Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR

Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — Q1 2016 Earnings Presentation

22 slides from Turkiye Is Bankasi Anonim Sirketi's earnings presentation, May 2016

  1. Slide 1: Isbank Earnings Presentation 2016 Q1

    ISBANK EARNINGS PRESENTATION 2016 Q1

  2. Slide 2: 2016 Q1 Recent Developments in the Economy

    2016 Q1 Recent Developments in the Economy Global Outlook Main Indicators of Turkey Contributions to GDP (pp) Current Account (12-m, bn USD) • Moderate expansion in the US economy 16 Consumption FDI & Long Term 100 US • Solid labor market data Portfolio & Short Term Binler Net Exports • Still accomm

  3. Slide 3: Period's Highlights

    Period’s Highlights • Increased focus on selective lending, 35 bps QoQ rise in the TL loan yield • Securities portfolio made positive contribution to asset growth, whereas the impact of TL appreciation on growth was negative. • Decline in loan to deposit ratio in the quarter • QoQ decline in NPL flo

  4. Slide 4: Asset Structure

    Asset Structure Assets (TL mn.) 2015 Q1 2015 2016 Q1 ∆ YtD ∆ YoY Cash & Banks 28.849 33.170 32.163 -3,0% 11,5% Securities (Net) 43.341 44.781 46.759 4,4% 7,9% Loans 164.759 177.037 175.312 -1,0% 6,4% Participations (Net) 9.287 9.394 9.999 6,4% 7,7% Fixed Assets (Net) (*) 2.284 4.747 4.726 -0,5% NM O

  5. Slide 5: Loan Portfolio

    Loan Portfolio Loans (TL bn.) 6,4% 6,5% -1,0% 6,2% 180,2 177,0 175,3 -1,5% 164,8 174,4 -1,5% -0,1% 104,6 112,2 113,1 113,1 111,5 3,4% 60,1 62,3 67,0 63,9 63,9 23,4 23,5 22,5 22,3 23,1 TL Loans FX Loans FX Loans (USD bn.) (1) Total Loans 2015 Q1 2015 Q2 2015 Q3 2015 2016 Q1 Loans/Deposits • Share of

  6. Slide 6: Loan Portfolio

    Loan Portfolio Loans (TL mn.) 2015 Q1 2015 2016 Q1 ∆ YtD ∆ YoY Total Loans 164.759 177.037 175.312 -1,0% 6,4% TL Loans 104.618 113.137 111.450 -1,5% 6,5% Retail Loans 44.440 46.797 46.063 -1,6% 3,7% Housing Loans 14.322 15.726 15.553 -1,1% 8,6% Auto Loans 898 811 741 -8,6% -17,5% GPLs(1) 20.037 19.8

  7. Slide 7: Loan Composition

    Loan Composition Currency Mix Loan Composition - Total Loans 21,4% 20,6% 20,4% Consumer(1) 36,5% 36,1% 36,4% 5,6% 5,9% 5,9% (2) 24,0% 23,8% 23,7% Credit Cards FX TL SME (3) 63,5% 63,9% 63,6% 49,0% 49,7% 50,0% Commercial & Corporate 2015 Q1 2015 2016 Q1 2015 Q1 2015 2016 Q1 Loan Composition - TL Loan

  8. Slide 8: Asset Quality

    Asset Quality NPL Ratio • Gross CoR(1) is 102 bps as of 2016 Q1. • Coverage ratio is 76,5%. 2,2% • 19,8% collection rate(2) in 2016 Q1 2,0% 1,6% 1,7% 1,5% 15 Q1 15 Q2 15 Q3 15 Q4 16 Q1 NPL Trends(3) NPL Sales (TL thousand) (TL mn.) 1,06% 0,71% 0,69% 0,68% 0,74% Period Amount Revenue 16 Q1 - - 15 Q4

  9. Slide 9: Securities Portfolio

    Securities Portfolio Securities Composition of Securities (2016 Q1) TL Securities FX Securities (TL mn.) 2015 Q1 2015 2016 Q1 ∆ YtD ∆ YoY 7,8% Total Securities 43.341 44.781 46.759 4,4% 7,9% 60,0% Floating TL Securities 35.500 34.869 36.718 5,3% 3,4% 92,2% Fixed FX Securities 7.841 9.912 10.041 1,3%

  10. Slide 10: Liabilities Structure

    Liabilities Structure Liabilities (TL mn.) 2015 Q1 2015 2016 Q1 ∆ YtD ∆ YoY Deposits 144.363 153.802 157.795 2,6% 9,3% REPOs & Money Market 15.414 20.089 17.435 -13,2% 13,1% Funds Borrowed 25.437 28.408 28.146 -0,9% 10,6% Securities Issued 18.114 19.761 17.895 -9,4% -1,2% Other (*) 21.092 21.621 21.

