL Deposits 7,991 6,391 7,459 16.7% -6

  13. Slide 13: Sufficient Capitalization

    Sufficient Capitalization Capital Adequacy Ratio • Capital adequacy ratio is well above the regulatory limit, even after the impact of 20.3% cash dividend 16.1% payout. 14.6% 14.3% 14.2% 14.1% 13.9% 13.1% 13.0% 12.6% 12.4% • Sufficient capital for growth in 2012 11 Q2 11 Q3 2011 12 Q1 12 Q2 CAR Tier

  14. Slide 14: Income Statement Highlights

    Income Statement Highlights (TL mn.) 2012 Q1 2012 Q2 ∆ QoQ 2011 H1 2012 H1 ∆ YoY Interest Income 3,291 3,378 2.7% 5,031 6,669 32.6% • Significant growth in NII and net fees & Interest Expense 1,979 1,949 -1.5% 2,836 3,928 38.5% commissions income Net Interest Income 1,312 1,429 8.9% 2,195 2,741 24.9

  15. Slide 15: Commissions Income Performance

    Commissions Income Performance Fees and Commissions Received (Gross) (TL thousand) 2011 H1 2012 H1 ∆ YoY Non-Cash Loans 59,758 86,718 45.1% • Solid growth in all items except for mutual fund management fees Credit Appraisal 59,196 122,121 106.3% Mutual Fund Man. & Other Inv. Acc. 139,941 68,359 -51.

  16. Slide 16: Margins

    Margins NIM (Cumulative) (1) • Further recovery in NIM in Q2 4.3% 4.4% 3.8% 3.8% 3.9% 3.9% 4.0% • Higher NII as a result of lower funding 3.5% 3.4% 3.5% costs 11 Q2 11 Q3 2011 12 Q1 12 Q2 NIM exc. reserves at Central Bank NIM Adjusted NIM (Cumulative)(1) (2) 5.3% 4.8% 4.8% 4.4% 3.8% 3.3% 3.5% 3.5% 3

  17. Slide 17: Profitability and Efficiency Ratios

    Profitability and Efficiency Ratios(1) ROAE ROAA 22.1% 20.4% 20.5% 15.2% 15.0% 15.4% 1.8% 1.8% 1.8% 1.5% 1.6% 1.5% 2011 Q4 2012 Q1 2012 Q2 2011 Q4 2012 Q1 2012 Q2 (2) (2) ROAA ROAA ROAE ROAE Cost / Income Cost vs. Assets 42.6% 42.4% 41.2% 2.6% 2.4% 2.5% 2.5% 2.3% 2.3% 2011 Q4 2012 Q1 2012 Q2 2011 Q4

  18. Slide 18: Appendix – Quarterly Income Statement Highlights

    Appendix – Quarterly Income Statement Highlights (TL mn.) 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 ∆ QoQ Interest Income 2,595 2,764 3,103 3,291 3,378 2.7% Interest Expense 1,519 1,712 1,788 1,979 1,949 -1.5% Net Interest Income 1,076 1,052 1,315 1,312 1,429 8.9% Net Fees & Commissions 364 358 403 37

  19. Slide 19: iISBANK ©

    iISBANK ©

  20. 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 of such information. This document has been issued for information purposes only. The

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