Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — Q1 2018 Earnings Presentation

28 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2018

  1. Slide 1: Q1 2018 Earnings Presentation

    Q1 2018 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: Strong Fundamentals

    Q1 2018 Earnings Presentation Strong Fundamentals LDR maintained at comfortably low level of 107.6% Volume Growth Loans 6.6% QoQ & Deposits 3.6% QoQ vs sector average of 124% Smooth transition to IFRS 9, further improving asset quality with Asset Quality NPL Ratio 2.8% & CoR (a) 54 bps a total NPL c

  4. Slide 4: Operational Environment

    Q1 2018 Earnings Presentation Operational Environment Macroeconomic Indicators Banking Sector Metrics 1Q17 1Q18 1Q17 1Q18 GDP Growth (%) 5.4 TBA Loan Growth (%) 5.5 4.7 CPI (%) 11.3 10.2 Deposit Growth (%) 4.4 3.9 CAD / GDP (%) -3.9 -5.8(a) LDR (%) 120.6 123.6 Unemployment (%) 11.7 10.8(b) NPL (%) 3

  5. Slide 5: Recovering net income, 10.5% QoQ growth despite TRY 70 million free provisions

    Q1 2018 Earnings Presentation Recovering net income, 10.5% QoQ growth despite TRY 70 million free provisions Total Operating Revenues (TRY million) Net Income (TRY million) 0.3% 10.5% 3,038 1,219 2,644 2,654 2,615 1,009 2,167 782 790 715 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Ro

  6. Slide 6: Robust asset growth, 29.2% YoY

    Q1 2018 Earnings Presentation Robust asset growth, 29.2% YoY TRY 10 bn. worth of securities have been borrowed in Q417 pursuant to a reciprocal agreement. Despite being booked under trading securities, this portfolio generates neither interest income nor gain/loss from MtM revaluation into the P&L.

  7. Slide 7: Solid contribution from CPI Linkers

    Q1 2018 Earnings Presentation Solid contribution from CPI Linkers Total Securities Portfolio (TRY billion)(a) Interest Structure (%)(a) Total Securities / Total Assets (%) 16.0 15.6 14.3 CPI-Linked (TRY 12.2bn) 48.9 49.9 31% 8.1 8.2 16% 35.5 17% Fixed Rate 6.9 19% 56.2% 28.6 81% 40.8 83% 41.7 84% FR

  8. Slide 8: SME-oriented loan growth strategy resulted in 9.7% total market share

    Q1 2018 Earnings Presentation SME-oriented loan growth strategy resulted in 9.7% CGF Utilization Total Limit Dec-17 Mar-18 (TRY Bn) 22.5 3.7 total market share Living Loan Amount 19.4 1.5 29.0% Total Loans (TRY billion)(a) 6.6% HALKBANK B. Sector(b) 212.5 YoY YoY 199.2 Commercial Loans 29.0% 20.0% 0

  9. Slide 9: SME share in total loans up to 39%

    Q1 2018 Earnings Presentation SME share in total loans up to 39% Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 5.3% Commercial 1.4% SME 39% Commercial 8% Corporate 24.3% Corporate 33% Cooperative 12%(b) TRY FX 69.0% 31.0% Retail 20% Sectoral Breakdown of Loans (%)(a) Retail Loan

  10. Slide 10: Steady market share in retail loans

    Q1 2018 Earnings Presentation Steady market share in retail loans (TRY billion)(a) 24.3% HALKBANK YoY 1.6% 24.3% QoQ 41.3 41.9 1.6% Consumer Loans 33.7 17.0 17.2 YoY 18.3% B. Sector(b) 14.6 QoQ 1.0% Share in total 41.1% YoY 14.8% Housing Loans QoQ 20.9 21.4 YoY 31.8% 2.1% 16.2 QoQ 2.1% Share in tota

  11. Slide 11: NPL ratio improved further, NPL coverage up

    Q1 2018 Earnings Presentation NPL ratio improved further, NPL coverage up Total NPL Coverage is ~109%.(a) NPL Portfolio (TRY million) NPL Coverage (%) 6,107 6,265 78.3 79.5 5,944 5,736 76.4 76.4 5,571 76.1 Mar-17 Jun-17 Sep-17 2017 Mar-18 Mar-17 Jun-17 Sep-17 2017 Mar-18 Loans under Close Watch (TRY

  12. Slide 12: NPL ratio by segments

    Q1 2018 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) Consumer Loans (%) 5.8 5.3 5.0 4.8 4.7 3.4 3.4 3.4 3.3 2.8 2.4 2.2 2.1 2.1 2.2 2.0 2.0 1.9 1.9 1.9 Mar-17 Jun-17 Sep-17 2017 Mar-18 Mar-17 Jun-17 Sep-17 2017 Mar-18 SME Loans (%) Credit Cards (

