Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR
Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — Investor Presentation (June 2013)
42 slides from Turkiye Is Bankasi Anonim Sirketi's investor presentation, Jun 30, 2013
Slide 1: Isbank Investor Presentation 2013-H1
‘ ISBANK INVESTOR PRESENTATION 2013-H1
Slide 2: Disclaimer
The information in this document has been obtained by Turkiye Is Bankasi A.S. (“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 financial
Slide 3: Agenda
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 Major Equity Participations 36 2
Slide 4: Isbank at a Glance
Financial Highlights 9 Retail Banking 31 Major Equity Participations 36 3
Slide 5: Shareholder structure and branch network
FreeFloat Free Float 32,17% Stocks are quoted at Borsa Istanbul and also traded at LSE Ataturk Shares in the form of GDR Isbank Pension Fund 28,09% Largest stake owned by employees via pension fund (*) 39,74% 1,263 domestic branches country-wide (Largest among private banks), and 20 foreign br
Slide 6: Main Business Lines
Main Business Lines... Banking Services Other Financial Services i — ee : — i EEE —- ee ae
Slide 7: Market share and rankings
Market Share (%) 2013 H1 Rank(2) Total Assets (1) 13.4 1st Loans(1) Total Loans 14.4 1st TRY Loans 13.1 1st FX Loans 17.5 1st Consumer Loans(3) 11.8 3rd Deposits(1) TRY Deposits 12.9 1st FX Deposits 15.3 1st Demand Deposits 15.8 1st Total Deposits 13.7 1st Shareholder’s Equity(1) 11.4 1st Retail Pro
Slide 8: Financial Highlights
Isbank at a Glance 5 Retail Banking 31 Major Equity Participations 36 7
Slide 9: Total Assets, Loans, Deposits, Equity
Total Assets (TRY mn.) Loans (TRY mn.) 125,282 193,988 175,444 106,716 161,669 91,621 131,796 113,223 64,232 48,335 2009 2010 2011 2012 2013 H1 2009 2010 2011 2012 2012 2013 H1 Deposits (TRY mn.) Shareholders’ Equity (TRY mn.) 113,954 22,719 105,383 22,555 98,313 88,260 17,921 17,014 72,177 13,494 2
Slide 10: Asset Composition
(TRY mn.) 2012 2013 H1 Change Asset Composition Cash & Banks 17,391 19,210 10.5% Cash & Banks 9.9% 9.9% Securities (Net) 38,055 36,279 -4.7% 21.7% 18.7% Securities Loans 106,716 125,282 17.4% Participations (Net) 7,700 7,515 -2.4% Loans Fixed Assets (Net) 1,999 2,086 4.4% 60.8% 64.6% Participations
Slide 11: Loan Portfolio
Loan Portfolio QoQ (TRY mn.) Loans / Deposits 125,282 101.3% 97.1% 109.9% 105.6% 110,494 82,521 73,614 36,880 42,762 2012 2013 H1 TRY FX * Total 2013 Q1 2013 Q2 Loans/Deposits Loans/Deposits (Adj.)* * 9% increase in FX loans when adjusted for the change in exchange rate. * TL securities issued added
Slide 12: Total Loans and Consumer Loans
… 55% comprised of retail and Total Loans Consumer Loans (TRY mn.) SME loans. 22,378 25,333 21,0% 20,2% Retail Loans General Purpose 7,6% 7,3% 27.5% 50.2% 49.2% Consumer Loans Auto Loans 28,1% 27,5% Consumer * 5.9% 5.0% Housing Loans Credit Cards SME** Retail Overdraft 45,0% 42.6% 44.6% 43,3% Corpor
Slide 13: NPL Ratio and Management of NPLs
NPL Ratio Management of NPLs 78% coverage ratio, above sector average… 0.7% 0.7% 0.6% 0.4% 0.1% 2.1% 2.0% 409 1.9% 1.9% 394 1.8% 412 342 294 263 221 205 188 192 182 145 160 118 TRY mn. 12 Q2 12 Q3 12 Q4 13 Q1 13 H1 29 12 Q2 12 Q3 12 Q4 13 Q1 13 H1 Coverage Additio ns to NPLs Recoveries Net NPL Forma
Slide 14: NPL Ratio by Loan Categories
NPL Ratio by Loan Categories NPL Breakdown 3.9% 3.5% 1.6% 1.6% 1.9% 1.8% 96% 97% 99% 98% 96% Consumer* Credit Cards Total Loans 3% 4% 1% 2% 4% 2012 2013 H1 2009 2010 2011 2012 2013 H1 * Includes retail overdraft accounts. Restructured Other NPLs Performing Loan Groups 98.1% 1.9% I. Group Loans II. G
Slide 15: Breakdown of Securities Portfolio
Breakdown of Securities Portfolio Total Portfolio FX Floating TRY 2.9% Discount & 38.1 36.3 Fixed 31.7 TRY 30.4 28.7% Floating 55.1% FX Discount & Fixed 13.2% 6.4 5.9 3.6 3.0 2012 2013 H1 TRY Securities (TRY bn.) FX Securities (TRY bn.) FX Securities ** (USD bn.) Total Securities (TRY bn.) 70% of se
