Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — Q1 2017 Earnings Presentation

26 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2017

  1. Slide 1: Q1 2017 Earnings Presentation

    Q1 2017 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: Q1 2017 Highlights

    Q1 2017 Earnings Presentation Q1 2017 Highlights Net Income Growth RoE YoY NIM CoR (a) C/I(b) Solid Financial Results 79.3% & 22.4% & +82 bps & 92 bps & 33.6% Reported Net Income (TRY mn) Earnings Walk Q1-16 / Q1-17 (TRY mn) 537 79.3% YoY 2.351 1,219 292 1.547 (1.021) 149 680 (471) 1.219 232 (327) 6

  3. Slide 3: Main Pillars of Net Income Growth

    Q1 2017 Earnings Presentation Q1 2017 Highlights Main Pillars of Net Income Growth 1 Strong Topline 2 Fees & Commissions Generation Capacity YoY NII Growth +50% Budget-17 84% YoY YoY NIM +82 bps NII +17% YoY Sector* vs vs NIM Flat & +21% YoY QoQ Core Spread Flat 30% QoQ 3 Sustained Asset Quality, Lo

  4. Slide 4: Macro & Banking Sector Snapshot

    Q1 2017 Earnings Presentation Macro & Banking Sector Snapshot Domestic Macro Environment Real GDP Growth (%) CAD / GDP (%) CAD/GDP Brent (USD / Mon Avg-RHS) 11.1 -2.50 10 8.5 6.1 -3.00 20 4.8 5.2 -3.50 30 5.3 -3.9 4.5 3.5 -4.00 40 2.9 -4.50 56 50 -5.00 60 -5.50 70 (1.3) -6.00 80 May-16 Oct-16 Dec-14

  5. Slide 5: Macro & Banking Sector Snapshot

    Q1 2017 Earnings Presentation Macro & Banking Sector Snapshot Domestic Macro Environment Turkish Banking Sector Unemployment & Confidence Indexes Mar-17 vs Mar-16 in Terms of Selected Items (%) Consumer CI Unemployment (%-RHS) Real Sector CI Total Assets 19.0 120 0 Net Loans 21.0 111 110 102 2 TRY L

  6. Slide 6: Solid fundamentals reflected into the bottom line

    Q1 2017 Earnings Presentation Solid fundamentals reflected into the bottom line Net Income (TRY million) 79.3% 236.0% YoY Change (%) 1,219 49.5% Net Interest Income 886 84.0% Net Fees & Commissions 46.7% Total Operating Income 680 630 79.3% Net Income 363 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 RoE (%) RoA (%

  7. Slide 7: Taking advantage of the potential for further growth

    Q1 2017 Earnings Presentation Taking advantage of the potential for further growth Asset Growth IEA Securities YoY 26.9% QoQ 7.1% 82.1% Portion 14.3% Total Asset Growth (TRY billion) Composition of IEAs(a) Asset Mix (%) 26.9% Loans Cash & CBRT 7.1% 82.5% 82.5% 82.1% Securities Other Assets 247.8 231

  8. Slide 8: CPI Linkers exceeded TRY 10 bn, hedging against volatilities

    Q1 2017 Earnings Presentation CPI Linkers exceeded TRY 10 bn, hedging against volatilities Total Securities Portfolio (TRY billion) Interest Structure (%) Total Securities / Total Assets (%) 14.6 14.4 14.3 CPI-Linked (TRY 10.2 bn) 28.9% 33.2 35.5 28.5 6.9 19% 6.6 20% Fixed Rate FX 5.8 20% 57.5% TRY

  9. Slide 9: Further penetration towards SMEs and corporates, yielding into market share

    Q1 2017 Earnings Presentation Further penetration towards SMEs and corporates, yielding into market share (TRY billion)(a) 26.7% Total Loans 6.2% HALKBANK B. Sector(b) YoY YoY 164.7 26.7% 21.1% Commercial Loans 155.1 0.3 QoQ QoQ 12.0 YoY 8.2% 6.2% 5.5% 141.5 0.3 QoQ -9.8% 136.2 13.2 130.0 0.4 0.4 Co

  10. Slide 10: Risk limiting & return ensuring, balanced loan book

    Q1 2017 Earnings Presentation Risk limiting & return ensuring, balanced loan book Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 5.7% Commercial 2.5% Commercial 7% SME 37% Corporate 26.4% Corporate 35% TRY FX 65.5% 34.5% Cooperative 13%(b) Retail 21% Sectoral Breakdown of Loans (

  11. Slide 11: Gaining market share across all subsegments

    Q1 2017 Earnings Presentation Gaining market share across all subsegments (TRY billion)(a) 21.7% HALKBANK YoY 5.5% 21.7% QoQ 32.5 34.3 5.5% 30.1 29.1 Consumer Loans 28.2 YoY 17.1% 13.5 14.3 QoQ 5.7% B. Sector(b) 12.8 Share in total 41.7% 12.2 12.7 YoY 12.3% Housing Loans QoQ 15.3 16.2 YoY 27.9% 3.4%

  12. Slide 12: Share of Group II loans in total further down to 2.8%, NPL ratio stable

    Q1 2017 Earnings Presentation Share of Group II loans in total further down to 2.8%, NPL ratio stable at 3.2% NPL Portfolio (TRY million) NPL Coverage (%) 5,140 5,571 77.1 76.4 75.8 76.0 75.1 4,625 4,330 4,137 Mar-16 Jun-16 Sep-16 2016 Mar-17 Mar-16 Jun-16 Sep-16 2016 Mar-17 Loans under Close Watch

