Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — Q1 2007 Earnings Presentation
20 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, May 15, 2007
Slide 1: Q1 2007 Earnings Presentation
Q1 2007 Earnings Presentation May 15, 2007
Slide 2: Q1 Performance – Key Highlights
Q1Performance Q1 Performance––Key KeyHighlights Highlights • Increase in loan portfolio (particularly in retail & SME segmentation) continues with a positive effect on net interest income and profitability • Continuing to increase market shares - as of 31 December 2006, 3rd in TRY deposits from 4th
Slide 3: Halkbank Overview: Summary Financials
HalkbankOverview Halkbank Overview Summary Financials (BRSA Bank Only) Q106-Q107 (TRY million) 2006 Q1 06 Q1 07 Change Net Interest Income 1,370 256 396 55% Net Fee Income 232 52 76 46% Total Income Before NPL Collection (Principal Only) 1,762 348 534 54% Total Income(a) 2,028 483 564 17% Operating
Slide 4: Key Ratios
KeyRatios Key Ratios 2005 2006 Q1 06 Q1 07 Net Interest Margin(a) 3.8% 4.6% 3.8%(b) 5.0%(b) Net Fee Income/Total Income 9.9% 11.4% 10.8% 13.4% Cost/Income Ratio 42.7% 35.7% 34.2% 35.7% Loan Loss Provisions/Av. Net Loans 1.8% 1.4% 1.4% (b) 1.0%(b) (b) (b) RoAA 2.1% 2.8% 2.7% 2.8% (b) RoAE 17.6% 24.4%
Slide 5: Strong Profitability Track Record with Further Upside
Strong Attractive Strong Profitability Profitability Profitability TrackRecord Track Recordwith withFurther FurtherUpside… Upside… Net Income (TRY million)(a) Return on Average Equity (After Tax) 56 % (c) 24% (c) 25% 22% 863 18% 554 28 %(b) 238 186 2005 2006 Q1 06 Q1 07 2005 2006 Q1 06 Q1 07 (a) 200
Slide 6: Loan Portfolio Growth
LoanPortfolio Loan PortfolioGrowth Growth Total Loan Growth (in TRY bn)(a) 76 % 12.7 84 % 11.4 7.2 6.2 2005 2006 Q1 06 Q1 07 6 (a) Excluding interest accruals.
Slide 7: Strong Growth in Loan Portfolio
StrongGrowth Strong GrowthininLoan LoanPortfolio Portfolio Loan Portfolio By Types (in TRY bn)(a) Retail (b) Q1 06-Q1 07 12.7 Change (%) Commercial 11.4 Funds (c) 20% 114% 19% Cooperatives 7.2 17% 6.2 52% 52% 106% 14% 45% 45% 8% 8% 4% 13% 16% 21% 25% 20% 25% 40% 2005 2006 Q1 06 Q1 07 (a) Excluding i
Slide 8: Retail Lending
RetailLending Retail Lending Retail Loans by Product (TRY million)(a) Q1 06-Q1 07 Change (%) Credit Card Loans Other Consumer Loans 2,559 Consumer Loans 9% 9% Real Estate Loans 2,137 3% (7)% 10% 5% 50% 181% 45% 1,194 18% 841 7% 25% 38% 9% 38% 120% 42% 40% 37% 24% 2005 2006 Q1 06 Q1 07 8 (a) Excludin
Slide 9: Retail Loans
RetailLoans Retail Loans 2006-Q1 07 2005 Q1 06 2006 Q1 07 change (%) (TRY million) Sector Total Retail Loan 45,509 51,377 67,356 69,834 3.7 Real Estate Loan 12,357 16,167 22,162 23,304 5.2 Other Consumer Loan 10,028 11,342 17,624 19,228 9.1 Credit Card Loan 17,034 17,585 21,205 21,367 0.8 Halkbank T
Slide 10: Deposit Growth
DepositGrowth Deposit Growth Development of Total Deposits (TRY bn)(a) Development of Loan to Deposit Ratio(a) 45% 29 % 22 % 28 42% 27 30% 31% 23 21 2005 2006 Q1 06 Q1 07 2005 2006 Q1 06 Q1 07 10 (a) Excluding interest accruals.