  11. Slide 11: Deposits

    Deposits Deposits (TL mn.) 2015 Q1 2015 2016 Q1 ∆ YtD ∆ YoY Total Deposits 144.363 153.802 157.795 2,6% 9,3% TL Deposits 74.750 73.230 78.012 6,5% 4,4% TL Saving Deposits 51.654 52.569 53.464 1,7% 3,5% TL Commercial Deposits 15.578 15.834 18.219 15,1% 17,0% Other TL Deposits 7.519 4.827 6.329 31,1%

  12. Slide 12: Sufficient Capitalization

    Sufficient Capitalization Capital Adequacy Ratio -19 bps Impacts on CAR (bps) 2016 Q1 Regulation Impact -58 Changes on the Treatment of Tier 2 Borrowing -75 15,65% 15,46% Instruments 14,9% 14,5% 14,2% 13,9% 13,4% 12,6% 12,2% 12,0% Free Provisions -34 Other Regulation Impacts +51 Dividend Payment -33

  13. Slide 13: Income Statement Highlights

    Income Statement Highlights (TL mn.) 2015 Q1 2015 Q4 2016 Q1 ∆ QoQ ∆ YoY Net Interest Income 1.950 2.463 2.483 0,8% 27,3% • NII incl. swap cost : (-) SWAP Cost (1) 103 320 295 -7,8% 186,4% 18.5% YoY growth Net Interest Income Incl. Swap Cost 1.847 2.143 2.188 2,1% 18,5% Net Fees & Commissions 551 66

  14. Slide 14: Commissions Income Performance

    Commissions Income Performance (TL thousand) 2015 Q1 2016 Q1 ∆ YoY Non-Cash Loans 81.420 100.941 24,0% Cash Loans (*) 74.317 76.986 3,6% Mutual Fund Man. & Other Inv. Acc. Fees 48.633 51.516 5,9% Credit Cards (Net) 204.064 256.202 25,5% Fund Transfer (Net) 58.905 70.232 19,2% Insurance 34.194 37.263

  15. Slide 15: Margin & Spreads

    Margin & Spreads (1) NIM(2) (Cumulative) TL Loan-Deposit Spread (Quarterly) NIM NIM - Swap Adjusted 13,26% 13,61% 12,42% 12,16% 12,58% Loan Yield 7,52% 7,49% 8,04% 8,38% 7,36% 4,06% Deposit Cost 3,63% 3,43% 3,64% 3,74% 3,80% 3,58% 3,37% 3,36% 3,39% 5,06% 5,09% 5,22% 5,24% TL Spread 4,64% 15 Q1 15 Q2

  16. Slide 16: Profitability and Efficiency Ratios

    Profitability and Efficiency Ratios (1) ROAA ROAE 13,02% 1,51% 10,40% 10,31% 1,17% 1,16% 2015 Q1 2015 2016 Q1 2015 Q1 2015 2016 Q1 Cost / Income Cost / Average Assets 50,3% 52,0% 52,6% 46,9% 47,0% 47,0% 2,50% 2,41% 2,39% 2,26% 2,12% 2,11% 2015 Q1 2015 2016 Q1 2015 Q1 2015 2016 Q1 Reported Adjusted(2

  17. Slide 17: Isbank

    iISBANK

  18. Slide 18: Appendix 1 – Quarterly Income Statement Highlights

    Appendix 1 – Quarterly Income Statement Highlights (TL mn.) 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 ∆ QoQ Interest Income 4.393 4.644 5.044 5.120 5.266 2,9% Interest Expense 2.443 2.498 2.617 2.657 2.783 4,8% Net Interest Income 1.950 2.146 2.426 2.463 2.483 0,8% Net Fees & Commissions 551 593 582 6

  19. Slide 19: Appendix 2 – Non-recurring and Other Items

    Appendix 2 – Non-recurring and Other Items (TL mn.) 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 Released Provisions Reversal of provisions for tax disputes 207 Free provision reversal 200 Non-HR Expenses Fee rebates 61 76 55 50 39 Loss on asset sale 154 Provision for administrative fine 83 Additional pr

  20. Slide 20: Appendix 3 – Market Shares

    Appendix 3 – Market Shares Largest Private Bank… Market Shares (%) (1) Rank (2) 2015 2016 Q1 2015 2016 Q1 Total Assets 12,3 12,1 1st 1st Total Loans 12,4 12,1 1st 1st TL Loans 11,9 11,5 1st 1st FX Loans 13,5 13,4 1st 1st Consumer Loans(3) 12,5 12,1 2nd 2nd Non-Retail Loans 12,3 12,0 1st 1st Total De

  21. Slide 21: 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

  22. Slide 22: Contact Information: Türkiye İş Bankası A.Ş. Head Office

    Contact Information: Türkiye İş Bankası A.Ş. Head Office Investor Relations Division Phone: + 90 212 316 16 02 Fax: + 90 212 316 08 39 E-mail: investorrelations@isbank.com.tr 22

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