Slide 16: Liabilities Composition
(TRY mn.) 2012 2013 H1 Change Liabilities Composition Deposits 105,383 113,954 8.1% Equity REPOs & Money Market 13,519 20,028 48.1% 12.9% 11.6% Funds Borrowed 10,748 12,628 17.5% 9.5% 8.7% Other 3.6% 4.1% Securities Issued 6,364 8,017 26.0% 6.5% 6.1% Securities Other* 16,711 16,806 0.6% 7.7% 10.3% I
Slide 17: Deposit Base
... a clear indicator of customer trust. Deposit Base 114.0 105.4 98.3 70.5 65.0 60.3 40.4 43.4 38.0 20.2 22.6 22.6 2011 2012 2013 H1 TRY Deposits (TRY bn.) FX Deposits (TRY bn.) FX Deposits * (USD bn.) Total Depo sits (TRY bn.) * USD equivalent 16
Slide 18: Deposits and Market Shares
Deposits QoQ (TRY mn.) Market Shares 15.4% 15.3% 113,954 105,889 13.7% 13.7% 70,539 - 62,342 12.9% 12.9% 43,548 43,415 2012 2013 H1 TRY FX * Total 2013 Q1 2013 Q2 TRY Deposits FX Deposits Total Deposits * -6% change in FX deposits when adjusted for the change in exchange rate. Deposits YtD (TRY mn.)
Slide 19: Demand Deposits and cost of funding
…make significant contribution to lower cost of Demand Deposits (TRY mn.) Share of Demand Deposits in Total Deposits funding. 23,366 20,947 18,627 55% 59% 55% 79.5% 14,469 11,259 64% 20.5% 60% 45% 41% 45% 40% 36% Demand Deposits Time Deposits 2009 2010 2011 2012 2013 H1 TRY FX 18
Slide 20: Client Assets
... has reached a remarkable Client Assets (TRY mn.) No. Of Investment Accounts (000) total of TRY 165 billion. 164,887 10.953 164,173 10.623 141,481 10.062 133,835 8.838 On-Balance Sheet 107,320 7.498 69% 64% 69% 66% 67% 9% 10% 14% Off-Balance Sheet 13% 11% 6% 5% 5% 4% 18% 4% 18% 12% 2009 2010 2011
Slide 21: Capital Adequacy
Capital Adequacy Regulatory Capital (TRY mn.) CAR supports balance sheet growth going forward… Basel II 25,794 25,461 24,740 21,531 21,077 20,546 20,196 19,766 16.3% 16.2% 18,851 18,160 14.8% 14.2% 14.2% 13.0% 12.9% 12.6% 12.5% 12.1% 12 Q2 12 Q3 12 Q4 13 Q1 13 Q2 12 Q2 12 Q3 12 Q4 13 Q1 13 Q2 CAR Ti
Slide 22: Operating Income Composition QoQ
(TRY mn.) 2013 Q1 2013 Q2 Change QoQ Net Interest Income 1,722 1,727 0.3% Operating Income Composition Net Fees & Commissions 463 516 11.4% Net Trading Gains/Losses 153 142 -7.5% NII Dividends Received 160 290 81.7% 60.2% 59.6% Net Commissions Released Provisions 291(1) 187 -35.6% Gains on Asset Sal
Slide 23: Operating Income Composition H1
(TRY mn.) 2012 H1 2013 H1 Change YoY Operating Income Composition Net Interest Income 2,741 3,449 25.9% Net Fees & Commissions 799 979 22.4% NII Net Trading Gains/Losses 275 295 7.0% Dividends Received 418 450 7.8% 57.4% 59.9% Net Commissions Released Provisions 456 478(1) 4.9% Gains on Asset Sales
Slide 24: Fees and Commissions
... supported by superior Fees and Commissions Received (Gross) Gross Commission Income (TRY mn.) retail and corporate (TRY thousand) 2012 H1 2013 H1 Change franchise. Non-Cash Loans 86,718 100,878 16.3% Credit Appraisal 122,121 118,082 -3.3% Mutual Fund Man. & Other Inv. 1,088 68,359 77,173 12.9% A
Slide 25: Net Interest Margin
NIM Adj. NIM (*) ( **) 5.54% 5.62% 5.13% 5.01% 5.00% 4.69% 4.57% 4.24% 2012 2013 H1 2012 2013 H1 NIM NIM exc. reserves at Central B ank NIM NIM exc. reserves at Central B ank * Based on MIS data ** Adjusted for Securities Trading Gains / Losses and Foreign Exchange Gains / Losses 24
Slide 26: Cost / Income and Cost Structure
Cost / Income* Cost vs. Income (TRY mn.) 45.7% 46.1% 40.6% 42.6% 34.0% 5,761 4,775 1,957 2,446 2009 2010 2011 2012 ** 2013 H1** 2012 H1 2013 H1*** ** When adjusted for the asset sale impact in 2013 Q1 and additional provision Cost Income for pension fund of TL 440mn, the ratios are 41.2% and 41.5% f
Slide 27: ROAE and ROAA
ROAE* ROAA* 28.6% 28.4% 2.4% 2.3% 2.2% 22.7% 2.0% 2.0% 2.0% 21.7% 21.0% 1.8% 1.8% 1.8% 19.9% 20.2% 1.5% 16.5% 16.2% 15.2% 2009 2010 2011 2012 2013 H1 2009 2010 2011 2012 2013 H1 ROAE ROAE** ROAA ROAA** * All calculations are based on trailing four quarters’ data. ** Banking business (Excluding equit