Slide 11: Deposits Growth
DepositsGrowth Deposits Growth TRY Deposits by Types (TRY bn)(a) Deposits by Currency (TRY bn)(a) Other Institution Deposits FX Deposits Interbank TRY Deposits Commercial 28.2 Public Sector Savings 26.9 23.4 20.9 29% 19.6 20.1 29% 25% 17.6 14% 21% 16.4 15% 4% 15% 3% 12% 17% 2% 17% 16% 15% 4% 4% 5% 7
Slide 12: Total Deposits
TotalDeposits Total Deposits 2006-Q1 07 2005 Q1 06 2006 Q1 07 change (%) (TRY million) Sector Total Deposits 251,870 264,175 308,396 318,964 3.4 TRY Deposits 159,329 170,158 189,094 196,361 3.8 FX Deposits 92,541 94,017 119,302 122,603 2.8 Halkbank Total Deposits 21,113 23,644 27,188 28,520 4.9 TRY
Slide 13: NPL Portfolio
NPLPortfolio NPL Portfolio NPL Portfolio (TRY million)(a) 1,202 16.0% 13.0% 8.5% 7.8% 1,090 1,085 1,090 2005 Q1 06 2006 Q1 07 (b) NPL Portfolio NPL Ratio NPL portfolio is fully provisioned(c), regardless of collateral (a) Loan interest accruals included. (b) NPLs as a % of total gross loans. (c) Pro
Slide 14: Securities Portfolio
SecuritiesPortfolio Securities Portfolio TRY million 2005 2006 Q1 06 Q1 07 Total Portfolio Marketable 3,513 6,469 4,398 6,879 Securities TL 2,960 5,182 3,799 4,981 FX 553 1,287 599 1,898 HTM Securities 13,464 10,678 13,051 10,664 62% 61% 75% (b) 79% TL 10,930 8,844 10,730 8,844 FX 2,533 1,834 2,321
Slide 15: Balance Sheet
BalanceSheet Balance Sheet In TRY million 2005 2006 Q1 O6 Q1 07 2006 - Q1 07 (%) Change Cash and Balances Held with Central Bank(a) 1,286 2,551 2,140 2,278 (11) Banks 752 1,079 1,307 978 (9) Trading Securities(b) 1,837 754 2,003 561 (26) Available for Sale Securities(b) 1,887 6,111 2,596 6,535 7 Net
Slide 16: Off-Balance Sheet Commitments
Off-BalanceSheet Off-Balance SheetCommitments Commitments Breakdown of Off-Blance Sheet Items Off-Balance Sheet Commitments TRY bn 2005 2006 Q1 06 Q1 07 25% 29% Guarantees and warranties 2.1 3.1 2.5 3.2 46% 50% - Letters of guarantee 1.8 2.7 2.2 2.8 31% 30% - Other letters of credit 0.3 0.4 0.3 0.4
Slide 17: Income Statements
IncomeStatements Income Statements Q1 06-Q1 07 In TRY million 2005 2006 Q1 06 Q1 07 (%) Change Interest Income 3,717 4,564 916 1,355 48 Interest Expense 2,793 3,195 660 959 45 Net Interest Income 925 1,370 256 396 55 Net Fees and Commissions 155 232 52 76 46 Net Trading Income 224 (214) (15) (4) (73
Slide 18: Capital Adequacy Ratio Evolution
CARCapital CAR CapitalAdequacy AdequacyRatio RatioEvolution Evolution Total Risk Weighted Assets (TRY bn) Capital Base (TRY m) 12,9 2005 2006 Q106 Q107 11,7 Core Capital 3,133 3,772 3,330 4,009 7,5 6,3 Tier 2 and Tier 2 97 76 106 82 Deductions Tier 3 0 0 0 0 2005 2006 Q106 Q107 Deductions -111 -101
Slide 19: Summary (1/2)
Summary(1/2) Summary (1/2) • Total loans increased to 12.7 billion TRY. Growth particularly in retail & SME segmentation is remarkable( y-o-y growth 76 %) • The Bank continues to exploit its competitive advantage of nationwide branch network in expanding loan and deposit portfolio • NPL ratio declin
Slide 20: Summary (2/2)
Summary(2/2) Summary (2/2) • Net fee and commissions y-o-y growth is 46 % while increase in operating expenses is 22 %. Net fees and commissions cover 38 % of operating expenses • Fee income/total income ratio increased by 260 bps on y-o-y terms • Y-o-y net income growth is 28 %, 238 million TRY • E
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