  13. Slide 13: NPL ratio by segments

    Q1 2017 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) (a) Consumer Loans (%) (a) 6.2 6.0 5.9 5.9 5.8 3.7 3.7 3.7 3.7 3.8 2.5 2.5 2.5 2.5 2.4 2.2 2.2 1.9 1.9 1.9 Mar-16 Jun-16 Sep-16 2016 Mar-17 Mar-16 Jun-16 Sep-16 2016 Mar-17 SME Loans (%)(a) Cre

  14. Slide 14: CoR resistant at 92 bps

    Q1 2017 Earnings Presentation CoR resistant at 92 bps Cost of Risk (bps)(a) Cost of Risk by Segments (bps)(a) YtD Quarterly 155 142 92 114 80 92 92 63 81 54 60 56 58 59 54 Mar-16 Jun-16 Sep-16 2016 Mar-17 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (bps) (Specific Provi

  15. Slide 15: Low level of L/D, opportunistic usage of funding facilities

    Q1 2017 Earnings Presentation Low level of L/D, opportunistic usage of funding facilities IBL 86.2%(a) Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 85.2% 86.3% 86.2% Funds Borrowed Securities Issued Interbank Money Market Shareholders

  16. Slide 16: Strong franchise in public sector deposits; share in TRY deposits up to 16%

    Q1 2017 Earnings Presentation Strong franchise in public sector deposits; share in TRY HALKBANK B. Sector(b) deposits up to 16% YoY 60.4% 24.3% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 11.8% 11.1% in USD YoY 23.7% -4.2% YoY 25.5% 19.1% YoY 7.1% 15.3% terms QoQ 8.1% 7.4% QoQ 5.0% 4.4% QoQ 0.2%

  17. Slide 17: Growing deposit base with a strong emphasis on the pricing

    Q1 2017 Earnings Presentation Growing deposit base with a strong emphasis on the pricing Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 16.7% 83.7% 83.3% 83.5% 16.3% 16.5% FX 44% 29.7% 28.3%

  18. Slide 18: Cost - Yield - Spread

    Q1 2017 Earnings Presentation Cost - Yield - Spread(a) Cost of Deposits (%) Spreads (%) On Loans On Securities 6.4 6.2 6.6 5.9 5.8 5.4 4.8 4.8 4.3 4.6 3.8 3.1 3.4 1.2 2.5 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Yield on Loans (%)(b) Yield on Securities (%) 10.5 10.5 10.6 12.1 10.

  19. Slide 19: Boosted NII & NIM

    Q1 2017 Earnings Presentation Boosted NII & NIM Net Interest Income (TRY million) Breakdown of Interest Income (%) Interest Income Interest Expenses 49.5% 20% 15.4% on Securities 1,978 2,282 1% on Others 1,526 1,572 1,881 3,945 4,021 4,341 4,647 5,171 79% (2,419) (2,449) (2,460) (2,669) (2,890) on L

  20. Slide 20: NFCI started the year at historic high

    Q1 2017 Earnings Presentation NFCI started the year at historic high Net Fees & Commissions Income (TRY million) Net Fees & Commissions / Operating Revenues (%) 84.0% 29.6% 17.7 537 14.8 14.8 15.2 14.1 344 415 324 292 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Mar-16 Jun-16 Sep-16 2016 Mar-17 Breakdown of Fees &

  21. Slide 21: Investments pay off, brilliant opex efficiency

    Q1 2017 Earnings Presentation Investments pay off, brilliant opex efficiency Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 6.2% -4.0% 1,063 2.0 1.8 962 1,021 1.7 931 909 9 6 (a) 38 27 15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Mar-16 2016 Mar-17 Cost/Income (%) Breakdown of Operatin

  22. Slide 22: Solvency Ratios

    Q1 2017 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Basel III (TRY mn) Mar-17 13.7 13.5 13.5 13.1 13.6 Credit Risk Base Amount (CRBA) 164,857 13.0 12.8 12.6 12.0 12.6 Market Risk Base Amount (MRBA) 2,852 Operational Risk Base Amount (ORBA) 12,798 Total Risk Weig

  23. Slide 23: Branch Network – Human Resources

    Q1 2017 Earnings Presentation Branch Network – Human Resources > 2 new branches opened in Q1-17. > Total branch number reached 961. Loans and Deposits per Branches (TRY million) Breakdown of Banking Transactions (%) Automatic Loans/Branches Deposits/Branches Internet Payment 4% Banking 11% 175.3 165

  24. Slide 24: Balance Sheet

    Q1 2017 Earnings Presentation Balance Sheet QoQ YoY In TRY million Q1-16 2016 Q1-17 Change% Change% Cash and Balances Held with the Central Bank(a) 24,642 29,999 33,163 10.5 34.6 Banks & Money Market(b) 1,987 1,661 1,816 9.3 (8.6) Securities(b) 28,467 33,216 35,476 6.8 24.6 Net Loans(b) 132,720 158,

  25. Slide 25: Income Statement

    Q1 2017 Earnings Presentation Income Statement QoQ YoY In TRY million Q1-16 Q4-16 Q1-17 Change% Change% Interest Income 3,945 4,647 5,171 11.3 31.1 On Loans 3,218 3,937 4,064 3.2 26.3 On Securities 689 662 1,027 55.0 49.1 Interest Expense 2,419 2,669 2,890 8.3 19.5 On Deposits 2,004 2,154 2,137 (0.8

  26. Slide 26: 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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