Slide 28: Market Cap and Earnings & Payout Ratio
Market Cap. Comparison (TRY mn.) Earnings & Payout Ratio 36.1% 32.7% 32.1% 34.6% 27.883 23.2% 32.4%** 20.3% 20,3% 20,1% 24.836 25.717 19.450 3.310 2.982 14.963 2.667 2.372 1.702 1.509 1.109 2009 2010 2011 2012 2013 H1 956 Isbank is included in the following indices: 635 • BIST-100 2004 2005 2006 200
Slide 29: Ratings
Rating* Rating* Foreign Currency Issuer Credit BB+ / Stable / B Foreign Currency Issuer Default Rating BBB / Stable / F3 Local Currency Issuer Credit BB+ / Stable / B Local Currency Issuer Default Rating BBB / Stable / F3 Turkish National Scale trAA+ / trA-1 National Long Term Rating AAA (tur) / Sta
Slide 30: Retail Banking
Isbank at a Glance 5 Financial Highlights 9 Major Equity Participations 36 29
Slide 31: Credit cards and payment products
37 different products for different customer segments 209,081 Sales Points and 264,122 chains are included in loyalty programme. The number of cards reached 9.1 million, 6.1million of which are issued to Bank’s own customers. The first bank in Turkey which has made an agreement with the world’s four
Slide 32: Isbank is the market leader in mutual fund business
Isbank is the market leader in mutual fund business. 31
Slide 33: Mutual Funds
... 30 types of mutual funds Mutual Funds (TRY mn.) Number of Investors designed for different risk appetites 7.090 826.292 836.735 6.430 6.508 7.279 801.402 6.776 693.003 646.754 2009 2010 2011 2012 2013 H1 2009 2010 2011 2012 2013 H1 Income From Funds With 8 equity (A type), 22 fixed income (B typ
Slide 34: Payroll accounts and automated bill payments
... supported by payroll accounts and bill Payroll Accounts (TRY mn.) Automated Bill Payments payment agreements 13.960 12.752 12.520 11.381 5.761.409 5.798.926 2012 H1 2013 H1 2012 H1 2013 H1 Amount (TRY million) Number of Active Payments Number of payroll accounts is 1,226,676 as of 30.06.2013. Au
Slide 35: Major Equity Participations
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 34
Slide 36: One of the biggest conglomerates in Turkey
...as one of the biggest conglomerates in Turkey. 35
Slide 37: Sectoral Breakdown of Participations
Sectoral Breakdown Financial Non-Financial 48,2% 51,8% Other Telecom Banks 5,9% 10,4% 19,2% Glass Insurance Non-financial Financial 35,4% 18,4% Financial Ins. TRY 4.8 billion 10,6% Non - Listed 28,4% Listed 71,6% As of 30 June 2013, Isbank has 20 participations. TRY 4.8 Since the end of 2002, a tota
Slide 38: Sisecam
Isbank (65%) General Information Market/Production Shares (%) * A leading flat glass, glassware, glass packaging, glass Turkey Europe2,3 World3 fibre, soda ash and chromium chemicals producer in the Flat Glass 69.0 13.5 3.8 domestic market. Backed by its vision, Şişecam expands its production Gl
Slide 39: Sisecam production facilities
The Group obtains efficiency and spreads its operational risk by positioning its production facilities in the fast growing countries. 38
Slide 40: Avea
İşbank* 10.0035% Turk Telekom 89.9965% Avea has been created through the merger of Aria and Aycell in February 2004. After the merger, due to the integration of 2 GSM networks, not only the coverage and efficiency have increased significantly, but also substantial operational synergies have been cre
Slide 41: Subsidiaries and affiliates by field of activity
Risk Assets Shareholders’ Market Field of Bank’s Direct Basis for Market Company Name Group (USD 000) Equity (USD 000) Share (%) Activity Share(%) Share Share (%) (3) (3) (3) Türkiye Sınai Kalkınma Bankası A.Ş. Investment Bank 40.52 50.00 5,865,004 974,871 19.9 Total Assets İşbank AG Banking 100.00
Slide 42: Investor Relations contacts
Süleyman H. Özcan Head of Investor Relations Division Phone : + 90 212 316 16 02 E-mail : suleyman.ozcan@isbank.com.tr Alper Turgal Unit Manager of Investor Relations Division Phone : + 90 212 316 16 10 E-mail : alper.turgal@isbank.com.tr
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