  13. Slide 13: Cost of Risk at 54 bps, faring below guidance

    Q1 2018 Earnings Presentation Cost of Risk at 54 bps, faring below guidance Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 110 98 92 70 68 54 92 59 54 62 50 54 18 41 12 Mar-17 Jun-17 Sep-17 2017 Mar-18 SME Retail Commercial Corporate Total Net Cost of Risk Total Cost of Risk (

  14. Slide 14: Strong liquidity mirrored in LDR

    Q1 2018 Earnings Presentation Strong liquidity mirrored in LDR IBL 84.8%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 86.2% 84.0% 84.8% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity 122.6 123.6 Other

  15. Slide 15: Taking advantage of the big franchise, deposit market share is at 10.6%

    Q1 2018 Earnings Presentation Taking advantage of the big franchise, deposit market share HALKBANK B. Sector(b) is at 10.6%. YoY 12,5% 15.9% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 5.4% 4.9% in USD YoY 3.5% 8.0% YoY 26.6% 16.4% YoY 37.7% 16.8% terms QoQ 1.3% 0.8% QoQ 3.6% 4.2% QoQ 2.4% 3.6%

  16. Slide 16: Demand deposits up 4.9% QoQ

    Q1 2018 Earnings Presentation Demand deposits up 4.9% QoQ Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 16.5% 85.8% 85.7% 83.5% 14.2% 14.3% FX 39% 14.0% 31.0% 4.9% 3.6% TRY 61% 25.7 153.8 2

  17. Slide 17: Cost – Yield – Spread

    Q1 2018 Earnings Presentation Cost – Yield – Spread (a) Cost of Deposits (%) Spreads (%) On Loans On Securities 7.7 7.2 6.6 6.9 6.2 4.8 5.4 4.2 3.9 4.0 3.7 4.2 2.9 1.0 0.3 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Yield on Loans (%)(b) Yield on Securities (%) 11.2 11.4 12.1 10.8 10

  18. Slide 18: Details on core revenues

    8 -6.36 3 Q1 2018 Earnings Presentation Details on core revenues Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly -13.7% 4.7 -3.4% 4.7 4.2 2,038 1,969 2,282 1,928 1,553 3.6 3.6 5,171 5.402 5.777 6,744 6,926 3.7 3.1 2.7 3.4 (2,890) (3.474) (4,223) 3.1 (4,707)

  19. Slide 19: Opex down 5.4% QoQ

    Q1 2018 Earnings Presentation Opex down 5.4% QoQ Operating Expenses (TRY million) Operating Expenses / Average Assets (%) -5.4% 1,267 1,198 1,113 1,152 1.7 1.7 1,021 51 50 (a) 1.6 50 57 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Mar-17 2017 Mar-18 Cost/Income (%) Breakdown of Operating Expenses (%) Communication

  20. Slide 20: Solvency Ratios

    Q1 2018 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Basel III 13.6 14.0 13.8 14.2 13.4 (TRY mn) Mar-18 Credit Risk Base Amount (CRBA) 198,807 12.6 13.0 12.7 12.6 Market Risk Base Amount (MRBA) 3,500 12.0 Operational Risk Base Amount (ORBA) 16,168 Total Risk Weig

  21. Slide 21: Branch Network – Human Resources

    Q1 2018 Earnings Presentation Branch Network – Human Resources > 3 new branches opened in the 1st Quarter. > Total branch number reached 966 Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branch Deposits/Branch Internet Automatic Banking 16% Payment 5% 223.0

  22. Slide 22: Balance Sheet

    Q1 2018 Earnings Presentation Balance Sheet QoQ YoY In TRY million Q1-17 2017 Q1-18 Change% Change% Cash and Balances Held with the Central Bank(a) 33,162 36,373 35,384 (2.7) 6.7 Banks & Money Market(b) 1,817 7,353 9,133 24.2 402.7 Securities(b) 35,476 48,903 49.910 2.1 40.7 Net Loans(b) 168,447 203

  23. Slide 23: Income Statement

    Q1 2018 Earnings Presentation Income Statement QoQ YoY Change Change In TRY million Q1-17 Q4-17 Q1-18 % % Interest Income 5,171 6,744 6,926 2.7 33.9 On Loans 4,064 5,537 5,730 3.5 41.0 On Securities 1,027 1,054 1,056 0.2 2.8 Interest Expense 2,890 4,707 4,957 5.3 71.5 On Deposits 2,137 3,499 3,790 8

  24. Slide 24: Notes

    Q1 2018 Earnings Presentation Notes Financial Institutions and Investor Relations 22 www.halkbank.com.tr

  25. Slide 25: Notes

    Q1 2018 Earnings Presentation Notes Financial Institutions and Investor Relations 23 www.halkbank.com.tr

  26. Slide 26: Notes

    Q1 2018 Earnings Presentation Notes Financial Institutions and Investor Relations 24 www.halkbank.com.tr

  27. Slide 27: Slide 27

  28. Slide 28: 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

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